1 MONGOLIA MARKS CENTENNIAL WITH A NEW COURSE FOR CHANGE WWW.EASTASIAFORUM.ORG PUBLISHED:2024/12/20      2 E-MART OPENS FIFTH STORE IN ULAANBAATAR, MONGOLIA, TARGETING K-FOOD CRAZE WWW.BIZ.CHOSUN.COM PUBLISHED:2024/12/20      3 JAPAN AND MONGOLIA FORGE HISTORIC DEFENSE PACT UNDER THIRD NEIGHBOR STRATEGY WWW.ARMYRECOGNITION.COM  PUBLISHED:2024/12/20      4 CENTRAL BANK LOWERS ECONOMIC GROWTH FORECAST TO 5.2% WWW.UBPOST.MN PUBLISHED:2024/12/20      5 L. OYUN-ERDENE: EVERY CITIZEN WILL RECEIVE 350,000 MNT IN DIVIDENDS WWW.GOGO.MN PUBLISHED:2024/12/20      6 THE BILL TO ELIMINATE THE QUOTA FOR FOREIGN WORKERS IN MONGOLIA HAS BEEN SUBMITTED WWW.GOGO.MN PUBLISHED:2024/12/20      7 THE SECOND NATIONAL ONCOLOGY CENTER TO BE CONSTRUCTED IN ULAANBAATAR WWW.MONTSAME.MN PUBLISHED:2024/12/20      8 GREEN BOND ISSUED FOR WASTE RECYCLING WWW.MONTSAME.MN PUBLISHED:2024/12/19      9 BAGANUUR 50 MW BATTERY STORAGE POWER STATION SUPPLIES ENERGY TO CENTRAL SYSTEM WWW.MONTSAME.MN PUBLISHED:2024/12/19      10 THE PENSION AMOUNT INCREASED BY SIX PERCENT WWW.GOGO.MN PUBLISHED:2024/12/19      КОКС ХИМИЙН ҮЙЛДВЭРИЙН БҮТЭЭН БАЙГУУЛАЛТЫГ ИРЭХ ОНЫ ХОЁРДУГААР УЛИРАЛД ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     "ЭРДЭНЭС ТАВАНТОЛГОЙ” ХК-ИЙН ХУВЬЦАА ЭЗЭМШИГЧ ИРГЭН БҮРД 135 МЯНГАН ТӨГРӨГ ӨНӨӨДӨР ОЛГОНО WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     ХУРИМТЛАЛЫН САНГИЙН ОРЛОГО 2040 ОНД 38 ИХ НАЯДАД ХҮРЭХ ТӨСӨӨЛӨЛ ГАРСАН WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/20     “ЭРДЭНЭС ОЮУ ТОЛГОЙ” ХХК-ИАС ХЭРЛЭН ТООНО ТӨСЛИЙГ ӨМНӨГОВЬ АЙМАГТ ТАНИЛЦУУЛЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     Л.ОЮУН-ЭРДЭНЭ: ХУРИМТЛАЛЫН САНГААС НЭГ ИРГЭНД 135 МЯНГАН ТӨГРӨГИЙН ХАДГАЛАМЖ ҮҮСЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     “ENTRÉE RESOURCES” 2 ЖИЛ ГАРУЙ ҮРГЭЛЖИЛСЭН АРБИТРЫН МАРГААНД ЯЛАЛТ БАЙГУУЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     “ORANO MINING”-ИЙН ГЭРЭЭ БОЛОН ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ТӨСЛИЙН АСУУДЛААР ЗАСГИЙН ГАЗАР ХУРАЛДАЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     АЖИЛЧДЫН САРЫН ГОЛЧ ЦАЛИН III УЛИРЛЫН БАЙДЛААР ₮2 САЯ ОРЧИМ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     PROGRESSIVE EQUITY RESEARCH: 2025 ОН “PETRO MATAD” КОМПАНИД ЭЭЛТЭЙ БАЙХААР БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     2026 ОНЫГ ДУУСТАЛ ГАДААД АЖИЛТНЫ ТОО, ХУВЬ ХЭМЖЭЭГ ХЯЗГААРЛАХГҮЙ БАЙХ ХУУЛИЙН ТӨСӨЛ ӨРГӨН МЭДҮҮЛЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/19    

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

64x64

Equilibrated balance shows deficit of MNT2.7 trillion www.montsame.mn

Ulaanbaatar/MONTSAME/. According to the preliminary results in the first eight months of 2020, the total revenue of the general government budget was MNT 6.1 trillion. The equilibrated revenue of the general government budget was MNT 5.7 trillion and 93.7% of the total revenue of the general government budget. On the other hand, the total expenditure and net lending was MNT 8.3 trillion in the first eight months of 2020, resulting in a deficit of MNT 2.7 trillion in the equilibrated balance.
In August 2020, the total equilibrated revenue and grants of the general government budget were MNT 799.1 billion, decreased by MNT 0.8 billion or 0.8%, the total expenditure, and net lending was MNT 990.1 billion, decreased by MNT 77.5 billion or 7.3% compared to the previous month.
In August 2020, the equilibrated balance of the general government budget was in deficit of 190.9 billion, decreased by MNT 76.7 billion or 28.7% compared to the previous month.
The General government budget revenue was comprised of 84.8% of tax revenue, 8.9% of non-tax revenue, 6.0% of the future heritage fund, and 0.3% of the stabilization fund.
In the first eight months of 2020, tax revenue reached MNT 5.2 trillion, decreased by MNT 1.1 trillion or 17.4% compared to the same period of the previous year. This decrease was mainly due to MNT 375.5 billion or 22.7% decrease in income tax revenue, MNT 245.2 billion or 19.5% decrease in social security revenue, MNT 173.0 billion or 28.9% decrease in other taxes revenue MNT 165.8 billion or 10.9% decrease in value-added tax revenue, MNT 80.6 billion or 13.8% decrease in excise tax revenue and MNT 38.9 billion or 7.6% decrease in foreign activity revenue.
In the first eight months of 2020, 24.7% of the total tax revenue was accumulated from income tax, 19.7% from social security contributions, 26.3% from value-added tax, 9.8% from excise taxes, 9.2% from foreign activities and 10.3% from other taxes.
In the first eight months of 2020, value-added tax revenue from by increased 1.9 percentage points, foreign activity revenues increased by 1.0 percentage points and excise taxes revenue increased by 0.4 percentage points, while other taxes revenue decreased by 1.1 percentage points, income taxes revenue decreased by 1.7 percentage points and social security revenue decreased by 0.5 percentage points compared to the same period of the previous year.
In the first eight months of 2020, general government budget expenditure and net lending was MNT 8.4 trillion, increased by MNT 2.0 trillion or 32.1% compared to the same period of the previous year. This increase was primarily affected MNT 1.5 trillion or 30.1% increase in current expenditure and MNT 629.6 billion or 55.9% increase in capital expenditure, though net lending decreased by MNT 124.8 billion or 92.9%, compared to the same period of the previous year.
In the current expenditure, 42.5% was expenditure on goods and services, 46.4% was current transfers, 7.3% was interest payment and 3.8% was subsidies. In the first eight months of 2020, the capital expenditure amounted to MNT 1.8 trillion, increased by MNT 629.6 billion or 55.9% compared to the same period of the previous year.
The increase in the capital expenditure was mainly resulted from MNT 274.0 billion or 33.2% increase in construction expenditure, MNT 165.2 billion or 93.4% increase in other capital expenditure, MNT 183.3 billion or 4.5 times increase in equipment expenses and MNT 3.6 billion or 5.9% increase in capital repairs expenditure compared to the same period of the previous year.
Source: National Statistics Office
m
...


64x64

Mongolia: Overseas trade drops 16.3 pct www.menafn.com

According to information presented by the country's National Statistics Office (NSO) on Thursday, September 10, Mongolia's total overseas trade dropped 16.3 percent year on year in the first eight months of this year.
Mongolia's overseas trade reached USD7.9 billion in the January-August period, the NSO stated.
The decline in foreign trade is directly linked to preventive procedures to control the spread of coronavirus, according to specialists of the numerical agency.
MENAFN1309202000450000ID1100788660
...


64x64

Mongolian coal trucks entering China hits record number www.news.mn

A record number of Mongolian coal freight trucks has entered to China at once in August. In total, 2,233 heavy-duty trucks laden with coal entered China from Mongolia via four border points, namely Gashuunsukhait, Shiveekhuren, Bulgan and Khangi, hitting an all-time high.
This happened as a temporary regulation called theGreen Gateway came into effect on Aug. 1, which aims to boost trade and economic cooperation between China and Mongolia amid the COVID-19 pandemic.
Prior to the introduction of the regulation, an average of 500 to 1,000 coal trucks per day entered China from Mongolia, according to the Mongolian Ministry of Mining and Heavy Industry.
Mongolia exported a total of 11.2 million tons of coal in the first seven months of this year, a decrease of 46.4 percent compared to the same period last year, official data showed. The sharp decrease in coal exports was largely due to restrictive measures to contain the spread of COVID-19.
Mongolia is a landlocked country with rich natural resources, among which coal is the main export commodity
...


64x64

Global investors continue to pour cash into China despite coronavirus uncertainty & tensions with US www.rt.com

China attracted 84.1 billion yuan ($12.3 billion) in foreign direct investment (FDI) last month – 18.7 percent more than a year earlier – as the world’s second-largest economy continues to rebound after the Covid-19 outbreak.
August marked the fifth consecutive month of FDI growth, according to data from China’s Commerce Ministry. In the first eight months of this year, investment inflows jumped 2.6 percent to 619.8 billion yuan.
China remains a hot investment destination as it is one of only a few nations that managed to avoid falling into recession after the coronavirus outbreak rattled the global economy. After a record slump in the first quarter, China’s gross domestic product (GDP) beat forecasts in June, rising 3.2 percent.
Beijing has been stepping up its efforts to attract global investors. On Friday, senior Chinese officials said that the country is betting on the fast-growing service sector to support investors. They also revealed that the Chinese capital is looking to become a “national comprehensive demonstration zone” as it implements a range of measures, including facilitating cross-border flows of capital, support for overseas securities and futures firms, and encouraging foreign companies to participate in stock and bond trading.
“Foreign investors have expressed a strong wish to get into the telecommunications sector,” China’s Vice-Commerce Minister Wang Shouwen said on Friday, as quoted by CGTN. “Now the plan will allow foreign companies to invest in virtual private networks (VPNs), with a proportion of foreign shares not exceeding 50 percent. Overseas telecommunications providers can set up joint ventures to provide such services for foreign enterprises in Beijing.”
Investment inflows into China continue to grow despite rows with the US on multiple fronts. In addition to pressuring Chinese businesses on its own territory, the Trump administration has been attempting to persuade American companies to ditch China. While businesses are concerned about bitter trade tensions between the world’s two leading economies, US enterprises are reluctant to pack up their things, a recent survey by the American Chamber of Commerce (AmCham) in Shanghai showed. According to the poll, over 78 percent of companies do not want to change their investment allocations. As for moving out production, the survey found that just four percent of firms would relocate some capacities to the US, while 70 percent have no such plans.
...


64x64

Japan's governing party chooses Shinzo Abe's successor www.bbc.com

Japan's governing party is set to vote Monday on a new leader to succeed Shinzo Abe, with the winner almost certain to be the next prime minister.
Last month Mr Abe announced his resignation due to health reasons.
The winner is widely expected to be 71-year-old Yoshihide Suga who serves as chief cabinet secretary in the current administration.
He is considered a close ally of Mr Abe and likely to continue his predecessor's policies.
Once the conservative Liberal Democratic Party (LDP) has chosen its new leader, there will be another vote on Wednesday in parliament, where he is almost certain to be made prime minister because of the LDP's majority.
Taking over mid-term, that new prime minister is expected to finish the rest of the current period, until elections in September 2021.
Who is Yoshihide Suga?
Born the son of strawberry farmers, Mr Suga is a veteran politician.
Given his central role of chief cabinet secretary in the administration, he is expected to provide continuity heading an interim government until the 2021 election.
"Shinzo Abe and the other party bosses picked and joined the bandwagon for Mr Suga precisely because he was the best 'continuity' candidate, someone who they think could continue Abe government without Abe," Koichi Nakano, dean and political science professor at Tokyo's Sophia University, told the BBC.
While not considered the most energetic or passionate politician, Mr Suga has a reputation of being very efficient and practical.
One of his most prominent appearances recently was during the transition from past emperor Akihito to the current one Naruhito in 2019. It fell to Mr Suga to unveil the name of the new Reiwa era to the Japanese and global public.
Yet while he is the favourite to clinch the LDP leadership after Abe's resignation, it is is much less clear whether he will lead the party in next year's general election.
Observers suggest that by then, the party dynamic could shift to put a more vibrant man at the helm who can reach a wider general electorate.
Who else is running?
There are two other contenders who have thrown their hats in the ring.
Kishida Fumio served as foreign minister under Shinzo Abe, but for the past three years was heading the party's policy research council. Compared to Mr Suga, the 63-year old brings more international diplomatic experience to the table but lacks the endorsement by the outgoing prime minister.
The third contender is Shigeru Ishiba, a former LDP secretary-general and one time defence minister in an earlier Abe cabinet.
From all three contenders, Mr Ishiba who is also 63, is the one who has tried to distance himself most from the outgoing prime minister and is hoping to represent a fresh start after Mr Abe.
Even though neither him nor Mr Fumio are considered to have a realistic chance against Mr Suga, their bids might put them in a good position for the 2021 general election once the current term is up.
What is Japan's political outlook?
The leadership transition comes at a difficult time for the country. Japan is still struggling with the coronavirus pandemic which has caused its biggest economic slump on record.
Mr Abe's long-standing project of kickstarting the economy, dubbed Abenomics was, even before the pandemic hit, still a work in progress and the country has seen several years of stagnation, recession or only very slow growth.
There's also unfinished business in the government's plans to reform the post-war pacifist constitution. Mr Abe wanted to change a section in the constitution to formally recognise Japan's military, which is currently called the Self Defence Force and is essentially barred from participating in any international military mandates.
For all those projects, a new administration under Mr Suga could provide stability and stay the course.
But during his time as chief cabinet secretary, he was "remarkably lacking in vision," prof Nakano cautions.
"The only slogan he came up with is "Self help, mutual help, and public help" - emphasising neoliberal self-help and self-responsibility at the time of [a] pandemic that is exposing a whole lot of people to economic vulnerability."
New general elections for the Diet, the lower house, are scheduled for September 2021 and by then, there will likely be another leadership contest within the LDP.
That contest will be more about who can win over the general electorate - rather than merely promise continuity, observers say.
Why did Shinzo Abe resign?
Mr Abe said he did not want his illness to get in the way of decision making, and apologised to the Japanese people for failing to complete his term in office.
Last year, he became Japan's longest serving prime minister. His current period in office began in 2012.
He abruptly resigned from a previous term as prime minister in 2007 also because of his chronic condition.
...


64x64

Asian shares buoyed by coronavirus vaccine hopes www.reuters.com

SYDNEY (Reuters) - Asian shares firmed on Monday on renewed hopes for a coronavirus vaccine after AstraZeneca resumed its phase-3 trial though sentiment was still cautious ahead of a big week of central bank meetings in UK, Japan and the United States.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.7%, poised for its second straight session of gains.
Australian shares .AXJO climbed 0.6% while Japan's Nikkei .N225 added 0.7%. Chinese shares started firm with the blue-chip index .CSI300 rising 0.6%.
U.S. stock futures, the S&P 500 e-minis ESc1, jumped more than 1% after a mixed session on Wall Street last week.
Friday marked six months since the World Health Organization (WHO) declared the coronavirus a pandemic on March 11.
Since then, major global economies have slipped into recession and millions have lost their jobs, prompting central banks around the world to launch unprecedented stimulus.
The policy bazooka has buoyed financial markets, with the S&P500 .SPX up 22%, 10-year Treasury yields diving 20.4 basis points and the greenback =USD sliding 3.3%. The best performing major currency has by far been the Australian dollar AUD=D3, up 11.9%, thanks to sound risk appetite.
“A wild ride indeed and one that is likely to continue as phase 3 vaccine results starts to roll through over the coming weeks,” NAB analyst Tapas Strickland said in a note on Monday.
AstraZeneca AZN.L said on the weekend it has resumed British clinical trials of its COVID-19 vaccine, one of the most advanced in development, after getting the green light from safety watchdogs.
The late-stage trials of the experimental vaccine, developed with researchers from the University of Oxford, were suspended last week after an illness in a study subject in Britain, casting doubts on an early rollout.
A vaccine has long been awaited to help pull the world out of a coronavirus-induced lockdown.
“The reopening of the global economy is enticing us to recommend a trade going long a basket of 14 laggard ‘back to work’ stocks versus a basket of 14 high-flying ‘COVID-19 winners’,” BCA Research wrote in a note.
“While we maintain a cyclical and secular bullish outlook on the broad market, a short-term correction due to technical and (geo) political reasons is likely on the cards,” it said
“A playable short-term pullback is in order.”
Later this week, the U.S. Federal Reserve will hold its two-day policy meeting where it is expected to hold rates while elaborating on the already-announced shift to inflation targeting.
Also, “the Fed is set to be less pre-emptive in tightening policy than in the past,” NAB’s Strickland noted.
The Bank of Japan and the Bank of England will announce their respective policy decisions on Thursday.
Asia’s focus will be on the election of Japan’s new Prime Minister with a party room vote expected to begin at 0500 GMT.
Major currencies were treading water on Monday.
The dollar was mostly steady against the yen at 106.11 JPY=, a long distance from its low this year of 101.2.
The euro EUR= was flat at $1.1849. The Aussie AUD=D3 was barely changed at $0.7285 while Sterling was a tad higher at $1.2823.
In commodities, U.S. crude CLc1 jumped 0.7% to $37.58 a barrel. Brent crude LCOc1 climbed 0.5% to $40 per barrel.
Gold was firm, with spot prices XAU= at $1,949.7 per ounce.
Reporting by Swati Pandey; Editing by Sam Holmes
...


64x64

Rio Tinto chief Jean-Sébastien Jacques to quit over Aboriginal cave destruction www.bbc.com

The boss of Rio Tinto, Jean-Sébastien Jacques, will step down following criticism of the mining giant's destruction of sacred Aboriginal sites.
In May, the world's biggest iron ore miner destroyed two ancient caves in Pilbara, Western Australia.
The company went ahead with blowing up the Juukan Gorge rock shelters despite the opposition of Aboriginal traditional owners.
It sparked widespread condemnation from shareholders and the public.
On Friday, the company said in a statement: "Significant stakeholders have expressed concerns about executive accountability for the failings identified."
The board said Mr Jacques would remain as the chief executive until March or until a successor was appointed.
Other senior executives, including the heads of the miner's iron ore and corporate relations divisions, will also leave the company at the end of the year.
The caves - seen as one of Australia's most significant archaeological research sites - had shown evidence of continuous human habitation dating back 46,000 years.
They sat above about eight million tonnes of high-grade iron ore, with an estimated value of £75m (A$132m; $96m).
Australia's parliament is currently holding an inquiry into the miner's actions.
Rio Tinto also held its own inquiry earlier this year, after which the company cut bonuses for directors and began attempts at repairing relations with Aboriginal communities.
"What happened at Juukan was wrong and we are determined to ensure that the destruction of a heritage site of such exceptional archaeological and cultural significance never occurs again at a Rio Tinto operation," said chairman Simon Thompson.
Artefacts found at the caves include a 28,000-year-old animal bone tool and a 4,000-year-old belt made of plaited human hair. DNA testing had directly linked it to the Puutu Kunti Kurrama and Pinikura (PKKP) people - the traditional owners of the land.
After the caves were destroyed, a PKKP representative, John Ashburton, said losing the site was a "devastating blow".
"There are less than a handful of known Aboriginal sites in Australia that are as old as this one... Its importance cannot be underestimated," he said.
Last week it was revealed that in the days running up to the caves' destruction in May, Rio Tinto hired lawyers in case opponents tried to seek injunctions to stop them.
Although the company said it had permission for the work under Aboriginal heritage laws, critics said it suggested the miner was aware of the site's cultural importance.
In June, rival miner BHP also halted its plans to expand its mine in the Pilbara region in June following the outcry over Rio's actions.
Last month, Rio Tinto said it had cut Mr Jacques' bonus by £2.7m. It also said Chris Salisbury, chief executive of iron ore, and Simone Niven, group executive of corporate relations, would lose more than half a million pounds each.
But Tom Stevenson, investment director at Fidelity International, said Rio Tinto's actions had been "slow and misguided".
"It was slow because when it knew the significance of those sites it could have reversed its position and it didn't," he said.
"And it is misguided because when it cut bonuses recently it effectively put a price on something which is basically priceless and I think that that was tin-eared really. I'm not surprised that we've moved onto this stage where the chief executive felt that he had to go."
The cultural value of the Juukan Gorge shelters is huge and so is the loss.
This decision to let the CEO go could be seen as a vindication after months of ongoing pressure from traditional landowners, other Aboriginal groups and shareholders who refused to stand for the destruction of one of Australia's most important archaeological sites.
The scandal also highlights the great imbalance of power between Australia's influential mining industry and traditional landowners; and what the government's responsibility should be to ensure the protection of historical and ancestral sites.
Last month Mr Jacques and two senior executives were stripped of their multimillion-dollar bonuses for 2020. The move seemed to have backfired.
Many saw cutting the pay of already very high-earning executives as showing a clear lack of touch, and nowhere near a satisfactory retribution for those responsible for overseeing community relations.
Rio Tinto chairman Simon Thompson said that the mining giant was determined to regain the trust of the Puutu Kunti Kurrama and Pinikura people and other traditional owners.
But given how they've handled this scandal, it's hard to see that happening any time soon.
 
 
 
...


64x64

Chinese Foreign Minister Wang Yi to pay official visit to Mongolia www.montsame.mn

At the invitation of Minister of Foreign Affairs of Mongolia N.Enkhtaivan, State Councilor of the People’s Republic of China, Minister of Foreign Affairs Wang Yi will pay an official visit to Mongolia on September 15-16.
During his visit to Mongolia, Mr. Wang Yi is set to hold official talks with his Mongolian counterpart alongside paying courtesy calls on heads of state of Mongolia.
The visit aims to keep frequency of bilateral high-level visits and move forward bilateral cooperation in all areas. And strengthening the achievements in efforts for reviving economic cooperation alongside continuing collaboration in prevention of COVID-19 pandemic will be main topics of meetings and talks to be held during the visit.
The sides agreed to realize the visit considering the current situation of the COVID-19 outbreak in the two countries that China has taken control of the pandemic and Mongolia has zero local transmission. As the visit is to be hosted in Mongolia under the heightened state of readiness, corresponding officials are making coordination so that as few people as possible participate in the official events and the infection prevention rules is strictly adhered.
Furthermore, foreign visits, events and multilateral meetings started to be held again in recent months as the countries are coping with the new situation. In particular, State Councilor of the People’s Republic of China, Minister of Foreign Affairs Wang Yi did visits to the European countries from August 25 to September 1 and he will pay visits to Russia, Kazakhstan and Kyrgyzstan prior to his visit to Mongolia.
...


64x64

Mongolia to challenge Australia on coking coal exports www.news.mn

Increasing penetration of renewables in the energy mix has already created a bearish outlook for non-coking coal trade, but completion of the rail network between Mongolia and China in 2021 threatens to bring the coking coal trade between Australia and China to a screeching halt in the long term.
Mongolia is laying down 415 kilometres of railway network from its Tavan Tolgoi coal mine to the Zuunbayan China-Mongolia border crossing, which will ultimately connect to the existing railway networks of China to transport coal to Chinese steel mills. The rail line was scheduled to be completed by the end of 2020 and to become operational from 2021, but the project will get delayed due to the COVID-19 pandemic. We now expect the railway line to begin functioning by the end of 2021.
Once the railway network is fully functional, a significant proportion of China’s coking as well as non-coking coal imports might enter the country via trains (from Mongolia and Russia) hurting shipping demand considerably in the long term.
China’s coking coal imports
China imported 75 million tonnes of coking coal in 2019, of which Australia accounted for more than 40%. The Australia-China coking coal trade generated 150 billion tonne miles of shipping demand in 2019 which is more than 9% of total shipping demand generated by coking coal globally. After the completion of the Mongolia-China railway line, China might completely shift its coking coal imports to Mongolia and away from Australia because of three reasons:
The railway network will have an annual capacity of 30 million tonnes, similar to the quantity that China currently imports from Australia. The quality of Mongolia’s coking coal is much better than that of Australian coal, making it increasingly difficult for Australia to compete.
The ongoing diplomatic and trade dispute between China and Australia is threatening coal trade between the two countries, leading China to impose stricter curbs on imports from Australia. China is looking for a long-term partner to meet its requirement of coking coal.
China has increased its imports from Mongolia over the past few years despite poor logistics. Once the infrastructure is in place, China’s coking coal trade with Mongolia will increase substantially and most likely, it will replace Australia’s entire share in China’s coking coal imports. The shift in trade is very significant as it will result in a sharp decline in shipping demand, especially for Panamax vessels employed in the Pacific because Australia-China is a seaborne trade while that between Mongolia-China is over land.
Impact of Phase-2
The second phase of the railway line will expand to Khorloogiin Choibalsan in east Mongolia, establishing a direct connection with Russia and thus reducing the cost of coal trade between Russia and China.
Russia exports around 30 million tonnes of coal a year to China (of which almost 50% is coking coal); almost 80% is transported by sea. In the absence of a point-to-point rail network, Russia’s coal is transported from its coal mines to the ports through domestic railways and then onto ships for its onward journey. From Chinese ports this coal is transported to the steel mills via the domestic rail network. When the rail network is completely functional, Russia will export its coal mainly on trains to minimise the cost and freight (CFR) of coking and non-coking coal.
Even though Russia exports most of its coal to China from its far-eastern port of Vostochny, (roughly a thousand nautical miles from Qingdao), a shift in the coal trade between Russia and China from seaborne to railways will cut down the shipping demand by 25-30 billion tonne miles from 2025.
As a result, the two-phased rail line construction plans in Mongolia will bring about a structural shift in coal movement in Asia that will have a substantial negative impact on overall dry bulk shipping demand in the long term (post 2025).
Source: Drewry
...


64x64

China claims 'important breakthrough' in space mission shrouded in mystery www.bbc.com

Ever since China claimed success in the secretive launch of an experimental spacecraft, experts have been pondering over what it could be and what it did in space.

The spacecraft - mounted on a Long March 2F rocket - was launched from the Jiuquan Satellite Launch Centre in northern China on 4 September and safely returned to Earth after two days in orbit.

"The successful flight marked the country's important breakthrough in reusable spacecraft research and is expected to offer convenient and low-cost round-trip transport for the peaceful use of space," state-run Xinhua News Agency said on 6 September in a brief report.

But unlike recent Chinese high-profile space missions, very few details have emerged about the vehicle and no visuals have been released.

Mysterious vehicle
Chinese authorities have been tight-lipped about the nature of the short-duration excursion and what technologies were tested.

The exact launch and landing times were not revealed, nor was the landing site although it is thought to be the Taklamakan Desert, which is in northwest China.

"There are many firsts in this launch. The spacecraft is new, the launch method is also different. That's why we need to make sure there is extra security," a military source told South China Morning Post (SCMP).

An official memo circulating on social media also warned staff and visitors to the launch site not to film the lift-off or discuss it online, according to SCMP.

The launch of the vehicle may have come as a surprise - there was no official announcement prior to the launch - but China has been working on such technology for the past decade. Three years ago, China said it would launch a space vessel in 2020 that "will fly into the sky like an aircraft" and be reusable.

A reusable spacecraft - as the name implies can undertake multiple trips to space - thereby potentially lowering the overall cost of launch activity. A traditional one-off spacecraft - costing tens of millions of dollars - is practically rendered useless after a single mission.

The experimental vessel reached an altitude of about 350km, which is in line with China's previous crewed flights. The spacecraft also released an unknown object into the orbit before returning to Earth.

Jonathan McDowell, an astronomer at Harvard Smithsonian Centre for Astrophysics, says the aim of the mission was likely to test out the vehicle's systems such as power, temperature, stability and to prove it could re-enter and land correctly.

Once the testing is complete, such a vehicle could be used to launch and repair satellites, survey the Earth, as well as take astronauts and goods to and from orbit, possibly to a planned future Chinese space station.

Comparisons to US' X-37 space plane
The Chinese craft's size and shape remain unclear but it is widely believed to be some sort of uncrewed space plane similar to the X-37B Orbital Test Vehicle operated by the US Air Force.

The recent mission could be linked to the Shenlong - or divine dragon - space plane project, which has been in development for some time, according to reports. A second Chinese reusable space plane called Tengyun, or cloud climber, is also in the works.

If confirmed as a space plane, China would become only the third country to have successfully launched such a vehicle into orbit after the US and the former Soviet Union.

The European Space Agency is working on its own reusable orbital vehicle called Space Rider, while India is also said to be developing a space shuttle-like craft.

The X-37B, resembling a miniature space shuttle, has been in orbit since late May following its launch on its sixth assignment. Very little is known about the X-37B's missions, prompting speculation that the planes could be used for spying activity or testing space weapons.

Similarly, the lack of publicity has given rise to speculation that the Chinese spacecraft could also possibly have some military use.

"The secrecy, I am sure, is just because it is a military project," adds McDowell, who has been closely following the mission.

There is little distinction between China's civilian and military space programmes which fuels suspicions about Beijing's space ambitions.

"It is reasonable to assume that what's being tested has some military applications, probably new satellite equipment and spying technologies," notes Bleddyn Bowen, a space policy academic at the University of Leicester.

"We'll have to wait and see how many future flights like this China may conduct to see whether it will match the scale of X-37B," he told the BBC.

China's state-run outlet Global Times, citing observers, did say that the country should have the capability to strike anywhere on Earth within half an hour, just as the X-37B does.

China's growing space ambitions
Whatever its purpose, the reusable system marks yet another milestone for China's ambitious space programme, and comes weeks after the launch of Tianwen-1, China's latest attempt to reach Mars.

China has poured significant funding into its space efforts, and last year became the first country to send an uncrewed rover to the far side of the Moon.

President Xi Jinping has also thrown his support behind the country's space endeavours and the Chinese state media regularly cast the "space dream" as one step in the path to "national rejuvenation".

Earlier this year it also completed the network of satellites for its BeiDou navigation system, an alternative to the US GPS system. China is also working toward sending astronauts to the Moon and, eventually, Mars.

"If this really is a space plane, and not just a reusable capsule like Dragon, then it represents a big step forward in China's space technology as winged re-entry is really hard to do," notes McDowell.

"China was way behind in space but has been gearing up its space programme on all fronts and is now catching up fast. The spacecraft launch is just another reflection of that."

Bleddyn Bowen adds the spacecraft launch is "just another part of China becoming a comprehensive space power that utilises space technology for the purposes of war, development, and prestige like all others".

...