Mongolia exports 6.09 million tonnes of iron ore over January-October, surging 28.46% from the previous year, showed the latest data from the Mongolian Customs General Administration (MCGA).

The export earnings increased by 36.30% on the year to $494 million during the same period, data showed.

China remained the unique destination of Mongolia iron ore exports in the first ten months of 2024.

MCGA didn't release the specific figure for October. Sxcoal calculated the exports at 632,200 tonnes based on the data published by the customs authority, up 25.62% year on year and 3.05% on the month, marking a two-month consecutive growth.

The value of iron ore exports amounted to $47.77 million, with the average price at $75.56/t, down $2.20/t from the year-ago level and $2.45/t from a month ago, calculations showed.

Over the past few decades, Mongolia's economy has transitioned from being primarily agricultural to one dominated by mining. In 2000, the mining sector represented just 5.4% of the country's economic structure; today, it accounts for 30%.

In recent years, the mining sector accounts for around 90% of total exports and 70% of foreign direct investment. Mongolia's heavy reliance on the mining sector leaves its economy highly vulnerable to fluctuations in commodity markets and external economic conditions. In 2015-2016, global commodity price declines, and in 2020, border closures due to the pandemic, plunged Mongolia's economy into turmoil.

Mongolia's main export products are copper and coal, accounting for 18% and 59% of total exports, respectively. Issues related to port caused Mongolia to miss out on the commodity supercycle boom of 2021 and 2022. Structural reforms in both political and port operations have stabilized export volumes, reaching historically high levels.

Copper ore and concentrate exports surged to an all-time high with an increase in average prices. China's imports of unwrought copper increased, driven by seasonal demand in China and an optimistic outlook for the industrial metal. Despite the decline in unit prices, coal exports have remained at a high level except for September.

To promote open and transparent trading of mining products and to establish a market-driven pricing environment, Mongolia began facilitating the trading of mining products through the Mongolian Stock Exchange at the start of 2023. In the first ten months of 2024, 19.4 million tonnes of coal were traded on the exchange, marking a twofold increase compared to the same period last year. Erdenes Tavantolgoi LLC, Energy Resource LLC and Tavantolgoi LC account for the majority of coal traded on the stock exchange. In October, the exchange traded 2.0 million tonnes of coal across 37 successful transactions, making it one of the most active months since the start of the year.

China's coal imports, which elevated in 2023, are expected to remain strong in 2024. The surge in import was largely influenced by price advantage against domestic coal. Over the past three years, Mongolian bituminous coal has supplied 25% of China's total bituminous coal demand and has been 40.6% cheaper than other major exporting countries.

The government of Mongolia expects coal prices to decline in 2025; however, due to China's new economic model, demand for steel is anticipated to remain steady, which should drive an increase in the physical volume of Mongolia's coal exports. It also plans to advance its port reform policy by digitizing port operations, increasing the volume of cross-border vehicle traffic, accelerating the development of cross-border railways, and enhancing the efficiency of the mining products exchange. The government projects coal exports to reach 83.3 million tonnes next year.

(By Tsogbadrah Naranmunkh, Ard Securites)

Mongolia's National Agency for Meteorology and Environmental Monitoring has issued a severe weather warning for the western regions of the country, forecasting strong winds and blizzards to begin on Tuesday.

The agency has specifically highlighted the provinces of Bayan-Ulgii and Khovd, where wind speeds are expected to exceed 24 meters per second. These powerful winds, coupled with heavy snow, are anticipated to significantly reduce visibility on the roads, creating hazardous conditions for travelers.

The agency warned that blizzards could disrupt transportation networks and make travel in the affected regions highly dangerous.

The unstable weather is expected to continue over the next few days, with conditions potentially worsening as the storms progress.

Authorities have urged the public to exercise caution, especially nomadic herders and drivers. Herders, who rely on moving livestock across vast, remote landscapes, are advised to closely monitor weather forecasts and prepare for rapid changes in conditions. Drivers in the affected areas are being strongly advised to avoid unnecessary travel during the storm's peak intensity.

Mongolia, known for its harsh continental climate, regularly experiences extreme weather patterns throughout the year. The Asian country, one of the last remaining nomadic societies in the world, is especially vulnerable to sudden and severe weather events. In addition to its already cold temperatures, Mongolia often faces erratic weather that can have devastating consequences on both its human and animal populations.

In a recent example of such risks, over 10 people, mostly nomadic herders, tragically lost their lives in the central province of Tuv and the eastern province of Sukhbaatar due to heavy snow and blizzards in November 2023.

The “Ulaanbaatar Railway Joint Stock Company” has successfully launched Starlink internet service on its passenger trains, providing seamless connectivity for travelers. Initially, the service was installed on 10 trains operating between Ulaanbaatar City and Zamiin-Uud, a major route connecting the capital to the southern border.

With the introduction of Starlink’s high-speed satellite internet, passengers can now enjoy uninterrupted internet access throughout their journey, even in remote areas with traditionally poor network coverage. This marks a significant upgrade in services, particularly benefiting passengers traveling long distances who often rely on a stable internet for work, communication, and entertainment.

The initiative aims to address the digital gap for passengers in rural and remote regions, ensuring they have access to high-speed internet during their travels. By providing reliable connectivity even between stations, the new service allows passengers to continue their activities without disruption, enhancing overall travel experience and productivity.

This move is part of broader efforts to modernize Mongolia’s rail services and enhance digital infrastructure across the nation, particularly in underserved areas.

Historically, the Great Gobi Strictly Protected Area, located in the Gobi-Altai province, was designated as a national protected area in 1976.

The Gobi ecosystem here is home to an extraordinarily rare diversity of flora and fauna, recognized worldwide. Notably, in 1997, the Great Gobi Strictly Protected Area was listed in UNESCO’s Man and the Biosphere Programme, preserving a desert ecosystem with minimal human impact. It is the habitat for rare animals found only in Mongolia, and some even globally scarce species such as the Gobi bear, wild Bactrian camels, Mongolian wild ass, Przewalski's horse, black-tailed gazelle, argali, and ibex.

As a result of the protection efforts, the Gobi bear population has risen to around 50, and there are now over 600 wild Bactrian camels. There are 37 species of animals here in critical need of conservation, including argali, ibex, manul, and snow leopards. These species are exceptionally sensitive to disturbances: for example, wild Bactrian camels will detect sound from 10-20 kilometers away and can run continuously for 60-70 kilometers to escape, joining other camel herds along the way. The Gobi bear is also highly cautious and avoids humans and other animals. Thus, opening a port in this area would disrupt the habitats and migration routes of these sensitive species, experts warn.

The Naransevstein Port was initially opened in the Great Gobi Strictly Protected Area in 1992 but was soon closed due to its negative impacts. The opening drove endangered animals away, degrading their habitats, and illegal activities along the border surged. Yet now...

“THE NARANSEVSTEIN PORT WILL BE REVIVED”

The government’s 2024-2028 action plan includes a provision to reopen Naransevstein Port.

On August 12, 2024, the government submitted its 2024-2028 program to parliament was approved specifies plans to "Revive and reopen Naransevstein Port."

Experts’ Concerns: In 2008, the "Comprehensive Development Policy of Gobi-Altai Province" proposed exploiting the Taliin Meltes gold deposit with estimated reserves of 200-300 tons as a means to accelerate regional development. While past governments, including those of S. Bayar, N. Altankhuyag, and Ch. Saikhanbileg, tried to include this deposit in economic plans to address national economic difficulties, they met strong opposition. In 2009, environmental advocates and local residents resisted a joint government decision under S. Bayar to remove Khatansuudal (a copper and iron deposit) and Taliin Meltes (a gold deposit) from special protection.

The copper and iron deposit, Khatan Suudal and gold deposit Taliin Meltes are located in Great Gobi Strictly Protected Area

The copper and iron deposit, Khatan Suudal and gold deposit Taliin Meltes are located in Great Gobi Strictly Protected Area

Mongolia currently has 13 border ports spanning 4,709 kilometers, including two in Gobi-Altai: the Burgastai and Shiveekhuren ports. The renewed focus on Naransevstein port, located in a protected area with vulnerable wildlife, raises questions.

Environmental organizations and experts argue that it is impossible to build a road through the protected area to open this port. Burgastai Port connects with Altai City through Bugat, Tugrug, and Sharga soums, providing a more direct route to the Chinese border and further to Europe. The insistence on building a road through a delicate ecosystem at Naransuvstain suggests a potential interest in extracting the area’s mineral resources.

The route to Altai City via Burgastai or Shiveekhuren ports is much shorter than via Naransevstein. Advocates of Naransevstein argue it is the only border crossing directly connecting to Gansu Province in China, central China, rather than Xinjiang (Burgastai Port) or Inner Mongolia (Shiveekhuren Port).

Furthermore, former Gobi-Altai governor and parliament member O. Amgalanbaatar states that they plan to build a road corridor to protect wildlife migration. However, experts contend that this corridor would instead restrict the animals’ migration and compress their habitats.

The phrase “reviving and reopening Naransevstein Port” poses a serious risk to the Great Gobi Strictly Protected Area and its endangered species.

Reopening the port would contravene the following laws:

Mongolian Constitution:

Article 1.2: “…Democracy, justice, freedom, equality, national unity, and respect for the law shall form the basis of state activity…”

Article 10.2: “…Mongolia shall fulfill its obligations under international treaties…”

Article 70.1: “…Laws, decrees, decisions of state bodies, and activities of citizens must comply with the Constitution…”

International Conventions:

Convention on Biological Diversity, Article 8(d): “…Promote the protection of ecosystems, natural habitats, and the maintenance of viable populations of species in natural surroundings…”

At the invitation of Minister of Culture, Sports, Tourism, and Youth of Mongolia Nomin Chinbat, Joan Laporta, President of FC Barcelona, arrived in Mongolia on November 12, 2024. FC Barcelona, a renowned professional football club based in Barcelona, Spain, holds a 124-year history, 27 La Liga titles, five Union of European Football Associations (UEFA) Champions League trophies, and five Super Cup titles.

Minister Nomin Chinbat and President of FC Barcelona Joan Laporta held an official meeting to discuss joint efforts between FC Barcelona’s experts and the Mongolian Football Federation to foster the activities of the “Official FC Barcelona Soccer Academy of Mongolia,” refine the skills of young football players, and introduce training methods in Mongolia.

Moreover, in order to advance future cooperation, the two sides discussed the possibility of promoting Mongolia globally by collaborating with FC Barcelona under the National Brand “Go Mongolia.”

World Leaders Climate Action Summit commenced in Baku, the Republic of Azerbaijan on November 12, 2024.

Upon his arrival at the Baku Stadium, President of Mongolia Khurelsukh Ukhnaa was greeted by UN Secretary-General Antonio Guterres and President of the Republic of Azerbaijan Ilham Aliyev.

World Leaders Climate Action Summit, which is taking place during the UN Climate Change Conference COP29, aims to accelerate the progress of the fight against climate change, strengthen the unity of the parties, and expedite the actions for the commitments to achieve zero greenhouse gas emissions by 2050. The Summit also seeks to limit global warming to 1.5 degrees Celsius, support activities for combating and adapting to climate change, raise funds, and particularly define a new joint financing goal to meet the growing needs of developing countries.

Azerbaijan, the chair of COP29, called on developed countries to make notable progress in doubling financing for climate change adaptation by 2025, prioritizing the reduction of greenhouse gas emissions, adaptation to climate change, mitigating and building resilience, promoting sustainable practices, and implementing policies and initiatives to transition to a low-carbon economy.

President of Mongolia Khurelsukh will address the Summit on November 12, 2024, to express Mongolia's position on climate change, combating desertification, and mitigating global warming, and present the policies and actions implemented at the national level.

Last week, a meeting was held for organizations collaborating on the EU-funded “Project on Strengthening the Capacity of Bio-Leather and Bio-Leather Product Production Cluster of Plant Tanned Yak Skin and Leather Products in Mongolia”. This initiative, funded through the SWITCH-Asia grant program, aims to enhance Mongolia’s bio-leather sector by developing sustainable and eco-friendly tanning processes for yak leather, ultimately boosting the industry’s global competitiveness.

At the meeting, attendees discussed progress, shared insights on ongoing activities, and outlined future actions for the project, which is set to continue until 2025. The project’s goals include introducing new bio-tanned yak leather products to the market, improving production and finishing processes, and enhancing the technical skills of tannery personnel. With these advancements, Mongolia’s leather industry is positioned to expand its sustainable practices and market presence.

The meeting was attended by key figures including Senior Project Manager Alexia Zaglara and Project Manager Ian Leach.

An essential component of the project involved a five-day training session on the International Leather Working Group Standard and Value in the Supply Chain of Vegetable Tanned Yak Leather Products, led by Spanish expert Borja Mateu. This training emphasized best practices for sustainability and quality in leather production, concluding with the presentation of certificates to participants, marking their successful completion of the program.

By fostering collaboration and enhancing expertise in bio-leather production, this project aims to elevate Mongolia’s leather industry to meet international standards, enabling sustainable growth and access to new markets.

Mongolia's foreign trade turnover reached 22.7 billion U.S. dollars in the first 10 months of 2024, reflecting a robust increase of 13.75 percent compared to the same period in 2023, according to data released by the Mongolian Customs General Administration on Monday.

The landlocked Asian nation reported a significant surplus in its foreign trade balance, with exports exceeding imports by over 3.6 billion dollars. This surplus was largely driven by a sharp rise in the export of mining products, a cornerstone of the country's economy, the administration noted.

Mining products accounted for approximately 90 percent of Mongolia's total exports during the 10-month period, underscoring the critical role of the mining sector in the nation's trade.

China continued to be Mongolia's largest trading partner, serving as both the top export destination and the primary source of imports. In the first 10 months of 2024, China accounted for 90.9 percent of Mongolia's exports and 39.9 percent of its imports, maintaining its dominant position in bilateral trade.