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

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

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Where reindeer roam: Life among Mongolia’s nomadic herders www.nationalgeographic.com

I needed out of Ulaanbaatar. Mongolia’s capital city, the coldest national capital on Earth, is choked with coal dust in winter and construction debris in every other season. It was the summer of 2016, and I’d just spent a year there teaching English and chasing stories as a freelance writer. When my fellow teacher Anudari suggested a trip to the taiga, I jumped in her car, no questions asked.

The taiga refers to a vast Siberian forest that spills over the Russian border into Mongolia. The most famous part lies beyond Lake Hövsgöl at the country’s northernmost point. This is where the Tsaatan live. A remote minority group of nomadic reindeer herders, they are often problematically characterized as “mystical,” “untouched,” and even a “lost tribe.” Not to mention “highly photogenic.”

Anudari steered us expertly through Ulaanbaatar’s motionless traffic and onto a rare paved highway. The sky unfurled as we turned west, the landscape falling open in all directions. Anudari chatted excitedly. A Mongolian American, she frequently traveled into the countryside with her family, but she’d always wanted to visit the Tsaatan. This would be a magical experience. The trip of a lifetime.

I was the cynic in the car. The Tsaatan are among Mongolia’s staple travel stories (along with the Altai eagle hunters) because, frankly, herding reindeer through a starry wilderness sounds irresistibly romantic. Plus, the landscape they roam is so inaccessible that any visitor is automatically upgraded to an adventurer. I was uncomfortable with the whole narrative package—the aggrandizement, the paternalism, the implied exploitation. Worst of all, I was secretly thrilled to be going.

Into the taiga
The Tsaatan have herded reindeer through the taiga for centuries, first in their native Tuva—a Russian republic—and then, when borders were redrawn under Soviet influence in 1944, in Mongolia. Only a few hundred still follow the traditional lifestyle, and with search engines opening up the hidden corners of our world, they have become an attraction. Tour companies offer adventure packages to the taiga, where visitors can experience Tsaatan daily life: milking reindeer, making cheese, harvesting pine nuts, and sleeping in traditional teepee-shaped tents, called ortz.

That’s not to say it’s an easy trip. The taiga is remote, even by Mongolian standards. The country is largely roadless and overland travel is time-consuming. The forest itself can be navigated only on horseback. This is one trip where the journey really does outweigh the destination—we would spend eight days, traveling for two days, with the Tsaatan.

A few days of driving brought us to the dust-and-plywood town of Mörön, where we secured a driver, a guide, and provisions and arranged for horses to meet us at the forest’s edge, all for $150 per person. We were not asked if we knew how to ride. Most questions concerned weight—our own and our overpacked bags. Mongolian horses are small and can carry only around 200 pounds. They’re half wild from fending for themselves on the steppe. They respond to one command: tchoo. It means “go faster.”

I had another two days to ponder my minimal riding experience as we drove north from Mörön. It was pouring rain, and our battered van sloshed over waves of mud while I huddled in the back, pretending not to be seasick.

The sky cleared to blue as we lurched up to the taiga. The forest began abruptly, a wall of pine and larch. Our Tsaatan host, Delgermagnai Enkhbaatar, was waiting with the horses.

Although there was snow on the nearby mountains, our route was mostly swamp. The horses staggered through the bog like drunks. After hours negotiating mud slicks and churning rivers, we arrived at camp in darkness.

A lake mirrored the rising moon. Reindeer stood spindly-legged around the family’s ortz. The sky was streaked with shooting stars.

Rats, I thought. This just might be a little bit magical.

“The Tsaatan are not an ‘undiscovered tribe,’” admonished the herding community’s website. Yes, they know of websites (though theirs is currently off-line). And Tsaatan means “people with reindeer” in Mongolian—not their native language. The herders call themselves Dukha.

“You will not be the first or last person they have hosted,” the website continued. “They are a modern people who have welcomed visitors from all over the world.”

We had passed a few of these visitors on our ride to Enkhbaatar’s camp, their nylon jackets vivid against the darkening forest. Our guides greeted each other warmly. The foreigners exchanged tight little nods, each regarding the other as interlopers. Then we rode on, pretending the encounter hadn’t happened.

Once at camp, it became apparent that the only lost tribe in the taiga was us tourists. We had armed ourselves against physical remoteness with maps and GPS, but there was no app for cultural dislocation.

This wasn’t just embarrassing but potentially dangerous. The taiga is not a forgiving landscape. Hypothermia was a real possibility, even in August. Enkhbaatar had bear and wolf teeth among his carved trinkets, and the Russian border police stopped by looking for escaped convicts. The sheer scale of the wilderness felt threatening; the only way in or out was on horseback through trackless marsh. I became uncomfortably aware that, for all my travel knowledge, I brought nothing useful to the experience besides a can-do attitude.

Meanwhile Enkhbaatar’s family was clearly at home with both their ways and ours. The kids knew how to swipe through smartphone apps and shake a Polaroid until the image emerged. They were delighted with the toy cars we brought and made vroom vroom noises while pushing them up the poles of the family ortz. Most of their play, however, mimicked the adults’ work—making fires, fetching water, tending the animals.

On the second day, Enkhbaatar offered to take us riding into the eastern Sayan Mountains. He prepped the reindeer while his toddler attempted to saddle up the family dog with an old blanket.

I hoisted myself clumsily onto my mount, and Enkhbaatar demonstrated how to steer with the single guide rope. We were interrupted by a strange sound: a “Für Elise” ring tone. Without a word, Enkhbaatar handed the rope to his child and disappeared into the ortz.

“Baina uu?” I heard him answer the phone. My own cell hadn’t picked up a signal for days.

Abruptly I realized I had no clue how to ride this reindeer. If it bolted, I’d be halfway to Siberia before Enkhbaatar returned. I looked down at the 18-month-old holding my reins.

Storytelling is reflective. The words we choose to describe the Tsaatan—mystical, lost, exploited, endangered—imply our own roles in the story as well. Are we bold adventurers, self-righteous skeptics, or maybe just the comic relief? I returned from the taiga with this conundrum on my mind. Several years on, I still think about it every time I write a story.

Lately, though, I’ve been remembering that trip for other reasons—reasons related to claustrophobia. The coronavirus pandemic has compressed life to fit inside walls and screens, and I’m longing for the boundless space of the Mongolian countryside. Right now that’s an impossible dream: In an effort to keep out the virus, Mongolia has been closed to international travel since March. I’m glad. Roughly a third of Mongolians are nomadic herders like Enkhbaatar. They’re a long ride from medical care.

I admit my memories of the trip are romantic, maybe even magical. I remember the taste of reindeer-milk tea, and the pale, chilled mornings when camel-wool long johns weren’t enough to keep me from shivering. The slidey-wobbly feel of riding a saddled reindeer. The night sky shimmering yellow as a full moon rose. I remember Enkhbaatar’s wife laughing at my knife skills as we cooked and the kids dogpiling me for piggyback rides. Enkhbaatar’s smile as we parted, telling us to come back again sometime.

That toddler at the end of my rope must be nearly old enough to start school now. She won’t remember me or any of the travelers who visited her family that summer. Yet I wonder how she would have described us, the mysterious here-and-gone strangers so out of touch that we didn’t know how the bathroom worked. Possibly she would choose some of the same words we used, ahead of our trip, for her family. I’m reasonably sure one of them would be “lost.”

Erin Craig is a freelance writer based in Asia.

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Mongolia extends heightened state of readiness until end of August www.xinhuanet.com

Mongolia on Tuesday decided to extend the country's heightened state of readiness until Aug. 31 amid the COVID-19 pandemic.

The extension is part of efforts to prevent the spread of the coronavirus, the State Emergency Commission said in a statement.

As of Tuesday, Mongolia has confirmed 289 COVID-19 cases with no local transmissions or deaths.

All the confirmed cases in the Asian country were imported, mostly from Russia, according to the commission.

The country entered its heightened state of readiness in mid-February, with measures including the suspension of international passenger flights. Enditem

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SEC suggests to reopen schools, kindergartens on September 1, cabinet to make final decision www.montsame.mn

Ulaanbaatar /MONTSAME/. At its meeting held on July 28, the State Emergency Commission (SEC) discussed the issues regarding the extension of the period of the heightened state of readiness for disaster protection amid COVID-19 pandemic and re-opening of all levels of educational institutions.

Thus, the SEC has resolved to reopen the schools and kindergartens starting from September 1, while the operations of universities and higher education institutions to restart from October 5. However, the final decision regarding the extension of the heightened state of readiness and reopening of all levels of educational institutions will be made at tomorrow’s /July 29/ meeting of the Cabinet.

Minister of Education and Science L.Tsedevsuren said “A working group has been set up to study the possibilities on the reopening of schools and kindergartens, and various versions have been presented at the SEC’s today’s meeting. However, the Cabinet will make a decision in correspondence with the SEC proposal.”

“In the 2019-2020 school year, 75-day TV classes have been put on the broadcast. In the school year of 2020-2021, it is estimated that more than 305,000 children will be enrolled in kindergartens, 682,000 in schools, and 150,000 in universities. We have received guidelines from the SEC regarding the re-opening of all levels of educational institutions. The Ministry will hold a press conference following the Cabinet’s decision on this matter tomorrow.” added the Minister.

Chief of National Emergency Management Agency (NEMA) G.Ariunbuyan: “As of today, 289 confirmed COVID-19 cases have been recorded in Mongolia and 73.7 percent of the people diagnosed with the virus were the people who have been repatriated from Russia. Mongolia is still at high risk of the spread of the virus. Therefore, the SEC has made a proposal to extend the heightened state of readiness for another month until August 31.”

Following the meeting, Minister of Environment and Tourism D.Sarangerel informed that the SEC has also resolved to arrange a total of 14 charter flights to bring about 3,500 Mongolian nationals home from foreign countries only in August 2020. As of today, there are 12,205 people who have submitted their request to return home.”

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Mongolia, South Korea to pay more attention on workforce-related issues www.montsame.mn

Ulaanbaatar /MONTSAME/. On July 28, Minister of Labor and Social Protection A.Ariunzaya held a meeting with Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Mongolia Lee Yeo-hong to discuss measures being taken by the Government of Mongolia with aims of getting through the economic challenges caused by the COVID-19 pandemic, partnership opportunities within the framework of countermeasures during the pandemic, and the matter of social protection and employment of Mongolian citizens living in the South Korea.

Noting the necessity to accelerate people-to-people exchanges to further develop bilateral relations, Ambassador Lee Yeo-hong said, “As of currently, there are about 50 thousand Mongolian citizens living in the Republic of Korea. We will pay more attention to the improvement of the Mongolian citizens’ social protection and matters relating to the workforce being received from Mongolia through employment contracts. As the quota of workers is not being fully met, the issue of providing Mongolian citizens with job positions will be given more attention.”

Minister A.Ariunzaya said, “Partnership between our two countries mostly focuses on the workforce and health and labor areas. From the Mongolian side, we are currently working on digitalization of registration in not only the labor sector but also all other sectors. There is a high necessity of developing a joint database for this matter between the two countries. As a result, it will become accessible for citizens looking to work in the Republic of Korea to learn about job positions currently available. In terms of the people illegally staying in the country, there are some matters regarding the protection of their rights and interests that must come to a mutual understanding.”

In the scope of the Memorandum of Mutual Understanding on Dispatching and Receiving Labor Force in accordance with the Employment Permit System established between the Ministry of Labor and Social Protection of Mongolia and the Ministry of Employment and Labor of the Republic of Korea, 790-1,300 Mongolian nationals have annually worked in the country in the last seven years.

In 2006, a social protection agreement was established between the governments of the two countries, exempting Mongolian citizens from pension insurance contributions in the host country and allowing them to receive back the premium they paid.

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Mongolia plans second direct flight to Seattle www.news.mn

The US. Embassy in Ulaanbaatar has reported that the Mongolian Government plans to operate a diplomatic flight to Seattle, Washington on 3 August 2020. Seats are available on this flight for foreign citizens who wish to leave Mongolia.

In June, MIAT, Mongolian Airlines conducted the first-ever direct flight to the United States in order to rescue some of its nationals stranded there and with a special delivery of personal protective equipment. On that occasion, the protective clothing and equipment worth USD 1 million was delivered on a charter flight on 21 June; it was later delivered to native Americans, who have been suffering from the pandemic. On its return, the MIAT chartered flight repatriated over 250 Mongolian nationals back from Seattle.

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ADB pledges to provide additional USD 1.5 million aid to Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ With the aim of supporting Mongolia's fight against COVID-19 pandemic, the Asian Development Bank (ADB) has granted non-refundable aid of USD 1 million to Mongolia.

An additional aid of USD 1.5 million will be provided to Mongolia, confirms ADB Country Director for Mongolia Mr. Pavit Ramachandran during his meeting with Minister of Health T.Munkhsaikhan.

Mr. Pavit Ramachandran said that the aid will be allocated from the Asia-Pacific Disaster Response Fund to promote the activities of Mongolia's healthcare sector.

At the meeting, the Health Minister noted that more attention will be given on accelerating the transportation of medical equipment for a model hospital built in Songinokhairkhan District of Ulaanbaatar city and training of its workforce as well as on getting the hospital commissioned in a timely manner within the framework of the Mongolia-ADB joint Fourth Health Sector Development Project.

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Mining Mongolia: what potential does this land-locked country hold? www.mining-technology.com

Mongolia recently cancelled an executive order to fund the giant Tavan Tolgoi coal project through an international initial public offering (IPO), blaming political problems and unfavourable financial markets. Instead, the country is to self-fund the project, with expectations to finish it in three to four years. Such a situation is typical for the country that, though it is said to have billions of dollars’ worth of mineral wealth, has consistently struggled to capture international investors. We report.

The east Asian nation of Mongolia has been striving to tap into its potentially lucrative mining sector for years. According to its government, mineral resources in the region could be worth up to $1.3tn, yet a historically hostile investment climate, due to anti-investment laws and a volatile policy framework, has put pressure on the country’s economy and consistently caused foreign interest to dwindle.

The decision to self-fund transport links for the Tavan Tolgoi coal mine is just the latest in a long-running struggle to attract investors in an unforgiving economic landscape. But what other obstacles is mining facing in this country? And can anything be done to change this?

Tavan Tolgoi is Mongolia’s second largest mining investment following Rio Tinto’s copper-gold mine Oyu Tolgoi, and according to its website, the project has estimated coal reserves of around seven billion tonnes – more than a third of which is high-grade hard coking coal. Yet despite the deposit’s significant size, the recent IPO is only the latest in a series of false starts to take the mine to the next stage. Previous attempts fell through in 2011 and 2015, when the Mongolian parliament blocked an agreement with a group of foreign firms, citing high development costs.

Given the lack of existing transport infrastructure in the area, the latest IPO was intended to raise funds for a new railway to take the coal to China and other international markets. Securing this link was also hoped to lower transport costs and improve the country’s overall competitiveness, with Erdenes Tavan Tolgoi (the state-owned company that holds the license to the deposit) saying that mining capacity could be increased ‘between two- and three-fold’ with the new rail link.
Speaking with Byambajav Dalaibuyan, founder and advisor at the Mongolian Institute for Innovative Policies, he says that the necessity to rely on self-funding for such projects stems from internal political instability, and a lack of assertive action from the government. However, a recent parliamentary election is hoped to afford more stability on this front.

“Mongolia’s recent constitutional amendments should improve political stability and the incumbent MPP’s supermajority in parliament,” he says. “Prime Minister Khureksukh’s strong leadership will likely result in consistent policy on mining and investment. The question is whether the government will increase its involvement in managing mining projects or not.”

The need to turn away once more from public investment opportunities may have given the country bad press, yet the health of Mongolia’s mining sector does not appear to be in jeopardy.

Given Mongolia’s history as an agricultural society, there are some who have voiced fears over mining’s impact on this lifestyle – particularly in its use of land and water traditionally needed for pastoral purposes. A 2016 paper on the matter identified the impact on herder lifestyles as a particular area of concern, with around 30% of Mongolians currently living as herders and ‘relying on animal husbandry as their primary livelihood source’.

Yet speaking with Bruce Harvey, an expert in global community relations policy and practice at social enterprise group Sirolli, he says that many are in fact embracing the blossoming minerals sector.

“Mongolia is coming out of being dependent on pastoralism, which is a tough tough life,” he says. “A lot of Mongolian families have done absolutely everything possible to get their children off the land because it’s grim and it’s hard.”

According to Encyclopædia Britannica, Mongolia has rich deposits of coal and fluorite, as well as copper, gold, silver, and other metallic ores. The presence of such resources, in addition to a perceived necessity to keep up with changing times, led to rapid mining development in certain areas.

Erdenet (in Orkhon) and Oyu Tolgoi (in Umnugovi) are the two current primary mining regions, where industrialisation has had a proven beneficial economic effect. Both areas report significantly higher salaries, lower loan rates, and higher rates of education than other rural election districts, making the case for further industrialisation.

Yet while mining provides some economic and employment opportunities for those in the region, instances of malpractice still destabilise those remaining herders.

“Some miners are behaving very poorly and appropriating land without talking to the herders,” says Harvey. “These herders don’t have any ownership rights, they only have customary grazing rights. We also see a lot of informal mining for gold which can also destroy hundreds of acres of pastoral country. So there is certainly tension between this old and new way of life.”

Resolving such internal conflicts is thus a necessity in Mongolia’s mining development, particularly if it is to prove attractive to potential investors.

Room for improvement?
Speaking with Dalaibuyan, he says that the country’s mining sector needs to pay greater attention to sustainable practice, and to improving land rehabilitation following operation closures.

“Generally, environmental and social impact assessment and management in many mining areas is not adequate,” he says. “For instance, the impacts of coal mining and transportation from Tavan Tolgoi’s state-owned mines on the environment and local communities have not been assessed and managed adequately.”

Indeed, improving the relationship between miners and local communities has been highlighted elsewhere as a necessity to progressing the industry. A post by the University of British Columbia said that local communities ‘feel that they do not benefit’ from mining, and distributing revenue to local areas was identified as a key way of addressing this issue. This solution is one echoed by Dalaibuyan.

“By law, local host communities should receive a share of the revenue [that] mining companies paid to the government, but this has not been implemented,” he says. “Agreements between developers and local governments have been a good mechanism for building trust and having positive contributions to local development, but they are not widely used by companies.”

In addition, he says that good governance of state owned mining companies, comprehensive legal frameworks, and social and environmental safeguards are all avenues through which mining in the country could be improved.

While the recent IPO withdrawal may build the perception that Mongolia is an unappealing mining destination, the wealth of deposits and successes of projects such as Oye Tolgoi show the country has much to offer this sector. In cementing sustainable practice and transport links, Mongolia may be overcoming the final hurdle in eroding this outdated reputation.

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Room for Mongolia’s coal exports to grow but with caveat www.hellenicshippingnews.com

Mongolia’s coal exports to China could be poised for growth in the second half of 2020 after exports registered a significant 63% year-on-year decline over January-May, China’s customs data released late June showed.

However, the key driver would be the price competitiveness of Mongolian coals, relative to domestic Chinese and seaborne coking coal prices. The latter has succumbed to multi-year lows amid global demand destruction due to the coronavirus pandemic.

Market sources said the massive decline in Mongolia’s year-to-date coal exports to China boils down to two reasons. Firstly, the brief closure of Mongolia-China borders from February-March due to the Mongolian government’s efforts to contain the spread of the virus, and secondly, uncompetitiveness of Mongolian coal prices.

Just this week, between 1,000-2,000 trucks carrying unwashed Mongolia coals has been transported through Ganshuunsukhait/Ganqimaodu and Ceke, the gateway for Mongolia coking coal to China, industry sources said. This compares with 300-400 trucks in the second quarter of this year.

“I think we could expect the import volume of Mongolian coals to remain rangebound around 1 million mt per month. All imported coals are subjected to greater scrutiny as the Chinese authorities seek to control import volumes,” a Chinese trader said.

Market sources said that Mongolia’s coals are not explicitly subjected to import quotas, but there are other means to control the inflow of Mongolia coals, for example the slowdown at the borders for customs declaration and any slight change in the relationship between the governments of Mongolia and China may impact trade flows.

For Chinese end-users, however, price has always been a key determinant when purchasing coals.

“Currently, Mongolian coals have no price advantage compared with seaborne coking coals, which have fallen to multi-year lows. However, as the import quota wears thin and given the government’s effort at clamping imports, I think some demand may return to Mongolia coals,” a Northern China coke producer, who had increased his seaborne coking coal usage by 10% compared with 2019, said.

In response, Mongolian ex-mine coal prices have started to retreat by $5-$7/mt this week to around $54/mt, market sources said. Currently, unwashed Mongolia #5 coal is trading between Yuan 800-850/mt ($115-$122/mt) ex-washplant at Inner Mongolia.

Washed Mongolia #5 coals at Jingtang port are offered at around Yuan 1,250/mt DDP Tangshan, while Australian grade Premium Mid Vols are offered around the same price. Platts assessed PLV ex-stock Jingtang at Yuan 1,370/mt on July 17, equivalent to $168.67/mt CFR Jingtang.

A typical Mongolian #5 coal specification include 55% CSR, 27%VM, 9.5% TM and 8-10% Ash, while the specification of an Australian Premium Mid Vol like a Peak Downs North include 68% CSR, 22.4%VM, 9.7% TM and 10% Ash.

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Profits at China's industrial firms jump 11.5% in June www.reuters.com

BEIJING (Reuters) - Profits at China’s industrial firms in June rose 11.5% year-on-year to 666.55 billion yuan ($95.27 billion), the statistics bureau said on Monday, adding to signs the country’s economic recovery is gaining momentum.

The rebound followed a 6.0% gain in May, which marked the sector’s first monthly profit growth since November before the onset of the coronavirus crisis.

For January-June, industrial firms’ profits fell 12.8% from the same period a year earlier to 2.51 trillion yuan, better than a 19.3% slump in the first five months.

Liabilities at industrial firms rose 6.4% on an annual basis at end-June, versus 6.6% growth as of end-May.

After a record slump early in the year, China’s economy rebounded more than expected in the second quarter as virus lockdown measures ended and policymakers ramped up stimulus. But analysts warn the rebound is heavily reliant on state-led investment, while domestic and global demand remain weak.[ECILT/CN]

Reporting by Gabriel Crossley and Roxanne Liu; Editnig by Kim Coghill

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South Korea orders airlines to urgently check their Boeing 737 aircraft following FAA warning www.rt.com

South Korea’s Transport Ministry has told local carriers to carry out emergency inspections of Boeing 737s shortly after the US Federal Aviation Administration (FAA) revealed that the jets could be at risk of dual-engine failure.
In an emergency order released on Saturday, the Ministry of Land, Infrastructure and Transport (MOLIT) said that nearly 150 jets operated by nine companies are subject to the checks. The inspections will target older Boeing 737 models (not Max planes which are still grounded) that are parked for at least seven straight days, or have had less than 11 flights since being returned to service.

The precautionary measure comes on the heels of the FAA’s Emergency Airworthiness Directive that instructed air companies to inspect some stored Boeing 737 aircraft as the air check valves on the planes could become corroded. This may cause a complete loss of power in both engines without the ability to restart and may force pilots to land before reaching an airport.

Most of the planes affected by the FAA directive are in the US, where around 2,000 older Boeing single-aisle jets have remained grounded as the coronavirus pandemic all but erased travel demand. Meanwhile, India has also ordered three domestic operators which have Boeing 737s in their fleet – SpiceJet, Vistara, and Air India Express – to conduct inspections.

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