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

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China confusion leaves scrap metal stranded overseas www.reuters.com

China is dragging its feet in releasing new codes governing high-grade copper and aluminum scrap imports, leaving scrap metal firms abroad confused and without a clear way into their key market.

Top metals consumer China has carried out an environmental campaign against foreign garbage in recent years, progressively restricting scrap inflows and planning a ban on all solid waste imports by the end of 2020.

The State Administration for Market Regulation (SAMR) published new standards for “recycled” copper and aluminum in January after the metals industry successfully lobbied for high-grade scrap to be reclassified as a resource instead of waste – meaning it will not be affected by the ban.

But only days before the new system is due to take effect on July 1, China has not released the customs codes for the materials, leaving foreign and Chinese firms abroad unable to send cargoes and denying China’s manufacturing sector a key source of supply.

“The current situation – without the necessary coordination of all regulators and procedures yet fully established – is a confused fiasco,” said Michael Lion, former Asia chairman of Sims Metal Management.

The reclassification gives some solace to scrap traders after a long-running decline in Chinese imports. Arrivals of copper scrap into China plunged 38.4% and those of aluminum scrap fell 10.9% last year after the country further tightened restrictions on scrap metal from July 2019.

Fabricators use copper scrap to make copper products like wire rods and copper smelters use it to make refined copper.

Aluminum scrap, often in the form of used beverage cans, can be melted down into brick-shaped aluminum ingots, which are then processed into aluminum products used in everything from aeroplanes to cars.

Nowhere to go
Manson Zeng, who runs the CRA Recycling International trading platform in China, estimates there is currently 50-100% more scrap metal than usual sitting in yards in countries such as Malaysia, Thailand, Japan, the Philippines and Indonesia, ready for easy shipment to China from July 1.

The companies which prepared in advance for the new Chinese system – by bringing scrap to nearby countries and ensuring it meets the new standards – will either have to remain patient or find another market to sell to.

Budding suppliers and buyers of the new-standard material must first wait for the codes to come out, said Wang Jiwei, secretary general of the China Nonferrous Metals Industry Association’s recycling branch (CMRA). Without the codes, the material cannot be transported or clear customs.

“Otherwise you will not be able to sign a contract,” he said.

It remained unclear who would be releasing the codes.

When contacted by Reuters, China’s General Administration of Customs referred questions to the Ministry of Ecology and Environment, which said customs and the SAMR were taking the lead on the new system.

The SAMR did not respond to a faxed request for comment.

Insufficient quotas
While qualified companies in China can still import scrap material through quotas periodically issued by the environment ministry, Lion said these would be insufficient to meet lofty Chinese demand particularly for copper scrap.

Firms are having to come up with alternatives. Two aluminum scrap suppliers with stock in Malaysia said they could melt their scrap into secondary ingots which can still get into China, with one saying he could sell domestically instead.

CRA’s Zeng expects the new system to be postponed until the end of the year.

(Reporting by Tom Daly; Additional reporting by Mai Nguyen in Singapore and Shanghai Newsroom; Editing by Ana Nicolaci da Costa)

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Looted Mongolian dinosaur fossils return home with charter flight from USA www.news.mn

A MIAT Mongolian Airlines plane has conducted the first-ever flight from the capital, Ulaanbaatar to the United States, triggering plans for a regular service when the world returns to normal. The flight to Seattle International Airport was a special government-charter with three important tasks: firstly, to provide medical equipment to help the Navajo Nation fight coronavirus, which from the beginning has been successfully managed in Mongolia, with zero domestic cases; secondly, to rescue some 255 nationals who have been stranded in the US since the pandemic struck and ran wild, and, thirdly, to brings home some much older residents – the remains of dinosaurs who roamed the Gobi over 65 million years ago.

Mongolia is famous for its dinosaur remains – not just among palaeontologists, but also with international smugglers; some of the most valuable remains have, as we shall see, ended up belonging to the rich and famous in Beverly Hills.

The fossils, of creatures such as the carnivorous Tarbosaurus Bataar, a relative of the Tyrannosaurus Rex, originally lived in what is now the vast Gobi desert, but in the Cretaceous was a verdant land with rivers and lakes, with different weather patterns – at the time, India had not smashed into the Eurasian Plate pushing up the Himalayas. The area is rich in dinosaur remains and is known by palaeontologists around the world. It was there in the 1920s and 1930s that American explorer Roy Chapman Andrews, known as a prototype Indiana Jones, found the first fossilised dinosaur eggs, and with it proof that dinosaurs were reptiles.

The fossils packed in to the hold of the Mongolian Airlines plane, including two fossilised skulls of Tarbosaurus Bataar, represented the latest success in a decade-long effort to locate and repatriate artefacts.

The non-profit Institute for the Study of Mongolian Dinosaurs has been working together with both the government of Mongolia and officials through the the US Department of Homeland Security’s Immigration and Customs Enforcement (ICE) responsible for the investigation of stolen items.

In 2007, Hollywood actor Nicolas Cage acquired the complete skull of a Tarbosaurus Bataar at a public sale in Beverly Hills gallery – this is one of the two on the plane. It is reported that he paid USD 276,000, outbidding Leonardo DiCaprio for the fearsome object. Little did he suspect that the skull had found its way to the City of Angles by a very murky route.

In June 2014, Mr Cage was contacted by US Homeland Security who informed him that the skull may be the property of Mongolia, which had criminalised the export of dinosaur fossils in 1924. The US authorities have made it clear that the actor did nothing wrong. In 2015, he voluntarily handed over the fossil to US officials for eventual return to Mongolia.

The I.M.Chait Gallery, where Nicholas Cage obtained the skull appears to have unwittingly obtained various treasures from convicted Florida-based palaeontologist Eric Prokopi, who has been described as a “one-man black market in prehistoric fossils.”

Prokopi is connected with an even more elaborate auction, namely that of a whole Tarbosaurus Bataar skeleton in New York city for USD 1 million in 2012. Mongolia’s then Minister of Culture, Sports and Tourism, Ts.Oyungerel with the support of President Ts.Elbegdorj filed an injunction and the Prokopi auction was rendered void. After intense negotiations, the complete skeleton of Tarbosaurus Bataar was returned to Mongolia along with other items illegally acquired by Eric Prokopi. It was an important national event and the day of the dinosaur’s return, 18 May 2013 was declared Mongolian Dinosaur Day. Initially, the complete remains, thought to be a juvenile measuring 2.4 metres in hight and 7.3 metres in length, were displayed in a special pavilion on Ulaanbaatar’s Sukhbaatar Square, before being moved to the new dinosaur museum on Victory Square along with other priceless fossils – including dinosaur eggs – which had been housed in the old National History Museum.

It is hoped that the latest repatriated remains, including Mr Cage’s former skull will soon be on public display in Ulaanbaatar.

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Members of new parliament receive identification cards www.montsame.mn

June 29, 75 candidates who received the most votes in each of 29 constituencies in the 2020 parliamentary election of Mongolia received their identification card of a Member of the State Great Khural from the General Election Commission. A member-elect from Selenge aimag, J.Erdenebat, who was the Prime Minister of Mongolia in 2016-2017, was unable to receive his card in person as he is currently being investigated under custody.

The credentials of the new parliament - State Great Khural will be verified once the new parliament members take an oath at the first plenary session of the parliament, which shall convene before July 24 upon the decree to be issued by the President in accordance with the Law on State Great Khural. It is not known when President Kh.Battulga will set the date of the first session of the newly-established parliament.

As stated in the same law, the parliament session shall be chaired by the oldest member of the parliament until the Speaker of the Parliament is appointed, and the new parliament’s first session is expected to be chaired by a 66-year old Kh.Badelkhan, re-elected from Bayan-Ulgii aimag.

Furthermore, Chair of the GEC Ch.Sodnomtseren today made a briefing on the manual recanvass or ‘control tally of votes cast’ conducted on 164 polling stations in 12 constituencies during the last weekend.

The preliminary results of the 2020 legislative election held on June 24 suggested that the ruling Mongolian People’s Party gained 62 seats, main opposition Democratic Party won 11 seats, and new coalitions ‘Our Coalition’ and ‘Right Person Electorate Coalition’ each had one seat along with one independent candidate who assumed a seat in the 76-seat parliament.

However, many independent candidates and coalitions that ran for the election made claims on vote fraud and unreliability of voting machines and had sought recounts. President Kh.Battulga also suggested the GEC conduct a recanvass on the results, double-checking the ballots to ensure the accuracy of the results.

As introduced by Mr. Sodnomtseren today, recanvasses have been made on 164 polling stations in Uvurkhangai, Umnugobi, Dornod and Darkhan-Uul aimags and six districts of Ulaanbaatar city, involving 2447 public service officers and 645 observers from political parties, coalitions and independents, requiring additional cost worth MNT 71.3 million. Chair of the GEC Sodnomtseren also commented, “We found no discrepancy between the votes counted in manual recanvass and voting machines.”

The same day, the General Election Commission has submitted the results and report of the country’s 8th legislative election to the Parliament Speaker G.Zandanshatar.

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Yongusil 100: Mongolia and the Korean Security Crisis www.sinonk.com

For Mongolia, the Korean Peninsula – lying at a distance of one thousand miles – has implications that resonate with Mongolian foreign policy across Eurasia.1) Specifically, Mongolia’s balanced ties between the two Koreas has prompted Seoul, Tokyo and Washington to support Mongolia’s so-called third neighbor policy, which is designed to mitigate Ulaanbaatar’s vulnerabilities toward China and Russia.

A degree of diplomatic balance between Pyongyang and Seoul has even allowed Mongolia to execute a constructive role in Korean security during the 21st century. It was around the time of the second North Korean nuclear crisis (circa 2003) that Ulaanbaatar first began to see itself as a potential mediator between the two Koreas. Mongolia’s deliberate neutrality makes it stand out in an otherwise tensions-ridden Northeast Asia, and this has helped build trust with Pyongyang. The US has encouraged Mongolia to keep its working ties with Pyongyang intact so as to utilize Ulaanbaatar as both a channel of communication and a source of information regarding North Korea — albeit that, contrary to Mongolian wishes, Washington and its partners have generally been unwilling to extend a mediator role to Mongolia.

To be sure, the simple fact of distance from the Korean Peninsula does not mean that Mongolia would be immune from the effects of a hot conflict on and around the Korean Peninsula, were one to erupt. At the heart of Ulaanbaatar’s position on Korean security, in addition to the inter-related concepts of diplomatic equilibrium and the “third neighbor policy”, is the employment of a preventive diplomacy strategy. Mongolia’s “preventive diplomacy” entails creating a situation in which disputes between its neighbors do not have time to arise. This is not altruism. Mongolia rightly sees relative stability as crucial for the preservation of its own sovereignty.

Therefore, the Korean Peninsula is a critical piece of geography for Mongolia, distant as it is from the Mongolian periphery. Ulaanbaatar’s interests vis-à-vis the Peninsula depend in large part on Mongolia’s ability to remain absolutely neutral between the Koreas themselves, as well as the central actors in the saga of Korean security: China, Japan, Russia, and the United States. The successful execution of this multifaceted balancing act in turn helps Ulaanbaatar preserve itself.

The deciding factor in the success or failure of Mongolia’s delicate Korea strategy is the extent to which the other players involved value Mongolia’s neutrality. Geographic distance and a relative lack of influence in Northeast Asia as a whole need not result in Mongolian insignificance. But the task for Ulaanbaatar is to maintain its relevance.

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Mongolia reports one new COVID-19 case www.xinhuanet.com

June 29 (Xinhua) -- Mongolia's National Center for Communicable Disease (NCCD) on Monday confirmed one new COVID-19 case, bringing the total to 220.

"A total of 196 tests for COVID-19 were conducted across Mongolia yesterday and one of them was positive," Dulmaa Nyamkhuu, head of the NCCD, said at a daily press conference.

The latest case is one of the over 170 Mongolian nationals who returned home from Kazakhstan on June 10, said Nyamkhuu.

All the 220 cases are imported ones, mostly from Russia, according to the NCCD. Among the confirmed cases, 175 patients have recovered so far.

A French national tested positive for the virus on March 10, becoming the first case in Mongolia. So far, no local transmissions or deaths have been reported in the country. Enditem

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CCP Moves Against Mongolian Language in Inner Mongolia www.tibet.net

Classes in Mongolian language in areas of Inner Mongolia Autonomous Region were suspended because of the COVID-19 epidemic. Now, students are told they will never resume, and all teaching will be in Chinese. This is happening in high schools in and around Tongliao City, and is expected to extend to Tongliao Nationalities University and to other areas of the so-called Autonomous Region.

The move should be seen as part of a larger campaign to eradicate Mongolian identity, language, and culture from what the CCP calls “Inner Mongolia,” and most Mongols prefer to call “Southern Mongolia,” believing that “Inner Mongolia” was historically a name created by Chinese colonialism. The main strategy, which was started in Imperial times, is to organize the massive immigration of Han Chinese into the region, where Mongols are now a minority. Some five million Mongols represent 20% of the “Autonomous Region” population. After the horrors of the Cultural Revolution, where at least 30,000 (but according to some, as many as 100,000) of them were killed, they were promised that their cultural identity, religions (Buddhism and traditional Mongolian beliefs), and language will be respected. There were 110,000 primary schools using the Mongolian language in 1980, but more than 80% of them have now been closed, and replaced by schools where children are taught in Chinese.

The Mongolian language spoken and written in the region is a cultural monument. It is still written in the traditional characters, while in independent Mongolia, Mongolian is written in Cyrillic characters, a reminiscence of when the country was a satellite state of the Soviet Union.

There are, also, social and economic problems. Many Mongols in the Autonomous Region are herders, and they often protest when the government grab their pasture land in the name of “ecology.” Often, ecological pretexts disguise the CCP’s intention to seize the land for mining, in a country rich of natural resources. For example, on the morning of June 1, 2020, more than 400 Mongolian herders from the sum (township) Bayan-uul, in Sonid Left Banner (a banner is an administrative unit equivalent to a county) marched toward Lindong , the banner’s capital, after the CCP had grabbed their land in the name of ecology.

Nearly 200 were arrested, and many were pepper sprayed and beaten before being detained. Activists who support these protests also go to jail. On June 5, 2020, the People’s Court of Heshigten Banner of Southern (Inner) Mongolia sentenced two of these activists, Tsogjil and Haschuluu, to eight months and four months in jail respectively. Tsogjil is also an author and social media host. He was previously arrested in 2019 for protesting the detention of Sechenbaatar, a well-known poet and folklorist who struggled to keep alive Mongolian culture in the Autonomous Region. Also in 2019, Lhamjab A. Borjigin was arrested after he published a book collecting testimonies of victims of the Cultural Revolution in the region.

Although less well-known internationally than its counterparts in Xinjiang and Tibet, what happens in Inner (or Southern) Mongolia is also a cultural genocide, the CCP’s attempt to destroy an old and proud culture in the name of “sinicization.” The U.S.-based Southern Mongolian Human Rights Information Center regularly publishes valuable information about the ongoing ethnocide. It should not be left alone.

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Trade and Development Bank, Ulaanbaatar City Bank have merged www.montsame.mn

On June 29, it was announced that out of 13 banks operating in the banking sector of Mongolia, Trade and Development Bank (TDB), the oldest bank with 30 years of history and Ulaanbaatar City Bank (UBCB), another systemically important bank with 21 years of history are officially merging.

The Bank of Mongolia approved the merger on June 23, 2020. All assets, liabilities, equities and branches of UBCB will be consolidated into TDB, taking effect from June 29. TDB will further serve all UBCB clients starting from this day.

The statement issued on the website of the TDB reads “Ulaanbaatar City Bank, named after the capital of the country, has been operating successfully for 21 years since 1999, professionally and swiftly providing comprehensive banking and financial services to its customers. The bank has been proudly making the list of the TOP-100 enterprises, announced by the MNCCI every year, and is one of the six systemically important banks in the banking system, as defined by the Bank of Mongolia.”

The statement continues “Merger of large banks is a common practice in the countries with highly developed banking and financial market, and are often carried out to with objectives to scale up their operations, expand their market reach and increase their value. The merger enables banks to improve their efficiency, reduce costs and enable them to offer more flexible terms of products and service to individual and corporate customers by contributing to cut interest rates on the market and promoting inclusion as well as supports them to develop a customer-centric business model.”

“As a result of the merger of two systemic banks, TDB strengthened its capacity by 400 experienced employees, 33 branches and settlement centers, and over 1,900 merchants. Strengthened human resources, expanded customer base and adequacy of bank branches significantly contribute to achieving our strategic goal of closely serving our customers.”

“Moreover, the merger increases the total assets, shareholders’ equity of TDB and improves profitability, liquidity and other key financial ratios and measures. We believe that we will continue to meaningfully contribute to the prosperity of the country through current and future business activities, values we create for our customers, as well as through innovative products and services we will introduce to the market.”

TDB

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Boeing set for critical 737 Max flight tests www.bbc.com

Boeing's bid to see its 737 Max return to the skies faces a pivotal week with flight safety tests expected to begin.

Pilots and technical experts from regulators and the company are understood to be planning three days of tests, possibly starting on Monday.

Boeing's best-selling aircraft was grounded last year after two crashes killed all 346 people on the flights.

The tests are a milestone for Boeing, but even if they go well, months of further safety checks will be needed.

Aviation regulators grounded the 737 Max about 15 months ago following two crashes - a Lion Air flight and an Ethiopian Airlines flight - within five months of each other.

The ruling triggered a financial crisis at the 103-year-old company, sparked lawsuits from victims' families, and raised questions about how Boeing and the US regulator, the Federal Aviation Administration (FAA), conducted their safety approval process.

Investigators blamed faults in the flight control system, which Boeing has been overhauling for months in order to meet new safety demands.

A 737 Max loaded with test equipment will run through a series of mid-air scenarios near Boeing's manufacturing base at Seattle.

According to Reuters, which first reported the news, pilots will intentionally trigger the reprogrammed stall-prevention software known as MCAS, blamed for both crashes.

The BBC understands that both the FAA, which is leading the testing, and Boeing, are hopeful that the process will get under way on Monday, barring last minutes hitches.

The FAA confirmed on Sunday in an email to the US Congress that it had approved key certification test flights for the grounded 737 Max.

The email noted that the "FAA has not made a decision on return to service" and has a number of additional steps to go, according to Reuters reports.

Test flights had been planned for last year, but investigations uncovered an array of new safety issues that have delayed a return to service.

It could take weeks to analyse data from the test flights. But even if this process is successful, further flying, training of pilots, and clearance from European and Canadian regulators will be needed.

The European Aviation Safety Agency has maintained that clearance by the FAA will not automatically mean a clearance to fly in Europe.

Norwegian Air, TUI, and Icelandair are among airlines using the 737 Max in Europe, while other carriers have the aircraft on order.

Boeing and the FAA declined to comment.

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Agreement reached on a preferred long-term power supply for Oyu Tolgoi www.montsame.mn

Ulaanbaatar /MONTSAME/. Rio Tinto, who owns 66 percent in Oyu Tolgoi through its 51-percent-owned Turquoise Hill Resources on June 28 issued a press release stating that Rio Tinto, Turquoise Hill and the Government of Mongolia have reached an agreement on the preferred domestic power solution for Oyu Tolgoi that paves the way for the Government to fund and construct a State Owned Power Plant at Tavan Tolgoi.

The agreement, which is a revision of the Power Source Framework Agreement (PSFA) signed in 2018, states that the Parties will work towards finalizing a Power Purchase Agreement by the end of March 2021.

In addition, the amended PSFA sets a proposed timetable for development, with construction of the coal-fired power plant set to begin no later than 1 July 2021, and commissioning within four years thereafter.

Oyu Tolgoi currently uses imported power and both the Government of Mongolia and Oyu Tolgoi have committed to extending the current arrangement to ensure continued stable power is supplied to the mine and underground project until the State Owned Power Plant is commissioned and is able to supply stable, reliable and continuous power.

Arnaud Soirat, Copper & Diamonds Chief Executive, said, “This agreement provides a potential pathway to securing a domestic power supply for the Oyu Tolgoi mine and underground project for the benefit of all shareholders and the wider community. We look forward to working with the Government of Mongolia to progress the solution.”

“This announcement is authorized for release to the market by Rio Tinto’s Group Company Secretary.” - Rio Tinto

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ADB: Sustained Reforms Crucial for Mongolia's Long-Term Growth www.montsame.mn

Ulaanbaatar /MONTSAME/. Mongolia can build a more inclusive and sustainable economy by improving macroeconomic management, strengthening human development, increasing international trade, and diversifying the economy by building on the country’s existing knowledge and expertise, including in the mining sector, says a new Asian Development Bank (ADB) Country Diagnostic Study.

The study, Mongolia’s Economic Prospects: Resource-Rich and Landlocked Between Two Giants, presents an in-depth analysis of Mongolia’s economic opportunities and challenges, including the country’s wealth in natural resources as well as its unique geographical location, bordered by two of the world’s largest economies, the People’s Republic of China (PRC) and the Russian Federation.

“Mongolia has seen major economic progress in the last 30 years and it has realistic aspirations to continue this development,” said ADB Country Director for Mongolia Pavit Ramachandran. “While challenges such as the coronavirus disease (COVID-19) pandemic presents near-term obstacles, Mongolia has the right tools and opportunities to achieve long-term economic growth. This study provides a menu of policy options for the country to consider as it continues its remarkable economic journey.”

With the COVID-19 pandemic, the country’s gross domestic product (GDP) decelerated by 10.7% in the first quarter of 2020 as weaker global economic conditions combined with internal restrictions on economic activity dragged down growth. In a supplement of its Asian Development Outlook 2020, ADB is projecting a 1.9% contraction of Mongolia’s economy this year, before recovering to 4.7% growth in 2021.

Despite an almost threefold increase in Mongolia’s GDP per capita since 2000, the country’s economic growth has suffered from a series of boom and bust cycles over the last few years. The study notes that macroeconomic policy should aim to limit the volatility induced by fluctuating commodity prices, while focusing on a steady fiscal regime to entice foreign investors and creating a permanent savings mechanism.

International trade and long-term regional cooperation and integration should also be a priority for Mongolia given its unique geographic location. This will aid in the government’s goal of economic diversification, with international trade and tourism bringing in more resources, revenue, and technology to the country.

Last, the study notes that a focus on infrastructure with strong private sector participation—particularly in transport, communications, and energy—is key to Mongolia’s long-term economic growth. With the COVID-19 pandemic and the country’s transition to a more services-based economy, policies focusing on strengthening the health care system and ensuring the development of strong human capital through quality education and skills development will also be key.

Asian Development Bank

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