To contact the reporter on this story: Terrence Edwards in Ulaanbaatar at tedwards100@bloomberg.net

In extreme wintry weather, known as "dzud," livestock will starve because they are unable to find nourishing food due to the snow cover.

Animal husbandry is the backbone of the country's national economy. Nearly 40 percent of the nomadic population depend on it for their livelihood.

Thousands of herders lose their animals to dzud almost every year, with more than 1 million animal fatalities back in 2016. Enditem

-Sales and prices of zinc have been decreasing since January. How did it affect the sector?

-In terms of the zinc price, it plunged off earlier this year and decreased by 35.5 percent compared to last year. And we assume that the price is stable now. Even though Chinese companies had returned back to regular operations, product sales and prices maintained the same level due to the COVID-19 outbreak around the world. In addition, Tsairt Mineral exported a total of 26,000 tons of zinc concentrate since January, which fell by 30 percent from a year ago.

-SEC extended the state of emergency for one more month. On this subject, is there any tangible difficulties in Tsairt Mineral’s operation?

-Generally, our company distributes ore from open-pit mining. This year we are planning to construct a side bracing with China subcontractors and work discussion and programs were designated. However, projected works were delayed due to the emergency extension. In line with the situation, ore mining operations have been suspended and disrupted either.

-Due to the COVID-19, the volume of mineral export relatively lower than usual and how it impacts on Mongolia’s mining industry as well as companies that have faced difficulties with saving job positions?

-Well, the direct effect of the pandemic is relatively delicate at this time, however, the situation will be tougher further. The mining industry is the fundamental of Mongolia’s economy and it is not the straightforward sector that shows their effect directly, the surplus is projected in long-term operations. What will happen in the future is still uncertain. Tsairt Mineral’s sales decreased by 30 percent and operations deteriorated by 20 percent during the emergency period. We are also trying to save job positions under the guidance of the GoM.

South Korea warned of a second wave of the new coronavirus as infections rebounded to a one-month high, while new infections accelerated in Germany.

Still, investors seemed determined to stay optimistic and MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS firmed 0.1%.

Japan's Nikkei .N225 added 0.7% and South Korean stocks .KS11 0.3%. E-Mini futures for the S&P 500 ESc1 opened soft but bounced as the morning wore on and was last up 0.3%.

Wall Street had rallied on Friday after the April payrolls report proved dire but not quite as awful as analysts’ worst fears.

“Just getting the worst jobs report in history out, is at the margins helpful for risky assets,” said Alan Ruskin, head of G10 FX at Deutsche Bank.

“Since late March there has been an extraordinary divergence between the real economy and financial risk, with the latter helped by unprecedented policy accommodation,” he added.

“Markets know the real economy data is awful. We are less sure of how long markets aided by policy, can defy the real economy, if the growth improvement is slow.”

The bond market certainly seems to think any recovery will be slow with two-year yields US2YT=RR hitting record lows at 0.105% and Fed fund futures <0#FF:> turning negative for the first time ever.

The rally in prices has come even as the U.S. Treasury plans to borrow trillions of dollars in the next few months to plug a gaping budget deficit.

Federal Reserve Chair Jerome Powell is due to give a key note speech on Wednesday and analysts suspect he will rule out taking rates negative, at least for now.

The decline in U.S. yields might have been a burden for the dollar but with rates everywhere near or less than zero, major currencies have been stuck in tight ranges.

The dollar was a shade firmer on the yen at 106.94 JPY= on Monday but well within the 105.97 to 109.37 band that has lasted since late March. The euro was a fraction softer at $1.0830 EUR= but above last week's low at $1.0765.

Against a basket of currencies, the dollar was idling at 99.837 =USD, sandwiched between support at 98.769 and resistance around 100.40.

In commodity markets, gold edged up 0.3% to $1,706 an ounce XAU=.

Oil prices opened about 1% lower as a persistent glut weighed on prices and the coronavirus pandemic eroded global oil demand, even as some governments began to ease lockdowns.

Brent crude LCOc1 futures lost 27 cents to $30.70 a barrel, while U.S. crude CLc1 fell 39 cents to $24.35.

Editing by Sam Holmes

Although most miners at this point, including Rio Tinto itself, have implemented protocols to avoid the spread of the disease at their mine sites, in this particular case the measures are of extreme importance given that Diavik is located in one of the most remote corners of the world — about 2100 kilometres from the North Pole in the Barren Lands of the Northwest Territories.

The region occupies an important portion of the country’s northwestern landmass and about 50% of its population is composed of Indigenous peoples who live in remote communities, have limited access to primary health care and rely on aeromedical evacuations for emergency care. However, as of May 10, 2020, the Northwest Territories had only five confirmed cases of covid-19 and none had been registered at Diavik.

Rio Tinto increases precautionary measures to prevent coronavirus outbreak at Canadian diamond mine
Diavik is the mine where the now legendary Foxfire diamond, a 187.6-carat rare stone and the largest uncut, gem-quality diamond ever mined in North America, was unearthed in 2015. (Image from Foxfirediamond.com)
“We are committed to doing everything we can to protect our people and communities, and this testing will add a further layer to the robust precautionary measures we already have in place at Diavik,” the mine’s chief operating officer, Richard Storrie, said in a media statement.

The world’s second-largest mining company is backing its efforts with the guidance of not-for-profit public health experts GuardRX, who have installed an on-site laboratory at Diavik to conduct a testing program for employees and contractors using nasopharyngeal swabs.

All personnel are tested on arrival at Diavik and before leaving to return home.

According to Rio, the program is being executed in collaboration with the Chief Public Health Officer of the Northwest Territories.

Prior to implementing this additional safety measure, the company had already put in place a protocol that included the obligation of completing 14 days of recorded self-monitoring before travelling to the mine, including temperature checks and physical distancing; medical screening before travelling to the mine through a hotline with physician assistants; health screening with temperature checks before boarding flights to the mine; and daily monitoring including temperature testing while at the mine.

They drilled 500-900 m deep wells in eight locations and coal samples were tested for methane gas composition. On April 22, 2020, the Cabinet authorized Erdenes Methane to conclude a production sharing agreement for coal seam methane gas sites at Tavantolgoi coal deposits, making it possible to commence exploration, reserves estimation, and feasibility studies.

On May 6, Director of the Mineral Resources and Petroleum Authority Kh.Kherlen and Executive Director of Erdees Methane D.Amar signed a production-sharing agreement for the exploration and exploitation of coal seam methane gas at Tavantolgoi’s XXXIII exploration site, where methane gas has been detected. The exploration site has estimated coal reserves of over 100 billion tons. Erdenes Mongol CEO P.Gankhuu expressed his hope that the exploitation of the mineral will play an important role in the country’s economic growth and reduction of air pollution.

It was also noted that Jade Methane coped with the difficulties faced in the first phase of the project alone without burdening the country’s budget, and carried out methane gas exploration at Tavantolgoi coal deposits.

Erdenes Methan is the first state owned company to be allowed to establish a production sharing agreement.

The factory has manufactured 3.5 million face masks for the state reserves since the year began. Currently, they are producing 150 thousand face masks per day with increased capacity to provide for the citizens’ necessity.

They have also begun to manufacture personal protective equipment for the medical professionals and officials working in risky conditions during the pandemic since February. During this period, the factory has provided a total of 85 thousand protective gear for the state reserves, and 50 thousand protective gear for the commissions received from the World Health Organization and the World Bank. The material used to produce the gear fully meets quality standards as it is purchased from a South Korean factory that exports to the U.S., highlighted the factory executives.

There are 41 imported cases of COVID-19 recorded in Mongolia, with 13 recoveries. During this time, no doctors and hospital staff have become infected, which proves the sufficient quality of the personal protective equipment, highlighted Minister of Foreign Affairs D.Tsogtbaatar. He then noted that he sees possible opportunities to export these types of products to other countries once the pandemic ends.

Deputy Chief of Mission at the U.S. Embassy in Mongolia Gregory May said, “It is a proud achievement for Mongolia to domestically produce protective gear that meets hygienic and quality standards during this difficult time of the global pandemic. As trade turnover between our two countries is lower than our expectations, we are interested in new opportunities to expand trades in the framework of the strategic partnership. After Mongolian cashmere products, I perceive that hospital gear can also be put on the U.S. market,” and noted that all possible opportunities to expand economic partnership with Mongolia is being sought regardless of geographical distance and transport difficulties between the two countries.

S.Munkh-Erdene has fulfilled his childhood dream for opening a sneakers shop. In the early 2000’s, there were very few people who wore sneakers. The young entrepreneur was encouraged after he sold three pairs of speakers in Mongolia as soon as he had ordered them from Japan. According to him, 10-20 percent of sneakers lovers want to buy the hottest and newest products selling worldwide while others like to search for old brands. ‘K50’ sells sneakers at prices ranging between MNT 99,000 and MNT 15,000,000, while having over 400 types of 2000 pairs in stock. The shop has been buying its original sneakers from the USA, Taiwan, South Korea, Russia, Japan and Sweden; however, some of these suppliers have closed amid coronavirus restrictions.

In addition to ‘K50’, there are other shops; namely Duud, Fan Shop, Tokyo Shop and Chicago which have been importing original sneakers into Mongolia since 2009.

This marks a milestone for Walt Disney and provides a glimpse of how it might recover from the pandemic that has forced it to shut parks in Asia, the United States, and France, as well as operations at its retail stores and cruise ships.

At the Shanghai park, Walt Disney has put in place measures, including social distancing, masks and temperature screenings for visitors and employees, and is for now keeping visitor numbers “far below” 24,000 people, or 30% of the daily capacity, a level requested by the Chinese government.

Tickets for the earliest days of Shanghai Disneyland’s re-opening sold out rapidly on Friday.

“We hope that today’s reopening can serve as a beacon of light across the globe, providing hope and inspiration for everyone, and can demonstrate that we can overcome any challenge together,” Joe Schott, president and general manager of Shanghai Disney Resort, said at a ceremony.

Prior to the park’s reopening, roughly thirty annual pass holders in Mickey Mouse outfits waited outside its gates where, to enforce social distancing, yellow squares had been drawn on the ground for people queuing to stand in.

One of them, who gave her English name as Kaira, said prior to the outbreak she typically visited the Disneyland once every week. “It’s relaxing here, it’s kind of magical,” she said.

Disney executives estimated last week the global closures will cost the company $1.4 billion in profits.

Reporting by Josh Horwitz; Editing by Himani Sarkar