Events
Name | organizer | Where |
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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK | MBCCI | London UK Goodman LLC |
NEWS
Fresh air and social distancing: Mongolia reopens resorts www.news.mn
Under the instruction of Mongolian Prime Minister U.Khurelsukh, resorts both inside and beyond Ulaanbaatar reopened today (15 April). Quarantined since mid-February, residents in Ulaanbaatar are eager to go out in the fresh air at the weekend. The rationale of reopening the resorts is to prevent people gathering, especially in areas such as the Bogd Mountain and along the banks of the Tuul River at the weekends.
In addition, saunas, fitness and sports clubs will be opened in near future after ensuring the necessary sterilization has been carried out in accordance with new regulations.
Currently, a total of 4825 enterprises in the capital have been closed; these include all big malls, department stores, markets specialising on non-food items, hairdressers, beauty salons, shoe shops, photo studios, pawn-shops and car repairer centres. During the shut-down period, all enterprises are obliged to conduct cleaning and sanitization.
Face masks may be 'new normal' as U.S. prepares gradual reopening www.reuters.com
NEW YORK (Reuters) - The death toll from the coronavirus pandemic in the United States approached 31,000 on Wednesday as governors began cautiously preparing Americans for a post-virus life that would likely include public face coverings as the “new normal.”
The governors of Connecticut, Maryland, New York and Pennsylvania each issued orders or recommendations that residents wear face masks as they emerge from isolation in the coming weeks.
“If you are going to be in public and you cannot maintain social distancing, then have a mask, and put that mask on,” said New York Governor Andrew Cuomo, a Democrat.
Similar orders were imposed in New Jersey and Los Angeles last week and face coverings were recommended by Kansas Governor Laura Kelly on Tuesday.
California Governor Gavin Newsom has said residents across the nation’s most-populous state would likely be wearing masks in public for some time to come.
“We are going to be getting back to normal; it will be a new normal,” Connecticut Governor Ned Lamont said, echoing a phrase used by at least two of his fellow governors in recent days.
U.S. Midwest governors were also making plans together to restart their economies, said Jordan Abudayyeh, a spokeswoman for Illinois Governor J.B. Pritzker.
In Michigan, hundreds of cars flooded the streets around the state Capitol in Lansing on Wednesday to protest Democratic Governor Gretchen Whitmer’s stay-at-home orders, some of the strictest in the country.
Some protesters, in the demonstration organized by conservative and pro-President Donald Trump groups, left their cars to gather on the lawn in front of the Capitol building, many of them not wearing masks or practicing social distancing.
TOLL ON HEALTHCARE STAFF
As of Wednesday night, 30,885 people in the United States had died of COVID-19, the respiratory illness caused by the novel coronavirus, according to a Reuters tally.
That total includes more than 4,000 deaths newly attributed to the disease in New York City after health officials revised their counting methods to include “probable,” but unconfirmed, cases.
Healthcare workers have faced unique health threats while working on the front lines trying to tackle the pandemic. Reuters has identified more than 50 nurses, doctors and medical technicians who have died after being diagnosed with COVID-19 or showing symptoms of it. At least 16 were in New York state.
“The emergency room is like a war zone,” said Raj Aya, whose wife, Madhvi Aya - a physician’s assistant in Brooklyn - was one of the healthcare workers who died in New York.
As the outbreak begins to slow, political leaders have bickered over how and when to begin the process of unwinding unprecedented lockdowns that have badly damaged the economy and largely confined Americans to their homes.
Washington state Governor Jay Inslee told an afternoon news conference the largest obstacle to a return to normalcy was a shortage of coronavirus tests.
“We simply haven’t had enough test kits – they simply do not exist anywhere in the United States right now,” Inslee said, adding that the state had purchased about a million swabs, along with vials and test medium but they were just starting to arrive.
Trump, citing data suggesting that the peak of new infections had passed, said he would announce guidelines on Thursday for reopening the economy.
The sweeping closures of businesses have left millions of Americans unemployed and store owners struggling to pay rent.
Government data released on Wednesday showed that retail sales dropped by 8.7% in March, the biggest decline since tracking began in 1992. Consumer spending accounts for more than two-thirds of U.S. economic activity.
In addition, output at U.S. factories declined by the most since 1946 as the pandemic fractured supply chains.
“The economy is almost in free fall,” said Sung Won Sohn, a business economics professor at Loyola Marymount University in Los Angeles.
The United States, with the world’s third-largest population, has now suffered the greatest number of reported fatalities from the coronavirus, ahead of Italy and Spain.
The pathogen emerged last year in China.
Trump said on Wednesday his government was trying to determine whether the coronavirus emanated from a lab in Wuhan, China, and Secretary of State Mike Pompeo said Beijing “needs to come clean” on what they know. The official death toll released by the Chinese government stands at about 3,600.
The source of the virus remains a mystery. General Mark Milley, chairman of the Joint Chiefs of Staff, said on Tuesday that U.S. intelligence indicated that the coronavirus likely occurred naturally, as opposed to being created in a laboratory in China, but there was no certainty either way.
...World Bank Group plans $12m loan to Mongolia microfinance company www.asia.nikkei.com
HANOI -- The World Bank's private sector arm, International Finance Corporation, may extend a syndicated senior loan facility equal to $12 million in local currency to Mongolian microfinance company Transcapital.
The deal would be IFC's first investment using the Mongolian tugrik and its first business with a non-banking financial institution in the country, IFC said in a statement.
With the deal, Transcapital will be able to provide more access to finance for small enterprises and underserved individuals, especially women and people living outside the capital of Ulaanbaatar, IFC said.
It is also expected to help develop Mongolia's microfinance sector by allowing small institutions access to midterm funding in the local currency and by strengthening institutional capacity.
IFC said it will also help Transcapital obtain loans from international investors.
"Such funding is expected to be further curtailed given the impact of the ongoing COVID-19 crisis on global markets and on the Mongolian economy," the statement added.
Transcapital is the largest microfinancer in Mongolia, according to the World Bank unit.
The company is majority-owned by the Namsraijav family. Transcapital founder Zorigt Namsraijav and CEO Altanzul Zorigt hold 93% of the company.
Zorigt Namsraijav is also the founder of the Tuushin Hotel and Tuushin Group, operator of the country's first freight forwarder.
IFC says in another statement that it is involved in all key sectors of the local economy, from financial services and agribusiness to infrastructure and sustainable mining.
Since starting Mongolian operations in 1997, IFC has invested more than $470 million in the country.
IFC's other investment in the financial sector is Khan Bank, the country's largest lender. It recently extended a $70-million bond and debt package to the bank.
For the original story from DealStreetAsia, click here.
DealStreetAsia is a financial news site based in Singapore that focuses on corporate investment activity in Southeast Asia and India. Nikkei recently announced the acquisition of a majority stake in the company.
Time deposits in foreign currency increased by 27.2 percent www.montsame.mn
Ulaanbaatar/MONTSAME/. At the end of March 2020, the time deposit in domestic currency amounted to MNT 10.7 trillion, decreased by MNT 371.3 billion (3.4%) from the previous month, and by MNT 465.4 billion (4.2%) compared with the same period of the previous year.
The composition of the total time deposit in domestic currency shows that 88.1 percent (MNT 9.4 trillion) were individuals’ deposits, and 11.9 percent (MNT 1.3 trillion) were corporations’ deposits.
The time deposits in foreign currency amounted to MNT 3.7 trillion, increased by MNT 32.5 billion (0.9%) from the previous month, and by MNT 789.4 billion (27.2%) compared with the same period of the previous year.
Source: National Statistics Office
Individual loans make up 50.4 percent of total outstanding loans www.montsame.mn
Ulaanbaatar/MONTSAME/. At the end of March 2020, the total amount of outstanding loan to entities, enterprises and citizens amounted to MNT 17.1 trillion, decreased by MNT 200.9 billion (1.2%) from the previous month and by MNT 315.4 billion (1.8%) from the same period of the previous year. In the total outstanding loans, MNT 8.6 trillion (50.4%) was individual loans.
The performing loans reached MNT 14.2 trillion at the end of March 2020, decreased by MNT 311.9 billion (2.2%) from the previous month, and by MNT 519.7 billion (3.5%) from the same period of the previous year. The performing loans make up 82.6% of total loans, showing a decrease of 1.5 points from the same period of the previous year.
At the end of March 2020, the principals in arrears amounted to MNT 1.2 trillion, increased by MNT120.0 billion (11.6%) from the previous month, and by MNT 236.6 billion (25.9%) from the same period of the previous year. The principals in arrears make up 6.7% of total loans, showing an increase of 1.5 points from the same period of the previous year.
At the end of March 2020, the non-performing loans in the banking system amounted to MNT 1.8 trillion, decreased by MNT 9.1 billion (0.5%) from the previous month, and by MNT 32.3 billion (1.7%) from the previous year. The non-performing loans in the banking system make up to 10.7% of total loans, which was equal to the same period of the previous year.
By type of outstanding loans individual, 40.4 percent were mortgage loans, 26.6 percent -- salary loans, 14.7 percent -- small and medium enterprises loans, 11.6 percent -- consumer loans, 1.1 percent -- pension loan, and 5.6 percent -- other loans. Here, 75.2% of the total outstanding loans to individuals were from commercial banks.
Credit repayments to commercial banks by individuals reached MNT 1.3 trillion (2.5 times more), increased by MNT 584.9 (80.7%) compared to the same month of the previous month, and by MNT 780.2 (147.3%), compared to the same period of the previous year. For loan repayment, 2.0% (MNT 26.7 billion) of loan repayment, small and medium business loans of 9.3% (MNT 121.7 billion), consumer loans of 12.8% (MNT 167.2 billion), salary loans of 9.7% (MNT 127.4 billion) and 51.6% (MNT 676.3 billion) of pension loans and 14.6% (MNT 190.9 billion) was other loans.
Source: National Statistics Office
The number of traded securities decreased by 90.8 percent in March www.montsame.mn
Ulaanbaatar/MONTSAME/. In the first three months of 2020, securities worth of MNT 9.6 billion were traded at the national stock market, showing a decrease of MNT 58.0 billion (85.8%) compared to the same period of the previous year.
In March 2020, 10.4 million pieces of securities worth of MNT 3.4 billion were traded at the national stock market, showing a decrease of MNT 28.8 billion (89.5%), as well as the number of securities traded was decreased by 102.6 million (90.8%) pieces of securities compared to the same period of the previous year.
In March 2020, an average of indexes of the top 20 financial markets was 18208.2 units, decreased by 757.2 units from the previous month, and by 2691.5 units from the same period of 2019.
In March 2020, the total value of joint-stock companies operating at stock markets reached MNT 2.5 trillion, decreased by MNT 260.2 billion (9.5%) from the previous month, but increased by MNT 34.2 billion (1.4%) compared to the same period the previous year.
Source: National Statistics Office
New UB administration offices to open in Yarmag www.news.mn
The Ulaanbaatar municipal organisation offices are to move to the New Yarmag Centre in the Khan-Uul District of the capital. Consisting of three blocks, the new office complex will cover 58262 square meters; the total allocated area is to be 5.0 hectares. Construction is nearly complete.
According to the master plan, the Ulaanbaatar City Mayor’s office, the City Administration and Citizens’ Representative Council office will reside in the 10 story ‘A’ block, the sub-agencies of the UB City Administration in the 13 story ‘B’ block, and reception, a sports centre and all ‘one-window’ services in the three story ‘C’ block.
The municipal organisations provide 332 kinds of government services to an average 5700 individuals and enterprises every day. The decision to move the administration buildings out of the centre, was largely determined by the traffic congestion caused; it is estimated that nearly 200,000 cars need to enter Ulaanbaatar city centre daily causing traffic jams.
Copper price rally builds after China imports surprise www.mining.com
Copper jumped on Tuesday after a rebound in Chinese imports of the metal indicated the country’s manufacturing sector may be emerging faster than initially thought from the covid-19 slump.
Copper trading in New York rose by more than 1% to $2.3355 a pound ($5,150 a tonne) in early afternoon trade, a four-week high. Last month, the bellwether metal briefly traded below $2.00, levels last seen during the global financial crisis of 2008-2009.
Customs data showed China’s refined copper imports in March rose 13% from a year ago to just under 442,000 tonnes, as factories restarted following covid-19 restrictions.
China consumes more than half the world’s copper and last year cargoes totaled just shy of 5 million tonnes, down 6% from a record high of 5.3 million tonnes in 2018.
March imports of copper concentrate were the lowest since September at 1.78 million tonnes, but still up from the same month in 2019. For the first quarter, 2020 imports totaled 5.55 million tonnes, flat year on year.
Imports of concentrate in 2019 rose 11.6% to 22 million tonnes, the second annual record in a row after years of expanding smelter capacity turned the country into the largest producer in the world.
Argonaut Securities analyst Helen Lau told Reuters there may be supply issues for copper concentrates as mines in South America have closed to prevent the spread of covid-19:
“I think the market should start to shift its focus to supply tightening,” she added, and is expecting to see a decline in concentrate imports from May.
Impacts of COVID-19 are currently low, but uncertainty in Artisanal Gold Mining Communities remains high www.artisanalgold.org
Since Mongolia transitioned away from central planning in 1990, mining has come to play a dominant role in the economy. In 2016, the mineral sector accounted for 20.6% of Mongolia’s GDP, 80% of its exports, 30% of the national budget revenue, and more than 70% of the country’s foreign direct investment. Gold is the single largest mineral by value produced in Mongolia. In 2019, the Central Bank of Mongolia bought 15.2 tonnes of gold of which 48% or 7.4 tonnes were supplied by individuals including artisanal and small-scale miners[1].
Artisanal and small-scale gold mining (ASGM) operations are present in as many as fourteen of the country’s twenty-one provinces. Artisanal miners are estimated to number somewhere between 40,000 to 60,000 people, or 12%-20% of Mongolia’s rural labor force. A third of these miners are women.
Following the news of the outbreak of COVID-19 in neighbouring China, Mongolian authorities took immediate and rapid measures to prevent the virus from entering the country. The Mongolian government closed all border crossings and suspended universities, public institutions, and public events for nearly six weeks, starting very early in the last week of January 2020 and continuing until March 2, 2020. This has since been extended to April 30, 2020. On April 14, authorities announced that schools would remain closed until September 1, 2020.
Authorities credit these restrictions with keeping the number of COVID-19 infections in Mongolia quite low, though those numbers are now rising. With a population of around 3.2 million, Mongolia had as of April 14, 2020 reported 30 cases of COVID-19, an increase of 13 cases from the day before. Most of these cases were actually Mongolian citizens repatriated from abroad who had travelled through Russia on their way home. To date, there have been no deaths.
Had the virus not been kept out so effectively it might have hit artisanal mining communities particularly hard, as is evident in other countries (see Burkina Faso and the Philippines). Closing artisanal mining can be devastating because many artisanal miners in Mongolia earn income solely from their day-to-day labor and need to sell the gold they recover for sustenance. This leaves miners highly vulnerable to any shut down or interruptions in the gold supply chain. To date, thankfully, the impacts of COVID-19 remain minimal.
The gold supply chain is weakened but not broken
According to miners and gold traders, local gold prices in Mongolia have not yet been strongly affected. Mongolia has tightened its isolation measures twice – once for 10 days during the Lunar New Year celebrations, and a second time for a few days after March 10, when the first case of COVID-19 was reported. During these days, miners were prohibited from travelling to their mine sites but at all other times, mining has continued as normal. During February and March, aside from a minor increase in the prices of meat and rice in some areas, the supply and prices of food and common goods have also not altered drastically.
While no dramatic impact from COVID-19 has yet been observed, the closure of all educational institutions at all levels does risk harming women miners’ productivity. Women miners carry the double burden of taking care of their children and families as well as earning an income. With schools closed, female miners are faced with the choice of foregoing income to stay home and care for their children, or bringing their children with them to an active mine site with its risks.
A miner’s story
“During the first lockdown, we were quarantined in Tunkhel village, and a few miners who were working at the Bulag ASM site were also stranded as the area became inaccessible,” said B. Myagmarsuren, a miner in Selenge province. Myagmarsuren has been selling gold to a processing plant in Bornuur Soum in Tuv province for about ten years at a competitive price. As recently as April 8, this processing plant was buying gold at 130,000 MNT (about US$46.67) per gram, or about 88% or world price. As world gold prices have increased, the price offerred by this processing plant has actually increased to 140,000 MNT (US$ 50.31) or about 90.5% of world price.
Myagmarsuren added that if other preventive measures are announced, such as an extended in-country travel ban or lockdown, then “we would have to cease activities or work in a very limited scope, making us very vulnerable,” she said.
Miners believe that interrupting their ability to extract ore and sell gold would freeze the local economy. Gas stations and grocery stores are mainly dependent on the local gold market. For many communities, the artisanal gold sector is one of their most important sources of income.
Formalization of Mongolia’s artisanal gold mining sector an added challenge
Artisanal and small-scale gold mining in Mongolia remains a largely informal sector. The Artisanal Gold Council has been working since 2019 in partnership with the government authorities through its GEF-funded planetGOLD project towards providing improved conditions for formalization.
Hoping the current situation surrounding COVID-19 does not get worse, one miner said: “Cancelling the formalization process is another fear we have … it would drive artisanal miners into the black market and consider operating in illegal ways to extract gold.”
Should conditions surrounding the artisanal gold sector in Mongolia worsen due to COVID-19, formalized miners may be less vulnerable than the informal ones because they would have a higher chance of receiving government assistance. In an odd way, the current health crisis could also be an opportunity. Governments looking to mitigate the crisis might come through with loans or assistance programs for formalized miners and thereby create a lasting incentive with clear benefits for the informal parts of the sector to move forward with their own formalization efforts. Many mining communities continue to dream of a scenario in which the artisanal gold mining sector is regarded just like any other small to medium enterprise in the country and the COVID-19 crisis makes a good example of why it is important to realize that dream.
The AGC in Mongolia and planetGOLD
The AGC has been working on artisanal mining issues in Mongolia for several years is a proud participant in the country’s planetGOLD programme. PlanetGOLD is an innovative programme that aims to improve the lives of artisanal and small-scale gold miners by focusing on four core areas: technical solutions, access to finance, formalization, and knowledge creation/awareness raising.
...SEC: MNT 150,000 fine for not wearing face masks www.montsame.mn
Ulaanbaatar /MONTSAME/. At today’s press briefing by the State Emergency Commission (SEC), Colonel B.Uuganbayar, Deputy Chief of the National Emergency Management said that “Let’s wear face masks” public campaign is running across the nation to promote the use of protective face masks in prevention of the spread of the COVID-19 and residents could be considered to intentionally harm other people's health if caught not wearing face masks in public places and fined MNT 150,000 for under the Law on Infringement.
Even though it was not compulsory, wearing protective face masks in public has been commonplace since Mongolia imposed partial quarantine due to the COVID-19 pandemic back in late January. However, the SEC sees that the public calmed down too soon and some people started walking outside without one.
Despite the price rises, single use surgical masks or reusable cotton face masks are not that difficult to buy in Mongolia as they are just about sold in every pharmacy, retail store and supermarket.
Moreover, heads of each unit at khoroo of Ulaanbaatar city are granted with the duty of public police in order to maintain public order and safety and to enhance control on public compliance with mandatory face mask order.
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