In monetary terms, copper concentrate export was lowered by 68 percent, reaching USD 351.2 million. Even though the copper concentrate export has not been interrupted in relation with the novel coronavirus, a drop in price of copper on international market directly affected to export performance of Mongolia.

At yesterday’s meeting, the cabinet decided to submit the bills on the package measures to urgent parliament discussion. The measures include exemptions of social insurance contributions and corporate tax of private companies and entities as well as personal income tax for their employees, monthly incentives for employees of entities affected by the pandemic-related restrictions, low interest loans to cashmere companies, additional child benefit allowances and reduction in fuel price.

The exemption of social insurance contributions for 6 months applies to a total of 526,000 insured employees, and the corporate tax relief will benefit 105,000 entities, said the Finance Minister. “All entities are waived from penalties and fees levied on non-payment or late-filing of social insurance contributions and all types of taxes throughout the period of heightened state of alert.” said Khurelbaatar. The government will also submit a bill on customs duty and VAT exemptions on coronavirus test kits and medical supplies.

Minister Khurelbaatar informed that around 860,000 tax payers will be receiving VAT refunds for their purchases made in the first quarter of 2020 and 2,511,000 individuals and 486 entities will be receiving dividends of shares of the Erdenes Tavan Tolgoi.

He further emphasized that the government organizations have suspended all non-essential expenditures and costs since February 19, such as foreign and domestic business travels, conferences and procurements of unimportant goods and services.

The Minister again assured that no budget revisions will be made and investments from the public budget will not be cut to avoid leading to job losses. MNT 5.1 trillion, the total cost of the package of measures to support the economy will be made available both from foreign sources and state budget funds despite the fact that the state revenue for the first three quarters of 2020 is falling MNT 97.8 billion short of projections.

Headed by Deputy Prime Minister U.Enkhtuvshin, the Working Group consists of Secretary of the National Security Council A.Gansukh, Minister of Foreign Affairs D.Tsogtbaatar and Minister of Finance Ch.Khurelbaatar. The head of the working group has been tasked to organize activities of the working group immediately.

The initial forecast was based on an anticipated increase in production from Chile, China and Peru, but falling demand and ongoing disruption to mining activities due to lockdowns necessitated a revision to this forecast. However, GlobalData points out the ongoing disruptions will be offset by production from the Cobre Panama and Grasberg mines.

Total output for 2020 is now estimated at 21 million tonnes, slightly higher than the 20.6 million tonnes produced in 2019.

GlobalData senior mining analyst Vinneth Bajaj said production growth in China is forecast to be around 6%, down from the 9.6% forecasted before the virus outbreak, while production in Chile is forecast to grow by 0.3% and in Peru by 2% – compared with a 1.4% decline and 2.6% growth respectively in 2019. Lockdowns in China and Peru would reduce the output in two markets that currently account for around 40% of global supply.

There is also expected to be a slowdown in development of new projects, Bajaj added.

On the demand side, the construction sector, which accounts for 40-45% of the global demand, is likely to be heavily impacted by the covid-19 related restrictions and lockdowns.

Bajaj said that GlobalData’s latest expectations are for global construction output to grow by just 0.5% this year, down from its previous forecast of 3.1%.

“The direct impact on construction has been the halting of work – with labor unable to get to the construction sites – and disruption to supply chains with delays in the delivery of key materials and equipment, due to quarantines and travel restrictions,” Bajaj said.

Widespread postponement and cancellations of projects are also expected, he added.

Overall expectations are for copper demand to grow at 2.7% versus the 4.1% predicted before the outbreak. The lower growth rates are linked lower construction activity in China from mid-January 2020, although the situation is gradually improving with restrictions and lockdowns being eased, according to GlobaData.

However, GlobaData warned that there continues to be reduced activity globally as more countries moved to limit non-essential business operations.

“The current forecast assumes that the outbreak is contained across all major markets by the end of the second quarter – following which conditions would allow for a return to normalcy in terms of economic activity and freedom of movement in the second half of the year,” Bajaj said.

“There will be a lingering and potentially heavy impact on private investment due to the financial toll that is being inflicted upon businesses and investors across a range of sectors,” he added.

By resuming operation of Khangi border checkpoint, now coal export is being made through four border crossings – Zamyn-Uud, Khangi, Gashuunsukhait and Shiveekhuren.

According to a directive given by the Government, a working group led by Deputy Prime Minister U.Enkhtuvshin got acquainted with preparations of the border ports on the spot. The working group required the ports to decontaminate vehicles, to ensure so that the drivers, dispatchers and operators work in protective clothes and conduct shipment under the special rule.

“On March 28, three family members of the staff of the Turkish Embassy arrived by a flight of South Korea, but the two of them have been confirmed with Covid-19. Just after landing, they were immediately isolated and tested three days later. 10 persons who had close contact with them as well as persons who served them have been also placed in isolation for medical supervision and tests,” said Mr.Nyamkhuu.

All entities and companies, excluding state and local government entities, are exempt from social insurance contributions paid for pension insurance, benefit insurance and industrial accident and occupational disease insurance of their employees, who are Mongolian nationals. The decision takes effect from April 1, 2020 until October 1, 2020 and the insured will be automatically considered to have paid for social insurance contribution during this period.

Social insurance contributions can also be paid on a voluntary basis and the six-month exemption also applies to self-employed people.

Each insured employee of entities, which are forced to close down through no fault of their own, however, still keeping the employees on payrolls, will be paid by the government monthly incentive of MNT 200,000 for 3 months from April 1.

The cabinet members agreed that the bills should be submitted to the Speaker for parliamentary discussion in an urgent manner.

“Gas supplies to Chinese consumers have been resumed and are going as usual,” Gazprom’s press service said.

The Power of Siberia pipeline was launched in December, delivering 328 million cubic meters of gas to China. The 3,000-kilometer (1,864 miles) pipeline is set to bring 38 billion cubic meters of the blue fuel to the country by 2025.

Agreement on the gas supplies via the Power of Siberia pipeline was reached in 2014, with Gazprom and CNPC inking a 30-year contract. The project will deliver natural gas from the Russian regions of Yakutia and Irkutsk to domestic consumers in the Far East and then to China, which is a new foreign market for Gazprom.