Tourism revenue increases by 10.2 percent www.montsame.mn

Ulaanbaatar /MONTSAME/. Mongolia received a total of 529.360 tourists in 2018 and it increased by 9 percent or 47.902 in 2019, according to Ulaanbaatar City Tourism Department.

Mining sector equals one-quarter of GDP www.zgm.mn

According to the preliminary results of 2019, the mining sector accounts for 25 percent of Mongolia’s GDP, 72 percent of industrial production and 90 percent of exports. The statistics were presented during the monthly press conference of the Ministry of Mining and Heavy Industry, Transparent and Responsible Mining. The report reveals that the mineral industry constitutes 24.5 percent of the total budget revenue in 2019. During the period, the budget revenue totaled around MNT 11.9 trillion, with an increase of MNT 1.9 trillion or 18.6 percent from a prior year. Of these, revenue from the mineral sector reached MNT 2.9 trillion, which is increased by MNT 590.7 billion or 25.4 percent compared to the same period of last year. In 2019, 50.83 million tons of coal, 1.26 million tons of copper concentrate, 16.25 tons of gold, 5,300 tons of molybdenum concentrate, 156,150 tons of fluorite ore, 47,490 tons of fluorspar concentrate, 8.57 million tons of iron ore, 3.39 million tons of iron ore concentrate and 83,090 tons of zinc concentrate were produced in the mining and extractive industry of Mongolia. The report also found that the total production of the mining and extractive sectors amounted to MNT 12.47 trillion, increasing by MNT 1.24 trillion or 11.1 percent since 2018. Coal exploration grew markedly, reaching MNT 1.15 trillion last year. The mining industry makes up 71.8 percent of the total output of industrial production.

Five copper price trends to watch in 2020 www.mining.com

As we look to 2020, copper is faced with a finely balanced market. For now, positive investor sentiment around copper’s fundamentals is supporting higher prices, Metals and mining research and consultancy group Wood Mackenzie said in a research note Wednesday.

Stronger demand growth is underpinned by new semis capacity, while mine supply growth will be reliant on additions from both projects and existing mines.

Meanwhile, the recent approval of new copper scrap re-categorisation standards in China could yet determine the mix of copper raw material imports into the country and influence global scrap dynamics, said Wood Mackenzie.

These fundamental factors, in addition to the strong geopolitical headwinds across the global landscape, will no doubt lead to another year of volatile prices. In the absence of a major economic downturn, copper’s supportive fundamentals should keep price risk skewed to the upside, said the firm.

Eleni Joannides, Wood Mackenzie Principal Analyst, sees five key themes to watch in the global copper market in 2020.

Copper prices – fundamentals vs sentiment
Policies and politics that will drive copper demand
The global scrap dynamics will shift – response to changes in Chinese scrap policies on imports
Lower TC/RCs could push some smelters below breakeven
Mine supply looks set to return to growth
“During 2019, copper prices were largely determined by US-China trade-related news rather than copper’s own fundamentals. It was not until the US-China Phase 1 trade deal was agreed in December that there was a shift in sentiment,” Joannides said.

“As we look to 2020, the risk is that wider factors will once again influence price. The geopolitical issues that have surfaced since the start of the year could derail the rally that emerged in December 2019. On the other hand, further progress in resolving trade disputes will likely encourage a faster than anticipated recovery in demand and underpin prices,” Joannides added.

“This year, we are forecasting that positive mine supply growth of 1.3% — after disruptions — will be offset by a recovery in demand. The resulting draw down in total cathode stocks by year-end should be positive for prices.”

Wood Mackenzie said differing incentive approaches to renewable technologies will lead to varied impacts on copper demand in 2020.

“Contributions to copper demand from electromobility and renewable energy will be a long-term story. However, in 2020, electric vehicles (EVs), wind and solar projects will see a range of incentives accelerate, stop and reverse. In some cases, this will be a drag on the development of projects. In other cases, however, a possible front-loading of projects ahead of further subsidy removal could emerge.

“The Chinese government recently announced that it has no plans to further reduce the subsidy on EVs in 2020. We believe the decision to keep the subsidy will help to support EV sales, production and related copper demand in 2020.

“This change in approach to EVs in China is in line with developments in other regions. In Europe, the likes of Germany and Norway continue to ramp up EV-related incentives, supporting copper consumption in the region. In consultation with German automakers, the so-called “Environmental Bonus” incentive has been raised to a maximum of €6,000 for battery EVs priced up to €40,000. In the US, some States have extended subsidy offerings, while others are introducing similar incentive programs.

“In the renewable markets, the Chinese government plans to end the subsidy on newly approved onshore and offshore wind projects in 2021 and 2022, respectively. In the US, tax incentives for new solar power installations have started to wind down this year and the subsidy on wind power generation will also begin to decrease next year. As a result, we believe that demand for copper will be brought forward in both China and the US in 2020, as developers rush to install new capacity ahead of these changes,” said Joannides.

A shift in global scrap dynamics could occur in response to changes in Chinese scrap policies, Wood Mackenzie warns.

“The Chinese government recently approved new standards, beginning in July 2020, that will re-categorise some copper scrap as “renewable copper material,” Joannides said.

“The new threshold for copper content of imported copper scrap has been set at 97% and 56% for brass scrap. This threshold is noticeably above the average copper content for copper and brass scrap imported in 2019. Nevertheless, the copper industry in China has shown optimism towards scrap imports this year.

“Given that most of the examination will be done by visual inspection at ports, it is widely believed that implementation of the new standards will leave some room for scrap slightly below the threshold to be imported. However, the risk is that if Chinese Customs implement the new standards strictly, according to the guidelines, scrap processors will need to make additional efforts to meet the requirements. This means that China will be not be able to source as much scrap from the external market this year.

“In addition to the changes in scrap-related policies in China, rising costs to upgrade scrap ahead of export to China will likely incentivise more secondary consumption capability to be built in scrap generating and/or processing countries. We have already seen early examples of this around the world. It remains to be seen if this will be the start of a trend, which would not only have implications for scrap volumes available for China but also the requirement for concentrate, blister/anode and copper cathode,” said Joannides.

Partly driven by new project delivery, mine supply is expected to return to growth. Wood Mackenzie’s base case is for mine supply to reach 21Mt in 2020 – after applying a 5% disruption allowance. Notably, approximately 40% of the additional production capability will be a result of a net increase in output at operating mines.

“Projects that started in 2019 will support higher production as they ramp-up to full capability in the year ahead. Similarly, the increase of brownfield expansions and extensions will contribute a significant amount of supply growth. New projects that are scheduled to start during 2020 will also play their part,” added Joannides.

“Glencore’s Mutanda mine in the DR Congo will be the largest planned decline in production in 2020. This accounts for 100 kt less mined copper supply year-on year.”

As with previous years, Wood Mackenzie expects a considerable amount of copper supply to be lost from unexpected disruptions. In addition to unforeseen operational and weather-related issues, social and political factors are central to supply risk.

“Approximately 40% of total disruptions recorded for 2019 were located at mines in the African Copperbelt. The environment in both cases appears more stable now, however. The initial upheaval brought about by tax and mining code changes in Zambia and DR Congo, respectively, has subsided as the mining industry comes to terms with changes to the operating environment.

“The more immediate issue facing Zambia now is power supply, with water levels in the country’s hydro-electric dams critically low,” said Joannides.

Lower treatment charges (TC) and refining charges (RC) could push some copper smelters below breakeven, according to Wood Mackenzie.

“A tight concentrate market in 2019 forced TC/RCs to their lowest level in six years. The 2020 benchmark was set at $62/t & 6.2c/lb – a 23% decrease on the 2019 benchmark and the fifth year of falling treatment charges.

“Our latest concentrate balance implies a deficit for 2020, with the addition of primary smelter capability outpacing growth in mine supply.

Joannides said with a lower annual TC/RC benchmark and very weak acid prices, some smelters in China are precariously close to breakeven. Therefore, smelter economics will have a bearing on the amount of available capacity in 2020.

“Outside China, aside from a continuing strike at Asarco’s Hayden smelter in the US, smelter stoppages are limited to planned maintenance so far. Smelting capacity in Chile is reaching full capability following t

Mongolia's capital launches cleanup campaign ahead of Lunar New Year www.xinhuanet.com

Mongolia's capital Ulan Bator has launched a campaign to clean up the environment ahead of the traditional "White Moon" festival or the Lunar New Year, the press office of the municipal government said Wednesday.

China finds oil in Asia’s deepest onshore well, nearly 9,000 meters underground www.rt.com

China National Petroleum Corporation (CNPC) has found crude oil and natural gas in the deepest well drilled in Asia’s onshore, striking hydrocarbons in a pre-salt layer for the first time in China.
The discovery was made in the Tarim oilfield in China’s northwestern region of Xinjiang in a well deep 8,882 meters (29,140 feet), which was first drilled in July last year.

Defense, Foreign and Finance ministers retain their positions in new Russian government www.rt.com

President Vladimir Putin has approved a new Russian government after the surprise resignation of the previous cabinet last week. While there was a significant reshuffle, the defense, foreign and finance ministers kept their posts.
"The new government is a well-balanced one, although it went through a major reshuffle," Putin said during a meeting with the new cabinet.

Both Sergey Lavrov and Sergey Shoigu are political heavyweights and among the most trusted political figures in Russia, trailing only behind President Putin himself when it comes to popularity with the public. Anton Siluanov has been Russia's finance minister since 2011.

A career diplomat with decades of experience in international relations, Lavrov served as Russia’s envoy to the UN for ten years before taking the helm at the Foreign Ministry in 2004.

He led Russian diplomacy through turbulent periods on the international stage and has been instrumental in building Moscow's reputation as an influential global power in recent years.

Shoigu, meanwhile, is credited with strengthening and modernizing Russia's Armed Forces through a set of ambitious reforms to increase combat readiness and spearheading a massive rearmament program to equip forces with cutting-edge weapons.

Siluanov has worked in the Russian Finance Ministry since the early 1990s heading several ministerial departments, including on macroeconomic policy and banks, as well as on budgetary policy. He held the post of deputy finance minister for several years before becoming finance minister in 2011.

They are joining new Prime Minister Mikhail Mishustin along with nine other members of the previous cabinet and nine freshmen ministers.

The new prime minister and new government members are all technocrats and professionals with rich management experience, said head of the CIS strategic development center Aleksandr Gusev, adding that the ones who have stayed on are also effective government officials. He believes the new government has all of the necessary background to work effectively to improve the quality of life in Russia, something the previous government didn't succeed in doing.

The abrupt resignation of the government last week after Putin's state of the union speech was an earthquake for Russian politics. Former Prime Minister Dmitry Medvedev announced last week that the entire government would resign in a surprise statement shortly after Putin's address.

What was an annual routine event turned into one of the most significant moments in Russia’s modern political history as Putin unexpectedly proposed major amendments to the nation’s constitution.

The proposed reform envisages broader powers for the State Duma – Russia's lower house of parliament – including giving it the ability to choose the PM and form the government.

Putin also proposed that Russia should abide by international law only to the extent that it does not restrict Russians' rights and freedoms and does not contradict Russia's own constitution.

Mongolia exports 6.5 mln barrels of crude oil in 2019 www.xinhuanet.com

Mongolia exported a total of 6.5 million barrels of crude oil in 2019, the country's Ministry of Mining and Heavy Industry said Tuesday.

Moody's affirms Mongolia's B3 rating and stable outlook www.moodys.com

Singapore, January 21, 2020 -- Moody's Investors Service ("Moody's") has today affirmed the Government of Mongolia's ("Mongolia") B3 long-term issuer ratings and senior unsecured ratings and the (P)B3 senior unsecured MTN program rating; and maintained the stable outlook. The short-term issuer ratings are affirmed at Not Prime.

The B3 rating incorporates Mongolia's still weak albeit improving debt and fiscal metrics and weak institutions and governance, balanced by strong growth potential.

The stable outlook indicates balanced risks in the near term, including greater financial buffers than seen during past episodes of financing stress against still significant external and government liquidity risks. Moody's expects foreign exchange reserves to be sufficient to meet external debt obligations and growth to remain relatively strong, notwithstanding a projected moderation. From 2021, the public sector debt refinancing needs will increase significantly. The stable outlook assumes that the government will be able to refinance its external debt obligations at affordable costs as they begin to come due.

Mongolia's country ceilings remain unchanged: the local-currency bond and deposit ceilings remain at Ba2, the long-term foreign currency deposit ceiling at Caa1, and the long-term foreign currency bond ceiling at B1; all short-term foreign currency ceilings also remain unchanged at Not Prime.

RATINGS RATIONALE

RATIONALE FOR B3 RATING

TIGHTER FISCAL POLICY TO KEEP DEBT, DEFICT METRICS IN-LINE WITH PEERS, ALBEIT AT WEAK LEVELS

Moody's expects government debt to continue to moderate to around 57.5% in 2020 and stabilize around these levels, from close to 80% of GDP in 2015-16, as sustained nominal GDP growth offsets ongoing fiscal deficits. This is in line with the B3-median of 57.2% of GDP.

Significant tightening since fiscal deficits spiked in 2016, has resulted in a marked narrowing in both deficits and the debt burden both through an improvement in revenue collection and sharp spending cuts. Together, these measures have contributed to a nearly balanced fiscal position, with deficits at less than 1% of GDP in 2019 and 2018, significantly narrower than deficits of over 13% and 5% of GDP in 2016 and 2017, respectively.

Moody's expects the budget deficit to widen in the next few years, to 4.8% and 6.4% of GDP in 2020 and 2021 respectively, as moderate commodity prices and uncertainty around copper production dampen revenue growth, while spending accelerates, in particular before elections due in June 2020.

However, the fiscal tightening of the last few years has changed the debt dynamics in a favourable direction, by contributing to lower the cost of debt well below nominal GDP growth. Unless fiscal slippage is much larger than Moody's currently expects, the projected deficits are consistent with a stable debt burden.

WEAK INSTITUTIONS AND GOVERNANCE ARE AN INHERENT RATING CONTRAINT

While fiscal and monetary policy tightening has improved Mongolia's fiscal buffers, the sovereign's institutions and governance remain weak, a significant rating constraint. The implementation of reforms that would reduce Mongolia's vulnerability to commodity price cycles has been partial and, at this stage, is not broadly embedded in the conduct of macroeconomic policy.

A key source of uncertainty to the future reform trajectory comes from the Extended Fund Facility with the IMF that began in May 2017. While the program has identified and anchored reforms thus far, delays to the disbursal of funding following the sixth review originally due in September 2018 raise the possibility of the program lapsing without achieving full completion. The review has been held up by issues surrounding the recapitalization of banks, following the 2018 asset quality review that identified capital shortfalls.

Beside the potential pressure on access to financing explained below, there is no clarity about the framework for further reform that the government would pursue in the absence of an IMF program.

Ahead of the parliamentary elections in June, government spending will likely increase as has occurred in the past, with no certainty as yet about the capacity of the elected government to rein in spending later or about the direction of fiscal and monetary policy in general. For instance, the government's budget targets for 2020 factor in a significant increase in spending, which will result in a wider fiscal deficit.

The electoral cycle could also precipitate changes to the Oyu Tolgoi mining agreement, which a government-affiliated parliamentary working group is currently calling for.

GROWTH WILL REMAIN ROBUST DESPITE SOFTENING COMMODITY PRICES

Strong growth will mitigate the risks related to persistent fiscal and institutional weaknesses.

Real GDP growth was over 6.0% in 2019 and Moody's projects robust growth to continue at 5.5% in 2020, one of the fastest rates among B3-rated sovereigns.

Moody's growth forecasts take into consideration moderate commodity prices, slower demand from China, and shifting demand and supply dynamics for Mongolia's key mining exports - coal and copper. Although demand for coal will soften as China moves towards greater reliance on renewable sources of energy, nearly all of Mongolia's coal exports to China are coking coal, used primarily for steel, the Chinese demand for which has remained relatively stable. Meanwhile, demand for copper will be supported by global moves toward battery electric vehicles.

A key driver of Mongolia's longer-term growth trajectory remains prospects from the Oyu Tolgoi mining project. Challenges to the second phase implementation, including time and cost overruns, and potential changes to the original mining agreement present downside risks to the growth outlook. Moody's macroeconomic projections are premised on the assumption that production will continue notwithstanding some occasional delays.

Medium-term growth will also be supported by key infrastructure projects, particularly in the transport sector -- for instance, railways connecting the largest coal mine, Tavan Tolgoi, to the Chinese border -- that will reduce trade bottlenecks and improve efficiency. Similarly, the construction of new roads and a power and coal washing plant will raise productivity. The government also has plans to revamp and upgrade major ports, improving capacity and access.

RATIONALE FOR THE STABLE OUTLOOK

BUFFERS TO REMAIN ADEQUATE TO MANAGE UPCOMING EXTERNAL PAYMENTS

The financial buffers rebuilt over the past two years offer some time to the government to manage external vulnerabilities, which drive event risk for Mongolia. As external debt repayments rise, Mongolia's credit profile will be increasingly susceptible to a potential change in access to financing from international and bilateral creditors and financial markets.

Foreign exchange reserves increased to close to $4 billion (including gold) at the end of 2019 from $1 billion in February 2017. Though reserve accretion has slowed over the past year due to delays in donor financing, a narrower trade surplus, and sales by the central bank to limit exchange rate pressures, reserves will remain adequate to meet upcoming external obligations if bilateral support and access to financial markets at moderate costs are maintained.

In the near term, Moody's assessment that reserves will remain adequate is based on its projections of a broadly stable current account deficit and ongoing financing from bilateral creditors, while taking into account ongoing delays to disbursements by the IMF as well as a possible disruption to funding from some other multilateral institutions. In addition, Moody's expects the central bank's -- the Bank of Mongolia - swap line with the People's Bank of China, which expires in August 2020, will be renewed, given the two countries' continued bilateral relations.

Debt maturities will start to mount in 2021 and spike in 2023, when bonds worth $1.3 billion mature. The stable outlook assumes that bilateral funding remains available and anchors financial market confidence to allow Mongolia to refinance its debt at affordable costs. Disruptions to access to funding and investors' appetite for Mongolian assets would raise external vulnerability risks and weigh on the credit profile.

ENVIRONMENTAL SOCIAL AND GOVERNANCE CONSIDERATIONS

Environmental considerations are material for Mongolia, since moves towards renewable energy and electric vehicles will likely drive strong demand for some of its mineral products, particularly copper, significantly lifting its growth potential. However, Mongolia is also exposed to environmental risk. Agriculture, which is also an important sector for the Mongolian economy, is negatively affected by land degradation, which hurts the livestock industry and increases its vulnerability to extreme weather conditions and climate change.

Social considerations are not material for Mongolia. While income levels are low on average and the distribution of proceeds from the mining sector is uneven, macroeconomic measures of income inequality such as the Gini coefficient do not signal significant exposure.

Governance considerations are material to Mongolia's credit profile and primarily relate to low credibility of fiscal targets, the absence of a track record of adherence of major reforms, and past experience of pro-cyclical policies linked to electoral and commodity price cycles. High levels of corruption and factious politics also present broad governance risks.

FACTORS THAT COULD LEAD TO AN UPGRADE

Upward rating pressure would likely develop if sustained and effective implementation of structural reforms pointed to a significant increase in Mongolia's financial buffers and increased the likelihood that even in an adverse commodity price environment, macroeconomic volatility and fiscal pro-cyclicality would be reduced.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Increasing risks to Mongolia's access to financing at affordable costs ahead of significant external debt maturities would put downward pressure on the rating.

Indications that the improvement in fiscal and debt metrics of the last few years was likely to reverse with a possible significant renewed increase in the debt burden would also weigh on Mongolia's credit profile.

GDP per capita (PPP basis, US$): 13,451 (2018 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 6.9% (2018 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 8.1% (2018 Actual)

Gen. Gov. Financial Balance/GDP: 0.9% (2018 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -16.9% (2018 Actual) (also known as External Balance)

External debt/GDP: 220.0% (2018 Actual)

Economic resiliency: b1

Default history: No default events (on bonds or loans) have been recorded since 1983.

On 16 January 2020, a rating committee was called to discuss the rating of the Mongolia, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutions and governance strength, have not materially changed. The issuer's governance and/or management, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The issuer has become less susceptible to event risks.

The principal methodology used in these ratings was Sovereign Ratings Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

REGULATORY DISCLOSURES

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Anushka Shah
Vice President - Senior Analyst
Sovereign Risk Group
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
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Marie Diron
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
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Singapore 48623
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JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Over 216 thousand households express requests to purchase apartment www.montsame.mn

Ulaanbaatar /MONTSAME/ The ‘Vision-2050’ is a policy document, which was formulated by a working group comprising of 1500 people, including scholars, experts and state secretaries of 13 ministries, heads of some government agencies, authorities of universities and representatives of non-government organizations. According to the Prime Minister's order No: 52 dated April 30, 2019, the working group analyzed development stages of the past 30 years of Mongolia and formulated the policy document that will define long and mid-term development policy until 2050. We are presenting 9 fundamental goals of the development policy in detail.

Mining sector contribution to budget reaches MNT 2.6 trillion www.montsame.mn

Ulaanbaatar /MONTSAME/. The Ministry of Mining and Heavy Industry held today, January 21, a monthly press briefing ‘Transparent and Accountable Mining’. At the conference, Minister of Mining and Heavy Industry D.Sumiyabazar delivered a report on the statistical review of the mining sector for 2019.

By a preliminary performance of 2019, the mining industry accounts for 25 percent of the country’s GDP, 72 percent of agricultural production and 90 percent of total exports.

The report shows that the mineral industry makes up 24.5 percent of the total revenue of 2019 state budget. The budget revenue amounted to around MNT 11.9 trillion, with an increase of MNT 1.9 trillion or 18.6 since the previous year’s revenue performance.

In the state budget revenue of 2019, revenues contributed by the mineral industry equaled to MNT 2.9 trillion, which grew by 25.4 percent or MNT 590.7 billion since the previous year’s performance. The revenues from mineral industry include:

MNT 2.6 trillion from mining sector (21.96%),

MNT 232.3 billion from oil industry (1.95%),

MNT 36.9 billion as royalty payment (0.31%),

MNT 29.3 billion as other revenues (0.25%)

In 2019, a total of MNT 2,621.56 billion was paid to the state budget as mining and extractive industry’s taxes and payments, which include:

Gold MNT 116.84 billion,

Coal MNT 1,210.57 billion,

Zinc MNT 66.27 billion,

Copper MNT 1,090.12 billion,

Iron MNT 25.42 billion,

Fluorspar MNT 34.82 billion,

Other MNT 77.53 billion.

The mining sector’s revenue to the state budget rose by MNT 570.05 billion 27.8 percent compared to that of the previous annual performance report.

The report also showed that the total production of the mining and extractive sectors amounted to MNT 12.47 trillion, showing an increase of MNT 1.24 trillion or 11.1 percent since the previous year. A significant amount of increase was noticed in the coal exploration, which totaled MNT 1.15 trillion or increased by 28.6 percent in 2019. The mining industry takes up 71.8 percent of the total output volume of agricultural industry.

Last year, 50.83 million tons of coal, 1.26 million tons of copper concentrate, 16.25 tons of gold, 5.30 thousand tons of molybdenum concentrate, 156.15 thousand tons of fluorite ore, 47.49 thousand tons of fluorspar concentrate, 8.57 million tons of iron ore, 3.39 million tons of iron ore concentrate and 83.09 thousand tons of zinc concentrate were produced in the Mongolia’s mining and extractive industry.

Compared to 2018 report on the mining industry's performance, production of coal, iron ore and fluorite ore increased whereas production of copper concentrate, gold, molybdenum concentrate, iron ore concentrate, fluorspar concentrate, and zinc concentrate each declined moderately. Also, gold and fluorspar concentrate production dropped by 4.40 tons or 21.3 percent and 33.24 thousand tons or 41.2 percent respectively.

Total sales of the agricultural industry in 2019 cost MNT 20.09 trillion and grew by MNT 1.79 trillion or 9.8 percent. The sales of mining and extractive industry reached MNT 13.66 trillion, with growth of MNT 970 billion, and MNT 11.32 trillion of which (82.9 percent) are sold to foreign markets abroad, the report shows.