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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‘Our Creations in Space’ : launch planned from UB! www.news.mn

This year, Mongolia is marking the 380th anniversary of the foundation of its capital Ulaanbaatar. To mark this important event, a competition entitled ‘Our Creations in Space’ has been announced for school children aged 12-15. The youngsters can compete with any works that they think the work should be sent to space. The event is co-organised by Governor Office of the capital city and Ulaanbaatar City Tourism Department in collaboration with Mongolian Aerospace Research and Science Association (MARSA).

On 29 October, the works selected by children will be sent to 38 thousand meters above the centre of Ulaanbaatar with a special high-altitude balloon. The balloon will also carry the official crest of Ulaanbaatar and the names of 380 randomly selected citizens of the capital. The balloon will also have some proper work to do including collecting information on air quality above the capital and performing other scientific task.

Ulaanbaatar cwill be the second capital in the world to launch a high-altitude balloon from its central square. A joint team from the Mongol Koosen College of Technology and Japan’s Chiba Institute of Technology will launch the balloon.

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China now produces 56% of the world’s steel www.mining.com

Data released on Monday showed Chinese steel output rebounded in August rose 9.3% from the same month a year before to 87.3m tonnes; not far off the record set in May this year, according to the World Steel Association.

Chinese furnaces now produce 56% of the world’s steel despite pollution-related output cuts mandated by Beijing over the winter months and a slowdown in construction activity.

This is due to blast furnaces in the rest of the world being idled, notably in Japan where August saw a 7.8% drop in crude steel leaving mills. US output was flat while Europe marked a 2.2% decline. Production in the rest of the world outside China is now down for three straight months.

Benchmark iron ore prices were flat on Friday with the Chinese import price of 62% Fe content fines exchanging hands for $90.91 per dry metric tonne, according to Fastmarkets MB, after coming close to triple digits a fortnight ago.

Iron ore remains in a bull market for 2019, up 25% on the back of supply disruptions from top miner Vale following a deadly dam burst in January.

The Australian export price of metallurgical coal (FOB hard coking coal Fastmarkets MB) used in steelmaking eased again on Friday to $121.50 a tonne. That’s down almost $70 a tonne compared to the start of the year amid oversupply and import restrictions imposed by Beijing.

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The United States Should Help Mongolia Stand Up to China www.foreignpolicy.com

It would be hard to find a country that has more at stake in the outcome of U.S.-China strategic competition than Mongolia—or that better demonstrates why that competition is not a lost cause. With only some 3 million citizens occupying a large territory rich in natural resources sharing a long land border with under-resourced China’s population of 1.4 billion, Mongolia’s security situation is “intense,” in the words of the commander of its armed forces. But Mongolians will not bend to Chinese domination.

Mongolia is bent on resisting Chinese economic, cultural, and political domination. Tour guides, statues, currency, museums, and beer brands all remind the Mongolian people of their national narrative: sovereignty established in the 13th century by Genghis Khan, whose descendants would go on to conquer China—not the other way around. History aside, Mongolians point to democracy as their greatest source of national pride, according to government polls I reviewed with permission. (Mongolian scholars try to connect the two by pointing out that Genghis Khan was an advocate of freedom of religion and trade and that nomads are inclined to personal freedoms.) And many Mongolians are deeply suspicious of communist China after having suffered under seven decades of Soviet rule until the country’s transition to democracy 30 years ago. It is no wonder that then-U.S. National Security Advisor John Bolton and Defense Secretary Mark Esper have both seem to have felt at home there during recent visits.
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The enormous geopolitical pressure from China is not immediately apparent when one walks the streets of Ulaanbaatar, with its combination of gritty Soviet-era architecture, sparkling new high-rises, and the occasional yurt. There are few of the large advertisements for the Chinese telecommunications giants Huawei or ZTE one finds in Eastern Europe or other targets of Beijing’s Belt and Road Initiative development scheme. Indeed, the government has limited participation in Belt and Road, and one finds few supporters of the initiative among the public, even though Mongolia desperately needs new roads and infrastructure. Mongolians’ consensus seems to hold that Chinese development funds are worth avoiding, because China would use state-owned enterprises and debt traps to swallow Mongolia’s land and freedom. A refrain I heard more than once over the summer, some of which I spent in Mongolia, runs: “First they will take Hong Kong, then Taiwan—and then they will come for Mongolia.” Scholars and officials in Ulaanbaatar say they can point to numerous Chinese government speeches and documents that set 2049, the 100th anniversary of the Chinese Revolution, as the deadline for absorption of their country.

As a landlocked nation, Mongolia depends on China to buy more than 90 percent of its exports, and Beijing has used that leverage to punish Ulaanbaatar in the past.As a landlocked nation, Mongolia depends on China to buy more than 90 percent of its exports, and Beijing has used that leverage to punish Ulaanbaatar in the past. A majority of Mongolians are Buddhists in the Tibetan tradition, and temples and some restaurants are adorned with shrines to the Dalai Lama. When the Tibetan spiritual leader visited the country in 2016, Beijing blocked trade and forced the government to agree there would be no future visits. Now, Beijing is quietly threatening further sanctions if Mongolia does not turn to the Chinese Communist Party’s eventual choice of the next Dalai Lama—something devout Buddhists in the country would never accept. When Mongolian President Khaltmaagiin Battulga announced a strategic partnership with the United States during a visit to Washington in July, Chinese media warned that Mongolia would inevitably fall under Chinese suzerainty, and a handful of political leaders in Ulaanbaatar unexpectedly condemned the government’s enhanced friendship with Washington—criticism that many in the Mongolian government believe was funded by Beijing in a pattern of political interference seen elsewhere in Asia.
It would be hard to envision a scenario in which the United States could defend Mongolia militarily, but the fact is that Washington has a stake in Mongolia’s sovereign democracy surviving Chinese pressure, along with the tools to help. Mongolians call the United States their “third neighbor,” and the sentiment is heartfelt if at times a bit desperate. Esper’s August visit was a symbolic demonstration that the Trump administration will not let its friends be bullied with impunity. Legislation called the “Mongolia Third Neighbor Trade Act” is pending in on Capitol Hill. It’s intended to reduce U.S. tariffs on cashmere products from Mongolia, which would increase the country’s economic independence from China, where almost 90 percent of Mongolian cashmere is now shipped for export. Mongolia’s government hopes that U.S. strategic competition with Russia will not push Russian President Vladimir Putin into Chinese President Xi Jinping’s arms at Mongolia’s expense, and senior officials argue that there is room for the Trump administration to punish Putin for election interference without completely closing off some level of strategic dialogue on the future of East Asia, where Russia’s depopulation puts Moscow in the same position as Ulaanbaatar in regard to Beijing.

Mongolia, like so many other small nations on China’s periphery, needs the United States to lead. Credit is due to Bolton and Esper for standing by the country, but if President Donald Trump ever follows through on his stated desire to save money by withdrawing U.S. troops from the Korean Peninsula, the jarring shift in geopolitics on the continent would be catastrophic for Mongolia. Similarly, the lack of a coherent U.S. multilateral trade strategy with Asia and Europe leaves Beijing with far greater latitude to pursue predatory economic policies that hurt countries whether they are in the Trans-Pacific Partnership trade deal or not. And more robust and consistent U.S. support for democracy, governance, and human rights touches on Mongolia’s survival.

Mongolia is the strongest democracy in the belt of countries stuck between Russia and China and is at the top of most indexes in Asia for women’s empowerment, but it still struggles with corruption and polarizing debates over the limits of presidential power to fight that corruption. Trump did not discuss any of these issues with Battulga in Washington in July, but he should have. When the United States and other like-minded countries demonstrate a commitment to advancing democratic governance, they help empower civil societies and keep national discourses on an arc toward greater accountability and thus resilience against Chinese-funded corruption and interference. When the United States gives countries a pass just because they do not trust China, it leaves them more vulnerable.

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‘Doing Business with Mongolia Guide’ launch www.export.org.uk

27th September 2019 – The ‘Doing Business with Mongolia Guide’ is now officially live and can be accessed via: www.Mongolia.DoingBusinessGuide.co.uk.

The main objective of this Doing Business with Mongolia Guide is to provide you with basic knowledge about Mongolia; an overview of its economy, business culture, potential opportunities and to identify the main issues associated with initial research, market entry, risk management and cultural and language issues. We do not pretend to provide all the answers in the guide, but novice exporters in particular will find it a useful starting point. Further assistance is available from the Department for International Trade (DIT) team in Mongolia. Full contact details are available in the guide.

To help your business succeed in Mongolia we have carefully selected a variety of essential service providers as ‘Market Experts’; 4u Mongolian Company Formation LLC, Cashmere Holdings Mongolia, IARUDI Financial Consultancy TMZ LLC, Mongolian Business Database/B2B Mongolia, The English School of Mongolia, Trade and Development Bank of Mongolia (TDB) LLC.

The guide has been produced by International Market Advisor, in partnership with the Institute of Export & International Trade, and with support from the British Embassy Ulaanbaatar and Mongolian British Chamber of Commerce (MBCC).

Five things to know about exporting to Mongolia:

• Since 1991, Mongolia has transformed into a vibrant parliamentary democracy, with rule of law and a free, lively media, three times the level of GDP per capita and vast agricultural and mineral resources including major deposits of coal, gold, copper, iron ore and uranium.

• The Mongolian Government is keen to develop its industry, and there are opportunities for UK companies in many areas, such as the mining and oil and gas industries, the supply of equipment and expertise, financing, and other professional, legal and consulting services.

• Mongolia has a younger generation with an increasing number of English language speakers who are open to new products, services, and ideas.

• China provides a ready market for much of Mongolia’s mineral exports as there are no duties, and with no taxes on exports, Mongolia can serve as a gateway to nearby markets provided you have a Mongolian partner or are part of a joint venture.

• Mongolia's GDP growth rate increased from 1.2% in 2016 to 5.3% in 2017 and 6.9% in 2018 and the outlook remains positive in 2019, with the IMF having now raised its projections for Mongolian economic growth for 2019 from 1.5% to 1.8%. Supported by robust growth in private consumption as well as private investment in mining and manufacturing. The country is expected to be one of the world’s fastest-growing economies in the next few decades.

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Chinese Inner Mongolia to spur innovation in efforts to combat desertification www.chinadaily.com.cn

The Inner Mongolia autonomous region will encourage innovative ways to control desertification and contribute its experiences to more regions in the country as well as around the world.

"In past decades, Inner Mongolia has witnessed a green miracle. In the future, we will conduct strict surveillance of the grassland via satellite remote sensing technology," said Mu Yuan, head of the region's forestry and grassland bureau.

He also said the forestry department will promote the technological transformation of grassland recovery and help other regions at home and abroad to fight desertification, bringing more green to the world.

"More innovative ways are encouraged to control the sand for a better ecological system. We will also support cooperation between organizations in Inner Mongolia and other regions both at home and abroad," Mu said.

With 88 million hectares of grassland accounting for 74 percent of the region's area, Inner Mongolia is an important ecological shelter in North China.

However, the region is also home to China's seventh-largest desert - the Kubuqi Desert - which covers 13,900 square kilometers.

Over past decades, more than 6,000 sq km of desert in the Kubuqi have been turned green due to collective efforts from local governments, enterprises and other organizations. Led by a local enterprise, Elion Resources Group, the greening campaign created wealth of more than 500 billion yuan ($70.2 billion) and provided about 1 million jobs to locals.

A "Kubuqi Model" in desertification control has gradually taken shape over the past 30 years, featuring balanced development of ecology, economy and livelihood. Elion's anti-desertification experiences have benefited Beijing, Qinghai province and the Xinjiang Uygur and Tibet autonomous regions.

In addition, the group's techniques have also been used in many massive ecological programs, including Yangtze River Ecological Park and Qilian Mountain National Park.

The Kubuqi Model is highly appreciated by international communities.

During the 7th Kubuqi International Desert Forum held in Ordos, Inner Mongolia, in July, countries involved in the Belt and Road Initiative including Pakistan, Saudi Arabia and Kazakhstan negotiated with Elion to help them improve their local ecological systems through greening.

"We will exploit new ways to enhance our ability to control the sand with the help of modern technologies, such as drones, AI, big data and internet of things," said Ao Baoping, chief executive officer of Elion Green Land Technology.

Tsetsenbileg, mayor of Ordos, said that the city will continue to build itself into an innovative model realizing sustainable development, strengthening the ecological construction efforts and contributing to the country's aim of achieving its sustainable development goal by 2030.

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Japan Frets ‘Belt and Road’ Could Give Cover to China’s Military www.bloomberg.com

Japan believes China could use its global “Belt and Road” infrastructure initiative to push its People’s Liberation Army into the Indian and Pacific Ocean regions, a move that could shake up regional security.

The “Defense of Japan” white paper released Friday said, “China engages in unilateral, coercive attempts to alter the status quo based on its own assertions that are incompatible with the existing international order.” Tokyo also stood firmly behind its sole military ally, the U.S.

Japan’s worries about one of the signature projects of Chinese President Xi Jinping come as other major powers, including the U.S., have raised concerns that Belt and Road port construction in places such as Djibouti and Cambodia could have a dual military use.

The U.S. Fears a Cambodia Resort May Become a Chinese Naval Base

China’s Belt and Road
“It is possible that the construction of infrastructure based on the initiative will further promote the activities of the PLA in the Indian Ocean, Pacific Ocean and elsewhere,” the paper said. Japan and China, the two largest economies in Asia, have long been rivals in terms of economic and strategic influence.

Since 2013 more than 130 countries have signed deals or expressed interest in Belt and Road projects geared to spurring trade along routes reminiscent of the ancient Silk Road. The World Bank estimates some $575 billion worth of railways, roads, ports and other projects have been or are in the process of being built. Critics contend projects can be debt traps that leave host countries with white elephant infrastructure and bills they can’t repay.

Other points raised in the military paper are:

Japan sees a regular projection of force by China’s navy and air force around islands claimed by both countries known as Senkaku in Japan and Diaoyu in China
It says North Korea possesses and deploys several hundred ballistic missiles capable of hitting all parts of Japan. Military assessments indicate North Korea has miniaturized nuclear weapons to fit ballistic missiles as warheads.
Japan’s military expects North Korea to work to increase the firing range of its ballistic missiles and step up its ability for a surprise attack through advancement in mobile missile launchers and submarines.
It sees Russia stepping up military activities in the Far East.
South Korea’s decision to withdraw from an intelligence-sharing pact known as GSOMIA was “extremely regrettable,” the paper said

— With assistance by Emi Nobuhiro

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Foreign Minister addresses UN Security Council ministerial debate www.montsame.mn

Ulaanbaatar /MONTSAME/. Within the framework of the General Debate of the seventy-fourth session of the United Nations General Assembly, Security Council ministerial-level debate: Cooperation between the United Nations and regional and sub-regional organizations in maintaining international peace and security was held on September 25.

At the debate chaired by Russian Foreign Minister Sergey Lavrov, United Nations Secretary-General António Guterres as well as heads of Shanghai Cooperation Organization, Collective Security Treaty Organization and Commonwealth of Independent States delivered remarks, presenting cooperation activities between them for maintaining peace and security in the region.

Foreign ministers of UN Security Council's 15 permanent and nonpermanent members, Mongolia, India, Iran, Pakistan, Kazakhstan, Belarus, Azerbaijan, Tajikistan, Armenia and Afghanistan took part in the debate to express their positions on ways of building effective cooperation between the UN and regional organizations in combat against terrorism.

In his speech, Minister of Foreign Affairs of Mongolia D.Tsogtbaatar highlighted the importance of collaboration between the United Nations and regional organizations to tackle global challenges, in particular, terrorism, extremism and transnational organized crimes.

After informing that Mongolia has joined the UN Conventions against international terrorism and transnational organized crimes and established agreements with Russia and Kazakhstan on fighting terrorism and with China to fight against crimes, Foreign Minister D.Tsogtbaatar reaffirmed the significance of building countries’ capacity to combat against terrorism, drawing attention on the growing link between terrorism and transnational crime and organized crimes, including trafficking of drugs, weapons and humans, and involving young people in preventing and countering terrorism and extremism.

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Nine countries join US strategic minerals initiative www.reuters.com

The United States on Thursday said nine countries have joined its initiative to help discover and develop reserves of minerals used to make electric vehicles, part of an effort to cut the world’s reliance on China for the high-tech materials.

Secretary of State Mike Pompeo on Thursday met with foreign ministers from the nine countries on the sidelines of the United Nations General Assembly in New York.

The countries joining the United States include Australia, Botswana, Peru, Argentina, Brazil, Democratic Republic of the Congo, Namibia, the Philippines and Zambia.

Under the Energy Resource Governance Initiative (ERGI) announced in June, the United States will share mining expertise with member countries to help them discover and develop their minerals such as lithium, copper and cobalt, as well as advise on management and governance frameworks to help ensure their industries are attractive to international investors.

“What we see is an opportunity to provide a government to government engagement,” Frank Fannon, the top U.S. energy diplomat, said in an interview. “U.S. companies require a certain set of above-ground conditions regardless of what’s below ground.”

Washington grew more concerned recently about its dependence on mineral imports after Beijing suggested using them as leverage in the trade war between the world’s largest economic powers. That could interrupt the manufacture of a wide range of consumer, industrial and military goods, including mobile phones, electric vehicles, batteries, and fighter jets.

Mining companies in Congo have struggled to secure their sites from small scale prospectors digging for minerals. In June, 43 illegal miners were killed by a landslide at a Glencore facility in Congo, highlighting the challenge.

When it first introduced ERGI, the State Department said Canada was part of the initiative, but the U.S. neighbor was not listed as a member on Thursday because Foreign Minister Chrystia Freeland stayed at home for the election campaign period.

A U.S. official said the Trump administration “remains hopeful that Canada will join the initiative in the near future.”

The U.S. Department of Defense is also searching for better supplies of strategic minerals, including rare earths, around the globe. Reuters reported in June that the Pentagon held talks with Malawi’s Mkango Resources Ltd, Burundi’s Rainbow Rare Earths Ltd and other miners about securing supply.

(By Timothy Gardner and Ernest Scheyder; Editing by Marguerita Choy)

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Mongolia’s President Is a Genghis Khan-Idolizing Trump of the Steppe www.bloomberg.com

One morning in July, Mongolia’s president, Battulga Khaltmaa, prepared to take the podium at the National Sports Stadium in Ulaanbaatar. He was there to officially open the traditional summer festival of Naadam, during which virtually everyone in the country of 3 million celebrates feats of archery, wrestling, and especially horsemanship. Riding has been central to the national culture since the 13th century, when a tribal leader named Genghis Khan united a disparate group of steppe clans and conquered much of Eurasia.

A champion martial artist in his youth, Battulga is squat and powerful, with a thickly muscled neck and ears slightly squashed from years of grappling. He wore a dark fedora, leather riding boots, and a wine-colored deel—a fancy version of a traditional herder’s robe—cinched at the waist with a broad sash. As he awaited his turn to speak, two teams of riders in red-and-blue uniforms performed an impressive display of coordinated dismounts. After remounting their steeds in one swift movement, they tore away for a lap around the stadium, a rushing eddy of pointed helmets and bouncing tails.

Battulga stepped to the mic. “Genghis Khan, the great lord and our beloved forefather,” he said, “your horses are agile, the strapping wrestlers are adept, and the archers are well-aimed.” Naadam, he proclaimed, “is an occasion that makes each and every one of us understand the essence of being a true Mongol.”

The great Khan, Mongolia’s official national hero and a man Battulga so reveres that he constructed a 130-foot-tall statue of him, was the most feared leader of his era. His forces killed millions, many in mass beheadings, as they tore across the continent. Hardly a model democrat, in other words. Yet for most of the past three decades the country that glorifies him has been considered a star pupil of the West. European and U.S. leaders praise Mongolia as an oasis of liberty and capitalism, blessed with abundant mineral reserves, a young, worldly population, and a fervent desire to chart a path apart from its powerful neighbors, Russia and China.

“Mongolians are very loyal to the decision to have a democratic political system”

This perception has elevated Mongolia in the minds of foreign investors, notably Rio Tinto Plc, which is counting on the giant Oyu Tolgoi copper and gold project in the far reaches of the Gobi Desert, one of the world’s most ambitious mining developments, for much of its future growth. But though Mongolians have undoubtedly benefited from capitalism—gross domestic product per head has risen tenfold since 1994—polls indicate that many are deeply frustrated, believing their country’s mineral wealth has been stolen by outsiders. This sentiment fueled an explosion of anti-establishment anger that brought Battulga, a populist businessman, to power in 2017.

Under him, Mongolia’s trajectory has shifted. Battulga has cozied up to Russian President Vladimir Putin, and earlier this year he ignited a political crisis by getting legislation passed that gives him the effective power to fire judges and top law enforcement figures. He promptly used it to remove a range of judicial officials—a move he cast as necessary to fight corruption and preserve the long-term health of the country’s democracy. “Mongolians are very loyal to the decision to have a democratic political system,” he told Bloomberg Businessweek.

Although Mongolia’s reserves of copper, gold, iron ore, and rare earths make it an attractive partner for the U.S. and its allies, it’s been arguably more important to them as an example. Situated in an otherwise unbroken arc of authoritarianism extending from the South China Sea to Central Europe, the country rebuts the notion that some parts of the world aren’t suited to liberal values. As Battulga consolidates his position, though, some Mongolians are asking whether they can remain an exception. Oases do, after all, have a way of drying up.

The immediate forebear of modern Mongolia, the Mongolian People’s Republic, was nominally independent, but in practice it was a Soviet client state. It began collapsing in early 1990, after student protesters thronged the center of Ulaanbaatar. Within months there were multiparty elections, some of the first in the former communist bloc. An economic backwater even by Soviet standards, Mongolia switched to market capitalism virtually overnight, leaving many people disoriented but creating enormous opportunities for those with the instincts or connections to take advantage.

Battulga was among the latter. Raised in a tough neighborhood on the capital’s outskirts, he distinguished himself in the 1980s as a competitor in sambo, a martial art favored by the Soviet Red Army. Competing abroad gave him opportunities to import luxuries such as denim and VHS cassettes, and when the Iron Curtain fell he parlayed that experience into a thriving business called Genco, after Vito Corleone’s olive oil front company in The Godfather. Battulga’s enterprises gradually grew to include a hotel, a meat plant, a fleet of taxis, and a tour agency, all in Ulaanbaatar.

His most ambitious business project was the statue of Genghis, an hour from the city on a plain nestled between two chains of bald mountains. Banned from public display under Communism, Genghis afterward regained his status as Mongolia’s most venerated leader, his name or likeness appearing on its main airport, a popular vodka, and several denominations of its currency, the tugrik. The statue, depicting him on horseback, required 250 tons of stainless steel and became a statement of national pride and an offbeat tourist destination. The museum inside the base features a 30-foot-high riding boot, constructed with leather and 79 gallons of glue.

Battulga was elected to parliament in 2004 and became minister for transportation and construction four years later. The country was about to need both enormously. Chinese demand for copper, coal, and other commodities—Mongolia’s only meaningful exports—was soaring, creating a dramatic mining boom. In 2009, Rio Tinto struck a 30-year deal with the government to develop Oyu Tolgoi’s vast deposits, becoming Mongolia’s largest foreign investor and driving competitors to scour the country for their own finds. The money spent to develop the site helped GDP grow by 17% in 2011, the fastest pace in the world. As investment bankers and mining engineers poured into Ulaanbaatar, the dusty capital began acquiring the trappings of luxury: sushi, Porsches, a Louis Vuitton store. Officials tore down the last Lenin statue and erected one nearby to honor that accomplished Eurasian capitalist Marco Polo.

Then, almost as quickly as it began, the boom was over. Commodity prices collapsed in 2014, and the tugrik plunged, making the imports to which people had grown accustomed unaffordable. Construction jobs, the livelihood for thousands of rural migrants to the capital, disappeared. The Mongolian government had to slash civil servants’ pay, cancel infrastructure projects, and seek a bailout from the International Monetary Fund. The Louis Vuitton boutique closed.

Public fury mounted—against allegedly corrupt politicians, the wealthy, Rio Tinto. Battulga, still in parliament, was effective at stoking the mood even though he was one of the country’s most successful people and was himself being investigated over suspicions that he’d helped embezzle money from a railway project. (He denied wrongdoing and was never charged.) In 2016 he spoke at a rally called to protest economic injustice. “Our wealth is shipped outside of the country,” Battulga complained. “Where is that money going?”

The next year, he ran for president. Although he avoided direct comparisons, there were clear parallels with Donald Trump’s presidential campaign. Battulga portrayed himself as an outsider and an aspirational example, packaging his governing program in the MAGA-esque slogan “Mongolia Will Win.” Thanks largely to support from the poor, he surprised pollsters by finishing ahead of his main rival in the first-round vote and winning the runoff comfortably.

For the first part of Battulga’s term, Mongolia’s prime minister, Khurelsukh Ukhnaa, tended to occupy center stage. The prime minister runs day-to-day parliamentary business, while the president handles foreign affairs, oversees judicial appointments, and introduces legislation. The two men were from opposing parties, but that didn’t prevent them from co-operating. Mongolia’s main factions aren’t really split on ideological lines, and Battulga draws much of his parliamentary support from Khurelsukh’s party.

Battulga seized the spotlight early this year, when he started publicly pressuring Mongolia’s prosecutor general to open a corruption investigation into the previous president, Elbegdorj Tsakhia, a Harvard-educated liberal, claiming Elbegdorj had improperly tried to sell a vast coal deposit to foreign interests. (A spokesman for Elbegdorj denied the allegations.) The prosecutor refused, saying he needed a valid legal justification to open an inquiry. On March 26, Battulga introduced “urgent” legislation to give the National Security Council—consisting of the president, the prime minister, and the speaker of parliament—the power to fire a range of judicial officials. Legislators from Battulga’s own party boycotted the vote, criticizing the law as unconstitutional. But it passed in around 24 hours, thanks to support from Khurelsukh-aligned legislators, many of whom were themselves under investigation for graft.

Activists and other critics were apoplectic, but Battulga was unmoved, arguing the changes were needed to break a deep-state cabal protecting “political-economic interest groups.” Judges, police, and even spies were all part of a “conspiracy system that shields the illegal activities of these groups,” he told parliament.

The day after the law passed, Battulga removed the chief prosecutor who’d resisted him, as well as the chief justice of the Supreme Court. In May, the director and second-in-command of Mongolia’s anticorruption agency—the body that had investigated Battulga over the railway project—were also removed. The next month, 17 judges, several of them on the Supreme Court, were stripped of their powers.

Battulga works in the State Palace, a leaden edifice that would seem straight from a Soviet drafting table were it not for a new facade and a statue of Genghis. A huge map of Mongolia dominates the formal meeting room where the president greets visitors, with thumbtacks to represent mineral deposits: yellow for uranium, black for iron ore, and so on.

Battulga is 56, but age has barely diminished his physical presence, and he leaned far forward in his chair while being interviewed, elbows perched on his knees like a coach watching his athletes compete. (Battulga is a past president of the national judo federation, which won Mongolia’s first-ever Olympic gold medal during his tenure.) His manner was anything but Trumpian, marked by quiet and careful speech in a gravelly voice.

But Battulga presented himself, like Trump, as a man whose success taught him how things really work. “I know all the phases of the Mongolian economic transition well,” he said. “I also know that the Mongolian judiciary, prosecution system, and anticorruption agency have become bodies that cover and work for certain people.” If their influence isn’t disrupted to allow ordinary citizens to be heard and prosperity to be shared more broadly, he said, “Mongolia may go backwards, to a point where there would be many years of chaos.” He defended his law enforcement purge, arguing the three-person security council is an adequate safeguard: “I don’t hesitate to say that I made the right decision, and I will always stand by it.”

The corruption Battulga argues is rife stems from only one real source: mining. Starting in the 1990s, he said, “parliament members and ministers who had access to information on natural resources and legislation pocketed the money from big mining projects.” In an implicit rebuttal to critics who accuse him of dismantling institutional guardrails, he cited one of the world’s strongest democracies as a model for Mongolia, saying his government is studying how countries such as Norway “have managed resources for the public good.”

Discussions about managing Mongolia’s resources tend to turn rapidly to Rio Tinto. The 2009 Oyu Tolgoi deal gave the state a 34% stake in the project, paid for by a loan from its developers. The interest Mongolia must return is substantial, and it won’t receive dividends until the debt is covered—currently expected around 2040. Oyu Tolgoi is nevertheless already crucial to the economy, with more workers than any other private employer.

“Russia and Mongolia are closely bonded”

To many Mongolians, foreign ownership of a key national asset is unacceptable. A 2019 survey by the Sant Maral Foundation, the country’s most prominent polling outfit, found that 89.9% of respondents wanted “strategic” mines to be majority-owned by Mongolians. Only 0.5% said they should be foreign-controlled. But the costs and challenges of operating such a large and complex mine, in such a remote area, mean Oyu Tolgoi is only viable in the hands of a company such as Rio Tinto. The mine is currently an open pit; a planned underground expansion, necessary to tap the richest deposits, will be even more difficult to execute.

Although Battulga has no formal power over Mongolia’s relationship with Rio Tinto, he wields enormous political influence, and he’s pushed to revisit the deal. He complained during the interview that Mongolia hadn’t fully understood its implications, calling it a “mistake made by an inexperienced country, relatively new to democracy.” He favors a partial renegotiation. “If circumstances change, or we realize new things, companies renegotiate,” he said. “It’s international practice.”

Battulga is more measured than lawmakers who want to scrap the agreement and start over, insisting Mongolia must honor its commitments. Revisiting the arrangement would be risky. Oyu Tolgoi is already expected to take longer and cost more than planned, and trying to overhaul the underlying agreements “would threaten the future of the project,” Rio Tinto wrote in a statement. The company said that the negotiations were conducted “fairly and in good faith” and that it’s working with the government to maximize the mine’s benefits.

Battulga and other Mongolian leaders will have to strike a balance between popular sentiment and Rio Tinto’s interests if they’re to deliver prosperity to the masses. Already, the turmoil has deterred other international miners from investing. The country badly needs their money and expertise; huge swaths of its territory have never been comprehensively surveyed. The first condition for becoming Norway on the steppe is pulling many more resources out of the ground.

Some of Battulga’s affinities, however, have Mongolian liberals and foreign observers worrying that his preferred future looks less Scandinavian and more Russian. Chief among their concerns is his bond with Putin. Economic ties between Russia and Mongolia have been limited since the Cold War—Ulaanbaatar is five time zones away from Moscow, and Russian companies have been far less active in Mongolia than their Chinese counterparts. But during his first two years in office, Battulga made a point of reaching out to Putin, meeting with him several times. In early September the Russian leader received a lavish welcome in Ulaanbaatar, where the pair discussed trade deals and having a large Mongolian delegation attend the key event on Moscow’s 2020 calendar, a Red Square parade celebrating the 75th anniversary of the Soviet Union’s victory in World War II.

Asked if he was tilting Mongolia toward Moscow, Battulga described the countries’ connections as both practical and emotional. “We’re almost fully dependent on Russia for oil and electricity, so we have to cooperate closely,” he said. There’s also longstanding affection for Russia among Mongolians of Battulga’s generation, for whom elite education generally meant studying in the USSR. “Russia and Mongolia,” Battulga said, “are closely bonded.”

Previous Mongolian leaders concentrated on wooing the U.S., notably by sending troops to Afghanistan and Iraq. (The country’s first armed foray to those lands, incidentally, was the 1258 sacking of Baghdad by Genghis’s grandson Hulagu Khan, whose horde rolled the city’s ruler in a carpet and trampled him to death.) Ties with Washington are the linchpin of the “third neighbor policy,” a long-running Mongolian effort to guarantee autonomy by cultivating relationships beyond Russia and China.

U.S. officials have lately been working to keep Mongolia in the West’s tent. Then-National Security Adviser John Bolton traveled there in late June, quickly followed by Secretary of Defense Mark Esper. Trump has also welcomed Battulga to the White House, a visit the Mongolian president commemorated by symbolically gifting a horse named Victory to Trump’s teenage son Barron. (The horse remained in Mongolia.) Battulga and others lament, however, that Congress hasn’t passed the Mongolia Third Neighbor Trade Act, a bill that would remove duties on some Mongolian imports.

To the people responsible for selling international businesses on Mongolia, democracy remains a key competitive advantage. Sumiyabazar Dolgorsuren, the minister of mining, says that for foreign investors, “I think it’s better to reach an agreement with a system that can actually clean itself up and right its wrongs.”

“When a very few people become truly rich and the masses get pennies, not even toilets, that makes people unhappy”

Many of the people Battulga says he wants to help live in the ger districts, home to more than half of Ulaanbaatar’s roughly 1.5 million residents. The districts’ existence owes to two peculiarities, one cultural and the other legal. Mongolians were largely nomadic well into the 20th century, and property ownership wasn’t really relevant; there was plenty of land to go around. Eager to build a more modern market, post-Communist lawmakers created a system allowing every Mongolian to get a plot of land for free—700 square meters in Ulaanbaatar or as much as 5,000 in rural areas. Since most property nominally belonged to the state, there were few private landowners to object. One unintended consequence of the provision was that, with economic opportunity concentrated in the largest city, many nomadic families claimed a patch of land on its outskirts and never left. Few made enough money to move up the housing ladder, leaving Ulaanbaatar ringed with thousands of gers—traditional tentlike shelters used by nomads for centuries.

On a gray afternoon in a ger district that ascends the foothills north of the city center, it wasn’t hard to see why many residents supported a leader claiming he could break the dominance of the wealthy. White gers lined both sides of a rutted dirt track, separated from one another by short wooden stockades. Next to each residence was a tiny outhouse, a particular inconvenience in a country where temperatures can plunge below –30C. Peeking out above the tents were small chimneys for venting smoke from coal stoves. The average ger burns between three and four tons every winter for warmth, the main reason Ulaanbaatar has some of the world’s worst air pollution.

To the lee side of a small hill was an angular one-story structure, constructed with a skeleton of blond wood and clad in translucent polycarbonate panels. The building is a makeshift community center, one of several attempts made by a local nonprofit called GerHub, with help from designers at the University of Hong Kong, to improve the districts. Despite promises by successive generations of politicians, no one else has done it. “The government has sort of frozen,” said Badruun Gardi, GerHub’s founder. Even at the height of the mining boom, “there was this large portion of the country that wasn’t benefiting, and in some ways people’s lives were getting worse.”

You don’t have to go far in Ulaanbaatar, though, to find people whose lives have improved dramatically under market democracy. A large cohort of young, tech-savvy Mongolians, many of whom have studied or worked in the West, now form a genuine middle class. The mainstream media is vibrant, with dozens of papers and TV channels, while Twitter and Facebook buzz with passionate political debate. And when Mongolians are dissatisfied with their leaders, they can and do take to the streets, filling the central square no matter the weather.

Even people who helped bring about Mongolia’s transition to capitalism express amazement at how far the country has come. Jargalsaikhan Dambadarjaa and Bold Luvsanvandan were pro-democracy activists in 1990, narrowly escaping arrest after they postered Ulaanbaatar’s main drag. Now they’re part of the establishment: Jargalsaikhan runs a respected think tank, while Bold sits in parliament and leads a political party.

Sitting in the restaurant of the Communist-era Ulaanbaatar Hotel, they remarked on Mongolia’s uniquely independent path. Both men share Battulga’s stated interest in seeing prosperity shared broadly within the current system. “When a very few people become truly rich,” Jargalsaikhan said, “and the masses get pennies, not even toilets, that makes people unhappy.” They were nonetheless deeply concerned about Mongolia’s direction. “What’s happening in Hungary and Poland, similar things are trying to be happening here,” Jargalsaikhan said.

“Nobody wants Mongolia to keep democracy,” Bold chimed in, alluding to the country’s neighbors. “I’m not even sure about Western countries. Dealing with a dictator is much easier.”

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Mongolia to be promoted at Tokyo Tower www.montsame.mn

Ulaanbaatar /MONTSAME/ The Mongolian National Olympic Committee is to set up “Mongolia House” at “Tokyo Tower”, the most attracted tourist destination in Tokyo, Japan in the course of Tokyo-2020. Battushig B, the Vice President of Mongolian National Olympic Committee, has signed a memorandum with the relevant authorities to set up “Mongolia House”.

“Mongolia House” is going to take place for two weeks during the Tokyo-2020 in order to promote Mongolian culture, tradition, history and the historical path of “Sport-Olympism”. Moreover concerts, national brands expo and many more are planned to be organized, according to the Mongolian National Olympic Committee.

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