The recent decision by Mongolia to adopt SpaceX’s Starlink internet services is causing security concerns beyond the border with China, both as a potential military threat and as a possible way to bypass Beijing’s Great Firewall censorship of foreign websites perceived as “harmful.”

On July 6th, Mongolia’s Communications Regulatory Commission issued special licenses for SpaceX, founded by American billionaire Elon Musk, to operate as a service provider using low-orbit satellites and for Starlink to provide internet services in the country, according to AT.

The decision is part of the ongoing digital transformation in Mongolia and the New Recovery Policy, which was announced ahead of the annual Mongolia Economic Forum 2023 held on July 9-10.

“A fiber optic cable network already provides extensive high-speed internet access throughout Mongolia,” said Uchral Nyam-Osor, the Minister of Digital Development and Communications, on July 7th. “But Starlink technology will provide greater access to the country’s more remote areas. Herders, farmers, businesses, and miners living and working across our vast country will be able to access information from around the world and use it to improve their lives.”

Currently, Chinese citizens cannot access foreign websites blocked by the Golden Shield project, also known as the “Great Firewall of China,” unless they use VPNs. China has not adopted Starlink’s internet services for national security reasons.

Some Chinese commentators have an alarming view of Mongolia’s decision to use Elon Musk’s satellite network, as it is capable of breaking through the Chinese Great Firewall since its usage cannot be blocked with a “boundary line.”

Although Starlink has promised not to exceed limits, they have already planned to provide services in Mongolia and Pakistan, neighboring countries to China’s Inner Mongolia and Xinjiang regions, which have significant strategic importance. The feared risk is straightforward: if destabilizing social events occur in one of these neighboring countries, the related news can influence the Chinese population through Starlink’s services. In fact, thanks to Starlink’s autonomous services, countries utilizing them cannot choose to interrupt internet services in such situations, and therefore, news would also filter into Chinese regions.

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Pope Francis proposes to meet with Patriarch Kirill of Moscow and All Russia at one of Moscow's airports when the pontiff's plane stops there for refueling on its way to or from Mongolia, Leonid Sevastyanov, chairman of the World Union of Old Believers (WSU), told TASS on Sunday, citing a personal conversation with the pontiff.

"The Pope proposes to meet Patriarch Kirill without delay at one of Moscow's airports, Domodedovo or Vnukovo, when he flies to Mongolia. Then he will have to refuel in Moscow at one of the airports," Sevastyanov said.

According to him, the first meeting between Patriarch Kirill and the Pope took place at the Havana airport in 2016, so a similar meeting can take place now.

"The airport is considered a transit zone, it’s neutral, it would not provoke opposition from those who oppose the pontiff's visit to Russia. If there is a response from the Patriarch, such a meeting could take place on August 31 on the Pope's way to Mongolia. Or on his way back on September 4," Sevastyanov added.

Pope Francis will make an apostolic visit to Mongolia from August 31 to September 4.

The Japan Sumo Association on Wednesday promoted Mongolian wrestler Hoshoryu to ozeki, the sport's second-highest rank, following his victory at the Nagoya Grand Sumo Tournament.

The 24-year-old, whose given name is Sugarragchaa Byambasuren, is the nephew of renowned former yokozuna Asashoryu, whose 25 championships in the elite makuuchi division are the fourth-most in sumo history.

Hoshoryu secured his maiden top-division title at the 15-day Nagoya tournament on Sunday after finishing with a 12-3 record that gave him 33 wins over the past three tournaments as sekiwake, a benchmark for promotion to ozeki.

He claimed the Emperor's Cup at Dolphins Arena by winning a sudden-death championship playoff against rank-and-file opponent Hokutofuji, who also finished 12-3.

JSA director Sakaigawa and elder Onaruto formalized Hoshoryu's promotion in a ceremony at the lodgings of his Tatsunami stable in Nagoya.

"I will do my utmost never to tarnish the reputation of the ozeki rank," Hoshoryu said.

Hoshoryu becomes the seventh ozeki from Mongolia following the promotion of Kirishima after the May tournament.

With Hoshoryu's promotion, there will be three ozeki and one yokozuna at the next grand tournament. Ozeki Takakeisho sat out the Nagoya meet due to injury, while the sport's lone grand champion, Terunofuji, pulled out on the fourth day.

Researchers from Mongolia and China will jointly establish a geographical information system for the habitat of the Mazaalai (Gobi Bear) in the Great Gobi Strictly Prohibited Area.

N. Baatartsogt, Head of the Department of Policy and Regulation of Specially Protected Areas of the Ministry of Environment and Tourism, exchanged views on this matter while receiving a team of researchers from the Chinese Academy of Forestry.

During the meeting, the Parties discussed cooperation to assess the quality of the Mazaalai's habitat, determine the status of the population of edible plants, and conduct research on biodiversity monitoring.

The team of Chinese researchers is working in our country within the framework of the agreement between the Governments of the two countries on the "Technical Assistance in the Protection of Gobi Bears" project signed in 2018.

In addition, during the official visit of the Prime Minister of Mongolia L. Oyun-Erdene to China, Minister of Environment and Tourism of Mongolia B. Bat-Erdene and Minister of Commerce of China Wang Wentao signed the "Additional Agreement on the Implementation of Technical Assistance Project in the Field of Protection of Mongolian Gobi Mazaalai."

As a result of this Additional Agreement, the term of the previous agreement signed in 2018 has been duly extended. Consequently, this extension will facilitate the conduct of more extensive and all-encompassing research, with the primary focus on enhancing its habitat, bolstering its population, and safeguarding the Mazaalai.

Rio Tinto (ASX: RIO) is the first of the global iron ore majors expected to report lower half-year earnings from this week, as supply chains normalise after covid-19 and attention turns to how suppliers to China’s steelmaking industry see customer demand.

The world’s biggest iron ore producer is expected report its lowest half year earnings and dividend in three years on Wednesday, mostly on the back of a 15% fall in received iron ore prices over the period.

Iron ore accounts for about 70% of Rio’s earnings. A Visible Alpha consensus expects Rio to log profits of $5.85 billion and dividends of 185 US cents, 32% lower than last year’s $8.63 billion and 267 US cents.

Iron ore prices have recovered this quarter to the highest in four months on hopes of targeted stimulus for China’s property sector.

China’s top leaders pledged on Monday to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand, signalling more stimulus steps.

“The China reopening trade is coming towards an end,” said analyst Kaan Peker of RBC in Sydney. “We don’t think there is going to be large stimulus.”

Rio warned of the risk to global growth when it reported its quarterly production last week.

The world’s biggest listed miner, BHP Group, reports on Aug. 2, when it is expected to log a 35% fall in underlying profit for the half to $7.45 billion from $11.6 billion for the second half of the 2021-2022 financial year.

Fortescue sets out its quarterly production results on Friday and its financial results on Aug. 27. Vale, the world’s second biggest iron ore miner, reports its financial results July 27 after sales lagged output during the quarter.

(Reporting by Melanie Burton and Sameer Manekar)

“It is the destiny of an elm tree to grow sidehill.”

This line from a Mongolian folk song reflects the character of the country – one that is resilient despite the odds. The elm tree grows in rocky terrain where soil is sparse, holding on to rainwater, making its way downhill, to survive.

Yet, even the most resilient of trees – and people – now face the biggest crisis of our time: climate change. Last month, June 2023, was the hottest on record. The last decade was the hottest in human history. Drought, floods, storms and wildfires are becoming more intense and more frequent.

Mongolia is one of the countries most vulnerable to climate change. About 76.9% of its land is affected by desertification and land degradation. Natural disasters have doubled in number in the last 20 years. The situation is dire.

But there is good news: with its forests and deserts, mountains and rivers, valleys and steppes, Mongolia is a climate microcosm of the world. The climate challenges here can be found elsewhere – and the solutions that succeed here can work elsewhere.

Diversifying with green and digital trade

To drive solutions at the systemic level requires redefining socioeconomic progress. Our efforts to develop trade must truly support people, prosperity and the planet. This is why Mongolia and the International Trade Centre co-hosted the World Export Development Forum at the end of June. The theme, “diversifying with green and digital trade,” explored how societies can set economic foundations in a sustainable way, with small businesses, women and young people driving the change.

When exploring strategies to respond to climate change, from policies to platforms to partnerships, prioritizing innovation is at the core, but seeking the help of the oldest of technologies, nature’s solution – trees – is crucial. To go beyond a symbolic gesture to create a viable plan to reverse desertification, taking a science-based approach to tree planting is key.

This involves mapping eroded land and water sources, conducting soil research and creating a plant atlas. Backed by data collection and close monitoring, tree planting can be highly effective for countries combating desertification. The people of Mongolia have a saying: "The cradle of life is water; the cradle of water is the trees.” They believe that soil, food and people hold umbilical kinship.

By 2030, Mongolia’s Billion Tree National Movement aims to plant and nurture billions of trees to increase the forest cover to 9%. This will absorb more carbon from the atmosphere, increase water resources and accelerate climate-friendly business development. Beyond reforestation, the plan focuses on afforestation – planting new forests in favourable areas – to reverse desertification and the other effects of climate change, sustain biodiversity and improve food security.

As part of the movement, developing agro-forestry parks and growing fruits, vegetables, and medicinal herbs will not only help to meet domestic demands but support exports, thus increasing employment opportunities and boosting the income of citizens.

Tree planting on such a wide scale is also important to building capacity in related services, such as environmental engineering and water management, making Mongolia more resilient overall and better able to face future shocks. This is a twenty-first-century path to growth and economic diversification.

In parallel, Mongolia aims to reduce emissions by 27.2% by 2030 in the energy, transportation, construction, industry, agriculture and waste sectors. An ambitious but necessary target.

Tackling climate change as a society

To translate these national campaigns and plans into change on the ground, all parts of society must be involved. The tree-planting campaign is moving faster than expected, for example, because everyone is contributing, in all 21 provinces.

In other words, while the government sets the framework, others fill it in. This includes the 'silent majority' or small businesses. They make up most businesses worldwide, including two-thirds of registered businesses in Mongolia. By the end of 2022, with the involvement of small-scale producers and workers, the production of seed reserves was 4.5 times the amount produced in previous years.

While small businesses are willing to contribute to the low-carbon transition, they need financing, skills and technology to do so. They need training, for example, to start tree nursery businesses, fruit farms or medicinal herb farms and to trade biodiverse products abroad. As the lead United Nations agency on small businesses, the International Trade Centre works with firms on dynamic agroforestry to replenish forests, diversify crops and improve soil quality with fewer chemicals, increase yields and create access to new markets seeking sustainably produced goods. Incentivizing farmers to adopt such practices is key to long-term change and sustainable economic growth.

Looking back to the elm tree, it is not just one growing sidehill in Mongolia: 308 million will be planted as part of the tree-planting campaign. In good company, the benefits brought forth by the elm tree will grow exponentially as the trees grow.

Perth-based TMK Energy says it has proven mobile gas can be flowed to surface at its Gurvantes XXXV coal-seam gas project in Mongolia’s South Gobi Basin, flaring first gas from its Lucky Fox-1 well for three hours.

The company says it will now complete an extended production test at the project as it aims to prove continuous gas flow by increasing pump rates in all three of its wells – Lucky Fox-1, 2 and 3. It believes that will cause more coal seams to reach critical desorption pressure and release their stored gas pay.

The three production wells combined are currently producing about 500 barrels of water per day, in line with reservoir modelling and current pump rates. And the produced water will not go to waste in the arid Gobi Desert, with TMK agreeing to provide coal miner Mongol Alt LLC (MAK), which also owns the Gurvantes lease, with early-stage water from the well tests to feed its nearby power and water-hungry coal mining operations.

The early signs we are seeing from the performance of the three pilot wells is in line with our reservoir modelling work and bodes well for the extended production test. The good water rates combined with the decreasing fluid levels in each of the wells is very encouraging. The flaring of the gas for over three hours proves there is gas in the system that can be and is flowing to surface, and we now aim to demonstrate that gas can be produced at a sustained economic rate as we proceed with the extended production test. The results to date from this maiden Pilot Well Program are very encouraging for the future of the Project, the Company, and its shareholders.

TMK Energy chief executive officer Brendan Stats

The company has moved with purpose at Gurvantes since earlier this year when it discovered thick gassy coal intervals of up to 68m in its Lucky Fox wells. It has installed three sets of downhole pumps and driveheads, in addition to surface gas-handling facilities in preparation for production testing.

Management last week continued the momentum by commissioning production testing and now proving first gas to surface.

As the extended production test matures in coming weeks and steady gas flow at surface is achieved, TMK will have a clear and immediate pathway to commercialisation through an energy offtake agreement, signed in March this year between TMK and MAK. As part of the deal, the produced gas will be used for modular power generation at site before being on-sold to MAK at the prevailing local energy wholesale price.

The company says it expects to demonstrate sustained economic gas flow rates at surface to propel Gurvantes from the exploration phase firmly into appraisal and commercial development. The test data will feed into TMK’s prefeasibility study for the project, which has an estimated (2C) contingent resource of 1.2 trillion cubic feet of high-methane gas.

Gurvantes is operated by TMK as part of a joint venture with Perth-based partner Talon Energy and signals the company’s commitment to long-term gas production in Mongolia, where it has an exploration licence for 15 years in an area widely regarded as one of the most prospective coal-seam gas basins in the world.

In addition to the local Mongolian need for gas, other market opportunities for TMK includes China’s significant natural gas market, currently serviced by importing via long-distance pipelines from central Asia, Russia and Myanmar.

China is hungry for natural gas to feed its power and manufacturing industries. Mordor Intelligence estimates the compound annual growth rate for China’s LNG market at about 7 per cent from this year to 2028, in part due to the phasing out of coal-fired power in a step towards reduced carbon emissions.

Gurvantes is tantalisingly close to the Chinese border, which is less than 20km south of the project. China’s huge west-east gas pipeline sits another 280km across the border.

Outcropping coal seams are underfoot along strike of Gurvantes where the company believes there is more gas potential. It will investigate that possibility with a planned 2D seismic survey, in addition to eight more exploration wells.

The market seemed to resonate with TMK’s gas flow confirmation today as the company’s stock jumped more than 14 per cent. And with production test data on the horizon, it should not be too long a wait to find out just how much gas is tied up within the Mongolian coals.

As geopolitics continue to evolve, the initiative to build a China-Mongolia-Russia economic corridor, spearheaded by China’s Foreign Minister Wang Yi in 2015, gains increasing relevance. The project, aimed at facilitating the development of these three nations, has the potential to radically change geo-economic processes worldwide.

The corridor, spanning the breadth of the Eurasian continent, enables Russia to broaden its export flow towards the East. It was in Tashkent, in 2016, that a program formalizing the creation of the economic corridor was signed. The agreement set forth seven primary domains of cooperation, including the development of interconnected transport infrastructure, industrial and investment cooperation, environmental protection, and promotion of cross-border and regional collaboration.

Five years post-signature, the involved parties will assess the program’s success and decide on its extension. During a 2022 meeting, Russian President Vladimir Putin, alongside Chinese leader Xi Jinping and Mongolian President Ukhnaagiin Khurelsukh, proposed an intensified five-year effort to expedite the program’s existing objectives.

Three priority areas were identified in 2018 for immediate focus: modernizing the Ulan-Ude to Tianjin railway corridor; developing road transport along the AN-3 highway; and exploring opportunities for Chinese enterprise involvement in modernizing Mongolia and Russia’s power grids.

Experts are confident that these integration transport projects could speed up the construction of the Soyuz Vostok gas pipeline, part of the Power of Siberia-2 project. The Mongolian side is optimistic about this prospect, anticipating financial benefits from transit payments and the potential to supply gas to Ulan Bator.

However, challenges persist, particularly concerning the single-track, non-electrified railway corridor in Mongolia. The disparity in track width between China and Mongolia/Russia, coupled with the Mongolian government’s hesitance in modernizing this section, further complicates matters. Nonetheless, cargo transport on this route has consistently risen in recent years, albeit still lower than transit through Kazakhstan.

As the Central Railway Corridor undergoes modernization, discussions regarding the development of Eastern and Western Corridors through Mongolia continue. While the Western Corridor could connect Kuragino, Kizil, Kobdo, and Urumqi, the Eastern Corridor may run from Borzi to the Chinese urban region of Panjin.

Despite these promising plans, issues remain in road communication between countries. The reconstruction of the Darkhan – Ulan Bator section of the AN-3 highway, slated for completion this year, and the lagging road infrastructure development contribute to these problems. Moreover, the COVID-19 pandemic has slowed down several projects in the economic corridor.

Considering the current geopolitical landscape, Mongolia’s balanced stance towards its neighbors, Russia and China, and its partnerships with Western nations becomes of significant interest. With Russia keen on reorienting most of its export flow towards the East, Mongolia’s transport infrastructure is of strategic importance.

It can be inferred that a shift in Russia’s foreign economic relations is underway, with China possibly replacing EU countries as the primary trading partner. In this scenario, Mongolia could emerge as a pivotal transit link. This shift towards the East could also stimulate development in Siberia and the Far Eastern regions of Russia, positively affecting the standard of living and economic activity in these areas.

The successful development of the China-Mongolia-Russia economic corridor could revolutionize global geo-economic processes. With a strategic approach, this corridor could potentially emerge as a key driver of global economic progression.

Copyright © 2023 The Eastern Herald.

"XacBank" LLC, which issued securities on the stock exchange, presented its report on the use of funds collected from the public.

The company, whose shares were traded on May 29 of this year after conducting an IPO in the stock market, collected MNT 35.7 billion. Disbursement of funds collected as of June 30 of this year:

• Citizen loan portfolio: MNT 17.8 billion

• Corporate loan portfolio: MNT 410.9 million

• Financial leasing package: MNT 2.7 billion

• The unspent balance of net financing is MNT 13,463,776,627

The company plans to finance the bank's main product, lending, as follows, net of the direct costs associated with issuing securities. It includes:

• 66 percent of citizens' loan portfolio or MNT 22.5 billion

• Corporate loan portfolio 19 percent or MNT 6.5 billion

• 15 percent of financial lease package or MNT 5.1 billion

"XacBank" LLC offered 5.0 percent of its total shares or 52,700,000 shares to the public at MNT 677 each, and raised a total of MNT 35,677,900,000.