Copper

Oyu Tolgoi, one of the main mining projects in Mongolia, spent USD 296.4 million on underground development in the first quarter of this year. The second shaft is still ongoing and it is expected to end in October.

Xanadu Mines, listed on the Australian Stock Exchange announced the result of additional exploration at Kharmagtai deposit. In the first quarter of this year, the capital balance of the company reached AUD 3.1 million, while post-tax losses nearly halved from the same period last year. The share price of the company reached AUD 0.08 at the Australian Stock Exchange.

Gold

Erdene Resource Development Corp. (ERD), Toronto Stock Exchange (TSX) and the Mongolian Stock Exchange (MSE) listed firm, has conducted drilling at the Khundii field and expanded the mineralization of the Bayan Khundii deposit. The company explained its plans in a report to support the feasibility study of the project. “The exploration of the project on the Midfield area found 5.9 grams of gold per tonne at a depth of 112 meters per. This affirms the high mineralization in the main part of the Bayan Khundii deposit,” said the CEO of the company Peter Akerley. The share prices of ERD at the TSX reached CAD 0.19.

Coal

SouthGobi Resources, operating at Ovoot Tolgoi mines increased its coal sales by over 80 percent to 1.1 million tons in the first quarter of the year. The average selling price of the company has decreased from USD 43 in 2018 to USD 34.9. The net profits have doubled from the previous year to USD 13.4 by reducing the cost.

Head of Taiwan D3522 regional rotary foundation Wang Chen Xi noted that Rotary clubs of Mongolia and Taiwan have been collaborating for many years. Taipei Sun Ren Rotary club started implementing a project on eyesight protection since 2016 in partnership with Rotary Club of Ulaanbaatar. In the framework of the project, training for physicians, specialists and targeted group have been conducted. Moreover, ‘Low Vision Center’ was established at the Mongolian National University of Medical Sciences. This time, Dun Fan rotary club and rotary club of Ulaanbaatar Peace Avenue are intending to make contribution to the health of the people through the implementation of water purification project in some provinces that use underground water.

“Water purification project running in Mongolia is one of the six main issues that International Rotary Club renders financial assistance. We have received donation and support from 14 rotary clubs of Taiwan, Mongolia and South Korea. The Representative Office of Taiwan in Ulaanbaatar is supporting us as well. As a result of collaboration of rotary clubs, Mongolians will have possibility to drink safe water,” said Head of Taipei Dung Fan Rotary Club Liu Xiao Mei.

The cashmere supply chain stakeholders are discussing the sector’s sustainability, future development trends, and the opportunities for ensuring sustainable development and long-term innovative cooperation that would solve environmental, social and economic pressing issues. Moreover, views are being exchanged on optimal solutions for the issues challenging herders and cashmere producers and retailers.

The participants are having discussions and seeking solutions with consideration of the fact that the industry is fully dependent on state of rangeland.

In his address at the beginning of the meeting, Minister D.Sumiyabazar gave brief information on the current political, economic and social situation of Mongolia, while noting that the meeting serves the purpose of ensuring implementation of the agreement.

“I would like to emphasize that Germany’s support, especially cooperation in the fields of trade, investment, mining, industry, and technology has a significant role in strengthening economic growth and ensuring sustainable development in Mongolia. We are interested in enriching Mongolia-Germany comprehensive partnership relations and cooperation with economic content on a mutually beneficial basis. I agree that partnerships between private entities of the two countries are very important in deepening economic ties and boosting investment”, said the Minister.

In addition, Head of the Geological Policy Coordination Department at the Ministry of Mining and Heavy Industry B.Munkhtur reported about the Mongolian government’s policies and actions on rare earth elements.

The sides reviewed implementation of the intergovernmental agreement and the previous meeting’s decisions as well as progress of the projects and programs being jointly carried out. The working group also discussed proposals made from the financing working party of its economic committee comprised of representatives of public and private sectors of the two countries and further actions to be taken.

The company's share price fell 36 percent to MNT 6,400 at the Mongolian Stock Exchange (MSE) over the last year. The decline is mainly due to the Professional Inspection Agency's activity that caused temporary delay in share sales for over two months in connection with the mining operation of the company.

In addition, the companies that are operating at the residual deposits of Tavan Tolgoi have been facing a major problem in the customs sector last year. The Chinese side delayed the import at the Gantsmod port because of the introduction of smart systems, which resulted in the 21-day suspension of the Tavantolgoi-Gashuunsukhait road to reduce the overload at the road.

The government is working to improve the capacity of the border checkpoint
Tavan Tolgoi JSC reported in its financial statements that the road was closed for 18 days due to weather conditions. However, Erdenes Tavan Tolgoi JSC, which operates at the same deposit with TT exported 13 million tons of coal in 2018, while Energy Resources LLC's coal production reached 10.9 million tons.

The government is working to improve the capacity of the border checkpoint. Umnugovi province Governor's Office reported that the Gashuunsukhait is waiting for a transaction of CNY 140 million or MNT 50 billion in part of the Chinese grant.

According to the document, citizens of Ukraine and Mongolia may stay in the territory of another country for a period not exceeding 90 days within a 180-day period.

The Cabinet of Ministers authorized Ambassador of Ukraine to Poland Andriy Deshchytsia to sign the agreement.

The campaign called "safe workplaces" is co-organized by the National Police Agency (NPA) and the State Professional Inspection Agency, "with the aim of improving occupational health and safety," Buyant Baatarkhuu, head of the press office of the NPA, said at a press conference.

During the month-long campaign, the organizers will provide people with information about the importance of following safety procedures in workplaces through both traditional and social media, and give lectures on how to prevent workplace hazards.

There were 947 workplace health and safety cases reported across the country over the past three years, causing 88 deaths, according to the NPA.

In order to solve this problem, the cabinet is planning to impose quotas on lamb and goat meat exports due to the shortages in the capital. Ironically, the number of livestock in Mongolia reached 85 million head this year; however, people in Ulaanbaatar can no longer afford to eat meat on a daily basis because of the prohibitive prices.

Currently, the price of beef has reached MNT 16,000 per kg at the big markets in Ulaanbaatar. The Mongolian government’s effort for stabilizing meats price has become ineffective: last autumn, for example it stockpiled a total of only four tonnes of meat – the previous year it had been 15 tonnes; this was quickly sold at 127 sites in Ulaanbaatar city. Stockpiled meat costs 40 percent less than market prices.

The policy to boost meat exports and, thus, generate revenue is having other negative effects. The record numbers of livestock in Mongolia are putting a strain on grazing and pasture land, which combined with climate change, could have very detrimental effects for traditional livelihoods.

This year, 478 thousand hectares of areas will be cultivated for crops, including 387 thousand hectares for grains of which 368 thousand hectares for wheat, 32 thousand hectares for fodder plants, 29 thousand hectares for oil plants, 13.8 thousand hectares for potatoes, 8.9 thousand hectares for vegetables and 7.3 thousand hectares for fruits and berries.

Over 1560 entities, 950 cooperatives and 16 thousand households in 14 aimags are currently making cultivation, reported the Ministry of Food, Agriculture and Light Industry.

Merkel’s administration announced an exit from coal power in February, saying it will wean the nation off the fossil fuel over two decades. The government pledged to compensate utilities and cushion the blow in lignite and hard-coal centers in Eastern Germany and on the Rhine River. As many as 60,000 jobs are linked to coal mining and power generation.

The government is “keeping it’s promise” to switch the regions’ fossil-fuel linked jobs into clean energy, Economy Minister Peter Altmaier said in a statement in Berlin Wednesday. The aid package — which needs parliamentary approval — will help Germany achieve its climate goals for 2030 and put it on the right path for meeting 2050 targets, he said.

Regional governors in the coal regions have demanded front-loading of financial aid, meaning they want to see money paid out quickly to turn fossil-fuel assets into new enterprises and jobs. The potential political fall-out of not doing so may be costly.

The cabinet’s decision on structural aid coincides with the European Parliament election. The populist Alternative for Germany party has strong support in eastern states and the party opposes plant closures and questions climate change.

The coal exit is also being managed by a second bill that will spell out the pace of plant closures and potential compensation for utilities like RWE AG, STEAG GmbH and Uniper SE. The government expects to finalize a draft by the fall.

(By Brian Parkin and Birgit Jennen)