Norway is using its wealth to lead an exodus from coal www.mining.com

Norway’s proposal to divest billions more from coal, and instead use the world’s largest sovereign wealth fund to invest in solar and wind is a sign of things to come – and may just be what catapults the global clean energy market into sky rocketing growth.

The proposal is set to pass into law in June and follows supportive policy agreed by the ruling Conservative Party last year. It will see the Norwegian Oil Fund invest up to 2 percent of its global trillion-dollar portfolio into solar, wind and other renewable projects – a sum of over $20 billion.

Norway’s 2015 coal divestment policy is now being tightened to push out the remaining large miners and power company giants which have been too slow to move away from coal
From a conservative perspective, this re-calibration of the Oil Fund is both a necessary response to climate change, and a very shrewd financial decision. Those who fear these developments should take this as an opportunity to sit up and see which way the trend, and money, is flowing.

There are many reasons why this decision is financially sound.

There is already a thriving multi-trillion dollar renewables infrastructure market, which is expanding steadily. Renewables are becoming cost-effective. Dramatically falling costs, rapid technological advances and sustained levels of investment mean wind and solar promise to deliver the Norwegian people the same steady, high returns enjoyed by many other funds.

Conversely, coal is sinking – a toxic investment being propped up not because it has a future but simply so those heavily invested can eke out the last dollar before jumping ship.

And they are jumping.

Since 2013, according to the global energy think-tank, IEEFA, over 100 financial institutions have placed restrictions on coal lending.

The U.S. is leading the way in cancelling coal power plants, and even Japan has backflipped on its aggressive pro new-coal approach, choosing instead to halt both new construction and upgrades to existing plants thanks to policy introductions from Environment Minister Yoshiaki Harada. South Korea – once touted by coal executives as a major future market – has stopped issuing permits for new plants.

Bloomberg and other media report that the Norwegian government’s new proposed criterion will lead to the divestment of some $4.2 billion from well-known names including RWE, Glencore, BHP Billiton, Anglo America, South32, Sumitomo and Uniper. Norway’s 2015 coal divestment policy is now being tightened to push out the remaining large miners and power company giants which have been too slow to move away from coal.

And it’s not just coal.

Oil next?
Mark Lewis of BNP Paribas Asset Management (which manages $450 billion) has warned that renewables will inexorably corrode the profits of the oil-and-gas industry.

PR and lobbying won’t avoid the issue and the promises of carbon ‘capture and storage’ have proven to be challenging. Only a real shift out of fossil fuels and into solar and wind will save businesses from financial ruin.

The Norges Bank has already tolled the bell, warning that the Oil Fund would be almost $40 billion better off if it didn’t own oil and gas shares overseas
For now, the Norwegian Oil Fund has decided to maintain some of its overseas investments in oil and gas giants such as Shell and Exxon. Particularly given Norway’s double exposure to these declining markets through our state-owned oil giant, Equinor, these holdings are becoming a milestone around our collective necks, both environmentally and financially.

The Norges Bank has already tolled the bell, warning that the Oil Fund would be almost $40 billion better off if it didn’t own oil and gas shares overseas. It seems only a matter of time before this too is divested.

The irrefutable truth is that climate change is shaping our global economy, and renewables are our financial future. Norway is starting to get ahead of the curve and the faster it moves, the greater the rewards it will reap. Rather than cling on to stranded fossil fuel assets, our country has to use its wealth to propel us into and shape our future; a future that will bring sustainable prosperity, both financially and socially.

It is a step that will change the global energy market forever. Investors and governments that value high capital returns, and their future, would be wise to follow suit.

(By Lene Westgaard-Halle REUTERS)

Construction of Mongolian national film studio commences www.zgm.mn

Within the framework of the Maidar eco-city project, the groundbreaking ceremony of Chinggis Khaan, Mongolian National Film Studio takes place in Zuunmod soum, Tuv province. The first studio construction work will begin in summer.

IFC mulls financing package of up to $70m for Mongolia’s Khan Bank www.dealstreetasia.com

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed to extend a five-year financing package of up to $70 million to Mongolia-based lender Khan Bank, according to a disclosure. The financing package entails subscription to a five-year US dollar-denominated green bond of up to $30 million, and provision of five-year sub-debt of up to $40 million from IFC’s own account. The green bond will represent the first issued by a private sector company in the country. Through the partnership with Khan Bank, IFC aims to strengthen the capital base of the bank and to promote financing support to micro, small and medium enterprises (MSMEs). IFC has been a shareholder in Khan Bank since 2004, providing both financing and advisory support to the bank. The bank is the largest in Mongolia in terms of assets and has nationwide coverage of 537 branches. Shareholders of Khan Bank include Japan’s Sawada Holdings (41.30 per cent stake) and Tavan Bogd Trade (22.96 per cent), a Mongolian conglomerate engaged in businesses such as international trade, food production and services, and hospitality. The rest of the shares are owned by D. Khulan, director at Khan Bank, who holds a 13.32 per cent stake, and H.S. International (Asia) Limited (13.10 per cent) and IFC (9.32 per cent). As of December 2018, IFC had committed about $1.5 billion in Mongolia, supporting key sectors such as mining, banking, microfinance, hospitality, and services.

Turquoise Hill Provides Update on Parliamentary Working Group Report www.turquoisehill.com

Turquoise Hill Resources Ltd. (“Turquoise Hill”) today provided an update on a Mongolian Parliamentary Working Group Report (the “PWG Report”) regarding certain contractual agreements with the Government of Mongolia that underpin Turquoise Hill’s investment in the Oyu Tolgoi copper-gold mine.
On May 3, 2019, a summary of the PWG Report was received by our 66%-owned Mongolian subsidiary, Oyu Tolgoi LLC, which in turn owns the Oyu Tolgoi mine. Yesterday, Oyu Tolgoi LLC provided the Economic Standing Committee (“ESC”) with a written response to the summary of the PWG Report.
At this time, it is our understanding that the timeline to review the PWG Report by the ESC has not been fully established.
Ulf Quellmann, CEO of Turquoise Hill, is in Mongolia actively working on this matter with the Oyu Tolgoi LLC team as well as Rio Tinto.
Turquoise Hill will further update the market in due course.

Kincora raises C$6M for Mongolia exploration www.mining-journal.com

The private placement includes 60 million 10c units, each comprising one share and one warrant entitling a holder to acquire a further share at 25c each for a two-year term.

Mongolia launches national campaign to protect environment www.xinhuanet.com

ULAN BATOR, May 7 (Xinhua) -- Mongolia has launched a national campaign to protect the environment, according to a statement on the website of the country's Environment and Tourism Ministry on Tuesday.

See the ‘Hu’ live in UB www.news.mn

Internationally recognized Mongolian rock band the ‘Hu’ will give concerts in Ulaanbaatar on 23- 24 May just before they begin their European tour. These will take place at the White Rock Centre at 7.00 p.m. Tickets are available online (www.ticket.mn) from today at a price of MNT 99,999.

Defense Ministries of Mongolia and India hold consultative meeting www.montsame.mn

Ulaanbaatar/MONTSAME/. The Ninth Consultative Meeting between Defense Ministries of Mongolia and the Republic of India is taking place in Ulaanbaatar on May 6-8.

Mongolia is diversifying its economy to build buffers over rapid growth www.cgtn.com

Rising gold and copper prices have helped fuel growth in Mongolia, which heavily relies on mining. But how does the country save for a rainy day when global demand for the metals used in electric car and renewable energy are rising?

Mongolia launches fifth Innovation Week www.xinhuanet.com

ULAN BATOR, May 6 (Xinhua) -- Mongolia on Monday here launched its fifth Innovation Week to promote creativity in the public and private sectors.