“CHULUUT” FLUORSPAR PROCESSING PLANT PROJECT UPDATE
The Chuluut project’s total progress is reached up to 94% this week constituted by equipment foundation 94%, sandwich panel 98%, structural and covering material 100%, electrical installation 45%, pipe and plumbing work 60%, external boiler 32%, and flooring 100% completion. Power connection work will be initiated next week.
SALES TRIP TO ZAAMAR SOUM, TUV PROVINCE
Our sales team head to the mines of Zaamar soum for MRO tools sales trip from September 2 to September 4.
In UB, you can visit our showroom to experience DUROFIX cordless power tools, HANS high-quality hand tools, and WISDOM cordless & corded miner’s cap lamps.
DUROFIX is one of the premier portable power tool manufacturers and distributors in the world. The product range covers construction, woodworking, automotive and industrial tools for professionals.
HANS TOOL has maintained a position of leadership on manufacturing quality sockets wrench and tools over 40 years’ experience in Taiwan. Hans tools are full range items with a complete size of tools but also offer full warranty. Special auto tools, Hand tools and Master tool kits are available in the showroom.
New Wisdom Investment Limited (WISDOM) is an integrated enterprise, which focuses on brand, R&D, sales, production, and supply chain; specialized in producing LED miner’s cap lamps and charging devices. WISDOM is always striving to use the best materials making the safest cap lamps!
Moreover, you can give a customized special order from world-renowned brands catalogs.
ECONOMY
CENTRAL BANK UPDATES FINANCIAL STATISTICS
Last week, the Bank of Mongolia provided update on the financial indicators of Mongolia and introduced the latest or 14th financial stability report released by the central bank jointly with other regulatory agencies.
As introduced by G.Dulguun, First Deputy Governor of the Bank of Mongolia, the financial stability report highlighted about the negative impact posed by the COVID-19 pandemic on the financial market stability of the country. Changes in the balance of payment, revenues and lending show the effect of the pandemic on Mongolia’s economy. In particular, the price and volume of export commodities have been dropping, leading to the decline in the export revenues.
In the second half of this year, the balance of payment deficit equaled to USD 679.2 million, and the government budget deficit decreased by 21.4 percent compared to the same period of last year and government budget balance showed a deficit of MNT 2.2 trillion.
Source: Montsame
EUROCHAMBER: EXPORT CREDIT GUARANTEE AGENCY NEEDED TO SUPPORT MONGOLIAN EXPORT GROWTH
According to the Export Finance Study conducted by EuroChamber Mongolia in cooperation with MNCCI and funded by the European Union via the TRAM Project, Mongolian non-mining exports can be increased by 50-80%, if suitable export financing solutions would become available. Export Credit Guarantee scheme, as a cornerstone of Government’s export promotion scheme is a necessary prerequisite for this.
• Export financing accounts today for less than 0.5% of the total corporate & SME loan portfolio of Mongolian commercial banks.
• The creation of an institutional and legal framework for export promotion is urgently needed (i.e. establishment of an ECA). Pre-export financing guarantee scheme is critically important, in addition to post-shipment export financing, both for non-mining as well as mining products.
• The European Union will continue supporting Mongolia's economic diversification and equitable growth.
• EuroChamber Working group to be established to improve the legal framework for international trade finance instruments, esp. factoring and forfaiting.
Source: GoGo News
THERMAL POWER PLANTS TO BE BUILT IN 10 PROVINCES IN COOPERATION WITH ROK
Minister of Energy N.Tavinbekh has received Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Mongolia Lee Yeo-hong.
Congratulating the Minister for his appointment, the Ambassador noted that this year marks the 30th anniversary of the establishment of diplomatic relations between the two countries.
Furthermore, the Ambassador noted the deepening bilateral cooperation in many fields and expressed confidence in the successful realization of the project to build thermal power plants in 10 aimags. The project is significant to not only reduce local air pollution, but also improve quality of heating and supply the aimags with hot water.
The Minister emphasized that there is an opportunity to cooperate in the field of renewable energy, including hydropower.
Source: Montsame
COVID-19 SETBACKS TO LAST UP TO 3 YEARS
A large-scale survey on the socio-economic impacts of COVID-19 finds that the pandemic may cause economic challenges for two to three years in Mongolia.
The survey was conducted by the United Nations Resident Coordinator's Office in Mongolia with the United Nations, its systemic organizations and other international organizations.
Director of the Multilateral Cooperation Department of the Ministry of Foreign Affairs D.Gerelmaa shared results of the survey on Monday, highlighting that the full impact of the pandemic is yet to come.
“The survey suggests that Mongolia has been strongly affected by the COVID-19 pandemic. However, this is not the full impact. Adverse economic impacts are expected to continue for two to three years,” D.Gerelmaa said.
According to the survey, Mongolia’s economy contracted by 10.7 percent in the first half of this year due to a 30 percent decline in growth of the mining sector, which accounts for 24 percent of GDP.
Source: The UB Post
“E-MONGOLIA” UNIFIED DIGITAL PLATFORM IS UNDER DEVELOPMENT
The Telecommunications and Information Technology Authority of Mongolia held a virtual meeting with delegates from E-Governance Academy of Estonia and the Ministry of Digital Transformation of Ukraine on August 27.
Mongolia is realizing number of projects at stages in aims of delivering state service without bureaucracy, accessible, transparent and easy. And “E-Mongolia” platform is under development to ensure their coherence and provide citizens with online state services. Mongolia has selected e-governance of Estonia as a model and intends to define current state of digital development in Mongolia in collaboration with Estonia's E-Governance Academy and to develop the most suitable design for Mongolia.
About it, Head of the Standing Committee on Innovation and Online Policy, MP N.Uchral said “Further, we will deliver state service to our citizens with the help of “E-Mongolia” unified online platform. 106 services out of total 181 governmental services planned to be delivered online to the citizens have been transferred into online platform so far.
Source: Montsame
BOM PURCHASES 1.7 TONS OF PRECIOUS METAL IN AUGUST
In August 2020, the precious metal purchase of the Bank of Mongolia (BoM) was 1.7 tons, raising the BoM’s total precious metal purchase of 2020 to 14.8 tons, of which 13.1 tons were gold and 1.7 tons were silver. It means the amount of precious metal purchase increased by 5.0 tons compared with the same period of previous year.
In August, the BoM branches in Darkhan-Uul and Bayankhongor aimags bought 87.8 kg and 209.7 kg of precious metals respectively. The average price of BoM’s purchase of 1 gram of gold was MNT 180,096.17 in August.
Source: Montsame
46 ELECTRIC BUSES TO BE PUT INTO SERVICE IN OCTOBER
Next month, a total of 46 electric buses, 10 double-decker and 36 single-decker buses, will be put into public transport service in Ulaanbaatar.
Some of the buses will operate in existing routes and the rest in new routes and bus chargers capable of fully charging an electric bus in one hour will be installed at every electric bus terminus and the depot of the bus company in charge of the electric bus service.
The electric public transport vehicles are expected to pay back their investment within 6 years into service and make profits in the following 6 years.
Source: Montsame
COAL EXPORT FALLS 9 MILLION TONS AS DISRUPTION REMAINS (MAY/JUNE PRINT ARTICLE) - EDITORIAL
The minerals export has fallen by USD 1.3 billion year-over-year in May according to the National Statistics Office as the looming impact of the pandemic prolongs. Copper concentrate export shrank USD 278.6 million from the year-earlier, while coal export dipped USD 761 million, becoming the biggest laggard in the collapse. But it was a recovery nonetheless compared to the previous months. About 400-700 coal trucks are crossing borer at the Gashuunsukhait border checkpoint, while the average cross-border transportation at Shiveenkhuren checkpoint is at about 450-500. The coal export jumped 117 percent in May compared to the previous month, to 2.17 million according to the data compiled by the Customs Office.
But this is still 41 percent lower than the same period of last year. In specific, 6.3 million tons of coal worth USD 512.7 million were exported last month and that is compared to the 8.8 million coal that adds up to USD 758.8 million of last year.
Source: Asia Mining
UNDP: THINKING FAST AND SLOW IN TIMES OF CRISIS - EDITORIAL
The call came through the cold of winter, sudden and unexpected. Schools are closed, said my son on the phone, and asked me to pick him up immediately. At the peak of workloads in January, it meant yet another arrangement, which was soon followed by a list of different demands brought by a so-called Novel-Coronavirus. Just next door to China, Mongolia acted fast in the face of danger, when there was very little news about a new and deadly virus spreading quickly through the Wuhan region.
During this unprecedented situation, parents like me needed to find ways to secure help, especially to back-up services provided by the teachers. It meant not only the schooling but filling the void of passing time, which was occupied by the school’s curriculum in the safety of the academic environment before the pandemic hit. The events unfolding since then have triggered a different level of realization and recognition in the community, on how unprepared we were to face a crisis like COVID-19.
Source: UNDP
MONGOLIA HAS CONQUERED CORONAVIRUS, BUT IT'S ECONOMY IS PAYING THE PRICE - EDITORIAL
Mongolia has achieved notable success in protecting the health of its citizens and preventing the community spread of COVID-19. As of mid-August 2020, Mongolia had experienced no deaths from COVID-19 and 300 cases, all imported. Mongolia’s containment strategies allowed the country to re-open businesses internally and hold a successful national election. But its success has come at a price, as the country is now struggling to restart its export-driven economy and deal with mounting international debts.
In January 2020, Mongolia began working closely with the World Health Organization (WHO) and activated the country’s inter-agency emergency management system. This empowered the State Emergency Commission (SEC) — a governmental body led by the National Emergency Management Agency (NEMA) — to lead the country’s coronavirus response.
Mongolia began health screening of travellers in late-January and halted all international flights and trains by early March when its first case was discovered.
Source: NationalInterest.org
BUSINESS
RIO TINTO AND TURQUOISE HILL REVEAL NEW OYU TOLGOI MINE PLAN
Higher production and lower mineral reserves are expected at Rio Tinto’s Oyu Tolgoi copper-gold project located in Mongolia, according to a new technical report filed by Turquoise Hill Resources on Aug. 31.
The technical report was filed as a follow-up to a new feasibility study for the project released on July 2, which detailed a new mine design for the project’s Hugo North Lift 1 block cave lift. Turquoise Hill – of which Rio Tinto owns 50.8 per cent – plans to leave pillars measuring 120 metres wide separating one of the panels (Panel 0) from the other two panels (Panels 1 and 2) that comprise Lift 1. According to the report, this new design “has had the effect of reducing the Hugo North mineral reserve estimate but has also increased confidence in the projected performance of the planned mining operation.”
Source: CIM Magazine
See also: Turquoise Hill says uncertain when Oyu Tolgoi shaft work can resume
Rio Tinto still targeting first Oyu Tolgoi production as early as October 2022
Turquoise Hill Has Good Chances To Continue Its Upside Move Above $1.00
Mongolia urged to sell stake in Rio Tinto mine
ERDENE DELIVERS BAYAN KHUNDII GOLD PROJECT FEASIBILITY STUDY
"The Bayan Khundii feasibility study results confirm the robust returns of this project in its base case, and the significant upside from ongoing district-wide exploration and rising gold prices,” said Peter Akerley, Erdene’s President and CEO. “As a low-capex, low-opex project within an emerging gold district, Bayan Khundii offers investors and stakeholders strong leverage to gold as we seek to grow the resource base and move towards the goal of first production in early 2022.”
“An 18,000 metre exploration program is underway, currently focused on upside in the Bayan Khundii area and initial drilling of the recently discovered Dark Horse prospect,” continued Mr. Akerley. “This program has the potential to add to Bayan Khundii reserves and to expand resources across the broader district.”
“On the development side, we have commenced the construction readiness, detailed design work and permitting processes required to move rapidly to construction,” concluded Mr. Akerley.
Source: Erdene Resource Development Corp.
XANADU MINES FAST-TRACKS EXPLORATION IN MONGOLIA
Xanadu Mines (XAM) is accelerating exploration work at its Kharmagtai copper-gold project with the proceeds from a recent equity placement.
Located 420 kilometres southeast of Ulaanbaatar, the project sits within the South Gobi porphyry copper province, which hosts a number of established porphyry deposits.
This includes the Oyu Tolgoi copper-gold operation 120 kilometres to the south, as well as the Tsagaan Suvarga porphyry copper-molybdenum development 170 kilometres to the east.
A key part of the expanded program, which is expected to continue through to the end of the year with roughly 23,000 metres of drilling, is the addition of two more diamond drill rigs, bringing the total to three.
An initial phase is currently under way, which will utilise extensional drilling to outline the mineralised system at the Kharmagtai Project. This will map the system by following broad geological and geochemical trends, allowing for a more targeted approach to drilling in the second phase.
Source: TheMarketHerald.com.au
AUSTRALIAN COAL PRODUCER TERRACOM NOTES REFINANCING RISK
Australian thermal coal producer Terracom said on Tuesday that refinancing risks linked to a large eurobond repayment due next year had raised uncertainty over its ability to stay in business, as it logged a steep loss in its full year results following the sale of two Mongolian coal mines.
Terracom logged a net loss after tax of A$146.1 million ($108.08 million), down from a loss of $11.3 million the prior year due mostly to its sale of Mongolian assets for which it booked a $101.3 million loss.
Terracom has a liability of A$215 million ($159.06 million) due to a Listed Euroclear Bond which is due to reach maturity on 30 June 2021, it said in the notes to its results filed with the Australian exchange.
"Significant progress had been made on refinancing this facility," Terracom said.
Source: TheIndiaTimes.com
ENVIRONMENT AND TOURISM MINISTER MEETS WITH MOBICOM ON POTENTIAL FOR COOPERATION IN TOURISM
Minister of Environment and Tourism D.Sarangerel met with Member of Board of Directors of Mobicom Corporation Tatsuya Hamada, exchanging views on cooperation possibilities in tourism industry.
“Information technology and tourism industry have an inseparable connection in this modern times. Therefore, we see that our cooperation could be developed a wider scope,“ Mr. Tatsuya Hamada said.
In response, Minister D.Sarangerel said we know that Mobicom Corporation has realized numerous projects and programs within its social responsibility. There are wide opportunities and necessity to collaborate in environment and tourism spheres. In particular, there is huge possibility to boost tourism in combination with information technology. As the Minister, I would support cooperation at all levels.
Source: Montsame
See also: Environment Ministry to cooperate with WB in relocation of environmentally harmful factories
FOREIGN MINISTER MEETS PRESIDENT OF MONGOLIAN NATIONAL CHAMBER OF COMMERCE AND INDUSTRY
Minister of Foreign Affairs N.Enkhtaivan received President of the Mongolian National Chamber of Commerce and Industry (MNCCI) O.Amartuvshin on August 28.
Minister N.Enkhtaivan emphasized that MFA would cooperate in efforts for realizing Government policies and regulations on export promotion, especially increasing production and amount of exports of non-mining products, facilitating trade and creating favorable business environment as well as attach attention on continuing implementation of actions reflected in the memorandum established between the MFA and the MNCCI.
The sides considered it crucial to mitigate COVID-19 impact to the economy, revive and activate exports of non-mining products, provide support to the shop and online trading center for Mongolian goods to be established in Berlin and Hohhot within ‘Mongol Export’ program, promote Mongolian products and services and to co-organize international fair and events with aims to develop Mongolian brand products.
Source: Montsame
STARTUP BUSINESSES TO BE GIVEN FREE CONSULTING SERVICES
Ulaanbaatar Innovation Center and Development Solutions NGO signed today a Memorandum of Understanding within the framework of the implementation of USAID’s projects and programs towards increasing lending to SMEs and reducing unemployment.
Within the framework of the MoU, joint projects, training and consulting services for startups, SMEs and producers will be carried out at the Ulaanbaatar Innovation Center, Bayankhoshuu and Selbe Business Incubator centers.
During the signing of the MoU, B.Munkh-Orgil, Head of the Ulaanbaatar Innovation Center, said that it has launched a five-year project to support startup businesses in cooperation with the ‘Development Solutions’ NGO. Within this frame, a number of trainings are planned for small and medium businesses. For instance, it will provide training and advice to businesses on project writing, drawing financial resources from international financial institutions, and corporate governance. The first training will start next month at the Bayankhoshuu sub-center and the Ulaanbaatar Innovation Center.”
Source: Montsame
ELIXIR ENERGY OPERATIONS UPDATE
HIGHLIGHTS
• Nomgon 3S strat-hole final logged coals total 88 metres
• Nomgon 4S strat-hole extends resource area and logs coals of 35 metres
• Seismic processing near finalization
• Exploration program across multiple new potential sub-basins due to commence shortly
The Company previously reported that the Nomgon 3S appraisal strat-hole encountered net coals of ~78 metres, as measured by wellsite geologists. Final wireline logged results indicated a higher figure of 88 metres.
The Nomgon 4S appraisal strat-hole has now been completed. A key objective of this well was to continue to confirm the presence of coal in the Nomgon sub-basin, this time stepping out in a different direction than the most recent Nomgon-S3 strat-hole. This was achieved, with 35 metres of net coals logged. The total depth of the well, at 202 metres, was less than prognosed, possibly indicating some localised thrusting at work.
Source: Elixir Energy
MONGOLIAN GIFT GIVING CULTURE REVAMPS CUSTOMER SERVICE
Self-indulgent gifts are sometimes necessary to make yourself happier, boost your confidence and allow yourself to have something special. But it is much sweeter when someone else does it for you.
Under this philosophy, GOBI Cashmere offers giveaways for purchases above a certain value point. From handmade cashmere socks and hats to high-quality woven blankets, the Mongolian cashmere brand is very – almost excessively – generous with its gifts. The company says this is their way of expressing gratitude to customers and sharing Mongolia’s culture of gift giving.
“GOBI welcomes you with a warm heart and warm gifts. There’s no warmer greeting than the traditional Mongolian custom - giving gifts to those who visit our homes. This centuries-old tradition came about as a deep-rooted practice of hospitality. When someone visits a family, upon the departure of the guest, the host family offers treats or gifts to express their feeling of gratitude for paying a visit…”
Source: The UB Post
ION ENERGY HITS MAJOR MILESTONE AS COMPANY BEGINS TRADING ON THE TSX-V UNDER THE TICKER ION - VIDEO
Ion Energy CEO Ali Haji joined Steve Darling from Proactive Vancouver with news the company is now officially trading on the TSX Venture Exchange under the stock ticker ION. Haji discusses going on the exchange and the money they had to raise to get there. Haji also told Proactive what it means about the company that they were able to raise the 2.7 million during the pandemic.
Source: Proactive Investors
PROJECTS AWAITING PROGRESS - EDITORIAL
The rise in the stock price of mining companies working in Mongolia and registered abroad -- such as Xanadu Mines, Mongolia Energy Corporation (MoEnCo), Mongolian Mining Corporation (Energy Resources) and others -- is a welcome indication that foreign investors expect stability here following the MPP’s return to power after a landslide victory in last month’s election. The highest growth the Hong Kong Stock Exchange was recorded by MoEnCo, and though the others did not match its 400-percent rise on a single day, shares of Energy Resources and SouthGobi Resources (SouthGobi Sands) also have risen by between 32% and 45%. It is now up to the new Government to make sure that investors’ confidence is not misplaced.
The economic front is full of challenges. No one has any clear idea on how to navigate the uncharted waters in which the global economy is floundering because of the pandemic.
Source: Mongolian Mining Journal
GOLD COMPANIES ARE ABLE TO FIND INVESTMENTS WITHOUT THE GOVERNMENT’S SUPPORT - EDITORIAL
The ruling party MPP maintained its majority by obtaining 62 seats at the Parliament through the recent election, making it clear that the policy of U.Khurelsukh-led Cabinet that spanned the past three years would be continuing. U.Khurelsukh was elected as Prime Minister for the second term and the Cabinet barely made any changes to its composition. The Prime Minister explains this as a way to preserve the continuity of state policies.
As a result of the eight Parliamentary elections, eight representatives from the mining sector were elected into office. Despite mining being the main engine of the country’s economy, the sector’s policies and legal environment have been defined and formulated by populists throughout time. It has become a practice that major issues surrounding the sector including the future of Oyu Tolgoi project, Erdenes Tavan Tolgoi’s IPO, Erdenet’s disputes, and the issue of new projects like Gatsuurt and Tsagaan Suvarga have been decided by the screams of populist politicians rather than the voices of the industry’s Ministry of sectoral experts.
Source: Asia Mining
See also: Interview with G. Chintumur, CEO of G&U Gold LLC
