COVID-19 is sinking the world economy in a way that no one has ever seen before. Economies that saw growth for the last 3-4 decades, such as China and Australia, shrank for the first time in the first quarter of this year. Oil and equities went through a pitfall of a collapse in such a short time that is, once again, not seen by anyone alive today.
But Mongolia was busy electioneering. The election polling was held as expected and one of the political parties came on top to nobody’s surprise. The winning party now bears a hefty load of ending the crisis and bringing growth. The promised scenario and forecasts of politicians will shift entirely after the election. They know full well how this will play out. For someone who emptied his last pocket, U.Khurelsukh will be left with nothing but a red balance sheet.
Mongolia’s “weapon” against the crisis triggered by the pandemic is the most interesting key point here. At least the Oyu Tolgoi is up and running. Coal export is tightening up and fast. The practice for Mongolia in overcoming a crisis is to move the big projects. Unfortunately, both the MPP and DP platforms did not include any major projects. The same old Oyu Tolgoi, Tavan Tolgoi, and oil refinery projects… the projects that have passed onto three election terms are still mentioned this time. The DP at least announced a short-term policy against the crisis to some extent. No other projects and programs remain on sight.
Also, it seems the Ministry of Mining and Heavy Industry and Mongolbank have prepared some “ammunition” against the crisis under their respective authority. Same as the old lady in the folklore, the central bank and the ministry are desperately digging through what has remained. The policy on backing the gold industry paid its fair share of contribution in easing the crisis impacts in 2013-2016. The “Gold-2” project of 2017 is set to end this year, however, the core objective of the project, which is to support companies from the current assets, is under discussion to be implemented at the end of the project. The plan is to increase the emptying gold reserve by granting up to MNT 500 billion with an annual interest of 3 percent to gold firms and increase its turnover in the coming years. Extracting gold is as important as printing the US dollar bill. As such, the new Cabinet should understand that focusing on the gold industry is as equally important as increasing coal export.
No choice but to rely on gold
The first step to protect our small economy from this large wave of crisis is to increase our foreign exchange reserves. The Gold-2 program aimed at this goal was timely and effective against the economic recession caused by a fall in commodity prices.
Gold companies are able to find investments without the Government’s support
We spoke with G. Chintumur, CEO of G and U Gold LLC as representative of the gold mining companies and which has been operating since 2001.
Party agendas: Minerals sector
This election which will run under a degree of limitation due to the pandemic saw a record number of candidates in the history of Mongolian parliamentary election – 606 people.
Coronavirus and iron ore paradox
Iron ore successfully overcame global economic recession, with spot and futures prices performing the best this year. Iron ore per ton reached 100 USD in the last week of May as a result of the convergence of positive demands and negative supply expectati
Coal export falls 9 million tons as disruption remains
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.
Asia Mining сэтгүүлд тусгагдсан үзэл бодол нь редакцийн албан ёсны байр суурь байх албагүй. Бид нийтлэгдэж буй мэдээллийг нягтлахад бүхий л хүчээ дайчлан ажилладаг хэдий ч мэдээллийн туйлын үнэн бодит байдлыг баталгаажуулахгүй болно. Тиймээс сэтгүүлд дурдагдсан мэдээлэлд үндэслэн уншигчийн зүгээс гаргах аливаа шийдвэрт Asia Mining сэтгүүл ямар нэгэн хариуцлага хүлээхгүй.
Сар тутмын Asia Mining сэтгүүлийн бүх эрх хуулиар хамгаалагдсан. Иймд сэтгүүлийн эх төдийгүй “Asia Mining Magazine” худалдааны тэмдэгтийг “Asia Mining Magazine”-ийн зөвшөөрөлгүйгээр хэсэгчлэн болон бүтнээр нь дахин хэвлэх, хайлтын системд байршуулах, цахим, механик, фото хуулбар зэрэг ямар ч хэлбэрээр хувилж олшруулах, түгээн тараахыг хатуу хориглоно.
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