The Mongolian People’s Party has scored another victory at the Parliamentary election-winning majority seats. U.Khurelsukh is reelected as Prime Minister for the second term and appointed its Cabinet members in accordance with the Constitution.
The new Government will have to face significant challenges and resolve any issues. It will have no choice but to admit and face the ugly truth that’s been kept away from the public in the past year. Ch.Khurelsukh who was reappointed as Minister of Finance has unabashedly announced his decision to revise the state budget. Economists have been warning way back since October last year that budget revenues and expenditures would need significant cuts due to an impending economic crisis in 2020. They repeated the same omen following the outbreak of the coronavirus and the resulting quarantine measures. Did the Finance Minister heed the word instead of prioritizing his election race? – No. He even claimed that budget revision was unnecessary merely two months ago. Surely, the cost of such selfish action is being paid by the jobs and incomes of thousands of companies and workers.
Chine has quelled the Covid-19 pandemic and is making its best efforts to reactivating the economy. It’s now clear that it will substantially increase infrastructure investments and revive its steel production. In parallel to the country’s steel production revival, iron ore and coking coal demands are rising. Iron ore outputs have been compromised due to spike in coronavirus cases in Brazil and Australia is scrambling to fill the vacuum by ramping up its exports by more than 10 percent. On the other hand, the cooling relations between Australia and China point to the shrinking of Australia’s space in China’s commodity supply chain.
Economies dependent on mineral resources are focused intently on taking advantage of market changes and expanding their positions in a short period. Unfortunately, Mongolia is too slow in capitalizing on this opportunity. Coking coal exports went down by 60 percent in the first five months of this year, making it more unlikely to recover the losses by the end of the year. A plethora of issues including balance of payment deficits, low-quality loans and layoffs will take over the economy like floodwater this summer. How soon the country will overcome the crisis depends on how the new Parliament and Cabinet realize that they don’t have much time to place blame on others, feel offense for the public, or figure out the pressing challenges of today.
In any case, this edition will present to you the variety of issues presented to the Parliament by the mining sector. These mining sector representatives who achieved enough seats to create a lobby group are anticipated to formulate proper policies, develop responsible mining, and ensure the sustainability of the legal environment. Otherwise, we must all be reminded that representatives from old-time populists have just been re-elected at the Parliament.
Miners secure more seats in the Parliamentary
As a result of the Parliamentary elections, eight representatives from the mining sector were elected into office.
The future of TTPP or “Raising bonds if necessary
The Government of Mongolia has pledged yet again to construct the Tavan Tolgoi power station.
Non-performing loan in mining sector surges
The lockdown imposed to prevent the spread of COVID-19 is affecting not only businesses but the loan performance of banks as well.
China to boost infrastructure investment and support the steel industry
China is overcoming the unprecedented challenges and is supporting the steel industry on the back of the new opportunity.
Balance of payments – miners to do the heavy lifting
Mongolia has experienced four consecutive months with the highest loss since recording its balance of payments statistics.
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