Mining sector drags on the economy
The national budget gap widened and the deficit reached MNT 4.5 trillion. This year, our country has “produced” the largest loss ever in history. The deficit is expected to increase even more this year as well. The number of people who lost their jobs and lost their income has increased in recent periods, and social life has become increasingly frustrated, stressed, and inactive.
During this hard time, only the mining exports are continuing, and that allowed us to keep on earning foreign exchange and budget revenues, fed the economy, and continuing our livelihoods.
One real positive news is that gold exports reached 30.5 tons, indicating that copper itself succeeded in fulfilling its role. The coal sector has not been hit by a pandemic but it got into an infrastructure “ban” and has yet to achieve an optimistic budget outlook again. However, the infamous mining sector has not cut the salaries, pensions, and benefits of 220,000 civil servants, doctors, teachers, the elderly, and children. During this difficult period, the mining sector even decided to pay every household’s electricity, heating, water, and garbage bills until the first half of 2021. If we look at the big picture, data indicates that export earnings were increased in 2020. This means the infamous gold basically saved our lives in this time of the pandemic.
The revised draft of the Labor Law, which is being discussed in the Parliament, stipulates that miners must work 14/14 per shift. Not only that, but the word “roster”, which has become widely used, was legalized as “Jasaa” for the first time in the Labor Law. In order not to disrupt exports, the report has been prepared on how the rural provinces, especially the main mining region of Umnugovi province, keep working as planned without getting infected by the Covid-19.
China is likely to reduce its imports of coal from abroad and continue to not lift sanctions on Australia. Our southern neighbor is becoming more transparent in its policy of putting new mines into operation immediately, cultivating them, and supporting its national enterprises.
Stock prices of Mongolian companies listed on international stock exchanges have risen quite higher than expected in 2020. Stock prices fell sharply in the first half of the year but rebounded at the end of the year. These are the highlighted information in this issue of Asia mining magazine.
Talks over “dispute” around Oyu Tolgoi
The periodic “dispute” between Oyu Tolgoi’s shareholders has begun. As a tradition, both the timing and the setup are right for another round of the fight.
In the last 13 years alone, the budget income from “Erdenet Mining Corporation”, which has been carrying Mongolia’s economy for half a century, is over MNT 1 trillion.
“Stashed away” gold saves minerals exports
Export revenues from the country’s minerals and petroleum sector went up by 400 million USD in 2020. This led to total monetary value of the sector exceeding 6.8 billion USD, making up 93 percent of total export revenues.
Australia not the only country under Chinese blockade
According to China’s General Administration of Customs, the country’s coking coal and thermal coal imports hit 264 million tons, down 10.8 percent year on year.
Miners to work on 14/14 roster
While possible overtime for miners on the 20/10 roster is estimated to be 806 hours, the overtime on the proposed 14/14 roster goes down to 200 hours.
Mining donations and cooperation agreement
The total amount of donations from the mining sector makes up 0.8 percent of the total revenues brought to Mongolia. Some soums and communities don’t reap this benefit.
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.