Mongolian Economy and Finance

  In one of the most surprising steel-related commodities markets ever, the price of one key ingredient in the steel-making process, iron ore, is collapsing, while the price of another key element, metallurgical coal, is hitting record levels. In rough terms, about 1.2 tonnes of iron ore and 0.5 tonnes of metallurgical coal are needed to produce one tonne of crude steel. China’s government has targeted the steel industry, which is one of the biggest polluters in the country, reportedly accounting for 10-20% of carbon emissions in China, to reduce overall carbon emissions. Remarkably, the government now wants steel production in the country to be flat to down for the full year 2021, after rising around 12% in the first half of 2021. This of course requires a marked reduction in steelmaking in 2H 2021. (It has the side “benefit” of slowing China’s economy — a goal of the county’s leadership after strong government stimulus-fueled growth put in place to combat COVID-19.) In ...

TORONTO (miningweekly.com) – Three Canadian provinces rated tops in the Fraser Institute’s Policy Perception Index (PPI), although Australia surpassed Canada in 2015 to become the most attractive region in the world for investment. 

Xanadu Mines ( ASX:XAM ) has revealed some spectacular rock chips from the newly discovered quartz-carbonate-sulphide veins at Oyut Ulaan copper-gold project (90% XAM), which is located within the Dornogovi Province of southern Mongolia.

A Korea-based resources company, Freegood Mines' Undur Naran Copper and Gold Project is recognized 12.4 tons of gold reserves by government of Mongolia.

Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries.

For some, the grass always appears greener for mining projects in distant and foreign jurisdictions.

The developer of Australia’s US$15bn Carmichael coal mine, one of the world’s largest fossil fuel projects, said it will start hiring the over 5,000 people it needs for the construction phase beginning next year.

Chinese president Xi Jinping’s visit to Mongolia last week was a timely reminder of why foreign investors have poured money into the country over the past five years.

The mining sector accounts for 18.5 percent of Mongolia’s gross domestic product (GDP), 66 percent of its industry, 83.2 percent of overall exports, 17.5 percent of contributions to the state budget and 81 percent of foreign investment.

Changes to Mongolia’s mining legislation will open up vast new tracts of land for exploration and pave the way for new licence issuances.

Colossal mineral deposits have led to Mongolia recording record levels of economic growth, but the government must stop passing populist laws if the country is to realise its potential

The Mongolian government plans to more than double the size of the territory open to mining and exploration in Mongolia.

Mongolia is attempting to inspire market confidence in its economically crucial mining sector after foreign investors started staying away in droves in response to years of political vacillation.

The Mongolian parliament has revoked a four-year suspension on granting new mineral exploration licences to attract investments in the sector and boost economy.

In an effort to regain investors’ confidence in Mongolia, its parliament approved Tuesday major changes to the country’s 2006 Minerals Law , and passed a new law on energy to help expand that sector.

(Corrects information in third paragraph to show that Mongolia’s parliament voted to block government investment in the Tsagaan Suvarga project.)

With an abundance of minerals and one of the world's fastest growing economies, Mongolia is a hotspot for mining companies. But, lawmakers are struggling to ensure the environment doesn’t pay a heavy price.

Traditional lifestyles are being challenged by the mining boom in Mongolia.

Mongolia is to more than double the area of land which can be mined in the hope of attracting $1bn of investment this year.

Mongolia is seeking to expand its area available to mining to a fifth of the country, and by the close of the decade to end its dependence on foreign oil, according to a senior government official.