In 2017, the United Nations’ World Tourism Organization (UNWTO) named the tourism sector as the world’s third largest export category with USD 1.3 trillion. That year, Mongolia received 542 thousand foreign visitors, of which 469.3 thousand were tourists. As the number of tourists in 2017 increased by 16.1 percent compared to 2016, Mongolia is considered as one of the leading countries by tourism revenue, according to UNWTO.

Aside from being listed in the top 10 countries to visit in 2019 by Forbes, Mongolia has also been listed as one of the most unique honeymoon destinations by Insider.

The President said:

“Dear citizens of Mongolia residing in every part of our country.

Dear ethnic Mongolians who are dispersed around the world.

The year is drawing to a close. We, Mongolians, are going to part with the 18th year of the 3rd millennium and welcome 2019—a year in which we will securely forge our future.

In the passing year of 2018, we overcame tough political-economic challenges, and consolidated our mutual trust and unity. The history of Mongolia has turned one year older.

2019 shall be a “Year of Drastic Reform.” As a result of “drastic reform,” with the participation and support of the public, a strong government, rule of law, and justice will prevail in Mongolia, and every citizen will become the owner of their wealth.

We inherited the intellect, grit, fleetness, and strength of our magnificent ancestors. The intellectual capacity of Mongolians is leading the world in mind sports.

In these times, as we are tending the fire of the thousands of years old the Mongolian state, we are making history that the future will judge.

In this golden moment, I wish a happy new year to you, the citizens of Mongolia and the ethnic Mongolians who are living around the globe.

To the soldiers and border troops who stand guarding the border, doctors and nurses, police officers, and emergency workers who are loyal to their oaths and carrying out their duties even at this moment of the welcoming of the new year,

To the peacekeepers who are serving in peacekeeping missions across continents,

And to the diplomats and staff members of diplomatic missions in Mongolia, to the representatives and staff of the international organizations, and to all our people

I wish happiness to every family and success, health, and wellbeing to everyone in the new year.

May the two thousand years of the statehood of Mongolia shall continue to thrive, protecting the spirit and fate of Mongolians!”

Ulf Quellmann, Chief Executive Officer of Turquoise Hill, said, “We are encouraged by the pivotal decision to proceed with the power project at Tavan Tolgoi. Resolving Oyu Tolgoi’s long-term power requirements is critically important to the mine’s long-term development and today’s signing of the PSFA is a positive milestone toward that goal. We will continue to work closely and collaboratively with our partners to finalize the details of the power project, which will allow this truly great world-class asset to achieve its full potential for the benefit of all stakeholders.”

The PSFA formalizes the role of each party and sets out an amended timetable for Oyu Tolgoi to source power domestically. Construction is expected to start in 2020 following further studies and commissioning of the power plant is scheduled for mid-2023. Oyu Tolgoi will now move forward to confirm the technical design of the project and finalize the commercial arrangements, including financing, underpinning the PSFA. The 300 megawatt plant will be majority owned by Oyu Tolgoi LLC and will be situated close to the Tavan Tolgoi coalfields. Turquoise Hill will update the market in due course.

Source: Turquoise Hill

The Oyu Tolgoi project is central to Rio Tinto’s push to diversify its portfolio away from iron ore, but it has faced a series of challenges as Mongolia’s fragile government wrangles over how to maximise benefits for the country.

First production at the $5.3 billion underground expansion located near the southern border with China is scheduled for early next decade, creating one of the world’s biggest copper suppliers.

The construction of a 300 megawatt plant, close to the Tavan Tolgoi coalfields, to supply electricity to the mine will start in 2020 under the new agreement.

The plant is expected to be operational by mid-2023, slightly later than the 2022 date mooted after the government cancelled an earlier power agreement in February.

The government of Mongolia owns 34 percent of Oyu Tolgoi with the remainder held by Turquoise Hill Resources, which in turn is 51 percent owned by Rio Tinto.

In a joint statement with Oyu Tolgoi, the Mongolian government said the agreement was “a significant step towards enhancing the efficiency of the Tavan Tolgoi coal mines,” and to supplying the wider region with domestic power.

The statement said the partners would also consider how to incorporate the use of renewable power.

Oyu Tolgoi would be the majority owner of the power plant, with funding possibly including third party debt, the statement said, without giving further details.

Analysts welcomed the deal but said the 2023 deadline looked optimistic.

“This was the last major hurdle for the underground production,” Badral Bontoi, chief executive of Mongolia-based market intelligence group Cover Mongolia, said.

A Mongolian government spokesman said the agreement was the first step to retain in the country the estimated $150 million Oyu Tolgoi currently pays China for electricity each year, with the figure set to rise when the underground extension comes online.

Rio Tinto in July entered agreements with three Chinese contractors on designing a power station to supply Oyu Tolgoi.

On Monday, a spokesman declined to comment on the status of those tenders.

Rio Tinto’s shares have fallen by around 5 percent this year and were down 0.9 percent on Monday. (Reporting by Barbara Lewis; Editing by Kirsten Donovan)

By Barbara Lewis and Munkhchimeg Davaasharav

The $940 million rail project, AutoHaul, is focused on driverless train movement to transport ore to the company's port operations and has been in development since 2012.

"Early results indicate significant potential to improve productivity, providing increased system flexibility and reducing bottlenecks," Ivan Vella, Rio Tinto's iron ore managing director Rail, Port & Core Services, said.

Rio Tinto operates about 200 locomotives on more than 1,700 km of track in Pilbara to transport ore from 16 mines to four port terminals.

In 2017, Rio Tinto's iron ore chief Chris Salisbury had said the company would look to develop an "intelligent" iron ore mine at a cost of $2.2 billion by fully incorporating technologies such as robotics and driverless trains and trucks on a single site.

(Reporting by Sangameswaran S; Editing by Shinjini Ganguli)

Furthermore, the U.S Federal Reserve approach on increasing interest rate in steps is reducing investors’ confidence and raising a risk of investment outflow in developing countries. Due to the decision of U.S Federal Reserve, the 22 foreign exchange rates of Bloomberg FX Fixings have depreciated by up to 50 percent against US Dollars. MNT rate followed the same fate, falling 9 percent against the USD since the beginning of this year.

Regardless, the International Monetary Fund, Asian Development Bank and other international organizations did not lower their 2019 Economic Outlook on Mongolia. Analysts expect the world economy to grow by 3-4 percent next year.

The trade dispute is creating risks to every countries and the Financial Stability Report of the IMF warned that the stock prices of U.S firms stand above the pre-global crisis period and real estates of developed countries, such as Australia and Canada are currently in “a bubble. Plus, the President of European Central Bank Mario Draghi told the media that a crisis situation has been seen in the global economy”.

Considering the current uncertainties in global economy and debt repayments in the upcoming years, the BoM is now holding a policy to create reserves. Accordingly, the foreign exchange reserve of Mongolia has reached a 6-year record last October.
However, the 2019 budget revenue and expenditure has been planned at a record-high amount. Experts are warning that monetary policy will be in a constraint and create more risks as budget investment will support imports, pressuring balance of payment and MNT rate as a result.

The Bank of Mongolia has improved the platform based on its internal possibilities and started using the developed version of the platform from December 21, 2018.

The developed version of the platform will reduce operational risks, increase information accessibility and contribute to development of internal currency exchange.

According to national statistics, registered unemployed people have been estimated at 25 thousand in 2018; most of them 25-34 years old. However; there are 35 thousand jobs available on the Mongolian labour market. Without doubt, E.Uujimsetgel is an ideal role model for the younger generation.

Currently, the minimum monthly wage is MNT 240 thousand, which came into force in January 2017.

Under the current law, if a foreign citizen undertakes espionage in Mongolia, they will be punished by 12-20 years imprisonment.