1 PRIME MINISTER OYUN-ERDENE VISITS EGIIN GOL HYDROPOWER PLANT PROJECT SITE WWW.MONTSAME.MN PUBLISHED:2025/04/30      2 ‘I FELT CAUGHT BETWEEN CULTURES’: MONGOLIAN MUSICIAN ENJI ON HER BEGUILING, BORDER-CROSSING MUSIC WWW.THEGUARDIAN.COM PUBLISHED:2025/04/30      3 POWER OF SIBERIA 2: ECONOMIC OPPORTUNITY OR GEOPOLITICAL RISK FOR MONGOLIA? WWW.THEDIPLOMAT.COM PUBLISHED:2025/04/29      4 UNITED AIRLINES TO LAUNCH FLIGHTS TO MONGOLIA IN MAY WWW.MONTSAME.MN PUBLISHED:2025/04/29      5 SIGNATURE OF OIL SALES AGREEMENT FOR BLOCK XX PRODUCTION WWW.RESEARCH-TREE.COM  PUBLISHED:2025/04/29      6 MONGOLIA ISSUES E-VISAS TO 11,575 FOREIGNERS IN Q1 WWW.XINHUANET.COM PUBLISHED:2025/04/29      7 KOREA AN IDEAL PARTNER TO HELP MONGOLIA GROW, SEOUL'S ENVOY SAYS WWW.KOREAJOONGANGDAILY.JOINS.COM  PUBLISHED:2025/04/29      8 MONGOLIA TO HOST THE 30TH ANNUAL GENERAL MEETING OF ASIA SECURITIES FORUM WWW.MONTSAME.MN PUBLISHED:2025/04/29      9 BAGAKHANGAI-KHUSHIG VALLEY RAILWAY PROJECT LAUNCHES WWW.UBPOST.MN PUBLISHED:2025/04/29      10 THE MONGOLIAN BUSINESS ENVIRONMENT AND FDI: CHALLENGES AND OPPORTUNITY WWW.MELVILLEDALAI.COM  PUBLISHED:2025/04/28      849 ТЭРБУМЫН ӨРТӨГТЭЙ "ГАШУУНСУХАЙТ-ГАНЦМОД" БООМТЫН ТЭЗҮ-Д ТУРШЛАГАГҮЙ, МОНГОЛ 2 КОМПАНИ ҮНИЙН САНАЛ ИРҮҮЛЭВ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/30     ХУУЛЬ БУСААР АШИГЛАЖ БАЙСАН "БОГД УУЛ" СУВИЛЛЫГ НИЙСЛЭЛ ӨМЧЛӨЛДӨӨ БУЦААВ WWW.NEWS.MN НИЙТЭЛСЭН:2025/04/30     МЕТРО БАРИХ ТӨСЛИЙГ ГҮЙЦЭТГЭХЭЭР САНАЛАА ӨГСӨН МОНГОЛЫН ГУРВАН КОМПАНИ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/30     "UPC RENEWABLES" КОМПАНИТАЙ ХАМТРАН 2400 МВТ-ЫН ХҮЧИН ЧАДАЛТАЙ САЛХИН ЦАХИЛГААН СТАНЦ БАРИХААР БОЛОВ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/30     ОРОСЫН МОНГОЛ УЛС ДАХЬ ТОМООХОН ТӨСЛҮҮД ДЭЭР “ГАР БАРИХ” СОНИРХОЛ БА АМБИЦ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/30     МОНГОЛ, АНУ-ЫН ХООРОНД ТАВДУГААР САРЫН 1-НЭЭС НИСЛЭГ ҮЙЛДЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     ЕРӨНХИЙ САЙД Л.ОЮУН-ЭРДЭНЭ ЭГИЙН ГОЛЫН УЦС-ЫН ТӨСЛИЙН ТАЛБАЙД АЖИЛЛАЖ БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     Ц.ТОД-ЭРДЭНЭ: БИЧИГТ БООМТЫН ЕРӨНХИЙ ТӨЛӨВЛӨГӨӨ БАТЛАГДВАЛ БУСАД БҮТЭЭН БАЙГУУЛАЛТЫН АЖЛУУД ЭХЛЭХ БОЛОМЖ БҮРДЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     MCS-ИЙН ХОЁР ДАХЬ “УХАА ХУДАГ”: БНХАУ, АВСТРАЛИТАЙ ХАМТРАН ЭЗЭМШДЭГ БАРУУН НАРАНГИЙН ХАЙГУУЛЫГ УЛСЫН ТӨСВӨӨР ХИЙЖЭЭ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/29     АМ.ДОЛЛАРЫН ХАНШ ТОГТВОРЖИЖ 3595 ТӨГРӨГ БАЙНА WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/29    

Category

Events

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

64x64

Mobile World Congress: Nokia launches three new smartphones www.chinadaily.com

HMD Global, the authorized manufacturer of Nokia brand, unveiled a new generation of Nokia smartphones on Sunday, marking the global launch of the brand's first android phones in the market.

Three new budget models, Nokia 3, Nokia 6, Nokia 5 and upgraded Nokia 3310, were all introduced one day ahead of the Mobile World Congress (MWC). More than 125 million Nokia 3310 units have been sold since the original version was first introduced in 2000.

All the models will start to be shipped this summer with price tag of about 1,500 yuan.

Arto Nummela, CEO of HMD Global, said: "Nokia has been one of the most iconic and recognizable phone brands globally for decades. In the short time since HMD was launched into the market, the reception we have had has been overwhelming."

According to Juho Sarvikas, chief product officer of HMD Global, the Nokia 6, unveiled last month by the Finnish startup to exclusively target Chinese consumers, has received positive feedback from the country.

"Ninety-five percent of our Chinese buyers on the online distribution partner JD.com, gave positive feedback," said Sarvikas. "Among the new users, three of four are young generations who have never purchased the brand before."

"The global launch that unveiled a series of new products, including a feature phone, shows Nokia's ambition to return to the handset market," said James Yan, research director at Counterpoint Technology Market Research. "It's obvious that by introducing the new budget models, the company is expecting promising shipping volumes."

But Yan expressed caution about the brand's business potential in China, where consumers are demanding high-profile products to replace their old phones.

"The newly launched Nokia 3310 will definitely focus on the emerging markets, such as India and many countries in Africa," said Yan.

Jamie Rosenberg, head of Android, was also invited on the stage during the event, hinted at Nokia's embrace of the Google-backed mobile software platform for the first time since it launched the first Windows Phone in 2011.

...


64x64

Changes to U.S. coal mining royalties blocked www.mining.com

The Trump administration has made another pro-coal decision, this time relating to how Washington calculates royalties on coal mined from federal and Indian lands.

iPolitics reported on the weekend that the Interior Department has put on hold changes to the value of coal extracted from public lands, meaning current rules governing the industry will remain in place pending court decisions. The Obama administration had sought to change the rules – saying they were improperly calculated – and argued that the changes were to ensure that taxpayers were given a fair share of coal sales to Asia and other export markets.

Trump's decision is likely to be controversial. IPolitics quotes a Montana rancher saying “This announcement is a gift to coal companies trying to avoid paying their fair share,” but some Western U.S. politicians are on board with it. Rob Bishop of Utah, chairman of the House Natural Resources Committee, told the online news site the rule changes would increase electricity rates for consumers by forcing utilities to pay more for coal. “The Trump administration made the right decision to suspend this illogical and legally dubious rule,” he said.

On Feb. 16 President Trump signed legislation to end the regulation protecting waterways from coal mining waste. The Surface Mining's Stream Protection Rule was enacted by Obama but was resisted by coal miners.

...


64x64

Glencore sees zinc, nickel, copper price rally continuing www.mining.com

Miner and commodities trader Glencore (LON:GLEN) produced some stellar results on Thursday and the Switzerland-based company also provided a positive outlook for 2017, particularly for its base metals business.

Glencore is the world's number four copper producer and top 3 zinc supplier and its clout on base metals markets is only amplified by its trading arm.

Last year Glencore's metals and minerals division recorded revenues of $66.3 billion with 'marketing activities' contributing $42.1 billion of the total.

The Baar-HQed company's 'industrial activities' revenue jumped 25% last year thanks to better fundamentals and rising metal prices which it expects to continue in 2017.

Here are some highlights from Glencore's outlook:

Copper
Near-term demand prospects appear positive. A political transition year in China should ensure continued positive fundamentals while the actual and looming infrastructure programs in Japan and North America should start to lend support to non-Chinese consuming regions.
Supply-side fundamentals also improved markedly during the year. Despite some scaremongering, the “wall of supply” failed to emerge.
The stresses induced by 18 months of low pricing and related actions to enhance cash flows are only just starting to manifest themselves
New supply growth from Peru was almost fully offset by production decreases in Chile and elsewhere, and continued shutdowns in the African copper belt. Indeed, the copper market appears to be reverting to form, with an unusually low volume of mine disruptions seen in H1 2016, but increasing in the second half of the year.

The stresses induced by 18 months of low pricing and related actions to enhance cash flows are only just starting to manifest themselves.

The prospect of demand growth across Asia, Europe and the US, as well as the likelihood of difficult labour contract negotiations at some of the industry’s major mines over the coming year, suggest that pricing risks lie to the upside in 2017.

Nickel
We estimate global stainless production in 2016 at over 45 million tonnes, up over 7% on the prior year, including over 24 million tonnes from China. Globally 300S austenitic production totalled over 25 million tonnes which is a 10% increase versus 2015.

Developments in non-stainless remain mixed, with special steel producers reporting challenging conditions primarily due to continued oil and gas weakness, whilst demand from the critical alloys industry and battery sector remains robust.
Overall we estimate primary nickel demand in 2016 of 2.05 million tonnes, representing an ~8% increase versus 2015.

Whilst inventories remain elevated, the outlook is for continued deficits and further draws in primary nickel inventories as demand remains strong
Nickel supply continued to fall in 2016 with further shutdowns (BCL, Tati, Votorantim, Mirabella), and lower nickel unit exports (in ore) from the Philippines all driving a fall in projected nickel output to approximately 1.95 million tonnes of nickel, down 2% versus 2015.

Consequently the market entered its first material deficit since 2010 enabling global inventories to fall by around 100,000 tonnes. Whilst inventories remain elevated, the outlook is for continued deficits and further draws in primary nickel inventories as demand remains strong. Supply increases relate to Indonesia exporting more nickel units in nickel pig iron, with production elsewhere continuing to flat-line or even fall.

Zinc and Lead
The widely anticipated zinc mining output reduction materialised and resulted in significantly tighter physical market conditions, particularly for zinc concentrate. Confirmation of decreasing supply, in combination with better than anticipated demand conditions driven by the recovery of the Chinese real estate and global automotive market, has resulted in destocking of both zinc concentrates and metal during the year and a higher corresponding LME price.
The widely anticipated zinc mining output reduction materialised and resulted in significantly tighter physical market conditions, particularly for zinc concentrate
2016 Chinese zinc mine production was similar to 2015, despite the incentive of a higher SHFE zinc metal price, and a reduction in zinc mine production from the rest of the world (“ROW”) of around 900kmtu (10.8%). Consequently, realised Benchmark TCs reduced by $32/dmt ($243 to $211) while average spot TCs were down by $99/dmt ($201 to $102).

The tightness in zinc concentrates is yet to impact Chinese zinc metal production, even though Chinese concentrate imports were down by 640kmtu and domestic mine production was flat year-over-year. Chinese smelters reported similar production as in 2015, which is attributed to destocking of concentrates stock built up in prior years. ROW zinc metal production was down by 244kmtu compared to prior year.

ROW zinc metal continues to be shipped to China, following the trend of the last few years. Metal imports into China were stable year on year, causing further inventory drawdowns from LME exchanges (stocks down from 463kt to 428kt), while SHFE (199kt to 153kt) and Shanghai Metal Market stocks have also been drawn to cover the needs of the Chinese physical market. Published non-exchange stocks in China have also reduced by a further 50-80kt. Real estate and infrastructure end markets in China are performing better than expected, supported by Chinese government actions in H1 2016, while the automotive market continues to show strong growth both in China and ROW.

The lead supply side trend is similar, given that it is generally a by-product of zinc. Lead benchmark TCs were down by $22.50/dmt ($170 versus $192.50), while spot was down by $60/dmt ($117 versus $177) compared to 2015 averages. Chinese lead concentrates imports were also down by 24% year over year.

Going forward, we expect tight zinc concentrates supply to translate into lower metal production in 2017, which should cause further inventory drawdowns and provide support to the metal price.

...


64x64

Traders drain pricey U.S. oil storage as OPEC deal bites www.reuters.com

 
Traders are turning the spigots to drain the priciest storage tanks holding U.S. crude stockpiles as strengthening markets make it unprofitable to store for future sale and cuts in global production open export opportunities.
 
That could signal the beginning of the end for a two-year trade play that came about during an international price war and global oil glut. It is also what the world's largest oil exporters wanted to see when they agreed last year to work together in a historic supply cut to end the glut.
 
From Houston through Louisiana to floating storage in the Gulf of Mexico, traders are starting to ship crude out of inventories as the rising price of oil for near-term delivery erodes the profits to be had by holding onto oil for later sale.
 
To be sure, shipments from storage have so far made only a small dent in record U.S. crude inventories. But if prompt oil prices continue to strengthen, more storage will empty out.
 
"Right now, traders aren't incentivized (to store)," said Sandy Fielden, director of oil and products research at Morningstar.
 
"It won't all stampede out of the gate, but inventory levels will come down. What will happen is that some of it will go to refineries, but a fair amount will be exported too."
 
To make money by holding crude, the spread between oil prices for future months needs to be wide enough to cover the cost of leasing tank space and borrowing the money to buy the fuel to fill it. For the last two years, U.S. traders have rushed to that opportunity as those price spreads widened.
 
Since November, when the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to cut output, the spread, or discount of prompt barrels to later supplies known as a contango, between the front and second month U.S. benchmark CLc1-CLc2 crude price has narrowed to as little as 26 cents from 95 cents a barrel. That is no longer enough to cover the more expensive storage options, traders said.
 
In the Houston area, traders that took out storage at the height of capacity issues in 2015 at around $1.20 a barrel are finding it no longer economical.
 
In the Louisiana Offshore Oil Port (LOOP), the only deep-water U.S. oil port and a major conduit for the country’s crude oil imports, drawdowns have been reflected in the costs of storing oil, traders said.
 
The futures contract for oil storage there LOSc1 has fallen to around 40 cents per barrel, down about half in a month and still double the difference between front- and second-month crude prices.
 
One of the most expensive storage options is to hold oil on tankers at sea. During the massive build up in inventory through 2015 and 2016, even some of that was profitable.
 
Floating storage is now falling. In the U.S. Gulf, crude in offshore tankers fell to 26 million barrels last week from 35 million barrels a month ago, according to data provider ClipperData.
 
Not all of that crude was considered to be held in floating storage. Some of it may have simply been waiting to discharge.
 
The largest, and typically cheapest, U.S. storage facility is in Cushing, Oklahoma, which is also the delivery point for West Texas Intermediate (WTI) futures contract CLc1, one of the world's two most important benchmarks for oil prices.Even at Cushing, market participants are emptying storage. Stocks have fallen on average by more than 600,000 barrels per week since the end of 2016, and analysts expect another two to three million barrels to empty out in March.
 
The going rate for putting oil in tanks in Cushing is around 35-50 cents per barrel per month, though some secured cheaper space still considered profitable before the oil price rout began in mid-2014.
 
Even as traders sell from the pricier storage tanks, total inventories in the United States have reached a record level. [EIA/S]
 
That build up is likely due to high imports that were booked before the OPEC production cut, traders and analysts said. It takes around six week for crude from the Middle East to make its way to the United States, and further shipments should fall in coming weeks.
 
"There is unlikely to be much more of a tail to the increased flow from the Middle East into the U.S.," Paul Horsnell, global head of commodities research at Standard Chartered, said in a note.
 
Stocks have also built because refineries are piling up inventories during their seasonal maintenance periods. As they return ahead of summer demand season, inventory builds should reverse.
 
Record exports of U.S. crude in February and March, particularly to Asia, are also expected to boost prices and encourage shipments from storage.
 
Exports from the United States hit a record high of 1.22 million barrels per day (bpd) last week and domestic production rose to above 9 million bpd, the highest since April, the U.S. Energy Administration Agency said.
 
"With those two together, the U.S. is becoming an export juggernaut," said John Kilduff, partner at New York energy hedge fund Again Capital.
...


64x64

Erdene Closes Oversubscribed $13.8 Million Bought Deal Financing www.erdene.com

Halifax, Nova Scotia – February 23, 2017 – Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company") is pleased to announce the closing of its previously announced bought deal
financing for gross proceeds to the Company of C$13.8 million (the “Offering”). The Offering was led
by Paradigm Capital Inc., with a syndicate including Canaccord Genuity Corp. (collectively, the
“Underwriters”).
The Company issued an aggregate of 17,922,077 common shares (“Shares”) at a price of C$0.77 per
Share, including the full exercise of the Underwriters’ 15% over-allotment option. The Offering was
oversubscribed with participation from multiple institutional investors from Canada and abroad.
In consideration for their services, the Underwriters received a cash commission of $828,000
representing 6% of the gross proceeds of the Offering and 1,075,324 compensation warrants (the
“Compensation Warrants”) representing 6% of the Shares issued pursuant to the Offering. Each
Compensation Warrant is exercisable for a period of 24 months from closing and entitles the holder to
purchase one Share for $1.20 per share.
All Shares issued in connection with the Offering are subject to a four-month hold period expiring June
24, 2017. The Company intends to use the net proceeds of the Offering to advance its 100%-owned,
high-grade Bayan Khundii and Altan Nar Gold Projects, and to further explore and develop the
Company's other gold properties in southwest Mongolia, as well as for working capital and general
corporate purposes. An approximate 20,000 metre drill program at Bayan Khundii is expected to
commence in April 2017.
“We are extremely pleased with the strong interest shown in the financing which was significantly
oversubscribed. It is our pleasure to welcome these high caliber shareholders into Erdene”, said Peter
Akerley, Erdene’s President and CEO. “We now have the financial capacity to significantly advance our
promising gold projects in southwest Mongolia.”
The securities described herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the “U.S Securities Act”), or any state securities laws, and
accordingly, may not be offered or sold within the United States except in compliance with the
registration requirements of the U.S. Securities Act and applicable state securities requirements or
pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation
to buy any securities in any jurisdiction.

...


64x64

Game company seeks to block Facebook from using virtual reality code www.reuters.com

 
Video game publisher ZeniMax Media Inc., which earlier this month won a $500 million verdict against Facebook Inc.’s (FB.O) Oculus virtual reality unit for unauthorized copying of computer code, has asked a federal judge to block Oculus from using the code in its products.
 
ZeniMax made its request for an injunction in papers filed on Thursday in federal court in Dallas. It was the same court where jurors on Feb. 1 issued the verdict against Oculus and its founders Palmer Luckey and Brendan Iribe.
 
Tera Randall, a spokeswoman for Oculus, said the company was continuing with its plan to ask the judge to set aside the verdict, which she called "legally flawed and factually unwarranted."
 
Lawyers for ZeniMax declined to comment.
 
If granted, the injunction could limit the number of games available for sale for Oculus' Rift VR headset. Such a move would be a blow to a product still in its infancy and on which Facebook has made a big bet for the future.
 
Oculus has already made the disputed code available to companies that develop games, and it is embedded in many of the games available for use on the Rift, as well as Samsung Electronics Co's (005930.KS) Gear VR, a smartphone-compatible device developed through a partnership with Oculus.
 
Mark Romeo, an Irvine, California-based intellectual property lawyer not involved in the case, said the potential disruption from an injunction, if granted, would put an "incredible amount of pressure on Facebook to enter into some sort of settlement."
 
The litigation stemmed from Oculus co-founder Palmer Luckey's 2012 correspondence with video game designer John Carmack, well-known for creating the Doom series. Carmack, who at the time was employed by a ZeniMax subsidiary, subsequently agreed to help develop software for the Rift. In 2013 he left ZeniMax and joined Oculus as its chief technology officer.
 
ZeniMax sued Oculus in 2014, less than two months after Facebook paid $3 billion for the start-up, claiming Carmack developed crucial Rift technology while he was a ZeniMax employee. ZeniMax also argued that Luckey breached a non-disclosure agreement.
 
The case culminated in a three-week trial in which ZeniMax sought $6 billion in damages. Jurors rejected a claim by ZeniMax that its trade secrets were stolen, but it found that Oculus used the copyrighted code without permission and violated the non-disclosure agreement.
...


64x64

10 clinics to be built with Turkish aid www.mongolia.gogo.mn

 
Sh.Ankhmaa, City Governor’s Office’s deputy in charge of social affairs received the delegations led by Ismail Hakki Turunc, the Chief Advisor of the Governor of Istanbul, Turkey. The sides discussed the project on the establishment of 10 hospitals using the non-refundable aid of Turkey. Within the project framework, 9 family clinics and a dialysis clinic will be established
Sh.Ankhmaa expressed her gratitude towards the delegates for providing aid in Ulaanbaatar and said “Many projects are being implemented through foreign investment in Mongolia. But this project is one of the relatively few non-refundable aid”.
A total of 152 family clinics are operating in 152 district committees throughout the city. And because of the scarce apparatus and obsolete facilities, the clinics are in dire need for reconstruction. Therefore, the renovation of nine clinics will be a relieving aid for Mongolia. The project is planning to commence with the construction season in April and Hakki Turunc mentioned that the construction work will be handled by Mongolian companies. Also, the project indicates that 10 medical apparatus will be installed in the Dialysis Clinic.
City Governor’s Office has prepared the construction sites of the clinics. Specifically, 5000 m2 area of Dialysis Clinic in Khan-Uul district and 1000 m2 for each Family Clinics are planned by the Governor’s ordinance. As for the Family Clinics, 600 m2 areas will be used for the facility and 400 m2 will be composed of green areas.
By the estimation of the Turkish side, each Family Clinics are expected to have 6 doctors that will provide medical service for 1800-2000 people which means they are capable of providing medical service to 12 thousand people. After visiting the selected construction areas, the delegates of Istanbul have met the authorities of Ulaanbaatar. Also, Sh.Ankhmaa noted that the Governor’s office will provide support in every way possible to hasten the project.
...


64x64

Leave-work-early campaign kicks off www3.nhk.or.jp

 
Many employees across Japan will be leaving work at around 3 pm on the last Friday of each month, starting this week.
 
This is part of a new campaign called "Premium Friday," led by government and business officials. The aim is to boost the country's sluggish consumption.
 
Industry groups and companies, as well as local shopping areas, are expecting the campaign to bring them more customers.
 
Officials at a joint public and private sector council say about 4,000 firms and organizations have applied for permission to use the campaign's logo.
 
But quite a few employers are not completely on board.
 
Some may give the campaign a miss to avoid disruptions in their customer-support services. Others say they are already encouraging their workers to use their vacation days.
...


64x64

Mongolia and China to extend swap arrangement www.montsame.mn

Ulaanbaatar /MONTSAME/ The Bank of Mongolia and the People’s Bank of China have agreed to extend the local currency swap line during the meeting between Deputy Governor Lkhagvasuren Byadran and Deputy Governor Yi Gang on February 22, 2017 in Beijing, the People’s Republic of China.

Currently, the two central banks have RMB 15 billion swap line, maturing in 2017. It is expected that the maturity will be extended to 2020 by the agreement.

The central banks first entered into the swap arrangement in 2011 with RMB 5 billion. The swap line was expanded two times in 2012 and 2014 to RMB 15 billion.

...


64x64

Mongolian coal miners bet on ’One Belt, One Road’ to feed demand www.news.mn

Coal miners operating in Mongolia are betting on China's massive 'One Belt, One Road' programme to improve access to existing markets in China and Russia and enter new ones as far afield as Eastern Europe.

Although Chinese demand for coking coal, or metallurgical coal – a key steelmaking ingredient – has recovered, infrastructure constraints in Mongolia, particularly a lack of rail capacity continues to cause 'bottlenecks' and delays in getting product to markets, said David Paull, managing director of ASX-listed Aspire Mining Ltd.

In the longer term, China's efforts to re-invent the Silk Road trading route for the modern era, connecting Asia to the Middle East and Europe will shift the balance.

"One Belt, One Road and investment in Mongolian rail will provide capacity, allowing greater penetration of the Chinese and Russian markets 'and eventually Eastern Europe," Paull told CNBC in a telephone interview on Feb. 21st.

Despite the longer-term appeal of new growth markets, Mongolian-focused miners like Aspire remain cautious.

"The coking coal market certainly has stabilized," Paull said. "The capital markets were completely closed to us" during the depths of the commodity price collapse in 2014.

"We reduced ourselves to a skeleton crew to keep ourselves in the game. We're still very much in that mode but more confident in sources of funding if you can point to the fact you can move to the development stage quickly."

In the near term, China's ban on North Korean coal imports is boosting demand for Mongolian coking coal, said Thomas Hugger, founder and CEO of Asia Frontier Capital. "Naturally, Mongolia should be the main beneficiary of this." (CBSN)

...


  • Terms of Reference
  • About
  • Contact Us

Managed by: B2BMongolia www.b2bmongolia.com

Events

News

Facebook