Mongolia-based Steppe Gold (TSX: STGO) has just announced a US$150 million funding deal to fully finance the Phase 2 expansion of its flagship project ATO gold mine in Mongolia. With expected annual production of 100,000 oz. gold equivalent by 2025 for 12 years, the company says it’s ready to unlock the full potential of its ATO mine and rapidly expand its presence in Mongolia.

Steppe Gold is the only TSX-listed precious metals producer in Mongolia after Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) acquired Turquoise Hill Resources for US$3.3 billion to simplify its ownership in the world-class Oyu Tolgoi mine. Rio now holds 66%, and the remaining 34% is owned by the government of Mongolia.

However, interest in the region is strong. The recent Mongolia Economic Forum, organized by the government of Mongolia and held during the Mongolian “Naadam” holiday, attracted over 45 international investment banks, more than 500 investors, and a total of 2,000 delegates.

In an address to the audience, Rio Tinto chairman Dominic Barton said the mining giant is committed to building its footprint in Mongolia and expressed his optimism about Mongolia’s future. The company has invested US$15.4 billion in Oyu Tolgoi since 2010, as the project looks set to become the world’s fourth-largest copper mine by 2030.

Mongolia is a resource-rich developing country, with more than 80 types of mineral deposits identified across 1,170 registered deposits. The International Monetary Fund identifies Mongolia as one of the most promising of the 29 resource-rich developing countries due to its richness in natural resources. And yet, only 2.6% of its territory is covered by exploration licenses and 1.2% by mining licenses.

Leveraging its border with China, which accounts for over 90% of its mining commodity exports, Mongolia is focusing on improving border points to boost mineral exports under the New Recovery Policy led by the 43-year-old Prime Minister, Oyun-Erdene L., and his cabinet. Foreign direct investment (FDI) has played a significant role in the development of Mongolia’s mining sector, with 75% of current FDI focused on this sector.

As a frontier market with associated investment risks, Mongolia’s authorities have introduced investor-friendly changes over the past decade, making the country a more favourable destination for foreign investment.

Steppe Gold’s origins

Steppe Gold was founded in 2016 by Bataa Tumur-Ochir, a young Mongolian entrepreneur, and Matthew Wood, a seasoned mineral explorer and developer with over 30 years of industry experience.

Bataa, the company’s CEO and chairman, and Wood, a director, have worked together to invest in Mongolia’s mining industry over a decade, maintaining a strong belief in the country for a long period.

Back in 2012, Bataa became one of the youngest CEOs of an ASX-listed company at the age of 26, with Matthew Wood acting as chairman. They have established and developed several mining projects in Mongolia.

Steppe Gold was listed on the TSX in 2018 and, since then, has raised about US$90 million from international and Mongolian investors and management. Throughout this time, the company developed the ATO mine from greenfield project to production stage with over 90,000 oz. of gold produced to date. The second phase of operations is expected to produce over 1.2 million oz. gold equivalent over 12 years and generate a total of US$2 billion in revenue.

Its most recent financing, a US$150 million debt financing deal with top Mongolian financial institutions, which closed in July, will help Steppe meet its next ambitious growth targets. The principal payments will be paid after Phase 2 expansion is in production.

“It has been challenging yet rewarding five years, but with Phase 1 in production and Phase 2 expansion financing secured, we have de-risked the project, and now we are finally well positioned for growth” Bataa said.

Despite being a junior producer, Steppe Gold already has an impressive list of industry-leading investors, including Eric Sprott, Elliot Management, Fidelity and LIM advisors. The management team themselves are significant shareholders in the company, with Bataa now the largest shareholder. The chairman and CEO says he’s proud to have participated in every capital raise since the company’s establishment.

Steppe Gold today is one of the largest employers in the region and is proud to have a strong local presence and support in Mongolia. A strong believer in community engagement, Steppe has provided financial aid to over 1,600 local students over the five years.

New chapter of transformational growth

In June, Steppe Gold closed the acquisition of Canadian miner Anacortes Mining Corp. and its Tres Cruces gold project in Peru. The all-share acquisition adds another 2.5 million oz. gold in indicated resources to the company’s development portfolio as the mine ranks among the highest-grade oxide development deposits globally. Tres Cruces is just 10 km from the world-class Lagunas Norte mine.

The acquisition will expand the company’s reach to an international scale and increase its production potential, Bataa says.

While Steppe Gold isn’t planning any further expansion into South America in the near future, it does plan to invest in Mongolia.

Untapping Mongolia’s mineral potential, in addition to expanding exploration at the ATO land package, where operations currently only occupy 300 hectares of 5,500 hectares, Steppe Gold is also assessing adding to its landholdings. It’s currently assessing about 200,000 hectares of prospective areas in the country.

“Our company has always had a strong focus on Mongolia, and it will remain unchanged as we seek out the many opportunities in the country,” Bataa emphasized. The company has over 350 employees, 99.9% are Mongolian.

To bolster its focus on mining in Asia, Steppe Gold is planning to pursue a dual primary listing of its common shares on the main board of the Hong Kong Stock Exchange. Around 40% of the company’s shareholders are located in Asian time zones.

Upon listing, the company would be one of only a few firms in the mining and precious metals industry on the exchange — something the company believes will be a major competitive advantage as they appeal to a new group of investors looking for opportunities in the sector.

With Steppe’s international management team and skilled local employees, Bataa says the company is enthusiastic about the future. “We are excited about our transformational growth,” Bataa highlighted.

The preceding Joint-Venture Article is PROMOTED CONTENT sponsored by Steppe Gold and produced in cooperation with Mining.com. Visit www.steppegold.com for more information.

Within the framework of the 22nd Meeting of the Joint Committee on Cooperation between Mongolia and the European Union, the Deputy Prime Minister Mr. Amarsaikhan and the Managing Director for Asia and the Pacific at the European External Action Service (EEAS) Mr. Gunnar Wiegand signed the relevant document on establishing the Development Cooperation Working Group.

The Development Cooperation Working Group is an important mechanism for exchanging ideas on the effective implementation of projects implemented under the Multiannual Indicative Programme of the European Union.

The European Union is financing and implementing 33 projects in the priority directions of green sustainable development, democracy and economic development in Mongolia.

At the invitation of the Vice President of the United States Kamala Harris, the Prime Minister of Mongolia L. Oyun-Erdene will pay an Official Visit to the United States of America on August 2-6, 2023.

During the Official Visit, the Prime Minister is going to hold official talks with the Vice President of the United States Kamala Harris, and meet with other high-level officials. As part of his Official Visit, the Prime Minister will visit NASA, the U.S. Agency for International Development, and the U.S. International Development Finance Corporation.

Issues on deepening the strategic partnership relations with the USA, which plays an important role in Mongolia's "third neighbor" policy, and expanding political, economic, humanitarian, and regional cooperation will be topics of the talks. Moreover, the establishment of some bilateral cooperation documents is expected.

The European Union (EU) and Mongolia held their annual Joint Committee meeting under the EU-Mongolia Partnership and Cooperation Agreement, in Brussels on 26 July 2023. The meeting was an opportunity for Mongolia and the EU to reaffirm their partnership based on shared values such as democracy, human rights, the rule of law and the respect of the principles of the UN Charter.

The EU remains fully committed to supporting Mongolia’s Third Neighbour Policy and welcomes Mongolia’s long lasting commitment to multilateralism.

Mongolia and the EU share a common interest in promoting green sustainable development in Mongolia, which is a key objective under the EU-Mongolia Multiannual Indicative Programme 2021-2027 and the EU’s Global Gateway. Mongolia is among the five priority countries with whom the EU has signed a Forest Partnership Agreement as a Global Gateway Flagship in the margins of the COP 27 Climate Change Conference in November 2022. Mongolia and the EU agreed on the continued need to combat climate change and protect the environment as well as to support the full implementation of the Paris Agreement and the Sustainable Development Goals SDGs Agenda.

The EU remains fully committed to assist Mongolia in sustainably diversifying its economic and foreign trade structures, as well as to cooperate on improving the Mongolian business environment and maximise the efficiency of Mongolian trade policy tools. Mongolia and the EU are committed to finalise their negotiations of an agreement on the protection of geographical indications, started in 2022.

The EU and Mongolia are examining the possibility of enhancing cooperation on security including peacekeeping.

The EU and Mongolia also discussed regional and global challenges. The EU and Mongolia expressed concern over the suffering of the civilian population and the bombing of civilian infrastructures, and emphasised the need for a comprehensive, just and lasting peace in Ukraine in line with the principles of the Charter of the United Nations. The EU recalled its position clearly expressed in the UNGA resolutions ES-11/1, ES-11/2, ES-11/3, ES-11/4, ES-11/5 and ES-11/6, underscoring the grave violation of the UN Charter and international law. The EU and Mongolia reaffirmed their commitment to the Charter of the United Nations and international law, including the need to respect the sovereignty, political independence and territorial integrity of all nations. It is essential to uphold international law and the multilateral system that safeguards peace and security.

Mongolia and the EU will continue working together to protect and promote human rights. The EU and Mongolia held their annual Human Rights Dialogue on 18 July 2023, which discussed most recent human rights related developments in the EU and Mongolia, the cooperation with UN Human Rights monitoring bodies, their respective approaches on Business and Human Rights, judiciary reforms in Mongolia and the ongoing reform of the EU’s GSP+ Scheme.

Mongolia and the EU held a meeting of the Working Group on Development Cooperation (19 July 2023), in which both parties welcomed the significant progress achieved since last year in the implementation of the Multiannual Indicative Programme for 2021-2027 and of Global Gateway, and also looked ahead towards future challenges and opportunities.

Mongolia and the EU agreed to strengthen their cooperation on green transition, connectivity and digitalisation with the support of the EU’s Global Gateway and Team Europe Initiatives with EU Member States and European Development Banks, creating synergies with Mongolia’s mid-term and long-term development agenda.

Mongolia and the EU agreed to hold their next Joint Committee meeting in 2024 in Ulaanbaatar.

The Joint Committee was co-chaired by Mr. Gunnar Wiegand, Managing Director for Asia and the Pacific at the European External Action Service (EEAS) and Mr Amarsaikhan Sainbuyan, Deputy Prime Minister of Mongolia.

During its regular session on July 26, 2023, the Cabinet made the following decisions:

Funds will be released from the Government's reserve fund for the reconstruction of bridge structures damaged by floods.

Minister of Finance B. Javkhlan approved the release of funds from the Government's reserve fund based on the request submitted by the Special Commission of Bayan-Ulgiy and Selenge aimags to the State Special Commission for immediate reconstruction and elimination of damages caused by dangerous weather phenomena and floods.

On June 10-12 in Bayan-Ulgiy aimag, due to excessive heat, the snow in mountainous areas melted a lot, and the water level of rivers such as Khovd, Sagsai, Bulgan, Buyant, Turgan, Chikhertei, Gantzmod, Tsagaan Gol, Sogoog, and Kharbutny exceedingly increased and reached a dangerous flood level. As a result, 7 wooden bridges and 1 reinforced concrete bridge were affected by floods and destroyed. Therefore, funds will be allocated from the Government Reserve Fund for the restoration of the bridges. Also, the budget for the reconstruction of a 150-meter long bridge over the Kharaa river in Mandal soum of Selenge aimag was resolved.

Due to the continuous rain in the capital, the dam of the Selbe River has burst in some places, and urgent restoration work is ongoing. At today's meeting of the Government, the Special State Commission was tasked to provide weather information to the public at all times to prevent any risk.

Increase access to schools and kindergartens

A working group to ensure the implementation of the Government's 2022 "Measures to improve access to kindergartens in the capital" and 2023 "Measures to be taken to reduce the burden and increase access to general education schools" has been established by the order of the Minister of Education and Science. The working group will study and solve the problem of providing a healthy and safe environment for more than 33 thousand children from 47 schools to avoid studying in 3 shifts in the capital, and enrolling 26.8 thousand children from 27 districts with a high workload to kindergarten.

Minister of Finance B. Javkhlan, Minister of Construction and Urban Development Ts. Davaasuren and Minister of Education and Science L. Enkh-Amgalan were assigned to develop and approve the relevant regulations in accordance with the Law on Construction, and to develop and discuss the Government's resolution to intensify investment work.

The permit will become digital and the law amended

Deputy Prime Minister and the Minister of Economy and Development Ch. Khurelbaatar presented an overview of the process of transitioning the Special Permit Fund into digital form and intensifying the work of connecting it to the integrated system of public services ordered by Government Resolution No. 233 of 2023 to the Cabinet meeting.

Members of the Government and relevant authorities are requested to take measures to improve the systems, to make changes to the relevant laws, laws, regulations, and rules in the context of intensifying the digitization of 85 permits out of the 249 special permits that have not been transferred to the electronic system under Article 8, Section 8.1 of the Law on Permits.

Brief news

- The Draft Law on the Ratification of the "International Convention on the Implementation of Measures Related to Tax Treaties for the Prevention of Tax Base Reduction and Profit Shifting" will be discussed and submitted to the State Great Khural.

- Discussed and supported the draft agreement between the Government of Mongolia and the Government of the Republic of Bulgaria on international road transport of goods and passengers, and decided to issue a decree of the Prime Minister on granting the right to sign the agreement.

- Minister of Health S. Chinzorig was assigned to present the current state of the quality and price of drugs and medical equipment in Mongolia and the measures to be taken in the future. In this regard, Chief Cabinet Secretary D. Amarbayasgalan and Minister of Health S. Chinzorig have been instructed to discuss the procedure for purchasing from foreign manufacturers or international organizations directly and through the organization of this relationship at the Cabinet meeting.

Rio Tinto (ASX, LON: RIO) disappointed investors and analysts alike on Wednesday after revealing it won’t be able to achieve a targeted 15% carbon emissions reduction by 2025, unless it uses carbon offsets.

The world’s second largest miner had originally committed to cut its Scope 1 and Scope 2 emissions, those created directly though its operations and indirectly through energy consumption, by 2030. It later decided to move the deadline forward to 2025 under shareholder pressure.

In a half-year update, Rio said would not be able to meet its self-imposed emissions goal without using carbon offsets. The company attributed the setback to underlying emissions growth tied to “evolving production plans” and other factors, including engineering and construction timelines.

Peers including BHP (ASX, LON: BHP) and Fortescue Metals Group (ASX: FMG) remain so far on track to meet their goals — at least 30% reduction of Scope 1 and 2 emissions by 2030 for BHP and net zero emissions by that year for Fortescue.

Chief executive Jakob Stausholm opened up earlier this year about the targets set by Rio Tinto’s previous executives, saying he “regretted” them. He added at the time that reaching the 2025 and 2030 deadline would require some “hard choices”.

The company’s emissions come mainly from the processing and refining of metals, such as iron ore and aluminum, as it requires very high temperatures and is often powered by coal. Mining only accounts for 20% of Rio’s total emissions.

“The problem is that in the short term, you add cost to a business where you are not really making money,” Stausholm said in an earnings call on Wednesday, referring to a $800 million impairment charge on its Gladstone aluminum refineries in Australia.

Capital will be required to decarbonize the facilities, which are also facing increasing payments for their carbon emissions under Australia’s new carbon credit scheme, he added.

The writedown combined with a period of softer prices for its iron ore shipments impacted Rio Tinto’s numbers for the six months to June 30.

First-half net profit after tax dropped by 43% to $5.1 billion in the period from $8.9 billion in 2022.

Rio still announced a $1.77 per share half-year dividend, which was also lower than market estimations but that is the third-highest interim dividend in the company’s history.

From July 9–11, Kyrgyzstan’s president Sadyr Japarov arrived on an official visit to Mongolia. During talks, the parties discussed deepening relations and cooperation, strengthening mutual political trust and the legal framework of relations, as well as regional and international issues of mutual interest. The main outcome was the signing of the Joint Declaration of Establishing Friendship and Cooperation as well as 10 other cooperation agreements in the trade, environment, security, and cultural spheres. The visit was capped off with the inauguration of the Kyrgyz Embassy in Mongolia on July 11.

There have been several examples of successful social and economic cooperation between the two sides. The outcomes of Japarov’s visit outcomes were similar to the outcomes of numerous previous visits by Kyrgyz and Mongolian leaders that may have fallen short of their stated goals in the economic sphere. However, his visit coincided with growing trade and an organic, bottom-up, people-to-people interaction, giving this effort a higher chance of bringing the two countries closer together.

Long common history and shared culture

Kyrgyzstan and Mongolia have a shared history and culture. Their interaction counts thousands of years. The ancestors of the current day Kyrgyz people originally inhabited the Yenisey River valley in central Siberia as early as 201 BCE and later the Minusinsk Hollow in southern Siberia in the 12th century CE.

Living in these areas meant neighboring and interacting with the Mongol people. The modern-day manifestations of this centuries-old interaction and shared history and culture are the extensive use of yurts and the central role of the horse in Kyrgyz and Mongolian culture, common among nomadic people. Another proof of the past geographic proximity and interaction between them is the lake called Khyargas Nuur (Kyrgyz lake), located in western Mongolia. The country is home to 2,000–3,000 ethnic Kyrgyz people who live in the western province of Bayan Olgii. One of them, Bulany Beisen, serves as a member of Mongolian parliament.

The modern history of cooperation between the two countries dates back to the Soviet Union, when Kyrgyzstan was a part of it and Mongolia was a satellite state. In 1986, the General Secretary of the Central Committee of the Mongolian People's Revolutionary Party, J. Batmunkh, arrived on an official visit to the Kyrgyz Soviet Socialist Republic (SSR). The two sides signed an agreement establishing direct friendly ties. In the same year the two sides signed an agreement on the main areas of cooperation for 1987–1990, aimed at exchanging experiences in the development of mining, agriculture and animal husbandry.

Independent diplomatic relations

The history of cooperation between Mongolia and Kyrgyzstan can be described as slow and steady. In 1991, Kyrgyzstan became independent following the collapse of the Soviet Union and started its transition to democracy. In 1992, the People’s Republic of Mongolia ceased to exist and the country switched from the socialist regime to a democratic one under the name of Mongolia. That same year the two countries established diplomatic relations as sovereign states.

In 1993, Kyrgyzstan’s first president Askar Akayev arrived on an official visit to Mongolia, and the two countries signed several documents that formed the legal basis for relations between them. Among them were the Treaty of Friendly Relations and Cooperation between Mongolia and Kyrgyzstan as well as agreements on economic, cultural, scientific, and environmental cooperation. Akayev visited Mongolia again in 2002. The negotiations ended with similar statements on mutual interest in economic, agricultural, and cultural cooperation.

Despite the ambitious plans, the relations developed slowly and did not yield any major results. In 2012, Mongolia’s former president Elbegdorj Tsakhia visited Kyrgyzstan. The visit somewhat revived bilateral cooperation as the parties reaffirmed the importance of further developing cooperation between the two countries. It was followed up by the opening of the Ulaanbaatar–Bishkek–Istanbul flight that established a direct flight between the two countries for the first time.

In 2014, Mongolia opened a General Consulate in Kyrgyzstan’s capital Bishkek. In 2015, Elbegdorj Tsakhia visited Kyrgyzstan for the second time and stated that the two countries were interested in active trade and economic cooperation. In 2017, Kyrgyzstan’s Ambassador to China, Azamat Usenov, was appointed Ambassador to Mongolia concurrently. In 2019, Mongolia’s former president Khaltmaa Battulga visited Kyrgyzstan and inaugurated Mongolian Embassy in Bishkek.

Growing trade and people-to-people diplomacy

The meager trade turnover between Mongolia and Kyrgyzstan hint at the fact that the cooperation between them has carried a political tone. The high-level meetings and agreements have not yielded any impactful results in the economic sphere. However, there have been positive changes in the last several years.

The trade turnover between the two countries in 2017 was only USD 1.6 million. It has since grown and reached USD 2.756 million in 2022. In the first four months of 2023, the number stands at USD 3.456 million, which is 5.8 times higher than from the same period in 2022. Food items make up most of the trade. These numbers are still meager compared to even the tenth largest trading partner of each country. The trade turnover between Kyrgyzstan and its tenth largest partner, India, is almost USD 118 million. Kyrgyzstan does not appear in Mongolia’s top 10 export or import partners. As optimists might say, there is a lot of room for growth.

Japarov’s visit is expected to continue the positive trend of the last several years. His visit resulted in the agreement that Mongolia will supply meat, meat products and leather to Kyrgyzstan and import fruits and vegetables from Kyrgyzstan. Similar outcomes were reported after Kyrgyzstan’s foreign minister visited Mongolia earlier in May. In this regard, the parties agreed to intensify cooperation between veterinary and quarantine institutions. Exchange of experiences in the mining industry and tourism are two other opportunities that make the most sense, given the countries specificities and strenghts.

Perhaps the more effective driver of interaction between the two countries is the budding car trade between South Korea and Kyrgyzstan, which is taking place with the help of Mongolia. Global Voices spoke to Tolotai, a businessman from Mongolia who facilitates this trade as the middle man. He says that the first time Kyrgyz businessmen came to Mongolia for cars was in 2019. They did so after realizing that such a route exists, and it is cheaper and faster to import cars to Kyrgyzstan from South Korea via Mongolia than from other parts of the world via Georgia and Armenia.

The COVID-19 pandemic put these plans on hold until 2022, when Mongolia finally opened its borders. That is when the car trade finally took off, according to Tolotai, who is one of many local businessmen involved in the trade. Between 100 and 200 cars leave for Kyrgyzstan every month. Some of them are sent off further to Russia, after being registered and receiving number plates in Kyrgyzstan. Russia and Kyrgyzstan are both members of the Eurasian Economic Union, which allows registering a vehicle in one member and driving it freely in all others. The car trade is made possible by Mongolian Kazakhs like Tolotai. Their linguistic and cultural similarity allows them to freely communicate with Kyrgyzstani businessmen.

The outcomes of the past official visits and talks show that the two countries remain friendly toward each other and ready to explore avenues for cooperation. The mutual establishment of embassies promises to speed up bilateral cooperation and take it to the next level. The high-level political engagement is supplemented with people-to-people trade and interaction. Mongolia and Kyrgyzstan’s slow and steady approach to cooperation may soon turn into swift and dynamic.

Kiwi shearers helped more than 100 Mongolian herders sharpen their shearing skills during a five-week visit in several locations across Mongolia earlier this year.

Rabobank agribusiness manager Paul Brough, who helped form the Share Mongolia Programme, said the 12-strong touring party was made up of a mix of Rabobank staff and farmers from Waikato, King Country, Taranaki, Marlborough and South Canterbury regions.

The entire New Zealand group had significant shearing experience, Brough said.

The programme was set up in 2020 to introduce modern shearing techniques and equipment into Mongolia, he said.

Shearing training courses in Mongolia were first trialled last year, with four Mongolian herders recently spending three months in New Zealand to work with shearing gangs, Brough said.

Brough said the team split into three groups and delivered seven five-day training courses to a total of 112 Mongolian herders across seven different provinces in five weeks.

The majority of the herders had little or no experience with machine shears having previously done their shearing with scissors.

After the course most could shave a sheep in around five minutes, much faster than the 25 minutes they were taking when they first used an electric shear.

Brough said course participants in each area have been left with five shearing machines and a grinder so they could put their new skills into practice.

“These are usually left with a local co-op to share amongst the participants as they see fit,” he said.

While delivering the training the New Zealand touring party lived with local herders.

A recent United Nations Industrial Development Organisation report found up to 4000 jobs could be created in Mongolia by machine shearing, and that 9000 tons of Mongolian wool was wasted each year because of limited resources and capacity.

The Mongolian wool industry had huge potential, with some locals who attended the training starting their own businesses.

“Nearly 45% of the 67 million livestock in Mongolia are sheep, estimated to be around 30 million head, with the ability to produce about 30,000 to 35,000 tonnes of wool annually,” he said.

“There is huge scope for improving economic income by sharing the knowledge and expertise of New Zealand farmers with Mongolian herders.

Brough said the Share Mongolia Programme attracted the interest of overseas companies keen to source Mongolian wool.

“We’ve had a few international carpet manufacturers taking an interest. And we’ve also had a pharmaceutical group from Europe get in touch and ask us to help source Mongolian wool,” he said.

The four Mongolian herders who attended training in New Zealand earlier this year acted as interpreters and assistant trainers on the most recent trip, Bough said.

“It was great to see Budee, Baaska, Ama and Khanda again and to have them help with the training,” he said.

“At this stage, they need someone with a bit more experience to guide them through the training, but with a bit more time, the plan is to have them running the courses by themselves.

“The new skills and money they acquired during their trip to New Zealand had a huge impact on their lives and they are now wealthy people by local standards.”

“Two of them have started a commercial shearing business together utilising one of the mobile shearing trailers we set them up with, while the other two are also working as shearers in their local regions.

“They’re all shearing up to 200 sheep a day, as opposed to the 25 sheep a day they were shearing prior to their New Zealand visit, and this makes a massive difference to the income they can generate.”

Brough said there was demand for future training courses that also covered topics like wool handling and animal health practises.

“If we can raise the funding, it’s possible we could have up to 10 herders heading over this way [New Zealand] early next year,” he said.

The training was funded by the United Nations, the New Zealand embassy in Beijing and the Rabobank Community Fund.

Five people were killed in a traffic accident in the southern Mongolian province of Umnugovi on Wednesday evening, the country's Traffic Police Department said Thursday.

The accident occurred when a car crashed into a truck on a paved road in the territory of Khankhongor soum (administrative subdivision) of the province, the police department said, adding that all five people in the car lost their lives immediately at the scene.

The cause of the accident is under investigation, the department said, urging drivers to comply with traffic rules to protect their own and others' lives.

Mongolia’s frontier market and vast mineral reserves represent potentially lucrative opportunities for investors but vulnerability to external economic and financial shocks, ineffective dispute resolution, and lack of input from stakeholders during rulemaking warrant caution. Mongolia imposes few market-access barriers, and investors face few investment restrictions, enjoying mostly unfettered market access. Franchises such as fast food and convenience stores, outperforming expectations, suggest that investors can bring successful international business models to Mongolia. The cashmere-apparel and agricultural sectors also show strong promise. However, investing into politically sensitive sectors, including mining, carry higher risk.

Mongolia attracts investor attention but has trouble converting interest into investment. Unless and until Mongolia embraces a stable business environment that transparently creates and predictably implements laws and regulations, investors will likely find Mongolia too risky and opt for more competitive countries. An essential step to mitigate these risks is for Mongolia to implement the U.S.-Mongolia Agreement on Transparency in Matters Related to International Trade and Investment (known as the Transparency Agreement), which requires a public-comment period before new laws and regulations become final. Mongolia has implemented some of this agreement but is over five years behind full implementation of public-notice commitments. Parliament, however, with its D-Parliament online platform, is leading the way in increasing public engagement and engaging the public in the rulemaking process, offering a model for the government.

Government and parliament continue to address threats to judicial independence by implementing 2019 constitutional amendments and 2020 statutory judicial reforms that have improved transparency and reduced political influence in the appointment and removal of judges. Investors, however, continue to cite long delays in reaching court judgments, followed by similarly long delays in enforcing decisions, as well as reports that administrative inspection bodies, such as the tax authority, sometimes fail to act on politically sensitive decisions or cases involving politically exposed Mongolians. Businesses note substantial and unpredictable regulatory burdens at all levels; and cite an excessively slow tax dispute resolution process as an indirect expropriation risk. Investors are particularly concerned about a tax process that they believe effectively lets officials issue excessive, confiscatory tax assessments to coerce settlements. Finally, the perception that the government favors its own state-owned entities over private sector companies discourages existing investors from expanding, and new investors from coming. More positively, parliament has streamlined procedures for, and reduced the required number of, permits and licenses while the Government has moved delivery of most services onto digital platforms, increasing efficiency of its business registration processes.

COVID-19’s aftermath and Russia’s invasion of Ukraine stressed Mongolia’s economy. In late 2021, Mongolia’s parliament passed its New Recovery Policy, a 10-year development plan to increase national productivity by improving transport logistics, energy production, industrialization, urban and rural infrastructure, and green development. This program depends on restoring market access for mining exports, the primary revenue source. Relaxation of PRC border restrictions in late 2022 has eased bottlenecks along the Mongolia-China border, increasing export revenues and relieving near term fiscal and balance-of-payments risks. Meanwhile, Russia’s unprovoked invasion of Ukraine, prompting unprecedented international sanctions on Russia, continues to contribute to uncertainty about access to critical imports, such as petroleum products, electricity, and such key commodities as wheat and fertilizer.

See the full document on the link https://mn.usembassy.gov/2023-investment-climate.../