During her Official Visit to Turkey between March 13-14, Minister of Foreign Affairs Ms. Battsetseg held official talks with the Minister of Foreign Affairs of Turkey Mr. Mevlüt Çavuşoğlu. On March 14, the Ministers held a press conference to present the official outcomes of their talks.

During the press conference, Minister of Foreign Affairs Ms. Battsetseg said “It is my pleasure to visit your beautiful country at your, Minister of Foreign Affairs of Turkey Mr. Mevlüt Çavuşoğlu, invitation. Please accept my sincere gratitude for your warm welcome and hospitality. First of all, I would like to offer my deepest condolence again over the tragic loss and injuries caused by the devastating earthquake in the southeastern provinces of the Republic of Turkey and reaffirm that we, Mongolians, stand in full solidarity with the people of Turkey. I believe that the Republic of Turkey will be able to overcome the losses and damages within a short time. The official talks with the Minister of Foreign Affairs Mr. Mevlüt Çavuşoğlu were fruitful, and many important issues of bilateral regional and international relations were discussed in detail. Mongolia attaches utmost significance to its relations with the Republic of Turkey and strives to develop bilateral relations in all spheres. In particular, we agreed to advance the relations between our two countries from the current comprehensive partnership to the ‘strategic partnership’ and continue the mutual high-level visits in anticipation of the 50th anniversary of the establishment of diplomatic relations between our two countries.”

On the sideline of the talks, the Minister of Foreign Affairs of Mongolia Ms. Batstesteg, and the Minister of Foreign Affairs of Turkey Mr. Mevlüt Çavuşoğlu signed the Memorandum of Understanding between the Ministry of Foreign Affairs of Mongolia and the Ministry of Foreign Affairs of the Republic of Turkey on “Cooperating in Diplomatic Ceremony” which will make a particular contribution to strengthening the cooperation between the ministries.

In addition, in order to increase the trade turnover between our two countries and facilitate the export of animal products, the Extraordinary and Plenipotentiary Ambassador of Mongolia to the Republic of Turkey Mr. Munkhbayar signed the following official documents with the Secretary of Halal Accreditation Agency of Turkey Mr. Mustafa Suleiman, the Director of National Metrology Institute, affiliated to the Scientific and Technological Research Council of Turkey Mr. Mustafa Cetintaş, and the President of Turkish Standards Institution (TSE) Mr. Mahmut Sami Şahin, respectively. These are:

· “Memorandum of Understanding” between the Mongolian Agency for Standardization and Metrology and the Halal Accreditation Agency of Turkey on Halal Quality Infrastructure;

· “Memorandum of Understanding” between the Mongolian Agency for Standardization and Metrology and the National Metrology Institute, affiliated to the Scientific and Technological Research Council of Turkey;

· “Action Plan to Organize Training on Standardization, Evaluation, and Metrology from 2022 through 2026” of the Mongolian Agency for Standardization and Metrology and the Turkish Standards Institution (TSE).

China will allow all domestic companies to import Australian coal, signaling an end to trade restrictions imposed in late 2020.

Ports and customs offices have been told to allow the cargoes, according to people familiar with the decision, who asked not to be identified because the information isn’t public. Earlier this year, authorities gave four major importers permission to resume purchases of Australian coal, which began shipping in January.

The National Development and Reform Commission, China’s economic planning agency, didn’t immediately respond to a request for comment.

High-quality Australian coal is much sought after by China’s steelmakers and power plants. Imports could reach 1 million tons in the first half of March alone, according to China’s top coal lobbying group. China is the world’s biggest producer and consumer and its imports of the fuel exceeded 290 million tons last year.

Major consumer

Australian coal mining stocks, including Yancoal Australia Ltd. and New Hope Corp., narrowed losses after the news. Chinese coking coal futures extended declines.

China had been a major consumer of Australian coal before implementing its unofficial ban as political hostilities escalated between the two countries. Australian leaders have said ending the ban would be a key step in restoring ties between the nations.

The thaw in relations between the two countries comes as a welcome development for Australian exporters of other commodities hit by a raft of restrictions, including lobster, beef, barley and wine.

Australian lobster exporters aren’t seeing the same obstacles from Chinese authorities that were previously in place, Australia’s Agriculture Minister Murray Watt said at a conference in Canberra last week. And there are early signs that impediments to beef and dairy shippers are also beginning to ease, he said.

China is to resume issuing visas to foreign tourists for the first time since the Covid pandemic broke out three years ago.

The major easing of restrictions comes after Beijing declared victory over the virus and retreats from a zero-Covid strategy that has hurt its economy.

Valid visas issued before China closed to the world on 28 March 2020 will be honoured starting on 15 March.

Visa-free entry will resume in Hainan Island and Shanghai for cruise ships.

Tour groups from Hong Kong and Macau will be allowed visa-free-entry while Chinese consular offices abroad will also resume processing visa applications.

The removal of the last cross-border restrictions imposed to tackle Covid marks a major step towards the resumption of normal life in post-pandemic China. All changes take effect on 15 March.

Tens of millions of international visitors came to China each year prior to the pandemic, and its tourism industry has been hard hit by strict anti-Covid measures.

But the country can expect a significant increase in international arrivals, after it reopens its borders, analysts say.

Chinese citizens will also be allowed to travel on tour groups to 60 countries, up from 20 previously.

China said its gross domestic product grew just 3% in 2022, the worst in nearly half a century.

For the current year, Beijing has set a 5% target with new Premier Li Qiang saying that the world's second largest economy is stabilising and picking up again.

The zero-Covid policy that was lifted in December sparked rare protests against China's leader, Xi Jinping.

He has since solidified his grip on power in the Communist Party and secured a record third term as president.

A health awareness session facilitated by peacekeepers from Mongolia serving with the United Nations Mission in South Sudan (UNMISS) was held in Pariang.

More than 50 women and girls from nearby areas took part in the training meted out by Blue Helmets, including midwives, teachers, civil society and government representatives, as well as adolescent girls.

The focus: Educating women and girls on basic health and hygiene; preventing communicable and water-borne diseases and proper handwashing.

Following the main event, female peacekeepers and women had spirited conversations on a range of issues, shared common concerns and spent time getting to know one another.

“It’s been wonderful to spend the day with these inspirational women peacekeepers from Mongolia,” said Ayen Anthony Kiir, a young girl who participated in the event. “I’ve learned a lot about good health practices, played volleyball with them and even learned a few new dance steps,” she narrated with a smile. “I want to grow up to become just like them – independent and brave,” added Ayen.

After two hours of quality time, a happy group of women and girls returned to their homes with hygiene kits, aprons, study materials, and, critically, with the assurance that UNMISS is their partner in helping build a more prosperous, peaceful future.

On March 9, the Governor of the Bank of Mongolia Mr. Lkhagvasuren presented on the current economic situation to the journalists.

-What measures are taken to reduce and cover the current account deficit by the Bank of Mongolia?

Last year, the current account and payment deficit reached about USD 720 million. According to the projection, it was supposed to be USD 1.8 billion but decreased to USD 700 million at the end of the year. This deficit reduction was mainly driven by coal export. As of the end of 2022, a total of 31 million tons of coal were exported and it resulted in a decrease in the payment deficit, especially in the current account deficit. Another way to reduce the current account deficit is improving the service sector, in particular transportation services. With the stagnation in the mining sector, the transportation sector tends to become stagnant as well. In this sense, even though the Mongolian economy increased by 4.8 percent, the mining and transportation sector showed a decline.

If the production and export of the mining sector improve, the transportation sector will revive. In particular, the current account deficit of the service sector can be reduced if domestic companies and enterprises carry out the mining transportation. To that extent, it will reduce the payment deficit. Another positive impact could be an increase in foreign exchange reserves which will be resulted in stabilizing the foreign exchange rate.

According to the Ministry of Economy and Development, Mongolia can export 40-45 million tons of coal this year. If coal is transported by domestic companies from the mine-mouth to the border port at the border price, there is a possibility of making a profit of USD 1.6-2.4 billion, gaining additional income, and maintaining a balance of payments without deficit.

- The exchange rate and inflation rate are still the main concerns of people. What are your expectations in this regard?

In this regard, the balance of the payment should be improved. Since the international geopolitical tension started in February 2022, we observed its most prominent impact in May. The price index reached a record-high 16.5% and the foreign exchange reserves dropped to USD 2.4 billion. Comparing that period with today, the inflation rate is 12.3% and the foreign exchange reserves have reached USD 3.4 billion. These are, indeed, good signs. We are expecting that the inflation rate would be within our targeted level or down to 8%. These are the outcomes of the raise in the policy rate of the Bank of Mongolia. If this positive trend in the economy continues, the foreign exchange reserves will increase and the exchange rate will become more stable. Enterprises and citizens still have expectations that the US dollar will rise against MNT. Therefore, they are still preferring dollar deposits over MNT deposits.

- Can all commercial banks complete their IPOs within this year?

According to the amended Code on Banks, five systematically important commercial banks are obliged to become public companies and offer their shares to the public. Last year, Golomt Bank and State Bank listed their shares, while Khan Bank received their approval. Now the IPOs of Khas bank and Trade and Development Bank are pending. The code amendment that is pushing Mongolia’s banks to go public requires all systemic banks to list 20% by June 30, 2023. Since there is deadline, we are expecting their IPO’s will complete within this year.

Rio Tinto Group has begun digging copper from the underground portion of its giant mine in Mongolia, an expansion that will turn the operation into one of the world’s largest, after years of delays, cost blow-outs and billion-dollar disputes with the country’s government.

The Oyu Tolgoi project is now producing ore from 1.3 kilometres below the surface of the Gobi Desert, Rio’s Chief Executive Officer Jakob Stausholm told reporters gathered at the site. The world’s No. 2 miner is spending $7 billion on the underground project that’s a cornerstone of the company’s growth plans.

“It’s not been a smooth ride, let’s be honest about that,” said Stausholm, referring to the mine’s long and troubled journey as lawmakers in the resource-dependent country repeatedly sought better terms. Mongolia had “very skilfully handled” negotiations, he said.

The prize for Rio is one of the world’s few large-scale new sources of a metal needed in vastly expanded volumes as the energy transition accelerates. At its peak in 2030, Rio says its Mongolian operation will be the world’s fourth-biggest source of copper, churning out half a million tons a year. That’s enough for around six million electric vehicles or 60 of the biggest wind farms.

But the difficult route to underground production at Oyu Tolgoi — the launch was once envisaged for 2015 — reflects the challenges in bringing on new supplies. One reason is mineral-rich nations like Mongolia increasingly demanding better terms from global mining companies. Oyu Tolgoi could add a third to the size of the Central Asian nation’s economy.

Rio became Mongolia’s biggest foreign investor in 2009, when it struck a 30-year deal to develop Oyu Tolgoi. Surface mining started in 2013, but the more lucrative underground project was log-jammed as lawmakers in the boisterous democracy repeatedly challenged Rio. Claims of foreigners pillaging the country’s mineral wealth dominated election campaigns. Swings in global commodity markets and the COVID-19 pandemic didn’t help either.

Mongolian leader Oyun-Erdene Luvsannamsrai, speaking at the underground opening ceremony, acknowledged many “hiccups” for the project. Difficult negotiations with Rio were driven by a desire to maximize benefit for the country’s people, he said.

Big deal

A 2021 agreement for Rio to write off US$2.4 billion of state debt was crucial for Stausholm — chief financial officer until he was appointed to the top job in late 2020 — to get to today’s juncture. The company has already spent around US$15 billion in Mongolia, including US$4 billion of taxes or other payments to the state, Rio said.

The government retains a 36 per cent stake in Oyu Tolgoi, where some 80 per cent of the value lies underground. Many of the world’s open-pit mines are gradually expiring, while quality new resources like this one are getting harder to find.

Progress at Oyu Tolgoi is a coup for CEO Stausholm, who replaced Jean-Sebastien Jacques following the 2020 Juukan Gorge scandal in Australia, when Rio blew up ancient Aboriginal rock shelters. Big miners like Rio and rival BHP Group Ltd. are rushing to be part of the anticipated copper boom, and both were involved in multibillion dollar takeovers last year.

Oyu Tolgoi’s ore holds about 1.5 per cent copper, well above the global average of around 0.6 per cent for all copper mines, according to researcher Wood Mackenzie Ltd. Extracting the material from 1,300 meters or more below the surface offers a very different challenge from surface digging.

Rio is using a method called “block cave mining” that involves drilling spaces under the ore body, using controlled explosions to collapse the roof, then collecting the fragmented rock. This is much more costly and technically demanding than the open pits at Rio’s massive iron ore mines in Western Australia.

Despite its comparatively large size, Oyu Tolgoi will still only meet one per cent of global copper demand by 2035, according to demand estimates from S&P Global Commodity Insights, which put annual demand by then at around 50 million tons per annum. The mine also has a relatively short life, with peak production expected from 2028 to 2036.

“It’s been a tough journey so far” for Rio in Mongolia, said David Radclyffe, managing director of consultancy Global Mining Research. But “it fulfills a lot of what Rio and peers are trying to do at the moment, which is to maximize exposure to copper in the current market.”

—With assistance from Sanjit Das.

After hitting last year’s target, Türkiye and Mongolia are aiming to push their trade volume to at least $500 million (TL 9.49 billion) in the coming period before the two countries celebrate the 55th anniversary of diplomatic ties, according to their top diplomats.

“Next year, Türkiye and Mongolia will celebrate the 55th anniversary of their diplomatic relations, and therefore investment deals signed beforehand need to be revised and updated,” said Turkish Foreign Minister Mevlüt Çavuşoğlu at a joint presser with his Mongolian counterpart Batmunkh Battsetseg following a one-on-one meeting, notably the first of its kind 31 years, in the capital Ankara on Monday.

“We have discussed bilateral relations and underlined that these need to be improved by cooperating on many fields,” Çavuşoğlu informed, noting as steps to be taken include the increase of civilian and cargo flights, boosting quotas for land transports and eliminating obstacles in front of trade, as well as in education and culture, mainly due to historical and cultural ties between the two nations.

Türkiye offered Mongolia to elevate our bilateral ties from a comprehensive partnership to a strategic partnership, and we are waiting for their answer,” Çavuşoğlu revealed.

“We also inked three agreements today, which we will expand and deepen in the future,” he assured. “We discussed advancing defense industry cooperation, as well, and we are prepared to provide every support to Mongolia on this matter.”

Çavuşoğlu further thanked Mongolia for their support in the wake of the Feb. 6 earthquakes that left over 48,000 dead in Türkiye’s southeast.

“A 37-person team from Mongolia rescued eight people from the rubble in the Hatay province,” Çavuşoğlu informed, adding that the country supplied tents, including traditional Mongolian tents, for the victims.

“We are especially grateful to the Mongolian people who have continued their humanitarian support to Türkiye since day one,” he said.

The Turkish diplomat said he also thanked Battsetseg for Mongolia’s help in fighting the Gülenist Terror Group (FETÖ) and that Battsetseg confirmed no FETÖ member was left in the country.

“We have cooperated in the fight against terrorism before, and there have been conflicts in the past because of this, but this group is a threat to everyone, not just Türkiye. It’s a threat for Mongolia, as well,” Çavuşoğlu said. “Some of their schools in Mongolia were taken over by a shell company in Germany. Therefore, we gave them a friendly warning to be always vigilant about FETÖ.”

In light of Mongolia’s potential of joining the Organization of Turkic States (OTS) as an observer member, Çavuşoğlu said the organization was working to reinforce ties with all Asian nations and institutions, including the Association of Southeast Asian Nations (ASEAN) and reinstate a holistic approach to the region with more than 1,000 concrete projects.

For her part, Battsetseg emphasized that the Mongolian people “stand in harmony with Türkiye” and affirmed she and Çavuşoğlu agreed on “working to achieve a strategic partnership and carry out mutual, high-level visits on the 55th anniversary of our diplomatic relations.”

“We also reached a consensus on collaborating for projects that could symbolize bilateral relations,” Battsetseg said.

“The contribution of Türkiye’s humanitarian, diplomatic activity to the global community has been proven, be it during the COVID-19 pandemic, be it in the Russia-Ukraine war,” she concluded.

In the fourth quarter of 2022, GDP per person employed (at 2015 constant prices) was MNT 6.6 million. In 2022, the GDP per person employed was MNT 23.2 million, which increased by MNT 473.4 thousand (2.1%) compared to the previous year.

Regarding the main four sectors, productivity increased in agriculture, industry, and construction and service sector, but mining and quarrying decreased compared to the previous year.

According to the National Statistics Office of Mongolia, the value added per person employed in the agriculture sector was MNT 14.6 million, the industry and construction sector was MNT 20.5 million, the service sectors were MNT 19.4 million, mining and quarrying sector was MNT 51.9 million.

The primary extraction of the underground mine, which uses block-caving mining techniques to extract the ore at a depth of 1.3 kilometers underground, has been officially commenced.

When this underground mine, located in Khanbogd soum, Umnugovi, is fully operational, Mongolia will have the fourth largest high-technology underground mine and become one of the biggest players in the international copper market.

The Prime Minister of Mongolia, Luvsannamsrain Oyun-Erdene, today joined Rio Tinto Chief Executive Jakob Stausholm 1.3 kilometers underground to celebrate the commencement of underground production from the Oyu Tolgoi copper mine in the Gobi Desert.

Prime Minister of Mongolia Oyun-Erdene said, “I am proud to celebrate this major milestone with our partner Rio Tinto as we look towards Mongolia becoming one of the world’s key copper producers. The start of underground production at Oyu Tolgoi demonstrates our ability to work together with investors in a sustainable manner and become a trusted partner. The next phase of the partnership will enable the continued successful delivery of Mongolia’s ‘New Recovery Policy’ and Vision 2050 economic diversification strategy. Mongolia stands ready to work actively and mutually beneficially with global investors and partners.”

Rio Tinto Chief Executive Jakob Stausholm said, “We would like to thank the Government of Mongolia for their commitment as our partner in achieving this remarkable milestone. We are starting underground production 1.3 kilometres beneath the remote Gobi Desert from an ore body that will be critical for global copper production and Mongolia’s ongoing economic development. The copper produced in this truly world class, high technology mine will help deliver the electrification needed for a net zero future and grow Rio Tinto’s copper business.”

Oyu Tolgoi is expected to produce around 500,000 ton/year of copper on average from 2028 to 2036 from the open pit and underground, enough to produce around 6 million electric vehicles annually, and an average of around 290,000 t over the reserve life of around 30 years.

In addition, a partnership between Rio Tinto and Mongolia, the Oyu Tolgoi open pit and concentrator have been successfully operating for over a decade. Over 80 per cent of Oyu Tolgoi’s total value lies deep underground and the depth of the deepest shaft is 1385 meters. The total workforce of Oyu Tolgoi is currently around 20,000 people, of which 97% are Mongolian. Oyu Tolgoi works with more than 500 national suppliers and has spent around $15 billion in Mongolia since 2010, including $4 billion of taxes, fees and other payments to the state budget, according to the mining company.