MOSCOW. June 1 (Interfax) - The survey conducted for the Soyuz Vostok gas pipeline project has been successful despite the coronavirus pandemic, and Mongolia will continue to support the project, Mongolian Foreign Minister Batmunkh Battsetseg said.

"Minister Lavrov and I have discussed a number of important trade and economic cooperation projects. I am glad that, despite the pandemic, the survey conducted for the project of a gas pipeline from Russia to China via the territory of Mongolia has been progressing successfully," Battsetseg said at a press conference after talks with Russian Foreign Minister Sergei Lavrov.

"We are ready to continue our comprehensive support for the activity of the special-purpose commercial vehicle named Gazoprovod Soyuz Vostok," she said.

The minister also said she had agreed with Lavrov "to continue cooperation in the attraction of investments, which would help boost the efficiency of the Mongolian-Russian joint venture, Ulaanbaatar Railways, and modernize the company's railroad infrastructure and rolling stock."

Mongolia has invited Russian partners to join new railroad construction projects in its territory, Battsetseg said.

On May 31, Prime Minister L.Oyun-Erdene became acquainted with the works being carried out in Bayanzurkh district of the capital city.

More specifically, he became acquainted with the plans of underpass and roundabouts as well as the re-planning of ger areas in the capital city, ‘Shar Khad’ subcenter, and the project implementation for affordable, green apartments. As of currently, construction is taking place for an underpass connecting the roads of Dunjingarav and Narny Zam, while another underpass is also planned to the southwest of Narantuul Market.

By constructing underpasses and new roads as well as making appropriate changes in areas that often have heavy traffic, a study has found that the amount of traffic will be reduced by 27 percent.

Re-planning of ger areas: Of 1,694 hectares of land to be re-planned in the capital city, apartments are being constructed by 14 entities on 598 hectares of land at 24 locations in Bayanzurkh district. In the project framework, apartments for 4,247 households have been completed so far.

‘Shar Khad’ subcenter: Prime Minister L.Oyun-Erdene also became acquainted with the planning for Shar Khad subcenter. With the subcenter extending across the territory of 5 khoroos in the district, a 300-bed hospital and a kindergarten with a capacity of 240 children are planned to be built alongside apartments and other facilities. “The necessary financing for the hospital construction will be allocated from the 2022 state budget,” said the Prime Minister.

Affordable apartments: With financing of the Government of Mongolia and the Asian Development Bank, a project is currently being implemented on developing ger areas in six subcenters in Ulaanbaatar city. Green apartments will be built on 5 hectares of land in 5 phases, with 55 percent of the apartments to be rent-to-own, 15 percent to be rented through welfare, and 30 percent to be sold at the market price. For instance, 0.16 hectares of land have been acquired to build a model apartment building with a capacity of housing 20 households in Khoroo 19 of Bayanzurkh district. With four households having previously lived at the location, the land and real estate owned by each of the households were valued at an average of MNT 40 million, with 1 sq.m being MNT 100 thousand. The apartment building is planned to be completed alongside parking space and green area this year.

“In order to support decentralization, the Government has to support the Municipality of Ulaanbaatar. In its framework, six subcenters will be developed which will later be increased to 10, supporting private sector investment and the relocation of government organizations.

The 2022 state budget will be focused on financing the development of subcenters by constructing apartments, schools, kindergartens, hospitals, and green areas and creating more job opportunities. Through this, it will become possible to decentralize and reduce traffic congestion in the capital city,” said Prime Minister L.Oyun-Erdene.

On June 1, Minister of Foreign Affairs B.Battsetseg held official talks with Minister of Foreign Affairs of the Russian Federation S.V.Lavrov in the framework of her visit.

The Foreign Ministers exchanged views on bilateral relations and a wide range of matters regarding regional and international cooperation. Assessing the current state of relations between Mongolia and Russia, they discussed plans to further develop relations, especially through organizing mutual high-level visits and accelerating large-scale projects being implemented in priority sectors.

Discussing the progress of the joint plan being implemented on the celebration of the 100th anniversary of the establishment of diplomatic relations between Mongolia and Russia, the Ministers agreed to give more significance to the activities planned in its framework.

The sides also exchanged views on opportunities to further develop bilateral trade and economic cooperation, and expressed their satisfaction in the progress being made in the studies being carried out for the construction project for a gas pipeline supplying natural gas from Russia across Mongolia to China.

Furthermore, it was decided to enhance the operations of ‘Ulaanbaatar Railway’ Mongolian-Russian Joint Stock Company and continue to cooperate in making necessary investments for renewing railroads and train cars.

Agreement was also reached on deepening cooperation in the education, culture and arts, and humanitarian sector. For instance, the work to establish a Mongolian-Russian joint school in Ulaanbaatar city was decided to be accelerated.

Within the framework of international and regional cooperation, the sides agreed to continue the tradition of close cooperation between the two countries.

Following the talks, the Foreign Ministers of Mongolia and Russia held a joint press conference. Moreover, the two Ministers also attended the ceremony to award Hero of Mongolian People’s Republic, Hero of USSR, cosmonaut Jugderdemidiin Gurragchaa with the Order of Alexander Nevsky per the decree of Russian President Vladimir Putin.

Canada’s Centerra Gold (TSX: CG) announced late on Monday that its Kyrgyz subsidiaries have filed for bankruptcy in New York to protect investors and restructure the company, whose Kumtor gold mine was seized by the former soviet nation last month.

The Toronto-based miner said it hoped the internationally recognized restructuring process will facilitate potential negotiations with the government of Kyrgyzstan, which is now in full control of Kumtor.

Centerra also noted the ongoing proceedings will not impact any other areas of the company’s business, including its Mount Milligan copper-gold mine in Canada, the Öksüt gold operation in Turkey and the molybdenum business in North America.

The move comes on the heels of the Kyrgyz government organizing a press tour to the mine last week, in which it said Kumtor was operating as usual.

“There are no problems at the Kumtor mine,” Nurdin Usenov, mill manager and acting director of operations told reporters. “All departments are working, production targets are being met, there are enough stocks of spare parts, consumables, lubricants and fuel.”

According to a new law passed in mid-May, the Kyrgyz government can take control for up to three months of any company that operates under a concession agreement if that firm violates regulations that damage or put locals and the environment at risk.

The head of a Kyrgyz state commission investigating alleged wrongdoing at the Kumtor mine, Kamchybek Tashiev, said on May 17 the agreement with Centerra Gold had to be revoked on the grounds of “corruption” and “violations of safety and environmental regulations.”

At the same time, a Kyrgyz court fined KGC more than $3 billion for allegedly unloading mining waste on glaciers near the mine, 4,000 meters above sea level. A state commission also recently claimed that the KGC owed more than $1 billion in unpaid taxes.

Former Kyrgyz Prime Minister Omurbek Babanov was detained on Monday as part of the investigation into corruption linked to the development of Kumtor.

Inside job?

The man who now controls the operation, Tengiz Bolturuk, was one of Kyrgyzstan’s three appointed representatives on the 11-man board of Centerra directors.

The dual Kyrgyz-Canadian citizen is being sued by the Canadian miner under the premise that he conspired to steal the asset from the company while he was a director.

Bolturuk had gained a reputation as a very hostile colleague in Toronto, two sources familiar with his time on the board told Eurasianet.

At home he had been making an impression, too. In a letter published in Kyrgyz media, employees of Kyrgyzaltyn, the state miner that owned the government’s shares in Centerra, showed discontent with Bolturuk’s growing involvement in Kumtor’s operations.

The document claimed he had fired dozen of locals employees and seemed to have positioned himself as the de facto head of the mine.

Strategic review

In a conference call on Tuesday, Centerra said it was conducting a “strategic review” of its ownership of KGC and KOC.

“The seizure of the mine is based on false information and groundless allegations that undermine everything we have built together,” Scott Perry, Centerra’s president and CEO said in an open letter to the people of Kyrgyzstan. “We fear that the government’s unjustified action will put thousands of well-paying jobs and the businesses of hundreds of Kyrgyz suppliers at risk.”

Kumtor is the largest of Centerra’s three gold mines, accounting for over 50% of the company’s total output.

The operation is also crucial to Kyrgyzstan. It accounts for a fifth of the ex-Soviet country’s total industrial output and has produced more than 13.2 million ounces of gold between 1997 and the end of 2020. Last year’s output was slightly over 556,000 ounces.

Dalton Baretto, Canaccord Genuity

Arbitration proceedings can take up to ten years and even if the Canadian miner succeeds, there is not guarantee it will be paid the stipulated amount.

Dalton Baretto of Canaccord Genuity said in a May note that he wasn’t surprised by Kyrgyzstan’s move.

“We have been anticipating something like this since President Japarov took power on January 10; however, the speed and breadth of these reforms has caught us off-guard,” he wrote.

The analyst added he believed the government has opened the door to what is likely going to be a multi-year degradation of the relationship between Centerra and the Kyrgyz State.

“While Centerra Gold will leverage all available avenues of international trade disputes, we believe these are unlikely to be effective in the long term,” Baretto said.

Kumtor has been the focus of a number of disputes between the company and the Kyrgyz government.

Japarov, who seized power after violent riots last October, once campaigned for the nationalization of the mine. After winning January’s elections and assuming the post, however, he said he no longer considered it necessary.

Kyrgyzstan has a history of popular uprisings and political turmoil, ever since gaining its independence after the collapse of the Soviet Uni

The volume of trade between Russia and China amounted to $104 billion at the end of last year and continues to grow, according to Russian Foreign Minister Sergey Lavrov.

“The treaty [signed by Russia and China in 2001 – Ed.] plays a significant role in accelerating trade and economic cooperation. We have something to show to the public. Over the past 20 years, mutual trade has increased 13 times – from $8 billion to $104 billion by the end of 2020,” Lavrov said on Tuesday in a video message to the participants of the 6th International Conference ‘Russia and China: Cooperation in a New Era’.

The foreign minister added that investment cooperation between the two nation continues on 70 projects worth over $120 billion.

Despite the economic disruptions caused by the coronavirus pandemic, trade between Russia and China still exceeded the targeted $100 billion last year, but was down almost 3% compared to 2019. The two countries want to double the volume of trade to $200 billion. The target level could still be reached by 2024, the head of the Russian Export Center, Veronika Nikishina, earlier told TASS.

Climate activists who scored big against Western majors last week had some unlikely cheerleaders in the oil capitals of Saudi Arabia, Abu Dhabi and Russia.

Defeats in the courtroom and boardroom mean Royal Dutch Shell (RDSa.L), ExxonMobil (XOM.N) and Chevron (CVX.N) are all under pressure to cut carbon emissions faster. That’s good news for the likes of Saudi Arabia’s national oil company Saudi Aramco (2222.SE), Abu Dhabi National Oil Company and Russia's Gazprom (GAZP.MM) and Rosneft (ROSN.MM).

It means more business for them and the Saudi-led Organization of the Petroleum Exporting Countries (OPEC).

"Oil and gas demand is far from peaking and supplies will be needed, but international oil companies will not be allowed to invest in this environment, meaning national oil companies have to step in," said Amrita Sen from Energy Aspects consultancy.

read more

Climate activists scored a major victory with a Dutch court ruling requiring Royal Dutch Shell to drastically cut emissions, which in effect means cutting oil and gas output. The company will appeal. read more

The same day, the top two U.S. oil companies, Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N), both lost battles with shareholders who accused them of dragging their feet on climate change. read more

"It looks like the West will have to rely more on what it calls "hostile regimes" for its supply," joked a high-level executive from Russia's Gazprom oil and gas group, referring to energy companies around the world owned completely or mostly by the state.

Saudi Aramco, Adnoc and Gazprom all declined to comment. Oil major Rosneft, in which the Russian state has the biggest stake, also declined to comment.

A senior Saudi Aramco staffer said the court ruling would make it easier for OPEC to ramp up production.

"It is great for Aramco," the staffer said.

Western oil majors like Shell have dramatically expanded in the last 50 years, as the West sought to cut its reliance on energy from the volatile Middle East, and from Russia.

Those same Western energy majors, including BP and Total, have set out plans to sharply reduce emissions by 2050. But they face growing pressure from investors to do more to meet U.N.-backed targets to limit global warming.

Saudi Aramco, listed on the Saudi bourse but majority state owned, is not under the same sort of pressure to cut its carbon emissions, although the kingdom's rulers aim to sharply increase the country's use of renewables.

Gazprom expects demand for natural gas to grow in the coming decades and for it to play a bigger role in energy consumption than renewable sources and hydrogen. read more

Western oil majors control around 15% of global output, while OPEC and Russia have a share of around 40 percent. That share has been relatively stable in the last decades as rising demand was met with new producers like smaller private U.S. shale firms, which today face similar climate-related pressures.

PEAK DIVIDENDS

Since 1990, global oil consumption has grown to 100 million barrels per day from 65 million bpd, with Asia providing the lion's share of growth.

Countries such as China and India have made no pledges to reduce oil consumption, which on a per capita basis is still a fraction of the levels in the West. China will rely heavily on gas to cut its huge coal consumption.

The International Energy Agency, which looks after energy policies of the West, issued a stark appeal last month to the world to essentially scrap all new oil and gas developments. But it gave no clear formula on how to reduce demand.

Despite pressure from activists, investors and banks to cut emissions, Western oil majors are also tasked with maintaining high dividends amid heavy debt. Dividends from oil companies represent significant contributions to pension funds.

"It is vital that the global oil industry aligns its production to the Paris goals. But that must be done in step with policy, changes to the demand side, and the rebuilding of the world’s energy system," said Nick Stansbury from Legal & General, which manage £1.3 trillion ($1.8 trillion) in assets on behalf of savers, retirees and institutions.

"Forcing one company to do so in the courts may (if it is effective at all) only result in higher prices and foregone profits," he said. Legal & General, one of the world's largest fund managers, holds assets in most oil majors.

Climate lawsuits have been filed in 52 countries in the past two decades, with 90% of those in the United States and European Union, risk consultancy Verisk Maplecroft said.

"In the West, energy investments will peak on fears and concerns over regulations and court rulings. Then, we will see peak dividends," said the Aramco executive. Aramco pays the highest annual dividend of $75 billion.

Over the past five years, the IEA has been predicting a large oil shortage and an oil price spike due to a lack of investments following a 2014-2017 oil price crash.

An oil price rally coupled with the declining strength of oil majors would mean a large wealth transfer from the West to countries like Russia and Saudi Arabia, until demand starts declining not only in the West but in Asia too.

"The same oil and gas will still be produced. Just with lower ESG standards," said an executive from a Middle Eastern producer, who previously worked for an oil major, referring to environmental, social and governance performance measurements.

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June 1 (Xinhua) -- Mongolia's COVID-19 tally rose by 790 to 59,229 in the last 24 hours, the country's health ministry said Tuesday.

The national death toll climbed to 297 with seven more fatalities, and total recoveries rose to 50,763 as 327 more patients had recovered, according to the ministry.

The Asian country launched a nationwide COVID-19 vaccination campaign in late February, aiming to cover at least 60 percent of its population of 3.3 million.

More than 1,858,500 Mongolians have so far received their first dose, and over 1,306,400 have been fully vaccinated.

From today (1 June), Mongolia is officially re-opening its borders and starting international flights to over 10 countries including the USA, Turkey, Brazil, Thailand, Greece, India and Australia thus allowing international arrivals.

Currently, over 110 countries such as Russia, China, Japan and European countries are partially or fully closed amid concerns related to the coronavirus pandemic. Therefore, Mongolian Government is actively discussing with those countries through diplomatic lines to confirm vaccine certification for those who get vaccination against Covid-19.

As early as 27 January 2020, Mongolia closed its borders with China, only four days after Chinese authorities locked down Wuhan. By the time it recorded its first case on 10 March 2020, and as the WHO declared a global pandemic, Mongolia was already shut off from the world. As a result of its prompt response to the risk, and the government’s readiness to introduce unpopular – yet effective measures – the country if 3.3 million was able to prevent local transmission until November 2020.

RIGA - Latvia and Mongolia must seize the all opportunities to expand cooperation, including on the parliamentary level, which would also pave the way for closer business and education cooperation, Saeima Vice Speaker Dagmara Beitnere Le-Galla (New Conservative Party, JKP) said while meeting with Mongolia's new Ambassador to Latvia Barkhas Dorj.

As LETA was told at the Saeima press office, Beitnere-Le Galla noted Latvia's transport infrastructure and geographical location providing convenient access to Northern Europe. The ambassador agreed on the significance of transport in Latvian-Mongolian cooperation, voicing support for the planned Latvian-Mongolian transport agreement.

The officials also discussed prospects for cooperation on education, with the ambassador expressing satisfaction that young people from Mongolia are also studying at Latvia's universities. He said that in the future they will become envoys promoting cooperation between Latvia and Mongolia.

Beitnere-Le Galla stressed culture as an important area for cooperation, noting Mongolia's rich heritage. The ambassador promised to step up cultural cooperation between the two countries at a time when they are marking the 30th anniversary of their diplomatic ties. The ambassador also underlined the two countries' common democratic values.

Ulaanbaatar, Mongolia--(Newsfile Corp. - May 31, 2021) - Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) is pleased to share that Executive Vice President & Director, Aneel Waraich, and Senior Vice President & CFO, Jeremy South, will be participating in a virtual fireside chat hosted by Alliance Global Partners' Managing Director and Head of Metals and Mining Research, Jake Sekelsky on Thursday, June 3rd, 2021 at 10 am EST.

As Asia's newest gold producer, the Steppe team is thrilled to share their story with Alliance Global Partners' investors. After achieving one year of production amidst a global pandemic, with solid cashflow in the bank and newly-doubled resource estimates of 2.45M oz Au Eq, Steppe Gold is embarking on its Phase 2 expansion plans this year.

About Steppe Gold Limited

Steppe Gold (TSX: STGO) (OTCQX: STPGF) is Mongolia's premier precious metals company, holding a portfolio of gold and silver projects covering over 20,000 hectares, including the Altan Tsagaan Ovoo Project (ATO Project) and the Uudam Khundii (UK) property.