Ulaanbaatar /MONTSAME/. The National Statistics Office has recently released the latest edition of the ‘Economic Security’ survey. In its section titled ‘Balanced policy of investment’, the total investment made in Mongolia reached MNT 83.3 trillion between 2010 and 2019, and out of them,

- MNT 36.6 trillion (43.9 percent) are domestic investment,

- MNT 46.7 trillion (56.1 percent) are foreign investment.

According to the survey, 36.1 percent of the domestic investment was budget investment in 2010-2019, while foreign direct investment (FDI) accounted for 81.8 percent of total foreign investment.

Survey also shows that the foreign direct investment in Mongolia during the given period reached MNT 37.2 trillion in total, accounting for 44.7 percent of the total investment in the country, however, it’s unstable and volatile.

Investment in the mining sector accounts for 37.5 percent of gross domestic product, as the share of mining industry’s investment equaled to 63.7-56.3 percent of the gross domestic product between 2011 and 2012 and decreased to 22.4 percent in 2015.

With the commencement of the Oyu Tolgoi open pit mine development, large inflows of investment came in 2011, and the foreign direct investment of 2011 and 2012 accounted for already 24.7 percent of the total investment over the last 10 years. Caused by world market price drops and domestic political instability, the FDI to Mongolia plummeted in 2013 and 2014.

In terms of countries invested, Canada financed 47.5 percent of the total foreign direct investment made 2011, and 65.7 percent in 2019.

Investment from Japan to Mongolia had slowed down, from 6.6 percent of foreign direct investment in 2014 down to 4.3 percent in 2019.

B.Dolgormaa

(Reuters) - The National Basketball Association postponed three playoff games scheduled for Wednesday after the Milwaukee Bucks boycotted Game 5 of their playoff series against Orlando Magic in protest over racial injustice.

The action by the Wisconsin-based team follows the police shooting of Jacob Blake, a Black man, in the city of Kenosha, also in Wisconsin, on Sunday.

In addition to the Bucks-Magic game, the Houston Rockets vs. Oklahoma City Thunder and Los Angeles Lakers vs. Portland Trail Blazers games were also postponed and will be rescheduled, the league said.

“Over the last few days in our home state of Wisconsin we have seen the horrendous video of Jacob Blake being shot in the back seven times by a police officer in Kenosha and the additional shooting of protesters,” the Bucks players said in a statement.

“Despite the overwhelming plea for change there has been no action so our focus today can not be on basketball.”

The players called on the Wisconsin state legislature to reconvene to pass meaningful measures to address issues of police accountability, brutality and criminal justice reform.

Aug 26, 2020; Lake Buena Vista, Florida, USA; The court and benches are empty of players and coaches at the scheduled start of an NBA basketball first round playoff game between the Milwaukee Bucks and the Orlando Magic, Wednesday, Aug. 26, 2020, in Lake Buena Vista, Fla. at ESPN Wide World of Sports Complex. Mandatory Credit: Ashley Landis/Pool Photo-USA TODAY Sports

“We encourage all citizens to educate themselves, take peaceful and responsible action, and remember to vote on Nov. 3.”

Kenosha has been rocked by civil unrest and violence since Sunday, when police shot Blake, 29, in the back at close range in an incident captured on video. Blake is paralyzed and is being treated for his injuries.

A 17-year-old identified as Kyle Rittenhouse was arrested and charged with homicide on Wednesday in connection with gunfire that killed two people and wounded a third during a third night of protests on Tuesday.

The Magic, who trail 3-1 in the best-of-seven, first-round series, left the court when it was clear the Bucks were not going to play.

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Beyonce’s song “Freedom” rang out in the empty arena in Orlando as the clock counting down to the start of the game ran out.

The Athletic reported that the Bucks players remained in their locker room attempting to reach Wisconsin attorney general Josh Kaul.

The Bucks ownership said they were not aware ahead of time of what the players were planning but supported them.

“The only way to bring about change is to shine a light on racial injustices that are happening in front of us,” co-owners Marc Lasry, Wes Edens and Jamie Dinan said in a statement.

Slideshow (4 Images)

The protests also spilled over to Major League Baseball, with the Brewers and Cincinnati Reds opting not to play their game Wednesday in Milwaukee. The Seattle Mariners and San Diego Padres also agreed to postpone their game, ESPN reported.

The WNBA also cancelled its slate of games for Wednesday. Players on the reigning champion Washington Mystics wore t-shirts that depicted seven bloody bullet holes in their backs.

Protests against racial injustice and police brutality have been at the forefront since the NBA restarted its COVID-19 hit season in a bio-secure bubble at the ESPN Wide World of Sports complex near Orlando last month.

The courts have the words “Black Lives Matter” painted on them and many players are wearing jerseys with social justice slogans, but the Bucks’ boycott was the most dramatic move by a team to date.

Additional reporting by Frank Pingue in Toronto, Editing by Aurora Ellis, Rosalba O'Brien and Richard Pullin

Copper was once again approaching the psychologically important $3 a pound level on Wednesday on the back of falling inventories, booming Chinese demand and pandemic hit supply from South America, the US and Africa.

Copper for delivery in December trading in New York jumped 1.5% to $2.9965 a pound ($6,605 a tonne) in afternoon trade, bringing gains for 2020 to more than 7% and a whopping 50% since the covid-19 lows struck in March.

“CHINA IS IMPORTING MORE REFINED METAL FROM NEARLY EVERY COUNTRY SUGGESTING A STRUCTURAL SHIFT NOT A TEMPORARY CHANGE”

Jonathan Barnes – Roskill

A new report from Roskill suggests the rally in copper – which has surprised many with its speed – has further to go.

Jonathan Barnes, associate consultant for copper at the London-based metal and minerals research firm, says while the effects of covid-19 could decrease world consumption of the metal by 3%–4% this year, the drop in mine output and scrap flows has been greater.

Signs of panic buying

The effect of this is most visible in the fall in stocks around the world.

Total visible stocks globally, which include those on exchanges and bonded warehouses in China fell by 40% from March to end-July to below 600,000 tonnes. Inventories in LME warehouses are at 13-year lows.

China is responsible for more than half the world’s copper consumption and the country is sucking up copper at record-setting rates.

“China is importing more refined metal from nearly every country suggesting a structural shift not a temporary change,” says Barnes.

“If you are looking for signs of panic buying, you can find evidence of that in China – total Chinese stocks represent less than two weeks’ consumption at current rates of use.”

In the rest of the world, where demand has dropped by much more relative to China, stocks represent only one week of consumption.

Secondary shortfalls

The lack of available scrap – imports are down 50% in the first half – after Beijing delayed new importing rules, has forced the Chinese buyers to replace secondary sources with cathode, further driving down visible inventories.

Roskill estimates a roughly 300,000 tonne shortfall in imports of secondary materials – scrap, ingots and granules – into China in January to July.

Barnes believes global scrap flows may not normalize until the first quarter of next year, but would depend on new rules in China.

Barnes says Roskill’s sources have not been able to confirm that China’s State Reserve Bureau has been buying up strategic stocks of copper, “but if they were, they probably would have done so earlier, when prices were much lower.”

Two-year restocking cycle

Disruptions to mine supply could be between 750,000 to 1 million tonnes in 2020, with eight out of the 10 largest miners recording lower output during the first half of the year.

China’s concentrate imports are down year on year while sourcing anodes and blister from the central Africa copper belt is also hitting roadblocks.

Barnes says China’s two-year restocking cycle is rising in amplitude as the country’s dominance in the copper market increases and he expects an 11.5% rise for the full year in copper imports.

The country has a structural copper market deficit and it restocks whenever LME prices appear attractive. Moreover, says Barnes, China can take a long term view and use tomorrow what it does not need today.

Roskill expects trade data to show another bumper August for imports, despite being a seasonally muted month for shipments.

Parallels to post-GFC

Barnes says the copper price will likely rise further towards the end of 2020, and that the current environment has strong parallels to the rebound in the copper price after the global financial crisis.

Copper hit a low of $1.32 a pound in January 2009, then surged to $3.55 by April the next year on its way to an all-time peak of $4.58 (more than $10,000 per tonne) in February 2011.

Mongolia has achieved notable success in protecting the health of its citizens and preventing the community spread of COVID-19. As of mid-August 2020, Mongolia had experienced no deaths from COVID-19 and 300 cases, all imported. Mongolia’s containment strategies allowed the country to re-open businesses internally and hold a successful national election. But its success has come at a price, as the country is now struggling to restart its export-driven economy and deal with mounting international debts.

A protester waves a Mongolian flag during a demonstration at Sukhbaatar Square in Ulaanbaatar, Mongolia, 27 December 2018 (Photo: Reuters/B. Rentsendorj).

In January 2020, Mongolia began working closely with the World Health Organization (WHO) and activated the country’s inter-agency emergency management system. This empowered the State Emergency Commission (SEC) — a governmental body led by the National Emergency Management Agency (NEMA) — to lead the country’s coronavirus response.

Mongolia began health screening of travellers in late-January and halted all international flights and trains by early March when its first case was discovered. Mongolia requires that anyone arriving from abroad undergo testing, spend three weeks in a government-monitored quarantine facility and then two additional weeks in self-quarantine. In February, the country sharply curtailed Lunar New Year celebrations, and July’s Naadam festival was held without spectators.

Mongolia’s strict measures paid off — there has been no community transmission of COVID-19 in the general population. More than 60,000 Mongolians have returned from abroad since the start of the pandemic. Approximately 300 of these returnees, mostly from Russia, have tested positive. 289 have recovered with no deaths recorded. Most businesses in Mongolia reopened in May, including restaurants, hotels and holiday resorts. Mongolia’s isolation and small population have helped the country stop the spread of COVID-19, but there are concerns that relaxing travel restrictions could lead to a surge in cases.

Life and economic activity within the country have largely returned to normal, but the border closures and global economic slowdown have severely impacted Mongolia’s economy. In the first six months of 2020, Mongolia’s GDP fell 9.7 per cent, exports fell by over 40 per cent and the government deficit rose to almost 10 per cent of GDP as revenues fell and expenditures rose to address the pandemic. Mongolia’s exports are dominated by natural resources including coal, copper, oil and agricultural products hit by falling international demand.

Mongolia’s most important mining project, Oyu Tolgoi — a massive underground copper and gold mine being developed by Rio Tinto — was already facing delays and cost overruns due to technical issues and disputes with the Mongolian government, which holds a 34 per cent share. Copper exports from the operating part of the mine have been delayed due to border closures. Travel restrictions have also prevented the rotation of key personnel, creating more uncertainty and delays for the project that is now not expected to come online until 2023. Mongolia’s herders in rural areas have also been impacted as demand for their main product, cashmere, plunged during the key early-spring buying season.

Mongolia’s economy is tightly tied to China, where the country sends more than 90 per cent of its exports. While steps have been taken to reopen the border to trade, COVID-19 precautions and market disruptions have resulted in an ongoing reduction in exports. Concerns have been raised about Mongolia’s government debt levels which have risen to 77 per cent of GDP.

The IMF warned that Mongolia faces longer term economic risks due to high government and private debt levels, a heavy reliance on natural resource exports and uncertainties in global economic recovery. Mongolia has already tapped into international aid from the Asian Development Bank, the World Bank and the IMF to cover its short-term government financing needs. But the country risks debt distress if the economy is unable to recover in the near future.

Mongolia held its scheduled parliamentary elections on 24 June 2020. The election campaign period was shortened and public gatherings were restricted due to COVID-19, but Mongolia was able to learn from South Korea’s experience and held the election with minimal disruptions. The success of the government in controlling COVID-19, an electoral system that favours major parties and voters’ desire for political stability helped the ruling Mongolian People’s Party (MPP) win 62 of 76 seats.

The pandemic was not a major issue in the election as all parties and candidates pledged to maintain strict controls. The most important related issue concerned the more than 10,000 Mongolian citizens living in other countries who wanted to return to Mongolia. Some candidates supported restricting these flights to prevent passengers from bringing COVID-19 into Mongolia, while others urged the government to speed up repatriations and allow as many Mongolians as possible to return. The overwhelming victory of the MPP ensured that repatriation flights will continue, with 4000 Mongolian’s expected to return in August 2020.

Mongolia has achieved success in its public health response working closely with neighbouring countries and global organisations. China, South Korea and Japan have all provided Mongolia with donations of equipment and expertise, and in late-February Mongolian President Khaltmaa Battulga was the first foreign head of state to visit Chinese President Xi Jinping after the start of the pandemic.

The country’s success also illustrates the challenges it faces due to its isolation and its economic dependence on global markets and other countries, especially China. Mongolia’s high debt levels will limit the new government’s ability to offer programs to reduce the social and economic effects of the pandemic and leave the country vulnerable to a prolonged global economic slowdown.

Charles Krusekopf is Professor at the School of Business, Royal Roads University, British Columbia.

Mendee Jargalsaikhan is a postgraduate research scholar at the Asia Pacific Foundation of Canada and a director at the Mongolian Institute for Innovative Policies.

This article is part of an EAF special feature series on the novel coronavirus crisis and its impact.

The Mongolian government on Tuesday extended the country's heightened state of readiness for another 15 days until Sept. 15 amid the COVID-19 pandemic.

The decision to extend the heightened state of readiness was made as part of efforts to prevent the spread of the COVID-19, the government's press office said in a statement.

As of Tuesday, the Asian country has confirmed 298 COVID-19 cases, all imported.

Thanks to the early introduction of social distancing and rigid health protocols for cross-border flows, no local transmissions or deaths have been reported in Mongolia so far. Enditem

MOSCOW - Russia's Gazprom <GAZP.MM> plans to set up a company to prepare to build another gas pipeline linking Russia to China but that will run through Mongolia, the Russian gas producer said on Tuesday.

Gazprom currently operates the Power of Siberia gas pipeline that connects Russia directly with China and is considering to build up more routes to increase annual supplies to China to 130 billion cubic metres at some point. REUTERS

Read more at https://www.todayonline.com/world/gazprom-set-company-mongolia-gas-supplies-china

Ulaanbaatar /MONTSAME/. A Memorandum of Understanding (MoU) on the establishment of a joint Mongolian-Russian special purpose company to develop a feasibility study of the project on building pipelines between Russia and China going through the territory of Mongolia was signed today. The MoU was signed by Deputy Prime Minister of Mongolia Ya.Sodbaatar and Deputy Chairman of the Board of Directors and the Chairman of the Management Committee A.Miller on behalf of their respective Governments.

The participants of the meeting noted that the realization of the project to build Power of Siberia-2 gas pipeline connecting Russia and China though the territory of Mongolia, which will transport 50 billion cubic meters of natural gas a year to China, has taken a step forward.

The meeting reviewed the implementation of the bilateral joint plan and agreed on further measures and activities to be taken by the sides. Next week, a “Confidentiality Agreement” will be established between Gazprom PJSC and Erdenes Mongol LLC.

At the request of the Russian side, Prime Minister of Mongolia U.Khurelsukh took part in the virtual signing ceremony and delivered an address.

In his address at the signing ceremony, PM U.Khurelsukh highlighted that the signing of a Memorandum of Understanding on jointly exploring the possibilities of implementing the project was one of the most important results of his official visit to Russia in December 2019.

Emphasizing that the successful implementation of the project is significant to not only enrich the comprehensive strategic partnership between Mongolia and the Russian Federation but also advance bilateral cooperation to a new level, the PM pledged to put special attention to the progress of the project and provide relevant support and assistance.

Gazprom PJSC, China National Petroleum Corporation (CNPC) and Erdenes Mongol LLC are working on the implementation of the project, reports the Media and Public Relations Department of the Government.

Global markets remained steady on Tuesday after Washington and Beijing reaffirmed their commitment to their historic trade agreement even as the two economic giants have disagreements on multiple fronts.

Top US and Chinese officials in charge of the implementation of the trade deal – Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin – continued telephone discussions on Tuesday. The trade talks, originally scheduled for August 15, became the first formal conversation on the matter between the two sides since early May.

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Rising US-China tensions create unthinkable additional burden on American economy – Professor Wolff to Boom BustRising US-China tensions create unthinkable additional burden on American economy – Professor Wolff to Boom Bust

In brief statements after the talks, both delegations described the deal’s progress as positive. China's Ministry of Commerce said that Beijing had “a constructive dialogue” with Washington, adding that the sides agreed “to continue pushing forward” the Phase 1 trade deal.

The US Trade Representative’s office (USTR) confirmed that the two countries are committed “to taking the steps necessary to ensure the success of the agreement.” However, Lighthizer's office also noted that the significant increases in purchases of US products by China were also part of the discussion, together with “future actions needed to implement the agreement.”

The call came as investors globally raised concerns over increasing tensions between the two economic superpowers. Chinese stocks ended slightly lower on Tuesday, with Hong Kong’s Hang Seng sliding around 0.2 percent and Shanghai Composite falling 0.4 percent. Elsewhere in Asia, stocks were trading higher, including in Japan, with its Nikkei 225 gaining around 1.4 percent.

Meanwhile, European stocks moved slightly higher, with markets in Britain, Germany and France trading in positive territory.

The Trump administration continues to attack Beijing over a slew of issues – from the handling of the Covid-19 outbreak to national security threats allegedly posed by Chinese tech companies. The last escalation saw Chinese tech firm ByteDance filing a lawsuit challenging the US government’s crackdown on its video app TikTok, which faces the threat of a ban in the US.

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Washington also says Beijing is not holding up its end of the bargain in the trade deal amid the coronavirus pandemic. According to the agreement signed in January, China is supposed to buy $77 billion in additional US goods and services in 2020 and $123 billion in 2021 to meet the $200 billion total. Trade data suggests that China is far from reaching the target, despite recently boosting American farm goods purchases, including soybeans. According to the Peterson Institute for International Economics, China’s year-to-date total imports of covered products from the US stood at $40.2 billion, meaning that its compliance is less than 50 percent