Mining ‘moderately exposed’ to effects of coronavirus www.mining.com

The metals and mining sector will be moderately exposed as a result of the ongoing coronavirus outbreak worldwide, said Moody’s in its latest report on global sectors based on data collected as of mid-March.

Gold price rebounds – biggest rally since June 2016 www.mining.com

The gold price surged on Tuesday after the latest action by the US Federal Reserve to shore up financial markets and the announcement of a massive stimulus program by the Trump administration convinced investors that the metal’s status as a safe haven asset and inflation hedge remains intact.

Three citizens that arrived on charter flights test positive for COVID-19 www.montsame.mn

Rio Tinto provides update on Oyu Tolgoi project www.montsame.mn

Ulaanbaatar /MONTSAME/ On March 16, Rio Tinto mining group issued a press release on the latest update of the Oyu Tolgoi project in Mongolia.

Mongolia Announces 3 New COVID-19 Cases, Totaling 4: How They Got Coronavirus Precautions Right www.forbes.com

How is it that Mongolia, a land that borders China and one of the likeliest to be a country where the disease would spread quickly and viciously, still has only four confirmed case of COVID-19, three of which were just announced today? Well, they acted quickly.

The first case, detected just last week on March 9 was made public when a French national who entered the country for work purposes began to show symptoms while in Dornogobi province.

Landing March 2 on an Aeroflot flight from France, transiting through Moscow, it was five days before he showed symptoms of the virus, eventually testing positive for COVID-19 in the province, near the border with Inner Mongolia, China. He remains under isolation in the National Center for Communicable Diseases in Ulaanbaatar, where he chose to remain for treatment and is reported to be in stable, healthy condition.

Of the 207 people who came into contact with the first infected case, all have tested negative for contracting coronavirus and local Mongolian news agency Montsame reported that “two citizens who have been in close contact with the French national have also left the territory of Dornogobi aimag despite the recommendations sent from a health organization. The members of the State Emergency Commission noted that the two citizens will be held legally responsible for their actions.”

This statement quickly makes you realize that the Mongolian government is taking things seriously. Very seriously.

But, despite that, it was too late. He was already in the country, escalating tensions between locals and the foreigners who call the country home. (Tensions have since calmed and locals have nicknamed him “Ankh-Otgon,” or “First-Last.”)

Unfortunately, he was not the last. Three new cases were announced today from three passengers aboard special chartered flights returning Mongolian citizens living and studying abroad from France and Germany. The passengers were placed into isolated quarantine upon landing in Mongolia, where they tested positive. They’ve started to receive the necessary treatments.

But even before these cases were detected, and before the WHO declared a pandemic, warning that government systems need to be “urgent and aggressive,” Mongolia did just that. And they did it surprisingly well. And that’s proving to be the best thing any government can do to protect its people right now.

I’d be remiss if I didn’t fail to mention it doesn’t hurt that with temperatures well below freezing, people are mostly covered up in layers from head to toe. When temperatures begin to warm, it will be interesting to see if additional cases within the country start to surface.

Mongolia began taking precautionary actions back in January – they were the second country to close their borders with China.

Just a few weeks after the first case was announced in China on December 31, 2019 the Mongolian government announced they would be closing the borders with China on January 27. They were the second country to do so, after North Korea.

Schools began closures that same date (January 27).

Continuous announcements canceling events across the country were made. All public events and gatherings through the upcoming weeks were now canceled, a major challenge with one of the most celebrated holidays of the year, Tsagaan Sar, or Mongolian Lunar New Year, quickly approaching in February. All of this pre-“social distancing.”

It was eventually announced that March public events would be canceled as well, including the official cancellation of the Ice Festival on Lake Khovsgol, the Winter Golden Eagle Festival, the camel festival in Umnugobi province and the Nauryz Festival nearer to the end of March. All of them major blows to the locals and the tourism dollars they rely on.

It was announced on February 19 that roads and other forms of transportation would be suspended or blocked over Tsagaan Sar (February 21-27) across six provinces to further enforce the need to self-isolate and not gather in large groups. A necessary action to keep the flow of movement limited over a holiday that holds significance in the country. Prior to the ban, traffic into Ulaanbaatar was monitored by stopping cars and requiring that all passengers have their foreheads scanned to detect an abnormal temperature. Something I myself experienced.

But not all public transportation was banned, within the capital the main bus lines were running, but were limited to running on “peak” hours. And even though in the U.S. the CDC advises that wearing a face mask isn’t necessary if you are not sick, they were mandatory while riding public transportation in Ulaanbaatar. Public officials and news broadcasters had even adopted to wearing masks through press conferences and news broadcasts.

A daily 11 a.m. press conference is still broadcast daily across local channels to update locals on any new developments that might develop each day. People are additionally handing out pamphlets in the street providing tips on how to stay healthy.

In a place where panic should have spread, grocery stores are still stocked with food (the exception being the day the case was announced, and price gauging happening mostly only on meat products – the availability and pricing since going back to normal). Toilet paper shortages never having been an issue.

Mongolia’s President Khaltmaagiin Battulga would be the first to visit China following the outbreak, meeting with Chinese President Xi Jinping and Premier Li Keqiang and presenting them with a gift of 30,000 sheep as a gesture of solidarity and support. Upon returning to Mongolia, the President voluntarily going into self-quarantine.

Around this same time period the U.S. Government listed Mongolia as a Travel Level 3 threat.

Flying out of Buyant Ukhaa (Chinggis Khaan International) Airport, masks were mandatory. There were no exceptions.

Leaving Mongolia, now almost two weeks ago (March 5), the seriousness of the quarantines and regulations didn’t completely phase me until I was told I couldn’t enter the airport because I wasn’t wearing a mask. I was not sick, but that didn’t matter. It was mandatory.

The additional security at the airport’s automatic doors, guarding the temperature takers in their hazmat suits, not budging on the issue until a mask was properly hooked around my ears, covering my mouth and nose.

Mask now donned and temperature taken and proven normal; I was free to leave the country. But, now having left, returning to Mongolia is no longer an option for the immediate future. And my future there – or really anywhere, at this point – is uncertain. The same for Mongolian citizens, who are being urged to stay in the countries abroad that they’re currently in.

On March 10 and 11, Mongolia suspended all inbound travel from outside countries until March 28, at the earliest. And, as of yesterday, March 15, my flight returning from Istanbul to Ulaanbaatar on April 4, a date after the current ban on incoming flights, has been canceled by Turkish Airlines. When asked when this route would resume, the Turkish Airlines customer service representative found the next available flight from Istanbul scheduled for May 2. I have little hope that this will be the case.

Travel on the Trans-Siberian Railway to China was suspended back in January thanks to the border closure, leaving passengers scrambling to make new travel arrangements from Ulaanbaatar. That suspension will continue through the March 28 suspension date as well.

On March 12, the U.S. Embassy in Mongolia announced voluntary evacuation flights (evacuation isn’t mandatory) to return to the U.S. As of this moment, the exact number, destination(s) and departure date(s) of these flights is not yet known, but what is known is that passengers will be responsible for the cost a ticket to board one of these specially arranged flights. That price, at this point, unknown.

The British Embassy offered the same to British nationals wishing to leave, with seat prices being announced at $432 for an economy seat on the March 15 Ulaanbaatar to Moscow flight, $540 for an economy seat on the March 15 Ulaanbaatar to Berlin flight and $426 for an economy seat on the March 16 Ulaanbaatar to Tokyo flight.

As of today, roads have been reopened, but citizens entering into Ulaanbaatar are being asked to fill out a questionnaire answering the question of their physical condition and possible risk.

A ban on the operations of monasteries, churches, bars and nightclubs, sauna, motels and a varying degree of sports and cultural entities such as yoga, dance clubs and tourism remain in effect until March 30. The restaurants that do remain open in the city are on a mandatory 10 p.m. closing schedule.

Public trading centers that have been closed since March 10, such as the local-favorite Black Market, are now reopened.

While the U.S. struggles to monitor and test individuals flying back into the country, with articles such as this one from the Washington Post shedding light on how things are being handled (or more appropriately, mishandled), the U.S. and other countries could certainly take note of how this nomadic nation has managed to protect its citizens quickly, and seemingly, effectively in a time when people are scared and looking to their government for answers.

For more information on the coronavirus situation in Mongolia, I’ve written about my personal experience on my website at breannjwilson.com.

Rio Tinto slows expansion of Oyu Tolgoi copper mine in Mongolia www.ft.com

Rio Tinto has slowed work on the underground expansion of its giant copper mine in Mongolia’s Gobi desert, raising the prospect of further delays at its most important project.

Mongolia approves standard for recyclable textile masks www.news.mn

The world faces shortages of single-use masks as the coronavirus pandemic hits over 169 countries. Mongolia produces single-use masks and other items domestically, however imports of the raw materials come mostly from China. Currently, stocks of the raw material is decreasing quickly whilst demand for masks is increasing dramatically. Therefore, the Mongolian Agency for Standardization and Metrology quickly established a working group for approving national standards for recyclable textile masks. On 13 March, the agency approved a new standard (‘MNS 6828: 2020’) for recyclable textile masks.

General government budget revenue decreased by 11.7 percent in February www.montsame.mn

Ulaanbaatar/MONTSAME/. In the first two months 2020, general government budget revenue amounted to MNT 1.5 trillion by preliminary results, MNT 1.4 trillion of which accounted for equilibrated revenue. For the general government budget revenue structure in the first two months of 2020, 93.5% was accumulated from equilibrated revenue.

Mongolian citizens abroad called on to stay in the countries www.montsame.mn

During a press briefing of the operative team of the State Emergency Commission, Chief of the National Emergency Management Agency, Major-General T.Badral notified that decision has been made not to receive foreign nationals in Mongolia. However, the decision will not belong to coal truck drivers from the Russian Federation.

Sales of industrial production decreased by 25.8 percent www.montsame.mn

Ulaanbaatar/MONTSAME/. According to the preliminary results, in the first two months of 2020, the gross industrial output reached MNT 2.2 trillion, showing a decrease of MNT 360.7 billion (14.2%) from the same period of the previous year. This decrease was mainly due to the decrease in the gross mining and quarrying output by MNT 439.2 billion (23.8%) while manufacturing output increased by MNT 36.7 billion (8.0%), electricity, thermal energy and water supply output by MNT 41.7 billion (18.3%), respectively.

In February 2020, the gross industrial output reached MNT 1.0 trillion, showing a decrease of MNT 99.6 billion (8.8%) from the previous month. This decrease was mainly due to the decline in the mining and quarrying output by MNT 85.7 billion (11.5%) and manufacturing production by MNT 9.7 billion (3.8%).

The gross industrial output was made up of the mining and quarrying sector (64.6%), the manufacturing industry (22.9%) and electricity, thermal energy and water supply sector (12.5%).

By preliminary results, in the first two months of 2020, the gross mining and quarrying output showed a decrease of MNT 439.2 billion (23.8%) from the same period of the previous year. It was mainly due to decreases in the mining of coal and lignite by MNT 325.7 billion (39.6%), extraction of crude petroleum by MNT 84.5 billion (55.4%) and mining of metal ores by MNT 28.9 billion (3.4%), respectively.

In February 2020, the gross mining and quarrying output reached MNT 658.6 billion, showing a decrease of MNT 85.7 billion (11.5%) from the previous month. It was mainly due to the decline in the extraction of crude petroleum by MNT 53.3 billion (87.8%) and the mining of metal ores by MNT 51.5 billion (11.8%).

In the first two months, 58.6% of the gross mining and quarrying output was produced in the mining of metal ores, 35.4% – the mining of coal and lignite, 4.8% – the extraction of crude petroleum, as well as 1.1% – in other mining and quarrying.

According to the preliminary results of the first two months of 2020, the extraction of fluorspar and gold has increased by 6.5-71.7%, compared to the same period of the previous year. In the manufacturing sector, production of concentrated coal, milk, wheat flour, lime, productions of pure water, soft drink, juice, and coal briquette increased by seven times from 8.4%.

In the mining and quarrying sector, the extraction of iron ore, brown coal, copper concentrate, hard coal and crude oil showed a decrease of 1.8- 61.8%. In the manufacturing sector, productions of metal foundries, cashmere products, alcoholic beverages, combed cashmere, copper cathode, metal steel, and meat have decreased by 6.4-54%, compared to the same period of the previous year.

In the first two months of 2020, the sales of industrial production reached MNT 2.1 trillion, decreased by MNT 733.1 billion (25.8%) from the same period of the previous year. This decrease was mainly due to the decrease of MNT 825.7 billion (41.8%) in the sales of mining and quarrying, while the sales of manufacturing sector increased by MNT 50.1 billion (7.9%) and sales of electricity, thermal energy and water supply by MNT 42.5 billion (18.5%), respectively.

For the total sales of industrial production, MNT 1.2 trillion (55.6%) were from the export, of which the export of mining and quarrying was MNT 936.3 billion (80.1%), and the export of manufacturing was MNT 233.1 billion (19.9%).