Financing agreement signed for World Bank Livestock Commercialization Project www.montsame.mn

Ulaanbaatar /MONTSAME/. On February 7, the Ministry of Finance of Mongolia and the World Bank signed Financing agreement for the Livestock Commercialization Project.

The project, funded with $30 million loan financing from the World Bank, will be implemented in 150 soums of 14 aimags and Ulaanbaatar city. It aims to improve the health and productivity of livestock and increase value of products, such as meat and dairy by commercializing targeted value chains in selected locations.

The signing ceremony was attended by Minister of Food, Agriculture, Light Industry Ch.Ulaan and other relevant officials as the 5-year project will be implemented by the Ministry of Food, Agriculture, and Light Industry of Mongolia.

The project will help improve the health and productivity of livestock and increase value of products such as meat and dairy by commercializing targeted value chains in selected locations.

With more than 60 million livestock and wide pastureland, the Mongolian agriculture and livestock sectors have huge potential to drive economic diversification and as a key source of broad-based employment.

However, major challenges such as low productivity, animal health issues, and vulnerability to climate change and extreme weather events, limit the sector’s potential. About 56 percent of Mongolia’s herders own 200 head or fewer of livestock and are trapped in a low-input, low-output, low-productivity cycle.

Animal disease, coupled with poor food hygiene and inadequate nutrition, limit the output and quality of meat and dairy products. As a result, Mongolian meat exports have stagnated at less than 10 percent of their potential despite the country’s proximity to the region’s largest markets for meat imports.

The new project aims to improve the quality of and access to veterinary services nationally and help establish trans boundary animal disease free zones. The project will help improve performance of the Mongolian Veterinary Services Authority to effectively control animal diseases, promote responsible use of antimicrobials, provide veterinary public health services, and improve food safety in line with international standards, according to World Bank Mongolia.

In addition, the project will improve livestock productivity and increase the volume of livestock products that meet market requirements by promoting partnerships between producers and processors. Collaborative research with academic and research institutions, as well as investments to improve animal breeding and nutrition services, will also contribute to this goal. Moreover, the project will provide immediate response in the event of an eligible crisis or emergency.

In particular, the project is deemed to eliminate livestock diseases cases by 25 percent at minimum, increase animal meat and milk outputs by 15 percent, involving 20 thousand herders directly and improving the value of livestock meat products by 20 percent.

As a result of the project, competitiveness of the livestock industry and exports market to be expanded with improved benefits of livestock animals and improved livelihoods for herders.

“Livestock and Agricultural Marketing Project” with grant aid of USD 11 million from the World Bank was implemented throughout 15 soums of 5 aimags of Mongolia between 2013 and 2017, reports the Ministry of Finance.

The project, aimed at establishing connection between herders with markets and consumers, improving livestock animal breeding and developing livestock industry value chain, covered 140 thousand herders to result in 78-percent growth in their incomes from livestock products.

Mongolia suspends coal exports to China on coronavirus fears www.reuters.com

ULAANBAATAR (Reuters) - Mongolia will suspend deliveries of coal across its southern border into China until March 2 to prevent the spread of the coronavirus, the country’s National Emergency Commission said on Monday.

Mongolian fined for spreading fake news about coronavirus spread in Mongolia www.akipress.com

Mongolian was fined 2 million tugriks for spreading fake news on coronavirus infection in Mongolia.

Russia, China to assess prospects of laying gas pipeline via Mongolia www.tass.com

MOSCOW, February 10. /TASS/. Russia and China continue negotiations on the ‘western route’ of gas supplies to China (Power of Siberia 2) contemplating deliveries of 30 bln cubic meters of gas per year and the parties are assessing prospects of laying the pipeline across Mongolia, Russian Energy Minister Alexander Novak said in his article in the Energy Policy magazine.

Export decreases by more than 20 percent in January www.zgm.mn

In January, exports totaled USD 459 million, decreasing by 24.4 percent compared to the same period of the previous year. According to the Customs General Authority (CGA), imports surpassed exports for the first time since September 2014 with a loss of USD 14.3 million. The sharp decline in crude oil sales was one of the key drivers. Copper and ore concentrate sales declined by nearly 30 percent. Excluding raw coal, most of Mongolia’s exports have declined. However, export revenue was up 20 percent year­-on-­year. Despite the restriction on movement in line with the new types of coronaviruses, mineral exports from major ports are continuing to operate normally, the CGA said.

Oyu Tolgoi in-country spend passes US$10 billion www.montsame.mn

Ulaanbaatar /MONTSAME/. Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, today announced that the company has reached US$10 billion in total in-country spend since 2010, marking the largest foreign investment made in the country.

Mongolia setting up its research station in Antarctica www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister of Environment and Tourism N.Tserenbat met with Director of the Antarctic Research Center of the Mongolian University of Science and Technology, Antarctic researcher L.Dugerjav at his request.

King Tug suffers first defeat of professional career www.news.mn

Mongolia’s King Tug (N.Tugstsogt) suffered the first loss of his professional career when WBC featherweight champion Gary Russell Jr. defended his title on Sunday at PPL Center Center in Allentown, Pennsylvania.

Foreign Ministry releases measures to be enforced in response to novel coronavirus www.montsame.mn

Ulaanbaatar /MONTSAME/. On February 7, the Ministry of Foreign Affairs of Mongolia issued a press release on measures to be enforced in response to the novel coronavirus 2019-nCoV outbreak.

Mine delays in China are buttressing beleaguered coal bulls www.bloomberg.com

Disruptions to coal mining in China because of the coronavirus are giving the coal market a rare cause for bullishness.

For the past five months, Asian seaborne prices have been hovering near a three-year low on rising supply and soggy demand. But now, as the deadly epidemic hinders Chinese mines from restarting after the Lunar New Year holiday, the world’s biggest consumer is looking to import more and that’s giving prices a boost, according to traders and miners.

The global commodity market has been thrown into disarray by the virus as Beijing keeps swathes of the country under lockdown, disrupting raw material supply chains and subduing demand. The fallout has hammered global prices of everything from oil to copper, but coal joins a handful of commodities such as fertilizer that are getting a boost.

The rise in Asian seaborne prices is mainly driven by delays in Chinese mines returning after the holiday, said New Hope Corp. Managing Director Shane Stephan. Lower shipping rates also help to make “Australian coal more competitive on a landed cost basis into China.”

The most-active Newcastle coal futures have climbed about 9% this week to $72.20 a tonne Thursday. Chinese prices on the Zhengzhou Commodity Exchange rose 3.6%, capping the biggest weekly gain in almost a year.

The price arbitrage for seaborne and Chinese coal has widened, implying a window is open for China to boost imports, according to Marex Spectron analyst Hui Heng Tan.

Output cuts
Mine suspensions will probably cut China’s coal production by 145 million tonnes, said Dennis Ip, an analyst at Daiwa Capital Markets Hong Kong Ltd. While that’s about 4% of the country’s total output last year, it’s equivalent to almost half of its imports and could have a significant impact on the seaborne market.

Still, the strength and sustainability of higher imports are in doubt. The extended shutdowns have disrupted land, sea and air transport. So not only will exporters find it a challenge to get vessels into China, they may have difficulties unloading cargoes and moving them to end-users.

A Chinese buyer of liquefied natural gas and a copper importer have already declared force majeure, a contractual term meaning they’re unable to take delivery of cargoes, as the impact of the virus on logistics and manpower constrains their ability to receive shipments.

Ample stockpiles
Lofty coal stockpiles at some power plants may also curb additional purchases, according to traders. Inventories at six major utilities are sufficient for 44 days of use as of Friday compared with 33 days before the holiday, data from China Coal Transport & Distribution Association show.

At the same time, China is seeking to expedite the resumption in domestic production. The National Energy Administration said in a notice that authorities should improve transportation networks and connectivity to production hubs, while the raising of domestic coal prices beyond certain levels is prohibited.

For now, there is higher demand for small shipments from Indonesia, which takes a shorter time of about two weeks to deliver into China, according to one of the traders. The Indonesian Coal Mining Association said there’s an opportunity to boost exports, though China’s demand will depend on port conditions.