President Kh.Battulga: Mongolia is ready to join the High Ambition Coalition for Nature www.montsame.mn

Ulaanbaatar /MONTSAME/. President Kh.Battulga participated in the discussion under the theme, ‘Alliance of Governments for Nature and People’, co-organized by the National Geographic Society, the Wyss Foundation, and the Governments of the Republic of Costa Rica, and the French Republic.

In his remarks, the President said, “Mongolians have the great tradition of care and protection of mother nature, and respect towards the mountains and rivers, striving to live in harmony with nature as we have had a unique nomadic civilization closely related with animal husbandry. The concept of the special protection of areas, and its importance has also been passed down to us through many centuries.

The decision to have the Bogd Khan Mountain that is located in the northern part of Ulaanbaatar city was made by the Khaan of the Great Yuan Dynasty of Mongolia many centuries back in 1294. At the Nature and Development summit organized in Rio de Janeiro in 1992, Mongolia also officially declared to present a gift to mother earth by having 30 percent of our total territory under special protection, and transform the areas into biosphere reserves by conserving its untouched pristine nature.

As Mongolia is a land-locked country that is susceptible to climate change, one of the important methods to protect our environment, and pass it on to future generations is considered to be the increase of areas under special protection. Thus, the Government and citizens are working in cooperation towards this goal.

Certain measures have been taken in the framework of the implementation of the United Nations Framework Convention on Climate Change as well as fulfilling the duties and promises that have been made with international organizations. To highlight, Mongolia has become one of the first countries to renew its Nationally Determined Contribution for the Paris Agreement by setting the reduction of greenhouse gases by 2030 from 14 percent to 22.7 percent. The goal to increase the specially protected areas by 30 percent in 2030 has also been reflected in the National Biodiversity Programme, and duties within the Sustainable Development Goals, creating a more favorable legal environment.

As of currently, the State Special Protected Area cover 20 percent of the total territory, and it nearly reaches 30 percent if locally protected areas are also taken into account.

In the 2019 study conducted by the World Wildlife Fund (WWF) involving over 170 countries on calculating the contributions of specially protected areas in mitigating the negative impacts of climate change, Mongolia led the ranking with the highest score, which can be considered as the realized result of the work being done on the matter. Thus, Mongolia hereby expresses the readiness to join the High Ambition Coalition for Nature and People, supporting the initiative to have the State Specially Protected Areas reach 30 percent of the territory by 2030. We only have one earth, one nature, and one environment.”

Fake fuel hits Mongolian driver’s pockets www.news.mn

Delegates from the Mongolian Trade Union and Mongolian Petroleum Consumer’s Association held a press conference in 22 January on the imports of fake fuel. According to a survey, Mongolian consumers are suffering a loss of MNT 50-60 billion every year from using fake fuel that is blamed on damaging car engines. For example, expensive cars such as the Land cruiser-200 and Lexus-570 have been damaged after using fake fuel when travelling across the rugged Mongolian countryside; the repair cost comes to MNT 20-25 million per year. The survey has been conducted with the help of two auto repair companies.

Coronavirus: Wuhan to shut public transport over outbreak www.bbc.com

Wuhan, a Chinese city of eleven million people, is to temporarily shut public transport as it tries to halt the outbreak of a new strain of virus.

Those living in the city have been advised not to leave, in a week when millions of Chinese are travelling for the upcoming Lunar New Year holiday.

The respiratory illness has spread to other parts of China, with some cases in other countries including the US.

There are more than 500 confirmed cases and 17 people have died.

Known for now as 2019-nCoV, the virus is understood to be a new strain of coronavirus not previously identified in humans. The Sars (severe acute respiratory syndrome) virus that killed nearly 800 people globally in the early 2000s was also a coronavirus, as is the common cold.

All the fatalities so far have been in Hubei, the province around Wuhan.

Meanwhile, after a day of discussions in Geneva, the World Health Organization's (WHO) emergency committee has announced it will not yet declare a "global emergency" over the new virus.

Director general Dr Tedros Ghebreyesus said more information was needed about the spread of the infection. The committee of health experts will meet again on Thursday.

A global emergency is the highest level of alarm the WHO can sound and has previously been used in response to swine flu, Zika virus and Ebola.

What measures have been announced?
Chinese officials said that from Thursday, all flights and passenger train services out of Wuhan would be stopped.

Bus, subway and ferry services would also shut down from 1000 local time.

A special command centre in Wuhan set up to contain the virus said the move was meant to "resolutely contain the momentum of the epidemic spreading".

Those living in Wuhan had already been told to avoid crowds and minimise public gatherings.

State news agency Xinhua said tourist attractions and hotels in the city had been told to suspend large-scale activities while libraries, museums and theatres were cancelling exhibitions and performances.

A Lunar New Year prayer-giving ceremony at the city's Guiyuan Temple, which attracted 700,000 people last year, has also been cancelled.

The hashtag "Wuhan is sealed off" was trending on Chinese social media website Weibo.

The WHO's Dr Ghebreyesus described the latest measures as "very strong" and said they would "not only control the outbreak, they will minimise spread internationally".

Chinese officials said the country was now at the "most critical stage" of prevention and control.

"Basically, do not go to Wuhan. And those in Wuhan please do not leave the city," said National Health Commission vice-minister Li Bin in one of the first public briefings since the beginning of the outbreak.

Like shutting down London before Christmas
By James Gallagher, BBC health and science correspondent

Wuhan is starting to look like a city in quarantine.

Officials had already warned residents not to leave the city and visitors not to come.

Now the reported public transport ban - which includes flights - slams many of the routes in and out of the city shut.

It is a significant attempt to stop the spread of this new virus, which we now know can spread from person to person.

Limiting transport will cut the chance of the virus reaching other cities in China and other countries around the world.

This all comes just as millions of people are travelling across China for the week-long holiday that is Lunar New Year.

If you're struggling for context - imagine shutting down London in the week before Christmas.

The big question left is the roads - and whether any of Wuhan's 11 million inhabitants will be able to simply drive away.

What's the picture globally?
Officials in Hong Kong reported the territory's first two cases on Wednesday and one case was reported in the nearby city of Macau.

The patient in Macau is said to be a businesswoman who arrived from Wuhan over the weekend.

The first US case was confirmed on Tuesday. President Donald Trump said the situation was "totally under control" and that he trusted the information being provided by Chinese authorities.

There have been three cases in Thailand, one in Korea, one in Japan and one in Taiwan.

Although only about 500 cases have been confirmed, calculations by scientists at the MRC Centre for Global Infectious Disease Analysis at Imperial College London suggest there are 4,000 people sick with the virus in Wuhan.
Our estimate at 4,000 cases is more than double the past estimate due to increase of number of cases outside China. This should not be interpreted as implying the outbreak has doubled in size.

The virus originated in a seafood market in Wuhan that "conducted illegal transactions of wild animals", authorities said. The market has since been shut down.

There is also evidence of human to human transmission with the new virus spreading to family members and healthcare workers.

But understanding how easily and how often the virus spread between people is one of the major outstanding questions in this outbreak.

The virus infects the lungs and symptoms start with a fever and cough. It can progress to shortness of breath and breathing difficulties.

President meets Gucci CEO Marco Bizzarri www.montsame.mn

Mongolia, ADB sign grant to develop participatory food waste recycling www.montsame.mn

Ulaanbaatar /MONTSAME/. The Asian Development Bank (ADB) and the Government of Mongolia have signed a $3 million grant agreement to improve food waste recycling in local communities in the capital city, helping to keep Ulaanbaatar cleaner, reports ADB Resident Mission in Mongolia.

Credit rating agency to be established www.montsame.mn

Ulaanbaatar /MONTSAME/. The Financial Regulatory Commission (FRC) is working in partnership with the Japan International Cooperation Agency (JICA) on diversifying financial instruments to develop the capital market of Mongolia.

Tourism revenue increases by 10.2 percent www.montsame.mn

Ulaanbaatar /MONTSAME/. Mongolia received a total of 529.360 tourists in 2018 and it increased by 9 percent or 47.902 in 2019, according to Ulaanbaatar City Tourism Department.

Mining sector equals one-quarter of GDP www.zgm.mn

According to the preliminary results of 2019, the mining sector accounts for 25 percent of Mongolia’s GDP, 72 percent of industrial production and 90 percent of exports. The statistics were presented during the monthly press conference of the Ministry of Mining and Heavy Industry, Transparent and Responsible Mining. The report reveals that the mineral industry constitutes 24.5 percent of the total budget revenue in 2019. During the period, the budget revenue totaled around MNT 11.9 trillion, with an increase of MNT 1.9 trillion or 18.6 percent from a prior year. Of these, revenue from the mineral sector reached MNT 2.9 trillion, which is increased by MNT 590.7 billion or 25.4 percent compared to the same period of last year. In 2019, 50.83 million tons of coal, 1.26 million tons of copper concentrate, 16.25 tons of gold, 5,300 tons of molybdenum concentrate, 156,150 tons of fluorite ore, 47,490 tons of fluorspar concentrate, 8.57 million tons of iron ore, 3.39 million tons of iron ore concentrate and 83,090 tons of zinc concentrate were produced in the mining and extractive industry of Mongolia. The report also found that the total production of the mining and extractive sectors amounted to MNT 12.47 trillion, increasing by MNT 1.24 trillion or 11.1 percent since 2018. Coal exploration grew markedly, reaching MNT 1.15 trillion last year. The mining industry makes up 71.8 percent of the total output of industrial production.

Five copper price trends to watch in 2020 www.mining.com

As we look to 2020, copper is faced with a finely balanced market. For now, positive investor sentiment around copper’s fundamentals is supporting higher prices, Metals and mining research and consultancy group Wood Mackenzie said in a research note Wednesday.

Stronger demand growth is underpinned by new semis capacity, while mine supply growth will be reliant on additions from both projects and existing mines.

Meanwhile, the recent approval of new copper scrap re-categorisation standards in China could yet determine the mix of copper raw material imports into the country and influence global scrap dynamics, said Wood Mackenzie.

These fundamental factors, in addition to the strong geopolitical headwinds across the global landscape, will no doubt lead to another year of volatile prices. In the absence of a major economic downturn, copper’s supportive fundamentals should keep price risk skewed to the upside, said the firm.

Eleni Joannides, Wood Mackenzie Principal Analyst, sees five key themes to watch in the global copper market in 2020.

Copper prices – fundamentals vs sentiment
Policies and politics that will drive copper demand
The global scrap dynamics will shift – response to changes in Chinese scrap policies on imports
Lower TC/RCs could push some smelters below breakeven
Mine supply looks set to return to growth
“During 2019, copper prices were largely determined by US-China trade-related news rather than copper’s own fundamentals. It was not until the US-China Phase 1 trade deal was agreed in December that there was a shift in sentiment,” Joannides said.

“As we look to 2020, the risk is that wider factors will once again influence price. The geopolitical issues that have surfaced since the start of the year could derail the rally that emerged in December 2019. On the other hand, further progress in resolving trade disputes will likely encourage a faster than anticipated recovery in demand and underpin prices,” Joannides added.

“This year, we are forecasting that positive mine supply growth of 1.3% — after disruptions — will be offset by a recovery in demand. The resulting draw down in total cathode stocks by year-end should be positive for prices.”

Wood Mackenzie said differing incentive approaches to renewable technologies will lead to varied impacts on copper demand in 2020.

“Contributions to copper demand from electromobility and renewable energy will be a long-term story. However, in 2020, electric vehicles (EVs), wind and solar projects will see a range of incentives accelerate, stop and reverse. In some cases, this will be a drag on the development of projects. In other cases, however, a possible front-loading of projects ahead of further subsidy removal could emerge.

“The Chinese government recently announced that it has no plans to further reduce the subsidy on EVs in 2020. We believe the decision to keep the subsidy will help to support EV sales, production and related copper demand in 2020.

“This change in approach to EVs in China is in line with developments in other regions. In Europe, the likes of Germany and Norway continue to ramp up EV-related incentives, supporting copper consumption in the region. In consultation with German automakers, the so-called “Environmental Bonus” incentive has been raised to a maximum of €6,000 for battery EVs priced up to €40,000. In the US, some States have extended subsidy offerings, while others are introducing similar incentive programs.

“In the renewable markets, the Chinese government plans to end the subsidy on newly approved onshore and offshore wind projects in 2021 and 2022, respectively. In the US, tax incentives for new solar power installations have started to wind down this year and the subsidy on wind power generation will also begin to decrease next year. As a result, we believe that demand for copper will be brought forward in both China and the US in 2020, as developers rush to install new capacity ahead of these changes,” said Joannides.

A shift in global scrap dynamics could occur in response to changes in Chinese scrap policies, Wood Mackenzie warns.

“The Chinese government recently approved new standards, beginning in July 2020, that will re-categorise some copper scrap as “renewable copper material,” Joannides said.

“The new threshold for copper content of imported copper scrap has been set at 97% and 56% for brass scrap. This threshold is noticeably above the average copper content for copper and brass scrap imported in 2019. Nevertheless, the copper industry in China has shown optimism towards scrap imports this year.

“Given that most of the examination will be done by visual inspection at ports, it is widely believed that implementation of the new standards will leave some room for scrap slightly below the threshold to be imported. However, the risk is that if Chinese Customs implement the new standards strictly, according to the guidelines, scrap processors will need to make additional efforts to meet the requirements. This means that China will be not be able to source as much scrap from the external market this year.

“In addition to the changes in scrap-related policies in China, rising costs to upgrade scrap ahead of export to China will likely incentivise more secondary consumption capability to be built in scrap generating and/or processing countries. We have already seen early examples of this around the world. It remains to be seen if this will be the start of a trend, which would not only have implications for scrap volumes available for China but also the requirement for concentrate, blister/anode and copper cathode,” said Joannides.

Partly driven by new project delivery, mine supply is expected to return to growth. Wood Mackenzie’s base case is for mine supply to reach 21Mt in 2020 – after applying a 5% disruption allowance. Notably, approximately 40% of the additional production capability will be a result of a net increase in output at operating mines.

“Projects that started in 2019 will support higher production as they ramp-up to full capability in the year ahead. Similarly, the increase of brownfield expansions and extensions will contribute a significant amount of supply growth. New projects that are scheduled to start during 2020 will also play their part,” added Joannides.

“Glencore’s Mutanda mine in the DR Congo will be the largest planned decline in production in 2020. This accounts for 100 kt less mined copper supply year-on year.”

As with previous years, Wood Mackenzie expects a considerable amount of copper supply to be lost from unexpected disruptions. In addition to unforeseen operational and weather-related issues, social and political factors are central to supply risk.

“Approximately 40% of total disruptions recorded for 2019 were located at mines in the African Copperbelt. The environment in both cases appears more stable now, however. The initial upheaval brought about by tax and mining code changes in Zambia and DR Congo, respectively, has subsided as the mining industry comes to terms with changes to the operating environment.

“The more immediate issue facing Zambia now is power supply, with water levels in the country’s hydro-electric dams critically low,” said Joannides.

Lower treatment charges (TC) and refining charges (RC) could push some copper smelters below breakeven, according to Wood Mackenzie.

“A tight concentrate market in 2019 forced TC/RCs to their lowest level in six years. The 2020 benchmark was set at $62/t & 6.2c/lb – a 23% decrease on the 2019 benchmark and the fifth year of falling treatment charges.

“Our latest concentrate balance implies a deficit for 2020, with the addition of primary smelter capability outpacing growth in mine supply.

Joannides said with a lower annual TC/RC benchmark and very weak acid prices, some smelters in China are precariously close to breakeven. Therefore, smelter economics will have a bearing on the amount of available capacity in 2020.

“Outside China, aside from a continuing strike at Asarco’s Hayden smelter in the US, smelter stoppages are limited to planned maintenance so far. Smelting capacity in Chile is reaching full capability following t

Mongolia's capital launches cleanup campaign ahead of Lunar New Year www.xinhuanet.com

Mongolia's capital Ulan Bator has launched a campaign to clean up the environment ahead of the traditional "White Moon" festival or the Lunar New Year, the press office of the municipal government said Wednesday.