China Direct

Mongolia - Challenges and Prospects for 2023

Foreword
This paper will give an overview of the key challenges and prospects that Mongolia faces in 2023. It aims to cover recent events in the country’s economic, political, and geopolitical spheres, thereby introducing Mongolia to a wider audience interested in learning more about the country and its place in regional and international affairs. It should be of particular interest to businesspeople, and policy makers in government and non-government organisations.

This paper focuses on ways in which Mongolia can work with the outside world on economic, geopolitical and environmental issues. Getting a better understanding of Mongolia’s current prospects is timely. The global situation is becoming more complex as the world emerges from the COVID19 pandemic. Many things have changed. In particular, economic growth has slowed across the world.

In the US, Europe and China, which account for over half of global GDP, there are a constellation of issues from inflation, energy supply, low or negative growth, and loss of consumer and investment confidence. The Russian invasion of Ukraine in early 2022 provided a further source of anxiety. 2023 will be a crucial year, showing whether the impact of these various factors will prove to be shorter term, or reach into a longer timeframe.

We will look at the situation of Mongolia in this global context. In particular, highlighting its economic and international links, and the current challenges it faces with regards to energy and the global energy market. The paper will assess the impact of the COVID19 pandemic, and what kind of role combatting climate change environmental issues will play for the country. The paper will then focus on geopolitical issues – Mongolia’s relations with Russia, China, US, and other
security matters and seek to provide a holistic framework by which to understand its potential impact on the country’s international position, and also its future opportunities.

Finally, it will look at prospects and seek to plot out where the country is heading, what sort of relations it will need, and what international status does it seek.

To access the full paper please click here.

Our sincere thanks to Kings College London and the authors Dr. Kerry Brown and Elizabeth Fox for kindly sharing the report.

Rio Tinto in partnership with China and Mongolia

CBI member, Rio Tinto has announced that it will continue to work with its three Chinese partners and the Government of Mongolia in cooperation over the Mongolian Oyu Tolgoi copper & gold mine.

The Oyu Tolgoi mine, which is situated on Mongolia’s southern border with China, is a core part of Rio Tinto’s efforts to shift its portfolio from iron ore. Rio Tinto owns a 33.5% in-direct stake in the mine, sharing equity with the Government of Mongolia.

Rio Tinto has been the manager of the Oyu Tolgoi mine since 2010, and expects it to be fully operational by 2020. The mine contains reserves that make it one of the world’s largest known copper and gold deposits. Rio Tinto expects that with the reserves currently identified, Oyu Tolgoi will remain operational for over 50 years.

In July 2018, Rio Tinto brought three of its Chinese partners onto the project (China Machinery Engineering Corporation, Harbin Electric International Company Ltd. and Power Construction Corporation of China), by signing an agreement relating to the design and delivery of a power station to independently supply electricity to the Oyu Tolgoi mine. The profitability of the mine was under question, since the Mongolian Government currently pays China $150 million a year for electricity.

Last week, Rio Tinto announced that it has extended its agreement with the Government of Mongolia to supply Oyu Tolgoi with independent electricity, and will also supply electricity to an extension of the copper mine at the site.

Analysts have welcomed these deals in the knowledge that Rio Tinto is literally sitting on a gold mine. Furthermore, Oyu Tolgoi is already demonstrating its potential. Despite not yet being fully operational, extractions have been taking place there since 2001. By December 2015, total shipments had reached 1.5 million tonnes of concentrate, the majority of which was transported to China. The Oyu Tolgoi mine has the capacity to process both copper and gold ore on site.

According to Rio Tinto Copper & Diamonds chief executive, Arnaud Soirat, “The power agreement is a positive step forward for Oyu Tolgoi and outlines a path to secure reliable, long-term power for the operation […] which will help ensure that the operation reaches its full potential to the benefit of all shareholders.”

Please read more about Rio Tinto’s operations at Oyu Tolgoi here.

Rio Tinto strengthening Mongolia presence

 

CBI member Rio Tinto is further strengthening its presence in Mongolia, underscoring its commitment to the country. Rio Tinto will establish a new office in Ulaanbaatar and expand its national employee numbers to around 80 through the course of 2018.

The new Rio Tinto office will support the company’s exploration programme and technology centre and have a sharp focus on growing relationships with all partners in Mongolia. Munkhtushig Dul has been appointed as Rio Tinto’s country director and will lead the new Rio Tinto office. Munkhtushig will work in coordination with the Oyu Tolgoi LLC team, led by managing director Armando Torres.

Please read more here.

 

Please read more here.

Mongolia Industry Forum - October 2015 - STOP PRESS

 

Dear CBI members and partners,

Please find details below of a Mongolia Industry Forum that China Direct is circulating on behalf of the Mongolian Embassy in London.

Our apologies for the last minute nature of the invitation.

http://www.industry-forum.gov.mn/

Contact Person: Ms. Bolor,

Foreign Relations Officer of the Ministry of Industry of Mongolia

Government Building 2

United Nations Street 5/1

Ulaanbaatar 15160

Phone: 976-51-261540

Mobile: 976-99660661

Fax:   976-51-263333

e-mail: [email protected]

http://www.industry-forum.gov.mn/

Kind regards,

CHINA DIRECT

British Trade Fair in Mongolia - Sept 18th 2015 - Date For Your Diary

 

Dear CBI members and partners,

Kindly find attached details of a British Trade Fair to be held in Ulaan Baatar, Mongolia on Sept 18th. 

Please refer to the cover message from the British Embassy's DHM, Mr. Peter Wickenden and a short Mongolia Summary, prepared by the China Direct team, for further information.

Download Ulaanbaatar British Fair 18 Sept

Download Mongolia Direct - July 2015 Summary

https://www.gov.uk/government/world-location-news/british-fair-mongolia

Thank you.