A tussle between Mongolia’s authorities and some 60,000 “ninja miners” for control over the country’s gold industry captures in microcosm the broader battles that Ulaanbaatar is waging to shore up its slumping tugrik currency and central bank reserves.
The ninja miners – so named for the green bowls they carry on their backs that resemble the shells of cartoon characters from the 1990s “Teenage Mutant Ninja Turtles” movie – have been wreaking havoc with the nation’s gold production, thus reducing the amount of gold the central bank can buy to bolster its reserves. Continue reading »
Resouce-rich Mongolia is going back to the international bond market in a push to offset a weakening economic cycle.
Government-backed Development Bank of Mongolia (DBM) has placed a ¥30bn ($290m), 10-year samurai bond to invest in much needed infrastructure projects. But the deal is stretching the country’s borrowing rules to the limit. Continue reading »
The vast deposits of copper, coal, gold and silver under Mongolian soil could soon be governed by a radically different regulatory framework — if a new draft of the country’s Minerals Law is passed in its current form.
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After a few nervous months, Mongolia has secured a power supply agreement with China for the huge Oyu Tolgoi copper and gold mine. Rio Tinto, the Australian miner developing the $6bn project, confirmed on Monday that it had a binding electricity supply deal.
With that in place, the mine is all set to start commissioning in the next few weeks and begin commercial production next summer. Continue reading »
What do you do if you’re a small country, rich in minerals that went from boom to bust when the bottom fell out of the commodities market? Copy Chile, is the answer.
Chile’s experience as a small, copper-dependent economy that prudently stashed cash during the boom years, allowing it to ride out the 2008-09 world economic crash and uncork anti-cyclical spending, was the perfect case study for Mongolia. Continue reading »