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Good Morning Inside Mongolia’s readers! Did you know that the Gobi Desert, the second-largest desert in Asia, is a hidden gem in Mongolia? Covering approximately 30% of the country's land area, the Gobi offers a breathtaking landscape of sand dunes, rocky terrain, and ancient fossils. Click here to explore the wonders of the Gobi Desert in Mongolia. 

Today’s newsletter in 3 sentences…

• 🇲🇳 2025 GDP expectations

• ⛏️ The Future Of Lithium Projects

• 🛤️ The Strategic Importance Of Mongolia's 5 Dry Ports

Let’s dive deeper 🔥

MARKET

GOV: Mongolia's GDP Per Capita Expects To Reach $6,800 In 2025.

S&P: S&P Global Raises Mongolia’s Credit Rating From “B” To “B+”.

EBRD: European Bank For Reconstruction and Development (EBRD) President Renaud-Basso Arrives In Mongolia.

☀️ Mongolia's Lithium Future

With its rich mineral resources, Mongolia is poised to become a major player in the global lithium market, a vital component in electric vehicle batteries and renewable energy storage. 

• ^☝🏻 The numbers are staggering: Mongolia is estimated to possess 656,000 tons of lithium reserves, and 8 exploration licenses have been granted to foreign and domestic companies. Let’s catch up on the current status of lithium exploration projects in Mongolia.

💥 Major Projects

One of the frontrunners in this emerging sector is Ion Energy (ION), which holds one of the largest exploration licenses in Mongolia. Since 2021, Ion Energy has been conducting lithium exploration in 2  areas, Dornogovi and Sukhbaatar provinces, covering a combined area of 100,000 hectares. Last year, the Urgakh Naran Brine Project reported a remarkable lithium brine sample with a concentration of 918 mg/l, marking it as the highest-grade lithium brine discovered in Mongolia to date.

In a strategic move to expand its presence in Mongolia, Sinomine Resources Group, a prominent Chinese company, acquires the Tsagan Chuluut project from the local firm Lithium Century for US$20 million. While comprehensive data is still lacking, Sinomine indicates to Mongolian media that the project could potentially hold reserves estimated at 1.7 million tons of lithium.

Meanwhile, the Khukh Tag graphite project, developed by Asian Battery Minerals, is advancing toward a final investment decision within the next 24 months. Khukh Tag is recognized as Mongolia's most advanced graphite project and is the only significant project of its kind in the country. It boasts a total mineral resource of 12.2 million tons at an impressive 12.3% grade. The company’s Managing Director states that 2024 will be pivotal for Khukh Tag, with plans for high-impact drilling and infill drilling aimed at evaluating the material's suitability for battery anodes by the second half of the year.

🤩 The Importance of Lithium

Lithium, a silvery-white metal and the lightest of all metals plays a crucial role in rechargeable batteries that power devices ranging from Tesla's (TSLA) electric vehicles to Apple’s (AAPL) mobile phones. As demand is projected to increase by 28% in 2023, largely due to the electric vehicle sector anticipating sales of 26 million units by 2030, the urgency for sustainable energy solutions enhances the significance of lithium resources.

In conclusion, lithium is positioned at the forefront of key minerals for Mongolia. However, the path ahead depends on various factors, including the strategic management of these resources and the country's regulatory environment. Once exploration efforts conclude and lithium reserves are fully quantified, the clarity of regulatory policies and their friendliness toward both Mongolia and foreign investors will significantly influence the future development of the mining industry.

🧪 24/7 Border Boost: Mongolia's Trade Thrives

The test for 24-hour operations at Zamiin-Uud Ereen Port, the main logistics hub between China and Mongolia, concludes last week. Since implementing 24-hour operations, the port experiences significant growth in both trade and tourism over the past 5 months.

🎯 Right Time, Right Policy

Zamiin-Uud Ereen Port, the largest dry port in China and Mongolia, operates 24 hours a day since April 1. This decision was timely, as high demand for cashmere, bags, shoes, and camel wool leads to a surge in e-commerce orders and passenger traffic through the port. As of September 5, 1.75 million passengers pass through the Ereen road and railway port, marking a 95% increase from the same period last year. In conjunction, 442,000 vehicles enters the market, representing nearly a doubling compared to 2023.

🔍 Was The Test Successful?

The success of the 24-hour operation of Zamiin-Uud Ereen Port raises important questions about how to address the challenges faced by other major border crossings in Mongolia, such as Gashuun Sukhait, Zamiin-Uud, and Shivee Khuren, which handle almost 80% of the country's total exports. These ports often experience increases cargo traffic during peak seasons and holidays, leading to slower turnover rates and potentially impacting product pricing.

• 🔢 By Digits: In the first 9 months, Mongolia's exports to China increases by 5.4% to $9.7 billion, while imports surges by 30% to $3 billion. The 24-hour operation of Zamiin-Uud Ereen Port has positively influenced trade dynamics with China. 

Finally, China represents 92% of Mongolia's total exports, with coal accounting for 57.7% of key export products. Foreign trade is crucial in attracting foreign currency, highlighting how the continuous operation of key trade and logistics ports significantly impacts cargo turnover and the prices of imported goods. Alongside the trade, the continuous availability of the border crossing makes it more convenient for travelers, leading to a surge in passenger traffic and contributing to the local economy. This demonstrates the potential for 24-hour operations to drive both economic growth and tourism development in Mongolia. 

⭐ Selected for you

ECONOMY & BUSINESS

• IMF Deputy Managing Director Issues Statement Following Visit to Mongolia. (IMF)

• Kincora Copper Announces Mongolian Earn-In Finalised with Drilling to Commence. (NewsLife)

• 10 Countries Whose Currency Value Is Less Than Indian Rupee. (TimesofIndia)

• Development Bank of Mongolia Upgraded To 'B+' After Same Action On Sovereign; Outlook Positive. (S&PGlobal)

POLITICS

• Kazakhstan-Mongolia: Highway Link Through Russia Under Study. (Nova.News)

• Alaska National Guard, Mongolia Strengthen Partnership. (NationalGuard)

• Mongolia Adopts Canada's Towards Sustainable Mining® Initiative. (Yahoo!Finance)

• Mongolia’s Strategic Shift In A Changing Geopolitical Landscape.(TheDiplomat)

• U.S.-Mongolia Energy Dialogue: Ambassador’s Remarks. (USEmbassy)

• Putin 'Met With Shamans In Mongolia To Ask About Using Nukes'. (MSN)

CULTURE & LIFESTYLE

• Colder Winter Expected Across Most Of Mongolia In Coming Winter. (XinhuaNews)

• CNA Lifestyle Stayed At The Mongol Nomadic Camp. (CNA)

• CNN's 'Next Stop' Visits Mongolia Where Digitalization Is Modernizing Its Traditional Nomadic Way Of Life. (PRNewswire)

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ch.Battseren

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.