📜 NEW MINERALS BILL | THE LAND OF DIGITAL NOMADS | TOTAL FDI STOCK

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"Mongolia is the land of blue sky" is a popular saying in Mongolia because the country has over 250 sunny days a year!

🤔 DID YOU KNOW?

The movie "If Only I Could Hibernate" became the first-ever Mongolian film to be nominated for the “Un Certain Regard” selection of the Cannes Film Festival 🎞.

“Un Certain Regard” is a section of the festival that features a diverse selection of films characterized by unconventional storytelling and unique visual styles.

 📜 MONGOLIA’S NEW MINERALS BILL: MORE TRANSPARENCY, LESS RED TAPE

The Mongolian government wants to make mining easier and more accountable. The mining industry is vital for the country’s economy, as it contributes 20% of its GDP and 95% of its exports. Given the significance, policymakers are carefully discussing the details with the public and businesses. The bill, due for a second round of discussions later this month, brings three main changes to the existing law:

• It creates a category of “essential minerals” that the government can prioritize for exploration, based on geopolitical risks and domestic needs.

• It cuts resource royalties and scraps some taxes that discourage investment. Currently, Mongolia has one of the highest resource royalties in the world.

• It requires miners and refiners to submit a closure plan before getting permits, to ensure they can afford to clean up after themselves and to check the economic feasibility of the mines.

The bill comes at a time when the demand for minerals is high, and Mongolia needs to boost its economy. Plagued by a strict and inconsistent regulatory environment, the country’s foreign direct investment has seen a decline over the past few years, despite its mineral abundance.

The government hopes to clean that reputation and shore up investor confidence through broad reforms that also include new investment and casino bills. As Oyu Tolgoi begins its underground mining, the quest for the next bonanza is already underway.

📈 DATA STORY

Mongolia’s total FDI stock in 2022 reached $27.7 billion, a 6% increase from the previous year. $15.6 billion (56%) of Mongolia's total FDI stock comes from equity capital investments, whereas the remaining $12.1 billion (44%) comes from intra-company loans.

In terms of economic sectors, $20.2 billion, or about 70% of the total FDI was in the mining sector. FDI has played a significant role in Mongolia's economic development, particularly in the mining sector.

🇲🇳 THE LAND OF DIGITAL NOMADS

When you think of Mongolia, images of vast rugged landscapes and horse-riding herders may come to mind. However, the first sight that greets you upon arrival is the vibrant capital city of Ulaanbaatar. This bustling metropolis is not only a business and financial hub, but also home to many colleges and universities, making it a lively and youthful city. Here are five reasons why you should choose Mongolia as your next destination as a digital nomad:

• Convenience: Ulaanbaatar is a modern city that rivals any other metropolis. You can find affordable accommodation deals starting at just $10 a night on Airbnb. There are many exceptional coffee shops with beautiful decor, quality coffee, and high-speed Wi-Fi – perfect for a cozy, productive day. Sip a warm cup of coffee while you dive into your business.

• Connectivity: Mongolia boasts one of the lowest prices for high-speed internet access in the world. What's more, it shares the same time zone as the financial centres of East Asia, including Hong Kong, Beijing, and Taipei, giving you a head start when it comes to getting things done by making it easier to coordinate meetings and communicate with your partners.

• Food: Ulaanbaatar's food scene is a delight to explore, with traditional Mongolian cuisine that cannot be found anywhere else in the world and exceptional Italian and Korean restaurants. You'll find unique and tasty food everywhere you go.

• Entertainment: Huuhdiin Zuu, the city's main entertainment street, comes alive at night with phenomenal pubs, restaurants, and street performers. The trendy clothes, fantastic music, and flashy nightclubs are an experience you won't forget. In addition, keep an eye out for annual music festivals like Xyyp and Playtime in the summer.

• Weekends in the Wilderness: Escape the hustle and bustle of the city with a short drive to Mongolia's vast grasslands and authentic nomadic culture. From exciting adventure rides to peaceful camping by the riverside, you'll feel closer to nature than ever before. Stay in a cozy felt ger tent, savour delicious dairy and meat products, and learn about the customs and traditions of hospitable and generous nomads. Discover a world away from the ordinary and unlock the wonders of nomadic culture.

Mongolia is a land of adventure, where you can enjoy the freedom and independence of nomadic life. It is also a great place for remote work, thanks to its fast and reliable internet. You can easily get or extend a visa, as most countries are exempt from visa requirements. To learn more, visit www.immigration.gov.mn.

🏃 QUICK STORIES

📌Gobi Cashmere steps into footwear with cashmere shoes. The Mongolian firm, one of the world’s largest cashmere brands, is expanding its product range with footwear made from the soft and warm fibre. The shoes are a testament to Gobi Cashmere’s technological prowess and ambition in the global market.

📌 TMK Energy targets gas from Mongolia’s coal deposits. TMK Energy, a Perth-based company, has launched a project to extract natural gas from coal seams in the South Gobi basin of Mongolia. The Gurvantes XXXV project covers 8,400 square km of land where thick and high-quality coal seams are exposed at the surface.

📌Korea Coal Seeks to Sell Its Khotgor Shanaga Mine. Korea Coal Corporation, a state-owned firm, plans to take advantage of the resource boom by selling its Khotgor Shanaga coal mine in Mongolia’s Uvs Province. The mine, which was the company’s first foreign venture, is worth $30 million, including a management premium.

📌 Mongolia faces uncertainty over China currency swap deal. Mongolia’s currency swap deal with China, worth $1.7 billion, is set to expire in July. The deal, signed in 2018, allows Mongolia to exchange its tugrik for yuan, easing trade transactions with China, which accounts for 93% of its exports. However, the central bank governor has warned that Mongolia’s recognition of its spiritual leader, appointed by the Dalai Lama, could antagonize China.

📌 Revised Draft of the Investment Law available for public feedback and recommendations. To implement the objectives and measures aimed at enhancing the investment climate as outlined in Mongolia's long-term development policy "Vision-2050" and the "New Revival Policy", a draft revision of the Law on Investment has been formulated. The draft is currently undergoing a feedback collection process from citizens. Recommendations may be submitted via email to [email protected].

⭐ TOP NEWS

• Explaining Democratic Mongolia’s Strong Ties With Russia and China (The Diplomat)

• Mongolia vows to break its corruption habit (Asia Times)

• Things tourists should never do in Mongolia (NewsBytes)

• Pope confirms plans to go to Mongolia in September (Reuters)

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Editor: E. Zolbayar
Writer: A. Bilguun, A. Tuvshinzaya

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