Page 5 - AsiaElec Week 33 2022
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AsiaElec COMMENTARY AsiaElec
different situation, it is also applying strategies
that aren’t long-term solutions. The fear is, says
Lakshmi, that Mongolia will face a much harsher Mongolia’s coal exports, so vital to the national
reality amid the collapse of its economy, just as it economy, have significantly slowed in the past
did in the 1990s after the USSR, Mongolia’s main two years in the face of strict Chinese controls
economic benefactor, fell apart. on the spread of coronavirus causing border
“If we consider our basic situation, we have closures. Fortunately, unlike in 2016, coal and
entered into a very difficult situation: economic demand for other mineral commodities has
growth has slowed down, there is no [economic] been at an all-time high. Nonetheless, most of
diversification, the amount of debt is high, the Mongolia’s coal mining companies saw signifi-
currency has weakened. To put it bluntly, when cantly reduced profits and production cutbacks.
the economy is so fragile, I think it would be When China began to relax its “zero-COVID”
good to start working together with the IMF and policy, coal and other exports began to pick up.
start implementing projects and programmes But the mining companies were hesitant to
as soon as possible. The implementation of the rejoice, fearing that Beijing at the first sign of
IMF programme will bring some control over more coronavirus infections would once again
the budget,” she told Daily Newspaper, a Mon- move to close border points, triggering further
golian publication. losses.
Week 33 17•August•2022 www. NEWSBASE .com P5
