As mentioned in the previous article released from the Blue Hill Mining Project, the ensuing COVID-19 pandemic has created both opportunities and limitations in our project, a reflection of the global situation.
One of those limitations is the effect of the rise of Ethereum GAS within the blockchain, which is partly derived from the interest in the new DEFI space and the upcoming Ethereum2.0. Coupled with the ongoing Bull market it has inevitably skyrocketed the Gas prices.
In addition to this scenario that has been solved within our team and partners, we continue to face the day to day challenges presented by the world pandemic in legal and economic aspects. This entails trying to arrange windows of opportunity to continue working stringently within national legislation and international standards regarding risk management and containment of the COVID-19 pandemic.
Reacting to the global situation in advance
In order to advance the project and to be able to continue with our roadmap in the best possible way, we have acted with the greatest agility and effectiveness possible in the face of these unprecedented times with what we call our service logistics.
What is service logistics? To the external eye it is simply companies that must fulfill their obligations in a timely manner according to the scenario in which the activities are carried out. In our case, we have managed to reach this stage of the project in part thanks to our current partners and providers as well as our ongoing advisers.
This highly prestigious team of ours that has accompanied us from the beginning have been forced to restructure and pause their annual planning against this COVID-19 situation. As can be logically understood, this directly affects the planning of the Blue Hill Mining Project against its objectives and maximum terms of achievement, as well as the deadlines established in the pre-pandemic.
Thus, as of today an agreement with new partners and providers has been struck. With one specifically situated within Mongolia itself. This will ensure continuous work on the mining licenses, logistics and resources required for mining exploration and analysis works. In this way, we will be able to continue with the work as agreed by the international mining entities, service providers and local logistics suppliers without the legal and bureaucracy that the large companies enforce for their territories.
Part of the tasks this partnership will carry out can be seen shortly in the Roadmap, which includes all the work that we will carry out regarding the Licenses of the Blue Hill Mines Portfolio as well as several other important points listed below.
A frame of reference
To understand why global mining companies are suffering from the impacts of the pandemic, and why we thought it was necessary that mining activities begin working with local entities and suppliers
With this in mind it is useful and necessary to analyze the mining situation in Mongolia, where our licenses are located.
The first case of the Mongolian coronavirus disease pandemic was confirmed on March 10, 2020. Much has happened since then to date, and the crippling effect of the pandemic globally has been felt very strongly in Mongolia.
Public transport has been suspended until June 12, 2020 and flights from Istanbul, Moscow and Nur-Sultan that were scheduled from March 11 to March 28, 2020 were suspended. The same happened with the train route between Ulaanbaatar and Irkutsk, and the second route between Ulaanbaatar and Moscow, which were initially suspended until March 28 of this year.
Although Mongolia managed to contain the virus in part thanks to its natural social distancing due to population dispersion (livestock outnumber the human population by 22 to 1), its economy has been hit hard and more than 11,000 Mongolians are still waiting outside the borders. The problem is that more than half the population lives in the capital Ulaanbaatar, where health conditions have been aggravated by a mix of COVID-19 and pollution. This has caused the government to take a series of forceful measures that impact the local and glocal economy.
Citing a September 2020 report by IGF (Intergovernmental Forum) in its COVID-19 Response Series, it states that:
“In a context in which several governments have suddenly imposed national containment restrictions to limit the spread of the virus, there is an immediate impact on markets, supply chains and employment."
" Even in countries that have not imposed limitations on mining operations, restrictions on the movement of people and inputs relegate the development of projects. In Mongolia, the expansion of the Rio Tinto underground development project known as Oyu Tolgoi has slowed due to limited access by personnel, construction workers, and technical specialists. “
“However, unless mining companies commit to continuing to acquire assets locally and have storage capacity, prolonged lockdown would undoubtedly pose serious risks to the viability of these carefully cultivated links at the exploration and production stage. .”
“ The top 20 mining companies have announced significant cuts in their capital expenditures for 2020: Glencore plans to reduce its capital expenditure plans from USD 5.5 billion to between USD 4 and USD 4.5 billion; Rio Tinto cut at least $ 1 billion from its initial forecast of $ 7 billion; and Anglo American revised its capex guidelines by approximately $ 1 billion. “
“While relying on the local market can increase costs in the short term, it also presents lower risks of disruption, lower transport costs, shorter delivery times, stability and resilience of supply, and greater benefits for the local economy. long-term. “
We present the staff new and old that will accompany us and help us reach our goals and objectives. Hand in hand with them and working cohesively , we are confident that we will be able to continue to face all the problems that may arise at global and local levels, overcoming these hurdles and actually achieving substantial progress as planned.
New staff of Partners, Providers and Advisors for Blue Hill Mining Project
New shares holding Partner:
EUREKA MC, co-owner of the BH Mining Project.
Advisors / Providers:
Swiss Asian Resources: Key player in the acquisition of mining licenses. Originally part of the Blue Hill Mining Project company structure. An independent brand with a Mining Operations and Management services currently still coworking alongside the Blue Hill Mining Project.
GWE Intech: Original Investors through the belief of the Blue Hill Mining Project, acquisition of BHF-Tokens packages from Swiss Asian Resources and thereafter becomes a partner and advisor for the Blue Hill Mining Project in its Blockchain application.
BlockImpulse: Blockchain developers specializing in all aspects regarding the blockchain, smart-contracts and development.
Blockchain Work Labs: Responsible for the audits and smart contract fluidity for the Utility BHF-Token.
SGS: This is our Local entity in Mongolia that will deal with all aspects regarding mining exploration, logistics and analysis for the Blue Hill Mines licenses in a national localized manner.