Apple is under fire for moving iCloud data to China www.cnn.com

Apple's latest move in China has privacy advocates and human rights groups worried.
The U.S. company is moving iCloud accounts registered in mainland China to state-run Chinese servers on Wednesday along with the digital keys needed to unlock them.

"The changes being made to iCloud are the latest indication that China's repressive legal environment is making it difficult for Apple to uphold its commitments to user privacy and security," Amnesty International warned in a statement Tuesday.

The criticism highlights the tradeoffs major international companies are making in order to do business in China, which is a huge market and vital manufacturing base for Apple (AAPL).

In the past, if Chinese authorities wanted to access Apple's user data, they had to go through an international legal process and comply with U.S. laws on user rights, according to Ronald Deibert, director of the University of Toronto's Citizen Lab, which studies the intersection of digital policy and human rights.

"They will no longer have to do so if iCloud and cryptographic keys are located in China's jurisdiction," he told CNNMoney.

The company taking over Apple's Chinese iCloud operations is Guizhou-Cloud Big Data (GCBD), which is owned by the government of Guizhou province. GCBD did not respond to requests for comment.

The change only affects iCloud accounts that are registered in mainland China.

Apple (AAPL) made the move to comply with China's latest regulations on cloud services. A controversial cybersecurity law, which went into effect last June, requires companies to keep all data in the country. Beijing has said the measures are necessary to help prevent crime and terrorism, and protect Chinese citizens' privacy.

The problem with Chinese cybersecurity laws, Deibert said, is that they also require companies operating in China "to turn over user data to state authorities on demand -- Apple now included."

Other big U.S. tech companies have had to take similar steps -- Amazon (AMZN) and Microsoft (MSFT) also struck partnerships with Chinese companies to operate their cloud services in the country.

Apple says that it did advocate against iCloud being subject to the new law, but was unsuccessful.

"Our choice was to offer iCloud under the new laws or discontinue offering the service," an Apple spokesman told CNN. The company decided to keep iCloud in China, because cutting it off "would result in a bad user experience and less data security and privacy for our Chinese customers," he said.

Apple users typically use iCloud to store data such as music, photos and contacts.

That information can be extremely sensitive. Earlier this month, Reporters Without Borders urged China-based journalists to change the country associated with their iCloud accounts -- which is an option for non-Chinese citizens, according to Apple -- or to close them down entirely.

Human rights groups also highlighted the difficult ethical positions Apple could find itself in under the new iCloud arrangement in China.

The company has fought for privacy rights in the Unites States. It publicly opposed a judge's order to break into the iPhone of one of the terrorists who carried out the deadly attack in San Bernardino in December 2016, calling the directive "an overreach by the US government."

At the time, CEO Tim Cook said complying with the order would have required Apple to build "a backdoor to the iPhone ... something we consider too dangerous to create."

Human Rights Watch questioned whether the company would take similar steps to try to protect users' iCloud information in China, where similar privacy rights don't exist.

"Will Apple challenge laws adopted by the Chinese government that give authorities vast access to that data, especially with respect to encrypted keys that authorities will likely demand?" asked Sophie Richardson, China director for Human Rights Watch.

Apple declined to answer that question directly, but it pushed back on concerns that Chinese authorities will have easy access to iCloud users' data.

"Apple has not created nor were we requested to create any backdoors and Apple will continue to retain control over the encryption keys to iCloud data," the Apple spokesman said.

"As with other countries, we will respond to legal requests for data that we have in our possession for individual users, never bulk data," he added.

Rights groups and privacy advocates are not convinced.

"China is an authoritarian country with a long track record of problematic human rights abuses, and extensive censorship and surveillance practices," Deibert said.

Apple users in China should take "extra and possibly inconvenient precautions not to store sensitive data on Apple's iCloud," he advised.

Most of those users have already accepted the new status quo, according to Apple. So far, more than 99.9% of iCloud users in China have chosen to continue using the service, the Apple spokesman said.

Advocacy campaign to tackle teen drinking and smoking www.theubpost.mn

The Youth Development Agency has inked a cooperation agreement with the National Center for Mental Health to launch an advocacy campaign for preventing alcoholism among students and young people.

Financial Regulatory Commission releases its 2017 report www.gogo.mn

The Financial Regulatory Commission (FRC), which regulates over 21,000 capital market, insurance, non-banking financial institutions, savings and loan associations and entities, presented its 2017 report on February 26.

Ambassadors have exchanged their views on bilateral relations www.embassyofmongolia.co.uk

The Extraordinary and Plenipotentiary Ambassador of Mongolia to UK, H.E. Mr.S.Bayar has met with H.E. Mr. Philip Malone, the newly appointed UK Ambassador to Mongolia.

Centerra Gold releases 2017 report and provides 2018 Outlook www.gogo.mn

Centerra Gold Achieves 2017 Consolidated Gold Production Guidance, Beats Cost Guidance, Records $210 Million Net Earnings and Generates $234 Million Free Cash FlowNG and Provides 2018 Outlook

This news release contains forward-looking information that is subject to the risk factors and assumptions set out under “Caution Regarding Forward-looking Information”.

It should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2017. The consolidated financial statements of Centerra Gold Inc. are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. All figures are in United States dollars and all production figures are on a 100% basis unless otherwise stated.

All references in this document denoted with NG, indicate a non-GAAP term which is discussed under “Non-GAAP Measures” and reconciled to the most directly comparable GAAP measure.

Centerra Gold Inc. (“Centerra”) (TSX: CG) reported net earnings of $130.0 million or $0.45 per common share (basic) on revenues of $358.2 million in the fourth quarter of 2017.

The fourth quarter 2017 result includes a tax benefit of $21.3 million as a result of a change in tax legislation enacted in the U.S. Excluding this item, adjusted earnings NG in the fourth quarter of 2017 were $108.7 million or $0.37 per common share (basic).

An impairment charge of the Company’s Mongolian assets of $41.3 million ($39.7 million net of tax), a tax benefit of $21.3 million resulting from the enactment of new tax legislation in the U.S. and a gain of $9.8 million ($6.9 million net of tax) on the sale of the ATO property in Mongolia.

During the same period in 2016, the Company reported net earnings of $63.6 million or $0.23 per common share (basic) on revenues of $305.7 million and adjusted earnings NG of $68.6 million or $0.24 per common share (basic). For the full year 2017, the Company recorded net earnings of $209.5 million or $0.72 per share (basic) on revenues of $1.2 billion compared to $151.5 million or $0.60 pershare (basic) on revenues of $757.7 million in 2016.

The increase in earnings in 2017 reflects a full-year of operations at Mount Milligan and increased production at Kumtor. In addition in 2017, the Company recorded charges for a settlement reached with the Kyrgyz Republic Government of $60 million, an impairment charge of the Company’s Mongolian assets of $41.3 million ($39.7 million net of tax), a tax benefit of $21.3 million resulting from the enactment of new tax legislation in the U.S. and a gain of $9.8 million ($6.9 million net of tax) on the sale of the ATO property in Mongolia. Excluding these items, adjusted earningsNG in 2017 were $281 million or $0.96 per share (basic) compared to adjusted earnings of $160.9 million or $0.64 per share (basic) in the comparative year.

2017 Fourth Quarter and Full Year Highlights

• Entered into a comprehensive settlement agreement in September 2017 with the Government of the Kyrgyz Republic to resolve all the outstanding matters affecting the Kumtor Project.

• Announced a friendly acquisition of AuRico Metals Inc. on November 7, 2017, which closed on January 8, 2018.

Offset 2017 mining depletion and increased global gold mineral reserves to 16.3 million contained ounces of gold (746.8 Mt at 0.7 g/t gold) at year-end, primarily as a result of the acquisition of AuRico Metals and successful brownfield exploration at Mount Milligan and Öksüt. Mineral reserves and mineral resources estimates are described in the Company’s news release of February 8, 2018.

• Achieved Company-wide 2017 gold production guidance producing 785,316 ounces; Kumtor produced 562,749 ounces exceeding the upper end of its favourably revised guidance, while Mount Milligan produced 222,567 ounces falling short of the lower end of its revised guidance.

• Mount Milligan produced 53.6 million pounds of copper during 2017, which was slightly below its guidance, but sold 59.7 million pounds of copper. The Mount Milligan mill was shutdown temporarily late December due to a shortage of water in the milling process. The mill was restarted utilizing one ball mill (approximately 30,000 tonnes per day) on February 5, 2018 once sufficient water became available.

• Exceeded Company-wide 2017 guidance for all-in sustaining costs on a by-product basis per ounce soldNG at $688, excluding revenue-based tax in the Kyrgyz Republic and income tax ($572 per ounce sold in the fourth quarter 2017).

• Cash generated from operations totaled $500.9 million for the year (including $416.1 million from Kumtor and $150.6 million from Mount Milligan). In the fourth quarter 2017 cash generated from operations was $170.4 million (including $160 million from Kumtor and $29.2 million from Mount Milligan).

• Cash, cash equivalents, restricted cash and short-term investments at December 31, 2017 were $416.6 million.

• Received all of the necessary permits and approvals for Kumtor’s 2018 mine plan. The approvals and permits are valid through December 31, 2018.

Subsequent to December 31, 2017

• Received approval of the pastureland permit for the Öksüt Gold Project in Turkey, the last remaining outstanding permit needed for the project’s future development. In addition, received from the Turkish Ministry of Economy an investment incentive certificate which provides Öksüt with certain tax incentives.

• Received Board approval for the construction of the Öksüt Project, subject to continued availability of the OMAS Facility (defined below). Construction is expected to commence in April 2018.

• Received an amendment to the Mount Milligan Environmental Assessment Certificate that allows for limited withdrawal of water from Philip Lake until October 2018. The Company expects to commence drawing water by the end of February and to carry out the necessary studies, and to consult with affected First Nations groups to work toward a further, longer-term amendment to the Environmental Assessment Certificate.

• On February 1, 2018, entered into a $500 million, four-year senior secured revolving credit facility with a lending syndicate of eight financial institutions as lenders, led by The Bank of Nova Scotia and National Bank of Canada. This facility amended and restated the Centerra B.C. Facility which had an outstanding amount of $190 million and replaced the $125 million AuRico Acquisition Facility which was fully drawn. See “Liquidity – Credit Facilities”.

Kumtor had another strong year exceeding its revised production guidance and beating its all-insustaining cost guidance, delivering 562,749 ounces of gold production at all-in-sustaining cost on a by product basis of $698 per ounce sold in 2017. In 2017, Mount Milligan met its all-in-sustaining cost guidance at all-in-sustaining cost on a by-product basis of $505 per ounce sold but fell short of its gold and copper production producing 222,567 ounces of gold and 53.6 million pounds of copper.”

“Financially, both operations generated a significant amount of cash provided by operations before changes in working capitalNG during the year, Mount Milligan generated $138.6 million and Kumtor generated $424.3 million. The lifting of the restrictions on Kumtor’s cash along with the positive cash flow generated from both our operations during the year enabled the Company to aggressively pay down its debt by approximately $209 million.

In 2017, we generated $188 million of free cash flowNG from Kumtor and $127.4 million from Mount Milligan.” “For 2018, we are estimating consolidated gold production to be in the range of 645,000 to 715,000 ounces. Additionally, we are expecting 47 million to 52 million pounds of payable copper production from Mount Milligan for the year. At Kumtor, we are expecting gold production to be weighted more towards the backhalf of the year with approximately 45% of the production expected in the fourth quarter of 2018. At Mount Milligan we expect 60% of the production to be in the second half of the year.

Centerra’s projected consolidated all-in sustaining cost per ounce soldNG on a by-product basis for 2018 is expected to be in the range of $799 to $885 per ounce.” “Our projected capital expenditures for 2018, excluding capitalized stripping, is estimated to be $242 million which includes $100 million of sustaining capitalNG and $142 million of growth capitalNG spending.

Growth capital spending includes $82 million for the Öksüt Project in Turkey where we expect to commence construction activity in April and $36 million to advance the Kemess Underground Project with pre-construction activities. Öksüt represents the new generation of low-cost production and an important third source of cash flow for the Company.”

Mongolia becomes second country to meet all requirements of EITI standard www.xinhuanet.com

ULAN BATOR, Feb. 27 (Xinhua) -- Mongolia has become the second country to meet all the requirements of the Extractive Industries Transparency Initiative (EITI) standard among the 51 implementing countries, the Mongolian authorities said Tuesday.

U.S. assistant secretary of defense to visit Mongolia on cooperation www.xinhuanet.com

ULAN BATOR, Feb. 27 (Xinhua) -- U.S. Assistant Secretary of Defense for Asian and Pacific Security Affairs Randall Schriver will pay an official visit to Mongolia from Wednesday to Friday for talks with Mongolian officials on bilateral defense cooperation.

Diesel ban approved for German cities to cut pollution www.bbc.com

German cities will be allowed to ban older diesel vehicles from some areas following a landmark court ruling.

The Federal Administrative Court in Leipzig said the cities of Stuttgart and Duesseldorf could legally ban older, more polluting diesel cars from zones worst affected by pollution.

The ruling sets a precedent for other cities and analysts said it could lead to similar action across Europe.

The government, which had opposed the bans, said they could still be avoided.

The ruling by a top federal court came after German states had appealed against bans imposed by local courts in Stuttgart and Duesseldorf.

The environmental group DUH brought the cases after about 70 German cities exceeded European Union limits for nitrogen oxides (NOx) last year.

Diesel emissions containing nitrogen oxides can cause respiratory disease.

The likelihood now is that the German government will rush to introduce some sort of national policy, to ensure at least some level of consistency across the country.

It's not just about Germany either - cities across Europe are struggling to meet EU air quality standards, and may well see the German ruling as setting a precedent.

New diesel cars won't be affected, but that's not really the point. Consumers are already moving away from the technology - and the prospect of city bans will only accelerate that process.

So diesel's decline is likely to gather momentum.

That's a problem for the industry, because while diesels produce high levels of nitrogen oxide - a major urban pollutant - they emit relatively low levels of carbon dioxide, a greenhouse gas.

So moves to control one environmental problem may end up undermining efforts to combat another - unless we all start driving electric cars very soon.

Diesel vehicles have faced greater scrutiny since VW's "dieselgate" scandal.

In September 2015, the car maker admitted it had used illegal software to cheat US emissions tests. Some 11 million cars worldwide ended up being affected by the scandal.

DUH said it hoped the bans in German cities would end the industry's "resistance" to refitting older, more-polluting cars to meet the latest EU standards.

ClientEarth, an environmental law firm that worked on the case, said the win was "a tremendous result for people's health in Germany and may have an impact even further afield".

Lead clean air lawyer Ugo Taddei said: "This ruling gives long-awaited legal clarity that diesel restrictions are legally permissible and will unavoidably start a domino effect across the country, with implications for our other legal cases."

The impact on German drivers could be marked, with millions being forced to leave their cars at home on days when harmful emissions are particularly high.

It could also depress the value of diesel cars affected by the ban.

Of the 15 million diesel cars on Germany's roads, only 2.7 million meet the latest Euro-6 standards, according to data from Germany's automotive watchdog.

Car companies could also incur huge costs to refit vehicles at a time when consumer interest in diesel is falling.

The market share for diesel vehicles in Germany fell from 48% in 2015 to around 39% last year.

"The court has not issued any driving bans but created clarity about the law," said Environment Minister Barbara Hendricks. "Driving bans can be avoided, and my goal is and will remain that they do not come into force," she added.

Chancelor Angela Merkel also weighed in, saying the ruling concerned only "individual cities".

"It's really not about the entire country and all car owners," she said.

Bans elsewhere?
Seeking to avert bans, German car makers have pledged software improvements for millions of diesel cars and offered trade-in incentives for older models.

The German government meanwhile has floated alternatives, such as making public transport free in cities suffering from poor air quality.

Paris, Madrid, Mexico City and Athens have all pledged to ban diesel vehicles from city centres by 2025, while the mayor of Copenhagen wants to ban new diesel cars from entering the city as soon as next year.

Carmakers including VW-owned Porsche and Toyota have also signalled they will move away from diesel technology.

Analysts at Evercore ISI said the latest German ruling had "set a strong precedent for similar action across Europe".

"Note, the judge previously commented that the EU has clear rules on emissions and cities have a 'duty' to meet pollution targets."

Mongolia one of eight countries with established sustainable finance www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolia is one of the eight countries that are at the ‘established’ stage of sustainable finance, according to the Global Progress Report of the Sustainable Banking Network, an International Finance Corporation-supported (IFC) organization of banking regulators and associations.

Mongolia ranked 70th on Fraser Institute's Investment Attractiveness Index www.gogo.mn

Mongolia was ranked 70th among 91 countries assessed for Fraser Institute's 2017 Investment Attractiveness Index.