Lloyd's of London to open company in Brussels www.nhk.or.jp

The world's largest insurance market, Lloyd's of London, says it will set up a new company in Brussels to continue providing services after Britain's future exit from the European Union.

Ex-South Korean president Park Geun-hye arrested in corruption probe www.bbc.com

Ousted South Korean President Park Geun-hye has been arrested and taken into custody over a corruption scandal that led to her dismissal.
The 65-year-old was driven to a detention centre south of Seoul after a court approved her arrest.
She is accused of allowing her close friend Choi Soon-sil to extort money from companies, including Samsung, in return for political favours.
Ms Park, who was removed from office earlier this month, denies the claims.
She is the third former president of South Korea to be arrested over criminal allegations, Yonhap reports.

Japan to grant a US$ 850 million soft loan to Mongolia www.gogo.mn

The official visit of Mongolian parliamentarians headed by Speaker of the Parliament M.Enkhbold has commenced on March 27, 2017. 
On this day, Japanese Prime Minister Shinzo Abe received Chairman M.Enkbold. Meanwhile, he announced to grant a US$ 850 million soft loan to Mongolia, in scope of IMF`s Extended Fund Facility program. 
This loan is almost equal to the total loan amount provided by the Japanese government since Mongolia`s transition to democracy and a market economy.
Japan has provided a total of US$ 3 billion loan to Mongolia, of which approximately US$ 1 billion was soft loan. 
During the meeting, Speaker M.Enkhbold mentioned some of the major projects that can be implemented by two countries. He stated "Mongolia is extremely rich in solar and wind energy resources. We have an opportunity to produce clean energy using these resources and supply it to regional countries of Northeast Asia Grid Interconnection. We would like to implement this project in cooperation with your country". Moreover, he asked Japanese Prime Minister to take into account the issue of copper, iron ore and fluorite export to the Japanese market. 
Japanese Prime Minister Shinzo Abe said "We are able to send a professional team to conduct research and conclusion when feasibility study of the coal-chemical complex project is completed. Other issues related to the export and energy should be submitted through the Japanese embassy in Mongolia".

Mongolia launches seven new air routes www.gogo.mn

On Mar 30th at 8 a.m, Mongolian civil aviation sector launched seven new air routes. 
According to the "Government policy on civil aviation until 2020", Mongolian civil aviation sector set to implement Performance-based navigation (PBN) procedures with three phases. The launch of seven new air routes was the second phase of the implementation of PBN procedure. 
PBN offers a number of advantages over the sensor-specific method of developing airspace and obstacle clearance criteria:
reduces the need to maintain sensor-specific routes and procedures, and their costs. 
avoids the need for developing sensor-specific operations with each new evolution of navigation systems, which would be cost-prohibitive. 
allows for more efficient use of airspace (route placement, fuel efficiency and noise mitigation);
clarifies how RNAV systems are used;
facilitates the operational approval process for civil aviation authorities by providing a limited set of navigation specifications intended for global use.
Previously, Mongolia was using three PBN routes and today it has increased to 10. As estimated, the new PBN routes to reduce carbon dioxide emitting by transit air crafts by 5220 tons, shorten 230 thousand kilometers route and save 1,600 tons of fuel.

Erdenes Tavan Tolgoi announces complete repayment of debt to CHALCO www.montsame.mn

Oyu Tolgoi announces 2016 Performance Update www.ot.mn

Oyu Tolgoi today announced an update on its performance for the fourth quarter and full year 2016.

Full year highlights:

Oyu Tolgoi achieved an industry-leading safety performance with an All Injury Frequency Rate of 0.22 per 200,000 hours worked for the year ended December 31, 2016
Oyu Tolgoi cumulative in-country spend, in the form of salaries, payments to Mongolian suppliers, taxes, royalties and other payments to the Government of Mongolia, crossed $6.1 billion the end of 2016
Operations update:
Revenue of $1.2 billion in 2016 on record concentrate sales of 828,600 tonnes
Operated at record levels for material mined and ore treated; concentrator throughput exceeded nameplate capacity by year end
Copper production of 201,300 tonnes and gold production of 300,000 ounces exceeded guidance
Underground update:
Progress was made on the sinking of Shafts 2 and 5 with final depth for both shafts expected to be reached in 2017
At the end of 2016, underground lateral development was ahead of schedule with 1.6 equivalent kilometres completed
Bulk excavation component of the convey-to-surface system completed in 2016, followed by the commencement of the decline tunnel work in January 2017
Fourth quarter 2016:

Revenue of $224.6 million in Q4’16 was slightly lower than Q3’16 reflecting lower concentrate sales
In Q4’16, concentrator throughput increased 7.4 per cent over Q3’16 resulting in an average daily rate of 106,700 tonnes for the quarter, which was a quarterly high to date.
Outlook for 2017:

Oyu Tolgoi is expected to produce 130,000 to 160,000 tonnes of copper and 100,000 to 140,000 ounces of gold in concentrates for 2017
Sales contracts have been agreed for a significant majority of Oyu Tolgoi’s expected 2017 concentrate production
Oyu Tolgoi Managing Director Armando Torres said, “Our industry leading safety performance over 2016 demonstrates once again that safety always comes first at Oyu Tolgoi – and this is a result we are extremely proud of. This is a foundation for everything we do – from delivering a strong operating performance, to progressing underground development – and made possible by our talented workforce, which is over 90 per cent Mongolian.”

“The strength of our performance is seen in our contribution to our community – with US$210.6 million in taxes, fees and other payments to the Government of Mongolia, US$279 million in national and South Gobi supplier spends, and continued investment into sustainable development initiatives – as we together build a world class business that contributes to the prosperity of Mongolia”

Oyu Tolgoi operated at record levels in 2016. Productivity improvements in the concentrator implemented throughout the year led to throughput exceeding nameplate capacity by year end. Copper production of 201,300 tonnes for 2016 exceeded the Company’s guidance of 175,000 to 195,000 tonnes and annual gold production of 300,000 ounces exceeded 2016 guidance of 255,000 to 285,000 ounces. Compared to 2015 results, mined production for 2016 increased 5.6 per cent, concentrator throughput increased 10.5 per cent, copper production was similar and, as expected, gold production decreased 54.1 per cent. Decreased gold production for 2016 reflects the impact of declining grade from the completion of Phase 2 mining in the second half of the year.

Oyu Tolgoi performed well during Q4’16 as open-pit operations focused mainly on Phases 4 and 6. Q4’16 concentrator throughput increased 7.4 per cent over Q3’16 resulting in an average daily rate of 106,700 tonnes for the quarter, which was a quarterly high. Copper production in Q4’16 was broadly consistent with Q3’16 while gold production increased 32.4 per cent over Q3’16 due to the final processing of Phase 2 ore. Copper grades in Q4’16 were as expected as operations focused mainly on Phase 6 of the open pit.

Oyu Tolgoi continues to deliver a strong environmental performance, achieving high water use efficiency – utilizing less than half the water per-tonne of ore compared to similar operations, and achieving recycling rates of 85 per cent. Oyu Tolgoi completed biological rehabilitation at 367.3 hectares land in 2016, and continued progress on a range of environmental programmes.

Oyu Tolgoi also delivered strong progress in community initiatives, with two kindergartens and a school in Dalanzadgad, sport halls in Manlai operationalized, and 13 new sustainable development projects and programmes approved and implemented in 2016. A new bulk water treatment facility in Khanbogd was also completed and is scheduled to be handed over to the local community in April, 2017. The facility gives a significant boost to the community, with the capacity to provide services to 13,000 residents.

Revenues in 2016 decreased 26.4 per cent to $1.2 billion against 2015 mainly reflecting lower copper prices and reduced gold sales, partially offset by higher gold prices. Concentrate sold in 2016 of 828,600 tonnes increased 1.1 per cent over 2015 reaching an annual high. Capital expenditure, on a cash basis, for 2016 was $326.3 million compared to $116.2 million in 2015, comprising amounts attributed to the underground project and open-pit activities of $226.8 million and $99.5 million, respectively. Open-pit capital expenditure includes deferred stripping of $30.9 million and tailings storage facility spending of $22.0 million.

Operational outlook

Oyu Tolgoi is expected to produce 130,000 to 160,000 tonnes of copper and 100,000 to 140,000 ounces of gold in concentrates for 2017. Open-pit operations are expected to mine in Phases 4 and 6 during the year. In addition, stockpiled ore will be processed during the year. The lower production when compared to 2016 is primarily the result of approximately one-quarter less copper head grade and approximately one-half less gold head grade.

Capital expenditures for 2017 on a cash-basis are expected to be approximately $100 million for open-pit operations and $825 million to $925 million for underground development.

Underground development capital includes both expansion capital and VAT. In an effort to encourage bidding by Mongolian suppliers, Oyu Tolgoi has incorporated longer tendering periods resulting in a slightly longer capital deployment process. The Company continues to expect production from the first underground draw bell in mid-2020 and first sustainable production beginning in early 2021.

Constant supply of energy ensured in western area of Khuvsgul Lake www.montsame.mn

Ulaanbaatar /MONTSAME/ During the Cabinet meeting took place on March 29, P.Gankhuu, Minister of Energy introduced a plan on supplying electric power in the tourism region of the western area of the Khuvsgul Lake.

Midterm Program on Strategic Partnership of Mongolia and Japan signed www.montsame.mn

Ulaanbaatar /MONTSAME/ On March 28, Midterm Program on Strategic Partnership of Mongolia and Japan was signed by Foreign Affairs Ministers of the two countries, Ts.Munkh-Orgil and Fumio Kishida. The event was held within the official visit of Parliamentary Speaker M.Enkhbold to Japan.

UB Mayor closes River Tuul quarry www.news.mn

Ulaanbaatar Mayor S.Batbold, has announced that the operation of a quarry next to the River Tuul is to cease. The ban comes into immediate force from today (29th of March). It is considered that the existence of the quarry next to the river, which flows through the heart of the Mongolian capital, contravenes the rights of citizens. A total of eleven companies based along the banks of the River Tuul will be effected by this new law.

Cabinet orders free issuance of hay to herders www.montsame.mn

Ulaanbaatar /MONTSAME/ During its regular meeting on March 29, Wednesday, the Cabinet resolved to issue hay and fodder to some aimags; and ordered corresponding Ministers to allocate the required money from Government reserve fund, and see to the implementation of the resolution.