The UK is to cut import taxes on hundreds more products from some of the world's poorest countries to boost trade links.

The Developing Countries Trading Scheme comes into force in January and builds on a scheme the UK was first part of while a member of the European Union.

Goods such as clothes, shoes and foods not widely produced in the UK will benefit from lower or zero tariffs.

The scheme covers 65 developing countries.

It is on top of the thousands of products which developing nations can already export to the UK without tariffs and will affect around 99% of goods imported from Africa.

The Department for International Trade said the work was part of a wider push by the UK to use trade to "drive prosperity and help eradicate poverty", as well as reduce dependency on aid.

The scheme includes powers to suspend a country on the grounds of human rights or labour violations, as well as for not meeting their climate change obligations.

International Trade Secretary Anne-Marie Trevelyan said: "As an independent trading nation, we are taking back control of our trade policy and making decisions that back UK businesses, help with the cost of living, and support the economies of developing countries around the world.

"UK businesses can look forward to less red-tape and lower costs, incentivising firms to import goods from developing countries."

Many goods, from textiles to fruit, in 65 of the world's poorest nations already benefit from reduced or zero tariffs when sold to the UK, making them more appealing.

The new scheme cuts some of those charges further - for example, on cucumbers which can not be produced here during the winter.

It also simplifies the rules for which items, such as some textiles, qualify for preferential treatment.

The changes could save importers millions of pounds - although, even if passed on in full, the price savings for consumers may be marginal.

Coming when aid to developing countries has been reduced, the scheme underlines a government policy of using trade instead.

The scheme removes some seasonal tariffs on products like cucumbers, which cannot be grown in the UK in the winter, so they are tariff-free during this period for the majority of countries under the scheme.

It also simplifies trade rules such as rules of origin, which dictate what proportion of a product must be made in its country of origin.

Mohammed Jabbar, managing director of DBL Group, a textile business from Bangladesh, said this was a "game changer" for his company.

"[The changes] mean we will be able to source our cotton from many more countries than we could before, which will make the business more competitive and our supply chains a lot more resilient," he said.

Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce its financial results for the three months ended June 30, 2022.

Second Quarter Highlights (all figures in US$000's unless stated otherwise)

Revenue for the three months ended June 30, 2022, was $17,237 on sales of 8,907 gold ounces and 717 silver ounces with average realized prices per ounce of $1,933 and $22 respectively.

Operating income from mine operations, before depreciation and depletion was $9,950.

Consolidated group adjusted EBITDA for the quarter was $7,939.

Site All in Sustaining Cost was $811 per ounce sold for the three months ended June 30, 2022.

During the three months ended June 30, 2022, 502,572 tonnes of ore were mined and 237,603 tonnes of ore were stacked on the leach pad with an average gold grade of 2.04 g/t and an average silver grade of 12.17 g/t.

As at June 30, 2022, cash and restricted cash amounted to $40,384; total bank and other debt (excluding convertible debentures) was $51,562 and net debt was $11,178.

The construction and installation of the new fixed crushing unit is expected to be completed by September 2022. This is the first major equipment installation for Steppe Gold's Phase 2 Expansion, which will also allow the Company to drive higher crushing rates in the remaining oxide phase.

Major ongoing works include the fuel storage and camp expansion. Plant design for Phase 2 is scheduled to commence soon.

Ramp-up at Phase I continues with July gold production of 3,693 oz.

Outlook

The focus for the balance of 2022 will be on maximizing gold production from the leach pad and continuing to work on operational efficiencies and strengthening supply chain logistics at the ATO Gold Mine.

The Company has built up a significant inventory of precious metals and is working hard to maximize the yield from this inventory. With planned revenues from gold production for the balance of 2022, the Company aims to reduce or refinance its debt obligations in 2022 and progress discussions on project financing for the Phase 2 Expansion that is already underway.

The Company's consolidated financial results for the three months ended June 30, 2022 have been filed on SEDAR. The full version of the condensed interim consolidated financial statements and associated management's discussion & analysis can be viewed on the Company's website at www.steppegold.com or under the Company's profile on SEDAR at www.sedar.com.

The officials of the Ministry of Digital Development and Communications of Mongolia held a virtual meeting with the officials of the National Aeronautics and Space Administration (NASA).

Due to global warming and climate change, the ecological balance is lost and the frequency of natural disasters is increasing. Therefore, there are needs such as conducting detailed research in this area in combination with space technology, making situation assessments based on many years of quantitative data, and predicting potential risks. Therefore, our country will receive NASA's support for research in this area. Moreover, the sides agreed to implement joint programs to upskill Mongolian specialists in space research.

The Ministry of Digital Development and Communications actively develops cooperation with NASA, the Russian State Space Corporation (Roscosmos), the Asia-Pacific Space Cooperation Organization (APSCO), and the Indian Space Research Organization (ISRO).

Prime Minister of Mongolia L.Oyun-Erdene, Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar along with related authorities worked in the locations of ger area redevelopment that is being implemented in Ulaanbaatar. According to the results of the first half of 2022, 20,536 households in 19 locations have been involved in ger area redevelopment.

In Bayanzurkh District, the ger area redevelopment is being implemented in four locations out of six locations. As part of the project, 609 households received their apartments in the first phase, and 550 more apartments will be put into use in the further. In Songinokhairkhan District, 199.6 hectares of land in seven locations will be redeveloped and six project implementers have started their work in seven Khoroos. The project implementers have built and put into use 15 blocks for 846 households.

Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar said, "In accordance with the duties instructed by the Prime Minister of Mongolia, large-scale construction is being carried out within the framework of the objective of reducing traffic congestion and decentralization of the capital city. Developments that are not implemented during the years of the Covid-19 pandemic have begun this year. We believe that the main basis of any work and success is organization. Therefore, in order to reduce traffic congestion, road repair and maintenance, building highways, public transport fleet renovation, and increasing access to schools and kindergartens are being carried out according to the plan. Particular attention to improving the quality of life of the population of Ulaanbaatar, providing them with the opportunity to live in a healthy and safe environment, and achieving unified standards are being paid. The capital city intends to implement Singapore's experience and housing policy in the ger area redevelopment, and bring out the correct planning of mortgage loans and capital sources. Ulaanbaatar will cooperate with Singapore in bringing urban planning to one standard.”

Since the implementation of the ger area redevelopment started, as of 2021, apartments for 11,755 households have been put into use in 19 locations in the ger area, and more than 5,000 chimneys in the ger area have been removed. It is characterized by the fact that schools, kindergartens, and medical buildings are built and put into use in accordance with the standards within the ger area redevelopment.

CAPITAL CITY TRAINING, RESEARCH, AND PUBLIC RELATIONS AGENCY

In the first seven months of this year, about 4.5 thousand borrowers received mortgage loans worth about MNT 355 billion through the funding sources of the Bank of Mongolia and commercial banks. In addition, mortgages worth MNT 71.7 billion are being disbursed in August this year, reported the Bank of Mongolia. Last year, 13.5 thousand borrowers were given mortgage loans worth MNT 1 trillion in total.

With a view to alleviate the financial hardship posed by COVID-19 pandemic, the mortgage repayment deferrals have been made five times between April, 2020 and the end of 2022 according to the Law on Prevention, Combat, and Mitigation of Social and Economic Impacts of the COVID-19. For the last or fifth deferrals on mortgage repayment, commercial banks allowed to postpone the repayment of 63,171 borrowers in total based on their requests.

170 new COVID-19 cases were confirmed in Mongolia in past 24 hours.

83 of them were contacts of earlier confirmed cases in Ulaanbaatar, 87 were detected in the regions. No imported cases were found.

Mongolia did not register any coronavirus related deaths in a day.

The total number of deaths remains 2,123.

Canada’s Turquoise Hill Resources (TSX, NYSE: TRQ) has rejected majority shareholder Rio Tinto’s (ASX: RIO) bid to buy the 49% stake it doesn’t already own in the company for $2.7 billion, saying it did not reflect its full and fair value.

The decision by the special committee appointed by Turquoise Hill blocks Rio Tinto’s efforts to gain greater control of the giant Oyu Tolgoi copper-gold mine it is developing in Mongolia.

It is also a setback to Rio’s plans to increase its exposure to future facing commodities such as copper and nickel, which are key for the global green energy transition. Taking a bigger stake in the Oyu Tolgoi mine, Rio Tinto’s main copper growth project, would help the mining giant achieve that goal.

“Market conditions in the equity and copper markets have changed significantly since the receipt of Rio Tinto’s privatization proposal,” Maryse Saint-Laurent, chair of the special committee, said in the statement. “At the same time, the company has continued to make positive progress on the underground project.”

The world’s second largest miner, which controls and operates Oyu Tolgoi through its 51% stake in Turquoise Hill, offered in March $34 a share to the miner’s minority shareholders, a 32% premium to the closing price the day before the offer was put forward.

The offer came only two months after Rio and the government of Mongolia reached an agreement to complete the long-delayed $6.9 billion underground development of the Oyu Tolgoi project in the Gobi Desert.

That deal saw the Melbourne-based miner agree to write off $2.4 billion in loans and interest used by Mongolia’s capital Ulaanbaatar to fund its share of the development costs.

oyu tolgoi

Rio Tinto, which joined Turquoise Hill as a strategic partner in October 2006, began managing the development of Oyu Tolgoi in December 2010. (Image courtesy of Turquoise Hill Resources.)

Rio Tinto said it was “disappointed” by the rejection, adding it still believes the deal would deliver compelling value for Turquoise Hill’s minority shareholders.

Interim Chief Executive Steve Thibeault said the funding agreement with Rio Tinto remained in effect and that the company expected it to provide sufficient liquidity to meet funding requirements.

Thibeault was referring to an agreement reached in May in which Rio Tinto committed to provide an interim debt funding of up to $400 million.

Turquoise Hill recently raised the cost estimate to develop the underground section of Oyu Tolgoi by about $200 million.

The project total cost has climbed to $7.06 billion, almost $1.8 billion higher than the original estimate in 2015.

Three-year delay and counting

The ongoing expansion of Oyu Tolgoi, located is 550 km (342 miles) south of Ulaanbaatar, has been plagued by delays and costs overruns.

At one time the situation triggered the Mongolian government’s ire to the point of threatening to revoke the 2009 investment agreement, which underpins the mine development.

First production, initially expected in late 2020, was rescheduled for October 2022 and later to the first half of 2023.

Once completed, the underground section will lift production from 125,000–150,000 tonnes in 2019 to 560,000 tonnes at peak output, which is now expected by 2025 at the earliest.

According to the miner, this would make it the biggest new copper mine to come on stream in several years and, by 2030, the operation would be the world’s fourth largest copper mine.

Oyu Tolgoi is expected to produce 110,000-150,000 tonnes of copper and 150,000-170,000 ounces of gold in concentrates in 2022 from processing ore from the open pit, underground and stockpiles.

Rio Tinto controls and operates the Oyu Tolgoi mine via Turquoise Hill’s 66% stake in the operation. The government of Mongolia owns the remaining 34%.

Rio Tinto’s plan to take direct ownership of a copper mine in Mongolia has hit the buffers after its $2.7bn buyout proposal was rejected.

Turquoise Hill Resources said a special committee had “terminated” its review of Rio’s C$34-per-share cash offer, saying it did not “fully and fairly reflect” the value of its holding in Oyu Tolgoi.

“A transaction at the price proposed by Rio Tinto would not fairly compensate minority shareholders for the fundamental, long-term value of the company’s interest in Oyu Tolgoi,” said Maryse Saint-Laurent, chair of the special committee.

Located in the Gobi desert, Oyu Tolgoi is one of the world’s biggest copper deposits. Once an underground expansion project is completed, it will be one of the world’s biggest copper mines, with production in its early years of about 500,000 tonnes per year, just as demand for the metal increases because of the energy transition.

It is one of several projects that Rio chief executive Jakob Stausholm is trying to sort out as he looks to position the group for the shift to a low-carbon economy.

Although Rio operates Oyu Tolgoi and is overseeing the underground expansion project, it does not have a direct stake in Oyu Tolgoi. Instead, it holds a 51 per cent stake in Toronto-listed Turquoise Hill, which in turns owns 66 per cent of Oyu Tolgoi. The rest is owned by the government of Mongolia.

Turquoise Hill said on Monday that engagement between the parties had “not resulted in a consensus on value and price or in any improved proposal from Rio Tinto”.

The company launched its offer for Turquoise Hill in March just as the copper price hit a record high above $10,600 a tonne. Turquoise Hill responded by establishing the special committee of independent directors to review and consider the Rio proposal.

At the time Bold Baatar, head of Rio’s copper division, said the offer, which was pitched at a 32 per cent premium, would create a “simpler and efficient ownership” structure for Oyu Tolgoi.

The price of copper has since fallen back to about $8,000 a tonne, although many analysts remain bullish on its long-term prospects.

When Rio reported half-year results last month, Stausholm was asked about the buyout offer, which he described as a “full-priced proposal”. He also noted copper assets had fallen 40 per cent since March.

Saint-Laurent said the committee would now support Turquoise Hill in its efforts to raise at least $650mn in new equity by the year-end to shore up its finances and complete development of the underground mine, where first production is expected in the first half of next year. Shares in the Canadian group closed at C$32.80 on Friday.

In a statement, Rio said it was “disappointed” by the decision of the special committee and it would remain “financially disciplined” as it considers its next move.

Should a deal not proceed, Rio said it would “welcome” continued investment by minority shareholders Turquoise Hill to meet their share of “future risks and funding obligations”.

The development costs for the underground mine at Oyu Tolgoi mine have risen to $7bn, up from an initial estimate of $5.3bn.

“While we are disappointed by this decision, we will continue to work constructively with the board of Turquoise Hill to advance the Oyu Tolgoi project,” said Baatar.