On December 16, Vladimir Putin will hold talks with President of Mongolia Ukhnaagiin Khurelsukh, who will be in Russia on a visit.

The two leaders will discuss the current state and prospects for the development of their countries’ comprehensive strategic partnership in politics, trade, the economy, science, technology and humanitarian sphere. They will also exchange views on interaction on the international stage.

China's northern Inner Mongolia region is aiming for a fivefold increase in rare earth production value by 2025. This comes as the country's near-total dominance of global supply raises concerns about its possible use as a bargaining chip.

"Inner Mongolia's rare earth industry is in the unique position of having three elements - resources, manufacturing, and research and development - in one place," deputy chief of industry and information technology Wu Suhai said as he called for a consolidation of industry chains.

The region aims to reach rare earth production value of 100 billion yuan (US$15.7 billion) by 2025, he said on Sunday, an increase of about five times over 2020 figures.

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Rare earths are a group of 17 metals essential to manufacturing circuitry found in everyday electronics from fridges to mobile phones, as well as military vehicles.

The F-35 fighter jet, for instance, contains 417kg (919 lbs) of rare earths, making up about 3 per cent of its mass. The metals are also used in green technology, such as electric car batteries, wind turbines and solar panels.

China's supply of more than 85 per cent of the world's rare earth elements has led to fears that it could limit supply as a geopolitical leverage, disrupting industrial chains and hitting key industries of countries such as the United States, with which it has an ongoing trade war.

Baotou, the Inner Mongolian city known as China's rare earth capital and home to the vast majority of the region's rare earths extraction and processing facilities, reported 21.9 billion yuan in production value last year.

To reach the goal of 100 billion yuan by 2025, production value would need to grow by at least 30 per cent annually, Baotou mayor Zhang Rui noted.

Mongolian operator Unitel has selected SLA Digital as its managed service provider for carrier billing.

As part of the relationship, SLA Digital will be able to offer digital content providers access to Unitel’s other payment options including IPTV payments, Toki E-Wallet and payments made via U-Point, their points based loyalty program.

Kevin Drayne, CEO at SLA Digital said that the partnership with Unitel would “enable seamless and secure payment experiences for their customers through carrier billing… offering a vast range of digital content and entertainment with new convenient ways to pay.”

The partnership means Unitel will be able to introduce new digital content to customers from SLA Digital’s expanding client portfolio. Likewise, digital content providers can connect to Unitel’s mobile subscribers and expand into this region through a simple integration process.

Drayne added: “Our direct connection with Unitel Mongolia will allow our existing and new digital content partners to easily connect to the mobile operator and make the most of all the payment options available. We hope that more content and more ways to pay will lead to greater choice and satisfaction for Unitel customers.”

China’s zero-Covid policy continues to result in prolonged closures of the Mongolia-China border, causing supply chain disruptions, higher inflation and goods shortages. Mongolia’s exports and income also take substantial hits.

New coronavirus cases continue to arise in China’s Inner-Mongolia province and there is understandable nervousness over the advent of the new Omicron variant of the virus. In keeping with the government’s zero-tolerance Covid policy, strict lockdown measures thus remain in place. Beijing, meanwhile, places the blame at Mongolia’s door for the continued Covid outbreaks in neighbouring Inner Mongolia. It has even punished Inner-Mongolian officials for what Beijing refers to as “their slack response to recent outbreaks”. Consequently, prospects for a re-opening of the border with Mongolia have not improved lately.

Mongolia is dependent on China for 33% of its imports, 89.1% of its exports and more than 60% of its overall economy. Border closures have dramatically reduced income in the export sector, while the inability to import products and materials from China have caused disruptions throughout society.

Mongolian coal exports are down to about one-third of what was seen last year. The reduced coal exports have contributed to shortages of both coal and energy in China, while causing economic hardship in Mongolia. Border closures have left 3,500 Mongolian coal truck drivers at Chinese dry ports, stuck in long queues. SouthGobi Resources, one of Mongolia’s largest mining companies, reported that its sales dropped off 80% in August, leading to a suspension of mining operations.

Rising transportation costs and continued congestion in the logistics network have contributed to Mongolia’s inflation rate hitting 9.6%, with food, meat, solid fuels, and gasoline experiencing the largest price increases. By September, meat prices in Ulaanbaatar had risen 16% and fuel prices 38.8%. Other factors driving inflation include increased costs of transport, logistics congestion and supply-side factors.

“The supply chain is always a problem for all developing landlocked countries,” lamented Dulguun Damdin-Od, director of operations at the International Think Tank for Landlocked Developing Countries (ITC for LLDCs). He went on to explain that the current situation was even worse than usual, noting that “only a few trucks are allowed through the border each day.” This explained why products were in short supply and were becoming more expensive in Mongolia, but the grocery store shelves were not completely wiped out.

Huge bottleneck

G. Orgil, president of Mongolian Freight Forwarders Association (MFFA) and CEO of New Logistics, said: “At the Erenhot [land border crossing between China and Mongolia] there is a quarantine that is causing some problems. Mongolian drivers are getting quarantined there. Normally there would be 300 trucks [crossing per day], now it is only 100. It’s a huge bottleneck.”

The border crossing has always been a bit of a red tape problem with a great deal of paperwork needing to be completed for customs clearance. According to Dulguun, presently it can be necessary to submit as many as 12 documents to send through a container of goods.

Orgil said: “The process used to take two to three business days. Now it is seven to 10 days. But seven to 10 is an inconsistent estimate. It varies, from time to time.”

“Thousands of international containers are stuck in Tianjin,” added Dulguun, referring to the Chinese seaport most used for Mongolia’s trade with the rest of the world. He added that there were also thousands of containers stuck in the dry port between China and Mongolia.

Much of Mongolia's economy is founded on exporting natural resource riches to China.

Orgil said that the prices for shipping were increasing and there was a shortage of trucks.” Looking at air freight, Orgil said: “For importing air freight, there used to be four aviation companies performing two flights each. So up to five to 10 flights per day. Now there might be one to two daily planes coming in. Some days, there are none.”

Jargal Altan-chimeg, the accountant for Tsakhiur Togoo, a transportation company located in Sukhbaatar province, close to the Chinese border, told how the company’s business had been adversely affected. “Because borders are usually closed now, transportation is not going well. Because of Covid, our financial situation is difficult now.” Jargal went on: “Before Covid, in a month we had around 100 to 200 trucks going to the Chinese border, but now, this month we have none.”

Since the border closure has made it impossible for Mongolia’s exports to reach the sea, other options had to be explored, such as overland, through Russia or via plane, which are all much more expensive.

“Small business owners are suffering,” said Dulguun.

Airline prices double

Byamba-Jargal, export manager at Angel Felting, a company which produces sheep’s wool slippers for the domestic and export markets, explained that the company normally exported by both plane and overland. “Because of the pandemic, the prices of airlines that we have always used have doubled,” said Byamba-Jargal. “The transportation cost per product was three euros, then it increased to six euros, and now, sometimes seven to eight euros.”

Supply chain disruptions have also caused hiked prices for raw materials. “For instance, sole materials have doubled in price,” said Byamba-Jargal. “We used to buy rubber material for 6,000 tughrik, but now it is 12,000 tughrik. And also sewing thread, that has increased in price tremendously. And auxiliary materials are now expensive, as well.”

Angel Felting, said Byamba-Jargal, was unable to increase its export price, so its profit margin was down. The company had, however, raised its domestic price. “Generally, we used to sell much cheaper domestically, but we’ve increased the domestic price.”

Byamba-Jargal wished to increase exports and was worried about future lockdowns. “I hope there is no strict quarantine in the country again. I hope we will have the chance to work constantly.”

Angel Felting was also worried about increased raw material costs. “And if the price of auxiliary materials keeps going up, it will impact us significantly,” Byamba-Jargal said.

While a price increase for finished slippers might be warranted, Byamba-Jargal worried that increasing the price would negatively impact sales and revenues. Were raw material prices to remain high, “we will have no other option but to increase our price, but then our distributors and customers can’t buy our products. So, that means our sales will decrease.”

On the domestic market, many sellers are dependent on import flows from China, the volumes of which are now greatly reduced.

Munkhgerel, a vegetable stall owner in Hall A of the large Bumbugur market in Ulaanbaatar, said that his stall bought in most products from ‘bars’, or supply markets, with green vegetables coming from outside of Mongolia and potatoes sourced domestically.

The lockdowns, said Munkhgerel, had dramatically impacted business because there was a shortage of green vegetables, one of the most important revenue earners. “There is a large decrease in revenue, almost a 50% decrease. For example, today I would have sold 200,000 tughrik worth of vegetables to restaurants, but I wasn’t even able to make a profit of 10,000 tughrik.”

According to Munkhgerel, potatoes were abundant, because they were produced locally: “People nowadays eat a lot of green vegetables. People used to eat five kilograms of potatoes. Now, they eat two kilograms of potatoes and eat one piece of broccoli and 500 grams of spinach and bok choy [a Chinese cabbage]. Perhaps this is due to health reasons. Having no green vegetables is decreasing profits massively.”

'Everything is stagnant'

“Nothing is coming in, everything is stagnant [since the border closures were made,” said Munkhgerel. “For example, garlic that would have normally been 60,000 tughriks has become 120,000 to 140,000 tughriks.”

As for attempting to source vegetables elsewhere, Munkhgerel said: “There are no sources. In the morning, I go and get my products. The day before yesterday, I got some Russian tomatoes and cucumbers. I rarely find any Mongolian lettuce, and it is very overpriced, up to 20,000 to 30,000 tughriks. And those lettuces are so hard to sell, since they are so overpriced.”

A fruit seller in Bumbugur market, Erdenetsetseg, agreed that the border closures had drastically affected business. “There are shortages. Some products that are coming in from Russia are extremely overpriced. During regular times, I used to buy bananas for 70,000-75,000 tughrik. Now, the same amount of bananas would cost me 182,000.” And of course, the higher costs are passed on to the customers. “Since we are buying for so much, we have to sell at higher prices. And the biggest victims are my customers. If the Chinese borders were to close permanently, we would be in a very tough situation.”

Some products were available, but in limited amounts and at higher prices. Other products were simply unavailable, Erdenetsetseg said. “From Russia I can get Polish apples, pears, lemons, oranges and grapes. This is all I have. We don’t have kiwis and peaches, for example. Normally, we would have at least four types of grapes, but now, I only have one. My stand is usually full. Now, I can’t fill it up,” added Erdenetsetseg.

Erdenetsetseg’s bottom line has been hit hard. “It is affecting profit a lot. We are all trying to just pay our rent, and we have no extra money in our hands.”

Another vegetable seller, Battsetseg, said that Chinese border closures had completely disrupted the supply market. “The bars only get new products once or twice a week. Before the closing of the border, product volumes were already in decline.” This was due to COVID-19 lockdowns and restrictions in China, which put a brake on exports to Mongolia. Now that the border was closed, the situation was worse. “Since the borders closed, there has been shortages and a 50% increase in prices,” added Battsetseg.

Lkhatulga, a tea seller, said of the border closure: “There are effects such as shortages as we are unable to buy products and also some increases in transportation costs.”

Shortages of secondary inputs, such as packaging, have halted local production of certain products. “Mongolian tea companies have stopped producing, due to a shortage of tea packets. Some milk tea companies don’t have external plastic packing to put their products in. All these support products come from China,” Lkhatulga said.

Coffee shops are running out of takeaway cups. Some shops only have small cups, no other sizes. That causes about a 15% reduction in revenue per cup of coffee sold.

According to Lkhatulga, some companies try to get around the lack of packaging. “A few companies have been producing regardless of the shortage in support materials. They are selling with no teabags. All these companies buy their raw materials from China.” And of course, prices were going up. “Some companies are increasing their prices because of higher transportation costs and higher prices in the raw materials market.”

Lkhatulga’s profits decreased. “People want to buy their products for the same price. But we cannot sell at the same price because we’re buying for much more. They blame us for increasing the price. I used to buy some products for 4,000 tughrik and sell them wholesale for 4,300 or sell them at 4,500 individually. Now, I buy them for 5,000 and sell them for 5,500. That might seem like the same for my profits. But because of the price, people are buying less, so profits are down.”

Lkhatulga also concurred that business was being affected by shortages of secondary materials, saying: “The plastic bags have become 100 tughriks already, and I can’t just give them away for free. So, I charge my customers for them, and they are very unhappy with the prices.”

Michael Morrow, executive director at MACU LLC, a cheesemaking company, said that in addition to the immediate challenges, the lockdowns and supply chain issues have altered his company’s long-term planning. He said: "Covid has been very hard for small businesses in Mongolia. We're no exception. Our fromagerie has suffered from lockdowns and other restrictions. Our main goal, to cooperate with rural communities to export high-quality artisan cheeses made from Mongolia's nomadic pastoral dairy, has been set back years.” Among the many issues MACU was facing was a shortage of milk caused by government subsidy changes that drove up the price.

Scramble to catch up

Continued Covid restrictions within Mongolia were also a problem. “From the beginning of 2021, there was a very strict quarantine all over the country, so we lost the busiest four months of manufacturing, because everyone was staying at home,” said Byamba-Jargal. When workers were permitted to return to work, they had to scramble to catch up on existing orders. “So, in July and August, we had to work frantically to finish two months’ worth of work in one month. It was very difficult for our workers. Very busy.”

Worker fatigue, short-staffing, the dire need to catch up, overtime, as well as a lack of worker rotations and rest periods were among other problems specified by business owners and workers.

Christian, an American, working at the Oyu Tolgoi gold and copper mine in the Gobi Desert, said: “I normally work 12-hour days, on a rotation of 28 days on-site, followed by 14 days off to rest. During 28 days on-site it is mandatory that all workers should get a fatigue [rest day], usually at mid-point, day 14. When the roster goes over 28 days, workers are to be given one day off every week. My last roster, I did 50 days straight, and I was not given my day off until my 23rd day, and only got two days off after that, one of which was a half-day to transfer to night shift. Many workers at MCSI [an engineering contractor working at Oyu Tolgoi] are doing 70-day rotations.”

All in all, nearly two years of Covid lockdowns and restrictions have hit Mongolia’s economy rather hard. Right now, Mongolia is opening up, but the zero-tolerance Covid policy in China is keeping borders closed. As a result, Mongolian exporters are finding it difficult or impossible to keep up with export volumes. Sellers are having problems finding goods to sell or inputs for the manufacture of finished products. Some products are still terribly scarce, particularly fruits and vegetables. Many Mongolians are suffering from reduced income, while the whole population is experiencing high inflation. Most of these problems would dissolve, if China would adopt a less stringent Covid policy.

By Antonio Graceffo & Khangal Odbayar, & Enkhjin Erdenetulga

Pfizer's updated results for its experimental treatment for Covid-19 showed it cut the risk of hospitalization or death by 89% if given to high-risk adults within a few days of their first symptoms, the company announced in a news release Tuesday.

Pfizer hopes it can eventually offer the pills, under the name Paxlovid, for people to take at home before they get sick enough to go to the hospital. Paxlovid combines a new antiviral drug named nirmatrelvir and an older one called ritonavir.

After a month of follow-up, the study found five hospitalizations and no deaths among 697 people who received the drug within the first three days of symptoms. Among 682 who received placebo, 44 were hospitalized, including 9 who died. All of the adults in this study were unvaccinated.

If given within the first five days of symptoms, the efficacy was similar: 88%. These results hold up against a similar announcement from the company last month, when not all the data had come in yet.

The research also showed "an approximate 10-fold decrease in viral load at Day 5, relative to placebo," the statement said.

"This underscores the treatment candidate's potential to save the lives of patients around the world, whether they have been vaccinated or not," Pfizer CEO Dr. Albert Bourla said in a statement Tuesday. "Emerging variants of concern, like Omicron, have exacerbated the need for accessible treatment options for those who contract the virus, and we are confident that, if authorized or approved, this potential treatment could be a critical tool to help quell the pandemic."

The company says it expects the drug to retain activity against variants like Omicron -- and it appears to do so in lab tests -- because the drug blocks an enzyme involved in viral replication. This is different from the spike protein on the virus' surface, whose numerous mutations have escalated the global concern around the variant.

Pfizer announced it has shared this latest data with the US Food and Drug Administration as part of its ongoing application for emergency use authorization. "Full study data are expected to be released later this month and submitted to a peer-reviewed publication," Pfizer's statement added. No date has been set by the FDA advisory committee expected to weigh in on the treatment.

According to the company, a separate, ongoing study also found Paxlovid may cut hospitalizations when given to adults who aren't at high risk -- which includes a mix of unvaccinated adults and vaccinated people with at least one risk factor for severe illness. The latest data show 10 hospitalizations in the placebo group, versus three among those receiving Paxlovid, each group including nearly 430 people. However, the study was primarily designed to look at the drug's ability to improve all symptoms for four days straight -- an endpoint the drug didn't meet when compared to the placebo group. No deaths have occurred in that study.

Between 20 and 25% of the treatment and placebo groups in each study experienced adverse events, the majority of which were mild. In the study of high-risk adults, people who received the drug were less likely to have a serious adverse event or stop taking the drug for those reasons.

A month ago, the Biden Administration announced it would purchase 10 million treatment courses for $5.295 billion. If authorized by the FDA, the first courses could be delivered by the end of the year, it said at the time. A five-day course of Paxlovid comprises three pills given twice a day.

Paxlovid is the not the only antiviral pill in the pipeline for FDA authorization. Merck's drug, molnupiravir, was narrowly recommended by FDA's advisers in a 13-10 vote at the end of November after data showed it cut the risk of hospitalization or death by 30% among high-risk adults. This was lower than an earlier analysis suggesting that number could be around 50%. The FDA has not announced whether it will authorize the treatment.

Remdesivir, sold under the brand name Veklury, is the only antiviral approved by FDA for treatment of Covid-19. It's given intravenously, not as a pill that can be taken at home.

CNN's Amanda Sealy contributed to this report.

Dec. 14 (Xinhua) -- Mongolia on Tuesday confirmed 191 new COVID-19 cases in the last 24 hours, bringing the national tally to 386,826, according to the country's health ministry.

Two of the latest confirmed cases were imported from abroad and the remaining were local transmissions, the ministry said in a statement.

Meanwhile, two more COVID-19 patients over the age of 40 died in the past day, pushing the national death toll to 1,965, it said.

Currently, 2,925 COVID-19 patients are being hospitalized across the country, while 5,122 patients are receiving home-based care, according to the ministry.

Over 66 percent of Mongolia's population of 3.4 million has received two vaccine doses, with 814,756 people over 18 years of age having received a booster. Enditem

The President of Mongolia U.Khurelsukh will pay an official visit to the Russian Federation on December 15-17, 2021 as part of the celebration of the 100th anniversary of the establishment of diplomatic relations between Mongolia and the Russian Federation.

During the visit, President Khurelsukh will hold talks with his Russian counterpart Vladimir Putin to exchange views on a wide range of issues of bilateral cooperation.

Moreover, a ‘Joint declaration on the 100th anniversary of the establishment of diplomatic relations between Mongolia and the Russian Federation’ will be issued and documents of cooperation in some sectors will be signed.

Starting from January 1, a total of 59 services being provided in Ulaanbaatar will be made available digitally.

Preparation has been ensured to digitize 59 permissions out of a total of 82 types of permissions provided by agencies, departments of the districts and the capital city. At the regular meeting of the capital city authorities, numerous works being carried out to eliminate bureaucracy in public services of Ulaanbaatar have been presented.

A National Committee was established in charge of digital transition and eliminating corruption and bureaucracy. At the meeting officials reported on the progress of works aimed at connecting the districts with fiber optic cable and high-speed internet, ensuring cyber security, and digitalizing permissions issuance, provided to the citizens.

Students of Ulaanbaatar took third place at the 6th International Olympiad of Metropolises with a team score.

Teams from 35 cities competed in chemistry, physics, mathematics, and informatics in the Olympiad.

A team of eight 14-18-year-old students represented Ulaanbaatar in the Olympiad with two students participating in each event and won two gold, one silver, and two bronze medals. Specifically, student of School No.1 B.Munkhtselmeg won gold in mathematics, Selbe School’s B.Gerel gold in chemistry, Orchlon School’s Ts.Taikhar bronze in chemistry Sant School’s B.Bilguun silver in physics, and Sh.Bilguudei bronze in informatics.

Moreover, Ulaanbaatar’s team won prize in a blitz contest held as part of the Olympiad, which required the teams to solve 80 tasks in 2 hours.

MONTREAL, Dec. 13, 2021 /CNW/ - Turquoise Hill Resources Ltd. ("Turquoise Hill" or the "Company") today noted recent media coverage regarding ongoing negotiations between the Government of Mongolia (the "Government"), Rio Tinto and the Company. The Company and Rio Tinto have made a joint offer to the Government of Mongolia which aims to reset the relationship and allow all parties to move forward together. The offer includes, among other elements, a proposal to forgive and write-off the entirety of the approximately US$2.3 billion carry account loan owing by the Mongolian-owned shareholder (Erdenes) to the Company and cancellation of the UDP agreement on a go-forward basis. The offer follows on months of discussions between Turquoise Hill, Rio Tinto and the Government of Mongolia to understand the Government's issues and priorities, deliver greater economic value to Mongolia and build a stronger partnership for a prosperous future for all.

Turquoise Hill remains committed to working with the Government of Mongolia to advance the Oyu Tolgoi project for the benefit of all stakeholders, including securing approval for the commencement of the undercut as quickly as is practical following the entering into of a definitive agreement among the parties. Negotiations continue and remain subject to required approvals, with all parties focused on being in a position to finalise an agreement. A further market update will be provided as and when appropriate.

Forward-looking statements and forward-looking information

Certain statements made herein, including statements relating to matters that are not historical facts and statements of the Company's beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements and information relate to future events or future performance, reflect current expectations or beliefs regarding future events and are typically identified by words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "plan", "estimate", "will", "believe" and similar expressions suggesting future outcomes or statements regarding an outlook. These include, but are not limited to, statements and information regarding: the likelihood of the Company being able to achieve, in the near or mid-term, a definitive agreement with the Government of Mongolia and Rio Tinto that would settle various outstanding material matters that are critical to progressing the Oyu Tolgoi project and the corresponding likelihood of the undercut decision being able to be made reasonably shortly thereafter; the ability of Oyu Tolgoi LLC ("OT LLC") to maintain critical activities in the OT underground mine development project and to sustain work on the development of the OT underground mine as and when the partial and short-term bridging budget approved by the board of directors of OT LLC at the end of November 2021 shall approach being fully spent or committed in mid-January 2022; the approval or non-approval by the OT Board of any future necessary additional investment and the likely consequences on the timing and overall economic value of the OT project, including slowdown on the underground development and potential further delays to first sustainable production; in the event a definitive agreement with the Government of Mongolia is not entered into in the near term, the ongoing negotiations with, and the nature of the Company's relationship and interaction with, the Government of Mongolia on the continued operation and development of OT, including with respect to the Definitive Estimate and the potential termination, amendment or replacement of the 2009 Investment Agreement among Turquoise Hill, the Government of Mongolia, OT LLC and an affiliate of Rio Tinto ("IA") or the Oyu Tolgoi Mine Development and Financing Plan ("UDP") as well as the willingness of the Government of Mongolia to further engage in meaningful discussions with the Company, Rio Tinto and OT LLC; the willingness and ability of the parties to the IA or the UDP to amend or replace either such agreement; the implementation and successful execution of the funding plan that is the subject of the Heads of Agreement between the Company and Rio Tinto entered into in April 2021 ("HoA") and the amount of any additional future funding gap to complete the Oyu Tolgoi project and the amount and potential sources of additional funding required therefor, all as contemplated by the HoA, as well as potential delays in the ability of the Company and OT LLC to proceed with the funding elements contemplated by the HoA as a result of delays in approving or non-approval of any future necessary additional investment by the OT Board; the expectations set out in the 2020 Oyu Tolgoi Technical Report ("OTTR20"); the timing and ultimate resolution of certain non-technical undercut criteria; the timing and amount of future production and potential production delays; statements in respect of the impacts of any delays on achieving first commercial production and on the Company's cash flows; expected copper and gold grades; the merits of the class action complaints filed against the Company in October 2020 and January 2021, respectively; the likelihood that the Company will be added as a party to the international tax arbitration brought by OT LLC against the Government of Mongolia and the merits of its defence and counterclaim; liquidity, funding sources and funding requirements; the amount of any funding gap to complete the OT project; the amount and potential sources of additional funding; the Company's ability to re-profile its existing project debt in line with current cash flow projections; the amount by which a successful re-profiling of the Company's existing debt would reduce the Company's currently projected funding requirements; the Company's ability to raise supplemental senior debt; the timing of studies, announcements and analyses; status of underground development, including any slowdown of work; the causes of the increase in costs and schedule extension of the underground development; the mine design for Panel 0 of Hugo North Lift 1 and the related cost and production schedule implications; the re-design studies for Panels 1 and 2 of Hugo North Lift 1 and the possible outcomes, content and timing thereof; expectations regarding the possible recovery of ore in the two structural pillars, to the north and south of Panel 0; the possible progression of a state-owned power plant ("SOPP") and related amendments to the Power Source Framework Agreement ("PSFA") as well as power purchase agreements and extensions thereto; the timing of construction and commissioning of the potential SOPP; sources of interim power; the continuing impact of COVID-19, including any restrictions imposed by health or governmental authorities relating thereto on the Company's business, operations and financial condition, as well as delays and the development cost impacts of delays caused by the COVID-19 pandemic; capital and operating cost estimates; mill and concentrator throughput; the outcome of formal international arbitration proceedings; anticipated business activities, planned expenditures, corporate strategies, and other statements that are not historical facts.

Forward-looking statements and information are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company will operate in the future, including the price of copper, gold and silver; projected gold, copper and silver grades; anticipated capital and operating costs; anticipated future production and cash flows; the anticipated location of certain infrastructure in Hugo North Lift 1 and sequence of mining within and across panel boundaries; the likelihood of the Company being able to achieve, in the near or mid-term, a definitive agreement with the Government of Mongolia and Rio Tinto that would settle various outstanding material matters that are critical to progressing the Oyu Tolgoi project and the corresponding likelihood of the undercut decision being able to be made reasonably shortly thereafter and, more generally, the status and nature of the Company's relationship and interactions and discussions with the Government of Mongolia on the continued operation and development of OT (including with respect to the causes of the increase in costs and schedule extension of the underground development) and OT LLC internal governance (including the outcome of any such interactions or discussions); the availability and timing of required governmental and other approvals for the construction of the SOPP; the ability of the Government of Mongolia to finance and procure the SOPP within the timeframes anticipated in the PSFA, as amended, subject to ongoing discussions relating to a standstill period; the willingness of third parties to extend existing power arrangements; the willingness and ability of the parties to the IA or the UDP to amend or replace either such agreement; the nature and quantum of the current and projected economic benefits to Mongolia resulting from the continued operation of OT; the implementation and successful execution of the funding plan that is the subject of the HoA and the amount of any additional future funding gap to complete the OT project as well as the amount and potential sources of additional funding required therefor, all as contemplated by the HoA.

Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements and information include, among others: copper, gold and silver price volatility; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical recoveries; development plans for processing resources; public health crises such as COVID-19; matters relating to proposed exploration or expansion; mining operational and development risks, including geotechnical risks and ground conditions; litigation risks, including the outcome of the class action complaints filed against the Company; the outcome of the international arbitration proceedings; regulatory restrictions (including environmental regulatory restrictions and liability); OT LLC or the Government of Mongolia's ability to deliver a domestic power source for the OT project within the required contractual time frame; communications with local stakeholders and community relations; activities, actions or assessments, including tax assessments, by governmental authorities; events or circumstances (including public health crises strikes, blockades or similar events outside of the Company's control) that may affect the Company's ability to deliver its products in a timely manner; currency fluctuations; the speculative nature of mineral exploration; the global economic climate; global climate change; dilution; share price volatility; competition; loss of key employees; cyber security incidents; additional funding requirements, including in respect of the development or construction of a long-term domestic power supply for the OT project; capital and operating costs, including with respect to the development of additional deposits and processing facilities; defective title to mineral claims or property; and human rights requirements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. All such forward-looking statements and information are based on certain assumptions and analyses made by the Company's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are reasonable and appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements or information.

With respect to specific forward-looking information concerning the continued operation and development of OT, the Company has based its assumptions and analyses on certain factors which are inherently uncertain. Uncertainties and assumptions include, among others: the likelihood of the Company being able to achieve, in the near or mid-term, a definitive agreement with the Government of Mongolia and Rio Tinto that would settle various outstanding material matters that are critical to progressing the Oyu Tolgoi project and the corresponding likelihood of the undercut decision being able to be made reasonably shortly thereafter and, more generally, the status and nature of the Company's ongoing negotiations, relationship and interactions with the Government of Mongolia on the continued operation and development of OT (including with respect to the causes of the increase in costs and schedule extension of the underground development) and OT LLC internal governance (including the outcome of any such interactions or discussions); the sufficiency of the partial and short-term bridging budget approved at the end of November 2021; the approval or non-approval by the OT Board of any future necessary additional investment, and the likely consequences on the timing and overall economic value of the OT project, including slowdown on the underground development and significant delays to first sustainable production; the willingness and ability of the parties to the IA and the UDP to amend or replace either such agreement; the timing and cost of the construction and expansion of mining and processing facilities; the timing and availability of a long-term domestic power source (or the availability of financing for the Company or the Government of Mongolia to construct such a source) for OT; the implementation and successful execution of the funding plan that is the subject of the HoA and the amount of any additional future funding gap to complete the OT project as well as the amount and potential sources of additional funding required therefor, all as contemplated by the HoA; the nature and quantum of the current and projected economic benefits to Mongolia resulting from the continued operation of OT; the potential impact of COVID-19, including any restrictions imposed by health and governmental authorities relating thereto, as well as the development cost impacts of delays caused by the COVID-19 pandemic; the impact of changes in, changes in interpretation to or changes in enforcement of, laws, regulations and government practices in Mongolia; the availability and cost of skilled labour and transportation; the obtaining of (and the terms and timing of obtaining) necessary environmental and other government approvals, consents and permits; delays and the costs which would result from delays, including delays caused by COVID-19 restrictions and impacts and related factors, in the development of the underground mine (which could significantly exceed the costs projected in OTTR20); projected copper, gold and silver prices and their market demand; and production estimates and the anticipated yearly production of copper, gold and silver at OT.

The cost, timing and complexities of mine construction and development are increased by the remote location of a property such as OT. It is common in mining operations and in the development or expansion of existing facilities to experience unexpected problems and delays during development, construction and mine start-up. Additionally, although OT has achieved commercial production, there is no assurance that future development activities will result in profitable mining operations.

Readers are cautioned not to place undue reliance on forward-looking information or statements. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Events or circumstances could cause the Company's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are included in the "Risk Factors" section in the Company's annual information form for the year ended December 31, 2020 ("AIF"), as supplemented by the "Risks and Uncertainties" section in the Company's management's discussion and analysis for the third quarter ended September 30, 2021 ("MD&A").

Readers are further cautioned that the list of factors enumerated in the "Risk Factors" section of the AIF and in the "Risks and Uncertainties" section of the MD&A that may affect future results is not exhaustive. When relying on the Company's forward-looking statements and information to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements and information contained herein are made as of the date of this document and the Company does not undertake any obligation to update or to revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.