On December 13, Rio Tinto and Turquoise Hill Resources sent an official letter addressed to Prime Minister L. Oyun-Erdene, agreeing the proposals and demands of the Government’s working group and confirming to write off Mongolia's USD 2.3 billion debt for its share (34 percent) in the Oyu Tolgoi copper-gold project, and to be fully responsible for the additional costs required until the underground mine is commissioned, which means Erdenes Oyu Tolgoi LLC, the state-owned company that holds the government’s equity in the project will not incur additional debts. Moreover, Rio Tinto expressed its readiness to cancel the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’, signed in 2015, and ‘Additional financing plan for Oyu Tolgoi underground mine development’.

The letter reads,

“We have recently held a meeting with You, Mr. Oyun-Erdene Luvsannamsrai, and Chairman of State Great Khural and members of the Temporary Committee to exchange views on improving the Oyu Tolgoi project’s benefits in the interests of the Mongolian people, cancelling the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’, writing off Erdenes Oyu Tolgoi’s debts as well as further making the project activities more transparent.

Taking into account your proposals, we are ready to take the following measures based on the discussions at the Board of Investors. These include:

-To write off Mongolia's USD 2.3 billion-debt for its share (34 percent) in the Oyu Tolgoi copper-gold project. With the debt write-off, the previously estimated USD22 billion-debt will not be incurred, which will increase the value of Erdenes Oyu Tolgoi’s 34 percent stake, and the timeline to start receiving dividends gets closer for Mongolia;

- To cancel the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’ and the ‘Additional financing plan for Oyu Tolgoi underground mine development’;

- To conduct an independent audit into the financing of the project's underground expansion;

-The Investor also agrees to cover the costs required until the first half of 2023, when the underground mine is commissioned, not incurring additional debts to Erdenes Oyu Tolgoi LLC;

-To take measures to improve control of the underground mining project through the improvement of governance of Oyu Tolgoi LLC, and the company will pay the related costs in accordance with the mutually agreed terms; establish an agreement on power supply from the energy grid of Mongolia; as well as to work together in improving the project's environment, society and governance.

The letter also reads that “the above decisions were difficult to make and represent our final offer. The investors are transferring significant value to Mongolia, which we believe will be the basis for a long-term, trusting partnership. By doing so, we believe that Parliament Resolution No. 92 of 2019 on ‘Ensuring interests of Mongolia in the exploitation of the Oyu Tolgoi gold-copper mine’ has been implemented.”

Rio Tinto also seeks to resolve arbitration disputes between the government and Oyu Tolgoi LLC by consensus within the working group.

“Our shared goal is to start a complex underground caving process at Oyu Tolgoi-known as undercutting- in January 2022. Thus, we would like to work together within the working group to determine the prerequisites for the start of underground caving process."

As 2021 draws to a close, cryptocurrencies are now just a stone’s throw away from becoming a fully valid part of mainstream finance, according to some analysts.

This year was marked by huge events for crypto: El Salvador’s adoption of bitcoin as legal tender, China’s major crackdown on crypto-mining, India’s threat to ban all private cryptocurrencies, big investors entering the crypto game, and Facebook going all-in with its metaverse. And, overall, it was a time of wild swings and record prices.

If countries take a hostile stance, adoption will be much slower, predicts Witek Radomski, co-founder of blockchain platform Enjin.

The price of ether – which is second only to bitcoin in terms of market capitalization – will rise at a much faster rate than its rival, due to the move to proof of stake, according to Tom Higgin, CEO at asset management platform Gold-I.

Initial game offerings will become popular, says Nick Saponaro, co-founder and CEO of decentralized payment ecosystem Divi Project, and larger organizations such as GameStop and Epic will begin making plays at some point next year.

Bitcoin will gain the upper hand over stocks in 2022, opines Mike McGlone, head crypto analyst at Bloomberg Intelligence.

A remote-first Fortune 500 company will declare its official headquarters to be on one of the competing metaverses, predicts Brandon Arvanaghi, CEO of crypto startup Meow.

And the metaverse will become the new interface via which people engage with the web and each other, says Justin Banon, co-founder of decentralized network Boson Protocol.

Hackers drain nearly $200 million from major crypto exchangeREAD

Most people will conduct their day-to-day jobs partially in the metaverse, according to Shane Molidor, chief revenue officer at digital asset financial platform AscendEx.

There will be a battle between the metaverse used by crypto-natives and those launched by gaming and corporate entities such as Meta, predicts Brock Pierce, chair of the Bitcoin Foundation.

Investors will start using bots to make purchases during non-fungible-token minting events, which may shut out less sophisticated users, opines Ethan McMahon, economist at blockchain data platform Chainalysis.

Crypto-economy market capitalization will rise from a peak of $3 trillion in 2021 to over $7.5 trillion, according to Rohit Talwar, CEO at insight and research business Fast Future, and at least 25 nations will be using a central bank digital currency by the end of 2022, either their own or one issued by another country, such as China’s digital yuan.

Banks will look to crypto for fraud trends, says Chris Stephens, head of fraud and security analytics at identification platform Callsign.

The world’s first billion-dollar hack is on the cards, as decentralized finance activity burgeons, according to Benjamin Whitby, who oversees regulatory affairs at cross-chain protocol Qredo.

Mongolia is recalling its diplomats in South Korea over a case of 13 year-old Mongolian girl assaulted and beaten by senior Korean students.

Minister of Foreign Affairs B.Battsetseg presented a proposal to the President on Friday (10 December) to recall Mrs. N.Erdenetuya, Ambassador of Mongolia to South Korea and Ts.Unurzaya, Chief of Consul in Busan for a responsibility of handling the case.

According to law, the President has authority of Ambassadors appointment and removal. Therefore, President U.Khurelsukh will decide on whether to recall N.Erdenetuya. Still, the final decision of N.Erdenetuya’s removal must be approved by parliament. However, the Foreign Minister has authority of recalling the Consul. Therefore, Ts.Unurzaya will be removed from the post of Chief of Consul in Busan.

N.Erdenetuya was appointed as an Ambassador of Mongolia to South Korea in May, 2020. She has 26 years of working experience in civil service- 23 years as a diplomat. Previously, B.Khurts, former Head of the General Intelligence Agency (GIA) was nominated for the post of Mongolian Ambassador to South Korea; however, declined by former President Kh.Battulga.

As for Ts.Unurzaya, she is a daughter of Sh.Tsogtoo, former judge of Mongolian Constitutional Court and close to former President Kh.Battulga.

-The bully case-

The four students living in Yangsan, South Gyeongsang Province, whose identities were withheld, have been accused of beating the 13-year-old girl for about six hours starting at midnight on 3 July, 2020. The victim was a middle school student who moved to Korea from Mongolia about 10 years ago.

They tied the victim’s hands and legs and punched her in the head and face multiple times, and wrote racial slurs on her forehead, according to Yangsan Police Station. The students filmed the act and later distributed the video among fellow students, offering to sell the footage for 5,000 won ($4), according to police.

The police said they have handed two students over to prosecutors after charging them with group assault, 28 October. The other two were sent to the juvenile department of Ulsan District Court, as minors aged 14 or younger cannot be held criminally responsible under current laws.

A public petition was posted on the Cheong Wa Dae website, calling for harsh punishment for the students and the disclosure of their identities.

Mongolian athlete G.Bolor-Erdene won the gold medal in men’s 65 kg at the World Para Taekwondo Championships taking place in Turkey.

By defeating his Italian competitor in the final round, G.Bolor-Erdene claimed his fifth World Champion title. The world championships participated by 250 athletes from 41 countries wrapped up on December 12.

ULAANBAATAR, Dec 13 (Reuters) - Anglo-Australian mining giant Rio Tinto (RIO.AX)(RIO.L) has agreed to write off Mongolia's outstanding $2.3 billion debt for its share in the massive Oyu Tolgoi copper-gold project, Prime Minister Oyun-Erdene Luvsannamsrai said on Monday.

Oyun-Erdene said his office had received a letter from Rio Tinto agreeing to write off the debt, conduct an independent audit into the financing of the project's underground expansion and improve governance.

"We have proposed that the benefits of Oyu Tolgoi be in the interests of the Mongolian people," Oyun-Erdene told a briefing.

He said Rio also agreed the much-delayed expanded underground section of the mine would be completed by 2023.

Oyu Tolgoi is Mongolia's biggest investment project but it has been subject to frequent disputes and delays, with Mongolian politicians repeatedly calling for the original investment agreement to be redrawn.

A Rio Tinto spokesman said in a statement the offer made to Mongolia "aims to reset the relationship and allow all parties to move forward together", without providing details of the debt writedown offer.

"The offer reflects months of discussion between Rio Tinto, TRQ (subsidiary Turquoise Hill Resources (TRQ.TO)) 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.”

Reporting by Anand Tumurtogoo; Additional reporting by Sonali Paul in Melbourne; Writing by David Stanway; Editing by Christopher Cushing and Lincoln Feast.

Rio Tinto has agreed to write off $2.3bn it lent to Mongolia to cover the government’s share of the development costs for the giant Oyu Tolgoi copper mine.

The debt write off is part of a wider offer that the FTSE 100 company hopes will bring an end to longstanding tensions that have blighted the project, which is running late and over budget.

As well as the debt write-off, Rio has offered to terminate the underground development plan, agreed to an independent audit of the project’s financing and will make an additional investment, according to a letter seen by the Financial Times. This should allow the next phase of the mine’s development to begin in January.

Once complete, Oyu Tolgoi will be one of the biggest copper mines in the world, producing almost 500,000 tonnes of the metal. Rio is developing the project through its subsidiary Turquoise Hill Resources.

In a tweet, Mongolia’s Prime Minister Oyun-Erdene Luvsannamsrai said a government working group had accepted the offer and there was now “opportunity for mutually beneficial co-operation. However, the deal will need to be ratified by parliament”.

In an statement, the company said: “Rio Tinto and Turquoise Hill Resources have made an offer to the Government of Mongolia which aims to reset the relationship and allow all parties to move forward together.”

“The offer reflects months of discussion between Rio Tinto, TRQ 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,” it added.

Just under a decade ago, I wrote a column about an extraordinary new initiative, courtesy of Fendi, called Pesce d’Aprile, in which a customer could travel to a crocodile farm in Singapore, select the reptile from which their handbag would be made and then follow its progress via an app. Billed as the fashion equivalent of “know your food,” it was the first of its kind.

It was also entirely made up (by me): an April Fool’s joke invented to highlight the lengths to which fashion brands would go to distinguish themselves — and the fact that, increasingly, customers were interested in the origin of their products.

Except now, finally, the joke’s on me.

Loro Piana, the luxury brand known for its plush, understated knits that look as if they have been woven from liquidized bank notes, has embarked on a program that will allow customers to trace every step of production of one of its baby cashmere sweaters from goat to store.

It may seem like a simple thing: How can a brand not know exactly where and how its products are made? Yet the fashion supply chain is so complicated, its many moving parts spread out over so many countries and processes, that for most of us the origin stories of our clothes are almost entirely opaque.

“We have a belief that companies know where things are coming from, and in actual fact many companies lost that ability quite a long time ago,” said Maxine Bédat, the founder of the New Standard Institute, a nonprofit founded to define and create a framework for fashion’s sustainability claims. “The more products you add to your offering, the more diffuse and complicated the manufacturing becomes, and as a result it is very rare today for fashion companies to both be able to trace their full supply chains and be willing to disclose them.”

Consider the fact that the average merino wool sweater will travel 18,000 miles over the course of its production before it reaches a store shelf, according to Bamford, the British farm-to-table luxury brand.

Tracing that journey is easier, of course, if a brand is small enough to do everything itself or if a new brand is built with transparency in mind. But few founders were thinking that way even a decade ago, and almost no brand owns every step of the process of creation, from farm to finished product.

For the consumer in search of a holiday present, that means it is extremely difficult to know, as you browse the shelves looking for the perfect chunky knit or comfortable wrap, whether what you are seeing has been made responsibly, with environmental and social factors in mind.

That’s why, two years ago, Loro Piana, which was bought by LVMH for $2.6 billion in 2013, decided to pin down its processes so that it can now include a garment tag telling potential buyers that “this knitwear has been coming from a bail that was taken in that specific region in that year or that month of that year,” said Fabio d’Angelantonio, the former Loro Piana chief executive (he was replaced in late October by Damien Bertrand). And that bail originated on the backs of that herd.

The project was introduced earlier this year with Loro Piana’s vicuña products and will be extended to include cashmere and baby cashmere, the company’s biggest sellers. Given that the average Loro Piana cashmere sweater will be touched by approximately 100 hands in at least three countries as it makes its way from Mongolia to Italy to its final store, and involve more than 13 different processes over a period of 18 months to two years, that was no small undertaking.

Arguably such traceability was possible only because the luxury brand has the … well, luxury, of knowing its herders — it has been sourcing, spinning, weaving and finishing cashmere since 1924 — and because its extremely well-heeled customers are willing to pay for the information. And Loro Piana is gambling that increasingly it will be part of the fashion value proposition. That each physical gift should also bring with it the gift of knowledge.

In place of trickle-down economics, think of it as trickle-down transparency. Here’s how it begins.

At the beginning of spring, cashmere collection begins in Inner Mongolia in northern China and in Mongolia. In many cases, the herders have worked with Loro Piana for generations. The process occurs only once a year.

The goats have nature to thank for their annual buzz-cut. Cashmere goats are double-coated animals, which means they produce two kinds of hair: external and underfleece. The underfleece protects goats from the extreme cold temperatures in the region and starts to grow in September and October, when temperatures begin to drop. By May, the underfleece has grown to its fullest potential and is ready to be collected by the herders. The goats are not losing much — the fleece would fall off naturally.

Fun fact: All cashmere is wool, but not all wool is cashmere. Wool is a catchall term used to describe the soft undercoat of some animals (sheep, alpaca, goats, etc.). Cashmere refers specifically to the highly prized fiber of cashmere and some other breeds of goats.”

Across the region, ranchers like Ha Si Ba Gen earn a living raising and herding goats. The country of Mongolia produces a third of the world’s cashmere, and the luxury fabric accounts for 40 percent of the country’s nonmineral exports.

Animal and labor conditions are audited by “accredited third parties,” a representative of Loro Piana told The Times. After all, as Mr. d’Angelantonio, the former chief executive of the company, said, it was in everyone’s best interest to maintain excellent conditions. “The wool of a happy sheep is a better wool than a very stressed sheep,” he said.

When the haircuts are over, herders typically sell the wool to a third-party collector, who will then sell the materials — a mix of cashmere wool from dozens, if not hundreds, of local farms — to various brands. In this case, the cashmere is delivered to Alashan Zuo Qi Dia Li Cashmere in Inner Mongolia, a third-party “cooperation” partner in the Loro Piana production chain since 2005. There the wool is cleaned and inspected.

Though Loro Piana had explored building its own facilities in Inner Mongolia, it has instead formed long-term relationships with local partners. A representative of the company explained that it has sought a production facility in China suited to its specific needs, but the difficulties of operating there as a foreign company have proved insurmountable. As a result, Alashan Zuo Qi Dia Li Cashmere plays a key role in the creation of Loro Piana garments, taking responsibility for the first round of cleaning before the wool even leaves the area.

From there, the cleaned cashmere is trucked to Beijing or Ulaanbaatar, the capital of Mongolia, for strenuous quality-control testing. Keen eyes check for the occasional dark hair hidden in the white wool. (These hairs cannot be dyed and are harder to spot and remove later on.) Then the bales of cashmere are transported to a laboratory in Roccapietra, Italy, (population: 646) for yet another round of quality control.

Next stop: the Loro Piana factory in Quarona, Italy, which was founded by the Loro Piana family in 1924. The lots (an industry measurement) of cashmere are transferred to a blending machine, which opens up the fibers and lays them flat for the first time. This process allows for easier manipulation.

After getting carded (disentangled and cleaned), the fibers are loaded into a spinning machine. Simply put, this is where the fibers become yarn and the yarn becomes fabric.

Now the yarn is ready to take on some color. Loro Piana uses exclusive formulations of dyes for its garments.

Actual garments are finally ready to be constructed, a process that is usually performed by state-of-the-art knitting machines. Once the garments are finished, they are inspected by expert eyes. Finally, they are packed up to be distributed to Loro Piana’s 178 physical stores, e-commerce channels and various retail partners.

The time span between collecting a baby goat’s underfleece and a sweater landing on a store shelf is up to two years. Officials at Loro Piana estimate that more than a hundred hands can play a role in the creation of one garment. A Loro Piana cashmere sweater typically starts at $1,000, and more complicated designs cost between $2,000 and $3,000. And the goats grow out their hair again.

 

The Ministry of Health reported today that 94 СOVID-19 infections and three deaths were recorded in the last 24 hours. This is the lowest daily number of cases recorded in Mongolia since March.

In detail, 75 cases were reported in Ulaanbaatar city, with 17 cases in 21 provinces and two imported cases.

As of today, the total number of confirmed COVID-19 cases in Mongolia stands at 386,635.

Of a total of 3168 patients are currently undergoing treatment at hospitals, there are 1202 patients in mild, 1560 in serious, 332 in critical, and 74 in very critical condition.

On December 10, the Presidium of the Citizens’ Representative Khural of the Capital City discussed the changes to be made to the organizational structure of khoroos in the capital city.

More specifically, a draft resolution on establishing 30 new khoroos in the districts of Bayangol, Bayanzurkh, and Chingeltei was introduced by First Deputy Governor in charge of development policy J.Sandagsuren.

Based on the suggestions received from the districts, Bayangol district will establish 9 new khoroos by dividing 1 of its current 25 khoroos, while Bayanzurkh district will establish 15 new khoroos by dividing 17 of its current 28 khoroos. As for Chingeltei district, there will be 5 new khoroos in addition to its current 19 khoroos. With these changes, the capital city will have 200 khoroos in total, he said.

“Through the establishment of new khoroos, the smallest unit of administration, there will be improvements in bringing public services to citizens urgently and making them more accessible. For starters, a total of MNT 12 billion is estimated to be necessary for the establishment of the 30 new khoroos,” said Deputy Governor J.Sandagsuren.

The draft resolution was supported by a majority of the Presidium members.

London (CNN Business)The economic recovery from the coronavirus has always been uneven, with different parts of the world bouncing back at different speeds.

But this divergence could be about to get worse, creating headaches for the policymakers who have to manage what happens next.

What's happening: The biggest central banks in the world will all make highly-anticipated announcements on policy this week. But unlike at the beginning of the pandemic, when their action to avert a global depression was highly synchronized, the responses to inflation and the Omicron variant are expected to vary widely.

Economists now believe the Federal Reserve will announce a faster rollback of its pandemic bond-buying program to combat higher prices. Consumer prices in the United States increased in November at the fastest rate in nearly 40 years.

The Fed doesn't appear deterred by concerns about the spread of the Omicron variant, since the United States has so far avoided rolling out fresh restrictions. Consumer spending still looks strong, and unemployment claims recently fell to their lowest level in 52 years.

"The activity story is still very good. The early evidence is Omicron isn't really having a major impact on consumer behavior," James Knightley, chief international economist at ING, told me.

In Europe, meanwhile, governments have quickly reimposed some restrictions. Germany has announced a nationwide lockdown for the unvaccinated, barring them from accessing all but the most essential businesses, while England is once again directing people to work from home if they can.

Even before the arrival of Omicron, the economic recovery in Europe was losing momentum due to supply chain woes and a high number of coronavirus cases. The UK economy grew just 0.1% in October.

That puts the Bank of England and the European Central Bank in a difficult spot as they also attempt to fight inflation. If they move too fast to withdraw support and try to control prices, they risk reversing hard-won gains in activity and jobs.

Knightley expects the Bank of England to refrain from raising interest rates this month, as had been previously expected. The ECB, he added, could announce a transition bond-buying program to avert a cliff-edge in March, when pandemic-era purchases are due to end.

Eye on China: China, meanwhile, isn't thinking about when to tighten policy at all, and is back in easing mode as its economy slows and real estate developers default on their debts. Last week, it announced it would cut the amount of money that banks have to keep in reserve for the second time this year, unleashing an extra $188 billion for business and household loans.

"The need is higher," said Jeffrey Sacks, head of investment strategy for Europe, the Middle East and Africa at Citi Private Bank. "The economic data over the early summer through to now has been weakening."

China's recovery started sooner than in Europe and the United States, so it wrapped up faster. The government's crackdown on excessive borrowing in the country's real estate sector has also contributed to the slowdown. But Beijing has to worry about high producer prices, too, Knightley noted.

Why it matters: In March 2020, it was clear what central banks had to do to avoid catastrophe. But reversing course now won't be easy. The task is made even harder by regional differences that can obscure the direction of travel.

"It's a very, very difficult path for central banks to tread right now," Knightley said. "You've got risks operating on both sides."

Glimmers of hope emerge in the supply chain nightmare

Epic port congestion is easing. Shipping prices are falling from sky-high levels. Deliveries are speeding up slightly.

More and more, there are signs that the supply chain mess is finally starting to get cleaned up, my CNN Business colleague Matt Egan reports.

That's not to say the supply chain nightmare is over. It's not. And the situation may not get anywhere near back to normal anytime soon.

Businesses are still grappling with a troubling shortage of truck drivers. Critical components, including computer chips, remain scarce. And the Omicron variant threatens to put renewed pressure on supply chains.

Still, there's evidence that bottlenecks are beginning to unclog. That's encouraging given that the unprecedented stress on supply chains has contributed significantly to historic levels of inflation in the United States.

"I'm increasingly confident that the worst appears to be over," said Matt Colyar, economist at Moody's Analytics. "There is data suggesting that things are improving. But there's still a ton of uncertainty."

Remember: Logistics networks came under enormous strain when the world economy shut down at the onset of Covid — and then rapidly reopened. Demand for goods skyrocketed and just-in-time supply chains buckled under the pressure. Coronavirus outbreaks and inconsistent health protocols around the world added to the mess.

But reason for optimism can be found in recent economic reports.

For instance, the backlog of orders index in the Institute for Supply Management's manufacturing survey fell to 61.9 in November, down from a record high of 70.6 in May. Backlogs are still growing, but at a slower pace. And supplier delivery rates appear to be improving, albeit from very poor levels.

The Dallas Federal Reserve Bank's manufacturing index showed the level of unfilled orders ticked lower in November and the amount of time to deliver goods fell.

"It is still going to take a long time for the supply chains across the country to be fully restored, but at least the first steps appear to be in place towards normalcy," Thomas Simons, economist at Jefferies, wrote in a recent note to clients.