Mongolia has increased its official gold purchases this year, buying a total of 11 metric tons so far, according to local media reports citing the country's central bank.

The average gold price was at around $58 per gram, the central bank said. This total is as of July.

The central bank added that buying gold helps Mongolia with economic stability.

Mongolia's buying comes at a time when gold prices are still coming off their August 2020 record highs. Year-to-date gold is down more than 9%.

The most recent selloff in gold, which began on Friday, was triggered by a stronger-than-expected U.S. employment report. The July gain of 943,000 positions pushed the U.S. dollar and the U.S. Treasury yields higher on speculation that the Federal Reserve could announce its tapering plans reasonably soon. This created a bearish environment for gold.

At the time of writing, December Comex gold futures were trading at $1,727.70, down 2.01% on the day, after dropping below $1,680 an ounce earlier in the session.

Central banks around the world have been stepping up their gold purchases this year, taking advantage of lower prices following stellar 2020 gains.

For example, the Brazilian central bank increased its precious metals holdings by more than 52% in June after buying an additional 41.8 metric tons.

Thailand also purchased 90.2 tons in April and May. Kazakhstan made headlines earlier this year after it bought 9.9 tons.

Serbia's central bank said this year that: "Long term, gold is the most significant guardian and guarantor of protection against inflationary and other forms of financial risks." The country is planning to boost holdings of the precious metal to 50 tons from 36.3 tons.

In a June report, the World Gold Council said that 21% of central banks expect to increase their gold reserves within the next year.

By Anna Golubova

For Kitco News

An independent investigation team concluded that the cost overrun and schedule delay in the underground expansion of Oyu Tolgoi project were not due to geotechnical conditions.

On August 9, the conclusion was presented in a report to the working group in charge of negotiating with Rio Tinto regarding Oyu Tolgoi.

About the report, Minister of Mining and Heavy Industry G.Yondon said, “Rio Tinto informed the government of Mongolia of the cost overrun and delay in the underground expansion in July 2019. To be specific, it said that, due to unexpected geotechnical and ground conditions, the project could experience a delay of up to 30 months and a cost overrun of USD 1.2-1.9 billion. However, independent experts concluded that the delay and cost overrun are not directly related to geotechnical issues,”

“We established an agreement with an expert group with 20-40 years of experience this March. The group’s report was reviewed and verified by experienced individuals who worked as project managers for Rio Tinto.”

Seoul (CNN Business)Samsung's vice chairman — and de facto leader — Lee Jae-yong is to be released on parole this week, South Korea's Justice Ministry said on Monday.

Lee, also known as Jay Y. Lee, was sentenced to two and a half years behind bars in January after the Seoul High Court found him guilty of embezzlement and bribery. He will now be released on August 13, the country's justice minister announced in a televised briefing.

Minister Park Beom-kye said that Lee is among 810 other prisoners who have been granted parole on the occasion of the country's Liberation Day, which marks the liberation of Korea from Japanese imperial rule in 1945. Last year, more than 600 prisoners were released on Liberation Day.

"In consideration of the overcrowded condition of correctional facilities which are vulnerable to infectious diseases and to help overcome our economic condition, the number of persons granted parole has been significantly increased this year compared to last year," Park said.

Samsung declined to comment on today's briefing.

Lee may not be able to return to work. He is subject to a five-year employment ban under South Korean law, and parolees are not permitted to take overseas business trips until their term is finished. Lee can apply to the Justice Ministry for an exception, but it's unclear if he has done so.

Lee was caught up in a massive influence-peddling scandal that brought down the government of former South Korean President Park Geun-hye. Park herself is spending some two decades in prison in connection with the case.

Lee had been sentenced to five years in prison in August 2017 on bribery and embezzlement charges but he walked free after less than a year when an appeals court threw out some of the charges and suspended the sentence.

However, Lee was sent back to prison in January after being sentenced to two and a half years in a retrial. His father Lee Kun-hee, the company's chairman, died last year after being in a coma since suffering a heart attack in 2014. The younger Lee had been operating as Samsung's de facto leader.

Lee is currently undergoing a separate trial over a controversial 2015 merger that helped him tighten control over the company.

Prosecutors said the merger of Samsung C&T and Cheil Industries was undertaken in a manner that allegedly benefited Lee and allowed him to gain a tighter grip on Samsung Electronics, the crown jewel of his family's sprawling conglomerate.

Global crude prices dropped nearly 2%, hitting more than two-week lows, amid rising concerns over new pandemic-related restrictions in China and a strengthening US dollar.

Brent crude futures for October delivery fell $2.25% to $69.11 per barrel by 06:58 GMT, after having dropped 6% last week, the biggest weekly loss in four months.

Meanwhile, US crude benchmark WTI declined by 2.3%, to $66.71 per barrel, following a 7% slump last week, the steepest weekly decline in nine months.

The drop reportedly comes amid new restrictions introduced by China, one of the world’s major oil consumers, due to rising Covid-19 cases.

“Concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate,” RBC analyst Gordon Ramsay told Reuters.

Moreover, the latest rally in the US dollar weighed on oil prices as well, as a stronger greenback makes oil more expensive for holders of other currencies.

The dollar hit a four-month high against the euro on a stronger-than-expected US jobs report published on Friday, which revived hopes that the Federal Reserve would move to tighten US monetary policy more quickly.

The working group in charge of implementing the parliamentary resolution No.92 dated November 21, 2019, titled ‘Ensuring the interests of Mongolia in the exploitation of the Oyu Tolgoi gold-copper mine’ held a press conference today in connection with the findings of the independent investigation on the cost overruns and schedule delays of the underground expansion of the Oyu Tolgoi project.

During the press conference, Minister of Justice and Internal Affairs and Head of the working group Kh.Nyambaatar said, “Initial cost estimates of the Oyu Tolgoi underground development plan were approved at USD 5.3 billion. Unfortunately, this cost was increased by USD 1.4 billion, reaching USD 6.75 billion, and the date when the first underground production to be achieved was extended by 22 months from the first estimation of January 2021. In connection with this, we had independent experts investigate the issue since March and received the final report today.

According to independent experts, it was found during the investigation that the cost overruns and schedules delay were not due to geotechnical conditions. However, Rio Tinto has repeatedly explained the significant increase in cost and delay were caused by the geotechnical conditions that had been worsened.

We have met today with Rio Tinto’s Country Director for Mongolia Kh.Amarjargal and other officials in connection with the findings of the independent experts and asked for an official explanation on the findings and also demanded the immediate start of the underground mining. The Government of Mongolia cannot approve the feasibility study for the underground mine. In other words, we are of the opinion that it is impossible to accept the cost overruns as we have received such a conclusion from the independent experts."

On 16 December 2020, Rio Tinto reported that the Oyu Tolgoi underground project is expected to have cost overruns of USD 1.45 billion and sustainable production from the underground operations will be delayed by 22 months compared to the initial plan of January 2021. Although Rio Tinto and Turquoise Hill Resources Limited explain that the cost overruns and schedule delays are caused by difficult ground conditions, there are various reports and allegations pointing to potential project mismanagement and procurement related issues. These allegations are addressed in the amended claim submitted by certain minority shareholders of Turquoise Hill Resources Limited in the class action against Rio Tinto and Turquoise Hill Resources Limited (including certain executive management members of such companies) filed in the New York court in March 2021.

Alibaba Group Holding Ltd. has fired a manager accused of rape, moving to contain the fallout after an employee’s account of her ordeal went viral on social media and ignited fierce debate about rampant sexism across China’s tech industry.

The Chinese internet giant didn’t identify the manager. Li Yonghe, appointed just last month to lead a newly created division overseeing much of Alibaba’s non-retail businesses from food delivery to travel, has resigned alongside his human resources chief for mishandling the incident. The sexual assault allegations, first reported by the employee on Aug. 2, have unearthed systemic challenges with the company’s mechanisms, Chief Executive Officer Daniel Zhang said in an internal memo seen by Bloomberg News.

The incident involved an external client and several executives during a night of heavy drinking in the country’s northeast. It highlighted pervasive mistreatment of female workers across companies in China, where the #MeToo movement has thus far failed to take off as widely as in Silicon Valley or elsewhere. Zhang, in a lengthy pre-dawn memo, described an outpouring of emotions on Alibaba’s intranet and vowed to step up protections for women across the company while addressing its failure to act.

On Monday, one of the top trending items with more than 800 million views on the Twitter-like Weibo service -- which is backed by Alibaba -- was an online declaration about 6,000 employees banding together to protest and overhaul “systemic inadequacies and a lack of protection for female employees.” The People’s Daily, a mouthpiece for the Communist Party, held up the incident as an example of why companies must pay greater attention to culture the larger they grow. In an online commentary, it warned that those who ignore their own people seldom create long-term value. Alibaba’s shares fell 2.5% in Hong Kong.

“Behind everyone’s deep concern about the incident was not just sympathy and care for the traumatized colleague but also tremendous sadness for the challenges in Alibaba’s culture,” wrote Zhang. The CEO issued an impassioned plea to “Aliren,” or Alibaba’s people, in his memo. “This incident is a humiliation for all Aliren. We must rebuild, and we must change.”

It’s unclear how Li’s departure will affect Alibaba’s business -- the so-called local services division was one of the corporation’s fastest-growing arms, tasked with competing with other on-demand giants like Meituan in nascent arenas such as groceries. Many of the comments over the weekend centered on Alibaba’s failure to act until the allegations went public. The scandal engulfed Alibaba just as it’s trying to move past a bruising months-long investigation by antitrust regulators into monopolistic behavior such as forced exclusivity, which helped kick off Beijing’s campaign against industries from ride-hailing to fintech and education.

Alibaba has become the highest-profile symbol of abuses regarded as prevalent throughout Chinese businesses and at tech firms, rooted in a hard-charging environment that often prioritizes profit and achievement over culture. The #MeToo movement first came to prominence there in 2018 when allegations against a professor at a Beijing university were published on social media. Since then, a number of allegations have been made against academics, environmentalists and journalists.

President Xi Jinping’s pledge to fight against workplace discrimination amid a shrinking workforce, even as the country cracks down on feminist activists and scrubs the web of sensitive #MeToo content. China bans job discrimination based on gender and stipulates the importance of equal opportunity. Yet a lack of enforcement means there’s few repercussions to discriminatory practices.

In one of the highest-profile incidents so far, JD.com Inc. founder Richard Liu was arrested in the U.S. in 2018 and accused of raping a 21-year-old female Chinese undergraduate, though prosecutors there subsequently decided not to press charges against the billionaire. More recently, former Korean boy band member Kris Wu has been detained after a university student accused him of pressuring young women into sex.

”Even if this doesn’t lead to serious consequences for Alibaba, I think people are learning from this kind of protesting experience,” said Pocket Sun, co-founder of SoGal Ventures, which invests in female entrepreneurs. “If this is not the real turning point, then the next one might be, or the one after the next might be, because people get less tolerant over time.”

But the country’s largest corporations have thus far been largely shielded from the upheaval of the #MeToo movement in the West, in part because of a lack of recourse for reporting incidents and longstanding sexist norms. Businesses also have tended to deal with gender discrimination away from the public spotlight. From hazing rituals during which women simulate sex acts to forced drinking and job ads that use women as bait to lure male workers, sexism remains endemic particularly in the tech industry.

Alibaba will now work with police on their investigation, based on an account the female employee posted online after she first reported the incident internally. The employee’s story only emerged after she began handing out flyers in the company cafeteria last week, hoping to be heard, a person familiar with the matter said. According to the woman, her boss came into her hotel room and raped her when she was inebriated after a night of drinking with clients in the city of Jinan.

The accused has confessed he performed intimate acts with the female employee and law enforcement officials will determine whether he broke the law, according to the memo. Separately, Jinan Hualian Supermarket -- whose employee was allegedly present at the dinner -- released a statement on its official WeChat account, saying the company will fully cooperate with police on a suspected assault case.

“I expect the biggest impact to be recruitment and talent management,” said Michael Norris, an analyst with Shanghai-based consultancy AgencyChina. “Alibaba’s growth required a strong talent pipeline across various business units. This incident may dissuade promising female graduates and highly-qualified female managers from joining Alibaba.”

What Bloomberg Intelligence Says

Alibaba may promote greater delegation among its managers to more effectively empower employees as it seeks to set new standards for behavior. The swift departure of employees who were involved or handled a sexual assault case raises the likelihood that Alibaba’s burgeoning workforce, which more than doubled in the year to March 31, will need to abide by stricter codes of ethics.

- Catherine Lim and Tiffany Tam, analysts

Aug. 9 (Xinhua) -- Air quality in the Mongolian capital city of Ulan Bator has been deteriorating dramatically due to smoke from massive wildfires raging in Russia's Siberia, authorities said on Monday.

"Air quality in the capital city is now reaching very unhealthy level. Today, the average density of PM 2.5 in the city stayed at 151.5 micrograms per cubic meter, which is 15 times above WHO exposure recommendation," the Mongolian national agency for meteorology and environment monitoring said in a statement.

The northern and central parts of Mongolia, including the capital city, have been covered with smoke since the middle of last week, which is from Russia's Siberian wildfires.

Aug. 9 (Xinhua) -- Mongolia registered 1,071 new COVID-19 cases over the past 24 hours, bringing the nationwide tally to 174,603, the country's health ministry said Monday.

A total of 5,605 samples were tested across the country in the past day, and the latest confirmed cases were locally transmitted, the ministry said in a statement.

Meanwhile, five new deaths were reported, taking the total death toll to 884, it said.

Mongolia began a nationwide COVID-19 vaccination campaign in late February, aiming to cover at least 60 percent of its 3.3-million population.

The Bank of Mongolia signed a Memorandum of Understanding with Swiss State Secretariat of Economic Affairs (SECO) concerning a technical assistance in selected areas of central bank operations.

The MoU enables the Bank of Mongolia to benefit from the Programme for Bilateral Assistance and Capacity Building for Central Banks (BCC), which is implemented by SECO. The Programme will contribute to strengthening capacities of Bank of Mongolia in monetary policy analysis and implementation, macroeconomic accounting and statistics, and bringing it up to the international benchmarks.

SECO is implementing BCC since 2013 in emerging countries to develop the analytical and technical capacities of central banks, e.g. in Albania, Azerbaijan, Bosnia and Herzegovina, Columbia, Morocco, Peru, Tunisia and Ukraine.

The MoU was signed by B. Lkhagvasuren, Governor of Bank of Mongolia, and Stefanie Burri (PhD), Head of Cooperation and Consular Section (on behalf of SECO).

Source: Swiss Cooperation in Mongolia

Per the air communications agreement between the Governments of Mongolia and the Republic of Korea, Mongolia-Korea air services consultations took place in Seoul, South Korea on August 2-3.

The consultative meeting was chaired by Head of the Department for Civil Aviation Policy and Implementation at the Ministry of Road and Transport Development Ch.Munkhtuya, and Head of the Aviation Policy Division at the Ministry of Land, Infrastructure, and Transport of the Republic of Korea Yoon Jin-hwan. The sides exchanged views on measures being taken by the two countries’ governments and emergency commissions, challenges being faced in correlation with infection prevention guidelines, and restoring regular scheduled flights.

From 2022, designated airlines of the two countries (MIAT Mongolian Airlines from the side of Mongolia, Korean Air and Asiana Airlines from the side of South Korea) will begin conducting flights with a carrying capacity of 5,000 passengers between the months of June and September.

In its framework, the side of Mongolia will conduct 20 flights, while the side of South Korea will conduct 18 flights.

As for the rest of the year, the sides agreed to keep the current number of scheduled flights with a total carrying capacity of 2,500 passengers.

As flights are currently conducted to the cities of Seoul and Busan, the side of Mongolia has put forth a request to add the city of Murun in Khuvsgul aimag to the destinations in Mongolia. It was agreed to carry out a study on this matter, and hold a further discussion at the next meeting.

In connection with the new international airport being put into operation in Khushig Valley, they discussed having an operational safety inspection conducted at the airport by the South Korean ministry, and came to the decision to carry out the inspection in the near future.

The decision regarding the matter of restoring scheduled flights will be made based on the results of the operational safety inspection as well as the pandemic situation in the two countries.