ULAANBAATAR, April 21 (Reuters) - Mongolia’s giant Tavan Tolgoi coal mine is aiming to raise 2 trillion tugriks ($700 million) through a bond issue as it tries to build infrastructure needed to replace Australia as one of China’s top coal suppliers, the head of the project said.

Gankhuyag Battulga, chief executive of the state-owned Erdenes Tavan Tolgoi JSC, said Mongolia needs to invest in railways to take advantage of simmering tensions between Beijing and Canberra, which have reduced coal shipments to zero since December.

“The Chinese government introduced a strict limit on Australian coal and this provides Mongolian coal exporters a unique opportunity to boost market share,” he told Reuters, adding that market conditions should shift in favour of Mongolia.

Tavan Tolgoi, located around 240 kilometres from the Chinese border, is one of the world’s largest coal deposits, but its development has been stymied by limited delivery capacity and longstanding financing troubles.

Part of the project was put up for tender in 2011 but the winning bid was annulled after Japan and South Korea complained the process was unfair. Mongolia has also tried to list Tavan Tolgoi on global stock exchanges.

“Underwriters warned us that there is a risk of not reaching our goal with failing coal demand and (an) uncertain world financial market,” Gankhuyag said.

The first tranche of bonds was offered for sale in late March, with an interest rate of 10% for local currency and 6.8% for U.S. dollars. It raised around $200 million.

The bonds are due to mature in two years. The underwriters were BDSec JSC and the Mongolian International Capital Corporation, two local investment banks.

Tavan Tolgoi will require $3.4 billion in investment over the 2021-2025 period, and 70% of that could be funded from the company’s own cashflow, Gankhuyag said.

The company is also constructing water pipelines, a coal washing facility and a 450-megawatt power plant that will supply electricity to Rio Tinto’s giant Oyu Tolgoi copper project.

It has become increasingly difficult to finance coal projects as banks come under pressure to divest from fossil fuels, a major source of climate-warming greenhouse gas.

Gankhuyag said Tavan Tolgoi saw the shift towards clean energy “not as a difficulty but as an opportunity”. The company will focus more on selling gas and electricity in future, he added.

The second tranche of bonds is due to go up for sale in the third quarter, and Gankhuyag said international investors were welcome.

“We are working hard to make our bond available both on local and international stock exchanges,” he said. (Reporting by Anand Turmurtogoo; Writing by David Stanway; editing by Barbara Lewis)

Our Standards: The Thomson Reuters Trust Principles.

Prime Minister of Mongolia L.Oyun-Erdene delivered a speech via video at the opening ceremony of the Boao Forum for Asia Annual Conference 2021, which took place on April 20.

This year's conference, attended by more than 2,600 guests from over 60 countries and regions, is themed ‘A World in Change: Join Hands to Strengthen Global Governance and Advance Belt and Road Cooperation.’

In his speech, PM L.Oyun-Erdene highlighted that the Boao Forum is becoming an important dialogue platform that integrates multi-partite cooperation and efforts for ensuring regional sustainable economic development.

While congratulating the People’s Republic of China for its realization of goal to reduce poverty, which is outlined in the UN 2030 Agenda for Sustainable Development, ten years ago, the PM underlined the importance of achieving economic growth sustainably, diversifying economy and making equal wealth distribution to end poverty.

Citing that the pandemic reminds us of how countries being deeply interrelated and the significance of mutual actions more than before, the PM presented Government’s ongoing policies and actions for its fight against the pandemic.

The PM also remarked that Mongolia would continue its policy to develop mutually beneficial cooperation and to take part in regional political and economic activities actively within the country’s priority directions including mining production, agriculture, energy, information technology, tourism, transport and logistics that are stated in Mongolia’s Vision 2050 long-term development policy.

The Forum is committed to promoting regional economic integration and bringing Asian countries even closer to their development goals. Initiated in 1998 by Fidel V. Ramos, former President of the Philippines, Bob Hawke, former Prime Minister of Australia, and Morihiro Hosokawa, former Prime Minister of Japan, the Boao Forum for Asia was formally inaugurated in February 2001.

Within the framework of the 70th anniversary of diplomatic relations between Mongolia and China, Boao Forum for Asia Ulaanbaatar Conference was held in Mongolia in 2019 by the Ministry of Foreign Affairs of Mongolia in partnership with the Boao Forum for Asia.

Mongolia has been ranked 68th out of 180 countries in 2021 World Press Freedom Index released by Reporters Without Borders.

The report told that the overall environment for the media has improved in Mongolia in recent years, especially as a result of the state media’s transformation from government mouthpieces into public services. But media ownership is very concentrated and most media are affiliated to political parties, which curtails the emergence of independent media. Whether state or privately-owned, the media are under pressure from politicians and their ability to act as watchdogs is limited by the government’s lack of transparency and susceptibility to criticism, and by still very imperfect media legislation.

Norway is ranked first in the Index for the fifth year running even though its media have complained of a lack of access to state-held information about the pandemic. Finland maintained its position in second place while Sweden (up 1 at 3rd) recovered its third place ranking, which it had yielded to Denmark (down 1 at 4th) last year.

This year’s Index, which evaluates the press freedom situation in 180 countries and territories annually, shows that journalism, which is arguably the best vaccine against the virus of disinformation, is totally blocked or seriously impeded in 73 countries and constrained in 59 others, which together represent 73% of the countries evaluated. These countries are classified as having “very bad,” “bad” or “problematic” environments for press freedom.

The Index data reflect a dramatic deterioration in people's access to information and an increase in obstacles to news coverage. The coronavirus pandemic has been used as grounds to block journalists’ access to information sources and reporting in the field. The data shows that journalists are finding it increasingly hard to investigate and report sensitive stories, especially in Asia, the Middle East and Europe.

source: www.rfs.org

Since the beginning of the coronavirus pandemic, a team of Mongolian construction workers have been trapped in the Pacific on the US territory of Guam. The Mongolians have been working for Imperial Pacific International (IPI), which is part of a Chinese investment holding company specialising on building casinos. The following is US coverage of the case:

Attorney Michael Dotts told the federal court that progress has been made in repatriating Imperial Pacific International’s Mongolian construction workers. He said IPI, which he represents, is hopeful that the employees can return to their home country in early May.

Construction work at the IPI casino-resort site remains suspended as ordered by the court, Dotts added.

In IPI’s 14th status report filed with the District Court for the NMI on Monday, Dotts said, “IPI employee housing still has power. Food services have continued without interruption for all IPI H-2B workers.” IPI’s next payday (payroll 9) is April 23, he added.

Dotts also informed the court that the Bank of Guam has requested until April 30 to produce documents sought by a subpoena served to BOG for copies of cancelled checks issued by IPI to its employees.

This is in relation to the recently approved amended consent judgment between IPI and the U.S. Department of Labour to assure that checks to IPI’s employees have cleared.

Iron ore prices jumped more than 4% on Tuesday, extending gains spurred by improved steel profit margins in China and disappointing output figures from Rio Tinto and Vale.

According to Fastmarkets MB, Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $189.61 a tonne on Tuesday, up 4.29% from the previous day – the highest level since 2011.

September iron ore on China’s Dalian Commodity Exchange ended the daytime trading session 3.6% higher at 1,100 yuan ($169.28) a tonne, following news that China’s crude steel production jumped 19% last month from a year earlier to near a record.

The nation’s output of the alloy is booming at the same time as a pollution crackdown has lifted prices and benefited profit margins at mills.

Daniel Hynes, senior commodities strategist, ANZ Banking Group

“Incredibly healthy Chinese steel margins have been the real driving force behind iron ore’s move higher over the past week,” managing director at Navigate Commodities in Singapore Atilla Widnell told Reuters.

Rio Tinto’s iron ore output in the March quarter dropped 2% on an annual basis, while production at Vale fell 19.5% from the previous quarter.

BHP Group Ltd on Wednesday reported a near 2% dip in third-quarter iron ore production but said full-year output is expected to be at the upper end of its forecast.

“With the market relatively tight at the moment, it will certainly see any failure to meet current guidelines as relatively positive for the price,” Daniel Hynes, senior commodities strategist at ANZ Banking Group told Bloomberg.

Vale and Rio both maintained their forecasts for full-year production, though a slower-than-expected recovery at Vale could see the market reset its expectations, he said.

Rio cautioned that its guidance for the annual output of up to 340 million tonnes was subject to logistical risks associated with bringing 90 million tonnes of replacement mine capacity on stream. It also said that Tropical Cyclone Seroja had impacted its Pilbara mine and port operations in April.

It was a “mediocre quarter” for Rio, Tyler Broda, mining analyst at RBC Capital Markets, said in a note. Quarterly production was 6% less than the bank’s estimate.

“Not all that much is going in the right direction from a bottom-up basis for Rio Tinto as they continue to tackle the various challenges at their operations and projects, but main commodities iron ore and aluminum are both benefiting from the China decarbonisation theme,” Broda said.

The iron ore market has kept a wary eye on the still-tight global supply in the wake of a Vale tailings dam disaster in 2019 that had prompted mine closures for safety checks in Brazil.

However, real-time shipping data showed an improvement in cargo volumes from the world’s top suppliers. Iron ore shipments by Australia and Brazil recovered last week after two weeks of declines, according to Mysteel consultancy.

The short-term outlook for iron ore prices remained strong, ANZ’s Hynes said, with Chinese steel mills content to accept current high prices for their main feedstock while their margins were so strong. However, he added the cost of ore was now well above fair value, with the risk of a pullback later in the year if Beijing’s plans to curb steel production to control greenhouse gas emissions start to impact demand.

“If we saw a 1% fall in Chinese steel production that would potentially wipe out about 15-20 million tonnes of iron ore,” said Hynes.

(With files from Reuters and Bloomberg)

London (CNN Business)For decades, crude oil has been at the center of global commodities markets. Demand has served as a crucial metric of economic health, and price spikes have had major ramifications for gas-guzzling consumers.

But as countries around the world try to combat the climate crisis, oil could take a backseat, while metals like copper and lithium gain prominence.

"The critical role copper will play in achieving the Paris climate goals cannot be overstated," Goldman Sachs analysts said in a recent research note titled "Copper is the new oil."

'Dire warning' for the planet: Coal is powering the economic recovery

'Dire warning' for the planet: Coal is powering the economic recovery

Setting the scene: Copper is an essential component of systems that allow wind, solar and geothermal energy to be tapped and transmitted for applications like heating homes, the analysts noted.

And the market already looks tight. Copper prices have rallied 80% over the past 12 months, and supply is constrained as demand skyrockets. It takes two to three years to extend an existing mine, and as many as eight years to establish a new project, according to Goldman Sachs.

That could set up the price of copper to jump from current prices of more than $9,000 per tonne to $15,000 per tonne by 2025, per the bank's estimates.

There's also a growing focus on lithium, a key component for batteries in electric cars. In a recent note, analysts at Macquarie Research predicted that demand for electric vehicles could trigger "material shortages" of the metal from 2025.

These constraints are putting lithium miners in the spotlight. On Monday, Australia's Orocobre and Galaxy announced a $3.1 billion merger that would create one of the biggest lithium companies in the world.

Why it matters: Global carbon dioxide emissions are set to surge dangerously this year as the global economy undergoes a huge recovery, according to a report published Tuesday by the International Energy Agency.

The Paris-based group estimates that carbon emissions from energy use are on track to spike by 1.5 billion tonnes in 2021, as heavy coal consumption in Asia, and in China in particular, outweighs rapid growth in renewable sources. That would be the second largest annual increase in energy-related emissions in history.

"This is a dire warning that the economic recovery from the Covid crisis is currently anything but sustainable for our climate," Executive Director Fatih Birol said in a statement.

Watch this space: The IEA is sounding the alarm before 40 world leaders come together later this week for a two-day virtual summit on the climate crisis convened by President Joe Biden. Birol called it a "critical moment to commit to clear and immediate action."

Political shenanigans ahead of a June presidential election in Mongolia have taken a new turn by shifting the battle toward outlawing entire parties (the ruling party no less) and by alleging military connections.

On April 18, President Battulga Khaltmaa issued a decree to dissolve the Mongolian People’s Party (MPP). The MPP currently holds a parliamentary supermajority and successfully amended the Constitution in 2019 to significantly check presidential powers. The presidential decree included specific accusations against Khurelsukh Ukhnaa, whom it is widely believed will be the MPP candidate for the imminent presidential elections. Battulga belongs to the Democratic Party, the main rival to the MPP.

The text appeared on Battulga’s presidential website, with an embedded YouTube video of Battulga presenting the order in front of the white yak-tail standards symbolizing state authority that stand in the heart of the Government Building on Sukhbaatar Square. The Governing Committee of the MPP held a meeting and responded with a video on Facebook Live, featuring eight MPP members, seven of whom are parliamentarians, and the secretary of the Governing Committee, standing in front of a staircase in what appears to be the MPP headquarters building adjacent to the Government Building and Sukhbaatar Square.

In other words, the matter does not appear to be settled, and the struggle has only intensified. The MPP Governing Committee also stated that Battulga’s decree will be discussed in the relevant Standing Committees of parliament, news.mn reports.

Battulga’s move follows the decision of the Constitutional Court on April 16 that countered his claims that he should be able to run in the upcoming presidential elections of June 2021, despite a constitutional amendment in effect stating that presidents may hold only one term. The State Great Khural, Mongolia’s parliament, has not yet accepted the decision officially. There has been some commentary that to accept the decision would mean that the parliament would be accepting that it had acted unconstitutionally when making previous changes to the Law on Presidential Elections.

Candidates for president are to be named in early May by the parties represented in parliament and the election is to be held on June 9.

While some of these statements may be dismissed as an early start to the presidential campaign, the frequent reference to the constitutionality of various measures, in addition to mutual complaints that political opponents are threatening Mongolia’s national security, raises some fears about a more general threat to democracy.

Perhaps most alarmingly, both sides have accused the other of improper relations with the military. Battulga characterizes certain reforms by Khurelsukh (the only place in the text where the former prime minister is actually named) as “militarization” of the party through coordination between governors’ offices, local party organizations, and local military units. Battulga states that “this is also a cause of suspicion that the Party is at risk of executing military actions.” Tweets are also resurfacing claims by MP Enkh-Amgalan, made during a Parliamentary session in 2018, that Khurelsukh had gathered “around 300 military officers.”

The MPP hit back with similar allegations. According to news.mn, at the press conference at which the MPP Governing Committee statement was presented, MP Ayursaikhan stated that “Reportedly, the Mongolian president, after making his statement, visited the General Staff of the Armed Forces.”

In addition to these accusations of improper attempts to use the military in political maneuvering, the two statements each accuse the “other side” of unconstitutional and illegal actions, including undermining national unity and security. Battulga’s decree accuses the MPP of violating multiple articles of the Mongolian Constitution, the Law on Political Parties, and the National Security Concept. He alleged that the National Security Council is captured by the MPP, and that the Constitutional Court is “unworthy of the people’s confidence and recognition.”

Meanwhile, MP and former Minister of Finance Ch. Khurelbaatar stated that more than a dozen laws had been violated by Battulga’s decree. The written statement of the MPP Governing Council names many of the same laws as Battulga’s statement, and states that Battulga’s statement is an “act by which the President Kh. Battulga abuses his legal authority, infringes on the right of citizens to freedom of association, affects the independence of the judiciary, and undermines the values of democracy for personal gain.”

While Battulga’s statement charges the MPP with splitting up his own Democratic Party through manipulation of government agencies, the MPP statement calls on “all political parties to unite against the crime of attempting to overthrow the democratic system of parliament, seize state power by unconstitutional means and establish a dictatorship by dissolving any political party.”

Social Media Broadcasts and Public Response

Following the decision by the Constitutional Court, Battulga’s declaration may appear to many as a last-gasp effort to fight for his political life. However, he has chosen to do so by pointing to the power of the MPP, something that speaks to his readiness to play to popular sentiments. Many voters appear to be expressing concern about the possibility of an MPP president at a time when the Mongolian parliament is also dominated by the MPP.

The president’s live broadcast (on his Facebook page) on the decree took place at 12:16 a.m. on April 19 and has 1,200 shares and 1,500 comments at the time of writing. The broadcast on Facebook Live by livetv.mn of Battulga’s decree has 547,000 views, 23,000 “likes,” and 10,000 shares. The reaction varied, from many allying with the president to many criticizing him for dividing the country when he should be uniting it. The MPP Governing Council’s presentation of their statement (also live broadcast) similarly instigated public frustration. Although the event unfolded during the night hours in Mongolia, politicians have been criticized for showing up in mass when their power is on the line while remaining silent about numerous issues of social injustice.

Notably, there has been very little social media commentary by professional analysts that one would expect to see speaking about the Constitutional Court decision, and almost none about the president’s decree and the MPP’s response. The MPP Governing Committee statement also closes with: “We call on all our citizens not to fall prey to any illegal, provocative and organized activities at a critical time when we Mongolians are all together fighting the pandemic.” Battulga’s statement alleged that the COVID-19 pandemic had been repeatedly politicized.

The mention of COVID-19 measures in both statements is a reminder not only that Khurelsukh’s government stepped down in the wake of mass protest against its COVID-19 response in January, but also that the COVID-19 emergency in Mongolia continues to be dire. The pandemic is the context for rampant expressions of political dissatisfaction on the part of Mongolians. In addition to the belief that Khurelsukh “resigned” so that he would be free to run for president, in recent days many Mongolians have been expressing the sentiment that the Constitutional Court rulings, and associated parliamentary measures and presidential vetoes, on Battulga’s eligibility to run for president are a distraction from the worsening COVID-19 emergency in the country.

1,169 people were tested positive for coronavirus after tests were carried out at 23 laboratories nationwide in the past 24 hours.

1,039 of the newly detected cases were reported in Ulaanbaatar city, 129 in rural areas and one hospital-acquired case was recorded.

Mongolia now has 25,364 confirmed cases of COVID-19. In the last 24 hours, 486 people have been discharged from hospital, making the number of recoveries 13,346.

Furthermore, five people have died from coronavirus. As of today, 3,658 people are undergoing treatment, and of whom 58 are in very critical health condition.

London (CNN Business)Global carbon dioxide emissions are set to surge dangerously this year as the global economy undergoes a huge recovery.

In a new report, the International Energy Agency estimates that carbon emissions from energy use are on track to spike by 1.5 billion tonnes in 2021, as heavy coal consumption in Asia, and in China in particular, outweighs rapid growth in renewable sources. That would be the second largest annual increase in energy-related emissions in history.

"This is a dire warning that the economic recovery from the Covid crisis is currently anything but sustainable for our climate," Executive Director Fatih Birol said in a statement. "Unless governments around the world move rapidly to start cutting emissions, we are likely to face an even worse situation in 2022."

The Paris-based group is sounding the alarm before 40 world leaders come together later this week for a two-day summit on the climate crisis convened by President Joe Biden. Birol called it a "critical moment to commit to clear and immediate action."

As countries around the world locked down last year and people were instructed to stay at home to limit Covid-19 infections, emissions fell dramatically.

But any climate benefit from the pandemic looks poised to be short-lived. The IEA estimates that global energy demand will rise by 4.6% in 2021 and exceed 2019 levels, fed by rising energy use in developing economies and emerging markets.

Energy-related emissions are expected to end the year just below where they stood in 2019, reversing 80% of the decline seen in 2020.

A resurgence in the use of coal is of particular concern, with demand expected to approach its 2014 peak this year.

China is expected to account for 50% of global demand growth for coal. Use in the United States and Europe is also rising but is expected to stay "well below pre-crisis levels."

Earlier this week, United Nations Secretary-General António Guterres called for developed countries to phase out the use of coal by 2030, and for an end to the construction of new coal-fired power plants.

Electricity demand, meanwhile, is projected to see its fastest growth in more than a decade.

But there's some good news: More than half of the increase in global electricity supply will come from renewable sources in 2021, driven in part by growing solar and wind energy output from China.

The IEA's estimates are subject to "major uncertainty" given the lack of clarity on the trajectory of Covid-19 infections and vaccinations. If travel recovers sooner than expected, for example, energy demand will increase even further.

Turquoise Hill Resources Ltd. (“Turquoise Hill” or the “Company”) today announced first quarter

2021 production for Oyu Tolgoi LLC (“Oyu Tolgoi”) and provided an update on the Oyu Tolgoi mine.

Q1 2021 highlights

 In Q1 2021, the mining of Phase 4b and Phase 6b moved deeper into the higher grade ore

zone, resulting in a planned increase in head grades:

o Copper production of 45,449 tonnes, an increase of 29% vs Q1 2020 and of 9% vs

Q4 2020; and

o Gold production of 145,656 ounces, an increase of 457% vs Q1 2020 and of 66% vs

Q4 2020

 Q1 2021 mill throughput of 9.81 million tonnes was 10% lower vs Q1 2020 due to overall

harder ore. Mill throughput was 2% higher than Q4 2020 due to the impact of scheduled mill

maintenance in Q4 2020.

 Access to higher copper and gold grades in Q1 2021 is expected to continue through the

remainder of the year.

Force Majeure

On March 30, 2021, Oyu Tolgoi declared force majeure in connection with customer contracts for

concentrate. Shipments of concentrate to its Chinese customers were suspended due to COVID-19

health and safety precautions related to Chinese-Mongolian border crossings. Oyu Tolgoi partially

resumed its cross-border concentrate shipments into China on April 15, 2021, and is evaluating

multiple contingencies to address the force majeure situation, including an alternative shipping route

via Ulaanbaatar.

COVID-19 Update

Following the previously announced two confirmed cases of COVID-19 at site and a corresponding

halt to underground work in March 2021, Oyu Tolgoi has carefully managed the situation, including

through widespread testing and implementation of a quarantine period.

Accordingly, underground work has progressively resumed and continued to ramp-up as personnel

return to site following the quarantine period and resumption of flights to site.

The COVID-19 situation in Mongolia remains fragile and subject to rapid change. Oyu Tolgoi is

constantly adapting to the changing circumstances to prioritize the health and safety of its

employees. The Company continues to work with Oyu Tolgoi and Rio Tinto to monitor closely any

impacts of this ever-changing situation on current operations and the underground development.

Negotiations with the Government of Mongolia

Turquoise Hill and Rio Tinto have been in Ulaanbaatar since March to discuss with the Government

of Mongolia a path forward to address outstanding issues that the Government of Mongolia has with

respect to the Oyu Tolgoi underground development project including in relation to Parliamentary

Resolution 92. Turquoise Hill remains committed to its presence in Mongolia and, in all discussions

with Rio Tinto and the Government of Mongolia, is focused on maximizing value for all stakeholders

including finding solutions that benefit the people of Mongolia in a meaningful way.

Underground Development

Oyu Tolgoi is progressing as planned in relation to the technical criteria for commencement of the

undercut. Regulatory approvals by the Government of Mongolia are still pending and are critical

elements to proceed with the decision to commence the undercut. The Company will update the

market on the status of the regulatory approvals and the undercut decision in the coming weeks.

Oyu Tolgoi Tax Assessment

In February 2021, Oyu Tolgoi received notices of payment totalling $230 million relating to amounts

disputed under an audit on taxes imposed and paid by Oyu Tolgoi between 2016 and 2018.

In March 2021, Oyu Tolgoi received notices of payment totalling $126 million relating to amounts

disputed under an audit on taxes imposed and paid by Oyu Tolgoi between 2013 and 2015.

Under the applicable Mongolian tax law, the amounts were due and paid by Oyu Tolgoi.

Notwithstanding, Oyu Tolgoi continues to dispute the amounts through a formal international

arbitration proceeding and the Company remains of the opinion that Oyu Tolgoi has paid all taxes

and charges required.