Ulaanbaatar/MONTSAME/ Interview with General Director of Erdenet Mining Corporation (EMC) state- owned enterprise that makes substantial contributions to the growth of Mongolian economy, Honored Industrial Worker of Mongolia, Doctor of Technical Sciences Kh.Badamsuren.

EMC HAS CONTRIBUTED MNT 800 BILLION TO STATE AND LOCAL BUDGETS IN THE FIRST 11 MONTHS OF 2020

-First of all, we would like to present a detailed introduction of EMC to our readers.

-In1973, a Mongolia-Soviet Intergovernmental Agreement was signed to establish the company as a joint venture with the Soviet Union providing Mongolia’s 50 percent share of the investment as a loan in addition to investing its own share. You know verywell about the resettlement of that loan known as the great debt.

In late 1980s, when I was working at Bor-Undur factory, I initiated and organized an expert roundtable of Ministry authorities, directors of all mining enterprises, engineers, and scientists in the field at Bor-Undur during the celebration of the 10th anniversary of the factory. The roundtable discussed several issues including increasing Mongolia’s stakes in Mongolia-Soviet joint ventures to 51 percent, and having the ventures pay royalties and subsoil taxes to Mongolia, and reached agreement in principle. The proposals were submitted to the government and accordingly, the 1991 agreement was established. Mongolia dealt with the issues at the right time. This is how Mongolia’s stakes in Mongolrostsvetmet and Erdenet joint ventures increased to 51 percent thanks to the efforts of many with great devotion to their home country, Mongolia.

Erdenet Mining Corporation that started out as a joint venture with a processing capacity of 4 million tons of ore has now become a state-owned enterprise capable of processing 32 million tons of ore. In the meantime, the company operated as a joint venture for 38 years and with public and private sector involvement for 2 years. In March 2019, it becamea 100 percent state owned enterprise.

The Government of Mongolia put special emphasis on the development of the company for the first time in the last more than 20 years with the approval of the General Guidelines for the Development of Erdenet Mining Corporation SOE until 2031 and the Government approved the guidelines with its Resolution No. 224 of 2019. The Government Agency for Policy Coordination on State Property approved the General Guidelines with the Resolution No. 252 of 2019. The approved General Guidelines were incorporated into five-year plans and are now reflected in annual business plans of the enterprise. EMC now has achieved and accomplished greater than ever before through uninterrupted normal operations thanks to the government’s policy and decisions.

-The shareholding of EMC is still a hot topic in politics. You worked with both the Government and the 49 percent shareholder. A few months after Mongolian Copper Corporation acquired the 49 percent shareholding from Russia in 2016, in December 2016, you were appointed to EMC. How was the situation when you assumed office? What condition was the company in? How was it before?Whataccomplishmentswere made during your term and what are the improvements?

-To be honest, I faced a difficult transitional period of challenges. I started my work by getting acquainted with the company’s activities and staff including the engineering and technical professionals.

Firstly, I accelerated the development of the General Guidelines for the Development of EMC until 2031, listened to the employees’ views on the definition of the company’s vision, mission, and values, set out goals to strengthen corporate governance, and adoptedacorporatesustainabilitypolicy with 5 key goals. EMC has the vision ‘to be a company of world standard and pride of Mongolia’ and mission ‘to follow sustainable development and responsible mining and create national wealth’. I am directing the company with these in mind.

Secondly, we conducted extensive reserve estimates and geological explorations.

-When you announced you will secure 60 years of further operation, I wrote ‘Is it Badamsuren’s romanticism, or...’. The factory appeared to be an old one running out of its reserves at the time.

-Since 2017, we have spent around MNT 27 million on geological explorations. As a result, we found out there are more ore reserves in the deeper section of the deposit and pinpointed locations of several potential sites. Moreover, we have finished confirming geological reserves of Erdenetiin-Ovoo deposit in compliance with the international JORC standard. This makes future major projects possible, but also raises the company’s value and provides assurance to foreign investors. Thanks to these efforts, theErdenet factory’s life has been prolonged by over 20 years, ensuring more than 60 years offurther operation. The assessment was made based on expert studies and calculations. I would like to finish my answer to the previous question.

Thirdly, Erdenet factory was equipped with the most advanced equipment and technologies of the time when it was first established. The main problems were the need to upgrade up to 80 percent of the main equipment that had aged and the expired service life of the engineering facilities.

Therefore, we are extensively upgrading the factory. Up to 25 percent of the factory equipment has been upgraded with investments totaling MNT 1.2 trillion between 2017 and 2020. This improved the reliability of the factory equipment and ensured normal operation of the factory.

Fourthly, procurement activitiesthat had been carried out separately were integrated, ensuring transparency, and have been digitized since 2019, and moved into single window system in accordance with relevant laws and regulations. While operating in a special regime with procurement activities made transparent and equal competition opportunities provided, we saved a total of MNT 140 billion–MNT 65.8 billion in 2019 and MNT 74.2 billion in the first 9 months of 2020.

Fifthly, the salary and bonus policy has been revised, and since 2017, miner’s salary and bonus have been gradually increased by 55 percent. In addition, the additional pension for the retired has been increased by 1.5-2.1 times. Within the approved budget and plan, EMC provides 24 types of assistance, such as medical treatment for its employees, financial support for housing, tuition fees, pensions for the retired, and allowances for mothers caring for their children.

In conclusion, I would like to say that as a result of the works done in the recent years, we have been able to get rid of improper management in human resources, and procurement through fundamental reforms.

We have announced 2020 as the “Year of Science-Based Intensive Industrial Development” and have begun to implement large-scale projects with an investment policy to ensure continuous and reliable production and increase efficiency. By the expected performance of 2020, the production and economic targets were fully met, the production plan was fulfilled by 100.3-119.0 percent, the revenue plan was fulfilled by 110 percent, the expenses were reduced by MNT 33 billion, and the net profit plan is to be exceeded. As of the first 11 months of 2020, MNT 804 billion was contributed in the state and local budgets.

-During your tenure, Erdenet has set historical records in production and finance. Is it difficult to set a new record in industry, as it is not easy to set a new record in a big sport? Do you have an ambition to improve your achievements?

-Of course. The mining and geological conditions of the Erdenetiin-Ovoo deposit are deteriorating, the copper content in the ore is declining, and the hardness of the ore is increasing. These are natural factors that directly affect the decline in production and increase costs. All of this must be overcome through good governance, good management, engineering skills, sound solutions, and the efforts of the mining community. That's how we can improve our past achievements. For me, it's not just about living in the present, it's about moving forward to a bright future.

Within the framework of implementing the Erdenet Mining Corporation's development guideline until 2031, firstly, main production expansion and modernization projects, secondly,infrastructure projects, thirdly, social development projects, and fourthly, new projects to improve the level of product processing will be implemented in stages. In short, the second campaign to renovate EMC has begun.

In order to increase production revenue and profits, ore processing is being expanded by 22.7 percent to 40 million tons. Thus, we are working to increase copper concentrate production by about 20 percent and increase our country's export revenue and make contribution to the country’s society and economy. We are also aiming to gradually introduce value-added copper products.

There are also plans to build a cathode copper plant with heap leaching technology and a copper concentrate smelting and processing plant. The Government of Mongolia's Action Plan for 2020-2024 includes projects to expand and modernize the Erdenet open pit mine, concentrator plant, and maintenance and mechanical plant to increase production capacity and efficiency. These projects are aimed at increasing production, revenue and profits, reducing costs, and increasing the competitiveness of EMC.

According to our plan, in 2020, EMC's annual sales revenue will reach MNT 2.1 trillion or MNT 5.8 billion per day. By 2025, it will reach MNT 5.6 trillion in a year, which means about MNT 14 billion per day, and in 2028, it will reach MNT 11 trillion in a year, reaching more than MNT 30 billion per day. That's a big number.

-Some people say that Erdenet is making such a profit because of the rising copper price in the world market. Some even say that the profit increased this much just because it was taken under state ownership in entirety?

-Of course, the profit of the organization does depend on the market price of the products sold. However, this is not the only factor that affects. The average price of copper per ton on the world market in 2019 was USD 6,005. As I mentioned above, this was the year that we witnessed our highest profitable year in thehistory of past 40 years.

In 2020, the state budget forecast the price of copper at USD 5,991. Due to the global outbreak of the pandemic, prices of some mining products have fallen sharply. In the first quarter of this year, copper price fell by more than USD 1,300 to USD 4,600. The average for the first half of the year was more than USD 500 lower than planned. However, since November 18, 2020, it increased to USD 7,000. In general, we are trying to achieve our goals regardless of the situation we are facing. No dividends were paid in 2017 due to EMC's loss in 2016.

In 2018, a total of MNT 68.7 billion in dividends was distributed. Of this, MNT 35 billion went to the Mongolian government and MNT 33.7 billion to the Mongolian Copper Corporation. In 2019,it became a 100 percent state-owned enterprise and paid MNT 150 billion in dividends to the Mongolian government. This is 2.2 times the total dividend paid in 2018. In 2020, we are paying USD 155 billionin dividends. Dividends are projected at USD 200 billion in 2021. So, it is unreasonable to say that the revenue of EMC has increased as the dividend for the 49 percent shareowner now remains at the company.

-Erdenet is working nonstop regardless of current situation of the pandemic. I assume that it must be hard to be well organized as it has large number of employees.

-Everyone was shocked after the news came out highlighting the cases of COVID-19 detected in Orkhon aimag. Shortly afterwards, the factory administration took immediate action and involved 7663 people in the rapid COVID-19 testing and 700 people in the PCR in a short period of time, which created a positive atmosphere for employees to feel calm and safe. In these difficult times, when production and services are declining due to the pandemic and the economy is shrinking, a unified program and plan of risk management measures have been developed, approved, and being implemented. We have increased the salaries of our employees by 10 percent in 2020. During this difficult time, our miners are being able to work together towards our shared goals and directions as more united than before, disciplined, calm and well organized. Most importantly, we are creating a guarantee for our future with today’s success.

B.Ganchimeg

Cases of the more contagious variant of Covid-19 first identified in the UK have been confirmed in several European countries as well as Canada and Japan.

Infections linked to people who arrived from the UK were reported in Spain, Switzerland, Sweden and France.

A couple found infected in Ontario, Canada, had no known travel history or high-risk contacts, officials say.

Japan is to ban most non-resident foreign nationals from entering the country for a month from Monday.

Since reporting infections in five passengers who had all arrived from the UK, the country has confirmed two more cases, one of which is said to have been domestically transmitted.

News of the new variant triggered travel restrictions around the world last week.

Meanwhile, several EU countries have started to vaccinate people against the virus ahead of a co-ordinated rollout across the whole bloc on Sunday.

Health workers in north-east Germany said they were not prepared to wait another day to distribute the newly approved Pfizer-BioNTech vaccine. They began by immunising elderly residents of a nursing home in Halberstadt.

In Hungary, the state news agency said the first recipient of the vaccine was a doctor at Del-Pest Central Hospital. The authorities in Slovakia also said they had begun vaccinating.

The head of the European Commission, Ursula von der Leyen, has released a video on Twitter celebrating the vaccine rollout, calling it a "touching moment of unity.

Scientists say the new variant of Covid-19 may have been spotted in the UK first because of the strength of the country's surveillance system.

The new variant is considerably more transmissible than previous strains but not necessarily any more dangerous for those infected, experts say.

How far has the new variant spread?

Those infected in Canada are a couple from Durham, near Toronto, who are now self-isolating.

In Japan, the two new cases are a pilot in his 30s who returned to Japan from London on 16 December and a woman in her 20s, one of his family members with no history of visiting the country, Kyodo News reports.

Under the travel suspension coming in on Monday, Japanese nationals and non-Japanese residents who are abroad will be allowed to return, and some travellers such as businesspeople will be allowed to enter from a small number of mainly Asian countries.

In Spain, four cases of the new variant were confirmed in Madrid. None of the patients, all of whom travelled from the UK, were seriously ill.

Switzerland identified three cases, two of which are known to be British citizens currently in the country. Switzerland is alone in Europe in keeping its ski slopes open to tourism over the Christmas and New Year period, and thousands of tourists from Britain have arrived in the last couple of weeks.

In Sweden, the health agency said a traveller there was ill with the strain but had been self-isolating since he returned from the UK.

France confirmed its first case of the new variant - a French citizen in the central town of Tours who had arrived from London on 19 December, the health ministry said.

The man, who had been living in the UK, was asymptomatic and currently self-isolating at home, the ministry said.

France closed its border with the UK after the new variant was confirmed in Britain but ended its ban for EU citizens on Wednesday, providing people tested negative before travelling.

Thousands of lorry drivers spent Christmas Day in their cabs in Kent waiting to cross the English Channel.

Cases in Denmark, Germany, Italy, the Netherlands and Australia were reported earlier.

What is the new variant?

The new variant first detected in southern England in September is blamed for sharp rises in levels of positive tests in recent weeks in London, south-east England and the east of England

About two-thirds of people testing positive in these areas could have the new variant - but this is only an estimate, the Office for National Statistics (ONS) says.

Three things are coming together that mean the new variant is attracting attention:

It is rapidly replacing other versions of the virus

It has mutations that affect part of the virus likely to be important

Some of those mutations have already been shown in the lab to increase the ability of the virus to infect cells

All of these build a case for a virus that can spread more easily, says the BBC's health and science correspondent, James Gallagher.

Experts say the leading vaccines developed in recent months should still work.

The mass vaccination programme to protect people from the coronavirus has started globally to combat the pandemic, which has killed more than 1.73 million people globally and infected 78 million people since late December last year.

Earlier this month, the United Kingdom became the first country in the world to start administrating its citizens with a fully trialled and tested COVID-19 vaccine, soon followed by several other nations.

Here is a list of countries that have approved and started administrating the COVID vaccines to their populations:

United Kingdom

On December 8, Margaret Keenan, a 90-year-old British grandmother, became the first person in the world to receive the Pfizer-BioNTech COVID-19 vaccine outside of a trial.

But shortly after the vaccination programme was launched, the UK imposed tough lockdown measures after a new and more contagious strain of the coronavirus was found.

United Arab Emirates

The first jabs of the coronavirus vaccine to residents were administered in the UAE capital, Abu Dhabi, on December 14.

The oil-rich Gulf state has approved the Pfizer-BioNTech and Chinese-made Sinopharm vaccines for mass use.

United States

The same day, the US also started administrating the Pfizer vaccine, with a critical care nurse in New York City, Sandra Lindsay, becoming the first American to receive it.

The Pfizer-BioNTech has been administered to more than a million people since the programme began even as the US authorities have approved a second vaccine made by Moderna.

Canada

The first COVID-19 patient to be inoculated in Canada was an 89-year-old woman from Quebec who received the Pfizer vaccine on December 14.

The North American country, along with neighbouring US, has also approved the Moderna vaccine for its mass immunisation programme. The first shipment of the Moderna shots arrived on Thursday.

Saudi Arabia

Saudi Arabia, the worst-affected country on the Arabian Peninsula with more than 360,000 recorded cases, including 6,148 deaths, began its campaign with the Pfizer-BioNTech vaccine on December 17.

Israel

Israeli Prime Minister Benjamin Netanyahu received a COVID-19 vaccine jab on December 19, kicking off a national roll-out.

Netanyahu, 71, and his health minister were injected with the Pfizer-BioNTech vaccine live on TV at Sheba Medical Center in Ramat Gan, near Tel Aviv.

Qatar

Qatar launched a free coronavirus vaccination campaign after the first batch of the Pfizer-BioNTech vaccine arrived in the Gulf state on December 22.

The vaccine will be administered in two doses, three weeks apart at seven primary health centres across the country.

Qatar has also signed deals to acquire Moderna and Oxford-AstraZeneca vaccines.

Mexico

Mexico started its mass vaccination programme on December 24, with a nurse being the first to receive the jab in the country with one of the world’s highest COVID-19 death tolls.

The televised launch came a day after the first 3,000 doses of the Pfizer-BioNTech COVID-19 vaccine arrived by a courier plane from Belgium.

Serbia

The Balkan nation started its vaccine roll-out on December 24, with Prime Minister Ana Brnabic becoming the first to receive the Pfizer vaccine.

Kuwait

Kuwait also began its coronavirus vaccination campaign on December 24.

The country received the first 150,000 doses of the vaccine developed by US pharmaceutical giant Pfizer and its German partner BioNTech.

Chile

On December 24, Chile became the second Latin American nation after Mexico to start its inoculation programme.

Zulema Riquelme, a 42-year-old nurse, got the first jab in the presence of President Sebastian Pinera.

Russia

The Russian government says it has been inoculating its citizens since September with its Sputnik V vaccine.

On August 13, President Vladimir Putin announced that Russia had become the first country to grant regulatory approval to a COVID-19 vaccine.

However, the approval for use was given without the country completing its phase-three trial, raising questions from world health organisations and scientists.

Costa Rica

Costa Rica received its first shipment of Pfizer-BioNTech vaccine doses on Wednesday, and the country administered the first shot on Thursday to a wheelchair-bound, 91-year-old nursing home resident, Elizabeth Castillo.

“I am very grateful to God, because I have asked so much of him. My life is very important to me, so take advantage of every moment,” Castillo said.

Costa Rican President Carlos Alvarado Quesada said the vaccinations “may be the beginning of the end of this pandemic”.

The growth of China’s gross domestic product (GDP) will accelerate to 7.9 percent next year from the two percent in 2020, according to a report by the World Bank published on Wednesday.

It has projected that the country’s GDP growth will return to its pre-pandemic level by 2021 in response to improved consumer and business confidence and better labor market conditions.

The World Bank said that although the growth rate remained unchanged from its projection in the summer, China will have to navigate some near-term uncertainty. “A premature policy exit and excessive tightening could derail the recovery. Along with a flexible and supportive monetary policy, China could use its fiscal space to hedge against downside risks to growth and ensure a smooth rotation from public to private demand.”

The bank suggested that the special direct fiscal transfers to local governments (a new mechanism launched this year to ensure fiscal and bailout funds can be directly received by primary-level government departments and entities) could be extended through next year and explicitly targeted to increased social spending and/or green investment by local governments.

In terms of monetary policy China’s central bank should return to more conventional tools while phasing out window guidance, lending targets, and relending facilities adopted to provide targeted support in the context of the Covid-19 shock, said the report.

According to World Bank lead economist for China, Sebastian Eckardt, the country will need to embrace the growth potential of its most developed and innovative metropolitan areas and city clusters, to rebalance the economy from investment to more innovation- and services-driven growth.

“Such a shift will need to be accompanied by fiscal policies to ensure more equitable public service delivery and increased investment in human capital for people living outside urban areas and coastal provinces,” Eckardt said.

Rio Tinto and Indigenous Australians said on Thursday they had taken initial steps towards rebuilding their relationship after the miner destroyed sacred Aboriginal caves in Western Australia in May.

The destruction of the 46,000-year-old Juukan Gorge rock shelters by Rio Tinto to make way for a mine expansion led to intense public criticism and an inquiry that eventually caused the departure of a number of top-level executives including its chief executive officer.

A joint session of the Puutu Kunti Kurrama and Pinikura people (PKKP), the traditional owners of the land, and Rio Tinto boards had been held to reaffirm the miner’s apology and commitment to rebuilding the relationship, a joint statement said.

“While there has been some important progress made in the relationship so far, we are not underestimating the time it will take to genuinely work together and achieve the mutual objectives of this partnership,” they said.

PKKP said it was encouraged by the steps Rio Tinto had taken to address “the hurt and devastation” caused by the miner’s actions, but that they were the first of many that would be needed to ensure the destruction of cultural heritage sites would never be repeated.

PKKP also noted the appointment of Rio’s new chief executive officer, Jakob Stausholm, and said it hoped that discussions between both parties would continue in a positive direction.

The miner last week named sitting Chief Financial Officer Stausholm as its new chief from Jan. 1, 2021, tasking him with taking further steps to improve the miner’s image and heal ties with local groups.

(By Rashmi Ashok; Editing by Uttaresh.V and Aditya Soni)

Ulaanbaatar /MONTSAME/. As of December 23, the Bank of Mongolia purchased 22 tons of precious metal, showing an increase of 6.8 tons compared with the same period of previous year.

The BoM has purchased about 100 tons of precious metals over the past five years, increasing the country's foreign exchange reserves by USD 3.7 billion.

In order to intensify the "Gold-2" program, the BoM has provided gold mining companies with down payment and long-term financing with gold repayment terms. As a result, gold miners' production capacity has improved, and gold export in November increased fivefold compared with the same period of previous year, reaching USD 1.7 billion. This result has made a significant contribution to increasing Mongolia's export earnings and improving the balance of payments.

The BoM has gradually taken measures to ease the procedure in the trading of precious metals for businesses and individuals, such as issuing licenses, establishing branches in Darkhan-Uul and Bayankhongor aimags, making electronic transitions in some services, etc.

The BoM is working together with other relevant organizations to develop the precious metal sector by supporting and intensifying the extraction of precious metals, reducing illegal cross-border trade, and improving the volume of precious metals being traded in the domestic market.

Consumption of processed fuel has increased by 41 percent in Mongolia's capital Ulan Bator in December compared with the same month last year due to the COVID-19 lockdown, the city's Specialized Inspection Agency (SIA) said Thursday.

This is because the majority of Ulan Bator's residents have stayed indoors due to the COVID-19 lockdown and burned a lot of processed fuel to keep warm, the SIA said in a statement.

To curb air pollution, Mongolia in 2019 replaced low-grade coal with processed fuel only in Ulan Bator, which is home to over half of the country's population of 3.3 million.

Around 220,000 households live in Ulan Bator's ger (yurt, or round-shaped dwelling) districts, with no running water, central heating or sewerage systems, according to government data.

As of Thursday, Mongolia has confirmed a total of 1,069 COVID-19 cases, including 627 locally transmitted ones.

The Mongolian government reimposed lockdown measures in Ulan Bator starting Wednesday to Jan. 6 to curb resurging local COVID-19 cases.

The Asian country's first round of local transmissions was detected in early November, when a woman tested positive after her husband returned from Russia.

The incident triggered a nationwide lockdown that was later extended in Ulan Bator and provinces of Selenge and Arkhangai until Dec. 11.

The country has recorded 584 recoveries and no related deaths so far. Enditem

Ulaanbaatar /MONTSAME/. On 23 December 2020, General Taxation Authority of Mongolia issued a press statement regarding the tax audit of Oyu Tolgoi LLC. The statement reads:

"Similar to many other countries’ designated tax administrators, the Mongolian Tax Authority (“MTA”) conducts a periodic audit of tax returns filed by companies within its jurisdiction to ensure the proper application of domestic tax laws and the satisfactory compliance of certain international transfer pricing principles, such as the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations and Actions 8-10 of the BEPS Framework (the “International Rules”).

The MTA has recently completed an audit of Oyu Tolgoi LLC’s 2016-2018 tax returns and identified a number of violations and breaches of relevant laws and the International Rules. As a result, Oyu Tolgoi LLC was notified of MNT 649.4 billion (approximately US$228 million) of additional taxes, inclusive of penalty and default interests, that are due to be paid in cash to the Government of Mongolia. In addition, the MTA has reduced Oyu Tolgoi LLC’s operating loss carry forward balance by MNT 3.4 trillion (approximately US$ 1.2 billion).

Among others, the MTA concluded that certain transactions between Oyu Tolgoi LLC and Rio Tinto and its affiliates were not done at an arm’s length basis and were in violation of the International Rules. Accordingly, the value of such transactions was adjusted, for tax purposes, to reflect the actual value that would have been paid had the transactions occurred between unrelated parties dealing at an arm’s length basis. Major adjustments were made to a series of transactions between Oyu Tolgoi LLC and affiliated entities of Rio Tinto whereby economic value was transferred.

Transfer pricing audit is often seen as a complex process and the MTA conducted its audit on the basis of the "substance-over-form" doctrine in accordance with the International Rules as well as the General Taxation Law revised in 2019 which reflects the BEPS Actions. In the past 10 years, the MTA cooperated with various international organizations such as OECD, IMF, World Bank, UNDP, JICA and Intergovernmental Forum on Mining and received technical assistance from such organizations in various forms to implement transfer pricing best practices in Mongolia.

Oyu Tolgoi LLC has over 250 contractors providing services necessary for the development of its underground mine, including engineering, construction, installation, and other technical work as well as general consulting and IT services. MTA’s audit covered those transactions following the income “source” rules to determine the appropriate jurisdiction in which tax is payable, based on where the economic activities took place.

In other words, MTA determined that for any taxable income sourced from Mongolia, where the value is created, taxes should be paid to the Government of Mongolia (i.e. the source country with taxing rights). In particular, Oyu Tolgoi LLC’s treatment of “offshore” contracts and lack of taxes levied on work that were deemed by Oyu Tolgoi LLC to have not taken place in Mongolia is in violation of the internationally recognized “source” rule as adopted in Mongolian laws and regulations.

Oyu Tolgoi LLC must comply with the applicable laws and regulations of Mongolia (in accordance with the stabilized tax rates under the Investment Agreement) as well as international guidelines and issue transfer pricing documentation and reports in line with the International Rules."

Source: Tax Audit and Methodology Department, General Taxation Authority of Mongolia

NAIROBI (Reuters) -Another new variant of the novel coronavirus seems to have emerged in Nigeria, the head of Africa’s disease control body said on Thursday, cautioning more investigation was needed.

The news comes after Britain and South Africa both reported new variants of the SARS-CoV-2 virus that appear to be more contagious, leading to new travel restrictions and turmoil in markets.

“It’s a separate lineage from the UK and the South African lineages,” John Nkengasong, director of the Africa Centres for Disease Control and Prevention (CDC) told an online news conference from Addis Ababa.

The detection of the new variants in Nigeria and South Africa prompted an emergency meeting of the Africa CDC this week, Nkengasong said.

The news comes as cases are surging in both Nigeria and South Africa. In the past week, Nigeria reported a 52% increase in cases and South Africa a 40% increase, Nkengasong said.

He said there was no evidence the new variant was contributing to increased transmission in Nigeria, but cautioned the country does less genomic surveillance than Britain.

The Nigeria CDC and the African Centre of Excellence for Genomics of Infectious Diseases in Nigeria will study more samples, Nkengasong said.

“Give us some time ... it’s still very early”, he said, in response to questions about the variant.

Nigeria’s principal COVID-19 investigator has just released publicly the genomic sequences of the new variant, he added.

Nigeria’s CDC did not immediately respond to a request for comment on Nkengasong’s remarks.

“Over recent weeks, we’ve had a huge increase in number of samples to (the Nigerian CDC’s) reference lab,” the Nigeria CDC’s director general Chikwe Ihekweazu tweeted on Thursday.

“This has led to an unusual delay with testing, but we’re working round the clock.”

Nigeria, Africa’s most populous country with more than 200 million people, has seen fewer coronavirus cases than many others on the continent. Total cases crept past 80,000 on Wednesday. Daily recorded cases exceeded 1,000 for the first time this month.

Africa has reported more than 2.5 million coronavirus cases, making up 3.3% of global cases, according to the Africa CDC.

The new, faster-spreading variant that South Africa detected on Dec. 18 is now the predominant one there, Nkengasong said, although - as with the new variant in Britain - there is no evidence that it leads to a more severe disease.

The rate of coronavirus infections in South Africa will soon surpass the peak hit in the first wave earlier in the year, its health ministry said on Wednesday.

Nkengasong said the Africa CDC did not believe the mutation in South Africa will affect deployment of the COVID-19 vaccines on the continent.

Reporting by Nairobi newsroomAdditional reporting by Paul Carsten in AbujaWriting by Maggie FickEditing by Mark Potter

Ulaanbaatar /MONTSAME/. Mongolia's trade environment and procedures are set to become more predictable and transparent with the launch of the Mongolia Trade Information Portal (MTIP).

The new portal, supported by the World Bank Group, aims to make import and export activity easier and less costly for Mongolian businesses, especially micro, small and medium-sized enterprises.

Led by the Mongolian Customs General Administration, the portal is a web-based database system, which makes all international trade-related information available at the stroke of a key, including laws, administrative procedures, guidance notes, forms, licenses, permits, applicable laws, and tariff information.

The new portal also provides information on trade agreements and international organizations or institutions supporting overseas business expansion, as well as tools enabling exporters to perform trade analysis, desk research and market surveys.

"The Mongolia Trade Information Portal is important in improving transparency of legal environment in trade, promoting exports and trade facilitation by providing traders and businesses with instant and one-stop access to foreign trade-related information," said Enkhtaivan Nyamtseren, Foreign Minister of Mongolia. "We are committed to closely coordinating with both public and private stakeholders to ensure the sustainability of the portal."

"The portal will be a game changer for the business community as both importers and exporters will be able to save time and money by having critical information at their fingertips," said Asralt Batbold, Chairman, Mongolian Customs General Administration.

Lack of access to information and inadequate understanding of the required regulatory procedures to import and export are major barriers for the private sector, especially for smaller businesses and new market entrants. Rigorous lockdown measures in response to the COVID-19 pandemic also make it difficult for smaller businesses to obtain the trade forms and documents they need from the government authorities.

"As Mongolia is going through a lockdown, maintaining trade flows is more important than ever in providing access to essential food and medical supplies," said Rufat Alimardanov, IFC's Resident Representative for Mongolia. "We know the global pandemic has caused unprecedented disruption to world trade, so it's critical for Mongolian businesses to be able to access the trade information they need to help spur a resilient recovery."

Mongolia's trade environment has benefited from recent reforms, enabling the country to comply with the World Trade Organization Trade Facilitation Agreement, to which Mongolia is a signatory. Trade facilitation reforms are being spearheaded by a multi-agency National Trade Facilitation Committee (NTFC), which is led by the Ministry of Foreign Affairs and includes representatives from both the public and private sectors.

"Micro, small, and medium-sized enterprises make up 90 percent of all enterprises in Mongolia and they often could not afford specialized trade agents. This online repository offers them an easier, cheaper and faster way to handle their goods. We anticipate that it will help our members sustain their operations during these challenging times and that our members will be active users of the platform," said Amartuvshin Otgondavaa, Chairman, Mongolian National Chamber of Commerce and Industry.

The World Bank Group has been supporting Mongolia to improve trade competitiveness and drive economic diversification. As part of this, the Mongolia Trade Information Portal project is supported by the World Bank Group with funding from the Trade Facilitation Support Program (TFSP). The TFSP is funded by nine donor partners: Australia, Canada, the European Commission, the Netherlands, Norway, Sweden, Switzerland, the United States, and the United Kingdom. This initiative—implemented by IFC and the World Bank—provides assistance to countries seeking to align their trade practices with the World Trade Organization Trade Facilitation Agreement.