Rio Tinto said on Thursday (17 September) that it plans to raise up to USD 500 million through additional lending to develop its giant Oyu Tolgoi copper mine in Mongolia. The Mongolian state has a 34% stake in the Oyu Tolgoi project, while Rio’s majority-owned Turquoise Hill Resources Ltd owns the remaining.

Rio and Turquoise Hill will jointly pursue the debt reprofiling process by engaging with existing project finance lenders, and expect a reduction of up to USD 1.4 billion in the funding requirements for Oyu Tolgoi.

In reprofiling, the time for repayment is extended, but the value of the debt is not marked down. The miner said any remaining funding for the underground mine will be met through a Turquoise Hill equity offering.

In July, Rio cut estimated reserves at Oyu Tolgoi, while confirming delays and higher costs after ground instability forced it to redesign the mine plan.

Oyu Tolgoi is Rio’s biggest copper growth project, but has faced geological challenges. The company had earlier forecast estimated first production from the mine between October 2022 and June 2023, 21-29 months later than its initial estimate.

Rio Tinto Group is hunting for a new leader to restore relations with the communities where it mines after Jean-Sebastien Jacques was forced out over the destruction of ancient Aboriginal heritage sites.

Rio announced Friday that Jacques and two other senior executives will leave after investors and Indigenous groups demanded stronger action and accountability over the explosions that tore through the 46,000-year-old landmarks in May. The company had previously planned to only levy financial penalties on the executives but that proved insufficient at a time when investors and activists are wielding increasing clout.

“The reputational damage has been enormous and they now need to work on rebuilding trust,” said Camille Simeon, a Sydney-based investment manager at Aberdeen Standard Investments, which holds Rio shares and manages assets worth about $563 billion.

London-based Rio, the world’s second-biggest miner, is reviewing internal and external options for a new chief executive officer and will prioritize candidates with the skills to repair the company’s tarnished standing, Chairman Simon Thompson said Friday in a phone interview.

“They will have to take responsibility for what is going to be a process running over months, if not years, of restoring confidence in our ability to manage communities and heritage effectively, and that will be one of the key criteria,” he said.

Here are some of the prospective candidates to become Rio’s new CEO that are being discussed by investors and analysts:

Tom Palmer, Newmont Corp.

The Newmont CEO spent two decades at Rio before joining one of the world’s biggest gold miners and is viewed as well-regarded by the board. Palmer, 52, is an Australian, educated in Melbourne, and was chief operating officer of Rio’s iron ore business -- the company’s main profit driver and the unit responsible for the incident that brought down Jacques.

Bold Baatar, Rio Tinto

Baatar is seen as one of the leading internal candidates for the top job. The Mongolian is a former investment banker, having worked for JPMorgan Chase & Co. before joining Rio in 2016. He runs the company’s energy and minerals business and also overseas its dealmaking Ventures unit. Baatar is viewed as a strategic thinker whose responsibilities include mapping out which commodities will be crucial to the company’s future.

Peter Beaven, BHP Group

Beaven, the current CFO at Rio’s larger rival, is leaving BHP at the end of the year. He was long seen as the frontrunner to get the top job there, before Mike Henry took over at the start of the year. He was born in Portugal and grew up in countries including South Africa, is an accountant by training and held the No. 2 role at BHP since 2014. BHP also has huge iron ore operations in Western Australia, so the former banker will be familiar with Rio’s business there, and he’s well known by investors and politicians.

Sandeep Biswas, Newcrest Mining Ltd.

Sandeep BiswasPhotographer: Carla Gottgens/Bloomberg

Biswas has been the CEO of Australia’s biggest gold miner for six years. Like Palmer, he’s a former Rio employee, having worked for the company in both Australia and Canada.

Graham Kerr, South32

Kerr is the CEO of South32, a diversified miner spun out by BHP in 2015. The Australian was CFO at BHP before being picked to run the new business and was long touted as a potential candidate to run the world’s biggest miner. He’s currently based in Perth in Western Australia, home to Rio’s iron ore business.

Other Rio Insiders

Other internal candidates will likely include, Alf Barrios, the former oil executive who runs the company’s aluminum business, head of copper and diamonds Arnaud Soirat and CFO Jakob Stausholm, who joined from shipping giant AP Moller Maersk in 2018.

Rio’s hunt for a successor to 48-year-old Jacques comes at a time of wider upheaval in the top ranks of the mining industry, as it confronts growing shareholder activism over climate change and governance. Leadership changes are expected in the near future at Anglo American Plc and Glencore Plc, while BHP installed Henry as its new CEO in January.

“You have to listen to the expectations of society around you, that can be investors, it can be the broader public and governments,” Henry said Friday in an interview. “I want to ensure that BHP is attuned to those expectations and sensing the world around it.”

— With assistance by Gina Turner

Mongolian Foreign Minister N.Enkhtaivan is planning to visit Russia next week. This will be the first visit of Mongolia’s Foreign Minister to Russia since the pandemic started and the first foreign visit for Mr. N.Enkhtaivan since he was appointed.

Foreign Minister N.Enkhtaivan is required to quarantine for 14 days after receiving his Chinese counterpart Wang Yi in Ulaanbaatar on 15-16 September. However, he is planning to visit Moscow without having finishing his quarantine period assuming the Russian side approves his request.

During the Moscow visit, it is expected that a discussion on the important Power of Siberia-2 oil pipeline and improving cooperation on economy and trade will be held.

Ulaanbaatar/MONTSAME/. According to the preliminary results, the gross industrial output reached MNT 9.6 trillion in the first eight months of 2020, decreased by MNT 2.2 trillion (18.4%) from the same period of the previous year. This decrease was mainly due to MNT 2.2 trillion (25.5%) decrease in mining and quarrying gross output. However, the electricity, thermal energy, and water supply production output increased by MNT 63.6 billion (9.0%) compared to the same period of the previous year.

By preliminary results, the mining and quarrying gross output reached MNT 6.4 trillion in the first eight months of 2020, decreased by MNT 2.2 trillion (25.5%) from the same period of the previous year. This decrease was mainly due to the decline in the mining of coal and lignite by MNT 2.1 trillion (57.8%), and extraction of crude petroleum by MNT 473.6 billion (69.9%) compared to the same period of the previous year.

In August 2020, the gross industrial output reached MNT 1.4 trillion, decreased by MNT 19.0 billion (1.4%) from the previous month. This decrease was mainly due to MNT 31.5 billion (3.2%) decrease in mining and quarrying output.

By the preliminary results of the first eight months of 2020, in the mining and quarrying sector, extraction of iron ore, fluorspar, and gold increased by 3.9-33.2 percent compared to the same period of the previous year. In the manufacturing sector, the production of alcoholic beverages, alcohol, pure water, soft drink, juice, cement, wheat flour, and milk increased by 0.8-13.8 percent compared to the same period of the previous year. Also, the production of coal briquette, mask, sanitizer, other types of drugs, and disinfectants for treatment and prevention increased by 1.5 to 22.9 times more compared to the same period of the previous year.

However, in the mining and quarrying sector, extractions of brown coal, copper concentrate, hard coal and crude oil decreased by 4.6-58.4 percent. In the manufacturing sector, productions of lime, cashmere products, copper cathode 99%, meat, metal steed, concentrated coal, combed cashmere and cigarettes decreased by 4.2-50.3 percent compared to the same period of the previous year.

By the preliminary results of the first 8 months of 2020, the sales of industrial output reached MNT 10.8 trillion, decreased by MNT 3.0 trillion (21.7%) compared to the same period of the previous year. This decrease was mainly resulted from MNT 2.8 trillion (29.2%) decrease in sales of mining and quarrying and MNT 219.1 billion (6.5%) decrease in sales of manufacturing, respectively.

The sales of mining and quarrying output decreased by MNT 2.8 trillion (29.2%) compared to the same period of the previous year. This decrease was mainly resulted MNT 2.1 trillion (60.6%) decrease in sales of coal mining and MNT 450.4 billion (70.6%) decrease in sales of crude petroleum extraction, respectively.

In the total sales of industrial output, MNT 5.9 trillion (54.4%) was export, of which MNT 4.9 trillion (82.9%) was export of mining and quarrying output.

In the total of MNT 4.9 trillion export of mining and quarrying output, 69.1 percent was metal ores, 24.6 percent was of coal and lignite, 3.8 percent was crude petroleum, 2.4 percent was other mining and quarrying output.

In August 2020, the seasonally adjusted industrial production index was 102.5 (2015=100), decreased by 14.0 percent from the same period of the previous year, by 5.7 percent from the end of the previous year, and by 3.5 percent from the last month.

Source: National Statistics Office

Ulaanbaatar /MONTSAME/. On September 15, Deputy Prime Minister Ya.Sodbaatar received Chief Representative of Japan International Cooperation Agency (JICA) Tamuro Eriko.

At the start of the meeting, the Deputy PM emphasized that one of priorities in Mongolian foreign policy is developing friendly relations and partnership with Japan as a strategic partner and third neighboring country with common values.

Noting the government’s objective to overcome socio-economic challenges caused by the pandemic, and quickly recover the economy to its prior state, he then expressed satisfaction in JICA’s partnership with the National Emergency Management Agency in enhancing the necessary guidelines, standards, and methodology for improving the earthquake resistance for infrastructure and buildings and proper urban planning.

Ms. Tamuro Eriko introduced that studies are currently being conducted on implementing six projects in Mongolia, which includes projects revolving around the pandemic situation, disaster protection, fair competition, development of the new airport area, monitoring of industrial wastewater.

As the 50th anniversary of the establishment of diplomatic relations between Mongolia and Japan will be marked in 2022, Deputy PM Ya.Sodbaatar expressed great confidence in welcoming the anniversary with the successful implementation of projects.

In the midst of retreating globalization, threats posed by climate change, growing youth unemployment and the COVID-19 pandemic are exacerbating a sense of uncertainty for children and young people, while they live their lives and prepare for the future and for the world of work. On 8 September 2020, the final report of the Technical and Vocational Education and Training (TVET) Policy Review in Mongolia was officially launched in Ulaanbaatar, Mongolia, offering timely recommendations to strengthen skills needed in a rapidly changing world. On behalf of UNESCO, Mr. Tapan Mishra, UN Resident Coordinator in Mongolia, presented both the English and Mongolian volumes of the Report to Ms. Ariunzaya Ayush, Mongolian Minister of Labour and Social Protection (MoLSP).

Hon. Ariunzaya Ayush, Mongolian Minister of Labour and Social Protection, expressed her sincere appreciation to UNESCO for partnering with MoLSP so as to review the TVET Sector and make policy recommendations for action by the Mongolian Government and partners.

The Minister reminded launch participants of the critical importance of TVET and skills development, lauding the Report as a significant contribution well aligned with Mongolia’s goal and socioeconomic policy framework for transitioning to a digital economy. She pledged her commitment to implementing the significant TVET sector reform proposed in recommendations made, stating that TVET “is one of the priority areas for the government and Mongolia to develop” and declaring “This TVET review report will be my new tabletop book.”

TVET aims to empower youth with relevant technical and vocational skills to transition into adult economic and social roles, and to effectively contribute to their community’s socioeconomic development. The Minister affirmed that, under her administration, TVET sector transformation in Mongolia will take place in line with the principles of Sustainable Development Goal 4: seeking to ensure access, equity, inclusion, quality and lifelong learning, leaving no one behind.

Mr. Tapan Mishra, the UN Resident Coordinator, commended the in-depth review of the TVET sector, leading to clear policy recommendations for implementation. He applauded UNESCO’s dedication to strengthening the TVET sector in Mongolia, which will ultimately contribute to a holistic, equitable and quality development of the country, and towards achieving all Sustainable Development Goals, particularly SDG4 and SDG8. Mr. Mishra assured the Minister of the Mongolia UN Country Team’s strong commitment to work with MoLS to advance TVET and Skills Development in Mongolia.

Dr. Marielza Oliveira, Director of UNESCO Beijing Cluster Office, reiterated UNESCO’s strong commitment to TVET, including to the continued support to MoLSP and other Mongolian institutions in translating the key recommendations of the TVET Policy Review Report into actions. She affirmed that conclusion of the policy review is not an end to the UNESCO’s support to Mongolia, but actually the beginning of a critical process to align TVET education and skills development with the needs of the Mongolian labour market and knowledge economy. The Director mentioned that such UNESCO efforts have already started, with designation of three Mongolian centers as members of UNESCO’s global knowledge network of TVET Institutions and centres of excellence – the UNEVOC network – so as to benefit from exchanges, institutional capacity development and cooperation. Dr. Oliveira recognized the contributions made by these 3 Mongolian Centres to the TVET Policy review.

The Review was a critical analysis of the TVET Sector and the Institutions and programmes and an in-depth assessment of the policies and programmes are aligned to the develop aspirations of the Mongolian Government. During the review, the UNESCO project team undertook several missions to the country, during which it held numerous meetings with key stakeholders and visited training centres, universities and workplaces. The report from the validation workshop in September 2019 compiled at the national level provided inputs to the policy review.

A presentation by Mr. Hiromichi Katayama, Programme Specialist at the TVET Section at UNESCO Headquarters, covered the five major recommendations made in the TVET Policy Review Report: (i). Improving effectiveness of participatory governance and management, (ii). Improving financial management of the TVET system, Improving the image and reputation of TVET, (iii). Increasing Flexibility of programme delivery modalities to serve training needs of all ages (iv) Improving financial management for TVET systems and (v) using labour market information for TVET.

Ms. Beate Dippmar from GIZ presented on behalf of the donor development partners on the reflections on the TVET policy review.

Due to COVID-19, the launch was organized simultaneously in the UN House in Ulaanbaatar and virtually online. A total of 30 participants physically attended the launch, representing the Ministry of Labour and Social Protection, the Ministry of Education and Sciences, the Mongolian National Commission for UNESCO, UNESCO HQ and Beijing Office, UN agencies, development partners, research institutes and private sector. The launch was covered widely in national and local media in Mongolia.

BEIJING (Kyodo) -- China said Tuesday that Foreign Minister Wang Yi and his Mongolian counterpart Tsend Munkh-Orgil have agreed that the two countries will not intervene in internal affairs with each other at their talks held the previous day.

The agreement made at the foreign ministerial meeting in Ulaanbaatar came as China has been increasingly criticized for trying to replace the Mongolian language with Mandarin Chinese at some schools in China's northern Inner Mongolia region.

Wang was quoted by the ministry as telling the Mongolian foreign minister that the two nations should "respect each other's national sovereignty" and "refrain from interfering in each other's internal affairs."

Since September, China has been strengthening education in Mandarin at elementary and junior high schools in the Inner Mongolia region, prompting many ethnic students to boycott classes in opposition to Beijing's move.

Also in Ulaanbaatar, hundreds of people staged protests on Monday on the occasion of Wang's visit, where they held up signs with a slogan saying the Mongolian language "should be protected."

(ANKARA) China and Mongolia are permanent neighbors and should "refrain from interfering" in each other's internal affairs, said a statement by Beijing after the country’s foreign minister paid a visit to the Mongolian capital Ulan Bator.

The statement released by Beijing comes as locals in China’s autonomous Inner Mongolia region expressed resentment over Beijing’s new language policy in the region.

“Both sides should continue to strengthen political mutual trust, consolidate the political foundation of bilateral relations, in particular respect each other's national sovereignty and territorial integrity, and refrain from interfering in each other's internal affairs,” said the statement.

China’s Foreign Minister Wang Yi met his Mongolian counterpart Nyamtseren Enkhtaivan in Ulan Bator on Tuesday.

“This is not only a political commitment when the two countries established diplomatic relations, but also a basic norm of international relations. Therefore, it should become an ‘anchor’ for the healthy and stable development of bilateral relations,” Beijing said.

The visit came after China changed the language of education from Mongolian to Mandarin Chinese in Inner Mongolia, with a particular reference to three subjects, Mongolian language and literature, moral and legal education, and history.

The change applies to students from the first grade of primary school.

According to daily South China Morning Post, dozens of protestors in traditional Mongolian garb held demonstrations in Ulan Bator’s main square calling for the protection of their mother tongue.

Speaking to Anadolu Agency from Taiwan, academic Chien-Yu Shih said: “This language policy change has to do with the introduction of the so-called Second Generation Ethnic policy [of China], which can be traced back to probably 15 years ago and was an intellectual debate on the strategy to successfully develop a single Chinese identity, instead of having so many divergent ethnic minority identities.”

Chien-Yu was, until recently, teaching in Hong Kong and returned to Taiwan after China imposed national security law. He now serves as an adjunct professor of international relations at the National Tsinghua University, Taiwan.

“Inner Mongolia has kept this traditional Mongolian written form for long; Outer Mongolia's language reform certainly would have aroused Beijing's attention,” he added.

Chinese Foreign Minister Wang Yi has sought to shore up relations with neighbouring Mongolia during a visit to its capital Ulan Bator, where protesters have accused Beijing of suppressing the Mongolian language in China’s Inner Mongolia autonomous region.

More than 100 protesters convened in Ulan Bator’s main square, many in traditional Mongolian clothing, on Tuesday to coincide with the visit, chanting slogans including “Wang Yi go away” and calling to protect their language.

During talks with his Mongolian counterpart, Nyamtseren Enkhtaivan, on Tuesday, Wang said the two countries should respect each other’s sovereignty, strengthen mutual political trust and avoid interfering in each other’s internal affairs, according to China’s foreign ministry.

The two sides also discussed advancing projects along Beijing’s Belt and Road Initiative, cooperation during the coronavirus pandemic and expanding Mongolian coal and agricultural exports to China.

A statement from Mongolia’s foreign ministry did not refer to mutual respect on domestic affairs, but added that, along with increasing bilateral trade, there was discussion of strengthening trilateral cooperation with Russia.

Wang’s visit followed rare mass demonstrations in northern China’s Inner Mongolia, a region home to more than 4.2 million ethnic Mongolians, over a new curriculum that would replace Mongolian with Mandarin Chinese as the language of instruction for three subjects.

Tens of thousands have protested against the policy change, seeing it as a move to extinguish the Mongolian language and culture, while Beijing has defended the action as necessary to help ethnic Mongolians with employment and to better integrate into the majority ethnic Han society.

Wang is expected to also meet this week Mongolian President Khaltmaagiin Battulga, who in February was the first foreign leader to visit China after the new coronavirus outbreak and offered a donation of 30,000 sheep.

But the protests in Inner Mongolia, and the subsequent clampdown there, have sparked anger in Mongolia, including from high-profile figures such as Battulga’s predecessor Tsakhiagiin Elbegdorj.

The former president has been outspoken on social media, slamming Beijing’s actions in the autonomous region as “cultural genocide”, and supporting Mongolians in seeking to preserve their language and culture in China.

“The right to learn and use one’s mother tongue is an inalienable right for all,” Elbegdorj wrote on Twitter earlier this month. “Upholding this right is a way for China to be a respectable and responsible power.”

In an interview with Mongolia’s Daily News on Tuesday, Chinese ambassador Chai Wenrui criticised Elbegdorj for his remarks and said false information about the situation in Inner Mongolia would harm relations between the two countries.

According to the report, Chai also pointed out that China’s demand for coal was on the decline. Mongolia’s economy has grown increasingly dependent on China in recent years, particularly its coal exports, which were suspended for two months after the coronavirus outbreak.

Elbegdorj responded with a tweet on Tuesday in which he accused Chai of making “a childish mistake” in his categorisation of Mongolia’s views on China’s territorial integrity. Mongolia and China had never discussed the sovereignty of Inner Mongolia he said, pointing out that Mongolia had long respected Beijing’s claims to self-ruled Taiwan.

Neither China’s embassy in Mongolia nor Elbegdorj responded to requests for further comment.

BY: Sarah Zheng joined the Post as a reporter in 2016. She graduated from Tufts University with a degree in international relations and film and media studies. She reports on China's foreign policy.

An Online Seminar using Zoom

This will take place on

Tuesday September 22nd

11am in London

6pm in Ulaanbaatar.

The principal speaker will be Damdiny Tsogtbaatar who was the Foreign Minister for Mongolia from October 2017- July 2020

Contributions will also come from the British Ambassador Philip Malone and the Mongolian Ambasador Tulga Narkhuu.

The event will also mark 10 years of the Mongolian British Chamber of Commerce which held its first event in London on September 22nd 2010.

To register for the event please register with the link below .

The MBCC is a not-for-profit membership organisation established in 2009 to foster strong business links between Mongolia and the UK. It aims to provide a professional and social environment for business people who wish to be introduced to, and become part of, the British-Mongolian business culture and community.