Rio to begin copper production at Winu in 2023 www.mining.com

Rio Tinto (ASX, LON, NYSE: RIO) plans to ramp up development of its Winu copper-gold project in Western Australia, with first production expected in 2023.

China's economy to grow 15% in Q2 as it recovers from coronavirus – JPMorgan www.rt.com

The world's second largest economy, China, will recover from the COVID-19 crisis to emerge stronger than ever, according to JPMorgan Chase's global economist Joseph Lupton.
Lupton told CNBC he is projecting negative four percent growth for the first quarter, when the coronavirus outbreak brought much of China's economy to a halt.

Netizens hail donation of 30,000 sheep from Mongolia www.globaltimes.cn

Mongolian President Khaltmaa Battulga on Thursday became the second foreign leader to visit China after the COVID-19 outbreak, following Cambodian Prime Minister Hun Sen who visited China on February 5, as he donated 30,000 sheep to China to support the Chinese people's fight against the virus.

Visit by Mongolian president shows deep friendship www.chinadaily.com.cn

China is making great progress in controlling the novel coronavirus pneumonia outbreak, and it has full confidence and the capacity to win the battle against the disease, President Xi Jinping said on Thursday.

Xi made the remark while meeting with Mongolian President Khaltmaa Battulga at the Great Hall of the People in Beijing. Battulga's visit took place the day after the end of Mongolia's traditional White Moon festival holiday.

Noting that Battulga is the first foreign head of state to have visited China since the outbreak of the disease, Xi said that his visit demonstrates the great importance that the Mongolian president attaches to bilateral relations and his deep friendship toward the Chinese people.

The Chinese government and the Chinese people are making full efforts to fight the disease, Xi said, adding that China has received support and help from the Mongolian government and people.

China and Mongolia are close neighbors that help each other and stand together in difficult times, Xi said.

Xi stressed that the Communist Party of China and the Chinese government have paid great attention and taken the strictest and utmost measures to prevent and control the disease since its outbreak.

China is making great efforts to coordinate prevention and control of the disease with economic and social development, and it is trying its best to limit the impact of the disease as much as possible, Xi said.

China is resuming its economic production in an orderly manner in line with the different situations across the nation, paying attention to spring agricultural production, and is making efforts to ensure people's livelihoods, Xi said.

Xi pointed out that China has great potential in domestic consumption and strong industrial foundations, and the country will strive to achieve its economic goals for this year, especially the major tasks of securing the decisive victory of building a moderately prosperous society in all respects and reducing poverty.

Based on the principle of building a community with a shared future for mankind, China is responsible for the Chinese people's safety and health and has a duty to safeguard global public health, Xi said.

China's open, transparent and responsible manner and its positive efforts to strengthen international cooperation on fighting the disease have won recognition from the World Health Organization and the international community, Xi said.

China will continue to enhance cooperation with all nations, including Mongolia, in handling the outbreak effectively and maintaining regional and global public health, Xi said.

China would like to consolidate mutual political trust with Mongolia, enhance Belt and Road cooperation, and jointly promote the building of a community with a shared future for mankind, Xi added.

Battulga announced that Mongolia will donate 30,000 sheep to China, in addition to the funds it has already given to China. He presented a certificate to Xi about the donation of the sheep after their talks.

On behalf of the Mongolian government and people, Battulga expressed sincere sympathy for the Chinese people's suffering resulting from the outbreak.

Mongolia highly admires and appreciates China's timely response to the disease and the progress made in fighting the disease, he said.

Calling China a comprehensive strategic partner, Battulga said the Mongolian people would like to join hands with the Chinese people in fighting the disease, he said, adding that the Mongolian people have enthusiastically supported their government's decision to donate to China's battle against the disease.

He said that the Chinese people, led by Xi, will definitely win the battle against the disease and achieve the nation's goals for economic and social growth, he said.

Xi says China, Mongolia help each other in face of difficulties www.xinhuanet.com

BEIJING, Feb. 27 (Xinhua) -- Chinese President Xi Jinping Thursday held talks with Mongolian President Khaltmaa Battulga at the Great Hall of the People in Beijing.

Research Announcement: Moody's - Reform commitments and backing from creditors key to managing Mongolia’s upcoming debt obligations www.moodys.com

Moody's Investors Service says in a new report that the pressure on Mongolia's (B3 stable) credit profile will rise from 2021, as bonds worth $2.3 billion mature during 2021 – 2023. The country's ability to contain risks hinges on continued support from international creditors.

"Stronger commodity prices, disbursements from international lenders, and a steady flow of FDI have all supported Mongolia's debt payments over recent years," says Anushka Shah, a Moody's Vice President and Senior Analyst.

However, refinancing needs will begin to mount in 2021 and spike in 2023, as bonds worth $2.3 billion mature.

"Assuming a broadly stable current account deficit and continued financing from international creditors, external risks should remain in line with the recent past," adds Shah.

Tighter fiscal and monetary policies have resulted in a significant build-up in buffers since 2015, with the current account deficit narrowing to 12.6% of GDP in 2019 from over 40% of GDP in 2011-13, and in an increase in foreign reserves. In addition, the country continues to benefit from a number of external funding agreements from both multilateral and bilateral lenders.

However, prospects for refinancing will hinge on the government's adherence to, and continued implementation of reforms, particularly on the fiscal front.

Moody's sees a likelihood of a loss of reform momentum, at least over the course of 2020, as parliamentary elections in June 2020 have already spurred an expansionary budget. There are also risks that the government's ongoing program with the IMF will lapse, given prolonged delays of tranche disbursements following the sixth review. The IMF program has anchored reform progress over recent years.

Strong growth dynamics remain a credit support. The coronavirus outbreak and a moderation in commodity prices will curb Mongolia's growth in 2020. But Moody's expects activity to recover in the second quarter and says that fundamental demand and supply dynamics for key mining exports of coal and copper should remain healthy, supporting growth and alleviating fiscal risks.

Subscribers can access the report "Government of Mongolia: External vulnerabilities continue to dominate credit profile" at: http://www.moodys.com/researchdocumentcontentpage.aspx…

NOTE TO JOURNALISTS ONLY: For more information, please call one of our global press information hotlines: New York +1-212-553-0376, London +44-20-7772-5456, Tokyo +813-5408-4110, Hong Kong +852-3758-1350, Sydney +61-2-9270-8141, Mexico City 001-888-779-5833, São Paulo 0800-891-2518, or Buenos Aires 0800-666-3506. You can also email us at mediarelations@moodys.com or visit our web site at www.moodys.com.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Anushka Shah
VP-Senior Analyst
Sovereign Risk Group
Moody's Investors Service Singapore Pte. Ltd.
JOURNALISTS : 852 3758 1350
Client Service : 852 3551 3077

Gene Fang
Associate Managing Director
Sovereign Risk Group
Moody's Investors Service Singapore Pte. Ltd.
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Client Service : 852 3551 3077

US regulators to block Peabody, Arch Coal JV www.mining.com

The US Federal Trade Commission (FTC) has rejected Peabody Energy and Arch Coal’s plans to combine their operations in Wyoming and Colorado, saying it would limit competition and raise prices.

The joint venture, announced by the country’s two largest coal miners last year, would run seven mines in the Powder River Basin (PRB), where Peabody and Arch Coal accounted for over 65% of all the coal mined there in 2018.

The FTC has requested an administrative trial and, in the meantime, a temporary restraining order and preliminary injunction for the deal, which could generate $120 million in annual cost savings for the companies over a decade.

“Whatever the product, the antitrust laws protect customers from mergers that lead to higher prices,” Ian Conner, director of the FTC’s Bureau of Competition, said in the statement. “This joint venture would eliminate the substantial head-to-head competition between the two largest coal miners in the United States, and that loss of competition would likely raise coal prices to power-generating utilities that provide electricity to millions of Americans.”

Peabody and Arch Coal replied they intend to challenge the FTC’s decision in the coming months, adding they will continue to pursue the JV.

“We have provided tremendous amounts of evidence to the FTC during an extensive review, fully demonstrating that coal … faces intense competition from natural gas and other alternate fuels,” Peabody chief executive officer, Glenn Kellow, said in a separate statement.

The two companies believe coal prices will bottom out in the first half of 2020 before rising in the second half as production declines and global consumption gains.

The International Energy Agency is anticipating a steady increase in demand for the fossil fuel in the next five years, as growing demand for electricity in developing countries outpaces a shift to cleaner sources of electricity in industrialized nations.

Weak fundamentals
Moody’s lead coal analyst, Benjamin Nelson, said that regardless of whether or not the venture can go ahead, business conditions for coal producers in the PRB will remain extremely challenging.

Nelson cited among the reasons for the bleak outlook an “ongoing secular decline in the demand for thermal coal, low natural gas prices encouraging switching in the near-to-medium term and far fewer opportunities to export coal compared to other coal basins in part due to social opposition in the Pacific Northwest.”

US government data released in early February show that production in the country’s top coal- region fell almost 14% in the last three months of 2019 to the lowest in over two decades.

The weak quarter capped a tumultuous year of mine shutdowns and bankruptcies in the Basin, including Blackhawk Mining, Blackjewel, Cambrian Holding Co., Cloud Peak Energy and New Trinity Coal. Two other miners, Mission Coal and Westmoreland Coal, went bust in October 2018

President of Mongolia to pay a visit to the People’s Republic of China www.montsame.mn

Now's the right time for investors to buy Chinese stocks www.cnn.com

New York (CNN Business)Coronavirus jitters have paralyzed investors around the world. Chinese stocks might actually be close to bottoming out even as the disease spreads to other countries, sparking global pandemic and market correction fears.

Some investors are betting on a big comeback for Chinese companies -- despite worries about the Chinese economy being in paralysis due to the coronavirus.
"The coronavirus will wind up being the bottom for China. I realize this sounds like it's coming out of left field. But this outbreak could be occurring at the end of the Chinese bear market," said Mark Galasiewski, chief strategist of the Asia-Pacific region for Elliott Wave International.
The Shanghai Composite and Hong Kong's Hang Seng Index are both down this year and might be due for a comeback, especially since valuations for Chinese stocks are not as high as they are for US companies in the S&P 500.
"It's hard to make the case that an investor should dive further into parts of the global stock market that are overextended. Over the next five to 10 years, China and other emerging markets look more attractive than developed markets," said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower.

Galasiewski also pointed out that some Chinese stocks are already starting to awaken from their slumber. The Shenzhen Composite, kind of like the Nasdaq of China since it is home to many startup tech firms, is up nearly 10% this year.
Galasiewski thinks that top Chinese tech firms -- companies like Baidu (BIDU), Alibaba (BABA) and Tencent (TCEHY) -- are good values that have held up relatively well during the coronavirus sell-off.
He argues that this trio, which traders have dubbed the BAT stocks, are better bargains than the US high tech FAANG stocks -- Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google owner Alphabet (GOOGL).
Investors are running for cover. Can stocks bounce back?
Investors are running for cover. Can stocks bounce back?
The coronavrius outbreak may also give a boost to homegrown Chinese drugmakers, according to Brad Loncar, CEO of Loncar Investments and creator of the Loncar China BioPharma ETF (CHNA).
"Before the coronavirus outbreak, China is starting to have a biotech boom. Government officials want to upgrade the economy to higher-value sectors like pharmaceuticals and not just focus on generic drugs," Loncar said in an interview with CNN Business.
"Now China needs to modernize medicine even further and there will be a bigger focus on that which will accelerate because of the coronavirus," Loncar added.
Loncar pointed to three top Chinese drug stocks he likes that trade in the United States.
Zai Lab (ZLAB) is a leader in licensing drugs in China. BeiGene (BGNE) has developed a cancer drug that has gotten approval by the US Food and Drug Administration. It is also benefiting from a big investment from biotech giant Amgen (AMGN), which owns more than 20% of BeiGene. And Hutchison China MediTech (HCM) has a cancer drug that was the first to be entirely invented, developed and approved for use in China.

Can the People's Bank of China save the day?
It may seem counterintuitive. But the coronavirus outbreak could spark an eventual big boom in major Chinese stocks as the People's Bank of China seems ready to take whatever steps necessary to keep the economy from slowing more dramatically.
"Coming into 2018, China was attempting to slow its economy with tightening before it was surprised by the trade war," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company.
"Now, central bankers are attempting to stimulate the economy. So there is an opportunity for Chinese stocks to do better in the future," he added.
The numbers coming out of China will probably not look good for the first quarter. But that may only increase the willingness of Chinese officials to act more aggressively in order to prevent the downturn from getting worse.
"It's going to be ugly in China this quarter before things get back to normal. But policy makers will be throwing the kitchen sink at the problem and that should support the economy," said Adam Phillips, director of portfolio strategy for EP Wealth Advisors.
Still, not everyone is convinced that central banks can stop what is, at its heart, a health crisis and not an economic one. So he thinks investors should be wary of placing too much hope in the PBOC, Fed or other monetary officials.
"The threat is biological. Central bankers may not have a solution," said David Jilek, chief investment strategist with Gateway Investment Advisors.

Mongolia bans South Korea flights over COVID-19 fears www.channelnewsasia.com

ULAANBAATAR: Mongolia will ban flights to and from South Korea starting Tuesday (Feb 25) until Mar 2 due to the outbreak of the new coronavirus, weeks after closing its border with China over the epidemic.