Sport Relief forced to scrap Mongolia trek for new challenge over coronavirus fears for Nick Grimshaw and co-stars www.metro.co.uk

Moody's announces completion of a periodic review of ratings of Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ Moody's conducts periodic reviews through portfolio reviews in which Moody's reassesses the appropriateness of each outstanding rating in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1st January 2019, Moody's issues a press release following each periodic review announcing its completion.

Mongolia launches campaign to help China fight coronavirus www.montsame.mn

The government of Mongolia has decided to launch a campaign to provide assistance to China to help contain the outbreak of coronavirus and appointed Minister of Environment and Tourism N.Tserenbat as a head of a working team responsible for the campaign.

Aviation industry revenue drops 5 percent www.zgm.mn

In January, revenue from the aviation industry amounted to MNT 31.1 billion, a decrease of five percent from the same period of the previous year. This was mainly due to the restriction made under the prevention of coronavirus outbreak in Mongolia. However, rail revenue reached MNT 62.7 billion, up 15.2 percent from January 2019. This was mainly due to freight earnings and mining products, in particular, iron ore and zinc concentrates. During the same period, the number of passengers by air increased by 3.4 percent and the number of passengers by rail increased by 19.4 percent respectively.

Inflation reaches 5.6 percent in January www.zgm.mn

In January, inflation stood at 5.6 percent, which is lower than the central bank’s target. Thus, it has been fluctuating around 5 percent for the last three months in a row. The weakening effect of supply factors also triggered inflation to stabilize. Meat prices, which have been increasing by 30 percent and burdening the CPI, decreased by about 16 percent. On the other hand, this indicates a slowdown in economic growth. At the end of 2019, the Monetary Policy Committee of the Bank of Mongolia (BoM) proposed the central bank to reduce its interest rate and support the economy. However, the policy rate remained untouched at 11 percent. The inflation is likely to gradually slow down to around six percent under the influence of supply factors in the first three quarters of this year. In the fourth quarter of 2020, the central bank anticipates that the baseline effects will grow slightly and the inflation may stabilize around the target level.

MIAT selects Sabre for ambitious growth plan www.news.mn

National carrier ‘MIAT’ Mongolian airlines announced yesterday (18 February) a new alliance with the Sabre Corporation, which is a technology and software company powering the global travel industry. The long-term agreement to implement Sabre’s market intelligence global demand data solution will, it claims, “provide robust market insights as the airline moves forward with highly ambitious growth plans.”

Rio to build $98-million solar plant at Koodaideri www.mining.com

Rio Tinto (ASX, LON, NYSE: RIO) has approved a $98-million investment to build a solar plant, Western Australia’s first, which will power the company’s new Koodaideri iron ore mine, in the resource-rich Pilbara region.

83.2 percent of the sales of mining and quarrying production exported www.montsame.mn

Ulaanbaatar/MONTSAME/. By the preliminary results of January 2020, the gross industrial output reached MNT 1.1 trillion, showing a decrease of MNT 191.4 billion (14.5%) from the same period of the previous year. This decrease was mainly due to mining and quarrying gross output by MNT 219.0 billion (23.0%).

Out of the gross industrial output, 65.1% were produced in the mining and quarrying sector, 22.7% -- the manufacturing sector and 12.2% -- electricity, thermal energy and water supply sectors.

By preliminary results of January 2020, the mining and quarrying gross output reached MNT 732.2 billion, showing a decrease of MNT 219.0 billion (23.0%) from the same period of the previous year.

This decrease was mainly due to decreases in mining of coal and lignite by MNT 183.1 billion (43.9%), extraction of crude petroleum by MNT 18.1 billion (23.0%), mining of metal ores by MNT 17.4 billion (3.9%) and other mining and quarrying by MNT 452.0 million (5.4%).

Out of the mining and quarrying gross output, 58.7% were produced in the mining of metal ores, 31.9% --- mining and quarrying, 8.3% -- the extraction of crude petroleum, and 1.1% -- other mining and quarrying.

By the preliminary results of January 2020, in the mining and quarrying sector, the extraction of gold is increased by 13.3% compared to the same period of the previous year. In the manufacturing sector, the production of metal foundry, lime, concentrated coal and coal briquette are increased from 1.5% to 7.4 times more.

On the other hand, in the mining and quarrying sector, the extractions of iron ore, fluorspar, brown coal, copper concentrate, crude oil, and hard coal are decreased by 3.2-36.3%. In the manufacturing sector, productions of milk, pure water, soft drink, juice, alcoholic beverage, wheat flour, cashmere products, combed cashmere, metal steel, copper cathode, and meat are decreased by 2.4-71.5% compared to the same period of the previous year.

In January 2020, the seasonally adjusted industrial production index was 146.3 (2010=100), decreased by 17.5% from the same period of the previous year and by 4.1% from the end of the previous year.

By the preliminary results of January 2020, the sales of industrial production reached MNT 1.2 trillion, decreased by MNT 370.4 billion (23.3%) from the same period of the previous year. This decrease was mainly influenced by a decrease of MNT 524.4 billion (43.9%) in sales of mining and quarrying.

From the total sales of industrial production, MNT 730.2 billion (59.8%) were export, of which the export of mining and quarrying was MNT 557.0 billion (76.3%) and the export of manufacturing was MNT 173.2 billion (23.7%).

The sales of mining and quarrying production were decreased by MNT 524.4 billion (43.9%). It was mainly influenced by a decrease of MNT 245.6 billion (51.7%) in sales of coal mining, MNT25.2 billion (35.2%) in sales of extraction of crude oil, MNT 253.0 billion (40.0%) in sales of mining of metal ores and MNT 542.6 million (3.7%) in sales of other mining and quarrying from the same period of the previous year.

From the sales of mining and quarrying production, MNT 557.0 billion (83.2%) were export, of which 53.9% was the mining of metal ores, 35.8% was the mining of coal and lignite, 8.3% was the extraction of crude petroleum, 2.0% was other mining and quarrying.

Source: National Statistics Office

Rio Tinto in legal battle with former manager over giant copper mine www.ft.com

Global mining group Rio Tinto is embroiled in a legal battle with a former employee who says it was aware of problems at a key copper project months before they were disclosed to investors.

An’ unfair dismissal case against Richard Bowley, who worked for Rio’s copper business between 2017 and 2019 as head of strategic projects in Mongolia, threatens to expose Rio to accusations that it was slow to reveal key information on the underground expansion of the giant Oyu Tolgoi mine in the Gobi desert.

The Oyu Tolgoi expansion is Rio’s most important growth project and will increase its production of copper, at a time when the shift to renewable energy is driving growing demand for the metal for use in electric vehicles and wind turbines.

The project is closely associated with the company’s chief executive Jean-Sébastien Jacques, who put together financing for it when he ran the company’s copper business.

In documents filed with a UK employment tribunal, Mr Bowley claims he first alerted senior executives to problems at the mine in February 2018.

That was followed by a second warning — to an HR executive — in July 2018 that the mine was $300m over budget and a year behind schedule. Yet, in a presentation to US investors on October 2, 2018, the head of Rio’s copper business Arnaud Soirat said the project was “on budget and on schedule”.

Two weeks later in quarterly production update, Rio announced there would be a nine-month delay to its “first sustainable production” because of ground conditions and other operational problems but it said the project remained on budget.

Mr Bowley continued to express his concerns to senior executives about the project, which was being managed by Rio’s Growth & Innovation unit, rather than its copper division.

In one email, sent just weeks after Mr Soirat’s October 2018 presentation, Mr Bowley told his local manager there would be a “12-18 month delay in the underground project, with substantial cost implications”. He also outlined his concerns to board members at Rio.

Mr Bowley, whose job included assessing potential issues with the underground mine and suggesting solutions, continued to warn senior executives of problems at the project until January 2019, when Rio launched an investigation and compliance review.

In March 2019, Mr Bowley claims his contract was terminated with “immediate effect”. Four months later, Rio announced the project was between $1.2bn and $1.9bn over budget and running 16-30 months behind schedule.

In a statement, Rio said it had consistently complied with its disclosure obligations in relation to the Oyu Tolgoi underground development and “any claim otherwise is completely misleading”.

It added: “Rio Tinto retained Baker McKenzie to independently review these allegations, including that Rio Tinto had misled the market regarding cost overruns and delays, which were found to be unsubstantiated.”

“As to our former employee’s Employment Tribunal claim, Rio Tinto considers this to be entirely without merit and will vigorously defend it.”

In its court filings, Rio argued the UK Employment Tribunal did not have jurisdiction to consider Mr Bowley’s claim because he was based in Mongolia and employed by its Singapore business unit.

A judge will decide on March 31 whether the case can be heard in the UK.

Rio is also fighting civil fraud charges in the US over the timing of market disclosures relating to a coal deal in Mozambique.

Mongolia’s economy grows up by 5.1 percent in 2019 www.montsame.mn

Ulaanbaatar /MONTSME/ Mongolia’s economy grew up by 5.1 percent in 2019, reports the National Statistics Office. Economic growth has been weakened by 2.1 percentage point from the previous year.