Prime Minister of Mongolia L.Oyun-Erdene, Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar along with related authorities worked in the locations of ger area redevelopment that is being implemented in Ulaanbaatar. According to the results of the first half of 2022, 20,536 households in 19 locations have been involved in ger area redevelopment.

In Bayanzurkh District, the ger area redevelopment is being implemented in four locations out of six locations. As part of the project, 609 households received their apartments in the first phase, and 550 more apartments will be put into use in the further. In Songinokhairkhan District, 199.6 hectares of land in seven locations will be redeveloped and six project implementers have started their work in seven Khoroos. The project implementers have built and put into use 15 blocks for 846 households.

Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar said, "In accordance with the duties instructed by the Prime Minister of Mongolia, large-scale construction is being carried out within the framework of the objective of reducing traffic congestion and decentralization of the capital city. Developments that are not implemented during the years of the Covid-19 pandemic have begun this year. We believe that the main basis of any work and success is organization. Therefore, in order to reduce traffic congestion, road repair and maintenance, building highways, public transport fleet renovation, and increasing access to schools and kindergartens are being carried out according to the plan. Particular attention to improving the quality of life of the population of Ulaanbaatar, providing them with the opportunity to live in a healthy and safe environment, and achieving unified standards are being paid. The capital city intends to implement Singapore's experience and housing policy in the ger area redevelopment, and bring out the correct planning of mortgage loans and capital sources. Ulaanbaatar will cooperate with Singapore in bringing urban planning to one standard.”

Since the implementation of the ger area redevelopment started, as of 2021, apartments for 11,755 households have been put into use in 19 locations in the ger area, and more than 5,000 chimneys in the ger area have been removed. It is characterized by the fact that schools, kindergartens, and medical buildings are built and put into use in accordance with the standards within the ger area redevelopment.

CAPITAL CITY TRAINING, RESEARCH, AND PUBLIC RELATIONS AGENCY

In the first seven months of this year, about 4.5 thousand borrowers received mortgage loans worth about MNT 355 billion through the funding sources of the Bank of Mongolia and commercial banks. In addition, mortgages worth MNT 71.7 billion are being disbursed in August this year, reported the Bank of Mongolia. Last year, 13.5 thousand borrowers were given mortgage loans worth MNT 1 trillion in total.

With a view to alleviate the financial hardship posed by COVID-19 pandemic, the mortgage repayment deferrals have been made five times between April, 2020 and the end of 2022 according to the Law on Prevention, Combat, and Mitigation of Social and Economic Impacts of the COVID-19. For the last or fifth deferrals on mortgage repayment, commercial banks allowed to postpone the repayment of 63,171 borrowers in total based on their requests.

170 new COVID-19 cases were confirmed in Mongolia in past 24 hours.

83 of them were contacts of earlier confirmed cases in Ulaanbaatar, 87 were detected in the regions. No imported cases were found.

Mongolia did not register any coronavirus related deaths in a day.

The total number of deaths remains 2,123.

Canada’s Turquoise Hill Resources (TSX, NYSE: TRQ) has rejected majority shareholder Rio Tinto’s (ASX: RIO) bid to buy the 49% stake it doesn’t already own in the company for $2.7 billion, saying it did not reflect its full and fair value.

The decision by the special committee appointed by Turquoise Hill blocks Rio Tinto’s efforts to gain greater control of the giant Oyu Tolgoi copper-gold mine it is developing in Mongolia.

It is also a setback to Rio’s plans to increase its exposure to future facing commodities such as copper and nickel, which are key for the global green energy transition. Taking a bigger stake in the Oyu Tolgoi mine, Rio Tinto’s main copper growth project, would help the mining giant achieve that goal.

“Market conditions in the equity and copper markets have changed significantly since the receipt of Rio Tinto’s privatization proposal,” Maryse Saint-Laurent, chair of the special committee, said in the statement. “At the same time, the company has continued to make positive progress on the underground project.”

The world’s second largest miner, which controls and operates Oyu Tolgoi through its 51% stake in Turquoise Hill, offered in March $34 a share to the miner’s minority shareholders, a 32% premium to the closing price the day before the offer was put forward.

The offer came only two months after Rio and the government of Mongolia reached an agreement to complete the long-delayed $6.9 billion underground development of the Oyu Tolgoi project in the Gobi Desert.

That deal saw the Melbourne-based miner agree to write off $2.4 billion in loans and interest used by Mongolia’s capital Ulaanbaatar to fund its share of the development costs.

oyu tolgoi

Rio Tinto, which joined Turquoise Hill as a strategic partner in October 2006, began managing the development of Oyu Tolgoi in December 2010. (Image courtesy of Turquoise Hill Resources.)

Rio Tinto said it was “disappointed” by the rejection, adding it still believes the deal would deliver compelling value for Turquoise Hill’s minority shareholders.

Interim Chief Executive Steve Thibeault said the funding agreement with Rio Tinto remained in effect and that the company expected it to provide sufficient liquidity to meet funding requirements.

Thibeault was referring to an agreement reached in May in which Rio Tinto committed to provide an interim debt funding of up to $400 million.

Turquoise Hill recently raised the cost estimate to develop the underground section of Oyu Tolgoi by about $200 million.

The project total cost has climbed to $7.06 billion, almost $1.8 billion higher than the original estimate in 2015.

Three-year delay and counting

The ongoing expansion of Oyu Tolgoi, located is 550 km (342 miles) south of Ulaanbaatar, has been plagued by delays and costs overruns.

At one time the situation triggered the Mongolian government’s ire to the point of threatening to revoke the 2009 investment agreement, which underpins the mine development.

First production, initially expected in late 2020, was rescheduled for October 2022 and later to the first half of 2023.

Once completed, the underground section will lift production from 125,000–150,000 tonnes in 2019 to 560,000 tonnes at peak output, which is now expected by 2025 at the earliest.

According to the miner, this would make it the biggest new copper mine to come on stream in several years and, by 2030, the operation would be the world’s fourth largest copper mine.

Oyu Tolgoi is expected to produce 110,000-150,000 tonnes of copper and 150,000-170,000 ounces of gold in concentrates in 2022 from processing ore from the open pit, underground and stockpiles.

Rio Tinto controls and operates the Oyu Tolgoi mine via Turquoise Hill’s 66% stake in the operation. The government of Mongolia owns the remaining 34%.

Rio Tinto’s plan to take direct ownership of a copper mine in Mongolia has hit the buffers after its $2.7bn buyout proposal was rejected.

Turquoise Hill Resources said a special committee had “terminated” its review of Rio’s C$34-per-share cash offer, saying it did not “fully and fairly reflect” the value of its holding in Oyu Tolgoi.

“A transaction at the price proposed by Rio Tinto would not fairly compensate minority shareholders for the fundamental, long-term value of the company’s interest in Oyu Tolgoi,” said Maryse Saint-Laurent, chair of the special committee.

Located in the Gobi desert, Oyu Tolgoi is one of the world’s biggest copper deposits. Once an underground expansion project is completed, it will be one of the world’s biggest copper mines, with production in its early years of about 500,000 tonnes per year, just as demand for the metal increases because of the energy transition.

It is one of several projects that Rio chief executive Jakob Stausholm is trying to sort out as he looks to position the group for the shift to a low-carbon economy.

Although Rio operates Oyu Tolgoi and is overseeing the underground expansion project, it does not have a direct stake in Oyu Tolgoi. Instead, it holds a 51 per cent stake in Toronto-listed Turquoise Hill, which in turns owns 66 per cent of Oyu Tolgoi. The rest is owned by the government of Mongolia.

Turquoise Hill said on Monday that engagement between the parties had “not resulted in a consensus on value and price or in any improved proposal from Rio Tinto”.

The company launched its offer for Turquoise Hill in March just as the copper price hit a record high above $10,600 a tonne. Turquoise Hill responded by establishing the special committee of independent directors to review and consider the Rio proposal.

At the time Bold Baatar, head of Rio’s copper division, said the offer, which was pitched at a 32 per cent premium, would create a “simpler and efficient ownership” structure for Oyu Tolgoi.

The price of copper has since fallen back to about $8,000 a tonne, although many analysts remain bullish on its long-term prospects.

When Rio reported half-year results last month, Stausholm was asked about the buyout offer, which he described as a “full-priced proposal”. He also noted copper assets had fallen 40 per cent since March.

Saint-Laurent said the committee would now support Turquoise Hill in its efforts to raise at least $650mn in new equity by the year-end to shore up its finances and complete development of the underground mine, where first production is expected in the first half of next year. Shares in the Canadian group closed at C$32.80 on Friday.

In a statement, Rio said it was “disappointed” by the decision of the special committee and it would remain “financially disciplined” as it considers its next move.

Should a deal not proceed, Rio said it would “welcome” continued investment by minority shareholders Turquoise Hill to meet their share of “future risks and funding obligations”.

The development costs for the underground mine at Oyu Tolgoi mine have risen to $7bn, up from an initial estimate of $5.3bn.

“While we are disappointed by this decision, we will continue to work constructively with the board of Turquoise Hill to advance the Oyu Tolgoi project,” said Baatar.

‘Nomadic Mongolia – 2022’ grand festival of intangible cultural heritage was held on August 12-14, 2022 at the Gorkhi-Terelj National Park with aim to promote 362 elements of intangible cultural heritage, attracting more than 16,000 foreign and Mongolian tourists. The festival was participated by 1227 inheritors of intangible cultural heritage from nine districts of the capital city and 21 aimags took part in the festival.

In his remarks delivered at the closing ceremony of the festival, Deputy Prime Minister of Mongolia S.Amarsaikhan said, "The main basis for the survival and national identity of any country or ethnic group is its heritage and culture. We, Mongolians, have many ethnic groups, such as Barga, Bayad, Buryad, Darkhad, Dariganga, Durvud, Zakhchin, Myangad, Naiman, Oirad, Uuld, Torguud, Sartuul, Uriankhai, Uzemchin, Khalkh, Khalimag, Kharchin, Khorchin, Hotgoid, Tsaatan, Tsakhar. At a time when the world is looking for ways to integrate Sustainable Development in all areas and efforts are being made to protect biological and cultural diversity, protecting the indigenous culture of the nomads, recognizing and passing on the heritage of the ethnic groups is the first priority not only for us Mongolians, but also for mankind. This year's ‘Nomadic Mongolia’ festival has expanded in terms of its scope from the previous festivals, and ended up being more unique and innovative in terms of content, form, and organization. In the future, we will implement programs and projects aimed at preserving, promoting, and passing on our nomadic heritage, supporting and encouraging cultural heritage inheritors, improving universal cultural heritage education, and increasing the contribution of creative production based on cultural heritage to society and the economy”.

During the festival, folk art performances and exhibitions of crafts were organized by the inheritors from 21 aimags and the capital city. In addition, the festivalgoers were given the opportunity to dive deeper into the traditional Mongolian household techniques such as felt making, fermenting mare’s milk, processing leather, etc. Also, the festival aimed to promote the methods of conserving nature which is used by the nomads.

As of 2022, a total of eight heritages of Mongolia have been registered in the UNESCO Representative List of Intangible Cultural Heritage of Humanity and seven elements have been inscribed on the List of Intangible Cultural Heritage in Need of Urgent Safeguarding. Therefore, in the future, the organizers are working on expanding it into an international festival in order to establish an intellectual immunity for children, youth, and people to respect their homeland, culture, and traditions by creating a traditional cultural environment.

During the festival, the inheritors of intangible cultural heritage who make a valuable contribution to preserving the intangible cultural heritage, developing talents, and promoting and disseminating it to the public were awarded. The oldest participant in this year’s festival was 90-year-old inheritor B.Dashzeveg from Nariinteel soum of Uvurkhangai aimag, while the youngest was 2-year-old B.Gunjmurun from Khuvsgul aimag.

With the purpose of preserving the intangible cultural heritage, promoting its inheritors, developing talents, promoting and disseminating it to the public, the Law on the Protection of Cultural Heritage states that the National Festival of Intangible Cultural Heritage ‘Nomadic Mongolia’ shall be organized every three years.

A new cargo train carrying 50 goods containers departed Wednesday from Urad Back Banner, north Chinas Inner Mongolia Autonomous Region, and is expected to arrive in Moscow in about 10 days.

It is the first China-Europe freight train service officially launched in Urad Back Banner in the city of Bayannur, a significant hub connecting China and Mongolia and a node city of the new Silk Road Economic Belt.

In 2022, Urad Back Banner plans to operate 55 China-Europe freight trains, transporting about 50,000 to 60,000 tonnes of goods with an annual trade value of 300 million yuan (about 47.1 million U.S. dollars) to 500 million yuan.

The banner has completed the construction of two logistic rail lines and a large container yard, creating the largest and fastest railway logistics platform in the city, said Hai Gang, head of the banner's foreign affairs and commerce bureau.

An industrial park for warehousing, cold-chain, e-commerce, and logistics is also being planned to facilitate the cargo trade.

BEIJING — The World Bank is pleased to announce the appointment of Mara Warwick as the World Bank’s new Country Director for China and Mongolia and Director for Korea, effective today. Based in Beijing, Ms. Warwick leads a team that is managing an evolving partnership with China, a growing program of support to Mongolia, and a deepening knowledge partnership with Korea focused on innovation and technology.

Ms. Warwick has a distinguished World Bank career, serving as Country Director for Tanzania, Malawi, Zambia, and Zimbabwe in her last post. She also has extensive experience in China, Mongolia and Korea, having worked as Portfolio and Operations Manager for these countries in 2012-2016. She has lived in China several times since 1994, including in Beijing when she was the World Bank’s Senior Urban Environment Specialist from 2006-2010.

Ms. Warwick also served in 2016-2020 as World Bank Country Director for Brunei, Malaysia, the Philippines, and Thailand. Previously she was Sector Coordinator for Sustainable Development in Türkiye. Trained as an environmental engineer, she has expertise in flood management, urban environmental services, and disaster risk management. Before joining the World Bank in 2003, she worked as an engineer in the private sector. Ms. Warwick received her B.E. in Civil Engineering from the University of Adelaide, Australia and her M.S. and Ph.D. in Environmental Engineering from Stanford University in the US.

“I am very pleased to come back to China, Mongolia, and Korea,” said Ms. Warwick. “Over the years, I have witnessed firsthand the significant developments in the region since the 1990s. I look forward to working closely with all three countries, as vital World Bank partners, to help address development challenges and strengthen knowledge sharing.”

An Australian national, Ms. Warwick succeeds Martin Raiser, who has moved to Washington, DC to take on the role of Vice President for South Asia.

Over the last forty years, the World Bank’s relationship with China has evolved from one where China was a recipient of World Bank financial and technical assistance, to one where China is now also a contributor to the World Bank. The Bank’s lending and analytical programs in China today are focused on global public goods and institutional reforms to scale up impact, with knowledge and advisory services expected to play a growing role. The lending program has focused on marine plastics, biodiversity and water pollution control in China’s largest rivers, green agriculture, green finance, and food safety. The analytical program is similarly targeting China’s green transition across sectors.

Over the last three decades, the World Bank has provided over US$1.4 billion in development financing to Mongolia. Today, the World Bank Group’s Country Partnership Framework for Mongolia guides the Bank’s work to support Mongolia in overcoming COVID-19 and new emerging crises while working toward a more sustainable, inclusive, and resilient recovery, with a strong focus on job creation and climate resilience.

The World Bank’s work in the Republic of Korea has evolved to match the country’s changing needs as it transformed from low-income to a high-income economy and a global leader in innovation and technology. Through the World Bank Group Korea Office, the World Bank hosts partnerships and joint projects with Korean partners to help developing countries enhance financial sector management, promote green growth innovation and share know-how about information and communication technology.

Within the framework of ‘Vision-2050’ long-term development policy and ‘Urban and Rural Policy’ of the government’s New Revival Policy, an objective of decentralization of Ulaanbaatar and establishment of satellite cities and new residential areas has been set. In this context, the engineering infrastructure work of ‘Khushigt Valley - New Settlement Zone’ commenced last Friday, August 12. Prime Minister L. Oyun-Erdene and parliament members attended the opening ceremony.

The Prime Minister stated, "Today, we are starting the construction of a new city in the Khushigt Valley and a diversified economic zone within the framework of the ‘New Revival Policy’. The government will further support new settlement areas in Darkhan-Uul, Orkhon, Umnugobi, Uvurkhangai aimags, and Baganuur and Nalaikh districts of the capital, solve the infrastructure problems and create a legal framework to attract private sectors and international investment. The Khushigt Valley development has the potential to be not only a new residential area, but also a special economic zone and an independent transportation and logistics hub. The Bogdkhan railway runs around the new settlement area, and the development projects are aligned."

Mongolia has not built a new city since 1980. After 40 years, the planning of a new city is in the process. As part of the infrastructure construction for the new residential area, the construction of water and electricity supply sources has started.

During the ceremony, Minister of Construction and Urban Development B. Munkhbaatar noted, "The plan of the new residential area was finalized and approved, with the issuance of technical solution, budget and investment. This year, due to the construction plan, more than MNT30 billion has been included in the state budget. Accordingly, the construction of an engineering network from five water wells in south to the airport is starting. Also, the construction of the 35 kW power transmission line has started today. To speed up the project implementation, the government is planning to allocate more than MNT200 billion in the next year's state budget in phases."

As a representative of the private sector, President of Tavan Bogd Group Ts. Baatarsaikhan said, "I am confident that enterprises will support and participate in the development of the new residential area. Our company plans to build a factory in this area and create 4,000 jobs.”

It is planned that, in the first turn, 35 thousand people will be settled in the new settlement area of ​​the Khushigt Valley. By 2040, it will be the region, where 150,000 people have settled, and business, tourism, transportation, logistics, production and services have developed along with highly active administrative, culture, education, health, and economic activities.

At the cabinet meeting dated August 10, 2022, as part of the decentralization of Ulaanbaatar, a decision was made to move some government institutions to Khushigt Valley.