A group of Chinese companies are investigating why a commodities storage site in northern China is holding only one third of the copper concentrate they were financing, according to people familiar with the situation.

Traders from more than a dozen mostly state-owned firms gathered in Qinhuangdao city this week after becoming aware of the missing material following concerns into the borrower’s finances, said the people, who asked not to be identified as they aren’t authorized to speak publicly.

The group has a total claim on 300,000 tons of concentrate worth about 5 billion yuan ($740 million), but there’s only 100,000 tons at the depot, the people said. That puts the dollar value of the missing material at about $490 million.

The copper discrepancy in Hebei province comes just months after a separate dispute, spanning several locations in southern China, over missing aluminum tied to $1 billion of lending. Scrutiny of commodities financing and warehouse operations in China is growing, especially as volatile global markets expose some of the more opaque funding arrangements to greater risk.

At the center of this latest case is Huludao Risun Trading Co., a medium-sized merchant that purchases between 800,000 and 1 million tons of imported copper concentrate a year for distribution to domestic Chinese smelters, said the people. The company typically relies on larger counterparties to finance the materials, and then repays the loans with interest and fees after finalizing the trade.

Nobody picked up several calls to the company’s main number, and there was no immediate reply to an email seeking comment.

Risky business

Commodities traders have faced a tougher environment this year as banks turn cautious in the wake of high-profile losses — especially in the nickel market — and huge price volatility exacerbated by Russia’s invasion of Ukraine. That’s encouraged alternative financing, in which smaller, privately-owned firms pledge their goods to large state-run traders to get funding for operations.

But that route is also exposed to risk as the growth model that’s sustained China’s economy for decades shows signs of strain. Some state-owned enterprises, including the country’s top steel mills, have asked units to cut back on operations — including third-party trading — to preserve cash and avoid liquidity crunches.

The impact on the spot concentrate market of the Qinhuangdao copper dispute could be limited, consultancy Mysteel said in a note on Wednesday. Chinese smelters who take material from this merchant should be able to use their existing inventory, while traders could re-route cargoes due to arrive at the Qinhuangdao site to other destinations, it said.

Rio Tinto is not concerned about China’s plans to centralize iron ore purchases and has strong ties with its customers, the Australia Chief Executive Officer for the global miner said on Friday.

Kellie Parker’s comments were in response to questions from the media about China Mineral Resources Group, a state-owned agency registered last month to centralize the import of raw materials required by its steelmaking industry.

The plans are aimed at gaining more clout with suppliers like Rio, BHP Group, Fortescue Metals Group, Vale and others over pricing.

“How the Chinese are organising themselves – they want some certainty about price and around what does that look like for them. And they’re very exposed to that price. So they’re organising themselves,” Parker told reporters after speaking at the Melbourne Mining Club.

“Of course the short-term price hurts them, so they want some certainty – as we want on our input products as well. So not concerned, but certainly working with them,” she said.

Parker said the company has good relationships with its customers and shareholders in China.

“We’d certainly like to meet them face to face when borders come down,” she added.

China is exposed to international iron ore prices as it must import nearly 80% of its annual consumption, a big share of it coming from Australia.

But a diplomatic spat between Australia and China over the pandemic has hurt relations, and increased Beijing’s concerns over resource security. The tensions have since eased, according to media reports.

“I think the other thing we have very much noticed in business is the thawing of the relationship between the two countries,” Parker said.

She said it was up to the two governments to work on those ties.

“But we are very appreciative of that thawing relationship so we can find new ways to work together,” she added.

(By Sonali Paul and Praveen Menon; Editing by Christopher Cushing)

On August 3, Deputy Minister of Food, Agriculture and Light Industry G.Batsuuri received Ambassador Extraordinary and Plenipotentiary of the European Union to Mongolia Axelle Nicaise.

During the meeting, Deputy Minister G.Batsuuri expressed interest in further expansion of economic, business, and investment cooperation with EU member states, and stimulation of bilateral cooperation in food safety, food production, agriculture, and animal husbandry, specifically;

- To export fermented product (water, drinks, Mongolian alcohol, fermented milk, etc.) and meat products to the European Union and get technical assistance,

-To develop cooperation with the EU countries, expand investment and technological cooperation, and support the implementation of joint projects, including the establishment of a factory to process baby milk, milk nutrition, fruit and berry nutrition, introduction of technical technology, registration of livestock and inclusion of prominent products such as Uvs seabuckthorn and honey in the list of geographical indication in the European Union,

- To cooperate in directions of training personnel and improving professional skill in order to fully analyze food safety indicators,

- And to support the implementation of a joint research project to improve the competitiveness of the leather industry, and the establishment of a technical service and technology transfer center for the leather industry in Mongolia.

13 measures and 22 development projects are planned to be implemented in phases as part of the implementation of the Energy Recovery, reflected in the New Recovery Policy. In this context, the construction work of the project ‘Grid energy storage’ is commencing today.

The project will be financed through a soft loan of USD 100 million and a grant of USD 3 million by the Asian Development Bank. Construction of the project will take 14 months and will be complete before the 2023 winter peak.

Within the scope of the project, a storage facility using Lithium-Ion type batteries with a capacity of 200 MWh, which is considered the largest in the world, will be installed and connected to the 110 kW ‘Songino’ substation. This will improve the stable and reliable operation of the energy system in the central region of Mongolia. It will also cover the shortcomings of the integrated grid, supply up to 200 MW of power, and reduce imported energy.

While participating in the opening of the project, Prime Minister L.Oyun-Erdene said, "Once this construction is put into operation, the independence of the central power system will reach a new level. In the context of energy recovery, renewable energy sources, including the construction of hydropower plants, will be made a priority, and we will make every effort to complete the construction of the Erdeneburen hydropower plant and start the Eg River hydropower plant project. Also, construction projects such as the expansion of Thermal Power Plant 3 to increase its capacity by 75 MW and upgrade to 250 MW, Tavantolgoi thermal power plant, Baganuur power plant, and Choibalsan thermal power plant to increase capacity by 50 MW will be kicked off without delay. Most recently, the construction of the 116 MW Amgalan thermal power plant, which will provide thermal energy for the eastern region of Ulaanbaatar city, has been started."

Minister of Energy N.Tavinbekh said, "The 200 MWh capacity rechargeable grid energy storage not only increases the capacity of the source, but also adjusts when fluctuations occur. It's a much-needed technology that our energy system never had before. There is a risk that the energy sector will have a hard time this winter. Preparations for this winter are ongoing at 60 percent”.

The contractor of the project was selected through an international open tender, and a turnkey contract was signed with the joint consortium of China's Jiangsu Zhongtian Technology Co.,Ltd and Zhongtian Energy Storage Technology Co,.Ltd, and consulting services are provided by Germany’s RWE Technology International GmbH.

120 temporary jobs will be created during the implementation of the project and 25 permanent jobs will be created after the project is operational.

Mongolian coal exports grew drastically by 180% from the year prior to 666,300 tonnes over the week of July 22-28, Mongolian media reported.

The volume mainly included 5,532 containers transported via road and 300 containers through railway.

The country has seen a 5.7% year-on-year rise in coal exports to 10.78 million tonnes since this year, thanks to the increased demand for the material amid the tightening global supply, especially in its largest buyer China.

Mongolia also logged a sharp rise of 63% in iron ore exports to 215,300 tonnes during the week, and the year-to-date accumulative exports fell 52% on the year to 2.24 million tonnes.

(Writing by Tammy Yang Editing by Harry Huo)

The fourth round of the 2022 Chess Olympiad saw many upsets. One of them was Norway drawing against Mongolia as the match finished with the result of 2-2. However, the Mongolian team had a victory in the pocket as it turned out that Aryan Tari incorrectly claimed a threefold repetition against Bayarsaikhan Gundavaa.

The Mongolian grandmaster had a completely winning position against Tari, but started repeating checks facing the time trouble. Tari’s draw claim was accepted by the arbiter, but it happened to be a mistake that finished with the Mongolian team appealing to the arbiter’s decision. The position wasn’t repeated three times, but only twice, and it seems that none of the players realized that during the game. Despite the arbiter’s mistake, the result of the match wasn’t changed after the appeal.

On the occasion of the 60th anniversary of Mongolia's accession to the United Nations, at the invitation of the President of Mongolia, UN Secretary-General Antonio Guterres will pay an official visit to Mongolia from 8 to 11 August.

In connection with this visit, Secretary-General Antonio Guterres sent a letter to President of Mongolia U.Khurelsukh.

In the letter, the Secretary-General expressed his gratitude to Mongolia for its active participation and contribution to the work of the United Nations. He stressed that he welcomed the initiatives put forward by the President of Mongolia in his speech at the 76th session of the UN General Assembly, and said that he would continue to discuss these proposals and initiatives during the visit. He also highlighted the fact that Mongolia has shown leadership in the international arena on the issue of landlocked developing countries and established the International Think Tank for Landlocked Developing Countries (LLDCs).

During the visit, Mongolia's participation in UN peacekeeping operations, SDGs, combating climate change, ensuring peace and security in the region and many other important issues will be discussed.

The Secretary-General's visit is also coinciding with the occasion of the 30th anniversary of Mongolia's declaration of nuclear-weapon-free status and the 20th anniversary of Mongolia's participation in peacekeeping operations.

The U.S. government, through the United States Agency for International Development (USAID) and the World Health Organization (WHO), handed over IT and medical equipment to Mongolia’s Ministry of Health’s National Center for Mental Health. The assistance, which will be distributed to psychological counseling units in nine district health centers in Ulaanbaatar, will help strengthen the capacity of healthcare workers to provide counseling and manage COVID-19-related mental health problems.

USAID Mongolia Senior Development Advisor Thomas Crehan joined partners at the National Center for Mental Health for the handover ceremony attended by Dr. G. Gankhuyag, Director, Division of Non-communicable Diseases Prevention and Control, Ministry of Health; Dr. V. Bayarmaa, Acting Director of the National Center for Mental Health; Dr. Ts. Undral, Director of the Public Health Division of the Ulaanbaatar City Health Department; and Dr. S. Bolormaa of WHO Mongolia.

“The mental health of our front-line workers plays an important role in ensuring the health of the entire population and increasing the chances of recovery of COVID-19 patients,” Mr. Crehan said. “As the country’s enduring partner and third neighbor, the United States, through USAID, is proud to support Mongolia’s journey to recovery against this global health crisis.”

This assistance is an important part of USAID’s partnership with WHO to strengthen the capacity of Mongolia’s health systems in response to the COVID-19 outbreak. The partnership is providing urgent medical equipment and critical devices to health care facilities, preventing the further spread of the disease, and improving essential health delivery and COVID-19 related healthcare services.

To date, the U.S. government has provided more than 24.8 billion MNT ($8 million) to help Mongolia respond to the pandemic.

No corner of the world was untouched by Beatlemania. The band and their iconic mops swept through New Zealand in 1964. Lennon left minus a clump of hair after being mobbed by women at the Auckland Town Hall.

There are places they'll remember.

The music of the Fab Four reverberates across the universe. Even in the places they were banned from visiting. From Cuba to Mongolia you'll find public statues of John, Paul, George and Ringo rocking out.

We've strung together a magical mystery tour of Beatle sites for an international pilgrimage.

Back in the USSR

Despite rumours sparked by their song USSR, it was not until the fall of the Berlin Wall and the break-up of the band that Ringo Starr became the first Beatle to play Russia in 1998. Their music was banned behind the Iron Curtain but this didn't stop them from becoming superstars. Bootlegged records helped their music spread where the band could not go.

After his death in 1980, the John Lennon Wall "Lennonova zed" in Prague was painted in his memory. You'll also find statues - of varying quality - across the former communist bloc, including in Almaty in Kazakhstan. There are also statues in Ulaanbaatar in Mongolia, and a statue of Lennon complete with wire-rimmed glasses in Havana, Cuba.

In 1968 the Beatles went on a spiritual tour of Uttarakhand in northern India, following the death of manager Brian Epstein.

The ashram they visited, Chaurasi Kutia, fell into disrepair in the early 2000s but has since been restored as a gallery referred to as the "Beatles Ashram". Visitors can pay $13 for a visit which includes yoga, meditation and contemplation of odder inclusions in the Beatles' discography.

After Liverpool, London was a second home to the Beatles. Your first stop - as per the highway code - should be at the Abbey Road Studios. Or, as locals call it, "That bloody Beatles crossing."

The zebra crossing to the recording studios that appeared on the Abbey Road album cover is now chocka from dawn to dusk with tourists recreating the picture. Other stops not to be missed include 3 Savile Row, the site of the band's last ever live concert - on the rooftop of Apple Studios in 1969 - and Marylebone Station, the black and white station through which the band escaped hordes of screaming girls in A Hard Day's Night.

Hamburg

Hamburger Hafen was the "city that built the Beatles". Working in post-war Germany, they booked their first gigs in the Kaiserkeller and Star-Club. Playing as a cover band, the Beatles were booked to play American hits, dressed as rockabillies in leather and slicked-back hair.

Lennon once said the Beatles were "born in Liverpool, but grew up in Hamburg".

Pauli, the district where the band was based, is now home to a Beatles-Platz square and several Beatles-themed musical bar crawls.

Aug. 3 (Xinhua) -- Mongolia's central bank said Wednesday that it purchased a total of 9.7 tons of gold from legal entities and individuals in the first seven months of this year.

As of July, the bank's average gold purchase price had been 185,224.93 Mongolian tugriks (58 U.S. dollars) per gram, the Bank of Mongolia said in a statement.

Purchasing gold is one of the key ways for the central bank to ensure the country's economic stability by consistently increasing foreign currency reserves, said the bank.

Due to the COVID-19 pandemic and the Ukraine crisis, Mongolia's forex reserves fell to 2.8 billion dollars in July, down by 1.7 billion dollars from the beginning of this year, according to the central bank.

Central banks across the world typically hold gold as part of their foreign exchange reserves.

The Mongolian central bank plans to purchase at least 24 tons of gold in 2022 to increase the country's forex reserves.