Students of Ulaanbaatar took third place at the 6th International Olympiad of Metropolises with a team score.

Teams from 35 cities competed in chemistry, physics, mathematics, and informatics in the Olympiad.

A team of eight 14-18-year-old students represented Ulaanbaatar in the Olympiad with two students participating in each event and won two gold, one silver, and two bronze medals. Specifically, student of School No.1 B.Munkhtselmeg won gold in mathematics, Selbe School’s B.Gerel gold in chemistry, Orchlon School’s Ts.Taikhar bronze in chemistry Sant School’s B.Bilguun silver in physics, and Sh.Bilguudei bronze in informatics.

Moreover, Ulaanbaatar’s team won prize in a blitz contest held as part of the Olympiad, which required the teams to solve 80 tasks in 2 hours.

MONTREAL, Dec. 13, 2021 /CNW/ - Turquoise Hill Resources Ltd. ("Turquoise Hill" or the "Company") today noted recent media coverage regarding ongoing negotiations between the Government of Mongolia (the "Government"), Rio Tinto and the Company. The Company and Rio Tinto have made a joint offer to the Government of Mongolia which aims to reset the relationship and allow all parties to move forward together. The offer includes, among other elements, a proposal to forgive and write-off the entirety of the approximately US$2.3 billion carry account loan owing by the Mongolian-owned shareholder (Erdenes) to the Company and cancellation of the UDP agreement on a go-forward basis. The offer follows on months of discussions between Turquoise Hill, Rio Tinto and the Government of Mongolia to understand the Government's issues and priorities, deliver greater economic value to Mongolia and build a stronger partnership for a prosperous future for all.

Turquoise Hill remains committed to working with the Government of Mongolia to advance the Oyu Tolgoi project for the benefit of all stakeholders, including securing approval for the commencement of the undercut as quickly as is practical following the entering into of a definitive agreement among the parties. Negotiations continue and remain subject to required approvals, with all parties focused on being in a position to finalise an agreement. A further market update will be provided as and when appropriate.

Forward-looking statements and forward-looking information

Certain statements made herein, including statements relating to matters that are not historical facts and statements of the Company's beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements and information relate to future events or future performance, reflect current expectations or beliefs regarding future events and are typically identified by words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "plan", "estimate", "will", "believe" and similar expressions suggesting future outcomes or statements regarding an outlook. These include, but are not limited to, statements and information regarding: the likelihood of the Company being able to achieve, in the near or mid-term, a definitive agreement with the Government of Mongolia and Rio Tinto that would settle various outstanding material matters that are critical to progressing the Oyu Tolgoi project and the corresponding likelihood of the undercut decision being able to be made reasonably shortly thereafter; the ability of Oyu Tolgoi LLC ("OT LLC") to maintain critical activities in the OT underground mine development project and to sustain work on the development of the OT underground mine as and when the partial and short-term bridging budget approved by the board of directors of OT LLC at the end of November 2021 shall approach being fully spent or committed in mid-January 2022; the approval or non-approval by the OT Board of any future necessary additional investment and the likely consequences on the timing and overall economic value of the OT project, including slowdown on the underground development and potential further delays to first sustainable production; in the event a definitive agreement with the Government of Mongolia is not entered into in the near term, the ongoing negotiations with, and the nature of the Company's relationship and interaction with, the Government of Mongolia on the continued operation and development of OT, including with respect to the Definitive Estimate and the potential termination, amendment or replacement of the 2009 Investment Agreement among Turquoise Hill, the Government of Mongolia, OT LLC and an affiliate of Rio Tinto ("IA") or the Oyu Tolgoi Mine Development and Financing Plan ("UDP") as well as the willingness of the Government of Mongolia to further engage in meaningful discussions with the Company, Rio Tinto and OT LLC; the willingness and ability of the parties to the IA or the UDP to amend or replace either such agreement; the implementation and successful execution of the funding plan that is the subject of the Heads of Agreement between the Company and Rio Tinto entered into in April 2021 ("HoA") and the amount of any additional future funding gap to complete the Oyu Tolgoi project and the amount and potential sources of additional funding required therefor, all as contemplated by the HoA, as well as potential delays in the ability of the Company and OT LLC to proceed with the funding elements contemplated by the HoA as a result of delays in approving or non-approval of any future necessary additional investment by the OT Board; the expectations set out in the 2020 Oyu Tolgoi Technical Report ("OTTR20"); the timing and ultimate resolution of certain non-technical undercut criteria; the timing and amount of future production and potential production delays; statements in respect of the impacts of any delays on achieving first commercial production and on the Company's cash flows; expected copper and gold grades; the merits of the class action complaints filed against the Company in October 2020 and January 2021, respectively; the likelihood that the Company will be added as a party to the international tax arbitration brought by OT LLC against the Government of Mongolia and the merits of its defence and counterclaim; liquidity, funding sources and funding requirements; the amount of any funding gap to complete the OT project; the amount and potential sources of additional funding; the Company's ability to re-profile its existing project debt in line with current cash flow projections; the amount by which a successful re-profiling of the Company's existing debt would reduce the Company's currently projected funding requirements; the Company's ability to raise supplemental senior debt; the timing of studies, announcements and analyses; status of underground development, including any slowdown of work; the causes of the increase in costs and schedule extension of the underground development; the mine design for Panel 0 of Hugo North Lift 1 and the related cost and production schedule implications; the re-design studies for Panels 1 and 2 of Hugo North Lift 1 and the possible outcomes, content and timing thereof; expectations regarding the possible recovery of ore in the two structural pillars, to the north and south of Panel 0; the possible progression of a state-owned power plant ("SOPP") and related amendments to the Power Source Framework Agreement ("PSFA") as well as power purchase agreements and extensions thereto; the timing of construction and commissioning of the potential SOPP; sources of interim power; the continuing impact of COVID-19, including any restrictions imposed by health or governmental authorities relating thereto on the Company's business, operations and financial condition, as well as delays and the development cost impacts of delays caused by the COVID-19 pandemic; capital and operating cost estimates; mill and concentrator throughput; the outcome of formal international arbitration proceedings; anticipated business activities, planned expenditures, corporate strategies, and other statements that are not historical facts.

Forward-looking statements and information are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company will operate in the future, including the price of copper, gold and silver; projected gold, copper and silver grades; anticipated capital and operating costs; anticipated future production and cash flows; the anticipated location of certain infrastructure in Hugo North Lift 1 and sequence of mining within and across panel boundaries; the likelihood of the Company being able to achieve, in the near or mid-term, a definitive agreement with the Government of Mongolia and Rio Tinto that would settle various outstanding material matters that are critical to progressing the Oyu Tolgoi project and the corresponding likelihood of the undercut decision being able to be made reasonably shortly thereafter and, more generally, the status and nature of the Company's relationship and interactions and discussions with the Government of Mongolia on the continued operation and development of OT (including with respect to the causes of the increase in costs and schedule extension of the underground development) and OT LLC internal governance (including the outcome of any such interactions or discussions); the availability and timing of required governmental and other approvals for the construction of the SOPP; the ability of the Government of Mongolia to finance and procure the SOPP within the timeframes anticipated in the PSFA, as amended, subject to ongoing discussions relating to a standstill period; the willingness of third parties to extend existing power arrangements; the willingness and ability of the parties to the IA or the UDP to amend or replace either such agreement; the nature and quantum of the current and projected economic benefits to Mongolia resulting from the continued operation of OT; the implementation and successful execution of the funding plan that is the subject of the HoA and the amount of any additional future funding gap to complete the OT project as well as the amount and potential sources of additional funding required therefor, all as contemplated by the HoA.

Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements and information include, among others: copper, gold and silver price volatility; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical recoveries; development plans for processing resources; public health crises such as COVID-19; matters relating to proposed exploration or expansion; mining operational and development risks, including geotechnical risks and ground conditions; litigation risks, including the outcome of the class action complaints filed against the Company; the outcome of the international arbitration proceedings; regulatory restrictions (including environmental regulatory restrictions and liability); OT LLC or the Government of Mongolia's ability to deliver a domestic power source for the OT project within the required contractual time frame; communications with local stakeholders and community relations; activities, actions or assessments, including tax assessments, by governmental authorities; events or circumstances (including public health crises strikes, blockades or similar events outside of the Company's control) that may affect the Company's ability to deliver its products in a timely manner; currency fluctuations; the speculative nature of mineral exploration; the global economic climate; global climate change; dilution; share price volatility; competition; loss of key employees; cyber security incidents; additional funding requirements, including in respect of the development or construction of a long-term domestic power supply for the OT project; capital and operating costs, including with respect to the development of additional deposits and processing facilities; defective title to mineral claims or property; and human rights requirements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. All such forward-looking statements and information are based on certain assumptions and analyses made by the Company's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are reasonable and appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements or information.

With respect to specific forward-looking information concerning the continued operation and development of OT, the Company has based its assumptions and analyses on certain factors which are inherently uncertain. Uncertainties and assumptions include, among others: the likelihood of the Company being able to achieve, in the near or mid-term, a definitive agreement with the Government of Mongolia and Rio Tinto that would settle various outstanding material matters that are critical to progressing the Oyu Tolgoi project and the corresponding likelihood of the undercut decision being able to be made reasonably shortly thereafter and, more generally, the status and nature of the Company's ongoing negotiations, relationship and interactions with the Government of Mongolia on the continued operation and development of OT (including with respect to the causes of the increase in costs and schedule extension of the underground development) and OT LLC internal governance (including the outcome of any such interactions or discussions); the sufficiency of the partial and short-term bridging budget approved at the end of November 2021; the approval or non-approval by the OT Board of any future necessary additional investment, and the likely consequences on the timing and overall economic value of the OT project, including slowdown on the underground development and significant delays to first sustainable production; the willingness and ability of the parties to the IA and the UDP to amend or replace either such agreement; the timing and cost of the construction and expansion of mining and processing facilities; the timing and availability of a long-term domestic power source (or the availability of financing for the Company or the Government of Mongolia to construct such a source) for OT; the implementation and successful execution of the funding plan that is the subject of the HoA and the amount of any additional future funding gap to complete the OT project as well as the amount and potential sources of additional funding required therefor, all as contemplated by the HoA; the nature and quantum of the current and projected economic benefits to Mongolia resulting from the continued operation of OT; the potential impact of COVID-19, including any restrictions imposed by health and governmental authorities relating thereto, as well as the development cost impacts of delays caused by the COVID-19 pandemic; the impact of changes in, changes in interpretation to or changes in enforcement of, laws, regulations and government practices in Mongolia; the availability and cost of skilled labour and transportation; the obtaining of (and the terms and timing of obtaining) necessary environmental and other government approvals, consents and permits; delays and the costs which would result from delays, including delays caused by COVID-19 restrictions and impacts and related factors, in the development of the underground mine (which could significantly exceed the costs projected in OTTR20); projected copper, gold and silver prices and their market demand; and production estimates and the anticipated yearly production of copper, gold and silver at OT.

The cost, timing and complexities of mine construction and development are increased by the remote location of a property such as OT. It is common in mining operations and in the development or expansion of existing facilities to experience unexpected problems and delays during development, construction and mine start-up. Additionally, although OT has achieved commercial production, there is no assurance that future development activities will result in profitable mining operations.

Readers are cautioned not to place undue reliance on forward-looking information or statements. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Events or circumstances could cause the Company's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are included in the "Risk Factors" section in the Company's annual information form for the year ended December 31, 2020 ("AIF"), as supplemented by the "Risks and Uncertainties" section in the Company's management's discussion and analysis for the third quarter ended September 30, 2021 ("MD&A").

Readers are further cautioned that the list of factors enumerated in the "Risk Factors" section of the AIF and in the "Risks and Uncertainties" section of the MD&A that may affect future results is not exhaustive. When relying on the Company's forward-looking statements and information to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements and information contained herein are made as of the date of this document and the Company does not undertake any obligation to update or to revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.

On December 13, Rio Tinto and Turquoise Hill Resources sent an official letter addressed to Prime Minister L. Oyun-Erdene, agreeing the proposals and demands of the Government’s working group and confirming to write off Mongolia's USD 2.3 billion debt for its share (34 percent) in the Oyu Tolgoi copper-gold project, and to be fully responsible for the additional costs required until the underground mine is commissioned, which means Erdenes Oyu Tolgoi LLC, the state-owned company that holds the government’s equity in the project will not incur additional debts. Moreover, Rio Tinto expressed its readiness to cancel the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’, signed in 2015, and ‘Additional financing plan for Oyu Tolgoi underground mine development’.

The letter reads,

“We have recently held a meeting with You, Mr. Oyun-Erdene Luvsannamsrai, and Chairman of State Great Khural and members of the Temporary Committee to exchange views on improving the Oyu Tolgoi project’s benefits in the interests of the Mongolian people, cancelling the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’, writing off Erdenes Oyu Tolgoi’s debts as well as further making the project activities more transparent.

Taking into account your proposals, we are ready to take the following measures based on the discussions at the Board of Investors. These include:

-To write off Mongolia's USD 2.3 billion-debt for its share (34 percent) in the Oyu Tolgoi copper-gold project. With the debt write-off, the previously estimated USD22 billion-debt will not be incurred, which will increase the value of Erdenes Oyu Tolgoi’s 34 percent stake, and the timeline to start receiving dividends gets closer for Mongolia;

- To cancel the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’ and the ‘Additional financing plan for Oyu Tolgoi underground mine development’;

- To conduct an independent audit into the financing of the project's underground expansion;

-The Investor also agrees to cover the costs required until the first half of 2023, when the underground mine is commissioned, not incurring additional debts to Erdenes Oyu Tolgoi LLC;

-To take measures to improve control of the underground mining project through the improvement of governance of Oyu Tolgoi LLC, and the company will pay the related costs in accordance with the mutually agreed terms; establish an agreement on power supply from the energy grid of Mongolia; as well as to work together in improving the project's environment, society and governance.

The letter also reads that “the above decisions were difficult to make and represent our final offer. The investors are transferring significant value to Mongolia, which we believe will be the basis for a long-term, trusting partnership. By doing so, we believe that Parliament Resolution No. 92 of 2019 on ‘Ensuring interests of Mongolia in the exploitation of the Oyu Tolgoi gold-copper mine’ has been implemented.”

Rio Tinto also seeks to resolve arbitration disputes between the government and Oyu Tolgoi LLC by consensus within the working group.

“Our shared goal is to start a complex underground caving process at Oyu Tolgoi-known as undercutting- in January 2022. Thus, we would like to work together within the working group to determine the prerequisites for the start of underground caving process."

As 2021 draws to a close, cryptocurrencies are now just a stone’s throw away from becoming a fully valid part of mainstream finance, according to some analysts.

This year was marked by huge events for crypto: El Salvador’s adoption of bitcoin as legal tender, China’s major crackdown on crypto-mining, India’s threat to ban all private cryptocurrencies, big investors entering the crypto game, and Facebook going all-in with its metaverse. And, overall, it was a time of wild swings and record prices.

If countries take a hostile stance, adoption will be much slower, predicts Witek Radomski, co-founder of blockchain platform Enjin.

The price of ether – which is second only to bitcoin in terms of market capitalization – will rise at a much faster rate than its rival, due to the move to proof of stake, according to Tom Higgin, CEO at asset management platform Gold-I.

Initial game offerings will become popular, says Nick Saponaro, co-founder and CEO of decentralized payment ecosystem Divi Project, and larger organizations such as GameStop and Epic will begin making plays at some point next year.

Bitcoin will gain the upper hand over stocks in 2022, opines Mike McGlone, head crypto analyst at Bloomberg Intelligence.

A remote-first Fortune 500 company will declare its official headquarters to be on one of the competing metaverses, predicts Brandon Arvanaghi, CEO of crypto startup Meow.

And the metaverse will become the new interface via which people engage with the web and each other, says Justin Banon, co-founder of decentralized network Boson Protocol.

Hackers drain nearly $200 million from major crypto exchangeREAD

Most people will conduct their day-to-day jobs partially in the metaverse, according to Shane Molidor, chief revenue officer at digital asset financial platform AscendEx.

There will be a battle between the metaverse used by crypto-natives and those launched by gaming and corporate entities such as Meta, predicts Brock Pierce, chair of the Bitcoin Foundation.

Investors will start using bots to make purchases during non-fungible-token minting events, which may shut out less sophisticated users, opines Ethan McMahon, economist at blockchain data platform Chainalysis.

Crypto-economy market capitalization will rise from a peak of $3 trillion in 2021 to over $7.5 trillion, according to Rohit Talwar, CEO at insight and research business Fast Future, and at least 25 nations will be using a central bank digital currency by the end of 2022, either their own or one issued by another country, such as China’s digital yuan.

Banks will look to crypto for fraud trends, says Chris Stephens, head of fraud and security analytics at identification platform Callsign.

The world’s first billion-dollar hack is on the cards, as decentralized finance activity burgeons, according to Benjamin Whitby, who oversees regulatory affairs at cross-chain protocol Qredo.

Mongolia is recalling its diplomats in South Korea over a case of 13 year-old Mongolian girl assaulted and beaten by senior Korean students.

Minister of Foreign Affairs B.Battsetseg presented a proposal to the President on Friday (10 December) to recall Mrs. N.Erdenetuya, Ambassador of Mongolia to South Korea and Ts.Unurzaya, Chief of Consul in Busan for a responsibility of handling the case.

According to law, the President has authority of Ambassadors appointment and removal. Therefore, President U.Khurelsukh will decide on whether to recall N.Erdenetuya. Still, the final decision of N.Erdenetuya’s removal must be approved by parliament. However, the Foreign Minister has authority of recalling the Consul. Therefore, Ts.Unurzaya will be removed from the post of Chief of Consul in Busan.

N.Erdenetuya was appointed as an Ambassador of Mongolia to South Korea in May, 2020. She has 26 years of working experience in civil service- 23 years as a diplomat. Previously, B.Khurts, former Head of the General Intelligence Agency (GIA) was nominated for the post of Mongolian Ambassador to South Korea; however, declined by former President Kh.Battulga.

As for Ts.Unurzaya, she is a daughter of Sh.Tsogtoo, former judge of Mongolian Constitutional Court and close to former President Kh.Battulga.

-The bully case-

The four students living in Yangsan, South Gyeongsang Province, whose identities were withheld, have been accused of beating the 13-year-old girl for about six hours starting at midnight on 3 July, 2020. The victim was a middle school student who moved to Korea from Mongolia about 10 years ago.

They tied the victim’s hands and legs and punched her in the head and face multiple times, and wrote racial slurs on her forehead, according to Yangsan Police Station. The students filmed the act and later distributed the video among fellow students, offering to sell the footage for 5,000 won ($4), according to police.

The police said they have handed two students over to prosecutors after charging them with group assault, 28 October. The other two were sent to the juvenile department of Ulsan District Court, as minors aged 14 or younger cannot be held criminally responsible under current laws.

A public petition was posted on the Cheong Wa Dae website, calling for harsh punishment for the students and the disclosure of their identities.

Mongolian athlete G.Bolor-Erdene won the gold medal in men’s 65 kg at the World Para Taekwondo Championships taking place in Turkey.

By defeating his Italian competitor in the final round, G.Bolor-Erdene claimed his fifth World Champion title. The world championships participated by 250 athletes from 41 countries wrapped up on December 12.

ULAANBAATAR, Dec 13 (Reuters) - Anglo-Australian mining giant Rio Tinto (RIO.AX)(RIO.L) has agreed to write off Mongolia's outstanding $2.3 billion debt for its share in the massive Oyu Tolgoi copper-gold project, Prime Minister Oyun-Erdene Luvsannamsrai said on Monday.

Oyun-Erdene said his office had received a letter from Rio Tinto agreeing to write off the debt, conduct an independent audit into the financing of the project's underground expansion and improve governance.

"We have proposed that the benefits of Oyu Tolgoi be in the interests of the Mongolian people," Oyun-Erdene told a briefing.

He said Rio also agreed the much-delayed expanded underground section of the mine would be completed by 2023.

Oyu Tolgoi is Mongolia's biggest investment project but it has been subject to frequent disputes and delays, with Mongolian politicians repeatedly calling for the original investment agreement to be redrawn.

A Rio Tinto spokesman said in a statement the offer made to Mongolia "aims to reset the relationship and allow all parties to move forward together", without providing details of the debt writedown offer.

"The offer reflects months of discussion between Rio Tinto, TRQ (subsidiary Turquoise Hill Resources (TRQ.TO)) and the Government of Mongolia to understand the Government's issues and priorities, deliver greater economic value to Mongolia and build a stronger partnership for a prosperous future for all.”

Reporting by Anand Tumurtogoo; Additional reporting by Sonali Paul in Melbourne; Writing by David Stanway; Editing by Christopher Cushing and Lincoln Feast.

Rio Tinto has agreed to write off $2.3bn it lent to Mongolia to cover the government’s share of the development costs for the giant Oyu Tolgoi copper mine.

The debt write off is part of a wider offer that the FTSE 100 company hopes will bring an end to longstanding tensions that have blighted the project, which is running late and over budget.

As well as the debt write-off, Rio has offered to terminate the underground development plan, agreed to an independent audit of the project’s financing and will make an additional investment, according to a letter seen by the Financial Times. This should allow the next phase of the mine’s development to begin in January.

Once complete, Oyu Tolgoi will be one of the biggest copper mines in the world, producing almost 500,000 tonnes of the metal. Rio is developing the project through its subsidiary Turquoise Hill Resources.

In a tweet, Mongolia’s Prime Minister Oyun-Erdene Luvsannamsrai said a government working group had accepted the offer and there was now “opportunity for mutually beneficial co-operation. However, the deal will need to be ratified by parliament”.

In an statement, the company said: “Rio Tinto and Turquoise Hill Resources have made an offer to the Government of Mongolia which aims to reset the relationship and allow all parties to move forward together.”

“The offer reflects months of discussion between Rio Tinto, TRQ and the Government of Mongolia to understand the Government’s issues and priorities, deliver greater economic value to Mongolia and build a stronger partnership for a prosperous future for all,” it added.

Just under a decade ago, I wrote a column about an extraordinary new initiative, courtesy of Fendi, called Pesce d’Aprile, in which a customer could travel to a crocodile farm in Singapore, select the reptile from which their handbag would be made and then follow its progress via an app. Billed as the fashion equivalent of “know your food,” it was the first of its kind.

It was also entirely made up (by me): an April Fool’s joke invented to highlight the lengths to which fashion brands would go to distinguish themselves — and the fact that, increasingly, customers were interested in the origin of their products.

Except now, finally, the joke’s on me.

Loro Piana, the luxury brand known for its plush, understated knits that look as if they have been woven from liquidized bank notes, has embarked on a program that will allow customers to trace every step of production of one of its baby cashmere sweaters from goat to store.

It may seem like a simple thing: How can a brand not know exactly where and how its products are made? Yet the fashion supply chain is so complicated, its many moving parts spread out over so many countries and processes, that for most of us the origin stories of our clothes are almost entirely opaque.

“We have a belief that companies know where things are coming from, and in actual fact many companies lost that ability quite a long time ago,” said Maxine Bédat, the founder of the New Standard Institute, a nonprofit founded to define and create a framework for fashion’s sustainability claims. “The more products you add to your offering, the more diffuse and complicated the manufacturing becomes, and as a result it is very rare today for fashion companies to both be able to trace their full supply chains and be willing to disclose them.”

Consider the fact that the average merino wool sweater will travel 18,000 miles over the course of its production before it reaches a store shelf, according to Bamford, the British farm-to-table luxury brand.

Tracing that journey is easier, of course, if a brand is small enough to do everything itself or if a new brand is built with transparency in mind. But few founders were thinking that way even a decade ago, and almost no brand owns every step of the process of creation, from farm to finished product.

For the consumer in search of a holiday present, that means it is extremely difficult to know, as you browse the shelves looking for the perfect chunky knit or comfortable wrap, whether what you are seeing has been made responsibly, with environmental and social factors in mind.

That’s why, two years ago, Loro Piana, which was bought by LVMH for $2.6 billion in 2013, decided to pin down its processes so that it can now include a garment tag telling potential buyers that “this knitwear has been coming from a bail that was taken in that specific region in that year or that month of that year,” said Fabio d’Angelantonio, the former Loro Piana chief executive (he was replaced in late October by Damien Bertrand). And that bail originated on the backs of that herd.

The project was introduced earlier this year with Loro Piana’s vicuña products and will be extended to include cashmere and baby cashmere, the company’s biggest sellers. Given that the average Loro Piana cashmere sweater will be touched by approximately 100 hands in at least three countries as it makes its way from Mongolia to Italy to its final store, and involve more than 13 different processes over a period of 18 months to two years, that was no small undertaking.

Arguably such traceability was possible only because the luxury brand has the … well, luxury, of knowing its herders — it has been sourcing, spinning, weaving and finishing cashmere since 1924 — and because its extremely well-heeled customers are willing to pay for the information. And Loro Piana is gambling that increasingly it will be part of the fashion value proposition. That each physical gift should also bring with it the gift of knowledge.

In place of trickle-down economics, think of it as trickle-down transparency. Here’s how it begins.

At the beginning of spring, cashmere collection begins in Inner Mongolia in northern China and in Mongolia. In many cases, the herders have worked with Loro Piana for generations. The process occurs only once a year.

The goats have nature to thank for their annual buzz-cut. Cashmere goats are double-coated animals, which means they produce two kinds of hair: external and underfleece. The underfleece protects goats from the extreme cold temperatures in the region and starts to grow in September and October, when temperatures begin to drop. By May, the underfleece has grown to its fullest potential and is ready to be collected by the herders. The goats are not losing much — the fleece would fall off naturally.

Fun fact: All cashmere is wool, but not all wool is cashmere. Wool is a catchall term used to describe the soft undercoat of some animals (sheep, alpaca, goats, etc.). Cashmere refers specifically to the highly prized fiber of cashmere and some other breeds of goats.”

Across the region, ranchers like Ha Si Ba Gen earn a living raising and herding goats. The country of Mongolia produces a third of the world’s cashmere, and the luxury fabric accounts for 40 percent of the country’s nonmineral exports.

Animal and labor conditions are audited by “accredited third parties,” a representative of Loro Piana told The Times. After all, as Mr. d’Angelantonio, the former chief executive of the company, said, it was in everyone’s best interest to maintain excellent conditions. “The wool of a happy sheep is a better wool than a very stressed sheep,” he said.

When the haircuts are over, herders typically sell the wool to a third-party collector, who will then sell the materials — a mix of cashmere wool from dozens, if not hundreds, of local farms — to various brands. In this case, the cashmere is delivered to Alashan Zuo Qi Dia Li Cashmere in Inner Mongolia, a third-party “cooperation” partner in the Loro Piana production chain since 2005. There the wool is cleaned and inspected.

Though Loro Piana had explored building its own facilities in Inner Mongolia, it has instead formed long-term relationships with local partners. A representative of the company explained that it has sought a production facility in China suited to its specific needs, but the difficulties of operating there as a foreign company have proved insurmountable. As a result, Alashan Zuo Qi Dia Li Cashmere plays a key role in the creation of Loro Piana garments, taking responsibility for the first round of cleaning before the wool even leaves the area.

From there, the cleaned cashmere is trucked to Beijing or Ulaanbaatar, the capital of Mongolia, for strenuous quality-control testing. Keen eyes check for the occasional dark hair hidden in the white wool. (These hairs cannot be dyed and are harder to spot and remove later on.) Then the bales of cashmere are transported to a laboratory in Roccapietra, Italy, (population: 646) for yet another round of quality control.

Next stop: the Loro Piana factory in Quarona, Italy, which was founded by the Loro Piana family in 1924. The lots (an industry measurement) of cashmere are transferred to a blending machine, which opens up the fibers and lays them flat for the first time. This process allows for easier manipulation.

After getting carded (disentangled and cleaned), the fibers are loaded into a spinning machine. Simply put, this is where the fibers become yarn and the yarn becomes fabric.

Now the yarn is ready to take on some color. Loro Piana uses exclusive formulations of dyes for its garments.

Actual garments are finally ready to be constructed, a process that is usually performed by state-of-the-art knitting machines. Once the garments are finished, they are inspected by expert eyes. Finally, they are packed up to be distributed to Loro Piana’s 178 physical stores, e-commerce channels and various retail partners.

The time span between collecting a baby goat’s underfleece and a sweater landing on a store shelf is up to two years. Officials at Loro Piana estimate that more than a hundred hands can play a role in the creation of one garment. A Loro Piana cashmere sweater typically starts at $1,000, and more complicated designs cost between $2,000 and $3,000. And the goats grow out their hair again.

 

The Ministry of Health reported today that 94 СOVID-19 infections and three deaths were recorded in the last 24 hours. This is the lowest daily number of cases recorded in Mongolia since March.

In detail, 75 cases were reported in Ulaanbaatar city, with 17 cases in 21 provinces and two imported cases.

As of today, the total number of confirmed COVID-19 cases in Mongolia stands at 386,635.

Of a total of 3168 patients are currently undergoing treatment at hospitals, there are 1202 patients in mild, 1560 in serious, 332 in critical, and 74 in very critical condition.