Mongolia recorded 1,015 new coronavirus cases in the past 24 hours after 11,145 PCR tests performed nationwide, the Ministry of Health reported on April 29.

864 new cases were confirmed in Ulaanbaatar city, one was hospital-acquired case, one case was imported, and 149 cases were detected in rural regions, including Zavkhan, Darkhan-Uul, Orkhon, Arkhangai, Bulgan, Uvurkhangai, Gobisumber, Dundgobi, Gobi-Altai, Khovd, Selenge and Tuv aimags.

These new cases bring the national infection tally to 34,623.

686 coronavirus patients were recovered, making the number of COVID-19 recoveries 18,719.

As of April 29, a total of 4,786 coronavirus patients are being treated at hospitals. Another 3,388 patients are being treated at home.

5 new COVID-19 related deaths occurred during the day raising the country's death toll to 102. a

Ard Financial Group JSC (Ard) and its subsidiary Ard X LLC (DAX) have invested in and started a strategic partnership with the Mongolian Securities Exchange. This partnership opens the door for the development of the stock market and non-bank financial sector in Mongolia.

Ganhuyag, Ard's CEO, said: "The stock market has been developing in Mongolia for 30 years. With its mission to Build the Investor Nation, Ard and its affiliated public companies have played a crucial role in developing the stock market. We believe that the new Securities Exchange and our experience in this field will bring the Mongolian stock market to the international players. To do this, we have a lot of work to do, such as creating a modern online system and building a strong team. By the way, I would like to call on all securities companies to work together for the development of the stock market."

The Mongolian Securities Exchange (MSX), was established on May 1, 2015, is a regulated securities exchange operating in Mongolia. Under the motto "Move Every Asset," it aims to help develop the Mongolian financial market by introducing world-class exchange services.

The Mongolian Securities Exchange is regulated by the Law on Securities Market, the regulations approved by the Financial Regulatory Commission within the framework of this law, the license to conduct trading and settlement activities in the securities market, and the main operating procedures of the Mongolian Stock Exchange

DAX is part of Ard Financial Group, a digital assets exchange, which started operating on December 14. It offers digital exchange services according to the standards of international crypto platforms and facilitates cryptocurrency trading. Since its inception, a total of 860,000 customers have traded over MNT 1 trillion worth of assets on the Exchange. It aims to expand its operations internationally.

Ard Financial Group is a diversified financial services holding company with the overarching goal of increasing its shareholders’ equity through investing in and developing leading financial services and technology companies. Our investment portfolio consists of companies such as Ard Insurance, Ard Credit, Ard Securities, Ard Life, Ard Assets, Ard Management, Ard Bit, TenGer Systems, MEC Partners (ardshop.mn), Mongol Post, Ard Holdings International, Ard Leasing, Ard Properties and Ard Realty. Ard App, Ard Fintech, ArdCoin, Ard Cash, ArdMoney, CryptoNation and Ard Digital Bazaar are proprietary digital products based on artificial intelligence and blockchain technology.

Companies in Ard Financial Group’s portfolio that are also listed on the MSE: MSE: AARD (03260) Ard Financial Group (formerly Jinst Uvs/Investor Nation), MSE: AIC (05480) Ard Insurance, MSE: ADB (05509) Ard Credit, MSE: MNP (05412) Mongol Post and MSE: XOC (4001) National Privatization Fund.

Source: www.ardholdings.com

Transparency International has released its 2020 Corruption Perceptions Index (CPI) based on experts and the perceptions of business people of corruption in 180 countries. We spoke with O. Batbayar, CEO of “Transparency International Mongolia”, about the level of corruption within Mongolia according to the Corruption Perceptions Index.

He said that Mongolia had a score of 35 this year. The 2019 index was also 35. The Corruption Perceptions Index for Mongolia is based on a combination of surveys and assessments of corruption from 9 different sources.

The CPI assesses the Rule of law index, and risks such as corruption and political influence in the judiciary, environment, social, health, and economic risks, Sovereign risk, Banking sector risk, Economic structure risk, and Political risk. All of these indicators related to corruption are evaluated in the Corruption Perceptions Index. For Mongolia, some scores saw an increase increased, but 3 source scores decreased. These three are the “2020 World Justice Index”, “2021 The Global Risk report”, and “2020 EIU Country Risk Service”.

For example, “2021 The Global Risk report” evaluated environmental risks, public health risks, and the ability to fight pandemics. In other words, a country with such risks is considered corrupt.

One source that has a declining score on the Corruption Perceptions Index is the “2020 World Justice Index”. The decline of the Index on “Corruption and Political Influence in the Judiciary” contributed to the decline in the 2020 Corruption Perceptions Index. This means that judicial governance has created a legal environment in which corruption can be taken and an opportunity has been created to make decisions at the behest of politicians. He said recently, adopted laws have closed this loophole and he hopes the score will be improved next year.

In this interview, he outlined what Mongolia needs to improve indicators: approve the law on political parties, the law on the state-owned industries, and the whistleblower protection Act, which disclose corruption actions and the law on mining transparency, and solve issues to create a legal framework for the disclosure of end-user and beneficiary information, and ensure that the buying process is free of corruption.

In addition, he mentioned that there were a few positive indicators related to Mongolia’s CPI. Democracy and competitiveness increased by 1-2 scores. In this, the following indicators have been of influence, for instance, Mongolia is removed from the FATF Grey list and credit ratings have improved.

It is common for countries with low CPI scores to have low investment in the health and education sectors. Mongolia belongs to this category. Inadequate public investment in these sectors is likely to lead to poor access to health and education services and accordingly, the condition of experiencing corruption has been created. Conversely, in countries with high levels of corruption, politicians are more interested to invest in mega-projects because of a greater potential for corruption.

The solution to all of these issues is an attempt to eradicate corruption with great political will and leadership. The legal environment also needs to be reformed. Remember that in a small country like Mongolia, it takes 1 or 2 years to eradicate corruption, as advised by a Hong Kong Corruption Advisor who has worked in Mongolia for many years.

He said that one of the highlights of announcing the Corruption Perceptions Index this year is that the Covid-19 pandemic has provided a clear picture of the state of corruption. This is because purchases and loans have made it possible to directly measure the effectiveness of the fight against the pandemic through the expenditure of grants. Countries with a high level of corruption are losing control of the spread of infection by purchasing low-quality diagnostic tools and medicines, resulting in high mortality of the population.

Another highlight is the high incidence of cancer and cardiovascular and respiratory mortality in countries with low corruption perceptions index scores. Because people cannot get the necessary equipment and medicine, and even if they do, they get poor quality treatment. As a result, people die. So corruption is the most dangerous theft that takes a person's life.

The Corruption Perceptions Index score of Mongolia has not increased and did not decrease, and the decline of ranks among other countries was not related to the activities of any particular organization, including the Independent Authority Against Corruption. This is a point given to the current system of our country. For example, the loss of scores related to the index of the rule of respecting the law is the result of the assessment of the judicial laws in Mongolia, which states that "under the current legal system, the judiciary cannot function without the influence of corruption and politicians." Still, issues such as the detection and prevention of corruption are not considered here.

The Corruption Perceptions Index states that the new government and the Prime Minister reflected the following issues in policy that will create and implement a legal framework to eliminate bureaucracy and corrupt political systems, eradicate the soil that feeds the corruption, create an independent and fair judiciary system, and protect whistleblowers, seems to be important leverage to influence positively to the score of the CPI. Batbayar said in his interview that he expects the Corruption Perceptions Index to rise next year and the rank of our country will increase.

Source: Independent Authority Against Corruption

At its regular meeting on April 28, the Cabinet approved a resolution on the measures to intensify activities to exploit the Tavan Tolgoi coal deposit.

According to the resolution, corresponding ministers were charged to launch projects which are included in the construction of Tavan Tolgoi Production and Technology Park and the construction of coal concentrator respectively within the third quarter of this year, according to the feasibility study, and intensify their progress.

The establishment of the plant is crucial to make Tavan Tolgoi coal value-added, raise the value of the coal mine by upgrading the level of mineral processing as well as increase jobs and tax income to be allocated in the state and local budgets.

The feasibility study for the Tavan Tolgoi coal concentrator was discussed and approved this month by the Mineral Resources Professional Council and it is projected to complete the development of a preliminary blueprint of the project within July this year.

The concentrator will consist of three blocks with each has an annual capacity of 10 million tons of coal and have a full capacity of 30 million tons of coal. The plant will concentrate coking coal and loose coking coal of the Tavan Tolgoi deposit and produce and supply hard coking coal concentrate, semi-soft coking coal concentrate, and middling to the international market.

With the operation of the coal concentrator, around a thousand jobs will be created alongside accumulating USD 208.45 million to the state and local budgets.

CEO of ‘Erdenes Mongol’ LLC D.Khayankhyarvaa virtually met with Ambassador of the French Republic to Mongolia Philippe Merlin, exchanging views on a pilot project on the production by ‘Badrakh Energy’ LLC and the development of Tavantolgoi project.

Noting that he is paying attention to forwarding the project being realized by the Company, CEO D.Khayankhyarvaa informed that the draft bill on the Sovereign Wealth Fund has been developed by accurately studying about the world’s largest sovereign wealth funds. Furthermore, construction of Tavantolgoi power plant was included in the Government Action Plan. “And it is important to attract foreign investment in the project.”

Ambassador Philippe Merlin underscored that the sides are making efforts to activate the operation of ‘Badrakh Energy’ LLC and forward the planned project.

France does not have a Sovereign Wealth Fund, however, there are specialized organizations with many years of experience in managing government funds and national savings, cited the Ambassador. He also emphasized the possibility for some French companies to share experience and partner with Tavantolgoi project in creating financing scheme.

A surge in iPhone sales, especially in China, has led to a doubling of profits at Apple since the start of the pandemic.

The results reflected "optimism" about the days ahead, Apple's boss said.

Rival tech firm Facebook also reported bumper revenues and profits.

But the social media giant warned Apple's latest software release could undermine its prospects later in the year.

Apple has seen sales of its phones, apps and other devices rise throughout the pandemic, as consumers spent more time working, shopping and seeking entertainment online.

Customers continued to upgrade to Apple's new 5G phones which were rolled out last year, and also bought Mac computers and iPads to tackle working and studying from home, the firm said.

Fitness and music apps also saw a lockdown boost.

Sales to China nearly doubled, leading to overall revenues for the first three months of this year of $89.6bn (£64.2bn), more than 50% up compared to a year earlier.

Profit was $23.6bn, up from $11.3bn for the same period last year.

"This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us," said chief executive Tim Cook.

Paolo Pescatore, analyst with PP Foresight, said it was "another blowout quarter" for Apple.

"The iPhone remains a core product and gateway to the Apple universe," he added, providing Apple with "a key launchpad" to sell further services.

Sophie Lund-Yates, Equity Analyst at Hargreaves Lansdown said customers had proved willing to "splurge on big-ticket items thanks to a global shift to working from home, and the fact people have found comfort in treating themselves".

"The sheer scale of Apple's sales is testament to the grip that shiny embossed piece of fruit has on global consumers," she added.

Facebook, which relies on sales of advertising rather than consumer electronics, also saw bumper revenues and profits in the first three months of the year.

The time spent by consumers at home, and the spending power that shifted online, translated into revenues of $26.17bn, outpacing analysts predictions. Profit was also higher than expected at $9.5bn.

Facebook said in coming months it expected revenue to be stable or grow moderately, and admitted a new feature released this week by Apple - an option for users to prevent apps from collecting user data - could "significantly" hurt its business.

It's not just Apple and Facebook who have posted astonishing profits this week. Google and Microsoft announced eye-watering quarterly figures yesterday too.

That may not be surprising to many. Global lockdowns have made people work and play more online. What's less clear though was whether this was a pandemic bounce? Or have people permanently changed their behaviour? These figures certainly suggest the latter.

Apple's figures across multiple sectors, across the world, are exceptional. In places like China, which has mostly been lockdown-free in recent months, sales were up dramatically. Facebook's figures too, show that advertisers are feeling bullish about online spending.

Almost all of Facebook's revenue is from ads, so when Facebook is doing well, that usually suggests we're buying more things on the internet. Amazon's quarterly figures are out tomorrow, and they too are expected to have had a bumper quarter. Big Tech's pandemic bounce is increasingly looking like a trend.

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The two companies are locked in a stand-off after Apple announced the latest version of its iOS operating system this week.

A new feature will prompt device users to decide whether they are happy for their data to be collected by apps. Many are likely to say no.

But user data is a large reason why Facebook's ad-based business model is so profitable. It allows advertising to be targeted and monitored for efficacy.

Facebook saw a rise in monthly active users, however, which were up by 10% at 2.85 billion.

On Tuesday Google's parent company Alphabet reported a record profit in the three months to March as its advertising revenue swelled by a third.

The firm credited "elevated consumer activity online" for its results as populations around the world spent more time indoors at home to avoid the spread of coronavirus.

27 APRIL 2021, Ulaanbaatar ---- In November 2020, at the initiative of the Government of Mongolia, Erdenes Oyu Tolgoi LLC, through their nominated board members of Oyu Tolgoi LLC, submitted draft resolutions for the establishment of a Special Committee of the board of directors of Oyu Tolgoi LLC whose mandate is to appoint independent experts to conduct an independent review of the cost overruns and schedule delays of the underground expansion of the Oyu Tolgoi project. The proposed resolutions were approved at the meeting of Oyu Tolgoi LLC’s board of directors held on 30 November 2020. Rio Tinto opposed the proposed independent review and Rio Tinto appointed board members declined to support the board resolutions. However, following the approval of the proposal by an overwhelming majority of the board members of Oyu Tolgoi LLC, Rio Tinto gave its assurances to the Government of Mongolia that it will fully support and cooperate with the independent review.

Following the establishment of the Special Committee consisting of two board members nominated by each of the Government of Mongolia and Turquoise Hill Resources Limited shareholders as envisaged in the board resolutions, the special committee immediately began its work and approved the scope of work for the independent review/investigations. Further, members of the special committee worked tirelessly to look for and appoint internationally recognized experts who will conduct the independent review. Thanks to the continued efforts and works of the special committee members, the Independent Consulting Group, a consortium of highly qualified and credible consultants in the fields of project management, mine planning, cost management, and related fields, are appointed and started their investigation relating to the Oyu Tolgoi project delays and cost overruns few weeks ago. These investigations are reviewing the delays in the projects schedule and the increase required in capital to complete the project. To date, the Independent Consulting Group are making progress and reviewing technical data that is currently made available by the Special Committee.

However, the Independent Consulting Group have requested several key documents through the Special Committee relating to Rio Tinto’s technical expert reports and project management documents which Rio Tinto have to date failed to disclose.

This investigation has been initiated to seek a full and transparent review of the underground project progress, and to report failures and lessons which may be learnt. Presently, the refusal by Rio Tinto to provide the data and reports requested by the Independent Consulting Group is hampering the expert’s efforts and causing potential delays to the final report/outcome of the review. Erdenes Oyu Tolgoi LLC fully supports the works of the Special Committee who is seeking a fully transparent review, meeting international standards relating to good corporate governance and recognised compliance standards.

We hereby strongly urge both Rio Tinto and Turquoise Hill Resources Limited to fully cooperate with the investigation and provide all requested information available to the Independent Consulting Group without further delay and make their relevant technical personnel available for interviews with the Independent Consulting Group. Should Rio Tinto and/or Turquoise Hill Resources Limited continue to frustrate this process, and remain uncooperative, Erdenes Oyu Tolgoi LLC as a shareholder of Oyu Tolgoi LLC reserves its right to gain access to the information required through legal channels or other methods as Erdenes Oyu Tolgoi LLC currently considers Rio Tinto to be in breach of its obligations as a project manager to provide data to Oyu Tolgoi LLC’s shareholders when requested.

About Erdenes Oyu Tolgoi LLC and Oyu Tolgoi’s underground expansion

Erdenes Oyu Tolgoi LLC is a wholly state-owned company holding 34% of the issued and outstanding shares in Oyu Tolgoi LLC. Oyu Tolgoi LLC is currently undertaking the underground expansion of the Oyu Tolgoi project in the South Gobi region of Mongolia. The remaining 66% interest in Oyu Tolgoi LLC is owned by Turquoise Hill Resources Limited, a company co-listed in the Toronto and New York stock exchanges. Rio Tinto, a global mining company is appointed as mine operator and project manager of the Oyu Tolgoi project and has been responsible for the day-to-day operations of the project since commencement of the underground expansion in 2016.

On 16 December 2020, Rio Tinto reported that the Oyu Tolgoi underground project is expected to have cost overruns of US$1.45 billion and sustainable production from the underground operations will be delayed by 22 months compared to the initial plan of January 2021. Although Rio Tinto and Turquoise Hill Resources Limited explain that the cost overruns and schedule delays are caused by difficult ground conditions, there are various reports and allegations pointing to potential project mismanagement and procurement related issues. These allegations are addressed in the amended claim submitted by certain minority shareholders of Turquoise Hill Resources Limited in the class action against Rio Tinto and Turquoise Hill Resources Limited (including certain executive management members of such companies) filed in the New York court in March 2021.

ERDENES OYU TOLGOI LLC

Mongolian peacekeepers have acted quickly to protect humanitarian workers who were attacked by angry youths during a demonstration in the remote area of Jam Jang in the Unity region of South Sudan.

On Saturday morning, approximately 50 youth began a violent demonstration about the hiring of workers from outside the local area by a non-governmental organization based in Jam Jang. They stormed the organization's compound and injured several staff.

As soon as reports of the attack were received, Mongolian troops serving with the United Nations peacekeeping mission in nearby Pariang deployed a quick reaction force to protect the humanitarian workers, prevent further violence, and ensure that those who were injured received medical care.

The peacekeeping team later reinforced their presence with additional troops and are continuing to patrol the area to provide safety and security for humanitarian partners who are working to support communities in desperate need of assistance.

Over the past few years, UNMISS has been engaging with authorities in many parts of the country, including Unity, to deal with increasing demands from local populations that agencies should only hire workers from particular ethnic backgrounds.

The United Nations acknowledges the serious youth unemployment problem in the country due to the dire economic situation and fully supports recruitment practices that are based on competence, professionalism, integrity, and respect for diversity.

The UN supports all efforts to rebuild the economy and create employment opportunities so that young people can reach their full potential and enjoy a much brighter future.

Source: UNMISS

On April 27, the Mongolian National Chamber of Commerce and Industry (MNCCI) presented results of 'Business Confidence Index 2020' Survey, which aims to assess businessmen’s confidence in business environment by reviewing status and further changes of businessmen and citizens’ expectations.

The 2020 Business Confidence Index had shown pessimistic results from the last four years’ performance or -0.28. In specific, the pessimistic results can be linked to unfavorable condition of foreign market, decline in export growth and foreign direct investment, disruption in normal operation of entities and reduction of their income and profit.

In 2020, the four main indicators of the business confidence index have decreased compared to 2019. Particularly, businessmen’s confidence in business environment in construction, agriculture and service sectors was lower than the national average. Businessmen of construction and trade sectors, who were involved in the survey, expect that business environment would deteriorate in 2021. The participants also deem that financial situation and decline in product demand would affect adversely to their business activity.

The BCI survey is conducted with four main indicators such us general situation of business environment, income of enterprises, major problems of macro economy, favored and ill-favored factors to business environment and challenges. The survey methodology has been changed this year and is calculated according to the international methodology for the main sectors of the economy.

The BCI survey was conducted in March of this year in Ulaanbaatar city and rural areas with involvement of over 1400 enterprises. By the areas of business operations, 15 percent of the participants for survey were in manufacturing sector, 14 percent in construction, 10 percent in agriculture and 37 percent in service sector. 76 percent of the participant enterprises have income up to MNT 1 billion while over 95 percent of them have employees up to 200.

During the presentation of the survey result, a discussion was held on economic situation and trends. At the event, businesses expressed their views on issues related to tax and social insurance premium. Moreover, President of the MNCCI O.Amartuvshin stressed that the chamber would pay attention to reviving the economy in a way of raising issues including tax, social insurance, abnormal loan amount and loan forgiveness for entities to the Parliament and the Cabinet.

Since 2000, MNCCI conducts the survey, bringing the results to the decision-makers and making the outcomes reflected in government’s policies and actions.

Daily COVID-19 press briefing for today, April 28, by the Ministry of Health, reported that 1,171 new coronavirus cases were detected in the past 24 hours across the country.

In specific, 1,092 new cases were confirmed in Ulaanbaatar city, one was hospital-acquired case, six cases are imported cases from abroad, and 72 cases were detected in rural regions, including Zavkhan, Darkhan-Uul, Orkhon, Arkhangai, Bulgan, Dornod, Sukhbaatar, Khuvsgul, Khovd, Selenge and Tuv aimags. As a result, the nationwide infection tally is now 33,608, with the cases registered in the capital city grown to 29,308.

In the last 24 hours, 490 coronavirus patients were recovered, making the number of COVID-19 recoveries 18,033. As of April 28, a total of 4,703 coronavirus patients are being treated at hospitals in Ulaanbaatar city and the rural aimags. Among them, 103 patients’ health are in serious conditions, reports the National Center for Communicable Diseases (NCCD), the primary healthcare organization in the country responding to the pandemic. Another 3,380 patients who are experiencing a mild disease are being treated at home while taking home isolation precautions.

NCCD also reported nine new COVID-19 related deaths, raising the country's death toll to 97. The casualties are COVID-19 patients aged between 47 and 87 years old, who were being treated at NCCD in Ulaanbaatar city.