Rio Tinto is facing a new front in an escalating dispute over how to finance its biggest project after a US hedge fund threatened the miner with legal action.

Pentwater Capital Management, which has a large minority stake in Rio-controlled Turquoise Hill Resources, said it was prepared to file an “oppression” order unless the company allowed the subsidiary to take on more debt to fund the $6.8bn underground expansion of the Oyu Tolgoi mine in Mongolia’s Gobi Desert.

“We do not undertake this lightly, but enough is enough,” Pentwater chief executive Matthew Halbower said in an open letter sent on Monday to Rio’s board of directors.

“This mine is a jewel. It will be the third-largest gold and copper mine in the world. It will produce tens of billions of dollars of free cash flow for decades. Its owners should be treated as business partners, not as puppets or pawns.”

Pentwater’s warning came days after Odey Asset Management, a London-based hedge fund, also called on Rio to change the way it was funding the project.

Odey, which has made a bearish bet against TRQ, said Rio should seek to refinance the entire project but through a massive rights issue. It has asked the company whether it will try to do so.

Rio could not be immediately reached for comment. TRQ declined to comment.

The underground expansion of Oyu Tolgoi is Rio’s most important project.

When finished, the mine will be capable of producing more than 500,000 tonnes of copper a year.

However, it has been dogged by problems and is running more than a year behind schedule and more than $1bn over budget. Its first sustainable production is now expected around October 2022.

While Rio operates Oyu Tolgoi it does not have a direct stake. Instead it owns 50.8 per cent of TRQ, which in turn owns 66 per cent of the project, with the rest owned by the Mongolian government.

The row over funding of the cost blowout started to heat up in early November when TRQ launched arbitration proceedings against Rio in an effort to get clarity on funding.

Rio has said it will not allow TRQ to take on more than $500m in additional debt, telling the company to plug a funding gap of up to $3bn by reprofiling loans and raising equity.

That move has alarmed minority TRQ shareholders including Pentwater, which owns almost 10 per cent of the company. They fear being diluted if the company is not allowed to issue more debt or raise cash by selling the rights to future gold production from Oyu Tolgoi.

Pentwater said TRQ’s current financing agreements with Rio were written to allow for $1.6bn of supplemental debt financing.

“Rio is attempting to force Turquoise Hill to conduct an equity raise despite the fact that the current equity price severely undervalues the company, and despite the fact that there are much cheaper and more advantageous financing options available,” said Mr Halbower.

Separately, one of the frontrunners to replace Rio’s outgoing chief executive Jean-Sébastien Jacques ruled himself out of the running for the job on Monday.

Newcrest Mining chief executive Sandeep Biswas said in an email to staff that he was not “interested in any other CEO role outside Newcrest”.

After four years at the helm of Rio, Mr Jacques stepped down in September following an investor backlash over the destruction of a sacred Aboriginal site to make way for the expansion of the mine. Rio has appointed MWM Consulting to help find its next chief executive.

Large herds of gazelles have been spotted in Ulan Bator, capital of Mongolia, making a stir on social media, the country's Environment and Tourism Ministry said Monday.

"On Sunday, a herd of more than 200 gazelles was spotted in the Nalaikh District of Ulan Bator, while another herd of around 300 gazelles was spotted in the territory of the Khan-Uul District of the capital city," the ministry said in a statement.

The two herds of gazelles were driven into the pasture by local officials, the ministry added.

According to a census in 2000 cited by the World Wildlife Fund, over 2 million gazelles inhabited in Mongolia's Eastern Steppe, and the population of gazelles has been decreasing since then under the threats of poorer weather conditions, infectious diseases, steppe fires, human and livestock interference, among others. Enditem

The Covid crisis has challenged the global airline industry to fight for survival in 2020, the International Air Transport Association (IATA) said this week. It added that the industry’s huge losses will continue into 2021.

“This crisis is devastating and unrelenting. Airlines have cut costs by 45.8 percent, but revenues are down 60.9 percent. The result is that airlines will lose $66 for every passenger carried this year for a total net loss of $118.5 billion. This loss will be reduced sharply by $80 billion in 2021. But the prospect of losing $38.7 billion next year is nothing to celebrate,” said IATA Director General and CEO Alexandre de Juniac.

He added: “We need to get borders safely re-opened without quarantine so that people will fly again. And with airlines expected to bleed cash at least until the fourth quarter of 2021, there is no time to lose.”

According to the IATA, in the face of a half-trillion-dollar revenue drop (from $838 billion in 2019 to $328 billion), airlines cut costs by $365 billion (from $795 billion in 2019 to $430 billion in 2020).

“The history books will record 2020 as the industry’s worst financial year, bar none. Airlines cut expenses by an average of a billion dollars a day over 2020 and will still rack-up unprecedented losses. Were it not for the $173 billion in financial support by governments, we would have seen bankruptcies on a massive scale,” said de Juniac.

While the industry will see an improved performance in 2021 compared to 2020, “the road to recovery is expected to be long and difficult.” The association warned that passenger volumes are not expected to return to 2019 levels until 2024 at the earliest, with domestic markets recovering faster than international services.

“The financial damage of this crisis is severe. Government support has kept airlines alive to this point. More is likely needed as the crisis is lasting longer than anyone could have anticipated. And it must come in forms that do not increase the already high debt load which has ballooned to $651 billion,” de Juniac said.

Most employees are working from home after Mongolia issued a second decree emergency situation and imposed a travel ban, which has left thousands of Mongolians stranded – in Ulaanbaatar people are banned from leaving home apart from buying necessary provisions. However, 13 organisations such as energy-sector workers, health workers, media, food production plants and supermarket staff are being allowed to work normal hours.

The Mongolian National Chamber of Commerce and Industry has conducted a survey for examining the impacts of lockdown on business. More than 3500 enterprises from various sectors including tourism, media technology, mining, transportation, production, construction, education and retail have participated in the survey. According to the results of the survey, 82 percent of private businesses have fully stopped operations and 13 percent are operating with limited capacity.

Since 12 November, some 152 thousand jobs have been cut. Subsequently, if the lockdown continues for a further three months, half a million people will lose their jobs.

Ulaanbaatar/MONTSAME/. The ‘Songino’ substation was put into operation on November 25 with a purpose to increase the reliability of not only Ulaanbaatar’s energy supply but also the country’s central energy grid.

During the present situation of public readiness, the energy sector works in a special regime and has launched the operation of the large-scale construction. Currently, a technical commission is working on the 72-hour testing and the adjustment for its operation.

With the commissioning of the Songino substation, the ‘Zaisan’ substation in Ulaanbaatar will have two-way power supply, and the 110kV ‘Yarmag Bridge’ and ‘Shine Yarmag’ substations that have not had power for eight years, will be connected to the 110kV ‘Ikh Toiruu’power system; thus it will start working at its full capacity. In addition, there will be a possibility to connect the Ulaanbaatar New International Airport in Khushig Valley to the main power supply.

It will be connected to the Russian power system through Ulaanbaatar's Thermal Power Plant-4 and substations of Dundgobi and Umnugobi aimags, Erdenet and Darkhan cities. Moreover, the transmission capacity of the national power transmission network is going to be increased by 250 MV.

At its irregular meeting held yesterday at 5 pm, the Cabinet made a decision to extend the period of strict-lockdown in Ulaanbaatar city, Arkhangai and Selenge aimags, where the spread of COVID-19 still exists, by 10 days, until December 11.

However, 18 types of businesses and services are allowed to run their operations, after being registered and getting QR code. Manufacturing or processing businesses such as printing houses, packaging, wood processing and construction material plants, and distribution services, e-trading as well as banking businesses are added to the previously permitted businesses which include food stores and supermarkets, food manufacturers, food distribution, gas stations, fuel suppliers, public toilets, disinfection and sterilization places, livestock fodder suppliers, hospitals, courts and prosecution offices, pharmacies, power stations, communications and media, special services, state-owned organizations of particular and strategic importance, and funeral services.

As for the aimags which took the spread of the virus under control, such as Orkhon, Gobisumber, Dornogobi and Darkhan-Uul and other non-infected aimags, the strict-lockdown have been lowered by one stage or to the heightened state of readiness for disaster protection . Businesses and other activities except public events, school and kindergarten and entertainment activities, in those aimags will be able to be carried normally under high infection control.

Ulaanbaatar /MONTSAME/ 24 new cases of COVID-19 were detected in Mongolia after 9513 tests performed nationwide yesterday, November 28.

Specifically, 5 cases were recorded in Ulaanbaatar, 7 in Selenge aimag, 9 in Darkhan-Uul aimag, and 2 in Arkhangai aimag. No new infection has been recorded in Orkhon, Dornogobi and Gobisumber aimags. Also, a freight truck driver who entered Mongolia on November 16 tested positive for the virus.

As of today, the number of confirmed COVID-19 cases in Mongolia has reached 784, of which 383 are local transmission cases. So far, 411 patients have made recovery.

Currently, 421 people who have diagnosed with the virus are receiving treatment at the National Center for Communicable Diseases and Central Military Hospital.

It was underlined during today's press briefing of the Ministry of Health that the newly confirmed local transmission cases are all either close or indirect contacts of previously confirmed positive cases.

A Mongolian documentary has become the winner of the International Documentary Film Festival Amsterdam (IDFA) Award for Mid-Length Documentary, local media reported on Saturday, citing the documentary's director Nomin Lkhagvasuren.

The 52-minute documentary titled "Wheel" tells the stories of suicide survivors and family members of those who have taken their lives.

Hopelessness, loneliness, alcoholism and the harshness of life have led to many suicide cases in Mongolia, according to the documentary.

The IDFA is the world's largest documentary film festival held annually since 1988 in Amsterdam, the Netherlands, and screens more films than any other event of its kind.

The IDFA 2020, which began on Nov. 18, will continue until Dec. 6. Enditem

Battluga Gombo is a man of many impressive achievements. He is a burly, broad shouldered former Mongolian judoka who has represented his country with pride in numerous international sporting competitions. But it’s his passionate zeal to develop cricket in Mongolia that brought him to my attention.

After reaching out to Mr. Gombo on social media; what followed was a fascinating phone conversation about the game’s growth in one of the most remote corners of the world.

Gombo’s discovery of cricket was purely accidental. In 2005, he was visiting his wife in Australia where she was a student at Monash University. It was during that trip that he first encountered the game being played in beaches and neighbourhood parks, all over Melbourne’s suburbs.

‘I visited my wife when she was doing her master’s degree in Melbourne. We stayed for five years in Australia. It was the first time that I saw cricket. It reminded me of a similar game that we had played as children in Mongolia; a bat and ball game called Matka. We used to play Matka for hours at a time, on the streets with our neighbours and other kids. It was great fun.’

It was not quite love at first sight, but Gombo’s interest was sufficiently piqued for him to spend hours researching the game online.

‘I talked to several Australians who told me that cricket is an ancient team game from England. I went home and searched on Google to retrieve all cricket information that I could find.’

Ultimately, it was cricket’s strategic nature and the ethos of discipline and teamwork that won him over. Gombo returned to Mongolia with a clear goal: to introduce and grow cricket in a country with no cricket heritage.

In 2007, Gombo established the Mongolian Amateur Cricket Association (now MCA), but he had to wait patiently for another seven years to oversee the next chapter of cricket development.

Present day

The biggest milestone for the sport to date has undoubtedly been the building of the Mongolian Friendship Cricket Ground (MFCG) in Ulaanbaatar. Surrounded by rolling hills in a picturesque location close to the city centre, the ground serves as the official home of Mongolian cricket. It was inaugurated in 2017 and comes equipped with a high-quality artificial turf pitch, nets and a beautiful pavilion built in the traditional Mongolian style.

Mongolian Friendship Cricket Ground, Ulaanbaatar (Supplied)

Gombo beams with joy as he expresses pride over the unique design of the pavilion. Nicknamed the ‘Ger-vilion’, it is a cross between a cricket pavilion and a traditional Mongolian portable round tent called ‘ger.’ These huts are used as dwellings by Mongolia’s nomadic herders and have been a distinctive feature of life in the steppes of Central Asia for at least the last 3,000 years.

Gombo is particularly grateful to expatriates from cricketing countries, Australia’s Department of Foreign Affairs and Trade (DFAT) and the multinational mining giant Rio Tinto for their help and sponsorship, which according to him ‘made building the ground and “Ger-vilion” possible.’

Having a permanent home cricket ground has assisted Gombo greatly in his development and outreach efforts. The game has been introduced to five districts of Ulaanbataar as well as six provinces around the country. Over time, the grassroots cricket programme has reached 1,500 kids, of which 400 now are regular participants. Last year, cricket was included in the National Youth Games for the first time. Organised by the Mongolian government and held every three years, the Games are the equivalent of staging a children’s national Olympics.

Mongolian weather and climate change

However, playing cricket in Ulaanbaatar’s frigid climate remains a difficult task. The city is considered by many to be the coldest capital city in the world. Officially, cricket season lasts from May to October but as Gombo explains, ‘even in summer, it can get cold and rainy.’ As we have our conversation on the phone, the outside air temperature there is -15C and it can drop to as low as -40C during a cold Mongolian winter.

Unfortunately, climate change is making things worse. Gombo reflects sadly on how changing temperatures are ravaging his nation.

‘Climate change has a really bad impact on our farmers, especially in the countryside. The weather has changed a lot, especially in the Gobi Desert.’

The livelihood of semi-nomadic Mongolian herders is under threat from frequent ‘dzuds’. These are extreme cold weather conditions that lead to mass death of livestock from critical food and/or water shortages. Speaking to NPR, herder Oyutan Gonchig mentions how he woke up one morning to discover that a ‘dzud’ had destroyed his livestock.

‘Everything was covered by snow. There was no way to distinguish the sheep trails. There were corpses. Some of the surviving animals were trying to find something to eat but couldn’t. It was very difficult to see this.’

Climate change is forcing herders to abandon their traditional lifestyle and move to the city in search of work. Poverty is endemic and half of Ulaanbaatar’s residents do not have access to basic public infrastructure services like water, heating or sewage.

Rising unemployment and poverty levels can affect cricket development negatively, as cricket is an expensive game to play, compared to traditional Mongolian sports. However, Gombo remains confident that cricket can facilitate positive outcomes and improve people’s lives.

Geopolitical threats

In addition to internal problems, Mongolia faces an uncertain future resulting from actions by neighbouring China. Recently, the Chinese Communist Party (CCP) has made authoritarian moves in Inner Mongolia, a semi-autonomous region under China bordering the independent nation of Mongolia.

Questioned on these issues, which have included decrees regarding language instruction in school, the defacing of depictions of Genghis Khan, and the resultant rise of ultra-nationalist and far-right vigilante groups in the country, Gombo strikes a diplomatic tone.

‘It’s a shame. This is the 21st century, we have to be friendly towards each other and respect other cultures. Ordinary Mongolians don’t like such policies but then the Chinese government is very strong.’

He actually sees cricket as a vehicle to build up mutually beneficial relationships with other countries. ‘Maybe we have to teach them the values of cricket. You know things like teamwork, respect and treating others with kindness’, he adds jokingly.

Facilities and equipment

As a brand new sport, cricket faces stiff competition from the traditional triumvirate of wrestling, archery and horse racing. Furthermore, sports like basketball, football, table tennis and judo are also popular. Gombo admits that he has his work cut out. However, he is optimistic about the prospects of the younger generation taking up the sport in good numbers.

‘The younger Mongolian generation have a desire to play more international sports, especially team games. So far, the kids that we have introduced cricket to, they love playing it.’

The cricket association’s outreach programme in 2019 reached 16 schools, orphanages and universities, but as a non-ICC member, funds are limited. They have received a donation of land (1.78 Hectares) from the local government to build a second cricket ground in Bayankhongor, a small town situated 640 kms away from the capital city. Gombo is enthused by the community support from local businesses and individual donors whose monetary support has facilitated the building of nets and an artificial pitch. The ground remains under construction.

Regarding equipment, they are entirely dependent on donations from foreign organisations and cricket clubs.

‘Clubs in Sydney and Melbourne as well as Lord Taverners UK help us by donating cricket gear. We also hold fundraisers to raise money for buying cricket equipment,’ says Gombo.

Partnerships and ICC membership

Gombo has been clever in building strategic partnerships to grow the game.

‘Last December, I visited Sydney and met some cricketing people. We discussed things like organising events, gave invitations to umpires, met with some coaches and former international cricketers like Alex Blackwell. Alex has been a great help to us. She visited our country in 2018 to share her skills.’

MCA have been also graced with visits by Hong Kong based cricket clubs Craigengower and Lamma, with whom they have developed good relationships. Additionally, according to Gombo ‘cricket clubs in Taiwan and Singapore are quite keen to visit Mongolia to play tour games.’

However, Gombo’s immediate priority is securing ICC Associate membership as the ensuing funds, however small, would provide an annual source of income.

‘Our first goal is to become an Associate Member of the ICC. This would allow the youth in Mongolia to represent their country in international matches and also qualify for ICC events. In 2019, we sent our official application and official letter to the ICC CEO. Because of COVID-19, I think that they have been delayed in processing our application. We are very much looking forward to an ICC response, hopefully in the near future. I think that they will send someone to Mongolia to verify the application.’

Gombo admits that satisfying the criteria for membership can be a complex matter and he is thankful to the Asian Cricket Council (ACC) for support in this regard. Just recently, MCA hosted a new eight team T20 league, comprising four teams from Ulaanbaatar and four from other provinces. This helps fulfil one of the ICC membership prerequisites.

‘We made sure to send all the official scorecards and reports to ICC for verification purposes. After our T20 competition, we also organised a three-match 50 over one-day competition, which just finished at the end of September.’

MCA also provides regular updates to the Mongolian government to keep them informed about their developmental and promotional efforts.

‘We are working with the Mongolian government and the local Olympic national committee. We really want to send our national team to the 2022 Asian Games.’

Gombo is also counting on support pledged by the Indian government.

‘Last year, the Mongolian President visited India and met with Prime Minister Narendra Modi. Our President asked the Indian government to support Mongolian Cricket. And they welcomed that suggestion.’

In the future, the MCA plans to send around 20 cricket students to India for further training. As preparation, these young athletes have been enlisted with the GAPE Center for English lessons.

‘Now our youth players are learning English. They just started their 2.5 months English course here to prepare for the Indian trip.’

Despite the recent struggles with COVID-19, cricket development in Mongolia is on an upward curve. It is fascinating how Gombo has successfully adopted a rigid and traditional British game and infused it with a heavy dose of Mongolian culture. And to me, this really sums up what Associate cricket development in its remotest frontiers is all about.