EU to add Panama, Bahamas, Mauritius to money-laundering blacklist www.reuters.com

BRUSSELS, May 5 (Reuters) - The European Commission is set to include Panama, the Bahamas, Mauritius and nine other countries to its list of states that pose a financial risks to the bloc because of anti-money laundering and terrorism financing shortfalls, a draft document shows.

Mongolia imports 16.9 million face masks in 2020 www.montsame.mn

Ulaanbaatar /MONTSAME/. As of first 4 months of 2020, Mongolia imported 16.9 million face masks worth USD 5 million, of which 4.8 million was imported in April.

Trump says he did not wear mask at Honeywell facility after consulting CEO www.reuters.com

WASHINGTON (Reuters) - U.S. President Donald Trump said on Wednesday he did not wear a mask during a tour on Tuesday of a Honeywell International Inc (HON.N) factory in Arizona after consulting the company’s chief executive, despite requirements at the plant that workers wear them.

Lithium price: One in three cars sold in UK now electric www.mining.com

2020 was going to be the breakout year for electric vehicles in Europe as Volkswagen’s affordable ICE killer, the ID3, and other entry-level models propel the continent into becoming an EV mass market.

Drill to place 150 thousand residents of Chingeltei district in lockdown www.montsame.mn

The operative team of the State Emergency Commission and the authorities of Chingeltei district of the capital city held a press briefing on the quarantine drill to be held in Chingeltei district on May 7.

6,595 borrowers request to defer consumer loan payment www.montsame.mn

Ulaanbaatar /MONTSAME/. A decision has been made to extend the repayment of mortgage loans by six months and extend the term of consumer loans in order to reduce the burden on individuals amid COVID-19 pandemic and the loan extension deadline has expired on April 30.

Mongolia’s Challenges in Returning Nationals Stranded Abroad During COVID-19 www.asiapacific.ca

Mongolia, a landlocked country of a little over three million people, took early and intensive preventative measures against the COVID-19 outbreak. The country’s approach to repatriation has been a key component of it response to keep the number of cases low. As of May 4, it had only 40 recorded cases (all imported cases), or one for about every 80,000 residents. After closing its borders and cancelling all international flights and trains to limit the mobility of travellers, Mongolia began the staggered repatriation of its citizens in February, followed by the enforcement of a strict quarantine schedule.

This has arguably helped keep community transmission low in the country but public policy decisions facing Mongolia’s government are anything but easy. This dispatch explores the country’s repatriation policies and processes, and the associated public health and political fallout.

Early and decisive action
Mongolia cancelled all flights to and from China on February 1, and as the outbreak spread beyond China, suspended all outbound and inbound flights to South Korea and Japan at the end of the month, while only accepting non-Asian flights under strict medical supervision. When Mongolia reported its first COVID-19 case on March 10, the government stopped all inbound and outbound flights until the end of May.

The suspension of air travel has meant that Mongolian nationals abroad attempting to return home have had limited options. As of April 28, 9,890 Mongolians in 35 countries have requested repatriation, including members of the beloved Mongolian band, The HU. Of the stranded nationals, 800 are students, 4,000 are facing financial hardship due the outbreak, and the rest include elderly, children, and pregnant women. The Mongolian government has carried out eight charter flights to date, bringing back 1,803 citizens from five locations, and repatriated an additional 282 citizens from Russia and 58 citizens from China by bus in mid-April.

The first chartered repatriation flight was on February 1. It brought back a total of 31 people, including one baby, from Wuhan, the epicentre of the novel coronavirus. After the successful evacuation, the passengers and the flight crew were isolated at the National Centre for Communicable Diseases (NCDD) for 14 days. According to authorities, all expenses for the flight – C$74,000 – were covered by the government. It was not until March, however, that Mongolian Prime Minister Khurelsukh Ukhnaa announced a broader repatriation initiative.

Throughout March, 983 nationals were evacuated on four government chartered flights, with evacuees required to pay around C$330 towards the airfare depending on the point of departure. Upon return, all passengers, cabin crew, and medical professionals working aboard and supervising the passengers’ health are taken directly to government designated isolation facilities for the mandated 14-day quarantine. Currently, there are 23 such facilities, including public and private hospitals, hotels, and resorts around the capital of Ulaanbaatar. During the mandatory quarantine, adults are required to pay C$25 per day for themselves and C$15 per day for any minors (age 6-18), while children five and under are exempt from payment. The government has covered any miscellaneous expenses beyond airfare and accommodation.

Problems and solutions
The NCCD detected 14 cases of COVID-19 among the repatriated by the end of March. Even though this represented only about one per cent of the total number of evacuees at the time, the State Emergency Commission (SEC) decided on March 27 to extend the mandatory quarantine period from 14 to 21 days and to test all returning nationals before boarding chartered evacuation flights. The government allocated an additional C$250,000 to pay for the extended one-week quarantine period so as to not burden the evacuees with unexpected costs.

Despite this government support, not everything is rosy for Mongolia’s repatriated citizens. While in quarantine, individuals do not have access to their luggage which the government holds for 14 days in the national custom warehouse after it’s disinfected. There have been complaints about the quality of food, about the small size of rooms (two-to-three people per room) in the designated facilities, and about the restricted access to families and loved ones. Some evacuees have instigated physical altercations or consumed alcohol against regulations. Considering these circumstances, the SEC decided at the end of March to isolate evacuees on a one-person-one-room basis, while children are still isolated with their families.

In April, the government repatriated nearly 1,070 people from Seoul and Tokyo on four flights and 332 people from China and Russia on buses; in early May, 527 people returned home from Seoul and Frankfurt. Despite Mongolian health authorities requesting passengers be tested for COVID-19 prior to boarding evacuation flights, only those flying from South Korea were tested prior to departure. Those on evacuation flights from Japan were not tested on account of Japan’s current policy to only carry out testing for individuals with fevers. As of May 4, there are 1,041 people under observation. After being discharged from quarantine, the repatriated nationals must self-isolate for two additional weeks. In addition to carrying people, the aircraft returning from South Korea also transported 3.8 tonnes of cargo including medicine, hospital equipment, and diagnostic devices for COVID-19.

Political tensions, human rights
As more COVID-19 cases were discovered among those repatriated via charter flights in March, the chair of the opposition Democratic Party of Mongolia, Erdene Sodnomzundui, criticized the government’s repatriation efforts. He said the evacuations threaten Mongolians’ health and safety by importing the virus with evacuees and that the government should be preparing for the coming economic crisis rather than spending “recklessly” on evacuations. Furthermore, he accused the government of organizing the flights to bring back the family members of high-level officials stranded abroad.

Following criticism from Erdene, Prime Minister Khurelsukh, Chair of the Mongolian People’s Party, stated that the government would not leave anyone stranded abroad and that repatriation is a human right for all Mongolians. However, as of May 4, the country has evacuated only 30 per cent of the total repatriation requests. With regard to its containment measures for COVID-19, the Mongolian government has emphasized that it has been providing an environment free from community cases internally and that it plans to keep the domestic economy running by lifting some restrictions on public facilities such as resorts and gyms. However, there are still thousands of desperate Mongolians stuck overseas, with some even organizing a protest on April 27 outside of the Mongolian embassy in South Korea and requesting the Mongolian government send more flights.

Challenges and successes
Mongolia’s approach to repatriation is a component of its conventional efforts to contain the spread of the virus. While the government has stated that repatriation is a Mongolian human right, it is doing so in a way that does not overwhelm the country’s ability to quarantine returnees and care for and track those who show symptoms of the virus. The country’s success at keeping COVID-19 in check can also be partially attributed to banning incoming international flights and slowly but steadily repatriating its citizens.

To date, Mongolia has repatriated 30 per cent of the people looking to return (compared to Canada, which has brought back 80 per cent of people wishing to return home).This approach to repatriation, however, has caused some disquiet for those returnees stuck in quarantine and for those individuals and families looking to return home without any financial support in this unprecedented situation.

Sainbuyan Munkhbat
Sainbuyan Munkhbat is a Junior Research Scholar at the Asia Pacific Foundation of Canada's Business Asia team. She is a recent graduate of the Political Science program at the University of Waterloo.

Rio Tinto’s top investors face off over emissions cut plan www.mining.com

Rio Tinto’s (ASX, LON, NYSE: RIO) top investors are set to face off at the company’s upcoming annual meeting, with only some of them in favour of pushing the miner to extend the range of its targets to reduce greenhouse gas emissions.

The world’s second-largest mining company recently committed to spend $1 billion over the next five years to reduce its carbon footprint and have “net zero” emissions by 2050.

Rio Tinto also said at the time that its total Scope 1 and Scope 2 emissions (indirect emissions from the generation of purchased energy consumed by a company, such as electricity) would be 15% lower by 2030 than 2018 levels.

The announcement triggered heated criticism from some investors and environment advocates, with a group led by a Friends of the Earth’s subsidiary tabling a shareholder motion to improve what it calls “weak” climate goals.

With three days to Rio Tinto’s annual meeting, proxy investor Institutional Shareholder Services (ISS) is recommending shareholders support the resolution that asks the miner to also tackle Scope 3 emissions — those generated by customers through the use of its products.

Shareholders “have a long-term interest in assessing whether Rio Tinto is adequately assessing and acting on its climate risk and opportunities,” including through “targets to work with its customers to achieve reductions in its scope 3 emissions,” ISS said in an April 30 note to clients.

Glass Lewis, instead, wants shareholders to reject the plan at the meeting on Thursday, Bloomberg reports.

“Not feasible”
While Rio Tinto should continue to reduce its own emissions, it’s probably not “feasible for the company to set goals based on how its customers determine to utilize its products,” the adviser said in a note to clients last month.

Market Force, a subsidiary of activist investor Friends of the Earth, has said that Rio’s current plans are a “simply a reflection of business-as-usual,” energy cost savings and efficiency measures.

“Rio Tinto is essentially telling its shareholders it is aware of a massive financial liability sitting on its books, but isn’t planning to manage that risk down,” executive director Julien Vincent said in March.

He noted that Rio’s absolute emissions would have to decline 30% in the next decade to hit the “well below” 2°C global pre-industrial levels outlined in the 2015 Paris Agreement on climate change.

UBS analyst Glyn Lawcock said the group could almost instantly achieve the 2030 target if it sold or closed its coal-fired alumina refineries and aluminum smelters in Australia.

“We couldn’t help but notice that the closure of Pacific Aluminium alone would reduce emissions by (about) 25%,”’ he said in a note.

“Maybe this is the elegant solution to Rio’s desire to reduce carbon dioxide as well as lifting margins within the aluminium business unit,” Lawcock said.

For Julian Kettle, Wood Mackenzie’s vice chairman of metals and mining, Rio’s plans to decarbonize its globe-spanning operations are a “small but significant” step in the right direction.

“Setting Rio Tinto’s $1bn in context, this represents just 16% of the dividend it distributed in 2019, or just under 5% of its reported EBITDA of $21.2bn for the same year,” Kettle said.

The miner’s bulk of earnings come from iron ore, its main commodity and a key ingredient for steelmaking. The highly polluting industry process involves adding coking coal to make carbon steel and is responsible for up to 9% of global greenhouse emissions.

Oyu Tolgoi troubles
Rio’s management will also have to face criticism over its giant Oyu Tolgoi copper project in Mongolia at the annual meeting.

US hedge fund Pentwater Capital is demanding a shakeup at the mine to stop what it calls “a massive devaluation” of the asset. The investor has a 9% interest in Turquoise Hill, the Rio-controlled company that operates Oyu Tolgoi.

Rio Tinto is not the only company criticized for its current plans to cut emissions. A report released Monday by a UK-based investor initiative showed that eight of the world’s top ten largest mining companies are not doing enough to help meet international climate goals,

Russian flag-carrier Aeroflot warns air travel may not resume until mid-summer www.rt.com

As the coronavirus pandemic has halted almost all travel around the globe, Russian’s biggest airline said that in the best-case scenario, international flights could be resumed in July.
“It is difficult to indicate the exact timing of flights so far but when looking at the best-case forecasts… international traffic may start recovering in the middle of summer,” Aeroflot spokesperson Yulia Spivakova told Rossiya 24 TV.

ADB, Mongolia sign loans to modernize vegetable production, irrigation www.montsame.mn

Ulaanbaatar /MONTSAME/. The Asian Development Bank (ADB) and the Government of Mongolia today signed $40 million in loans and a $2 million Japan Fund for Poverty Reduction (JFPR) grant to support the modernization of government-owned irrigation networks and vegetable production in Mongolia.