Tokyo 2020 president Seiko Hashimoto is "100%" certain the Olympics will go ahead, but warned the Games "must be prepared" to proceed without spectators in the event of a coronavirus outbreak.

There are 50 days until the delayed Tokyo Games begin on 23 July.

Japan is dealing with a fourth wave of coronavirus cases, with 10 areas of the country under a state of emergency.

Hashimoto told BBC Sport: "I believe that the possibility of these Games going on is 100% that we will do this."

Speaking to BBC Sport's Laura Scott, she added: "The question right now is how are we going to have an even more safe and secure Games.

"The Japanese people are feeling very insecure and at the same time probably feel some frustration at us talking about the Olympics and I think that is giving rise to more voices opposing having the Games in Tokyo.

"The biggest challenge will be how we can control and manage the flow of people. If an outbreak should happen during the Games times that amounts to a crisis or an emergency situation then I believe we must be prepared to have these Games without any spectators.

"We are trying to create as complete a bubble situation as possible so we can create a safe and secure space for people who come in from overseas as well as people who are in Japan, the residents and citizens of Japan."

Will the Tokyo 2020 Olympics go ahead?

Olympics will go ahead even under state of emergency, says IOC

Tokyo 2020 president Seiko Hashimoto

The 2020 Olympic Games were postponed by one year because of the Covid-19 pandemic

No international fans will be permitted this summer at the Olympics or Paralympics, which begin on 24 August.

A new wave of infections began in April in Japan, where some areas face restrictions until 20 June.

The country began vaccinating its population in February - later than most other developed nations - and so far only about 3% of people have been fully vaccinated.

Hashimoto said it was a "very painful decision" to have no overseas spectators present, but one necessary to ensure "a safe and secure Games".

"[For many] athletes it's a once-in-a-lifetime opportunity that they can compete in the Games. To not be able to have family members and friends who have supported them all along must be a very painful thing and that has caused me pain too," she said.

On the possibility of some countries being prevented from travelling, Hashimoto added: "Who can come to Japan is something the Japanese government will decide.

"If it should happen that a country cannot come to Japan because they do not meet the minimum requirements that the government set, I think that is something we have to listen to what the IOC and IPC feel about that."

Hashimoto was appointed Games president in February after her predecessor Yoshiro Mori quit over sexist comments he made.

The former Olympics minister is a seven-time Olympian herself, having competed as a cyclist and a speed skater.

"Athletes must be thinking 'even if it we put so much effort into preparing for the Games, what if those Games don't happen, what happens to all that effort and all the lifetime experience and all that we've put into it?' said Hashimoto.

"What is important for me is to have my voice directly reach those athletes. One thing the organising committee commits and promises to all the athletes out there is that we will defend and protect their health."

Former Games president Mori said that if the number of female board members increased, they would have to "make sure their speaking time is restricted somewhat, they have difficulty finishing, which is annoying".

He later apologised for his "inappropriate" comments.

Following her appointment, Hashimoto said she wanted the legacy of the Tokyo Games to be a society that accepted people regardless of gender, disability, race, or sexual orientation.

"Japanese society still has an unconscious bias. Unconsciously, domestic roles especially are clearly divided by the sexes. It's deep rooted and it is very tough to change this," said Hashimoto.

"The former president's gaffe, the sexist remarks, actually became a trigger, an opportunity, a turning point within the organising committee that made us all aware we have to change this.

"That was a big push to go forward with this. For a woman to assume the top position of such a huge organisation I believe had some impact on society itself."

'We are doing everything we can'

With 50 days to go until the opening ceremony in Tokyo, the first international athletes arrived in Japan this week.

Recent polls in Japan have shown nearly 70% of the population do not want the Olympics to go ahead, while on Wednesday, Japan's most senior medical adviser said that hosting the Olympics during a pandemic was "not normal".

But no major countries have spoken out against the Games taking place and Team GB remain "fully committed" to sending a full team.

"At this point, I am very confident we will have these Games," said Hashimoto. "We are doing everything we can, we are being very thorough about that.

"I know we have very limited time to deal with anything that might come up but we will do everything we can to improve the situation and we will see these things through.

"If the pandemic once again accelerates across the world, and so it should happen that no country can come to Japan, then of course we cannot have those Games.

"But I think we have to be very careful in reviewing the current situation and deciding what to do depending on what we consider to be right."

Ivanhoe Mines said on Wednesday its copper mining joint venture in the Democratic Republic of Congo, which started production last week, had signed a 10-year deal to process some of its copper concentrate at a nearby smelter.

Congolese authorities last week reiterated a long-standing ban on copper concentrate exports, and said only mining companies with waivers would be allowed to export concentrate.

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The ban has been in place since 2013 to encourage domestic processing.

The Lualaba smelter, majority-owned by China Nonferrous Mining Corp Ltd (CNMC), will treat up to 150,000 wet metric tonnes of concentrate a year from the Kamoa-Kakula mine Ivanhoe is developing with Zijin Mining in return for a treatment charge and market-based realization fee.

THE LUALABA SMELTER, MAJORITY-OWNED BY CHINA NONFERROUS MINING CORP (CNMC), WILL TREAT UP TO 150,000 WET METRIC TONNES OF CONCENTRATE A YEAR

The 400,000 tonnes per year capacity smelter, which is around 40 kilometres (25 miles) from the mine by road, will produce blister copper ingots containing around 99% copper. The Ivanhoe-Zijin joint venture, Kamoa Copper, will then collect these from a storage area, Ivanhoe said in a statement.

The processing deal “will account for just under 40% of the total volumes of concentrates produced by Phase 1, making the most of available in-country smelter capacity,” said Kamoa Copper Chief Financial Officer Rochelle de Villiers, who is leading concentrate offtake and marketing negotiations.

The first delivery was made on Tuesday, she added.

Ivanhoe expects Kamoa-Kakula to be the world’s highest-grade major copper mine. Production started ahead of schedule on May 26, and Ivanhoe expects output of 80,000 to 95,000 tonnes of copper in concentrate this year and peak annual output of over 800,000 tonnes after several phases of expansion.

In a separate statement, CNMC said the tolling agreement would allow both sides to realise synergies upstream and downstream, without elaborating.

Kamoa Copper is also evaluating the construction of a smelting complex which would produce blister and anode copper as well as sulphuric acid as a by-product.

(By Tom Daly and Helen Reid; Editing by Mark Potter)

The World Health Organization (WHO) has approved China's Sinovac Covid vaccine for emergency use.

The WHO said it prevented symptomatic disease in 51% of those vaccinated and prevented severe symptoms and hospitalisation in 100% of samples.

Some evidence and data gaps are still lacking though, according to WHO experts.

It is the second Chinese vaccine to receive the green light from the WHO, after Sinopharm.

The approval opens the door for the jab to be used in the Covax programme, which aims to ensure fair access to vaccines.

The vaccine, which has already been used in several countries, has been recommended for over 18s, with a second dose two to four weeks later.

The emergency approval means the vaccine "meets international standards for safety, efficacy and manufacturing", the WHO said.

A study in a Brazilian city saw a 95% drop in Covid deaths after it vaccinated almost all of its adults with Sinovac.

Serrana, in the Southeastern Brazilian state of Sao Paulo, is home to 45,000 residents. Once 75% of its population was vaccinated, the number of cases and hospitalisations fell, according to the study.

Brazil has the second deadliest outbreak of Covid infections in the world.

It is hoped that the decision to list the Chinese vaccine for emergency use will give a boost to the Covax initiative, which has been struggling with supply problems.

"The world desperately needs multiple Covid-19 vaccines to address the huge access inequity across the globe," said Mariangela Simao, the WHO's assistant director general for access to health products.

"We urge manufacturers to participate in the Covax facility, share their know-how and data and contribute to bringing the pandemic under control," she said.

China says it has already produced 10 million doses of Covid vaccines for the Covax scheme and that it aims to hit 3 billion doses by the end of the year.

As well as China, the vaccine is already being administered in countries including Chile, Brazil, Indonesia, Mexico, Thailand and Turkey.

One of Sinovac's main advantages is that it can be stored in a standard refrigerator at 2-8 degrees Celsius.

This means Sinovac is a lot more useful to developing countries which might not be able to store large amounts of vaccine at low temperatures.

The emergency approval came as the heads of the WHO, the World Trade Organisation, the International Monetary Fund and the World Bank appealed for a $50bn (£35bn) investment fund to help end the pandemic.

In a joint statement they said the world had reached a perilous point, and that inequalities in access to vaccines risked prolonging the pandemic, and many more deaths.

They have called for the money to be invested in areas including vaccine production, oxygen supplies, and Covid-19 treatments, ensuring they are distributed fairly.

They also called on wealthy countries to donate vaccine doses immediately to developing nations.

Mongolia on Tuesday reopened its air border to resume international passenger flights after more than a year of closure because of the COVID-19 pandemic.

"Our country is officially reopening its air border starting today," Tseden-Ish Ganzorig, head of the government's press office, said in a statement.

However, people who have received two doses of the COVID-19 vaccine will be only allowed to enter the country.

Mongolia suspended international passenger flights in mid-February 2020 to prevent the spread of COVID-19.

So far, Mongolia has registered 59,229 COVID-19 cases, with 297 deaths. Among all patients, 50,763 have recovered from the disease.

The Asian country, with a population of around 3.3 million, reported its first imported COVID-19 case in March 2020 and confirmed its first locally transmitted case in November.

On June 9, Mongolia will elect its next president. It’s been a messy campaign season, with all sides claiming that the fate of Mongolia’s democracy is at stake in the upcoming vote. For a rundown of the state of the race, and the larger issues at play, The Diplomat spoke to Bolor Lkhaajav, a book editor at The Mongolia Society, Indiana University Bloomington, and a frequent commentator on Mongolia’s foreign policy and politics. Bolor is also a co-host of the “77 Nation” podcast based in Washington, D.C.

It’s been an especially contentious campaign season, with the MPP passing laws banning the incumbent president from running, and President Battulga attempting to disband the MPP. Can you walk us through the major developments of the past few months?

Since its peaceful democratic revolution in 1990, Mongolia has successfully held five presidential elections in a multi-party system. This year’s presidential election, to be hold on June 9, 2021 has been contentious for a number of reasons, including but not limited to the Mongolian People’s Party (MPP) holding a majority of seats in the parliament, the outbreak of COVID-19 and the government’s response, and the weakening of major opposition party, the Democratic Party. It is especially contentious because the opposition parties and observers fear one-party rule in Mongolia, resulting in hunger strikes to warn against that path.

When the DP lost in a landslide to the MPP in 2016 – retaining only nine out of 76 seats in the parliament (Great Ikh Khural) – the battle for the office of the president began for both the DP and MPP. For the DP, the ambition for the office of the president was to hold some high-level power in the government, since they only hold nine seats in the parliament. For the MPP, the goal was to hold the power of all three branches of the government – the parliament, the office of the president, and the cabinet.

Following its landslide victory in the parliamentary election, the MPP has hoped for the office of the president. One week before Mongolians last headed to the presidential polls, on May 9, 2017 an audio recording was released to the public. It appeared to be a recording of a 90-minute conversation involving the chairman of the parliament, Enkhbold Miyegombyn, who was also the MPP’s 2017 presidential candidate. The audio, allegedly recorded in 2014, preceded Mongolia’s parliamentary elections of June 2016. The recording became famous for its discussion of the MPP’s “60 million tugrik” ($20 million) deal to take bribes to shuffle government positions as part of a plan to empower its party grip. The political atmosphere right before the 2017 presidential election was almost at a boiling point.

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When MPP lost the presidential election to DP candidate Battulga Khaltmaa, they pursued an amendment to the constitution. The president has called for a national referendum, and used his veto power. But his actions were ignored by the MPP majority parliament. In 2019, the parliament approved the third discussion of the draft amendments to the Constitution of Mongolia, under which the newly elected president will serve a single, six-year term. Previous presidents all have served two terms, except Enkhbayar Nambaryn and, now, Battulga.

This is not to say that these legislative decisions are only directed toward banning former president Enkhbayar and Battulga from running, however. Amendments to the constitution, Mongolia’s balance of power, the semi-presidential system, and the question of how much power should a president have – all of these topics have been part of an ongoing political discussion in the Mongolian political arena for the past decades.

It is important too that the election law requires the president-elect to suspend their party membership in order to fully serve the people and country. The weakening of the DP since the 2016 parliamentary election might have indirectly pressured the incumbent president to stay in power as president.

Moreover, legal studies scholars have been extremely unhappy with the Constitutional Court overriding its power to micromanage the election system. For example, advisors to the president Dr. Enkhbaigali Byambasuren and Dr. Gunbileg Boldbaatar emphasized that “Restricting the right to elect and be elected means restricting the rights of political parties to nominate and the rights of all supporters, the rights of all the people to elect their President. The people’s right to vote is guaranteed by the Constitution and it should not be restricted. The Constitution cannot be interpreted for political purposes.”

As for former president Enkhbayar, who was jailed for abuse of power and corruption in 2012, he has lost the support of the majority of the people. Since being released from jail, he has been seeking office and has been rejected by the General Election Committee. The more he tries to be in political life again, the more people are suspicious.

The family-feud-like political game between the MPP and DP forced Enkhbat Davaasuren to run for office from the Mongolian Labor Party (MLP). In his latest interview, Enkhbat stated that he is running for president not because of political ambition or career; he is running for office because he is different from the other candidates who have been in politics for too long and have political life or party affiliations to lose.

Mongolian youths played a key role in the country’s transition to democracy. What role are young Mongolians playing in the current political atmosphere?

A new nationwide ​poll conducted by the International Republican Institute (IRI) “surveyed Mongolians between the ages of 18 and 40, capturing youth perspectives prior to the June 2020 parliamentary elections and amid the fallout of the COVID-19 pandemic.” According to this latest research, “94 percent of Mongolian youth believe it is important that all members of the country’s adult population are included in political decision-making. Ninety-four percent of Mongolian youth believe it is important that all members of the country’s adult population are included in political decision-making. More specifically, 97 percent of Mongolian youth find the inclusion of young adults important, and 91 percent think the inclusion of women and people with disabilities is crucial as well.”

Unemployment was by far the biggest concern of Mongolian youth, with 54 percent of those surveyed listing it as one of the three most important problems facing Mongolia today. Corruption was the second-most common response (22 percent of respondents), followed education (18 percent) and poverty (18 percent).

IRI’s survey also found that “Young Mongolians have very little confidence in political parties, with 60 percent expressing either a ‘very’ (10 percent) or ‘somewhat’ (50 percent) negative opinion of the parties.” But their disillusionment is not limited to the political parties: “More than half hold a ‘very’ (11 percent) or ‘somewhat’ (40 percent) negative opinion of courts, and 56 percent have either a ‘very’ (9 percent) or ‘somewhat’ (47 percent) negative view of the parliament.” Over half of respondents also rated the national government as performing “very” or “somewhat” poorly in providing economic opportunity, jobs, and opportunities for citizen engagements in politics.

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Yet IRI noted that “Despite the current obstacles facing the country, the poll found overwhelming support among Mongolian youth for maintaining a democratic system (76 percent) – a promising sign for Mongolia’s future.”

Moreover, in the past two decades, Mongolians abroad have been increasingly active in Mongolia’s political life. As of 2020, there are approximately 150,000 Mongolians studying and living abroad. With modern technology and free flow of information, these people are ever connected to Mongolia. There has been an increase in petitions submitted by Mongolian abroad on a number of pressing issues such as battling air pollution, corruption, offshore accounts, and most recently, the Chinese government’s crackdown on Mongolian language in the Inner Mongolian school system.

What does the election of 2021 tell us about the health of democracy in Mongolia? What markers should we watch for in the last week of the campaign, and on poll day itself?

In recent years, Mongolia’s high politics, corruption, and bribery cases have dampened many people’s trust in the government and the law enforcement. Just look at the IRI poll above. We are talking about a two-party dominated political system that has been scratching each other’s back since 1990. Between 2014 and 2016, Mongolia experienced large numbers of social mobilization both at home and abroad, protesting against poor air quality, mining on sacred land in Noyon-Uul, and offshore accounts that involved high-level government officials — some are still in office. Earlier this year, the public outrage over a mistreatment of a hospital patient resulted in the resignation of Prime Minister Khurelskh Ukhnaa. Whether he resigned too easily in order to run for president is another argument. However, in a recent podcast talk, current Prime Minister Oyun-Erdene Luvsannamsrai stated, “The people, the public are always watching and they are no fools. If the people don’t want you, you will not be elected.”

The emergence of a third-party option, such as the presidential candidate Enkhbat Davaasuren is welcome amongst the youth. There has been significant social media support for Enkhbat, especially among Mongolians abroad and Mongolian youths in Mongolia. The former CEO and founder of Datacom, a computer engineer, and a scholar, Enkhbat is favored mainly because the people do not want cronies from the MPP and DP, especially not after Khurelsukh resigned during a tough time for his own personal political gain. The DP candidate, Erdene Sodnomzunduin, is running under the slogan of “Mongolia without dictatorship,” clearly fearing one-party dominance in Mongolia if he or Enkhbat loses the June 9th presidential election.

Whether it’s a parliamentary election or presidential election, the people are challenging those in power for better governance, a citizen-centered judicial system, human rights, and economic opportunities. Educated youth are increasingly frustrated with unemployment. All these issues need some support from the government. The government, by using democratic practices, must provide more opportunities.

Mongolia will be facing a major energy crisis in the next decade. As developed and developing countries move to renewable energy and away from coal-based energy, Mongolia’s economy must seek an alternative source. Mongolian politicians, policymakers, and its next president must avoid succumbing to the small-time domestic political game and really focus on the bigger issues. The country needs to move on in a healthy direction. In this pursuit, democracy, multi-party governance, a president that is elected by the people, and the participation of youths are the most important components.

MANILA, PHILIPPINES (2 June 2021) — The Asian Development Bank (ADB) has approved a loan and technical assistance package totaling $31 million to support the improvement of livestock production systems in 20 soums (districts) of four aimags (provinces) in Central Mongolia.

“Mongolia’s agriculture sector remains a key pillar of the economy, with a majority of the poor depending on agriculture and extensive livestock production—especially meat and milk—to sustain their livelihoods,” said ADB Senior Natural Resources Economist Jan Hinrichs. “A high incidence of poverty and food insecurity is particularly alarming in rural areas. There is great potential to boost exports and increase income generation significantly if the major constraints facing the sector are addressed in a sustainable manner.”

The lack of a regulatory framework, enforcement capacity, and coordinated policies to control livestock numbers has led to an increase in sheep units by 71%, from 69.5 million in 2009 to 119.0 million in 2019. Consequently, 70% of Mongolia’s pastureland is now degraded. These developments are exacerbated by extreme climatic events such as droughts and dzuds (episodes of extreme winter weather), which have resulted in significant livestock deaths and increased the risk of rural–urban migration. Further, a lack of appropriate water points, animal shelters, and feeding throughout the winter leads to the concentrated use of surrounding pasture and undermines pasture management.

Mongolia also faces challenges throughout the meat value chain, limiting access to export markets that are vital for lifting incomes and overall sector growth. Transboundary animal diseases are prevalent, and the veterinary system has been unable to manage outbreaks effectively. Food hygiene practices and sanitary standards have also fallen short of international standards.

ADB supports Mongolia’s economic diversification with several projects encouraging labor-intensive growth through utilizing and preserving Mongolia’s natural capital.

The new Climate-Resilient and Sustainable Livestock Development Project will build the climate resilience of herders against the increased frequency of severe weather, promote a reduction in livestock numbers, and increase the quality of livestock products. The project will also build the capacity of the public institutions of the Government of Mongolia to better assist the sector.

Specifically, the project will work toward pasture rehabilitation and carbon sequestration while increasing the incomes of herder households through forming pasture user groups and implementing rangeland user agreements. It will also construct or rehabilitate 382 wells and develop 466 water use agreements, while establishing hayfields and storage for herder groups.

To improve the quality and health standard of livestock herds and products, the project will better coordinate and integrate the respective livestock value chain participants through activities such as establishing standards for health and carcass quality, supporting veterinary units, cashmere marketing, and animal breeding

More than 38,500 people in the 20 soums, including 7,709 poor and vulnerable persons, are expected to benefit from the project, which is supported by a $1 million technical assistance financed by the Japan Fund for Poverty Reduction. The technical assistance will strengthen Mongolia’s food safety and traceability system, enhancing the livestock sector regulatory framework and capacity.

The project is financed by an ADB $23 million ordinary loan and $7 million concessional loan, with the government and beneficiaries providing $2.08 million and $2.42 million, respectively, toward the total project cost of $34.5 million. It is due for completion in June 2027.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

MOSCOW. June 1 (Interfax) - The survey conducted for the Soyuz Vostok gas pipeline project has been successful despite the coronavirus pandemic, and Mongolia will continue to support the project, Mongolian Foreign Minister Batmunkh Battsetseg said.

"Minister Lavrov and I have discussed a number of important trade and economic cooperation projects. I am glad that, despite the pandemic, the survey conducted for the project of a gas pipeline from Russia to China via the territory of Mongolia has been progressing successfully," Battsetseg said at a press conference after talks with Russian Foreign Minister Sergei Lavrov.

"We are ready to continue our comprehensive support for the activity of the special-purpose commercial vehicle named Gazoprovod Soyuz Vostok," she said.

The minister also said she had agreed with Lavrov "to continue cooperation in the attraction of investments, which would help boost the efficiency of the Mongolian-Russian joint venture, Ulaanbaatar Railways, and modernize the company's railroad infrastructure and rolling stock."

Mongolia has invited Russian partners to join new railroad construction projects in its territory, Battsetseg said.

On May 31, Prime Minister L.Oyun-Erdene became acquainted with the works being carried out in Bayanzurkh district of the capital city.

More specifically, he became acquainted with the plans of underpass and roundabouts as well as the re-planning of ger areas in the capital city, ‘Shar Khad’ subcenter, and the project implementation for affordable, green apartments. As of currently, construction is taking place for an underpass connecting the roads of Dunjingarav and Narny Zam, while another underpass is also planned to the southwest of Narantuul Market.

By constructing underpasses and new roads as well as making appropriate changes in areas that often have heavy traffic, a study has found that the amount of traffic will be reduced by 27 percent.

Re-planning of ger areas: Of 1,694 hectares of land to be re-planned in the capital city, apartments are being constructed by 14 entities on 598 hectares of land at 24 locations in Bayanzurkh district. In the project framework, apartments for 4,247 households have been completed so far.

‘Shar Khad’ subcenter: Prime Minister L.Oyun-Erdene also became acquainted with the planning for Shar Khad subcenter. With the subcenter extending across the territory of 5 khoroos in the district, a 300-bed hospital and a kindergarten with a capacity of 240 children are planned to be built alongside apartments and other facilities. “The necessary financing for the hospital construction will be allocated from the 2022 state budget,” said the Prime Minister.

Affordable apartments: With financing of the Government of Mongolia and the Asian Development Bank, a project is currently being implemented on developing ger areas in six subcenters in Ulaanbaatar city. Green apartments will be built on 5 hectares of land in 5 phases, with 55 percent of the apartments to be rent-to-own, 15 percent to be rented through welfare, and 30 percent to be sold at the market price. For instance, 0.16 hectares of land have been acquired to build a model apartment building with a capacity of housing 20 households in Khoroo 19 of Bayanzurkh district. With four households having previously lived at the location, the land and real estate owned by each of the households were valued at an average of MNT 40 million, with 1 sq.m being MNT 100 thousand. The apartment building is planned to be completed alongside parking space and green area this year.

“In order to support decentralization, the Government has to support the Municipality of Ulaanbaatar. In its framework, six subcenters will be developed which will later be increased to 10, supporting private sector investment and the relocation of government organizations.

The 2022 state budget will be focused on financing the development of subcenters by constructing apartments, schools, kindergartens, hospitals, and green areas and creating more job opportunities. Through this, it will become possible to decentralize and reduce traffic congestion in the capital city,” said Prime Minister L.Oyun-Erdene.

On June 1, Minister of Foreign Affairs B.Battsetseg held official talks with Minister of Foreign Affairs of the Russian Federation S.V.Lavrov in the framework of her visit.

The Foreign Ministers exchanged views on bilateral relations and a wide range of matters regarding regional and international cooperation. Assessing the current state of relations between Mongolia and Russia, they discussed plans to further develop relations, especially through organizing mutual high-level visits and accelerating large-scale projects being implemented in priority sectors.

Discussing the progress of the joint plan being implemented on the celebration of the 100th anniversary of the establishment of diplomatic relations between Mongolia and Russia, the Ministers agreed to give more significance to the activities planned in its framework.

The sides also exchanged views on opportunities to further develop bilateral trade and economic cooperation, and expressed their satisfaction in the progress being made in the studies being carried out for the construction project for a gas pipeline supplying natural gas from Russia across Mongolia to China.

Furthermore, it was decided to enhance the operations of ‘Ulaanbaatar Railway’ Mongolian-Russian Joint Stock Company and continue to cooperate in making necessary investments for renewing railroads and train cars.

Agreement was also reached on deepening cooperation in the education, culture and arts, and humanitarian sector. For instance, the work to establish a Mongolian-Russian joint school in Ulaanbaatar city was decided to be accelerated.

Within the framework of international and regional cooperation, the sides agreed to continue the tradition of close cooperation between the two countries.

Following the talks, the Foreign Ministers of Mongolia and Russia held a joint press conference. Moreover, the two Ministers also attended the ceremony to award Hero of Mongolian People’s Republic, Hero of USSR, cosmonaut Jugderdemidiin Gurragchaa with the Order of Alexander Nevsky per the decree of Russian President Vladimir Putin.

Canada’s Centerra Gold (TSX: CG) announced late on Monday that its Kyrgyz subsidiaries have filed for bankruptcy in New York to protect investors and restructure the company, whose Kumtor gold mine was seized by the former soviet nation last month.

The Toronto-based miner said it hoped the internationally recognized restructuring process will facilitate potential negotiations with the government of Kyrgyzstan, which is now in full control of Kumtor.

Centerra also noted the ongoing proceedings will not impact any other areas of the company’s business, including its Mount Milligan copper-gold mine in Canada, the Öksüt gold operation in Turkey and the molybdenum business in North America.

The move comes on the heels of the Kyrgyz government organizing a press tour to the mine last week, in which it said Kumtor was operating as usual.

“There are no problems at the Kumtor mine,” Nurdin Usenov, mill manager and acting director of operations told reporters. “All departments are working, production targets are being met, there are enough stocks of spare parts, consumables, lubricants and fuel.”

According to a new law passed in mid-May, the Kyrgyz government can take control for up to three months of any company that operates under a concession agreement if that firm violates regulations that damage or put locals and the environment at risk.

The head of a Kyrgyz state commission investigating alleged wrongdoing at the Kumtor mine, Kamchybek Tashiev, said on May 17 the agreement with Centerra Gold had to be revoked on the grounds of “corruption” and “violations of safety and environmental regulations.”

At the same time, a Kyrgyz court fined KGC more than $3 billion for allegedly unloading mining waste on glaciers near the mine, 4,000 meters above sea level. A state commission also recently claimed that the KGC owed more than $1 billion in unpaid taxes.

Former Kyrgyz Prime Minister Omurbek Babanov was detained on Monday as part of the investigation into corruption linked to the development of Kumtor.

Inside job?

The man who now controls the operation, Tengiz Bolturuk, was one of Kyrgyzstan’s three appointed representatives on the 11-man board of Centerra directors.

The dual Kyrgyz-Canadian citizen is being sued by the Canadian miner under the premise that he conspired to steal the asset from the company while he was a director.

Bolturuk had gained a reputation as a very hostile colleague in Toronto, two sources familiar with his time on the board told Eurasianet.

At home he had been making an impression, too. In a letter published in Kyrgyz media, employees of Kyrgyzaltyn, the state miner that owned the government’s shares in Centerra, showed discontent with Bolturuk’s growing involvement in Kumtor’s operations.

The document claimed he had fired dozen of locals employees and seemed to have positioned himself as the de facto head of the mine.

Strategic review

In a conference call on Tuesday, Centerra said it was conducting a “strategic review” of its ownership of KGC and KOC.

“The seizure of the mine is based on false information and groundless allegations that undermine everything we have built together,” Scott Perry, Centerra’s president and CEO said in an open letter to the people of Kyrgyzstan. “We fear that the government’s unjustified action will put thousands of well-paying jobs and the businesses of hundreds of Kyrgyz suppliers at risk.”

Kumtor is the largest of Centerra’s three gold mines, accounting for over 50% of the company’s total output.

The operation is also crucial to Kyrgyzstan. It accounts for a fifth of the ex-Soviet country’s total industrial output and has produced more than 13.2 million ounces of gold between 1997 and the end of 2020. Last year’s output was slightly over 556,000 ounces.

Dalton Baretto, Canaccord Genuity

Arbitration proceedings can take up to ten years and even if the Canadian miner succeeds, there is not guarantee it will be paid the stipulated amount.

Dalton Baretto of Canaccord Genuity said in a May note that he wasn’t surprised by Kyrgyzstan’s move.

“We have been anticipating something like this since President Japarov took power on January 10; however, the speed and breadth of these reforms has caught us off-guard,” he wrote.

The analyst added he believed the government has opened the door to what is likely going to be a multi-year degradation of the relationship between Centerra and the Kyrgyz State.

“While Centerra Gold will leverage all available avenues of international trade disputes, we believe these are unlikely to be effective in the long term,” Baretto said.

Kumtor has been the focus of a number of disputes between the company and the Kyrgyz government.

Japarov, who seized power after violent riots last October, once campaigned for the nationalization of the mine. After winning January’s elections and assuming the post, however, he said he no longer considered it necessary.

Kyrgyzstan has a history of popular uprisings and political turmoil, ever since gaining its independence after the collapse of the Soviet Uni