1 MONGOLIA MARKS CENTENNIAL WITH A NEW COURSE FOR CHANGE WWW.EASTASIAFORUM.ORG PUBLISHED:2024/12/20      2 E-MART OPENS FIFTH STORE IN ULAANBAATAR, MONGOLIA, TARGETING K-FOOD CRAZE WWW.BIZ.CHOSUN.COM PUBLISHED:2024/12/20      3 JAPAN AND MONGOLIA FORGE HISTORIC DEFENSE PACT UNDER THIRD NEIGHBOR STRATEGY WWW.ARMYRECOGNITION.COM  PUBLISHED:2024/12/20      4 CENTRAL BANK LOWERS ECONOMIC GROWTH FORECAST TO 5.2% WWW.UBPOST.MN PUBLISHED:2024/12/20      5 L. OYUN-ERDENE: EVERY CITIZEN WILL RECEIVE 350,000 MNT IN DIVIDENDS WWW.GOGO.MN PUBLISHED:2024/12/20      6 THE BILL TO ELIMINATE THE QUOTA FOR FOREIGN WORKERS IN MONGOLIA HAS BEEN SUBMITTED WWW.GOGO.MN PUBLISHED:2024/12/20      7 THE SECOND NATIONAL ONCOLOGY CENTER TO BE CONSTRUCTED IN ULAANBAATAR WWW.MONTSAME.MN PUBLISHED:2024/12/20      8 GREEN BOND ISSUED FOR WASTE RECYCLING WWW.MONTSAME.MN PUBLISHED:2024/12/19      9 BAGANUUR 50 MW BATTERY STORAGE POWER STATION SUPPLIES ENERGY TO CENTRAL SYSTEM WWW.MONTSAME.MN PUBLISHED:2024/12/19      10 THE PENSION AMOUNT INCREASED BY SIX PERCENT WWW.GOGO.MN PUBLISHED:2024/12/19      КОКС ХИМИЙН ҮЙЛДВЭРИЙН БҮТЭЭН БАЙГУУЛАЛТЫГ ИРЭХ ОНЫ ХОЁРДУГААР УЛИРАЛД ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     "ЭРДЭНЭС ТАВАНТОЛГОЙ” ХК-ИЙН ХУВЬЦАА ЭЗЭМШИГЧ ИРГЭН БҮРД 135 МЯНГАН ТӨГРӨГ ӨНӨӨДӨР ОЛГОНО WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     ХУРИМТЛАЛЫН САНГИЙН ОРЛОГО 2040 ОНД 38 ИХ НАЯДАД ХҮРЭХ ТӨСӨӨЛӨЛ ГАРСАН WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/20     “ЭРДЭНЭС ОЮУ ТОЛГОЙ” ХХК-ИАС ХЭРЛЭН ТООНО ТӨСЛИЙГ ӨМНӨГОВЬ АЙМАГТ ТАНИЛЦУУЛЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     Л.ОЮУН-ЭРДЭНЭ: ХУРИМТЛАЛЫН САНГААС НЭГ ИРГЭНД 135 МЯНГАН ТӨГРӨГИЙН ХАДГАЛАМЖ ҮҮСЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     “ENTRÉE RESOURCES” 2 ЖИЛ ГАРУЙ ҮРГЭЛЖИЛСЭН АРБИТРЫН МАРГААНД ЯЛАЛТ БАЙГУУЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     “ORANO MINING”-ИЙН ГЭРЭЭ БОЛОН ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ТӨСЛИЙН АСУУДЛААР ЗАСГИЙН ГАЗАР ХУРАЛДАЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     АЖИЛЧДЫН САРЫН ГОЛЧ ЦАЛИН III УЛИРЛЫН БАЙДЛААР ₮2 САЯ ОРЧИМ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     PROGRESSIVE EQUITY RESEARCH: 2025 ОН “PETRO MATAD” КОМПАНИД ЭЭЛТЭЙ БАЙХААР БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     2026 ОНЫГ ДУУСТАЛ ГАДААД АЖИЛТНЫ ТОО, ХУВЬ ХЭМЖЭЭГ ХЯЗГААРЛАХГҮЙ БАЙХ ХУУЛИЙН ТӨСӨЛ ӨРГӨН МЭДҮҮЛЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/19    

Events

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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Mongolia's child jockeys risk injury and death to race, but is it tradition or just child labour? www.abc.net.au

The smell of wool grease and smouldering logs hangs in the air as seven-year-old Namuun carries a saddle — weighing as much as she does — to a line of horses tied to a post.

On the edge of the Gobi desert, traditional Mongolian tents, known as "ger", mark the silent landscape. They provide shelter for entire families who eat, sleep and live in one small space together.

But you're unlikely to find Namuun there — she prefers to spend her time on horseback.

She is proud to be one of the only female child jockeys in Mongolia.

With the help of her father, she is swung up onto the saddle and slips her pink cowgirl boots into the stirrups.

She begins to circle the campsite and as the wind whips up sand from the nearby dunes. Namuun squints her eyes and breaks into song — a "gingoo" tune that she says is a tribute to their horses to make them feel calm.

She gathers the reins in close to the saddle and leans forward. With just one kick, her horse launches forward, rocketing into the distance behind a motorbike.

They break into a gallop and race 25 kilometres across the desert back home.

This is Namuun's daily training for the Naadam festival — Mongolia's most famous nomad-style games, where competitors try their hand at horse racing, wrestling and archery.

The festival has been around in some form since the Genghis Khan era and continues to be treasured by nomadic families like Namuun's.

Retired horse trainer Tsegmid Sainbayar explains that parents have thrown their children into the saddle for races since Naadam's beginnings, because "children are the lightest, not as heavy for the horses".

When asked what she thinks of the sport, Namuun smiles and says she loves horses.

"My father trains the horses and I am the jockey to race them," Namuun says as she points to her blue ribbons tied to the inside of the ger.

"I feel so good when I am on the horse's back, my family are so glad when I race, when I become a winner my brother is so proud of me."

But other young jockeys don't feel the same way. They see it as a job that they must do.

Casualties won't change tradition
More than 10,000 children participate in 395 horses races across the country.

Many parents rent out their kids to ride as jockeys over the summer so they can earn a wage to send home to their families.

On race day, some can compete in up to eight races a day, starting at 9am and finishing at 9pm.

But the sport is inherently dangerous.

Last year, about 600 child jockeys were thrown from their horses and 169 were killed, according to Mongolia's National Traumatology and Orthopaedics Research Centre.

The number of casualties, however, isn't enough to cause widespread change in this Mongolian tradition.

Despite rules mandating that children must wear a helmet in races, in rural Naadam festivals, many child jockeys go without, or only wear helmets on race day.

While Namuun's mother, Gaanchimeg, says the sport is "good for their health" and "a national tradition", she concedes she holds some concerns for her daughter.

"Namuun didn't have any accidents so far but when she races I always worry," she says.

Children as young as five entered into races
Child rights groups want better safety standards to be enforced and for the minimum age of jockeys to be raised to 18.

Currently, children only need to be aged seven to compete.

But some as young as five still are entered into races in rural areas.

UNICEF child protection specialist Amaraa Dorjsambuu does not believe tighter regulations alone are the solution.

Rather, she says there needs to be a change in mindset among parents to put a child's right to education ahead of making money as a jockey.

"At present, the national legal system on the protection of the rights of child jockeys is not fully developed," Ms Dorjsambuu says.

"When child jockeys get injured, horse trainers and parents tend not to take it seriously and tend to only agree on medical costs, as there are no legal regulations to determine and punish perpetrators.

"One of the biggest concerns is the unofficial races — now ever more expanding — to hold horse races for private celebrations [that] happen without any supervision from the authorities and any injuries or violations to child rights can go unreported."

Traditional festival now 'just about the prize money'
As the festival slowly turns into a business, it is also facing more scrutiny.

Many fear Naadam is losing its spirit as a celebration of the Mongolian horse. The horse is one of the most treasured animals in Mongolia. Not only did they transport the travelling caravan of Genghis Khan's sprawling empire as they conquered new lands in the 13th century, but they also fed them.

But on two recent Naadam race days, horse trainers were seen openly giving their horses performance enhancing drugs.

Some trainers used doses of the diuretic furosemide, sodium bicarbonate to counteract lactic acid build-up or lactated ringers for hydration.

Others were seen heavily handling horses and driving nails into the bridles either side of the horse's bit.

Former horse trainers, including Tsegmid Sainbayar, believe the traditional festival is being spoiled by corrupt practices.

"I've trained racing horses since 1970s. We used to start early with preparation and give them extra feed to make them strong," says Mr Sainbayar.

"Now the rules aren't strict and everything is becoming easier and just about the prize money."

The future of Naadam
In the capital Ulaanbaatar, coffee shops are springing up on street corners.

Young Mongolian men stroll by not the traditional "del" Mongolian coat with the high collar, clinched waist and buttons to one side — but rather, jeans and a printed T-shirt.

With more young people moving to the city and leaving the nomadic lifestyle, many worry that Naadam won't exist in the future.

But on Naadam festival day in Saikhan Ovoo village, the mood is hopeful.

Families unload their horse trucks around a Buddhist shrine and arch that marks the finish line for the horse races.

Wrestlers in red underwear and a loose blue jacket enter the arena with their hands in the air soaring like eagles.

Horse trainers sprinkle mare's milk on the horse's rump for good luck.

Sitting in the shadow of the horse truck, Namuun speaks matter-of-factly.

"I will probably only be racing until I am 12 or 13 then I will be out of the game," she says.

When asked what she wants to do she wants to do in the future, she replies with a big smile: "I want to finish secondary school and then I would love to be a singer".

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Young Nigerian Footballer Tricked And Left Stranded In Mongolia By Fraudulent Agent Returns Home Through Stranger’s Help www.saharareporters.com

Moshood Afolabi, a Nigerian footballer, has arrived back home from Mongolia following an ordeal that saw him scammed by a shady agent, who promised him a glittering sports career that never materialised.

Afolabi, 24, arrived at the Murtala Muhammed International Airport, Lagos, on Saturday having left Ulaanbaatar, the Mongolian capital, a day earlier according to Al-Jazeera.

He had been trapped in Mongolia for 16 months and was overstaying a tourist visa, a situation which made it impossible to secure work, get his travel documents in order or afford a flight home.

“I'm very happy to have gained freedom leaving Mongolia,” he said. “I didn't believe I'd be in Nigeria on Saturday. I didn't believe it. Now, I'm experiencing so many things in Nigeria. Fresh air, fresh food. I'm really happy,” he added.

Al Jazeera reported on his plight in August and the challenges faced by many other aspiring African footballers stranded in several countries, having been duped by people posing as agents and tricking them into paying significant sums to travel and play for foreign clubs.

In Afolabi's case, a Nigerian man, who lived close to his home, spun him a tale, took his savings and sent him to play for local Mongolian club Western Khovd FC but the job did not last beyond his tourist visa and he quickly fell into serious financial and personal problems.

Christopher Hannah, a Scottish businessman, who had lived in Mongolia for six months, read and empathised with Afolabi's story and volunteered to help him.

“I had come across Moshood two weeks before I contacted him. I saw the article and at the time I was in Scotland.

“I flew back to Mongolia and saw it posted again on a forum and I remember someone was asking, 'Why doesn't someone help this guy?

“Football is one of the best ways to break communication or culture barriers. This was the main reason Moshood and I could come together,” he said.

After the Nigerian footballer spent a week in detention in late September at the Mongolian Immigration Service, Hannah booked and paid for Afolabi's $900 flight home, while Afolabi's friend Wael, an Egyptian immigrant, gave him the $750 he needed to pay to Mongolia for overstaying his visa.

“I felt sad because I hadn't experienced it in my life to be in a detention room for seven days,” said Afolabi.

“For the first three days in detention, I was drinking water, fasting and praying to God to save me,” he added.

Hannah claimed that his life in Mongolia took a turn for the worse after he helped Afolabi, saying he was treated with hostility by locals and was eventually denied a business visa extension.

He has now returned to his native Scotland and is in the process of opening a new football agency focusing on regions such as Africa.

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Mongolia welcomes nearly 480,000 foreign tourists in first three quarters www.xinhuanet.com

Mongolia welcomed nearly 480,000 foreign tourists in the first nine months this year, up 10.7 percent year-on-year, official data showed Monday.

In the January-September period, 61.8 percent of the tourists to Mongolia were from the East Asia and Pacific region, 31.4 percent from Europe, 4.5 percent from the Americas and 2.3 percent from the Middle East, South Asia and Africa region, the country's National Statistics Office (NSO) said.

Chinese tourists accounted for 31.6 percent of the total number of foreign tourists in the period, according to the NSO.

Mongolia has been striving to develop its tourism sector in a bid to diversify its mining-dependent economy. The country has set a goal of hosting one million foreign tourists and earning one billion U.S. dollars from tourism by 2020.

Mongolia attracted a total of 529,370 foreign tourists in 2018, up 11.01 percent from the previous year, according to the country's Environment and Tourism Ministry.

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Mongolia, Kazakhstan to build gold and silver refining plant www.akipress.com

Mongolia and Kazakhstan established an agreement on building and commissioning a gold and silver refining plant during a Mongolia-Kazakhstan Business Forum held on October 11 in Nur-Sultan, Montsame reported.

The Kazakhstan side will introduce its technology of gold and silver refining into Mongolia free of charge. The patent costs $30 million.

Minister of Mining and Heavy Industry of Mongolia Dolgorsürengiin Sumiyabazar said “The Kazakhstan side will render support on technology and human resource to build and operate the plant. In connection with commissioning the plant, we are preparing to submit a draft law on Precious Stones and Metals. By adopting the law, conditions will be created for not only processing gold and silver at home but also promoting jewelry manufacturing.”

The gold and silver refining plant will be erected with $81.7 million and will process seven to eight types of other elements besides refining 25 tons of gold and 50 tons of silver a year.

Eight cooperation agreements and memorandums worth about $200 million were signed during the Mongolia-Kazakhstan Business Forum.

Chairman of the Mongolian National Chamber of Commerce and Industry O.Amartuvshin said that the parties signed agreements on collaborating in mining, transport and logistics, agriculture and medical technology fields. "Furthermore, we are opening a short path to export products to Europe and the Middle East, operating direct flight from Mongolia to Kazakhstan and developing air cargo. It enables to deliver agricultural products especially mutton by air transport to the countries of the Middle East passing through Kazakhstan. In addition, refining gold at home will bring many advantages.

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Nationwide harvesting reported www.montsame.mn

Ulaanbaatar/MONTSAME/. During the spring sowing 2019, 512.0 thousand hectares were cultivated for crop, including 364.8 thousand hectares for grain of which 340.0 thousand hectares were for wheat; 14.8 thousand hectares for potatoes, 8.0 thousand hectares for vegetables, 82.4 thousand hectares for oil plants and 42.0 thousand hectares for fodder plants.

As of October 8, a total of 192.4 thousand of grain was harvested from 148.0 thousand hectares, of which 187.1 thousand tons of wheat; 158.6 thousand tons of potatoes from 12.9 thousand hectares, 68.4 thousand tons of vegetables from 6.1 thousand hectares. It means that the harvesting is running at 42.3 percent for grains, 75.9 percent for vegetables and 86.6 percent for potatoes.

According to the Ministry of Food, Agriculture and Light Industry, it is expected to harvest 441.9 thousand tons of grain, of which 420.0 thousand of wheat; 176.8 thousand tons of potatoes, 91.2 thousand tons of vegetables, 38.0 thousand tons of oil plant and 80.4 thousand tons of fodder plants.

A.Enkhsarnai

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Singapore overtakes US as world's most competitive economy www.cnn.com

Hong Kong (CNN Business)Singapore has knocked the United States out of the top spot in the World Economic Forum's annual competitiveness report.

The index, published on Wednesday, takes stock of an economy's competitive landscape, measuring factors such as macroeconomic stability, infrastructure, the labor market and innovation capability.
Singapore pushed the world's largest economy down to second place this year, with the Asian city state scoring top marks for its infrastructure, health, labor market and financial system.
And while the United States lost out to Singapore overall, "it remains an innovation powerhouse," the report said.

Singapore and Vietnam put up strong performances this year partly thanks to the US-China trade war.
The report noted that the two Asian economies "appear to be benefiting from global trade tensions through trade diversion." Vietnam jumped 10 spots from last year to rank 67th out of 137 countries.
US imports from Vietnam rose by 36% in the first five months of this year, as companies have been shifting manufacturing from China to Vietnam and other Southeast Asian countries to avoid steep tariffs.
The trade war hasn't been a clean win for Singapore, which is heavily reliant on exports and counts China as its biggest trading partner.
Singapore slashed its forecast for GDP growth in August, after reporting a big drop in economic activity in the second quarter of this year. It's heading for its weakest annual growth since the 2009 global financial crisis.

Hong Kong, the Netherlands and Switzerland rounded out the top five. Hong Kong climbed four spots from last year's report, despite the political crisis taking a toll on its economy. The financial hub received high marks for its macroeconomic stability and financial system, but fell short on its capability to innovate.
Escalating trade and geopolitical tensions "are fueling uncertainty" around the world, the WEF report warned.
"This holds back investment and increases the risk of supply shocks: disruptions to global supply chains, sudden price spikes or interruptions in the availability of key resources," the report said.

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Facebook's digital currency dealt another blow www.bbc.com

Facebook's Libra cryptocurrency must not go ahead until the company proves it is safe and secure, according to a report by the world biggest economies.

In a blow to the social media giant, the report by the G7 group of nations warns cryptocurrencies like Libra pose a risk to the global financial system.

The draft report outlines nine major risks posed by such digital currencies.

It warns that even if Libra's backers address concerns, the project may not get approval from regulators.

The warning comes just days after payments giants Mastercard and Visa pulled out of the Libra project, citing regulatory uncertainty.

The G7 taskforce that produced the report includes senior officials from central banks, the International Monetary Fund (IMF) and the Financial Stability Board, which coordinates rules for the G20 economies.

It says backers of digital currencies like Libra must be legally sound, protect consumers and ensure coins are not used to launder money or fund terrorism.

While the report, which will be presented to finance ministers at the IMF annual meetings this week, does not single out Libra, it says "global stablecoins" with the potential to "scale rapidly" pose a range of potential problems.

Stablecoins like Libra are different to other cryptocurrencies, such as Bitcoin, because they are pegged to established currencies such as the dollar and euro.

Stifle competition
While this is designed to limit big swings in their value, the report says global cryptocurrencies like Libra can pose problems, including for policymakers setting interest rates.

The report also warns that Libra could stifle competition among other providers and even threaten financial stability if users suddenly suffer a "loss of confidence" in the digital currency.

The draft report says: "The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed".

It also cast doubt over the viability of the project even if Libra's backers satisfy concerns raised by governments and central banks.

"Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement," the report says.

Facebook is facing intensifying international scrutiny of its cryptocurrency project.

A separate FSB report, published on Sunday, warned that the introduction of "global stablecoins" poses a host of regulatory challenges.

Launch delay
In a letter to G20 finance ministers, Randal Quarles, FSB chairman, warns that these challenges "should be assessed and addressed as a matter of priority".

The FSB is working with officials around the world to identify potential regulatory gaps, and will publish a report next summer.

Facebook has already warned that regulatory scrutiny may delay or even impede the launch of Libra.

Libra is not the only digital currency that faces scrutiny.

JP Morgan's JPM Coin, which is backed by US dollars, is a stablecoin that is also likely to be examined.

'Pressure builds'
The Libra Association, including Facebook, will hold its first board meeting in Geneva on Monday.

As well as Mastercard and Visa, Stripe, eBay and Paypal have also withdrawn from the scheme, which is also backed by ride hailing companies Uber and Lyft.

The G7 report acknowledges that cryptocurrencies potentially provide a faster and cheaper way to move money and make payments and says the current system is often "slow, expensive and opaque".

There are currently 1.7 billion unbanked and underserved consumers who could benefit from wider access to financial services, it adds.

Facebook and the Libra Association declined to comment. A G7 spokesman could not be reached for comment.

However, Facebook's executive in charge of the Libra project said earlier this month that losing the backing of major firms was "liberating". David Marcus added: "You know you're on to something when so much pressure builds up."

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Mongolian parliament backs new embassies in Abu Dhabi and Minsk www.news.mn

At its plenary session on Friday, (October 11) the Parliament discussed and approved proposals for the establishment two new embassies in Abu Dhabi, the capital city of the United Arab Emirates and Minsk, the capital of Belarus as well as opening a General Consulate in Manzhouli, a city in the eastern part of China’s Inner Mongolian Autonomous Region. The proposals were presented by D.Tsogtbaatar, Minister of Foreign Affairs to parliament.

The United Arab Emirates (UAE) established an embassy in Ulaanbaatar in 2016. Mongolia has a broad opportunity of closely cooperating with UAE in drawing investments, implementing joint projects, cooperating with funds and financial institutes including the Abu Dhabi Fund for Development, the Abu Dhabi Investment Authority etc. Currently, the UAE imports 90 percent of its total meat consumption annually. Mr. D.Tsogtbaatar noted that establishing a Mongolian Embassy in Abu Dhabi will contribute to developing relations and economic ties with the Persian Gulf, obtaining soft loans and financial aid as well as directly connect with UAE institutions such as the Abu Dhabi Fund for Development and the Abu Dhabi Investment Authority.

Belarus is a member of the Eurasian Economic Union and an important road and rail link connecting Asia with Europe. So, by establishing a Mongolian Embassy in Minsk it is hoped that partnerships and cooperation with Belarus will flourish.

The Consulate General is to have three employees initially and the operational expenses will be allocated from the state budget. Manzhouli is not only a strategically important located city which has direct access to bordering three countries Mongolia, China and Russia but also quite a popular tourist destination among Mongolians and the number of tourists has a tendency to increase furtherly. “HunnuAir” LLC conducts a direct flight from Ulaanbaatar to Manzhouli five times a week. In 2017, a total of 256,769 Mongolians travelled to Manzhouli via the Sumber-Khashaan, Khavirga-Ar Khashaat, Bayankhoshuu-Uvdug and Khangi-Mandal border crossings.

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Mongolia ranks 102nd in Global Competitiveness Report www.montsame.mn

Ulaanbaatar/MONTSAME/. The Global Competitiveness Report series released by the World Economic Forum (WEF) introduced this year’s Global Competitiveness Index (GCI), in which Mongolia scored 52.6 point and stood at 102nd out of 141 countries. It means that the country showed a 0.1-point decline or dropped by 3.

In macroeconomic stability, Mongolia ranks at 120th, with lowered financial indicator of small and medium enterprises in the financial sector compared with the previous year. Moreover, the bad loans indicator in the entire market has lowered than that before.

In its 2019 Global Competitiveness Report, the WEF measured the strength of 103 key indicators, such as inflation, digital skills and trade tariffs, across 141 countries.

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Big shareholder backs Rio Tinto to fix Mongolia www.afr.com

One of Rio Tinto's biggest Australian shareholders backed chief executive Jean-Sebastien Jacques to find a way through the company's troubles in Mongolia, saying it was "always going to be a tricky place to invest" and the Australian Foundation Investment Company has confidence issues delaying its copper mine there will be resolved.

Rio and its Canadian subsidiary Turquoise Hill Resources are working on a new plan for the underground expansion of the Oyu Tolgoi copper mine, after project management shortcomings and geological problems caused massive cost and schedule blowouts.

Rio expects the $US5.3 billion ($7.8 billion) underground expansion budget will have to increase by between $US1.2 billion and $US1.9 billion, and fresh delays of 16 to 30 months mean the mine will be delivered seven years later than was envisaged in 2012.

Rio Tinto's Oyu Tolgoi underground expansion will cost more and take longer to build.

But Australian Foundation Investment Company (AFIC) chief executive Mark Freeman said his company's long term investment horizons ensured it would be patient on Oyu Tolgoi.

''That is just part of the ups and downs, Mongolia was always going to be a tricky place to invest,'' he said.

''When they look at the underground there is a great opportunity there, but I think we have been investing long enough to know that it is not going to be easy.''

AFIC owned $180.3 million worth of Rio's Australian shares and $495 million worth of BHP's Australian shares at September 30.

Mr Jacques was Rio's copper boss prior to becoming chief executive, and he personally negotiated the 2015 deal with the Mongolian government to restart work on the stalled underground expansion.

Golden era
''There is no surprise the company has issues, it is how they deal with it at the end of the day that is the key, and we have confidence they will work through that," Mr Freeman said.

The past three years have been a golden era of shareholder returns from the two big miners, with Rio returning $US13.5 billion to shareholders in 2018 while BHP returned $US17.1 billion in the year to June 30.

Those returns were warmly received by AFIC, which tends to focus on companies with a competitive advantage and that pay fully franked dividends.

''The iron ore price has been very good to them due to some unfortunate events in Brazil,'' Mr Freeman said in reference to the fatal dam collapse that forced Brazilian miner to curtail exports.

''We don't think that is sustainable so we are expecting over time that iron ore price will probably drift down and BHP and Rio might follow, but in the meantime you get some very strong cashflows out of these companies now producing a very strong dividend.''

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