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

Name organizer Where
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 establishes foundation to support athletes www.xinhuanet.com

ULAN BATOR, June 22 (Xinhua) -- Mongolia has established a foundation to provide financial assistance to athletes who will participate in Olympics and other international competitions.

Mongolian Prime Minister Ukhnaa Khurelsukh declared the establishment of the foundation during an event dedicated to Olympic Day which falls on June 23 every year.

"The Mongolian government has been taking all necessary measures to support national athletes. The new foundation is completely dedicated to helping athletes with financial support they need," Khurelsukh said during the event.

The foundation called "Tokyo Olympics Foundation" will help athletes to solve their financial problems by organizing fundraising campaigns, according to the Prime Minister.

"I and Mongolian people hope that Mongolia will be more successful at the 2020 Tokyo Olympic Games than at the previous Olympics," he added.

Mongolia has set a goal to win at least six medals in the 2020 Tokyo Olympic Games to equal its Summer Games record.

Mongolia finished the 2012 London Olympics with a record-high five medals: two silvers and three bronzes.

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Dalian iron ore rises as supply crunch concerns persist www.reuters.com

China’s iron ore futures extended gains on Friday after touching a record high in the previous session, as concerns persisted over tight supply amid declining shipment from Rio Tinto and expectations of strong demand.

Mining giant Rio Tinto on Wednesday night lowered its guidance on volumes of iron ore it expects to ship from the key Pilbara producing region in Australia for the third time since April.

It now puts the upper limit as much as 5.7% under its original forecast, giving a window for shipments of between 320 million tonnes and 330 million tonnes.

“Rio has reportedly been shipping at relatively low rates, and this guidance confirms that the company is having some operational issues,” said analysts from Jefferies in a note.

Jefferies lowered its 2019 iron ore production forecast for Rio to 320 million tonnes from 328 million tonnes, and also reduced 2020 forecast by 5 million tonnes with concerns that the risk may spill over into next year.

With expectation of tight supply in the coming month, Dalian iron ore prices closed 0.8% higher at 820 yuan ($119.24). It surged to a fresh peak of 837 yuan a tonne on Thursday.

Demand for steelmaking raw materials continues to be robust despite heightened production restrictions in some regions, including the top steel hub of Tangshan.

The utilisation rate at steel mills across the country stayed at the same level as last week at 71.13% this week, as of June 21, data compiled by Mysteel consultancy showed.

Steel inventory with Chinese traders continued to increase this week, up by 131,300 tonnes to 11.34 million tonnes, Mysteel data showed.

Despite increasing worries about waning demand, benchmark Shanghai rebar prices rose 1.6% to 3,859 yuan, while hot-rolled coil futures gained 2.1% to 3,760 yuan.

Dalian coking coal dipped 0.5% to 1,393.5 yuan a tonne, while coke climbed 0.9% to 2,089.5 yuan. ($1 = 6.8771 Chinese yuan)

(By Muyu Xu and Shivani Singh; Editing by Subhranshu Sahu)

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Apple, Microsoft and other tech companies ask to be excluded from the China tariffs www.cnn.com

New York (CNN Business)Technology companies have been feeling the sting of the escalating trade war between the United States and China. Now, they're trying to avoid a proposed new round of tariffs that takes aim at many American tech products.

More than half a dozen big tech companies wrote to the Trump Administration this week asking it not to hit the products they produce in China with additional tariffs.
The White House has proposed a bill that would place a 25% tariff on $300 billion in Chinese goods not already subject to tariffs. The tariff would apply to a wide range of products, from live buffalo and primates to T-shirts and shoes. It would also cover laptops, video game consoles, battery cases and other products that tech companies say would increase costs for consumers or harm their abilities to make a profit.
In public filings commenting on the proposal, Apple (AAPL), Dell Technologies (DELL), HP (HPQ), Intel (INTC), Microsoft (MSFT), Sony (SNE) and Nintendo (NTDOY) asked that their products be excluded from the list of goods the tariff would apply to. The Consumer Technology Association also submitted a letter asking the government to develop a process for companies to request that their goods be excluded from the tariff, arguing that increasing tariffs is the wrong way to improve the US-China trade relationship.
"No one wins in a trade war, and an escalating tariff fight will inflict immense damage on American businesses, workers and consumers," the Association wrote.
The letters were filed ahead of a public hearing on the proposal earlier this week.

The proposed tariff is a continuation of an ongoing trade dispute between the United States and China. Last month, the United States raised tariffs on $200 billion worth of Chinese exports from 10% to 25%, and China responded by increasing tariffs on American goods, such as cotton and grain. The two countries have also been swapping other retaliatory measures, including a US export ban imposed on Chinese smartphone company Huawei.
The trade dispute has forced some tech companies to look beyond China for new locations, mostly in Southeast Asia, to produce their goods. But leaving China is a slow and costly process, because the country has for decades amassed the infrastructure, talent and suppliers needed for manufacturing.
In its letter, Apple highlighted its contribution to the US economy, saying it is the largest US corporate tax payer and is responsible for more than 2 million jobs across the country. The company said additional tariffs would reduce this contribution, and could also threaten Apple's ability to compete with foreign technology companies.
"The Chinese producers we compete with in global markets do not have a significant presence in the US market, and so would not be impacted by US tariffs," Apple wrote. "Neither would our other major non-US competitors. A US tariff would, therefore tilt the playing field in favor of our global competitors."
Apple attached a list of nearly 20 products ⁠— including iPhones, MacBooks and AppleTVs⁠ — that it wants excluded from the tariff.
A joint letter from Dell, HP, Intel and Microsoft asked the government to leave laptops and tablets out of the list of goods covered by the tariff. The companies said the tariff could raise the average retail price of a laptop by $120, citing a study from the Consumer Technology Association. Another letter from Sony, Nintendo and Microsoft asked that video game consoles be excluded.
Among the reasons cited by the Trump Administration for the tariffs is a concern about Chinese theft of US companies' intellectual property. In the Dell letter, the companies acknowledged this as a legitimate concern, but argued that continued tariff hikes would do little to stop it.
"Imposing additional tariffs on laptops will in practice undermine the Administration's policy priorities in this China investigation," the companies wrote in the letter before going on to say the policy would force them to divert time and money away from developing new products and could also threaten their positions as tech industry leaders.
President Donald Trump and Chinese leaders are expected to meet at next week's G20 summit in Japan. Many are hoping that if the talks go well, Trump may decide not to impose the proposed tariff expansion.
The Consumer Technology Association in its letter asked Trump to abandon the tariff strategy altogether, specifically mentioning the G20 meeting as a chance to begin improving US-China relations.
"We further urge the administration to leverage multilateral action, join strategic trade agreements that move China toward transparency, competition and open markets," the letter reads, "while resisting the imposition of taxes and trade barriers that would continue to harm American interests, risk our economic future and jeopardize our technological leadership."

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More Russian commodities expected to come into China www.chinadaily.com.cn

HARBIN - More Russian commodities are expected to come into the Chinese market, a Russian trade representative said.

With the joint efforts of related departments, manufacturers and exporters in Russia, more farm produce and food from Russia will be seen at the Chinese market, said Sergey Inyushin, Russia's trade representative in China.

China has a big demand for soybeans, corn, beef and mutton, he said, adding that cooperation in agriculture is becoming a new point of growth in the economic and trade cooperation between Russia and China.

In 2018, trade volume between the two countries exceeded $100 billion, and bilateral economic and trade cooperation is continuing to expand.

"Last year, Russia and China enhanced cooperation in the imports and exports of dairy products and frozen poultry meat," he said, adding Russia's exports of agricultural products and food to China increased 51.4 percent year-on-year.

The two countries are also expanding cooperation in cross-border e-commerce, with a memorandum of understanding inked at the Sixth China-Russia Expo, which concluded Wednesday in Harbin, capital of Northeast China's Heilongjiang province.

These days, many Russian commodities can be purchased online by Chinese customers, he said. "In the future, Russia will continue to bring more Russian agricultural products and food to China via e-commerce."

From January to September 2018, trade volume via cross-border e-commerce between the two countries reached $3.7 billion, up 23 percent year-on-year.

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High-level inter-regional conference against terrorism taking place in Ulaanbaatar www.montsame.mn

Ulaanbaatar /MONTSAME/ On June 20, the High-Level Inter-Regional Conference on ‘Whole-of-Society Approach’ to Preventing and Countering Violent Extremism and Radicalization that Lead to Terrorism kicked off at the Ministry of Foreign Affairs. The conference is being co-organized by the Government of Mongolia, OSCE Secretariat’s Transnational Threats Department (TNTD) and the United Nations Office of Counter-Terrorism.

D.Tsogtbaatar, Minister of Foreign Affairs, D.Gerel, Director of the General Intelligence Agency, Thomas Greminger, Secretary General of the Organization for Security and Co-operation in Europe (OSCE), and Muhammad R. Shah of the UN Office of Counter-Terrorism delivered remarks at the opening chaired by Deputy Minister of Foreign Affairs B.Battsetseg. In his remarks, Foreign Minister Tsogtbaatar noted, “Terrorists’ and criminals’ area of operations will be narrowed more and more with elevation of developing countries’ potential for countering terrorism and organized crime to an appropriate level.”

“We have to bear in our mind that terrorism and transnational organized crime, in particular drug trafficking are interconnected. Drug affects a person’s mental state, making them prone to violent extremism,” he added.

At the conference, around 180 participants from Asia and Europe comprising policy makers, civil society representatives, members of Counter-Terrorism Coordination Council of Mongolia, and law enforcement officials are sharing their best practice in the fight against terrorism and exchanging views on building trust through enhancement of inter- cultural and religious dialogues and harmony, ensuring public participation in development of national policies, strategies and plans to prevent and counter the crime.

Moreover, honored guests of the conference, Milan Ciganik, representative from Slovakia - 2019 OSCE chair, G.Munkhtsetseg, Member of Parliament, and Peter Szijjarto, Minister of Foreign Affairs and Trade of Hungary shared their stance on promoting inter-religious dialogues and harmony to prevent transnational organized crime and improving laws on prevention of the crime.

The regional conference will take place until June 21.

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Mongolia's possibility to become Eurasian integrated logistics hub discussed www.montsame.mn

Ulaanbaatar /MONTSAME/ A seminar themed ‘Logistics trend in Eurasian Continent and Role of the Mongolian Transport Sector’ took place on June 19 at Construction Development Center. The Ministry of Construction and Urban Planning organized the consultation in partnership with JICA.

Ryuichi Shibasaki, Associate Professor at the University of Tokyo and D.Gerelnyam, Senior specialist at the Department of Policy and Planning made presentations under topics ‘Transport demand trend in Eurasian Continent and role of the Mongolian transport sector’ and ‘Changes in the road and transport sector and progress of current projects, further goals’.

The speakers emphasized that policy-makers should understand global freight flows and lead up to development of international logistics policy in present condition of globalization of logistics market.

Associate Professor Mr. Ryuichi Shibasaki advised to pay attention on integrated Euro-Asian transport network using model of traffic flow. He suggested analyzing effects of Chinese policy on international rail transport. By doing so, regional countries will have possibilities to develop their logistics as reducing expanse of rail transport and increasing frequency of transport and transit freight.

In his presentation, Mr. D.Gerelnyam underlined that current condition of multilateral cooperation in Eurasian economic space is creating favorable condition for Mongolia to become a stronghold for integrated transport infrastructure of Eurasian Continent. Therefore, the country should increase international transit transport through integrating and developing new international airport, transit transport facilities, railroads and highways that surround the capital city, logistics terminals as well as tourist destinations. This will influence Mongolia indirectly and it is available to become an integrated logistics system center that connect Asia and Europe.

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Mongolia ranks 42nd in Global Peace Index www.montsame.mn

Ulaanbaatar /MONTSAME/ The Institute for Economics and Peace released its thirteenth edition of the Global Peace Index (GPI), which ranks 163 independent states and territories according to their level of peacefulness.

Mongolia ranks at the 42nd place in the GPI with 1.792 points, unchanged from the previous year. Iceland remains at the top with 1.072 points, followed by New Zealand and Portugal. Afghanistan is now the least peaceful country, according to the report.

The state of peace was measured using three thematic domains including the level of Societal Safety and Security, the extent of Ongoing Domestic and International Conflict and the degree of Militarisation.

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Mongolia Rapidly Moving Out of Russian World, Raising Concerns in Moscow www.jamestown.org

For most of the Soviet period after 1945, Russians informally viewed Mongolia as “the 16th Soviet republic” not only because it tried to become one during World War II, but also because, even more than Bulgaria, it slavishly copied Soviet laws and practices. Notably, Mongolia introduced a Cyrillic-based alphabet close to Russian in 1941 (Asiarussia.ru, April 1, 2018). Moreover, it promoted Russian in its media and educational system to the point that, in many sectors, Russian displaced Mongol as the most frequently used language (Cod15.ru, May, 10 2018).

This pattern partially had its roots in the fact that Imperial Russia played a key role in Mongolia’s acquisition of independence from China just over a century ago. But additionally, it stems from the history of the Soviet Union using this large (one-third the size of the United States) but underpopulated (just over three million residents now) Northeast Asian country to put pressure on China, which still controls Inner Mongolia. Moscow further sought to use its dominance in Mongolia to prevent Beijing from using the Mongols against their co-ethnics inside Soviet Russian borders, the Buryats (or Buryat Mongols as they were known until 1958) (Fergananews.com, September 11, 2008). However, with the collapse of the Soviet empire in 1989 and then of the Soviet Union itself two years later, all that began to change. And now, in the words of one Russian specialist, “an entire generation has grown up in Mongolia that does not know Russian” (Rossyiskaya Gazeta, June 11, 2019). Indeed, some in Mongolia even want to do away with the Cyrillic alphabet entirely and go back to the vertical script Mongols had used for centuries (Vb.kg, May 11, 2017; Gtrkchita.ru, April 17, 2018; 161.ru, May 16, 2019).

From Moscow’s perspective, such moves on language and alphabets in Mongolia are just as offensive and dangerous as similar policies in the former Soviet republics (see EDM, January 28, 2019; Commentaries, March 5, 2018). Indeed, they may be even more worrisome for two reasons. On the one hand, they introduce a new complexity to Russia’s relations with China, further undermining Moscow’s confidence that it can reliably expect Ulaanbaatar to be on its side in talks with Beijing. And on the other, changes in Mongolia in this regard are likely to have an impact on the already-restive Buryats within current Russian borders, who, to this day, follow closely what happens in Mongolia (Gazeta-n1.ru, March 17, 2017).

While Russian does remain the most widely known foreign language in Mongolia—Chinese has so far not made massive inroads as many had predicted—it is now very much a foreign language rather than a national one. It has not been a requirement for entry into Mongolian universities since 1990, and it has not been a compulsory subject in primary and secondary schools since 2003, the year in which English replaced Russia as the required foreign language. What this means—and what anecdotal evidence appears to confirm (Quora.com, October 18, 2014)—is that while most Mongols over 35 know Russian, most below that age no longer do. This pattern suggests the role of Russian will continue to decline unless radical measures are taken, something Moscow would like to see but which Ulaanbaatar presently has no plans to introduce.

Just how dire the situation of the Russian language and, with it, of Russian cultural and political influence in Mongolia has become was recently described by Nyamzhav Naymdavaa, a Russian-language teacher in the Mongolian capital. In a paper for delivery at a Moscow competition on Russian-language use outside the Russian Federation, she recalls “the golden times of the end of the 1940s, when Russian was studied in all the schools of the country four or five hours a week, or the end of the 1970s, when a Pedagogical Institute of the Russian Language was established, an institution that, over the decade of its existence, graduated 1,847 Russian teachers.” Those times, she says, are not likely to reappear. Worse, Naymdavaa argues, in 1989, Ulaanbaatar canceled the contracts of all Russians teaching Russian in Mongolia. As a result, 500 lost their jobs altogether, and “more than 200” stopped providing Russian-language classes and began to teach English instead (Rossyiskaya Gazeta, June 11, 2019).

To be sure, the Ulaanbaatar-based teacher writes, Russian instruction did not completely disappear. But even positive steps contain negative aspects. Three years ago, for example, the Mongolian Ministry of Education said schools could reintroduce Russian-language courses but only where each could assemble “no less than 25” pupils who wanted to study the language. In some places, that has effectively blocked Russian instruction altogether. And she said she was encouraged that Ulaanbaatar has restored a Russian-language television program after canceling it 33 years ago.

Moscow has responded to this situation by increasing the number of scholarships for Mongols who want to study Russian in Russian universities, by providing more support to Russian-language instructors in Mongolia so that they can help the approximately 3,000 young people there in such classes continue, and by launching a major propaganda campaign against any further cuts in Russian-language instruction or any consideration of the idea that Mongolia should dispense with the Cyrillic alphabet and go back to its original national one (Russkiymir.ru, June 3, 2019; Vb.kg, May 11 2017; Gtrkchita.ru, April 17, 2018).

Moscow may be on the winning side of efforts to block a return to the pre-Cyrillic national script, as there are many Mongols who oppose such a move; but it almost certainly will be the loser elsewhere. All evidence seems to suggest that the Russian language will continue to decline in importance in Mongolia. And with that decline, Russian influence will wane there as well.

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Péter Szijjártó concludes 57-million-dollar vaccine production plant investment agreement in Mongolia www.kormany.hu

“The Hungarian Government has concluded an agreement in Mongolia concerning a 57-million-dollar vaccine production plant investment, and Eximbank has opened a 46-million-dollar credit line to help enable Hungarian water management and mining industry enterprises that have already accumulated a high level of market experience to acquire an even larger share of the market in the Asian country”, Minister of Foreign Affairs and Trade Péter Szijjártó said in a statement to Hungarian news agency MTI following negotiations in Ulaanbaatar.
“Thanks to the Government’s Eastern Opening policy, Hungarian enterprises are successfully appearing in more and more markets in the part of the world that lies to the east of us”, the Minister stated.

“Within the framework of the Eastern Opening strategy, we must pay articular attention to Mongolia, which is currently producing the highest level of economic growth in Asia. Its economy is extremely open, and they are happy to welcome Hungarians with great affection”, he added.

“The reason for this”, he explained, “is that Hungary was the seventh country in the world to recognise Mongolia’s independence and has been maintaining diplomatic relations with Mongolia for 70 years now”. “Based on this historic relationship, Budapest has now decided to increase the funding provided to Hungarian companies to facilitate their appearance and success on the Mongolian market, which is promising excellent prospects”, he said.

According to the inter-governmental agreement, which was signed by Minister of Foreign Affairs and Trade Péter Szijjártó and Mongolian Minister of Finance Chimed Khurelbaatar, within the framework of a 57-million-dollar tied aid loan programme Hungary will be providing funding to enable Hungarian companies to construct Mongolia’s largest animal vaccine plant, which will be equipped with Hungarian technology. “This means that the vaccines required to vaccinate Mongolia’s animal stocks will be produced in this new factory”, Mr. Szijjártó declared.

“Thus, the Eastern Opening Strategy helps Hungarian enterprises to be able to invest not only at home, but also abroad, and to reinforce the further growth of the Hungarian economy by bringing the profits realised their back home”, said the Minister.

During his visit to Ulaanbaatar, Mr. Szijjártó signed a memorandum of understanding on cooperation with Minister of Finance Chimed Khurelbaatar on expanding bilateral economic relations, met with Foreign Minister Damdin Tsogtbaatar and Minister of Agriculture Chultem Ulaan, and was also received by President of the Republic Khaltmaagiin Battulga.

(Ministry of Foreign Affairs and Trade/MTI)

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Rio Tinto looks at developing Simandou again — report www.mining.com

Rio Tinto (ASX, LON: RIO) is mulling options to develop the giant Simandou iron ore deposit in Guinea, which almost sold last year to its partner in the project Aluminium Corp of China, or Chinalco, as it is known.

People familiar with the matter told Bloomberg on Thursday that the world’s No. 2 miner has rehired consultants to work with its own team on how it would be possible to export ore, should the mine be developed.

Guinea has always said that Simandou’s output would have to be shipped via the country’s own ports. This means that the project would have to include a 650km trans-Guinean railway line and a port, which could push the total investment needed to a whopping $23 billion.

Simandou is one of the world’s richest reserves of high-grade iron ore, holding an estimated 2 billion tonnes of the steelmaking ingredient. It’s also one of the most easily exploitable iron ore fields outside of Australia’s Pilbara region and top producer Vale’s Brazilian home base.

At full production, the concession would export up to 100 million tonnes per year – that’s a third of Rio’s total capacity at the moment – and would catapult the company past Vale as world number one iron ore miner.

Simandou would by itself be the world’s fifth-largest producer behind Australia’s Fortescue Metals and BHP.

The asset, however, has been a source of headaches for Rio since it was first granted rights to start prospecting for iron ore two decades ago.

In 2008, one of Guinea’s former dictators stripped Rio’s rights over two of the four blocks and handed them BSG Resources, the mining arm of Israeli diamond billionaire Beny Steinmetz. Rio was able keep to the two southern blocks but only after paying $700 million to the government in 2011, which guaranteed the miner tenure for the lifetime of the Simandou mine.

That deal came under scrutiny in 2016, forcing Rio to fire two senior managers over a questionable $10.5 million payment made to a consultant who helped the company secure the two blocks and alerted authorities, including the US Department of Justice and the UK’s Serious Fraud Office.

BSG Resources and Steinmetz were also subject of several investigations over bribery and corruption accusations, but it was able to put an end to and to all that in February this year, through a deal with Guinean President Alpha Conde.

Such agreement removes a key obstacle for Simandou to move forward. Rio holds a 45% stake in two of the four blocks that make up the giant Simandou deposit, while state-controlled Chinalco owns 40% and the Guinea government 15%.

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