'At least' $7.8b more needed to complete Rio's Mongolian copper mine

Rio Tinto's Mongolian copper project will require a bigger than expected fundraising, after the Rio subsidiary building the mine said it needed to raise ''at least'' six times its current market capitalisation.

The subsidiary, Turquoise Hill Resources, shed fresh light on its financial predicament over the weekend, saying it needed at least a further $US4.5 billion ($7.8 billion) to complete an underground expansion of Mongolia's Oyu Tolgoi mine.

Massive cost and schedule blowouts on the expansion were last year revealed to have delayed completion by between 16 and 30 months, while the cost of construction was said to be between $US1.2 billion and $US1.9 billion higher than the previous budget of $US5.3 billion.

But the higher construction bill was just the start of the extra costs facing Turquoise Hill, which has no other assets and is 50.79 per cent owned by Rio.

Turquoise Hill has $US1.59 billion of contractual obligations due for payment before December 31, 2022, and the delays mean it can no longer rely on cash flows from the expansion to help cover those obligations.

The contractual obligations range from electricity contracts to repayments on the $US4.4 billion debt package that was supposed to be sufficient to complete the project when raised from a syndicate of banks (including Australia's NAB and ANZ) in 2015.

Turquoise Hill also must find $US924 million to cover the cost of a power station for the mine, after the Mongolian government refused to allow Oyu Tolgoi to continue buying electricity from generators in neighbouring China.

The company's problems are rapidly being exacerbated by the global lockdowns forced by the coronavirus, which has prompted a 23 per cent slump in copper prices in the past two months.

That means the existing mine at Oyu Tolgoi will likely generate less cash flow this year than was expected just a few months ago, while travel restrictions for the virus are also slowing the pace of work on the expansion.

''Current estimates indicate an incremental funding requirement, over and above the $US2.2 billion in liquidity currently available, of at least $US4.5 billion,'' Turquoise Hill said in a market filing.

Turquoise Hill shares have lost 83 per cent of their value over the past 13 months since the cost and schedule blowouts raised fears the miner may need to conduct a massive and dilutive equity raising.

The company's market capitalisation stood at just $US724 million on Monday, meaning the $US4.5 billion shortfall nominated over the weekend is more than six times the company's value.

Canaccord Genuity analyst Dalton Baretto estimated in November that Turquoise Hill would need an extra $US4.1 billion to complete the expansion and cover its obligations.

He said those funds could be sourced from an equity raising, extra debt or possibly a metal streaming deal, where future metal production is traded for immediate cash.

Turquoise Hill has told Rio, but not investors, what its preferred method of raising the money is, but Rio has indicated those plans are unlikely to be clarified before the exact size of the cost and schedule blowouts are known in the latter months of 2020.

Sailingstone Capital was for many years the second-biggest shareholder in Turquoise Hill and was regularly vocal about what it believed was Rio's excessive influence over Turquoise Hill.

Sailingstone more than halved its stake in Turquoise Hill during 2019 as the financial predicament became clear, and ironically revealed in filings to regulators that it had added Rio Tinto securities to its portfolio.

Source:https://www.afr.com/

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Mongolia reports first COVID-19 case

ULAN BATOR, March 10 (Xinhua) -- A French national has tested positive for the novel coronavirus, becoming the first confirmed COVID-19 case in Mongolia, the State Emergency Commission said Tuesday.

"The patient is a French national aged 57, who arrived in the capital city of Ulan Bator on March 2," Ulziisaikhan Enkhtuvshin, head of the commission, said at a press conference.

"Initially, the man was screened and not tested positive for COVID-19. But, he began to develop a fever on Saturday," said Enkhtuvshin. "He was then tested for COVID-19 and preliminary tests were deemed to be positive."

The patient is now in the country's southeastern Dornogovi Province, he added, urging the public to be vigilant and follow hygiene rules. Enditem

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Chinese ambassador hails Mongolia's support for fight against COVID-19

ULAN BATOR, March 5 (Xinhua) -- Chinese Ambassador to Mongolia Chai Wenrui on Thursday expressed appreciation for the Mongolian government and its people's support for China's fight against COVID-19.

"We are happy that no cases of coronavirus have been reported in Mongolia. We are ready to cooperate with the Mongolian side to maintain its coronavirus-free status, coordinate the prevention measures and win a complete victory over this virus," Chai said at an event held to thank the Mongolians at the Chinese Embassy here.

Since the COVID-19 outbreak in China, Mongolian leaders, representatives from various sectors, students and even children have been expressing solidarity with China in its battle against the novel coronavirus epidemic.

The Mongolian government has donated 200,000 U.S. dollars toward China's epidemic control efforts, and the country's President Khaltmaa Battulga, as the first foreign head of state to visit China since the COVID-19 outbreak, has offered a donation of 30,000 sheep to China during his recent one-day visit there.

As more Mongolians wish to donate money and prevention supplies to China, the Mongolian government last month launched a nationwide campaign called "Emotional Support to an Eternal Neighbor."

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Ancient Mongolian empires were more sophisticated than previously thought, study suggests

Ancient Mongolian kingdoms might have been more sophisticated than previously believed, a new study claims.

A paper presented in the journal Scientific Reports shows evidence that their diets relied extensively on millet, a type of small-seeded grass, which indicates more complex economies that developed, in part, because they were able to maintain reliable food surpluses.

“Mongolia’s past empires have long been portrayed as groups of violent horseback riders thought to be exceptions to the established ideals of what makes an ‘empire’,” lead author Shevan Wilkin from the Max Planck Institute in Germany told Cosmos.

Wilkin and his team analyzed fragmented teeth and rib bones of 137 previously excavated individuals who lived 4500 BCE to about 1300 AD in order to gain a better understanding of how their diets evolved over time.

Animal products seem to have featured heavily on the menu of most people, with very little plant food, prior to the Bronze Age, according to the study's findings.

However, the scientists found strong evidence of more diverse diets that did include significant consumption of millet or millet-based foods during the rise of the Xiongnu and Mongol empires.

“Instead of being starkly different to other empires around the world,” explained Wilkin in Cosmost, “this suggests that grain surpluses were also important to the Mongolian Empires that were seeking to support expanding territories and populations.”

Source:Foxnews.com

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Assault on Ulaanbaatar: how Russian Cossacks defeated the army of the Chinese

By

 Thomas Channeton

If not for the heroic assault on the city of Urga General Roman Ungern-Sternberg would have been one of many “warlords” and not one of the most mysterious figures of the Civil war. A descendant of Baltic Germans, who bore the title of Baron wanted to recreate the Empire of Genghis Khan and lead the Mongol horsemen Europe.

But before that he needed to take Ugra and become the ruler of Mongolia. After the victory of the Buddhist priests became known as the General incarnation of the deity Mahakali ruthless and resolves of the Keeper of faith, feeding on the flesh and blood of the apostates.

the City of Urga

Today the capital of Mongolia is Ulaanbaatar, a city with a population of half million, which is an amazing combination of modernity and tradition of the steppe nomads. During the Civil war in Russia it was called Urga, which translated from Mongolian means “Palace”. In the city of the residence of the Bogdo-Khan, the chief of all the Buddhists of Mongolia. At that time, Mongolia was a theocratic, and therefore, the spiritual leader of the country was its ruler.

In 1919, the population had reached 100 thousand people. Most were Chinese – 70 thousand and 30 thousand Mongols, of which 20 thousand were priests. The town population up to 3 thousand Russian and a small colony of Jews. After the October revolution in USU entered a 10-strong Chinese corps, after which Mongolia lost its independence.

Ungern decided to kick the Chinese, however, the first attempt failed. After a few months, adding to the ranks of his army with new soldiers from the peoples of the steppe, “black Baron” decides to try again to capture the city.

Psychological warfare

In December 1920, the troops of the Asian cavalry division led by Baron Ungern come to Ugra. The siege army was small – only 1500 people, with 12 guns and 4 guns. Was the division of the officers of the Russian army, the Cossacks, Buryats, Tibetans, Mongols, Tatars, and Bashkirs, which the Chinese are particularly feared.

the Mixed army was soldered by iron discipline and a mystical fear of Roman Ungern. Cavalry division had to dislodge from the city of 10,000 Chinese soldiers, who were joined by 5 thousand militia Urga. The weapons of the enemy was 72 machine guns and 18 cannons. For protection around the city the Chinese had dug trenches and prepared in the city strongholds of defense.

Two months Ungern was not going to storm, and at this time the city was filled with horror, emanating from the personality of the commander. Chinese generals took a strange decision and arrested the Bogd Khan. The act of the invaders angered the local Mongol and depressing effect on the already weak morale of the Chinese. For fear of soldiers of the Chinese generals never brought a superior enemy in numbers 15 times the troops in the field.

Fear added following episode: Ungren in the yellow Mongolian robes riding on a white Mare alone penetrated in Ugra. Drove into the yard of the manor, the Chinese Governor of the city and gave the whip a sleeping sentry. Then in front of stunned the servants and calmly went into the street. Put on the capture of the soldiers are unable to catch the Baron, he literally disappeared on the curves of the streets of Ugra.

the assault of the Mongolian capital

on January 31 result of meticulous attention to detail of the operation and the desperate bravery of Tibetans, dressed lamas was released Bogdo-Khan. After this action, the Chinese soldiers settled superstitious fear. The night before the attack Ungern was used as old as the world trick. On the hills around Urga, which, when hiding from enemies, the young Genghis Khan, he ordered to kindle a lot of fires. Solid saw the glow of fire, the Chinese were convinced that the enemy reinforcements came.

At dawn on 2 February a detachment of 200 of the Bashkirs and the few Cossacks attacked the Chinese quarter Mcmachen. The attackers were soldiers from the chain, and each had 10 ammo and when ammo ran out, the lastoval distracting saber attack. At this time, from the South quarter broke 900 riders General Boris Rezukhin. To move crooked streets riding was difficult. The soldiers dismounted and began to lead street battles.

Chinese military commander threw his subordinates and fled to the city. Part of the garrison entrenched in some homes and temples. Realizing that mercy from the ferocious bearded northerners will not, they fought to the last. Soldiers joined residents of the quarter, shooting at the fighters Risuhina even bows and arrows. Strong points defending the Cossacks threw grenades and torched.

After Chinatown was busy, three Cossack squadrons broke into the Eastern outskirts of Urga. Here were captured a prison, in which sat almost frozen to death Russian colonists and refugees. In consequence of the release of Russian Ungern was named one of the main goals of the campaign. Pushing deep into the city continued, and after nightfall on 2 February the battle died down.

when the morning of 4 February, the hills around Urga filled escape from the city by Chinese soldiers. The enemy surrendered the city. Trophies of the Asian division was 5,000 rifles, a dozen guns, food, and money from two ugrinsky banks. After the assault Ungern staged a pogrom that claimed the lives of 50 people. The independence of Mongolia was restored, and Ungern received from the Bogdo Khan a nominal title, but his credibility among the population has become enormous.

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