Bcm news wire issue 415

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 415 – February 19, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each article is
kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full
article.
NEWS HIGHLIGHTS:
Business:
 Nagata Engineering takes lead on dry-coal processing plant with Erdenes Mongol;
 Mongolia halts talks with uranium miner over USD106 mn award;
 Mitsubishi to upgrade UB Thermal Power Plant No. 4;
 Moody's assigns first-time ratings to Bogd Bank;
 Bogd Bank establishes correspondent bank relations with Mizuho Bank;
 Container bag producer aims to meet nationwide demand;
 MGG announces plan to buy its common shares;
 Anthias Consulting and a charity send gas chromatograph to Mongolian university;
 Erdene reports up to 99% gold recovery from composites at Bayan Khundii;
 UNICEF’s first private-sector partnership with Arig Bank;
 OT project financing agreement named 'Asia Pacific Mining Deal of the Year';
 TerraCom looks beyond Mongolia, completes debt restructuring;
 Eagle Festival at Chinggis Khuree;
 Leonardo DiCaprio snaps up expedition to Mongolia;
 Engie to speed disposals with incoming chief eyeing up to EUR 20 bn;
 ING shares rise 10% after bank’s earnings beat expectations.
Economy:
 Mongol Bank: currency auctions, swaps, 1-week bills, T-bills;
 Mongolia endures slowest growth in 7 years;
 Mongolia dollar bond price tag doubles before impending sale;
 Mongolians strapped for cash as incomes fall amid slowdown;
 Copper smelter to be built in Bor-Undur;
 Herders received reduced interest on loans, with further cuts on the way;
 Herders mitigate dzud losses, despite delayed financial support;
 Foreign staff numbers in Mongolia fall;
 More Mongolian women marrying foreign men;
 Two new HIV/AIDS cases registered;
 Road toll officers enforce new scheme for fees;
 UB plans new roads to relieve traffic congestion;
 MNT3.6 billion budgeted for UB tourism;
 Gandan planned as next tourist attraction;
 Female entrepreneurs' center to open in Ulaanbaatar;
 UNFPA delivers 'dignity kits' for women caught in a dzud;
 IFC promotes responsible water management in Mongolia’s mining sector;

 Award-winning herders set to teach younger generation;
 World Rugby holds training for referees and coaches;
 Can angry young males save a critically endangered camel?;
 China’s reserves plunge while stresses mount;
 Ulaanbaatar and climate change—EDITORIAL.
Politics:
 Parliament reconvenes for irregular session;
 New fees and regulations proposed for uranium producers;
 CW-GP MPs propose tighter environmental regulations;
 President submits bill for enrolling skilled workforce in military;
 Rules of origin changed to fit Japan FTA;
 Quota set for individuals paying to avoid military service;
 MNDP positive about merger with Democrats;
 Mongolia condemns ballistic rocket launch by North Korea;
 Netherlands to deport Mongolian asylum seekers;
 U.S. to return stolen Mongolian dinosaur treasures;
 U.S. Ambassador lauds Mongolia for 'rights for disabled';
 Some 1,000 soldiers will participate in joint Russian-Mongolian exercises;
 Anti-Corruption Authority probes ex-president;
 Another MPRP official accused of corruption;
 Citizens protest for dismissal of Constitutional Court members.
BCM Updates:
 Announcements;
 New Mongolian Laws;
 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News
 BCM in the University Classroom Series;
 Websites Update - Presentations, Mongolia Reports, Interviews;
 Social Networks.
Economic Indicators:
 Churchill’s Supermarket Price Comparison
 Inflation;
 Central Bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Invest Mongolia Agency

Mongolian Business Database
BCM MONTHLY MEETING NOTICE
BCM’s monthly meeting for members will be on Monday, February 22 at 5PM at the BLUE SKY
HOTEL, 3rd floor, “Crystal” conference room. The meeting will be bilingual.
The meeting will feature the following presentations:
- Call to Order/Business Council of Mongolia: B. Byambasaikhan, Chairman, BCM
- BCM Report: Jim Dwyer, Executive Director, BCM
- D. Uuriintuya, Chairperson, Mineral Resources Authority of Mongolia - "Mongolian events during
PDAC 2016 in Toronto"
- L. Enkhtuvshin, Human Resources Development and Partnership Manager, Australia Awards
Mongolia – “Women’s Leadership Program”
- Brendan Coyne, Consul General and Trade Commissioner, Austrade – “The role of Austrade
(Australian Trade Commission) in Mongolia”
- Jennifer Bielman, Country Director, Mercy Corps Mongolia – “Mercy Corps: Building Resilience in
Mongolia”
- A. Batpurev, Director of Markets Development Department, Financial Regulatory Commission –
“Recent financial market developments of Mongolia”
- N. Munkhnasan, General Director, Monpolymet – “Overview of Monpolymet”
New Members:
1. Horizon Partners LLC is a local investment advisory, fund-raising and project development firm.
A networking reception, sponsored by the “Women’s Leadership Program” of the Australia Awards
Mongolia, will be held for all attendees immediately following the business portion of the meeting
in the “Topaz” room on the 3rd floor, Blue Sky Hotel. Delicious meat pies provided at the reception
are sponsored and provided by Churchill's.
If you would like to sponsor BCM’s networking reception of monthly meetings to publicize your
activities, please contact Tuguldur at tugi@bcmongolia.org.
BUSINESS
NAGATA ENGINEERING TAKES LEAD ON DRY-COAL PROCESSING PLANT WITH ERDENES MONGOL
Erdenes Mongol LLC will take a helping hand from Japan to produce value-added coal products
without tapping to heavily into the country's sparse water resources. Mongolia has vast coal
resources but lacks the infrastructure to process coal to sell at higher prices and many worry about
the water consumed from such operations in stressed areas. The Mining Ministry has inked a deal
with the Japan's Economy, Trade and Industry Ministry to work together to build a facility for dry-

coal processing, which would alleviate concerns about heavy water consumption. Many
environmentalists have raised concerns about mines consuming water in the arid Gobi desert, which
hosts some of Mongolia's largest coal and copper deposits.
Nagata Engineering Co. of Japan will be the lead private partner for the project to produces
300,000 tons of processed coal using dry gravity separation technologies.
Source: Mongolia.GoGo.mn
MONGOLIA HALTS TALKS WITH URANIUM MINER OVER USD106 MN AWARD
The Mongolian government has suspended talks with Canada’s Khan Resources Inc. in negotiations
over the confirmation of a USD106 million award ordered against the country for canceling Khan's
licenses to develop one of the world’s largest untapped uranium reserves. Khan said the parties
held meetings in December and January to discuss Mongolia’s outstanding obligation to the uranium
developer, but the talks were cut off last month at the request of the government, according to
Khan’s 12 February earnings release. Grant A. Edey, Khan’s president and chief executive officer,
said the talks stopped for "unexplained reasons" and without explanation.
Edey said in December that an effort to collect Mongolia’s non-immune sovereign assets was
underway. Edey said Khan’s plan did not include so-called immune assets such as embassies and
Mongolian gold reserves, or assets based in Russia or China.
Source: Law 360, Cover Mongolia
MITSUBISHI TO UPGRADE UB THERMAL POWER PLANT NO. 4
Mitsubishi Hitachi Power Systems (MHPS) has received a contract to upgrade eight units at the
Ulaanbaatar Thermal Power Plant No.4 in Mongolia. Under the contract, MHPS will partner with
Mongolia-based engineering firm, MCS International LLC, to undertake the refurbishment work
including addition/renewal of related equipment on eight units at the thermal power plant in
Ulaanbaatar. MHPS plans to complete the refurbishment work in October 2018. Terms of the
contract were undisclosed.
The refurbishment work is expected to contribute to the realization of a more stable power supply.
Source: Energy Business Review
MOODY'S ASSIGNS FIRST-TIME RATINGS TO BOGD BANK
Moody's Investors Service posted its first-time ratings on Bogd Bank LLC of B3 for local currency and
foreign currency long-term deposit ratings, and NP for local currency and foreign currency short-
term deposit ratings, it reported on 5 February. Moody's has assigned Bogd Bank a baseline credit
assessment (BCA) and adjusted BCA of b3, long-term counterparty risk assessment of B2(cr), and
short-term counterparty risk assessment of NP(cr). The outlook for all the ratings is stable.
"Bogd Bank's BCA reflects the risks associated with establishing a new bank and the challenges that
the bank faces in accessing sticky deposit funding and managing liquidity," said Hyun Hee Park, a
Moody's assistant vice president and analyst.
Source: Moody's Investors Service
BOGD BANK ESTABLISHES CORRESPONDENT BANK RELATIONS WITH MIZUHO BANK
Bogd Bank LLC has established correspondent bank relations with Mizuho Bank, a leading financial
institution with one of the largest customer bases in Japan, Mongolia's newest bank reported on 4
February. Bogd Bank has opened a correspondent account in Japanese yuan there and has begun
international payment services for customers.
Source: Bogd Bank
CONTAINER BAG PRODUCER AIMS TO MEET NATIONWIDE DEMAND
A company that produces extra tough bags to move around heavy materials will receive government
financing to ramp up production for its target to meet nationwide demand. The government has
lent funds to local operators planning to expand their operations or launch new ones as a catalyst
for import replacements and new export markets. SM Container Bag LLC has produced 240,000 bags

a year for the transport of mining products used by local producers such as Oyu Tolgoi LLC and
Erdenet Mining Corp. for over a decade. It hopes to expand its operations with a MNT800 million
loan from the government.
Source: Montsame
MGG ANNOUNCES PLAN TO BUY ITS COMMON SHARES
Mongolia Growth Group Ltd. (MGG) plans to purchase up to 8.3 percent of its total common shares
issued and outstanding, approximately 9.9 percent of the Company’s current public float, on the
belief that its shares are undervalued, it said in an 18 February announcement. The TSX Venture
Exchange has approved MGG's request to purchase 2.95 million of its own shares during the next 12
months.
“The Company is undertaking the Bid because, in the opinion of its board of directors, the market
price of its common shares, from time to time, may not fully reflect the underlying value of its
operations and future growth prospects,” reads the statement. “The Company believes that in such
circumstances, the purchase of the common shares of the Company may represent an appropriate
and desirable use of the Company’s funds and further enhance market stability.”
Source: Mongolia Growth Group Ltd.
ANTHIAS CONSULTING AND A CHARITY SEND GAS CHROMATOGRAPH TO MONGOLIAN UNIVERSITY
Anthias Consulting is working with charity RORO (Recycling Organization for Research Opportunities)
to connect redundant analytical instrumentation with academic institutions in Mongolia and
elsewhere around the world that do not have the necessary finance to purchase new
instrumentation. In September 2015, Diane Turner and Imran Janmohamed from Anthias worked
with The Open University to send a Gas Chromatograph Flame Ionization Detector (GC-FID) to the
Mongolian National University. The instrument is currently being set up to analyze polycyclic
aromatic hydrocarbons (PAHs) along with other toxic organic compounds in the environment.
Source: Cambridge Network
ERDENE REPORTS UP TO 99% GOLD RECOVERY FROM COMPOSITES AT BAYAN KHUNDII
Erdene Resource Development Corp. reported up to 99 percent recovery of gold from high-grade
gold composites at Bayan Khundii gold project, it reported on 16 February. Exploration results from
the project showed that gold from Bayan Khundii was free milling and amenable to conventional
processing techniques. It reported 99 percent recovery from high-grade (24.9 grams per ton of gold)
composite using gravity plus cyanide leach methods and 92 percent recovery from low-grade (0.7
grams per ton of gold) composite using gravity plus cyanide leach methods.
"From the initial drill results received just two months ago, to these very encouraging metallurgical
results, Bayan Khundii is proving to be an exceptional gold discovery when you consider the high-
grade, large size potential, proximity to surface, and now high gold recoveries," said Peter Akerley,
Erdene's president and chief executive officer. "We have a number of studies underway geared
towards a quick ramp-up for this project as we move into Q2 2016."
Source: Erdene Resource Development Corp.
UNICEF’S FIRST PRIVATE-SECTOR PARTNERSHIP WITH ARIG BANK
Arig Bank has become Mongolia first-ever private sector partner for global children's aid group,
UNICEF, the bank reported on 7 February. In a letter, UNICEF Resident Representative in Mongolia
Roberto Benes congratulated “Arig Bank staff for your efforts under Corporate Social Responsibility
and expressed UNICEF’s willingness to support and to move forward with our initiatives through
social investment,” reads the statement.
Source: Arig Bank LLC
OT PROJECT FINANCING AGREEMENT NAMED 'ASIA PACIFIC MINING DEAL OF THE YEAR'
Oyu Tolgoi LLC’s USD4.4 billion underground mine development financing agreement has been
named “Asia Pacific Mining Deal of the Year” at the 2015 Project Finance International (PFI)

Awards. In awarding Oyu Tolgoi, PFI highlighted the project’s important contribution to not only Rio
Tinto’s business, but also Mongolia and its people. “As well as containing reserves and resources
that make it one of the world’s largest copper-gold deposits, Oyu Tolgoi will have a transformative
effect on the nation and the people of Mongolia, and is an important long-term partnership with the
Government of Mongolia,” PFI reported.
The signing of the project financing agreement in December 2015 was an unprecedented milestone
for the Oyu Tolgoi project, representing one of the largest mining lending deals in 2015. It includes
funding by international financial institutions and export credit agencies representing the
governments of the U.S., Canada and Australia, along with 15 commercial banks.
Source: Rio Tinto
TERRACOM LOOKS BEYOND MONGOLIA, COMPLETES DEBT RESTRUCTURING
The Australia-listed operator of the Baruun Noyon Uul metallurgical coal mine in Mongolia,
TerraCom Ltd., is considering options to expand its business through acquisitions in Australia and
Indonesia, according to a recent company announcement. “In order to support the growth and
expansion of the company and to de-risk from a single mine and single country operators, TerraCom
continues to evaluate cash generative assets for potential acquisition,” the company said.
TerraCom on 10 February also announced the completed restructuring of its balance sheet where a
principal of USD 55 million was refinanced by a 5-year bond, with the first interest payment
deferred until 23 December 2016 and no principal repayments until 2021.
Source: World Coal, TerraCom Ltd.
EAGLE FESTIVAL AT CHINGGIS KHUREE
A festival based on the traditional Eagle Festival will be featured in a Hollywood documentary held
at Chinggis Khuree Tourism Camp at Bogd Khan National Park on 5 March. The event in March is
based on a cultural event held every year in the fall that has drawn thousands of spectators,
including actress Michelle Rodriguez. Competing at the event will by Aishol Pan, who is featured in
the documentary film, The Eagle Huntress.
LEONARDO DICAPRIO SNAPS UP EXPEDITION TO MONGOLIA
The Oscar-nominee Leonardo DiCaprio was among the big stars in attendance at the amfAR New
York gala in February, and it has since emerged he offered up the highest bid, USD95,000, for the
opportunity to embark on the 10-day expedition with Swedish explorer Johan Ernst Nilson. The
expedition will include the exploration of Lake Khuvsgul, nicknamed the Dark Blue Pearl of
Mongolia, while travelers will be taken horseback riding and hunting with falcons.
"When I do these trips, I take people out of their comfort zone in terms of the inner journey and get
them doing things they normally wouldn't do," Nilson said. "If you push your limits, the reward will
be much higher. It's going to be amazing."
Source: Contact Music
ENGIE TO SPEED DISPOSALS WITH INCOMING CHIEF EYEING UP TO EUR 20 BN
French utility and a lead developer to build Combined Heat and Power Plant No. 5, Engie SA, is
considering a widespread restructuring with between EUR10 billion to EUR20 billion (USD11.14
billion-USD22.29 billion) of disposals under Isabelle Kocher, the incoming chief executive. People
close to the group said Kocher will try to accelerate the company’s move away from thermal energy
and mature markets in Europe, instead putting greater emphasis on renewables and emerging
markets.
All of the group’s mature market “merchant” business—areas where prices are unregulated and
move with the markets—will come under scrutiny. This includes thermal power generation and gas
storage. The plan by Kocher, who starts formally in May, comes as the utilities sector endures
chronic low power prices in developed markets, while the shift to renewable energy squeezes
margins at traditional plants burning coal and gas.

Source: Financial Times
ING SHARES RISE 10% AFTER BANK’S EARNINGS BEAT EXPECTATIONS
ING defied the gloomy European banking market with promises of higher dividends and fourth-
quarter earnings that beat expectations. Its shares rose more than 10 percent on the news. Higher
margins and a bigger loan book were the key drivers of underlying profits of EUR902m (USD1 billion)
for the quarter, better than expectations of EUR759 million and the EUR569 million in the same
quarter a year earlier.
The lender’s performance was in stark contrast to the bigger European banks that have reported
2015 earnings. Deutsche Bank’s shares were down 20 per cent since its January 20 profit warning,
while UBS fell as much as 8 per cent, and Credit Suisse was down as much as 13 percent after it
reported results earlier this week. “Try and find another bank across the euro zone which has core
loan growth and NIM [net interest margin] going up,” Andrew Coombs, banks analyst at Citi, said.
“It is one of very few banks that have that ability.”
Source: Financial Times
SPONSORS
Oxford Business Group The New Media Group
Mongolian Economy Magazine
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS
The Bank of Mongolia on 18 February sold USD25.8 million and CNY54.5 million to central banks in
currency auctions for closing exchange rates of MNT2,026.15 and MNT310.20, respectively. Also that
day, it accepted tugrug swaps with commercial banks for an equivalent of USD3 million.
The Bank of Mongolia on 15 February issued 1-week bills worth MNT352 billion at a weighted
interest rate of 12 percent. Also that day, the central bank received MNT19.5 billion in bids for the
auction of 28-week treasury bills with a face value of MNT19.5 billion (compared with an original
value of MNT20 billion).
Source: Bank of Mongolia
MONGOLIA ENDURES SLOWEST GROWTH IN SEVEN YEARS
Mongolia's economy grew 2.3 percent in 2015, said the National Statistical Office on Tuesday,
making it the weakest year since the country suffered delayed effects from the global economic
crisis in 2009. The stagnant economy sets a daunting challenge for the Democratic Party members,
who will be fighting to retain control of the government at an election on 29 June. Nick Cousyn,
chief operating officer for Ulaanbaatar-based brokerage firm BDSec, said the slowdown stems from
a combination of falling foreign investment, dwindling commodities prices and repeated delays to

launching and completing development projects.
Cousyn said growth may return to above 10 percent, "but trend line growth for Mongolia in a normal
or optimistic commodities environment is in the 7-9 percent range."
Source: Reuters
MONGOLIA DOLLAR BOND PRICE TAG DOUBLES BEFORE IMPENDING SALE
If Mongolia proceeds with its first dollar sale since 2012, it will have to pay almost double what it
initially bargained for. The country, which ended investor meetings on 20 January, said last summer
it was seeking to raise cash at yields below 6 percent. Since then, a combination of slumping
commodity prices and political wrangling that led to a no-confidence vote against the prime
minister drove the yield on 2022 bonds to 11.90 percent on Monday.
Source: Bloomberg
MONGOLIANS STRAPPED FOR CASH AS INCOMES FALL AMID SLOWDOWN
Mongolians are feeling the crunch of an all-around slowdown in the economy, which tallied 2.3
percent growth last year compared with an all-time high of 17.5 percent in 2011. Average monthly
cash flow into homes was down 12.7 percent as farmers and herders' incomes fell 31.6 percent. The
income from all industries outside the agriculture sector was also down by 34.1 percent. Household
spending fell 13.2 percent nationwide in the fourth quarter of last year compared with the same
period in 2014, according to the State Registration and Statistics Agency. Families spent 14.1
percent less on non-food products and services.
Another government metric showed that Mongolians were still enjoying successful livelihoods on
average, however. Per capita income nationwide was 49.2 percent above the minimum standard of
living on the national level as of the last quarter of 2015, according the State Registration and
Statistics Agency.
Source: Montsame, 2
COPPER SMELTER TO BE BUILT IN BOR-UNDUR
The Industry Ministry has confirmed a location at Bor-Undur Soum, Khentii Aimag for the
construction of a smelter factory that will earn a higher price for the copper leaving the country.
The planned smelting facility would produce 530,000 tons of refined copper a year for a higher
price than the copper concentrate currently leaving the country.
Bor-Undur was chosen for its access to infrastructure, including rail transport to China and Russia,

and close proximity to two large copper deposits.
Source: News.mn
HERDERS RECEIVED REDUCED INTEREST ON LOANS, WITH FURTHER CUTS ON THE WAY
Mongolia is providing lending relief to herders by subsidizing interest rates to 18 percent compared
with about 29.5 percent annual interest. Food and Agriculture Minister R. Burmaa signed an
agreement with Toriin Bank LLC (State Bank) to provide loans with 17.557 percent interest to
herders who could contribute to the country's meat exports. Burmaa promised to push down lending
rates even further to 10 percent in March.
According to the Bank of Mongolia, 120,000 herder households have loans totaling MNT222.7 billion
with between 26.5 and 29.5 percent annual interest.
Source: Unuudur
HERDERS MITIGATE DZUD LOSSES, DESPITE DELAYED FINANCIAL SUPPORT
This year has proven difficult with harsh temperatures and severe blizzards, but the government
may have avoided natural disaster with its pre-emptive measures. The total loss of animals since
the beginning of 2016 has been 44,000 livestock dead, or 0.07 percent the population in Mongolia,
after government sent out authorities to prepare herders and deliver animal feed rations. Zavkhan,
Uvs, Arkhangai and Sukhbaatar Aimags have reported the most number dead, while all but
Arkhangai have reported severe blizzards.
The government has provided aid in the form of hay feed rations for livestock, but transportation is
difficult in blizzards and expensive, say herders. The government has sold 10,000 tons of hay and
6,000 tons of forage feed from reserves at half the market price. The Ministry of Finance has
promised MNT1.8 billion to keep roads open for emergency services, but intended recipients have
reported delayed payments.
Source: UB Post, News.mn
FOREIGN STAFF NUMBERS IN MONGOLIA FALL
The number of foreign workers in Mongolia has fallen by 15 percent as the economy declines and
government regulations make it more difficult for companies to retain foreign staff. Mongolia
recorded 6,800 foreign workers from 68 different countries last year. Chinese represented the
largest number of foreign workers, with 35.4 percent. North Koreans came in second with 23
percent, followed by 8.3 percent Russians, 6.7 percent South Koreans, 4.2 percent Americans and
3.4 percent Vietnamese.
Most foreign employees worked in construction (28 percent), followed by manufacturing (13.7
percent), retail (10.7 percent) and auto repairs (12.1 percent).
Source: News.mn
MORE MONGOLIAN WOMEN MARRYING FOREIGN MEN
More young Mongolian women are choosing foreign spouses than ever before, according to the
Ministry of Foreign Affairs at a 16 February press conference. In January, 1,070 Mongolian citizens
married non-Mongolian citizens, of which 90 percent were women. Those women were between the
ages 20 and 30, said a ministry official.
Source: News.mn
TWO NEW HIV/AIDS CASES REGISTERED
Mongolia saw an 87.7 percent rise in communicable disease such as small pox, according to the
National Statistical Office. The statistics bureau reported 2,723 cases of small pox found in patients
in January, as well as two new cases of HIV/AIDS. Mongolia has in total 201 individuals infected with
HIV/AIDS.
Meanwhile, other infectious diseases that had become common are starting to fall. The number of
individuals with viral Hepatitis cases is down by 33, or 36.7 percent. The number of Tuberculosis
patients is also down, by 98, or 25.7 percent.

ROAD TOLL OFFICERS ENFORCE NEW SCHEME FOR FEES
The scheme for road tolls have been altered by order of the Cabinet Secretariat (Source does not
include original toll amounts for comparison). Cars with 12 or fewer passengers will pay MNT1,000
at the toll, while those with up to 24 will pay MNT2,000. The fee for cars with even more
passengers is MNT3,000.
Commercial vehicles will be charged between MNT2,000 and MNT10,000, depending on their license
classification.
Source: Montsame
UB PLANS NEW ROADS TO RELIEVE TRAFFIC CONGESTION
Roads and bridges throughout Ulaanbaatar are planned for construction this year to ease traffic
conditions. Planners hope to lessen traffic congestion between Peace Avenue and Unur Town with
the construction of 2.4 kilometers of 6 bridges and roads between Ard Ayush Avenue and Tolgoit
Road, according to the City Roads Department. To reduce traffic traveling from northwest
Ulaanbaatar to the opposite end, 3.6 kilometers of roads and bridges will be built between the ger
district of Moriin Davaa and the Auto Shopping complex.
MNT3.6 BILLION BUDGETED FOR UB TOURISM
The Ulaanbaatar Tourism board has released a more detailed plan of how it will utilize its budget of
MNT3.6 billion to target growth in the tourism industry. Ulaanbaatar launched its “Friendly
Ulaanbaatar” campaign last year with the aim of improving hospitality services and creating tourists
attractions to draw in a greater number of foreign visitors. This year's efforts include entering into
the Google Maps application specific locations that might interest tourists. The tourism agency also
plans to hold training sessions to improve services and the skills of 2,000 services workers in
hospitality.
Source: Unuudur
GANDAN PLANNED AS NEXT TOURIST ATTRACTION
New district planning and spending for Ulaanbaatar is being done to target greater tourism for the
capital city. Ulaanbaatar is planning to turn the Gandan Tegchilen Monastery, characterized by its
winding streets and cultural relics, into a tourist attraction amid city efforts to create tourist
attractions. Another key focus is the Khurel Togoot astronomy center located near to the city.
MNT3.6 billion has been budgeted for tourism this year, with the city targeting a 10 percent
increase in tourism, or about 40,000 additional tourists. Last year, tourism brought in MNT20 billion
after MNT3.4 billion in spending. Tourism figures show that 92 percent of last year's 385,000 tourists
headed for the countryside, while Ulaanbaatar served merely as a place to arrive and leave from.
The average tourist spent USD190 a day in Mongolia.
Source: News.mn
FEMALE ENTREPRENEURS' CENTER TO OPEN IN ULAANBAATAR
An institution focused on empowering and aiding female entrepreneurs will open in Ulaanbaatar as
city officials and international groups spearhead gender inequality in the country. On 18 February,
representatives of the Ulaanbaatar Mayor's Office, Asia Foundation and the chief financier, the
Korean International Cooperation Agency (KOICA), signed a memorandum to establish the female
entrepreneurs’ center to hold trainings for start-ups and businesses over the next three years.
“I have no doubt this will bring a huge impact to the livelihood of women,” said Mayor Erdene Bat-
Uul.

UNFPA DELIVERS 'DIGNITY KITS' FOR WOMEN CAUGHT IN A DZUD
Mongolia is possibly in the middle of a natural disaster. It is not what we normally imagine—an
earthquake, flood, or tsunami—but a unique Mongolian disaster where extreme winter conditions
and nomadic and agricultural livelihoods intersect: a “dzud.” A dzud denotes the extreme winter
conditions that undermine the welfare and security of herding communities across rural Mongolia as
a result of wide-scale losses of livestock. As Mongolia faces this winter emergency, it is critical that
the needs of women and adolescent girls are met and prioritized.
UNFPA Mongolia has developed a specific ‘Dignity Kit’ for the communities affected by dzud that
includes the basic items that women and girls need to protect themselves and maintain hygiene and
respect in the face of natural disasters. Kits contain standard hygiene items such as sanitary
napkins, hand soap, toothbrush, toothpaste, underwear, and protection items including whistles
and lights.
Source: UNFPA
IFC PROMOTES RESPONSIBLE WATER MANAGEMENT IN MONGOLIA’S MINING SECTOR
International Finance Corp. (IFC), a member of the World Bank Group, successfully brokered a new
voluntary code of practice (VCP) for common water management and reporting for the mining
industry in the southern Gobi region. Mining is the backbone of Mongolia’s economy, with the arid
Gobi region set to experience a major mining boom. However, a lack of long-term management and
resolution of water issues could derail mining and significantly impact the country’s future growth.
Exploration and mining companies need water for operations and are increasingly aware that it
needs to be managed as a shared resource.
“The VCP provides the framework for a positive impact on water management by conserving
ecosystems, strengthening communities, and committing to specific operational practices,” said B.
Byambasaikhan, chief executive officer for Erdenes Mongol LLC, Mongolia’s largest investment
holding company and one of the signatories to the VCP.
Source: Commdev.org
AWARD-WINNING HERDERS SET TO TEACH YOUNGER GENERATION
Mongolia hopes to pass on the skills and know-how of the country's herders who best survived this
year's difficult winter conditions to the next generation to help keep the cultural livelihood alive.
Mongolia still hosts 153,000 herding families after 9 years of declining numbers. The Cabinet
Secretariat on 4 February awarded 188 herders with honors, in addition to 3 farmers. The
government has asked the award recipients to transfer their survival skills to the next generation of
herders after surviving this year's harsh winter conditions with minimal losses to their livestock.
Source: Montsame
WORLD RUGBY HOLDS TRAINING FOR REFEREES AND COACHES
World Rugby this month carried out the second of three workshops to train Mongolia's coaches and
referees. The training held from 11 to 14 February was part of a three-phase training initiative from
World Rugby, in cooperation with the Rugby Federation of Mongolia.
Headquartered in Dublin, Ireland, World Rugby is the world governing body for the rugby union that
organizes the Rugby World Cup every four years.
Source: Montsame
CAN ANGRY YOUNG MALES SAVE A CRITICALLY ENDANGERED CAMEL?
When a Chinese professor Liu Shaochuang (“the professor,” as I call him) sends me three satellite
maps, I pay serious attention. As well as probing the surface of the moon, he is helping monitor the
movements of collared wild, double-humped camels in the Gobi Desert. According to the latest
estimates, as few as 450 wild camels roam the Mongolian Gobi, in a 55,000-square-mile (142,000
square kilometers) reserve called the Great Gobi Strictly Protected Area A. Another 600 or so are
found across the Chinese border. Time isn’t on their side: Because wild camels have a 13-month
gestation period, they can only reproduce every two years.

The aim is to gradually boost the wild population in Mongolia to a sustainable number—ideally no
fewer than a thousand. The only solution to this potential camel bedlam is to remove from the fray
the three- to six-year-old thrusting males who have a tendency to sever the tendons of reluctant
females.
Source: National Geographic
CHINA’S RESERVES PLUNGE WHILE STRESSES MOUNT
China’s supposedly unassailable war chest of foreign exchange reserves is looking less and less
unassailable as Mongolia's sees a dry up in its own reserves—backed by a currency swap agreement
with the People’s Bank of China (PBOC). PBOC used up nearly USD100 billion in January defending
the yuan, lowering the country’s reserves to USD3.23 trillion. A couple more months like this and
the level could go below USD3 trillion. It peaked near USD4 trillion in mid-2014.
Dropping below USD3 trillion isn’t crossing a red line, per se. Three months is considered the
minimum. But if China sees no end in sight to the reserve destruction, breaching USD3 trillion could
be a psychological spur for policy makers to reassess the strategy of keeping the yuan propped up.
The other choice from spending reserves is to let the currency weaken. Should outflows persist,
that option may start to seem more reasonable.
Source: Wall Street Journal
ULAANBAATAR AND CLIMATE CHANGE—EDITORIAL
While Mongolia is gradually coming to the realization of the long-term dangers it faces from climate
change, like many developing nations it lacks the political, financial and human capital to enact
real change in the short-term. Emerging cities such as Ulaanbaatar are focused on economic growth
alone, but as long as growth remains linked to increasing greenhouse gases (GHG), the risks from
climate change will increase. “Climate-smart” policies that can further development while reducing
vulnerability to climate events and open the way to a sustainable low-carbon “green-growth” are
essential.
A key development that cities such as Ulaanbaatar must undertake is a commitment to monitoring
and improving the transparency of its climate change actions so that all stakeholders can
participate in the process. It is clear that the priority for Ulaanbaatar is to undergo an energy
revolution which would not only mitigate emissions of GHG, but also dramatically improve public
health, create private sector opportunities and improve productivity of its citizens.
Christopher de Gruben is a real estate investor as well as a managing partner and co-founder of
Make a Difference (MAD) Investment Solutions.
Source: Degruben.com
POLITICS
PARLIAMENT RECONVENES FOR IRREGULAR SESSION
Parliament has postponed plans to continue discussions this week in Parliament for the possible
dismissal of judges on the Constitutional Court because of a boycott from the Mongolian People's
Party (MPP). Parliament Speaker Zandaakhuu Enkhbold called the special session to be held until 26
February to discuss the dismissals as well as legislation that still needs voting. The 10 leftover bills
include amendments to the tax code, and rules to criminal investigations.
The MPP boycotted the session on the grounds that it was unnecessary. Party officials said they had
already agreed to approve any motion to appoint former president and prime minister Nambar
Enkhbayar as deputy prime minister. The appointment would come in spite of a criminal record
after Enkhbayar served a year in jail for corruption while holding office.
Source: News.mn, 2
NEW FEES AND REGULATIONS PROPOSED FOR URANIUM PRODUCERS
A new bill coming before Parliament would set new criteria for taxing companies who mine and

produce materials such as uranium for the nuclear energy industry. Parliament Speaker Zandaakhuu
Enhkbold received the proposed amendments to the Nuclear Energy Law on 10 February, which
would put up special fees and licensing for any companies working with radioactive materials.
Source: News.mn
CW-GP MPS PROPOSE TIGHTER ENVIRONMENTAL REGULATIONS
Parliament members of the Civil Will-Green Party (CW-GP) are proposing new environmental
conservation policies to penalize companies that fail to meet obligations to the environment. The
new regulations would fine companies at 20-to-30 times the minimum wage if they fail to meet
royalty payment requirements or cut spending on required land rehabilitation and other
environmental responsibilities. Any specific individual who violates the law would face a fine of 10
times the minimum wage.
Source: Montsame
PRESIDENT SUBMITS BILL FOR ENROLLING SKILLED WORKFORCE IN MILITARY
The president's office is seeking to enroll skilled professionals in the Mongolian military. A bill
submitted by a member of the president's staff, human rights and legal policy advisor Ch.
Onorbayar, on 5 February submitted the bill for enlisting volunteers with professional skills into the
Mongolian Armed Forces as well as students for the national Student Troop program.
Also that day, Parliament received a bill to better align the strategies of the military with that of
the Millennium Development Goals.
Source: Montsame, 2
RULES OF ORIGIN CHANGED TO FIT JAPAN FTA
Mongolia is changing its rules concerning consumer goods and where they come from to be in better
sync with the free trade agreement (FTA) Mongolia has with Japan. The agreement, signed last
year, removes import-export taxes on specific goods, including meats and cashmere. The Cabinet
Secretariat on 15 February amended the rules to better align with the standards laid out by the
agreement.
Source: Montsame
QUOTA SET FOR INDIVIDUALS PAYING TO AVOID MILITARY SERVICE
The government is setting new rules for military service, allowing a certain number of people to pay
their way out of their responsibilities. The Cabinet on 15 September set a fixed quota for the
number of people who must complete military service this year. Up to 755 people across the nation
will be able to pay a fee of about MNT4.8 million to abstain from military service.
Source: Montsame
MNDP POSITIVE ABOUT MERGER WITH DEMOCRATS
The Democrats are getting some traction with their efforts to consolidate their coalition partners
into their own ranks for the next election. The Mongolian National Democratic Party (MNDP), which
makes up part of the so-called Justice Coalition with the Mongolian People's Revolutionary Party
(MPRP) in the Democrat-led government, on 6 February said publicly that they had held meetings on
merging with the Democratic Party. Also that week, the Civil Will-Green Party (CW-GP) that also
belongs to the coalition government concluded a memorandum with the Democrats to merge their
two parties after rejecting a similar invitation from the MPRP in January.
Source: News.mn, 2
MONGOLIA CONDEMNS BALLISTIC ROCKET LAUNCH BY NORTH KOREA
Mongolia has spoken out against North Korea's launch of a ballistic rocket this month in a 8 February
statement from the Ministry of Foreign Affairs. According to the statement, Mongolia regrets the
decision to launch the test rockets in breach of U.N. Security Council resolutions, saying that it was
detrimental to efforts by the international community to maintain international peace and security.

“Mongolia reaffirms its firm position for the maintenance of peace and security in North-East Asia
and for the denuclearization of the Korean Peninsula,” reads the statement.
Source: Montsame
NETHERLANDS TO DEPORT MONGOLIAN ASYLUM SEEKERS
Mongolia was included on the Netherlands' List of Safe Countries of Origins on 12 February, making
its citizens ineligible for seeking asylum there beginning 1 March. The Netherlands added Ghana,
India, Jamaica, Morocco, Mongolia, and Senegal to the list that day, said Dutch State Secretary for
the Ministry of Security and Justice Klaas Dijkhoff. According to the Dutch government's official
website, the list includes countries safe enough to return to, do not persecute based on race or
religion, or apply torture or inhumane treatment.
In 2015, the Netherlands received 566 asylum requests from the 6 countries recently added to the
list, including 363 from Mongolia.
Source: UB Post
U.S. TO RETURN STOLEN MONGOLIAN DINOSAUR TREASURES
Ulaanbaatar will work with federal U.S. officials for the return of artifacts and dinosaur fossils
smuggled out of the country through an international black market. Mongolian law puts any treasure
found in its soil as state property. According to a statement from the Ministry of Foreign Affairs,
Ulaanbaatar has signed an inter-governmental cooperation agreement with Washington D.C. to see
the return of any fossils remains confiscated by federal officials by 5 April.
The confiscated goods includes a 70 million-year-old skull of the Alioramus dinosaur, a relative of
the Tyrannosaurus Rex, taken from New York; the skull of a Bactrosaur taken from Utah last year; a
Protoceratops skeleton and fossilized eggs nest; a Psitosaur skull; a Hadrosaur skeleton; and one
box containing the remains of a baby Proteceratops.
Source: News.mn
U.S. AMBASSADOR LAUDS MONGOLIA FOR 'RIGHTS FOR DISABLED'
U.S. Ambassador Jennifer Zimdahl Galt has congratulated the Mongolian parliament on passing the
law on protecting the rights for people with disabilities, and said their Embassy "is ready to render
support for realizing the law successfully." Galt in a meeting with MP Ts. Oyungerel, the head of the
sub-committee on reducing air pollution, added that she would do her best to make Ulaanbaatar
completely smoke-free.
Source: Montsame
SOME 1,000 SOLDIERS WILL PARTICIPATE IN JOINT RUSSIAN-MONGOLIAN EXERCISES
About 1,000 soldiers of the Russian and Mongolian armed forces will participate in the joint Russian-
Mongolian Selenga 2016 military exercises to be held in the Republic of Buryatia this summer, the
head of Russia’s Eastern Military District press service said Monday. "In the first round of
consultations held in the capital of Buryatia, Ulan-Ude, representatives of the Eastern Military
District and the Mongolian Armed Forces agreed that Selenga will be held at the Burduny training
range from 29 August to 7 September. It is planned that some 1,000 soldiers from both sides will be
involved," Alexander Gordeev said.
The Selenga exercises have been carried out annually since 2008.
Source: Sputnik News
ANTI-CORRUPTION AUTHORITY PROBES EX-PRESIDENT
Government officials are calling on the Mongolia's anti-corruption investigators to launch a new
investigation into Nambar Enkhbayar, who has been proposed as the next deputy prime minister
despite a history of jail time served for corruption. Former president and prime minister Enkhbayar
served a year in prison between 2012 and 2013 for corruption before he received a presidential
pardon for his release, all the while remaining as the de-facto leader of the Mongolian People's
Revolutionary Party (MPRP). The MPRP has championed him as needing a high position of office

since his return to Mongolia after he spent a year in South Korea for medical attention.
Now that Enkhbayar is being seriously considered a candidate for a top spot in government, the
government is opening an investigation to uncover any conflicts of interest.
Source: News.mn
ANOTHER MPRP OFFICIAL ACCUSED OF CORRUPTION
Anti-corruption authorities have arrested another official from the Mongolian People's Revolutionary
Party for alleged crimes related to the arrest of former Health and Sport Minister G. Shiilegdamba.
MPRP Finance Secretary P. Tsogtbaatar is currently under incarceration at Prison No. 461 [Source
does not include details of the charges against him -ed]. Shiilegdama, who is also the MPRP's
secretary general, was released on bail last month after being arrested in November on unspecified
charges of corruption.
Source: News.mn
CITIZENS PROTEST FOR DISMISSAL OF CONSTITUTIONAL COURT MEMBERS
Protesters gathered outside the Constitutional Court demanding the resignation of members on 15
February for what they claim is the politicized operations of the court. “We’re representing the
public,” said demonstrator L. Enkhsaikhan, who said protesters had no affiliation with any party or
NGO.
“The Constitutional Court is too politicized,” he said. “Just a few months ago, they stopped the 8
percent mortgage loan process. We’re demonstrating because the Constitutional Court is starting to
politicize simple things.”
Source: UB Post
BCM UPDATES:
ANNOUNCEMENTS
BCM KNOWLEDGE SHARING SESSION WITH NOMADIC SCHOOL OF BUSINESS, 24 FEBRUARY
The next “BCM Knowledge Sharing Session" will be held in cooperation with the Nomadic School of
Business LLC at 16:00 on Wednesday, 24 February. The discussions that day will focus on the topic
"Exploring your career, purpose, and the leader within you." The discussions will include words from
directors of The Nomadic School of Business. Anthony Willoughby, who first visited Ulan Bator in
1975 and has over 30 years of experience pioneering leadership development in Asia. He has worked
with executives in Google, Coca Cola, Morgan Stanley and many other frontier-thinking companies.
Josephine Stoker, who has worked in one of the leading strategic consultancy companies in
Singapore, will also lead discussions.
The session is offered free of charge to BCM members only and will be presented in English with
Mongolian translation.
_________________________________________
1ST ANNUAL BCM SUMMIT, 21 APRIL, BLUE SKY HOTEL
The Business Council of Mongolia (BCM) will host its 1st Annual BCM Summit on 21 April at Blue Sky
Hotel and Tower in Ulaanbaatar. The forum will provide a venue for a wide spectrum of
informative, meaningful and innovative topics important to Mongolia's business community. The
focus will be on business strategies to cope with survival in the economic downturn, innovative
business trends and more.
BCM continues to maintain a strong membership base consisting of nearly 240 business
stakeholders—both national and international—including international financial institutions,
embassies and educational institutions. BCM has more than 350 volunteers in its 8 working groups
lending their wealth of experience in recommendations used by BCM to advocate for a better
business climate.
Registration is MNT100,000 per head for members, compared with the regular fee of MNT120,000.

Save money with the early bird rate of MNT80,000 for members and MNT100,000 for non-members
by registering before 21 March. For more information, email Saruul at saruul@bcmongolia.org.
_________________________________________
MONGOLIA MINING FORUM, 8 MARCH, AT PDAC, TORONTO
Mongolia will promote the progress made in its mining and geology sectors in recent years on 8
March at PDAC, the world’s leading annual International Convention, Trade Show & Investors
Exchange for minerals exploration and mining scheduled on 6 to 9 March in Toronto.
The Mongolian delegation led by the Ministry of Mining and Mineral Resources Authority (MRA) will
consist of representatives of the ministry, major mining companies including Erdenes Mongol, MRA,
Invest Mongolia Agency, the Petroleum Authority, and more. A working group led by MRA will
provide Mongolian businesses the opportunity to promote their projects to investors and have one-
to-one meetings with potential investors during this world leading international mining investors’
conference.
For more information, call Tsetsegmaa, the senior manager at Invest Mongolia, at +976 88008161,
or email tsetsegmaa@investmongolia.com. You can also reach MRA External Affairs Officer Chinzorig
at +976 99000357 or cmunhuu@yahoo.com.
_________________________________________
MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE
Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the
Government Palace on 30-31 March.
This year's two-day event will be held under the theme “Lessons learned, Facing challenges and
Solutions pending,” where participants will seek to define the country’s current national and global
context, as well as outline alternatives for the promotion of future economic and social prosperity
in Mongolia.
BCM members will have a 30 percent discount on registration. Register here, and send an email to
info@meforum.mn mentioning your BCM membership to receive your discount. For more
information email the same address or call 11 321051.
_________________________________________
MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX
The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year
from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will
feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors
representing the industry's major companies. Guest speakers from the government, universities, and
companies will lead seminars of the government policy for mineral resources and new laws focused
on mining and infrastructure in Mongolia.

For more information, contact Munkh-Erdene via email at munkh@minex.mn or call at 344488.
_________________________________________
7TH ANNUAL NATIONAL FORUM FOR RENEWABLE ENERGY, 6 APRIL, CORPORATE HOTEL AND
CONVENTION CENTER
The National Renewable Energy Forum, Mongolia's premier conference on the renewable energy
sector since 2008, will open on 6 April at the Hotel and Convention Center in Ulaanbaatar. At the
forum, speakers will review the initiatives and activities that address key issues for the renewable
energy sector.
Registration is MNT35,000, and there is no limit to the number of registrations. For more
information, email Myagmardorj at e.myagmardorj@gmail.com.
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 27 January in partnership with our member
Santis Educational Services on the topic "Benchmarking standards for language acquisition in the
workplace" with 12 members attending. The session was led by Andrew Orgill, President of Inlingua
Mongolia. Language Benchmarking is how governments, organizations, and industries support the
language acquisition of individuals in a meaningful way. By using an approved objective English-
speaking test as part of the screening process organizations can greatly enhance their chances of
commercial success. This test must be reliable and have a global benchmark. Andrew discussed
about these tests, which are now available here in Mongolia, and why they have become an
imperative in today’s marketplaces. During the session, participants had an on-line connection with
Inlingua head office in Switzerland to see their virtual training facilities.
A BCM Knowledge Sharing Session was organized on 24 December at the Ulaanbaatar City Public
Library with 31 people from 19 member companies attending. The topic of this month's session was
“Implementation of System Certification Standards and its Benefits” facilitated by D.Otgonbat,
Director of Observe Consulting LLC. The topic covered System Certification standards, why they are
important for business and how to adopt and implement SC standards in Mongolia. The feedback
collected from attendees showed that 95% informed that their training needs were met; 60% said
their expected topics were fully covered; the remaining 40% informed their expected topics were
partially covered. 25% of participants proffered to extend the duration of the session. Otgonbat D is
a Certified Management Consultant and Lead Auditor for QMS (ISO9001), EMS (ISO14001), OHSMS
(OHSAS18001) and EnMS (ISO50001) certified by the Professional Evaluation and Certification Board.
Mr. Otgonbat also works as a national trainer for Sustainable Finance Initiative.
BCM ADVOCACY NOTES
Latest draft of Labor Law bill - Government working group
An open discussion was held between the Ministry of Labor and the private sector on the draft Labor
Law on 16 February. The December draft is reflective of many of the recommendations proposed by
the BCM's Legislative Working Group. Labor Minister G. Bayarsaikhan reported that the draft will be
submitted in April for the autumn Parliamentary session. New Working Group members assigned by
the Labor Minister to draft the bill were introduced and promised to review further comments from
the private sector.
For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.
Click here to read the latest draft of the bill.

BCM WORKING GROUP NEWS
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th
floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan
Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate
Capital Ltd and Mongolian Bankers’ Association.
Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes
proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG
(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working
towards increased foreign investment in Mongolia’. It was suggested by members to include more
emerging players in the capital markets such as the insurance industry and most importantly engage
other stakeholders from government entities with the Working Group. Updates were given on the
developments of ‘custodian banking’ and how the WG can leverage their efforts towards sound
regulations for custodian banks.
On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the
Treasury, Oyu Tolgoi will deliver a presentation on project financing.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Risk Working Group
BCM’s Risk Working Group’s 2016 kick-off meeting was held on Thursday, 21 January at Suite 101,
12th floor Express Tower, with 14 members in attendance, representing Mandal General Insurance,
MIG Insurance, Deloitte Onch Audit, XacBank, Wagner Asia, Iarudi, Golomt Bank and Bagatumurch
LLC.
Agenda of the meeting:
•16:00-16:10 Introduction and Opening remarks by Working Group Co-Chairs
•16:10-16:50 "Case studies on tax related cases tried at the Supreme Court of Mongolia"
(Bolorchimeg Kh, Lawyer ELC LLP)
•16:50-17:35 Discussion on proposed topics and finalize plan for 2016
Guest speaker, Bolorchimeg of ELC LLP, emphasized that the presentation is illustrative only and it
does not go into details or the legal implications. The presentation focused on: (i) Tax cases
resolved by the Supreme Court - last 3 years, (ii) Tax Dispute Resolution Process and (iii) Case Study
of Tuushin LLC vs Tax Inspectors of General Tax Authority. Members in attendance were interested
in the tax inspectors’ inspection process and what it entails, and in the statistics of the tax related
cases resolved by the Supreme Court.
Zaya Bolorbold, co-chair of the Risk WG (RWG) presented an overview of the last year’s activities
and introduced proposed plans for 2016. Working group members have supported the draft plan for
2016, with some members volunteering as main speakers from Deloitte Onch Audit, Bagatumurch
LLC. Given the current weather condition in Mongolia, it was decided that BCM to reach-out to the
NEMA and/or State Emergency Commission to request a presentation on the 'dzud* situation; it was
also agreed that the presentation can be complimented with Risk Working Group members’
presentation on how the impacts of the dzud will be translated into insurance claim. Next meeting
is scheduled for 3rd week of February.
_________________________________________
Business Ethics Working Group
BCM’s newest and eighth Working Group, Business Ethic’s meeting was held on 18 January at the UN
House from 16:00 to 17:30 with 15 members in attendance.

Private sector: Atlas Copco, Mandal General Insurance; Government: Independent Agency against
Corruption (IAAC)
Other stakeholders: U.S. Embassy, UNICEF, Transparency International, World Vision, Extractive
Industry, Transparency International, Research Planning Institute;
- Introduction of Working Group’s objectives
- Featured guest speaker: Anders Berglund, “The Business Code of Practice at Atlas Copco Group”
- Proposed topics and plan for 2016
The formation meeting focused on identifying collective objectives for the group and finalizing
topics for 2016. At the meeting, members volunteered to speak and some have proposed specific
deliverables as milestones as a group achievement for the year. It was decided to meet once every
two months and attract more local companies to hear their challenges in maintaining their integrity
in their respective sector.
For more information about this event, please contact Khulangoo Purevjav, Working Group
_________________________________________
BCM’s Logistics Working Group
BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office
Building with 7 people in attendance representing Mongolian Express Co., Ltd. (known as Monex),
Representative Office of Mitsui & Co., Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-
Dolgoon Delgerekh LLC.
• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”
• Discuss and plan WG’s 2016 activities
Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.
Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the
company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service
in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in
the delivery logistics within Ulaanbaatar.
Meeting participants were interested in the expansion plans of the company, such as delivery
services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave
comprehensive answers about the company’s plan for establishing cargo service between South
Korea and Mongolia initially and delving into other markets.
Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.
He again encouraged our members to read through the soft ideas laid out and provide comments.
Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,
so that members interested or operating in that topic area can actively participate and bring in
more insight.
The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the
questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.
Coordinator of BCM, at khulangoo@bcmongolia.org.
_________________________________________
BCM’s Energy and Environment Working Group
BCM's Energy and Environment WG meeting was held on 3 December, 2015 at EEIBC from 16:30-
18:30. The meeting was attended by 16 people with the following stakeholders:
Private sector: Newcom, Sopocco LLC, Areva Mongol LLC, Observe Consulting LLC, MCS Energy
Government: Ministry of Environment, Green Development and Tourism, Energy Development
Center of Ministry of Energy
Others: GGGI, WCS, French Embassy, Embassy of Canada

Guests: Sustainable Fiber Alliance
New members: D. Otgonbat, Observe Consulting LLC and Ch. Sarnai, Clean Energy Asia of Newcom
Group
Discussion Topic: What's happening in Paris during Climate change events: What are the implications
for private sector?
Introduction and Opening remarks by Working Group Chair
"Introduction about Climate Change Conference/21 and Mongolia's commitment status" by D.Saruul,
Project Manager, Biennal Update Report to UNFCCC.
"Introduction about French Embassy and Overview about COP21 in Paris" by Raphael Droszewski,
First Advisor, Chief Adjoint de mission et Consul, The Embassy of France in Mongolia
Discussion on the topic among participants
Meeting minutes summary:
Bulganmurun Tsevegjav, Senior Program Officer of GGGI-Mongolia and Chair of the BCM’s Energy &
Environment WG (EEWG), introduced Jon Lyons, GGGI’s Country Representative to Mongolia, as an
upcoming Chair of the EEWG for 2016 during her absence.
Key points agreed during the meeting was to organize the next meeting in Jan or Feb 2016 following
up on the COP21 outcomes, updates on financial mechanisms, available funds and incentives for
private sector to develop low-carbon projects and to discuss its implications for the private sector.
For more information, please contact Bayarmaa Amarjargal, Vice Director at
bayarmaa@bcmongolia.org.
_________________________________________
BCM Education Working Group
BCM’s Education Working Group was held on 26 November 2015 at Executive Excellence
International Business Center, 10F Galaxy Tower from16:00 to 18:00. Fifteen people attended the
event representing foreign mission in Mongolia, private sector, universities and consultants of donor
funded projects:
Foreign Mission: Canadian Embassy;
Universities: National University of Mongolia, Mongolian University of Science and Technology
Private sector: PwC, Minter Ellison
Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education
and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The
Global Fund;
16:05-16.10 Introductions
16:10-16:25 Update on Higher Education Reform Project activities (IRIM/Saha)
16:25-16.40 Update on Vocational and Technical Education Activities (VETP/Pascal)
16:40-17:10 Update on Labor Law Amendments, TVET Law Amendments: Higher Education
Amendments (IRIM/Saha)
17:10-17:30 Updates by members (FLP, Mandal)
Meeting minutes summary:
Opening remarks by Education Working Group Chair-Saha Meyanathan with passing of the
information about being selected as the best Working Group of the year 2015.
Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB
funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities
will be organized first week of December.
During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of
building the capacity of the professors, as they are the ultimate knowledge givers to the students.

The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher
education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to
highlight a few:
For more information about this event, please contact Khulangoo Purevjav, Working Group
‘BCM in the University Classroom’ series
Guest Speaker: Jon M. L. Lyons, Country Representative, GGGI,
Presentation topic: "Pathways to Greening Economic Growth in Mongolia and beyond"
Where & When: at the University of Humanities on 24 November 2015 and at the Institute of
Finance and Economics on 3 December 2015.
Jon M. L. Lyons, Country Representative, GGGI, gave presentations entitled "Pathways to Greening
Economic Growth in Mongolia and beyond" at the University of Humanities (UoH) on 24 November
2015 and at the Institute of Finance and Economics (IFE) on 3 December 2015. Over 80 senior
students attended the lecture at the UoH and over 70 students at the IFE.
Mr. Lyons, fluent in Mongolian, delivered his presentations in Mongolian. The presentations were
followed by question and answer sessions. While students at the UoH were curious about his recent
project on model green public kindergarten to be built in Songinokhairkhan district of Ulaanbaatar,
students at IFE were asking questions about the size of projects eligible for green finance,
monitoring and reporting requirements for donor-funded projects and vacancy at GGGI or possibility
of doing an internship there.
For more information, please contact Khulangoo, Working Group Coordinator at
khulangoo@bcmongolia.org and Bayarmaa Amarjargal, Vice Director at bayarmaa@bcmongolia.org.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
Presentations:
BCM Monthly Meeting, 25 January:
- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of
the Second Compact agreement between Government of Mongolia and the USA Millennium
Challenge Corporation -
“Development process of the second compact agreement between government of Mongolia and USA
Millennium Challenge Corporation”
- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”
_________________________________________
BCM Monthly meeting on December 7:
- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better
Leaders Through Education & Idea Exchange”
- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant
Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –
STOPP”
- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against
Corruption (IAAC) of Mongolia - “Introduction of IAAC”
- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”
_________________________________________
Mongolia Projects & Investment Summit Hong Kong, 16-17 November:
- Zoljargal Naidansuren, Governor, Bank of Mongolia, “The new equilibrium: reforms to sustainable
growth and savings"
- Narantuya Zagdkhuu, Chair, Financial Regulatory Commission of Mongolia, "Making Mongolia a

frontier again: financial market developments"
- Norihiko Kato, CEO, Khan Bank, "Where does the banking sector fit it?"
- Munkhsukh Sukhbaatar, Rio Tinto, "The way forward for Oyu Tolgoi underground"
- Bat-Uul Erdene, Mayor of Ulaanbaatar city, "City of Ulaanbaatar-2030"
- Matthieu Le Blan, EBRD Head office in Mongolia, "The importance of economic diversification and
import replacement opportunities EBRD's role in enabling progress"
- Tuvshintugs Batdelger, Economic Research Institute, "Transaction Cost of Conducting Business in
Mongolia: SME perspective"
- Oliver Thirlwall, Asian Real Estate Capital, "Distressed opportunities-banking and real estate"
- Kevin Trzcinski, Vice President Corporate Development at Worldwide Power & Technology (HK)
Ltd., "Mongolia as a destination for Scientific Research & Development"
- Randolph Koppa, President, Trade and Development Bank, "Challenges and Opportunities for
Growth"
_________________________________________
Mongolian Annual Risk Management Forum, 11 November:
- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -
Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group
- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western
International Mongolia
- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,
NPC&Mandal LLC
- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head
Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor
- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General
Insurance
- "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC
Mongolia
- "Corporate Crises Management" - G.Odbayar, Mining National Operator
_________________________________________
BCM Monthly Meeting on 2 November:
- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper
business”
- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -
“Introduction to Transparency International’s Business Principles for Countering Bribery”
- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor
Law”
_________________________________________
BCM’s “Knowledge Sharing” event at EEIBC on October 9
- Dr. Nigel Finch, Managing Director, Saki Partners, “Strategically Managing Mongolia’s Sovereign
Credit and Perception Ratings”
_________________________________________
Presentations at BCM Monthly Meeting on 28 September:
- Mend-Orshikh, Founder & President, New Media Group, “Sales and business opportunities using
BCM online platform”
- Steve Potter, Executive Director, Wagner Asia Group, “Corporate Ownership vs. Corporate
Responsibility: How a foreign owned company can contribute to the well-being of Mongolia. Case
Study: WAGNER ASIA Group”
- Cameron McRae, Chief Executive Officer of Tarva Investment and former CEO of OT LLC,
“Competitiveness in Central Asia”

- Saha Meyanathan, CEO, EEIBC and Chairman of BCM Education Working Group, “BCM and
Mongolia's Education & Capabilities Agenda”
_________________________________________
Presentation at Discover Mongolia 2015 on 3 September:
- S. Javkhlanbaatar, General Director, Invest Mongolia Agency, “Opportunity to invest in the mining
industry”
_________________________________________
Presentations at BCM Monthly Meeting on 24 August:
- Jennifer Bielman, Country Director, Mercy Corps Mongolia, "Mercy Corps in Mongolia - 15 Years of
Progress"
- Lee Cashell, CEO, APIP, “Overview of the Property Development Market”
- Anthony Woolley, Senior Associate, Hogan Lovells, “Legislative Update - 2015”
_________________________________________
Mongolia Reports:
- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”
- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform
Priorities (Sep 2015)
- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"
- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"
- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"
- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,
2015, “FDI Environment in Mongolia”
- Hogan Lovells, “Law on State Registration of Legal Entities”
_________________________________________
Interviews:
- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More
Effective"
- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)
- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,
August 20, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV
News, August 20, 2015;
- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview
SOCIAL NETWORKS
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the BCM NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.

Social stats: BCM now has 11,188 fans on our Facebook fans page, 1,974 connections on
LinkedIn network, and 1,962 followers on Twitter.
_________________________________________
Website: According to Google Analytics report as of 26 January, the daily web traffic to BCM
website was 50 visitors with 70 sessions. 80% were from Mongolia, 5% from the USA and 3% from
Canada.
_________________________________________
BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column
featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and
proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study
Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia
Technology Innovations."
_________________________________________
The BCM NewsWire is used as source for the "MM Today" News program in English aired by Mongolia
National Broadcasting (MNB) on Fridays at 19:00.
_________________________________________
BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.
From January 2013 to February 2016 we posted a total of 109 news items related to BCM activities,
economic and business related updates.
_________________________________________
The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos
from BCM events.
As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy
newly introduced interactive features such as: edit your organization's profile information; post
vacancy notices from your organization; post cooperation proposals with other members or deals
you would like to offer to other BCM members; and start a forum and ask questions directly on the
web platform. Of course you can also visit our website for news information, interviews, event
photos, videos and announcements regarding BCM.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
January 31, 2016 *1.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.0% y-o-y, 4.0% Core - Ulaanbaatar City, January 31, 2016

CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]
CURRENCY RATES – 18 February 2016
Currency Rate
US dollar USD 2,026.75
Euro EUR 2,254.76
Japanese yen JPY 17.80
British pound GBP 2,894.40
Hong Kong dollar HKD 260.45
Chinese Yuan CNY 26.91
Russian Ruble RUB 310.92
South Korean won KRW 1.65

Bcm news wire issue 415

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Bcm news wire issue 415