Bcm news wire issue 426

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 426 – May 6, 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:
 Gatsuurt deal set for finalization in springs, says mining minister
 Appointments made for MMC’s debt restructuring
 Shell leaves Petro Matad on its own
 Monos opens pharmaceuticals plant
 Khot to raise $1 mn
 FRC suspends Standard Investment’s special permit for 3 months
 Khan Bank offers 10% loans to herders
 Investment toward Mongolia is improving, but don't expect 'Minegolia'
 A forum for business crossing from the Tuul to the Thames
 2016 Central Asia-Caucasus Fellows announced by Rumsfeld Foundation
Economy:
 Mongol Bank: currency auctions, 1-week bills
 Mongol Bank cuts policy rate 1.5 points
 World Bank suggests spending controls to contain rising deficit
 S&P updates sovereign rating: Affirmed at 'B/B'; outlook stable
 India’s Exim Bank extends its second largest credit of $1 bn to Mongolia
 Miners still waiting on loans aimed for gold production
 Government to subsidize student loans
 Healthcare wins with hospitals’ liberalization, says MP
 Government plans to send out emergency supply of wheat seeds
 Transit hall commissioned at Chingis Khaan Airport
 New international airport three-quarters complete
 As cashmere output quality improves, export price might go up
 Tens of thousands win VAT lottery
 Government launches 4-year consumer rights initiative
 UN provides humanitarian aid to herders
 PM hopes to build pipelines into ger districts with Good Homes program
 Bat-Uul requests MNT90 bn to finance relocation of ger dwellers
 Planners map out Ikh Gazriin Chuluu Nature Reserve
 Mongolia’s fragile environmental balance
 Dying steppe
 Winners and losers in Mongolia's mining gold rush
 Rio Tinto's former chief calls the bottom for commodities

Politics:
 Government tinkers with election rules, parties banned from polls
 Democrats absorb smaller parties for election campaigning
 President’s Office proposes blue cards for long-term residency
 Film industry incentives introduced to Parliament
 President nominates anti-corruption authority chief
 Deputy speaker, Narantuul boss seeking exit from MPRP, says Uyanga
 Mongolia ranks 60th in Press Freedom Index
 Mongolia makes the most of the middle position—EDITORIAL
 Mongolian neutrality and its significance for Russian security—EDITORIAL
BCM Updates:
 Announcements;
 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News;
 BCM in the University Classroom Series;
 Member-to-Member Special Offers & Benefits;
 Job Vacancies at Member Organizations;
 Websites Update - Presentations, Mongolia Reports, Interviews;
 Media Coverage & Social Networks.
Economic Indicators:
 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 MEETING RECAP

The BCM meeting on 2 May was held in the Diamond conference room in Blue Sky Tower and Hotel
was attended by about 80 members and invited guests with BCM's Chairman Bayanjargal
Byambasaikhan and Executive Director Chuluun Mergen as the evening's hosts. The event was
Mergen first in his new role as executive director, and he used the time to introduce his plans for
the organization under his new lead, including his thoughts on BCM today and ideas for making
improvements. Please read more from the BCM Report by clicking on this link.
Mergen also surprised now-resigned director Jim Dwyer with a framed depiction of eight horses
carrying nine masts. “It’s a symbol of hope,” said Mergen.
The evening's networking reception in the Topaz room was catered by Churchills.
BCM's four newest members are:
1. British School of UB – Established in 2010, the mission of the British School of Ulaanbaatar is to
provide its students with a learning environment and curriculum that meets international standards.
2. Matoza LLC – is a privately held company, founded in 2016, specialized in international
import/export, tourism, education and innovation.
3. Mera LLC – is a Mongolian national owned company, established in 2001, specialized in
manufacturing explosive products and providing drilling and blasting services.
4. Mongolia Quest LLC – established in 2012, Mongolia Quest designs custom tailored private
journeys for Mongolia and beyond to fit a unique travel style and interests of travelers.
1. Jennifer Galt, the U.S. ambassador to Mongolia, was the first speaker of the evening to discuss
the current dynamics of U.S.-Mongolia relations. She noted that the United States has had a long
history of trade, diplomacy and peacekeeping with Mongolia. “The United States deeply appreciates
the contiuance of Mongolia's superb peacekeepers around the world, and the invaluable role
Mongolia has played with coalition forces in Iraq and continues in Afghanistan,” she said.
Galt said the United States will continue to work with Mongolia for the implementation of the
Transparency Partnership, which would open the door to more cooperation between Mongolia and
U.S. businesses. “Our Transparency Partnership is a modest step, but its implementation would
send a strong signal that Mongolia is “Open for Business” as the PM says,” said Galt.
2. Jon Lyons, Global Green Growth Institutes's country representative for Mongolia and the business
development manager for Engie Mongolia, Thomas Papazov—whose companies both participate on
BCM's Energy Working Group—next each took turns to discuss the road Mongolia is taking to develop
its energy sector. “The energy intensity is so high in Mongolia per industrial output, wouldn't it be
great if we could take money being spent on energy and put it back in our pockets, or, better yet,
in growth?” asked Lyons.
Expanding on that question, Papazov discussed how Mongolia could make strategic decisions today
that could lead to the greater savings suggested by Lyons. Papazov said it could be done with
business partnerships for lasting savings. “The Energy Efficiency Law has passed, so what we really
hope is it will raise awareness that we shape a framework of efficiency, and also provide
incentives.”
“For us, it's the starting point for creating markets for energy efficiency solutions,” said Papazov.
3. M. Dagva, president of MPIGM and general director of QMC LLC, in his presentation introduced his
plans to create an umbrella organization that would draw together Mongolia's numerous professional
organizations to streamline the standardization process in the country. As Mongolia's economy
rapidly expands, many hope to cash in on the desire to enter the mining industry that drives growth
with dubious professional courses.
“Together the societies can go to universities and give our standards,” said Dagva. “Once those
unregulated programs become mature enough and competent for our threshold, we'd accept those
graduates as a member of our societies.”

The last presentation of the night was an invitation for Gold’s Gym General Manager B. Ochkhuu to
attend an open day for all member on 14 May. Ochkhuu also quizzed the audience on fun facts
about the world-renowned gym, where correct answers were awarded with prizes including a free
month’s membership.
BUSINESS
GATSUURT DEAL SET FOR FINALIZATION IN SPRINGS, SAYS MINING MINISTER
Centerra Gold Inc. will be able to close a deal for the Gatsuurt gold project before the end of
spring, said the mining minister in the prime minister’s regular weekly press conference.
Government is set to take a 34 percent stake in the mine and take in USD432.3 million a year over
nine years in taxes and fees paid from Gatsuurt. Mining Minister Rentsendoo Jigjid said he expected
the deal to be finalized soon during its quarterly press conference focused on increasing
transparency within the mining sector.
Source: Udriin Sonin
APPOINTMENTS MADE FOR MMC’S DEBT RESTRUCTURING
BNP Paribas and Industrial and Commercial Bank of China have appointed senior managing directors
of FTI Consulting as receivers and managers of all of the shares in the holding company for assets
owned by Mongolian Mining Corp. According to a 29 April statement from FTI Consulting, Rod
Sutton, John Batchelor and Kenneth Fung on 26 April were appointed to lead the restructuring of
debt following MMC’s default on $600 million corporate bond after failing to make a scheduled
payment last month. “The focus is to drive an offshore restructuring to ensure the ongoing long
term viability of MMC and its subsidiaries. In consultation with management, an urgent assessment
of the operations will be undertaken to determine the optimal financial and capital structure for
stakeholders."
The key operating entities of the MMC are unaffected by the appointment, reads the statement
Source: Mongolian Mining Corp.
SHELL LEAVES PETRO MATAD ON ITS OWN
Petro Matad Ltd. has lost its partner in the Block IV and V production sharing contracts in west and
central Mongolia, the petroleum explorer announced on 29 April. The AIM-traded company said that
on 28 April Shell—through its affiliate company—issued an exit notice to Petro Matad’s 100 percent
owned subsidiary Central Asian Petroleum Corp., exercising its option to leave the farm-out
agreement. “The decision by Shell is based on optimization of its own portfolio and it is not related
to the technical prospects for the blocks,” Petro Matad’s board said in a statement.
As required in the agreements, Shell’s affiliate company will compensate Central Asian Petroleum
Corporation as a result of the exit decision. Petro Matad said the amount will be “highly material”
to the company. Its working interest in the two production sharing contracts will revert to 100
percent from the current 22 percent.
Source: Digital Look
MONOS OPENS PHARMACEUTICALS PLANT
Monos Group has opened a new pharmaceuticals plant that will more than double the company’s
production of goods as it looks to compete with medicinal products commonly imported into the
country. The European Bank for Reconstruction and Development (EBRD), which has a focus on
lending to companies that can produce import-replacement goods and exports, has lent USD9.8
million to the plant’s construction. “The plant meets the WHO standard of GMP [Good
Manufacturing Practice],” said L. Khurelbaatar, president of Monos Group..
The company is also looking into ways to reach foreign markets, including Poland and Kazakhstan.
Source: Unuudur

KHOT TO RAISE $1 MN
Khot Infrastructure Holdings Ltd. has proposed a non-brokered private placement to raise up to
USD1 million to finance its expansion into rail and road construction. Khot plans to sell 10 million
units at a price of USD0.10 each where each unit includes a warrant entitling the holder to an
additional share at a price of USD0.20 in the following 12 months from the closing date. Khot's
licensed Mongolian subsidiary, Ashid Munkhliin Zam LLC (AMZ) has recently acquired licenses in rail
bed and road construction and expects approval shortly for power line construction licenses.
AMZ's joint venture with the Chinese construction group Sepco III is actively seeking road building
opportunities.
Source: Khot Infrastructure Holdings Ltd.
FRC SUSPENDS STANDARD INVESTMENT’S SPECIAL PERMIT FOR 3 MONTHS
The Financial Regulatory Commissioned has suspended permits held by Standard Investment UtsK
LLC, according to a 25 April statement from the government authority. [Source does not include the
types of permits suspended -ed]
Source: Cover Mongolia
KHAN BANK OFFERS 10% LOANS TO HERDERS
Khan Bank LLC has lowered the annual interest rate for loans to herder’s to 10 percent under the
state-backed Good Herder program. The government-initiated lending program is part of the the
Chimed Saikhanbileg cabinet’s strategy to support agricultural production and sales, as well as to
improve herder’s working and living conditions.
The program requires that borrowers have a active account with Khan Bank, pay into the state’s
health and social insurance funds, and have fully vaccinated livestock.
Source: Khan Bank
INVESTMENT TOWARD MONGOLIA IS IMPROVING, BUT DON'T EXPECT 'MINEGOLIA'
Xanadu Mines Ltd.’s chief executive Andrew Stewart used to need 15 hours to drive to his flagship
Kharmagtai exploration site in Mongolia's south Gobi desert. These days it takes the Australian
geologist just five hours, thanks to the paved road that now exists to service Rio Tinto Group's
nearby Oyu Tolgoi copper project. Such are the benefits of exploring for copper and gold in the
shadow of a multi billion-dollar mining operation.
That shadow could grow larger in coming days, amid growing speculation that Rio will shortly
confirm plans to spend close to USD5 billion expanding Oyu Tolgoi. Stewart will be happy to see the
expansion approved but says he doesn't expect a return to the feverish days of five years ago, when
Mongolia was lovingly termed "Mine-golia" and "Mon-coal-ia" by excited investors. Stewart's team
will drill 6,000 meters of exploration holes in 2016, and are hoping to find the final piece of the
Kharmagtai puzzle.
Source: Sydney Morning Herald
A FORUM FOR BUSINESS CROSSING FROM THE TUUL TO THE THAMES
The Mongolia-London Business forum held in London on 26 and 27 April brought together 120
participants interested in Mongolia investments. The first day’s events included speakers from both
stock exchanges, European Bank for Reconstruction and Development, Rio Tinto Group, and more. A
reception hosted by the British Parliament was held, in addition to a closing reception held at the
Edinburgh Castle in Scotland.
Source: News.mn
2016 CENTRAL ASIA-CAUCASUS FELLOWS ANNOUNCED BY RUMSFELD FOUNDATION
It is the Spring of 2016 and time for the Rumsfeld Foundation to announce their Central Asia-
Caucasus Fellowship Program participants, which this year includes Saijrakh Narantuguldur.
Narantuguldur, whose project is titled “Sustainable Economic Growth Strategy for Mongolia:

Development of the Financial Industry to Counter,” and the other fellows were brought to the
United States where they were tutored on how they can promote more dialogue to help strengthen
relations with the United States and the other countries of the area.
Some top policy makers, business leaders, journalists, academics, military personnel and other
experts from the region will learn how the decision making process works in the United States by
meeting with local business leaders and officials showing them how businesses really work outside
the capital fences. The countries in which people were chosen from this year are Afghanistan,
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan and Uzbekistan.
Source: Examiner
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, 1-WEEK BILLS
The Bank of Mongolia on 3 May sold CNY12.3 million (out of USD6.7 million and CNY40.8 million in
bids) to commercial banks in currency auctions for a closing exchange rate of MNT311.21. Also that
day, it accepted tugrug swaps with commercial banks for an equivalent of USD33 million.
On 4 May, the central bank issued one-week bills worth MNT10 billion at a weighted interest rate of
12 percent.
Source: Bank of Mongolia
MONGOL BANK CUTS POLICY RATE 1.5 POINTS
The Bank of Mongolia has cut the policy rate that sets interest in Mongolia to 10.5 percent, citing
falling inflation in the country. The bank’s monetary policy committee announced the rate cut on 5
May after reviewing a 1.7 percent decline in March for the consumers price index, which has fallen
below targets for the past nine months. “Both demand-driven and supply-shock inflationary
pressures are expected to be at low level throughout this year; therefore it shall positively affect
maintaining low and stable inflation,” reads a statement from the bank.
The central bank reported its expectation for a zero deficit in the balance of payments by the end
of the year, but it will come at the cost of cuts in budgetary spending.
Source: Bank of Mongolia
WORLD BANK SUGGESTS SPENDING CONTROLS TO CONTAIN RISING DEFICIT
A new World Bank Economic Brief suggests the need for measures to moderate the rapid rise in
government spending. The country’s budget deficit is widening rapidly due to a large revenue
shortfall and rising expenditures. The Mongolia Economic Brief released on 3 May said the country’s
budget deficit in the first three months reached two-thirds of the annual deficit target. Budget
revenue collections fell by 11 percent, compared with the same period last year, because of falling
mining export earnings, and sluggish economic activity. Meanwhile, capital spending nearly doubled
in the first three months of 2016, compared with the same period last year and overall expenditures
rose by 25 percent.
“Mongolia needs to strengthen its fiscal position now to remain within the sensible limits of the
Fiscal Stability Law,” said James Anderson, World Bank country manager for Mongolia. “Mongolia’s
long-term growth prospects remain strong, but its resilience is being tested by the deteriorating
external environment.”
Source: World Bank
S&P UPDATES SOVEREIGN RATING: AFFIRMED AT 'B/B'; OUTLOOK STABLE
Standard & Poor's Ratings Services affirmed its 'B' long-term and 'B' short-term sovereign credit
ratings on Mongolia on 28 April; the outlook is stable. Mongolia's economic outlook remains weak,
with Standard & Poor’s Investor Services’ projection for GDP growth averaging 4.6 percent over
2016-2019.
The stable outlook balances the country's low-income resource-driven economy, emerging policy

environment and fiscal performance, high external risk, and limited monetary flexibility with the
prospect that large mining projects could quickly reverse Mongolia's sovereign credit profile during
the next 12 months. Upward pressure could build on the rating if the development of the Oyu Tolgoi
and Tavan Tolgoi mines accelerates economic growth and improves fiscal and external
performances more than we currently expect. Downward pressure could emerge on the ratings if
Mongolia's external liquidity weakens markedly.
Source: Standard and Poor’s Ratings Services
INDIA’S EXIM BANK EXTENDS ITS SECOND LARGEST CREDIT OF $1 BN TO MONGOLIA
The Exim Bank of India has extended a line of credit (LoC) worth USD1 billion to Mongolia for
developing its railways and related infrastructure. This is the second largest Exim Bank credit line
to any country, the bank said in a statement, adding the agreement was signed on 28 April. This is
India’s second LoC to Mongolia, taking the total value of LoCs to USD1.02 billion.
With this LoC, the Exim Bank has in place 204 LoCs covering 63 countries in Africa, Asia, Latin
America, the Oceania and the CIS, totaling credit commitments of over USD 15.28 billion, available
for financing exports from the country. Under these LoCs, Exim Bank will reimburse 100 percent of
the contract value to the Indian exporters, upfront on the shipment of equipment and goods and
provision of services.
Source: Economic Times
MINERS STILL WAITING ON LOANS AIMED FOR GOLD PRODUCTION
Five mining companies in Mongolia are waiting on the government to push forward a state-backed
lending scheme to launch or grow operations. Government in 2015 announced that it would lend
MNT256billion to commercial banks for financing gold operations at 6% percent interest, but it
never provided the 50 percent guarantee on loans banks were looking for to launch the program.
Five companies have submitted applications for the loans.
Source: News.mn
GOVERNMENT TO SUBSIDIZE STUDENT LOANS
Students will become eligible for low-interest loans to pay for their education with a new
government initiative being led by the Ministry of Education. Education Minister L. Gantumur at
weekly press conference hosted by the prime minister said there were 200 schools where students
can receive the financial assistance. The government is also focusing on upgrading schools’
facilities, said Gantumur. The ministry has granted aid for computer labs, kindergartens,
dormitories and gymnasiums to schools. In April, projects launched at 427 schools.
Source: Montsame
HEALTHCARE WINS WITH HOSPITALS’ LIBERALIZATION, SAYS MP
Government’s stranglehold over hospital care in Mongolia is loosening, giving many hope that
improved healthcare is on the way. “Mongolians spend USD60 million a year for treatments abroad,
said MP S. Odontuya. “We need to decrease this by improving our hospitals,” she said.
Hospitals are set to receive great independence from government as well as new buildings and
equipment, said a senior health specialist with the Asian Development Bank, J. Altantuya. She said
government’s control of hospitals’ management was overreaching, and that the new law will give
hospitals authority to decide on who is included in management, procurements made and hospital
staff. Hospitals are also now able to keep any savings they make over the year rather than send it
back to government.
Source: Unuudur
GOVERNMENT PLANS TO SEND OUT EMERGENCY SUPPLY OF WHEAT SEEDS
Government is dipping into its reserves of wheat seeds to prevent another shortfall in production
this year. A drought last summer wiped out wheat crops last year, making it extremely difficult for
the country to meet its need for the crop this year. The crop disaster cut into the country’s

domestic supply for animal feed. That plus heavy snowfall and extreme cold this year country saw
hundreds of thousands livestock deaths.
Mongolia will need an estimated 48,000 tons of seeds for this year’s wheat production, with 35,500
already available in the market. Farmers, constrained by financial challenges from the declining
economy and last year’s disastrous harvest, imported just two tons, however. Two companies will
bring in another 6,000 tons from the Farming Support Foundation, and the government has 5,000
tons held in reserve.
Source: Montsame, Unuudur
TRANSIT HALL COMMISSIONED AT CHINGIS KHAAN AIRPORT
Chingis Khaan International Airport has commissioned a new transit hall and six parking areas for
planes as it preps for the what is expected to be the largest volume of air traffic ever seen in the
country for the Asia-Europe Summit in July. The meeting will bring hundreds of delegates from
around the world. The 2,000-square meter transit hall will boost the airport’s capacity for receiving
passengers to 1,200 per hour, said government officials.
The expansion should also facilitate the growth of regular air traffic to the country, said the
officials, as Mongolia is strategically for connecting flights to central Asia and Europe Asia and
Europe,
Source: Montsame
NEW INTERNATIONAL AIRPORT THREE-QUARTERS COMPLETE
The new international airport under construction at Khushig valley is three-quarter complete,
according to a government official when speaking to a visiting delegation from Japan. A Japanese
delegation of politicians headed by a member of Japan's lower house, Kazunori Tanaka, arrived in
Mongolia on 30 April to inspect the airport, which has been under construction for two years with
financing from the Japanese government. Seventy-six percent of the construction work has been
completed, officials said.
The airport is expected to be a key site for transit travel in the region, including Europe and North
America. A new bill with Parliament would take advantage of this opportunity by creating a free-
trade zone around the airport where visitors can do business, make purchases and possibly open a
casino.
Source: Montsame
AS CASHMERE OUTPUT QUALITY IMPROVES, EXPORT PRICE MIGHT GO UP
The heavy snowfall that many feared might turn to a type of natural disaster known as a “dzud” in
Mongolia has instead helped to improve cashmere quality this year. Cashmere prices on the
Agricultural Exchange grew month-on-month in April to MNT120,500 for light colored, combed
cashmere and MNT117,900 for dark cashmere of the same quality. The raw product known as greasy
cashmere sold for MNT61,000 and MNT59,8000 for a kilogram of the the light and dark-colored
cashmeres, respectively. Total trade turnover recorded on the exchange was MNT10.9 billion for 91
million tons of cashmere.
May is the peak month for the season.
Source: Montsame
TENS OF THOUSANDS WIN VAT LOTTERY
More than 90,000 Mongolian citizens have won a combined MNT3.8 billion in cash from a lottery
hosted by the government encouraging payment of value-added tax (VAT). Lottery numbers are
found on receipts where VAT was paid, encouraging consumers to make sure the tax is paid by
service providers. The Customs & Tax Information Technology Office (CTITO) reported that 94,689
citizens have won cash prizes from the nine lotteries held since its launch. The biggest payouts have
gone to six people who won MNT20 million each. Another 81 winners have taken in MNT4 million
each, while 90 percent of winners have won at least MNT20,000.
Source: Mongolia.GoGo.mn

GOVERNMENT LAUNCHES 4-YEAR CONSUMER RIGHTS INITIATIVE
A four-year national campaign promoting consumers rights will launch this year. The Cabinet
Secretariat on 2 May approved the campaign, which is aimed at protecting the rights of consumers
during this rapid period of growth while many may not know businesses should be expected of
providing to customers. The government plans to lead 20 actions to improve consumers’ knowledge
of what they are entitled to.
Source: Montsame
UN PROVIDES HUMANITARIAN AID TO HERDERS
The United Nations has released USD2.4 million in emergency grant aid to herders suffering from
this year’s natural disaster known as the “dzud.” The natural disaster is one herders regularly face
once or twice a decade where extreme cold and heavy precipitation lead to the mass deaths of
livestock. The Ministry of Food and Agriculture is dispersing USD800,000 of the aid for assistance to
agricultural workers around the country.
PM HOPES TO BUILD PIPELINES INTO GER DISTRICTS WITH GOOD HOMES PROGRAM
The prime minister plans to lead a new housing program called the “Good Homes” initiative to
relocate ger dwellers in the capital into formal apartment housing. The program will first target
69,200 households currently living in ger districts who are cut off from basic amenities such as heat
and plumbing, said Prime Minister Chimed Saikhanbileg at a weekly press conference. Those
families will have access to loans worth a total of up to MNT100 million to connect homes with city
infrastructure such as heat and plumbing. Loans each will carry five year repayment terms with
monthly payments of no more than MNT100,000. “Up to 50 percent of the debt can be resolved
jointly by the government and city with help of government funds,” said Saikhanbileg.
Saikhanbileg said the government plans to lend a total of MNT200 billion for the first round of
lending in Ulaanbaatar. Eventually the program will be expanded to provincial centers, he added.
Source: Montsame
BAT-UUL REQUESTS MNT90 BN TO FINANCE RELOCATION OF GER DWELLERS
Ulaanbaatar is requesting MNT90 billion from the central government to finance 5 percent
mortgages for housing projects under development in the city, officials said in a video conference.
A city-owned company for housing projected that the MNT90 billion would be needed to lend to
commercial banks, who will then in turn lend to prospective homeowners under the condition that
they be homes from select housing projects. The city would allot MNT23 billion for the first round
of lending to gauge interest before releasing the remaining MNT70 billion.
Ulaanbaatar has 24 locations where such housing projects are under way, although at least six have
reported dissatisfaction with conditions.
Source: Unuudur
PLANNERS MAP OUT IKH GAZRIIN CHULUU NATURE RESERVE
The Ministry of Environment and Green Development has divided the recently established Ikh
Gazriin Chuluu nature reserve into separate zones for protecting wildlife. The reserve, located
along the Baruun Saikhan and Orlog Mountains in Dundgobi Aimag were created amid efforts to
protect land while the government had begun issuing exploration licenses for the first time in years.
A special zone covering 8,776 hectares, or roughly 5 percent of the entire reserve, is home to
unique wild life and fauna. About 62 percent of the nature reserve has special restrictions from
human activity.
Source: Montsame
MONGOLIA’S FRAGILE ENVIRONMENTAL BALANCE
A fifth of Mongolian land has been earmarked for mining. Investors are so happy about this they

have given a new moniker to the world’s second-biggest landlocked country: “Minegolia.” Mining
has left water reserves overexploited, environmentalists say. While mining companies claim to use
separate, deep-underground saline water called “fossil water,” in reality many do not because it
requires deep drilling and large investment. According to a World Bank study in 2010, the southern
Gobi region only has sufficient groundwater for the next decade or so.
In an attempt to “offset” displacement and ecological damage, mining companies, and the
government, employ “broad and somewhat arbitrary parameters,” a 2014 study in the Journal of
Environmental Management found. Offsetting might be planting trees to replace ecosystems or
erecting a community building to replace generations of tradition; and the practice does “not
sufficiently consider real-world challenges in compensating losses in an effective and lasting
manner,” the report concludes.
Source: China Dialogue
DYING STEPPE
The Mongolian herder Gantumur, 51, has already lost 60 of his 100 goats and sheep after a fierce
winter that has taken a grim toll on the Mongolian steppe. The spectacular expanse of undulating
grassland has long sustained the country, but has come under threat from climate change and
overuse, which in recent years has killed huge numbers of animals and propelled a human exodus
from the land that is eroding one of the last nomadic cultures on Earth.
Across Mongolia, nearly 860,000 animals have already died from this year’s dzud, a weather
phenomenon in which a summer of drought is followed by a winter of cold and heavy snow. Today,
carcasses lie in dry gulches and dried-out watering holes, their exposed skin gleaming in the sun
after herders stripped hides to salvage some value. Many more animals died from large numbers of
miscarriages. And a half-decade after the last major dzud, some herders have recovered only a
fraction of their former herd sizes. Others have already quit. “They sort of give up. They don’t have
the mental or psychological power to continue herding livestock,” said the herder Ochirbat. “They
feel that ‘I can’t do it so I would rather go to the city.’”
Source: The Globe and Mail
WINNERS AND LOSERS IN MONGOLIA'S MINING GOLD RUSH
Armed with rudimentary tools, so-called “ninja” miners hollow out the steppe in search of
Mongolia’s most precious mineral resource: gold. And there are many of them; various studies claim
that up to 300,000 people, and the government estimates, about 100,000 Mongolians illegally mine
up to five tons of gold each year. "The main goal is to feed my family," said illegal miner Demidee.
"One gram is trading for MNT55,000, so even though the price varies according to the market, every
day we work we generally earn about MNT100,000."
Damdinragehaa is the president of a small association of artisanal miners, a type of organization the
government legalized at the end of 2013 to reduce the number of ninjas and allow people to legally
benefit from the exploitation of a national resource. He argues that ninjas present two problems:
environmental degradation and an economic loss for the country, "because they don't pay taxes and
sell the gold to Chinese middlemen." The organization has acquired more advanced digging
equipment and has been improving the working conditions of its members to professionalize the
industry.
Source: South China Morning Post
RIO TINTO'S FORMER CHIEF CALLS THE BOTTOM FOR COMMODITIES
Commodity markets are beyond the worst as demand in China shows signs of a recovery, according
to industry veteran Tom Albanese, chief executive officer of Vedanta Ltd. and a former head of Rio
Tinto Group. “I believe with what we’ve witnessed early in 2016 will be the trough for the
commodity markets,” Albanese said on a conference call after Vedanta reported quarterly earnings.
Commodities have rallied in April, with the Bloomberg Commodity Index heading for the biggest
monthly climb since 2010. The gains have been powered by signs growth in China is stabilizing, and
by a revival in oil as U.S. supplies drop. Albanese’s view is more bullish than that from Goldman

Sachs Group Inc., which said last week that there hadn’t yet been a sustainable shift in
fundamentals. It said in a note dated April 22 that while there were signs of a revival in raw
materials, it was premature to embrace these so-called green shoots.
Source: Bloomberg
POLITICS
GOVERNMENT TINKERS WITH ELECTION RULES, PARTIES BANNED FROM POLLS
The National Labor Party (KhUN) and Civil Will-Green Party have been boxed out of this year’s
election due to some technicalities. This year’s parliamentary elections will see more than 10
political parties back candidates campaigning to voters. This week following the 29 April deadline
for candidates to submit documents for permission to campaign in the election, the General
Election Commission ruled that KhUN and CW-GP submitted incomplete documents with signatures
from multiple party leaders. In the KhUN's case, said the committee, documents were stamped with
invalid markers.
Three campaign coalition has been formed, where some parties will combine forces to boost their
chances when voters hits the polls in June.
Source: News.mn, Montsame, Udriin Sonin, Unuudur, Mongolia.GoGo.mn
DEMOCRATS ABSORB SMALLER PARTIES FOR ELECTION CAMPAIGNING
Four minor parties have agreed to campaign alongside the Democratic Party for the 2016
parliamentary elections. Parties large and small are consolidating to boost their chances for success
when Mongolian voters hit the polls next month. The Democrat’s campaign plan will see Civil Will-
Green Party head Sanjaasuren Oyun and four other members will stand as Democrats for the
national election, in addition to three members for the Ulaanbaatar elections. The Mongolian
National Democratic Party’s N. Battsereg and M. Sonompil will campaign under the Democrats’ flag.
Source: News.mn
PRESIDENT’S OFFICE PROPOSES BLUE CARDS FOR LONG-TERM RESIDENCY
Foreign-born Mongolian nationals and immigrants will have access to long-term residency, according
to the president’s chief of staff. Mongolia has lost 60,000 citizens over the last two decades
because of restrictions that prevent Mongolians from holding to passports, including those born
abroad, relocated to a foreign country or married a foreign citizen. The president has proposed that
Mongolia begin issuing citizenship cards, or blue cards, that will allow foreign-designated citizens
long-term residency in the country but do not give citizenship. The cards will span five years before
expiring, with another 10 years available with successful renewal.
Worldwide, there may be 6,000 children with dual citizenship who under the current rules will have
to choose between a foreign passport or a Mongolian one once they turn of age.
Source: Udriin Sonin
FILM INDUSTRY INCENTIVES INTRODUCED TO PARLIAMENT
Mongolia’s small film industry could receive some government assistance to grow if a new bill is
passed. Assistance for the film industry is included in the government’s 2012-2016 action plan for
policy. The aim of the bill is for the export of films made in the country and promote the industry
with tax incentives, said MP R. Burmaa on 28 April when presenting the bill. Foreign investor would
receive a 40 percent tax return on their investments in film here.
Source: Montsame
PRESIDENT NOMINATES ANTI-CORRUPTION AUTHORITY CHIEF
President of Mongolia Tsakhia Elbegdorj has nominated Enkhjargal Khurelsukh as the next chief of
the Independent Authority against Corruption. Khurelsukh has a career in law enforcement,
particularly in investigative roles. The chief will have a term of six years in office.

DEPUTY SPEAKER, NARANTUUL BOSS SEEKING EXIT FROM MPRP, SAYS UYANGA
The owner of the Narantuul market who has a seat in Parliament and Deputy Parliament Speaker L.
Tsog may follow suit with fellow parliamentarians G. Uyanga and leave the Justice Coalition. The
coalition between the Mongolian People’s Revolutionary Party (MPRP) and the Mongolian National
Democratic Party (MNDP) makes up a minority leg of the government. “Deputy Parliamentary
Speaker L. Tsog and MPRP member Sh. Saikhansambuu proposed to leave the MPRP,” said Uyanga.
Source: News.mn
MONGOLIA RANKS 60TH IN PRESS FREEDOM INDEX
Mongolia fell six places from to 60th on the World Press Freedom Index (WPFI) for 2016. The index
published by by Reporters Without Borders on 20 April ranks 180 countries by a range of criteria
that include media pluralism and independence, and respect for the safety and freedom of
journalists. Mongolia last year scored 27.61 points.
The state media’s transformation from government mouthpieces to public services in recent years
and the creation of the first Media Council in February 2015 have improved the environment for the
media, said Reporters without Borders on its website. But still very imperfect media legislation,
which criminalizes defamation and encourages self-censorship, has weakened the virtuous circle
that has existed since 2014. Lawsuits against the media are on the rise and many websites have
been blocked. The government’s lack of transparency and susceptibility to criticism limit the
media’s ability to act as a watchdog, it says.
Source: Montsame
MONGOLIA MAKES THE MOST OF THE MIDDLE POSITION—EDITORIAL
Mongolia and Russia in April signed what they termed a Medium-term Strategic Partnership
Development Program in Ulaanbaatar to establish a strategic partnership between Mongolia and
Russia. Mongolia is an important component of Russia’s orientation toward Asia, and its interests in
Mongolia are primarily economic. But Moscow appears to be less interested in using Mongolia as an
economic link to broader Eurasian markets than China. Russia’s main priority is more tightly focused
on maintaining a privileged position in the Mongolian energy and mining sectors.
Mongolia’s principle of neutrality that it enacted in 2015 mostly relates to defense, while strategic
partnerships largely concern international trade and exchange. But the problem is Mongolia’s
dependence on China and Russia in the economic sphere. Viktor Samoylenko asserts that neutrality
is feasible only when a country is not overly dependent on external financing and investment.
Anothony V. Rinna is Russia and Eurasia Analyst at Sino-NK.
Source: East Asia Forum
MONGOLIAN NEUTRALITY AND ITS SIGNIFICANCE FOR RUSSIAN SECURITY—EDITORIAL
A neutral Mongolia could reduce Russia’s vulnerability along its eastern flank and eliminate
concerns of closer military relations between Mongolia and China. Mongolian president Tsakhia
Elbegdorj issued a communiqué in late 2015 regarding the debate among the country's political elite
on making Mongolia a neutral country. Currently it participates in military drills with both Russia
and the West. And although Mongolian foreign minister Lundeg Purevsuren insists that Mongolian
neutrality will not change the fundamental course of Mongolian foreign policy, it would halt the
prospects for integration into any one of the collective security organizations with which it is
involved.
Whether Russia sees the prospect of Mongolian neutrality as a loss or a benefit will depend largely
on whether Moscow hopes to eventually induce Ulaanbaatar to sacrifice its “third neighbor” policy
in favor of closer ties with Russia.
Anthony V. Rinna is a Russia and Eurasia analyst for the SinoNK scholarly research group, and a
Russia and East Asia analyst for the Global Research Center in Washington DC.
Source: Russia Direct

BCM UPDATES:
ANNOUNCEMENTS
NAMBC’S 26TH ANNUAL GENERAL MEETING & INVESTORS FORUM, MAY 17-19TH, OTTAWA,
CANADA
The North America-Mongolia Business Council (NAMBC) is organizing its 26th Annual General Meeting
(AGM) & Investors Forum on 17 to 19 May 2016 in Ottawa, Canada.
The AGM starts with an evening reception on Parliament Hill on 17 May and continues through a full
day of sessions on 18 May from 09:00 to 17:00 and includes lunch. Among the line-up of expert
speakers and panelists are Graham Shantz, Director General, North Asia, Global Affairs Canada; and
Chris Melville of Hogan Lovells Mongolia LLP, one of Mongolia’s leading international lawyers. Also
included is Tom Garrett, Vice President of the International Republican Institute (IRI), who will
share results from IRI’s pre-election polling and discuss combatting corruption.
NAMBC and BCM Members are eligible for an exclusive 20 percent discount. To register, fill out the
below form here and send it by email to hqinfo@nambc.org. Please fill out a separate form for each
delegate. Find the agenda for the event here.
EXCLUSIVE: GOLD'S GYM OPEN DAY FOR BCM MEMBERS & FAMILY, SATURDAY, MAY 14TH
Mongolia's first international fitness center, Gold's Gym, opened its doors early this year, via a soft-
launch. Gold's Gym is famous for its famous members, such as Arnold Schwarzenegger, Sylvester
"Rocky" Stallone, Jean-Claude Van Damme, and prides itself on driving real results for its members.
On Saturday, May 14th, BCM members will have opportunity to have exclusive look into the
operations with master fitness instructor GM Ochkhuu and his team, via a tour, group cycling and
fitness workouts as well. Thus, fun day is complimentary for BCM members, their spouses, and
children as well. Space is limited for first 50 people. For more information and to sign up, please
contact Dolgorsuren (Dogi) at dolgorsuren@bcmongolia.org and 89492828.
EXPO MONGOLIA – THE PLACE TO BE IN MAY 2016 FOR DOING BUSINESS!
A perfect time for international investors, associations and private companies to start business in
Mongolia and to play a key role in future development. Therefore Expo Mongolia, the international
trade fair in Buyant-Ukhaa Sport Complex, Ulaanbaatar, is the meeting place for all industries.
From 23–25 May in the Buyant-Ukhaa Sport complex, official pavilions and individual exhibitors are
warmly welcomed to the unique networking platform in the expanding eastern market to establish
business contacts and to present new innovations to trade professionals from Mongolia and
surrounding countries.
BCM members will have 10% discount on registration. Please contact saruul@bcmongolia.org to get a
special discount code. For more information please visit www.expomongolia.com.
Please contact us via e-mail: em@expomongolia.com. Tel: +976 94009471, +976 70009471
EXCLUSIVE: WORLD-CLASS ROCKEFELLER HABITS TRAINING COMING TO MONGOLIA, JUNE 8-
10TH, LIMITED SPACE; EARLY BIRD SAVINGS ENDING MAY 10TH
YPO Mongolia is opening up its internationally-recognized Rockefeller Habits Training, exclusively
for BCM Members only. Rockefeller Habits is one of the highest rated training programs in YPO and
is coming to Mongolia for the very first time. (YPO is the leading international organization for
business leaders with 24,000 members who are CEO's, founders, & owners of leadings businesses in
130 countries around the world). This 3-day intensive training will cover execution (meetings, 15
minutes to free up an hour, sharing your DNA, energizing your team, quarterly meetings, etc),
organizational structure (the biggest threat, accountabilities vs. processes, etc), people (best
practices for hiring, hottest senior positions, business units vs. functional units, matrix organization,
etc), and growth tools (accountabilities worksheet, one page strategic plan, Rockefeller Habits
checklist, KPI worksheet, cash conversion cycle worksheet, etc). Space is limited. Space left for
only 5 more companies. Please see brochure for detailed information by clicking here. For more

information, please directly contact YPO Mongolia administrator Tsolmon at info@ypomongolia.mn
and 99659309.
BCM ADVOCACY NOTES
Revisions to latest draft of Labor Law bill
Ministry of Labor has recently made revisions to the latest draft, particularly in areas of joint
agreement and annual leave. Currently, this draft is being reviewed and commented by other
Ministries. Labor Minister Bayarsaikhan.G reconfirmed his intentions to submit the draft for the
autumn Parliamentary session.
The latest draft can be found here.
BCM WORKING GROUP NEWS
Education Working Group
BCM's Education Working Group meeting was held on 5 May, Thursday from 16:00-18:00 at the
Executive Excellence International Business Center with 13 people attending.
The meeting started with an introduction of members and participants as well as opening remarks
from Saha Meyanathan, Chair of the Education WG.
Meeting agenda was on the following three items:
1. "Facilitated discussion on recommendations for the next Government to consider": Working group
members commented on recommendations related to the education sector to include into 1ST
Annual BCM Summit Proceedings, which is being finalized, and it was agreed to send the combined
recommendation by 6 May 2016
2. "Sustainable development goal and the private sector involvement": Private sector monitoring
and involvement on the actions to achieve the goals
3. "Proposal on Labor Market Survey for Higher Education Activities" by Independent Research
Institute of Mongolia /IRIM/
For more information about this meeting, please contact Bayarmaa@bcmongolia.org.
_________________________________________
Risk Working Group
BCM’s Risk Working Group’s meeting was held on Wednesday, 28 April at Suite 1201, 12th floor
Express Tower, with 10 members in attendance, representing Mandal General Insurance, MIG
Insurance, Xac bank, Wagner Asia, Deloitte Onch, Erdenes Tavan Tolgoi, American Center for
Mongolian Studies and Occupational safety and health management institute (OSHMI).
AGENDA OF THE MEETING:
- Introduction and Opening remarks by Working Group Co-Chairs (Risk WG Co-Chairs)
- "Occupational safety and health management institute of Mongolia" (Moiltmaa S., Executive
Director, Occupational Safety and Health Management Institute of Mongolia (OSHMI))
- “Assess and control the OSH Risks” (Lead Consultant and Auditor at OSHMI)
- "Workplace health and safety-Tips on handling risks, when medical help is not immediately
available” (Usukhbayar A., M.D., M.Sc, Health Insurance Director at Mandal General Insurance)
WG members were introduced to the OSHMI at large and its past activities and followed by
Battumur N., OSHMI Lead Consultant and Auditor updating the members of the current situation of
the risk management system at local companies. His opening slide made many of the members in
attendance question the existing risk management system at each of their organizations; and his
presentation ended with an interesting short clip on the dangers of not appropriately assessing
risks.
On second part of the WG meeting, Dr Usukhbayar gave away some important tips in handling office
based health and safety risks. His presentation was complimented by full demonstration of

cardiopulmonary resuscitation /CPR/ on a mannequin and checking of blood pressure of individual
WG members.
For more information about this meeting, please contact Khulangoo P., Working Group Coordinator
of BCM at khulangoo@bcmongolia.org.
_________________________________________
Energy & Environment Working Group
BCM’s Energy and Environment Working Group’s meeting was held on Tuesday, 26 April at meeting
room of Open Society Institute, with 13 members in attendance, representing GGGI, Engie
Mongolia, US Embassy, Xac bank, Wildlife Conservation Society, Techenomics, Nature Conservancy,
Mongolian Wind Energy Association, Institute of Energy Economics, and the newest addition to the
Working Group –EuroKhan. The meeting was organized under the theme of: “INNOVATION IN GREEN
TECHNOLOGY”
- Recap of the last meeting and introduction of new Co-Chair: Thomas Papazov, Engie Mongolia
(Energy and Environment WG Co-Chairs)
- Feature presentation: "Institute of Energy Economics-Who we are and our innovative approaches"
(Enkhtuvshin R., Institute of Energy Economics/IEE/)
- Feature presentation: "Green technology and innovation"
(Nyamdavaa G., Ministry of Environment, Green Development and Tourism/MoEGDT/)
- Facilitated discussion on business implications of green technology and innovation in Mongolia
Enkhtuvshin of IEE shared with the group institute’s recent studies and researches and projects for
possible partnership. Dr Nyamdavaa informed the group about the upcoming “Green Technology
Expo-2016” and action plan implemented by the MoEGDT. Highlight of the meeting was the 303
Decree by the Government of Mongolia, which allows companies to be exempt from customs duty
when importing tools, equipment approved as environmentally sound and efficient. Please click
here to see the list.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
Legislative Working Group
BCM’s Legislative Working Group’s meeting was held on Thursday, April 14, 12th floor Express
Tower, with 13 members in attendance, representing Minter Ellison, Hogan Lovells, Oyu Tolgoi, ELC
Law Office, Newcom, PATC (Professional Accounting and Tax Consulting) and MCS.
Agenda of the meeting:
16:00-16:10 Opening remarks and introduction of plan for 2016 - Legislative WG Co-Chairs
16:10-16:40 Overview and update of recent changes to the draft labor law - Sebastian Rosholt,
Minter Ellison
16:40-17:10 Proposed tax legislation revision - Anthony Woolley, Hogan Lovells
17:10-17:30 Issues in VAT law and the CIT draft law - Munkhtur T, Director of Business
Development, MCS
Meeting began with BCM’s Executive Director Jim Dwyer’s introduction of the newly appointed Co-
Chairs of the Legislative Working Group: Sebastian Rosholt of Minter Ellison and Anthony Woolley of
Hogan Lovells. Jim extended his gratitude to both gentlemen for volunteering as Co-Chairs.
Sebastian’s presentation focused on the changes in the February to March drafts of the Labor Law,
highlighting the positive developments especially on the annual leave days and the negative
developments that were added into since the December draft. Sebastian also emphasized that some
of the negative developments from the employer’s perspective presented in his presentation were
the provisions originated from the December draft.
Anthony gave a comprehensive overview of the tax regime of Mongolia up to the current draft of
the Corporate Income Tax (CIT) law. The CIT Law draft was scheduled for discussion at the
Budgetary Standing Committee on 11 April, but was postponed. The presentation covered changes
in the threshold of the standard tax rates, affiliated parties, tax returns, tax exemptions and cross
referrals to other legislation.
Munkhtur from MCS shared with the group specific risks project developers see in the current

proposed CIT Law. Main concerns are in regards to the VAT on the purchased PPE, works performed
by non-residents and the tax levied on sales of securities.
Bayar, Managing Partner, ELC Law Office, suggested that these concerns from the businesses could
be further explored with BCM’s Tax WG and advocated immediately. WG Co-Chairs agreed to the
suggestion and assured the group that after a consultation with Tax WG chair and key members, a
statement by the BCM’s Legislative WG will be issued.
It was agreed that the recommendations on the CIT law will be incorporated in the 1st Annual BCM
Summit Proceedings for further advocacy.
Coordinator of BCM, at khulangoo@bcmongolia.org.
_________________________________________
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Tuesday, 5 April at Suite 1201, 12th
floor Express Tower, with 15 members in attendance, representing OT, BDSec, Khan Bank, Golomt
Bank, TDB, XacBank, Mongolia Growth Group, Ernst & Young Mongolia Audit, Nova Terra, Wagner
Asia Equipment LLC and Mahoney Liotta.
Agenda of the meeting:
16:00-16:10 Opening remarks and re-cap from last meeting
(Capital Markets WG Co-Chairs)
16:10-16:50 Guest speaker: "Oyu Tolgoi Project Financing"
(Dorjpalam Kh., Senior Advisor Corporate Finance, OT LLC)
16:50-17:10 Member time: Update on Custodian Banking
(Ariunjargal Ch., Head of Custody Services Dept., Khan Bank)
Nick Cousyn, Co-Chair of the Capital Markets Working Group, provided a recap of the last meeting
to the members and updated the members on the latest market news of the Government of
Mongolia’s coming into the market twice with Credit Suisse syndicated loans.
Ms. Dorjpalam Kh, Senior Advisor Corporate Finance of OT LLC, gave a comprehensive overview of
the Oyu Tolgoi Project Financing. The presentation covered key topics: the significant benefits to
Mongolia, list of project financing participants, financing plan with its tranches and key financing
terms. Participants were mostly interested in knowing the drawdown of the financing and how the
financing schedule is tied to the technical certification of the underground development.
Ms. Ariunjargal Ch., Head of Custody Services Department at Khan Bank, updated the members on
the engagement with Financial Regulatory Commission (FRC) on the issue of Custodian Banking
Services, in particularly failed trade management and establishment of the market infrastructure at
Mongolian Stock Exchange through Millennium IT. Due to the re-organization at the FRC, its
Chairwoman’s resignation to run for office in the parliament, regulations required for the failed
trade management have not been finalized at the Government level. On the recent FRC Working
Group tasked on the custodian banking issue, brokerage firms and commercial banks have clarified
impending issues on the T+1 and T+2 settlement issue.
During the discussion period, BCM reminded the members of the 1st Annual BCM Summit scheduled
on 21 April and encouraged members to send up to 3 issues and challenges faced by the business
and sector in relation to the regulatory environment and related recommendations on those issues
that need to be addressed by the political parties and the next government.
Coordinator of BCM atkhulangoo@bcmongolia.org.
_________________________________________
Tax Working Group
BCM’s Tax Working Group’s 2016 kick-off meeting was held on Wednesday, 2 March at Suite 101,
12th floor Express Tower, with 16 members in attendance, representing Oyu Tolgoi, PwC, Deloitte
Onch Audit, Sumitomo Corporation Mongolia office, International SOS, WCS, MahoneyLiotta, Lehman
Lee & Xu and PATC.

Agenda of the meeting: 16:00 - 16:10 Opening remarks (Chair, Tsendmaa Choijamts, PwC) 16:10 -
17:00 Introducing new VAT law (Altankhorol O, Senior state tax inspector, Revenue department of
the General Department of Customs and Taxation) 17:00-17:30 Q&A session and discussion on TWG
plans for 2016 (Members, state tax inspector)
Ms. Altankhorol, General Department of Customs and Taxation of Mongolia, reviewed the newly
adopted Value-Added Tax (VAT) law of Mongolia, which took effect on 1 January 2016. The
presentation covered key policy changes, changes in the other related regulations and frequently
asked questions from businesses. Members in attendance were interested in the procedural changes
in the new VAT law, such as the registration and de-registration as a VAT payer, VAT-exempt goods
and services and VAT zero-rated goods and services.
Ms. Tsendmaa Ch, Tax Executive Director of PwC Mongolia, shared with the members Tax Working
Group’s draft plan for 2016. As Chair of Tax Working Group, MS Tsendmaa, informed the members
of the intent of engaging representatives from the government entities to the WG meetings in order
to learn more about legal and procedural changes and to exchange expert views with
representatives from government bodies.
Next meeting is scheduled for May. For more information about this meeting, please contact
Khulangoo Purevjav, Working Group Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Business Ethics Working Group
Business Ethics Working Group meeting was held on 1 March at Express Tower from 16:00 to 17:30
with 12 members in attendance representing Atlas Copco, Transparency International, Mandal
General Insurance, US Embassy, Wagner Asia, Deloitte Onch Audit, Asia Foundation, Valliant Art and
Interiors, World Vision and the Institute of Finance and Economics.
Agenda of the meeting: - Introduction of members and guests (Anders Berglund, Atlas Copco) -
Recap from the last meeting (Christine Hudetz, TI Mongolia) - Insurance sector transparency (Zaya
Bolorbold, Mandal Insurance) - Discussion on topics and plan for 2016 (Christine Hudetz, TI
Mongolia).
The meeting begun with recap of the last meeting: development of the draft plan for 2016 and
collective agreement on the need to reach-out for more local companies as members of the
Working Group. Given the delicacy of the issues the WG intends to cover at its meetings and the
subsequent low interest from BCM members to sign-up for this WG, nonetheless members have
agreed to continue with its meetings and aim to draw more attention from local companies.
Ms. Zaya, Mandal Insurance, presented an overview of the insurance industry and Mandal fight
against kickbacks and the adverse effects of kick-back culture within the industry. Attendees were
highly impressed with Mandal’s meticulous top-down approach against kick-backs, from its
philosophy to its hiring procedure. During the discussion time on plan for 2016, Wagner Asia has
volunteered for a presentation in November and Asia Foundation offered to share its study findings
on corruption in Mongolia.
Co-Chair reminded the members of the next meeting topic item: Gift giving policy on Tuesday, first
week of May. For more information about this event, please contact Khulangoo Purevjav, Working
Group Coordinator of BCM at khulangoo@bcmongolia.org.
‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES
‘BCM in the University Classroom’ is expanding to high schools!
We are pleased to share that Amartuvshin Sh, CEO of Axel Fischer Academy, spoke at American
School of Ulaanbaatar (ASU) on 12 April 2016. Mr. Amartuvshin's speech entitled "New Season" was
targeted for staff at the ASU, to empower them with a new sense of purpose and motivate them
further in their service in the education sector. We thank ASU for hosting us and making it available
during spring break. BCM extends gratitude to Amartuvshin Sh for taking the lead in our first ever
"BCM in the high-school classroom" lecture initiative.

Please be checking our posts on "BCM in the University Classroom" series, as interesting presenters
are lined up this month!
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 4 May facilitated by Ch. Mergen, Executive
Director of BCM on the topic "Optimizing Costs and Managing in Downturn". The total of 24 people
representing 18 BCM member companies attended the session. During the session Mergen covered
about cost driven price policy; expense monitoring of experienced and growing businesses;
eliminating cost units and shared practical tips for managing your business in downturn, such as
focusing and strengthening your advantages, skills to leave old things behind, facing the reality,
balancing stability with change etc. The session was organized in a very interactive and engaged
manner. At the end of the session Mergen offered the participants "The Daily Drucker" book by
Peter F. Drucker at discounted rate. Translation of this book into Mongolian was Mergen's last two
years' work.
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- American University of Mongolia is offering BCM members a 20% discount on all of ELI Summer
Courses.
- Matoza LLC is offering 15% special discount to BCM members on Intensive Business English
Language Course in Poland with a Sightseeing Trip.
- Churchills if offering 10% discount for BCM members on their "Food Safety & HACCP Risk
Management System" course to be organized on 17-19 May, 2016
- The British School of Ulaanbaatar offers the following discounts to BCM members:
- Corporate packages for sending children to BSU;
- 20% off for private or company use of the Indoor and outdoor sports complex, swimming pool and
conference room
- Oxford Business Group (OBG) offers BCM members and the 1st Annual BCM Summit participants a
complimentary read-only, online subscription to all of OBG’s digital reports
- Axel Fischer Academy offers 20% discount to BCM members on “Equipping your rising star Leaders”
in a three months training
- PROSUM LLC offers 10% discount to BCM members on promotional products they distribute from 15
European producers
- Corporate Governance Development Center (CGDC) offers 20% discount on all of its trainings to
BCM members
- News.mn offers 20% discount of its products and services for BCM members
- Mongolian Economy offers 50% discount for its advertisements & paid articles on website and 55%
subscription discount on its online magazine for BCM members
- NPC&Mandal offers 20% discount to BCM members on its professional services.
- Birches Group offers 10% discount on Mongolia Compensation and Benefits Survey for BCM
members
- New Media offers 25-50% discounts to BCM members on its online accounting software, E-
commerce platform, web & mobile application development and job searching software.
For more information about announcements and discounts, click here or contact Otgongerel,
Partnership Manager at otgongerel@bcmongolia.org.
JOB VACANCIES AT MEMBER ORGANIZATIONS
- Oyu Tolgoi invites applications for a scholarship for Masters Degree study at the Curtin University,

Perth, Australia in the fields of mechanical engineering and/or electrical engineering commencing
in July 2016. Deadline for Application: May 20, 2016. For more information: contact: (976) - 7010-
3604
- American School of Ulaanbaatar is hiring a part time physical education teacher and program
assistant. For more information: contact: enkhzaya@asu.edu.mn, 99123887
- PWC is hiring an administrative assistant. Deadline for Application: May 06 2016.
For more information about vacancies, click here. To post your vacancy on BCM website, contact
Dolgorsuren at dolgorsuren@bcmongolia.org.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
PRESENTATIONS:
BCM Monthly Meeting, 2 May:
- Ch. Mergen, Executive Director, BCM – “BCM updates”
- Jon Lyons, Country Representative Mongolia, GGGI & Thomas Papazov, Business Development
Manager, Engie Mongolia – “Energy Efficiency – Business opportunities for Energy Services”
- M. Dagva, President of MPIGM & General Director of QMC LLC - "Self-Regulation Initiative of
Mongolian Mining Industry"
- B. Ochkhuu, General Manager, Gold’s Gym – “BCM Open Day at Gold’s Gym” May 14, 2016
__________________________________________
1st Annual BCM Summit Presentations:
- B. Byambasaikhan, CEO, Erdenes Mongol – “Strategic Transformation”
- Anders Berglund, General Director, Atlas Copco Mongolia – “Technology in cost effective mining”
- N. Munkhnasan, General Director, Monpolymet – “Mongolia’s Cement Sector”
- David Rohanna, Managing Partner, APIAG Mongolia –“Issues and Solutions for Investment in Natural
Resources”
- Matthew Pottle, Managing Partner, PricewaterhouseCoopers - “Global Perspectives on Risk
Management during Economic Slow Down”
- B.Enkhtuya, COO, Golomt Bank –“Behavioral-Based Human Resource to Improve Productivity”
- B. Ulziibayar, CEO, Ard Capital Group –“MSE and Capital Markets”
- Randolph Koppa, Executive Vice Chairman, TDB –“Macroeconomic Issues amid Global Trends”
- Ch. Khashchuluun, Executive Director, National Council of Private Sector Support –“Innovation in
Mongolia”
- Ms. M. Suvdmaa, International Affairs Manager, Precom –“Meat Industry Reform”
- A. Usukhbayar, Health Insurance Director, Mandal General Insurance –“Private Health Insurance –
Can be a prospective leverage to improve healthcare industry in Mongolia”
- S.J. (Steve) Potter, Executive Director, WAGNER ASIA Group of Companies –“Implementing an
effective CSR Program: Case Study: The WAGNER ASIA Group of Companies”
- B. Enerel, Head of Investments, UB Development Corporation –“UB City Projects”
- L. Sumati, Director, Sant Maral Foundation –“Election Highlights”
- Cameron McRae, Founding President, Institute of National Strategy –“Macro view of the
Government since 2012”
_________________________________________
BCM Monthly Meeting, 28 March:
- Steve Rose, General Manager, Cummins Mongolia Investment - "Cummins supporting Mongolian
customers"
- Barrie Evans, Director, Churchill's - "Their life in your hands"
- P. Tsagaan, Chief of Staff, Office of the President - "Update on ASEM"
_________________________________________

BCM Monthly Meeting, 22 February:
- A. Baatarpurev, Director of Markets Development Department, Financial Regulatory Commission -
"Financial Market Developments in Mongolia"
- Jennifer Bielman, Country Director, MercyCorps Mongolia - "Mercy Corps: Building Resilience in
Mongolia"
- D. Uuriintuya, Chairman, Mineral Resources Authority of Mongolia - "Mongolian Events during PDAC
2016 in Toronto"
- N. Munkhnasan, General Director, Monpolyment - "Overview of Monpolyment"
_________________________________________
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”
_________________________________________
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)
_________________________________________
INTERVIEWS:
- Interview with Garrett Wilson, Wagner Asia AutomotiveExecutive Director, Bloomberg TV, 21 April
2016
- Interview with Dr.Khashchuluun Ch., at the 1st Annual BCMSummit, Bloomberg TV, 21 April 2016
- The First Annual BCM Summit news coverage by Bloomberg TV,21 April 2016
- "The Business community will deliver its recommendations and messages to the Government"VIP76
website coverage at the 1st Annual BCM Summit, 21 April 2016
- "Companies that estimate their risks realisticallycan escape from the crisis" VIP76 website
coverage at the 1st Annual BCMSummit, 21 April 2016
- "The World wants Mongolia" VIP 76 websitecoverage at the 1st Annual BCM Summit, 21 April 2016
- "Investors deal with issues with no emotion"coverage by VIP76 website, 21 April 2016
- "The First Annual BCM Summit panel discussions ongoing" coverage by VIP76 website, 21 April 2016
- "S.Oyun, Parliament Members gave lecture to students of University of Humanities within "BCM in
University Classroom"series" coverage by VIP76 website, 19 April 2016
- Jim Dwyer, Executive Director, 30 March 2016, BCM interview to Mongolian National Broadcasting
TV
- VIP76 website, March 2016, “BCM Monthly meeting coverage”
- Jim Dwyer, Executive Director, BCM, Bloomberg TV, 27 January 2016, "Business community calls
for political stability
_________________________________________
WEBSITE:
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.
MEDIA COVERAGE
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."
Elisabeth Ellis, a partner at Minter Ellison LLP was featured in November 2015 edition in the article
titled "In Order to Make the Labor Law More Effective."
_________________________________________
BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.
From January 2013 to April 2016 we posted a total of 112 news items related to BCM activities,
economic and business related updates.
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 12,290 fans on our Facebook fans page, 1,995 connections on LinkedIn
network, and 2,086 followers on Twitter.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
March 31, 2016 *1.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.1% y-o-y; 3.1% Core - Ulaanbaatar City, March 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 – May 5, 2016
Currency
US dollar USD 2,009.41
Euro EUR 2,279.17
Japanese yen JPY 18.57
British pound GBP 2,927.81
Hong Kong dollar HKD 259.06
Chinese Yuan CNY 310.25
Russian Ruble RUB 30.82
South Korean won KRW 1.77

Bcm news wire issue 426

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Bcm news wire issue 426