NW430

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 430 – June 3, 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:
 Oyu Tolgoi receives $4.4 bn investment
 30 local companies Khanbogd Soum subcontracted for OT
 Civil Aviation Authority responds to Astana complaint
 MIAT to launch direct flights to Frankfurt
 MNCCI partners with stock exchange to promote public offerings
 Kincora to raise USD2million from private placement
 Erdene announces $500,000 private placement
 Mongolian jerkies and sausages win medals in Frankfurt
 Film association to honor Mongolian films for 2016
 Khan Bank grants scholarships to 70 students
 U.S. comedian to perform in UB
 When 63 Porsches Defied Mongolia's -36°F Cold, Drifting on Ice
 Centerra Gold seeks international arbitration for dispute with Kyrgyzstan
Economy:
 Mongol Bank: currency auctions
 China begins construction of first unified railway with Mongolia
 Coal exports recover as prices stabilize, but wides deficit still in sight
 Number of mining businesses up 6.17%
 Russia signs off on Egiin Gold hydro plant
 ASEM hotels receive MNT121 BN in loans
 Swiss Development to donate CHF2.2 mn for vocational training
 FAO raises a glass and proposes a toast
 Chinese factory jobs are disappearing—copper pays the price
 Whose money lies abroad?—EDITORIAL
Politics:
 Enkhbayar ends hunger strike to protest ban from elections
 U.S. congressman inquires about Enkhbayar
 Civil Will Green Party allowed in election
 Ganbaatar joins United Union of Patriots, stands as independent
 Bill to give Development Bank’s board greater oversight
 Parliament to vote on USD1 bn credit from India
 Mongolia to expand number of courts, but not judges
 Political parties announce their candidates

2.  MP Amarjargal steps aside to give another woman a change to run
 Oyun steps down as president of U.N. Environmental Assembly
 U.S Secretary of State to visit Mongolia
 Mongolia and Japan agree for worker exchange
 Foreign Minister calls for regional security in Japan conference
 U.S. professor awarded Polar Star Order
 Woman stopped at border with yak meat and Mongolian cheese
 UB to close kiosks without permission
 Catholics in Mongolia look forward to ordination of first-ever native priest
 Mongolia’s mangled politics – EDITORIAL
BCM Updates:
 Announcements
 New Mongolian Laws
 Knowledge Sharing Sessions
 Advocacy Notes
 Working Groups News
 Member-to-Member Special Offers & Benefits
 Job Vacancies at Member Organizations
 Websites Update - Presentations, Mongolia Reports, Interviews
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
BUSINESS
OYU TOLGOI RECEIVES $4.4 BN INVESTMENT
European Bank for Reconstruction and Development’s (EBRD) and International Finance Corp. has
confirmed the release of USD4.4 billion to the mining unit for the Oyu Tolgoi copper-gold mine.

3. EBRD has transferred USD1.2 billion, the country director, Matthieu Le Blan, confirmed to Mongolia
Metals Y Mining. IFC’s Nguyen Tuyen has also confirmed the full transfer of the funds as of 25 May.
Source: News.mn
30 LOCAL COMPANIES KHANBOGD SOUM SUBCONTRACTED FOR OT
The Oyu Tolgoi copper-gold mine has hired a total workforce of 3,000 Mongolian contract workers as
it moves forward with the development of the underground expansion. The nearby town of
Khanbogd has 300 companies operating their compared with 90 in 2013. “Oyu Tolgoi is a big project
and it needs big land,” said local city councilor B. Ochir-Erdene. “We gave land to local companies
and asked Oyu Tolgoi to cooperate on this land joining local and OT's domestic and foreign
subcontractors.”
“Oyu Tolgoi has relations with 1,500 companies of which 140 are from Umnugobi aimag,” said
Ochir-Erdene.
Source: Udriin Sonin
CIVIL AVIATION AUTHORITY RESPONDS TO ASTANA COMPLAINT
Mongolia’s governing body over air traffic has attempted to clarify its decision to deny Kazakstan’s
Air Astana permission to direct routes between Astana and Ulaanbaatar, saying the airline failed to
complete safety and clerical steps. “Air Astana was indeed appointed as the airline entitled to
conduct non-stop flights on the route Astana-Ulaanbaatar in 2015,” said the Civil Aviation Authority
(CAA) in a statement, but the process did not go forward after the airline failed to attain an
operator’s certificate from the airline authority.
Air Astana last week reported that all of its permits had been withdrawn after already selling
tickets, and that the Mongolian agency had not accepted any of its attempts to engage to resolve
the issue. “We regret that Air Astana has taken the matter on wrong accounts by publicly accusing
the [CAA] of revoking a permit, despite not taking the full steps to acquire the certified safety
approval along with appropriate permissions for landing slot and tariffs.”
Source: Aviation Pros
MIAT TO LAUNCH DIRECT FLIGHTS TO FRANKFURT
MIAT Mongolian Airlines will launch direct flights to European cities beginning with Germany in late
June. Flights will run seasonally around peak tourism period from June to September. It will also
pick up the frequency of direct flights for destinations such as Seoul, Beijing and Moscow.
The state-owned airline also has plans for direct flights to the United States, according to an
unnamed source.
Source: Montsame
MNCCI PARTNERS WITH STOCK EXCHANGE TO PROMOTE PUBLIC OFFERINGS
The Mongolia Stock Exchange (MSE) has opened a partnership with the Mongolian National Chamber
of Commerce and Industry (MNCCI) in the hopes of attracting more companies to list on the local
bourse. B. Lkhagavajav, chief of MNCCI’s Management council, and MSE Executive Director M. Bolor
signed a cooperation agreement to work together on encouraging companies to issue public
offerings for equity and debt on the Ulaanbaatar-based stock exchange where national companies
have raised up to MNT100 billion
Source: Zuunii Medee
KINCORA TO RAISE USD2MILLION FROM PRIVATE PLACEMENT
Kincora Copper Ltd. plans to raise up to USD2 million through a proposed non-brokered private
placement for the merger of two Kincora subsidiaries controlled by polarizing investor Robert
Friedland. Kincora is adding to its existing Tourmaline and Bronze Fox licenses a whole swathe of
ground held by Ibex, a private vehicle ultimately controlled by the famous mining entrepreneur
Robert Friedland, who opened up Mongolia with the development of what is now one of the world’s
largest copper mines at Oyu Tolgoi.

4. Kincora will issue about 5.3 million shares at USD0.375 each, it said in a 2 June statement.
Kincora has also received commitment from its largest shareholder, Origo Partners PLC, to convert
a USD2 million convertible note outstanding into equity on the same terms as the private
placement, resulting in Kincora having a debt free balance sheet and funds raised from the non-
brokered private placement being used to advance the Company's exploration and consolidation
strategy in the Southern Gobi copper-gold belt.
Source: Kincora Copper Ltd., Proactive Investors
ERDENE ANNOUNCES $500,000 PRIVATE PLACEMENT
Erdene Resource Development Corp. will sell USD500,000 of equity in a non-brokered private places
to Teck Resources Ltd. The placement for 1.06 million shares will fulfill Teck's annual equity
investment obligation pursuant to the Strategic Alliance between Erdene and Teck and is expected
to close on or before 15 June 15.
Erdene entered the alliance with Teck in April 2013, and was formed by the signing of option and
private placement agreements to fund and carry out mineral exploration in the trans-Altai region of
southwest Mongolia. Under the terms of the agreement, Teck has the option to subscribe for shares
of Erdene, priced at the then current market plus 10 percent, until it has invested USD3 million or
acquired through subscriptions 19.9 percent of the outstanding shares of Erdene, whichever occurs
first.
Source: Erdene Resource Development Corp.
MONGOLIAN JERKIES AND SAUSAGES WIN MEDALS IN FRANKFURT
Makh Impex Ltd. has won an award in Frankfurt, Germany for its meat jerky and smoked sausage
products. An international trade fair held in Frankfurt, Germany recognized recognized the
company’s 70-year history for its Nuudel brand jerky and Deedes smoked sausages.
Source: Montsame
FILM ASSOCIATION TO HONOR MONGOLIAN FILMS FOR 2016
Mongolia’s national academy for film making will holds an award ceremony on 3 June to honor this
year’s greatest achievements in filmmaking. Mongolian National Motion Picture Academy has
nominated 17 films for the sixth annual awards ceremony to be held at the Ikh Tenger Complex on 3
June.
Past winners for “Best Picture” include the film Zurlug in 2011, Mind Thief in 2012, Aravt in 2013
and Urgeeleg in 2014.
Source: Mongolia.GoGo.mn
KHAN BANK GRANTS SCHOLARSHIPS TO 70 STUDENTS
Khan Bank LLC has awarded 70 scholarships to students for the 2016-2017 academic years, the bank
reported on 31 May. More than 1,200 students submitted applications for this year's scholarship,
which were reviewed in a three-stage process by the foundation's selection panel. The selection
criterion was based on a student's academic and athletic performance over last three years, grade
point average (GPA), financial resources, and active involvement in social activities, and the
selection panel consisted of representatives from Khan Bank, government agencies, educational
organizations, and citizens.
Source: Montsame
U.S. COMEDIAN TO PERFORM IN UB
An American comedian is making a stop in Ulaanbaatar during his world comedy tour. Matt Davis
will appear live at Revo Bar and Venue on 23 June. From Birmingham Alabama, Davis first took the
stage at 17 years old. This July he kicks off a year-long global tour.
Source: Mongolia.GoGo.mn
WHEN 63 PORSCHES DEFIED MONGOLIA'S -36°F COLD, DRIFTING ON ICE

5. As most go-fast automakers out there, Porsche has strengthened its customer driving tuition efforts
over the last few years and the results are nothing short of spectacular. The most recent example
of this comes from the automaker's Snow Force even in Mongolia, which saw no less than 63
Porsches going all out in the frozen land of Yakeshi.
Source: Auto Evolution
CENTERRA GOLD SEEKS INTERNATIONAL ARBITRATION FOR DISPUTE WITH KYRGYZSTAN
Canada's Centerra Gold has taken its dispute with Kyrgyzstan over the firm’s vast Kumtor gold mine
to international arbitration, following the Central Asian country’s string of penalties and fees the
firm considers to be without merit. Centerra’s move comes as a local court hit its subsidiary,
Kumtor Operating Company, with a USD10,000 fine, following a lawsuit from an environmental
safety regulator. Another court ordered the firm last week to pay almost USD100 million in fees
related to their mine waste.
Kumtor, Kyrgyzstan's largest gold mine, has been a source of political tension in the impoverished
country. For more than two years the Central Asian nation and the gold miner have been locked in a
bitter dispute over Kumtor's structuring. Centerra once suggested a 50-50 joint venture, but former
prime minister Joomart Otorbayev said last year that such deal would not be in the country's
interests. Rumors pointing to an imminent nationalization of the mine quickly spread out after that,
but were later denied by Kyrgyzstan authorities.
Source: Mining.com
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS
The Bank of Mongolia on 2 June rejected bids of USD1.8 million and CN2 million at a currency
auction. That day, it accepted commercial banks’ tugrik swap agreement offers for an equivalent of
USD99.2 million and USD10 million in dollar swaps.
Source: Bank of Mongolia
CHINA BEGINS CONSTRUCTION OF FIRST UNIFIED RAILWAY WITH MONGOLIA
China has begun the construction of the first unified standard railway with Mongolia, official media
reported today. The rail line will pass through Ceke, the second largest port of entry between China
and Mongolia. It will be 1,435 millimeters in width, the standard gauge in China, state-run Xinhua
news agency reported. The Mongolian standard gauge is 1,520 millimeters in width, which causes
extra costs for cargo trains traveling between the two countries.
The rail line is expected to help Ceke port become the biggest port of entry between China and
Mongolia, with annual cargo throughput of more than 30 million tonnes. The port started seasonal
operations in 1992 and officially opened in 2009.
Source: India Today
COAL EXPORTS RECOVER AS PRICES STABILIZE, BUT WIDES DEFICIT STILL IN SIGHT
Earnings from coal exports have risen more than a quarter in the first four months of 2016
compared with the same period last year as prices stabilize. Mongolia exported 7.4 million tons of
coal during the period, or 30.6 percent more from last year, the Mineral Resources Authority
reported. The Mining Ministry’s head of fuel policy, L. Radnaasuren, pointed to increased exports
from the East Tsankhi block of the state-owned Tavan Tolgoi coking coal mine, which the country is
delivering as repayment of a USD350 million loan from Chinese state-owned Aluminum Corp. of
China (Chalco). “There are many reasons of increased demand including lower coal reserve at
Chinese ports,” he said.
However, the budget will likely fall into heavy deficit as Mongolia has project a price of USD50 to
USD70 per ton of coal sold compared with the current price of USD34. Authorities are planning for
the export of 19.5 million tons of coal in 2016. “The coal price did not go down much since start of

6. 2016 and we think this is a sign of recovery,” said Radnaasuren.
Source: Udriin Sonin
NUMBER OF MINING BUSINESSES UP 6.17%
The number of companies in the mining sector grew by more than half last year from three years
ago, according to Labor Minister G. Bayarsaikhan. Bayarsaikhan in an address to an annual labor
conference said the number of new companies related to the mining sector was up 61.7 percent in
2015 compared with 2012.
Source: Unuudur
RUSSIA SIGNS OFF ON EGIIN GOLD HYDRO PLANT
Mongolia and Russia have signed an agreement to go forward with the controversial Egiin Gol hydro-
power plant. Environmental groups and Russian leaders such as Vladimir Putin have spoke out
against the project because of the impact it would have on water levels at Lake Baikal, which the
dammed rivers feed into. D. Odkhuu, the leader of River Eg Hydropower Plant Project unit, found
favor from Russia China and the World Bank in negotiations for the project after 23 years of debate.
The project unit launched last year and has completed a feasibility study and environmental impact
assessment.
Source: Undesnii Shuudan, Montsame
ASEM HOTELS RECEIVE MNT121 BN IN LOANS
Mongolia is lending MNT121 billion to hotels looking to upgrade or expand their facilities for the
upcoming Asia-Europe Meeting (ASEM) summit to be held in Ulaanbaatar next month. Mongolia has
selected 40 hotels to accommodate the guests from the ASEM delegations, with about half receiving
loans, according to a staff member for the task force leading the efforts, T. Tegshjargal. The main
events and meetings will be held at the Shangri-La Hotel, Blue Sky Hotel and Best Western Tuushin
Hotel. Seven hotels will be dedicated to the 1,000 journalists expected to arrive in the country.
"These are commercial loans,” he said, adding that interest and repayment terms varied.
Shangri-La has booked 280 delegates from 24 countries, Best Western Tuushin has booked 190
delegates from 16 countries and Blue Sky Hotel has booked 180 from seven countries.
Source: Mongolia.GoGo.mn
SWISS DEVELOPMENT TO DONATE CHF2.2 MN FOR VOCATIONAL TRAINING
A swiss aid group is directing CHF2.2 million toward vocational training for young people throughout
the country. The Swiss Development Corporation this year launched the second phase of its
vocational training project in western Mongolia. Germany’s GFA will provide assistance in the
training to support the work training for young people in Bayan-Ulgii, Uvs, Khuvd, Gobi-Altai,
Zavkhan, Bayankhongor, Umnugobi, Darkhan Uul, and parts of Ulaanbaatar.
Source: Zuunii Medee
FAO RAISES A GLASS AND PROPOSES A TOAST
The United Nation’s Food and Agriculture Organization (FAO) is working closely with operators in
Asian-Pacific countries such as Mongolia to tap into a growing market and direct economic growth
that can improve livelihoods. This year was Mongolia’s first to celebrate the international holiday as
Asia witnesses remarkable growth in the production and consumption of dairy products. By the end
of 2015, the Asia-Pacific region as a whole had achieved the Millennium Development Goal of
cutting hunger and malnutrition statistics in half over the past quarter-century. “The wide range of
vitamins and amino acids present in milk are important building blocks for cells, bones, and
muscles,” the assistant director-general and regional representative of the FAO, Kundhavi Kadiresan
in an article
“Improving the ability of smallholders to organize themselves and attain greater bargaining power
in the market place must be a core element of our work as we move forward,” he said.

7. Source: Montsame
CHINESE FACTORY JOBS ARE DISAPPEARING—COPPER PAYS THE PRICE
The copper price fell again on 1 June and was then down more than 10 percent over the past month
as the economic news out of number-one consumer China continues to rattle investors. After a
strong first quarter, the Caixin manufacturing purchasing managers' index (PMI) for May fell back for
the second month in a row to 49.2. While the reading was only marginally lower than April, base
metal bulls were hoping for a continued recovery. A reading below 50 indicates weakening
operating conditions and the index has now been stuck below neutral territory for fifteen months
straight. May's reading was hurt by a drop in new orders and export contracts, pricing and most
worryingly the rate of factory job losses in May were close to a post-global financial crisis record.
China, the world's second largest economy, is responsible for 46 percent of total global copper
demand of some 22 million tons and it consumes nearly all of Mongolia’s copper.
Source: Mining.com
WHOSE MONEY LIES ABROAD?—EDITORIAL
The “Panama Papers” have revealed the names of people linked to offshore accounts from all over
the world. Among the forty Mongolian names were former premier Sukhbaatar Batbold; the former
Minister of Construction and Urban Development and sitting MP D. Tsogtbaatar; two daughters of
former prime minister S. Bayar; and the Ulaanbaatar Mayor Erdene Bat-Uul’s son, B. Chuluudai.
Without outright calling these figures out and demanding punishment, President Tsakhia Elbegdorj
on social media asked for accountability.
Offshore finance came into use in the 1950s when approximately 60 countries began allowing clients
to register businesses and open accounts with little to no tax. Former McKinsey & Co. economist
James Henry told The Guardian that approximately USD20 trillion has been stashed away at these
tax havens. Opinions are divided amid discussion of how these accounts can be used for tax
avoidance and hiding illegally obtained cash. It probably impossible to abolish offshore financing, so
the focus should be on collecting tax.
Jargalsaikhan “DeFacto” Dambadarjaa is an independent economist and host of the television show
Interview DeFacto and the radio program Radio DeFacto
Source: Mongolia.GoGo.mn
POLITICS
ENKHBAYAR ENDS HUNGER STRIKE PROTESTING BAN FROM ELECTIONS
Former president and prime minister Nambar Enkhbayar, who was found guilty of corruption in
2012, on 28 May called off another hunger strike he began in protest from his exclusion from the
parliamentary elections in June. The Mongolian People’s Revolutionary Party (MPRP) chief is a
polarizing figure that is often times found at the top of polls in terms of popularity, but has been
banned from holding office since being convicted of illegally selling government-owned property for
his own profit.
Enkhbayar has argued that he should be allowed to run for office because of the presidential pardon
he received in 2012, but officials from the Independent Agency Against Corruption stepped in to say
otherwise after the MPRP announced his candidacy on 27 May. Also banned from the political
contest was MPRP Deputy Chairman E. Erdenjamyan. “People know that the sentences of N.
Enkhbayar and E. Erdenejamyan have expired, and even involved the law on pardon,” said MPRP
Secretary Natsag Udval.
Source: News.mn, 2, Zuunii Medee
U.S. CONGRESSMAN INQUIRES ABOUT ENKHBAYAR
A new bill for how to punish crimes would allow politicians convicted of graft, such as former
president Nambar Enkhbayar, to stand for candidacy in elections, according to Parliament Speaker

8. Zandaakhuu Enkhbold in a letter to a U.S. congressman. Police officials have asked that Enkhbayar
be barred from running in the election in 2016 because of his 2012 conviction of a corruption crime
where he profited from the sale of state-owned property. In a letter from U.S. House
Representative Jim McDermott of Chicago, Illinois, Enkhbold said that a bill to go for a vote in
September would remove the restrictions that prevent Enkhbayar and others like him from running
for public office. “It is wrong to limit the right of vote or to be elected by a paper of the police
chief since MPs are elected directly by the people even,” said Enkhbold.
McDermott said he decided to reach out to Enkhbold to inquire about the situation after learning
about his hunger strike.
Source: Zuunii Medee
CIVIL WILL GREEN PARTY ALLOWED IN ELECTION
The Supreme Court has ruled to allow the Civil Will-Green Party to host candidates for the 2016
parliamentary elections, a court has ruled. CW-GP Chairman Ts. Gankhuyag won a civil suit against
the General Election Committee representing the party where he claimed that the committee was
wrong not to prohibit them from the race. The committee ruled that the party should not allow to
back candidates for this year’s election on 29 June because of problems with the paperwork it
submitted.
Source: News.mn
GANBAATAR JOINS UNITED UNION OF PATRIOTS, STANDS AS INDEPENDENT
Sainkhuu Ganbaatar will run for office in this year’s election as an independent in the fallout of the
National Labor Party’s (HUN’s) rejection from the race in June. Ganbaatar joined HUN earlier this
year and was appointed as chairman, but was forced to ally with another group when the General
Election Committee rejected it from backing candidates because of problems with the paperwork it
submitted. After that decision, as well as a public battle over HUN’s leadership, Ganbaatar turned
to United Party of Patriots as his home base. However, he has listed his candidacy without any
party’s backing.
Ganbaatar will run for office representing the 43 District for Darkhan Uul.
Source: News.mn
BILL TO GIVE DEVELOPMENT BANK’S BOARD GREATER OVERSIGHT
The Development Bank of Mongolia will have greater freedoms over its own finances if a new bill
from the Ministry of Finance is passed. The bank would have the ability to share equity to private
institutions as well as bolster governance with greater oversight from the board of directors, said
Finance Minister B. Bolor on 29 May. The new regulations would bolster the country’s ability to
execute so-called “mega projects” that direct great investment to mining, industrial production and
general infrastructure.
Source: Montsame
PARLIAMENT TO VOTE ON USD1 BN CREDIT FROM INDIA
Parliament has received a bill for a final vote on the USD1 billion worth of aid from India to finance
infrastructure projects. Indian Prime Minister Narendra Modi first proposed the credit line last year
during a state visit to Mongolia. The loan includes a 20-year repayment period, with no payments
for the first five years, and 1.75 percent annual interest, said Finance Minister B. Bolor.
Source: Montsame
MONGOLIA TO EXPAND NUMBER OF COURTS, BUT NOT JUDGES
Mongolia will open 15 new courts throughout the country this year but without expanding the
number of judges. A new board for the General Court Council has been appointed that plans to
spend MNT2.5 billion on the new judicial centers, said the council’s executive secretary, T.
Mendsaikhan. The plan is to have a total of 26 appeals courts and 15 preliminary courts throughout
the country, in addition to 16 courts for the capital.

9. Source: Udriin Sonin
POLITICAL PARTIES ANNOUNCE THEIR CANDIDATES
Political parties announced their candidates on 24 May. Parties were set to a quota requiring 20
percent of all candidates be female. The list comprised a colorful range of professions, including a
singer, a wrestler, a poet, a pharmacist and a judo-wrestler.
Olympics medalist Naidan Tuvshinbayar announced his candidacy with the Democratic Party for
Bayankhongor Aimag. Tuvshinbayar announced his campaign on Facebook, saying he has the full
backing of another former athlete and representative for Bayankhongor, Khaltmaa Battulga, and D.
Ganbat. Tuvshinbayar was born in Bulgan aimag, but only one seat is allowed for that province and
is already filled by a Democratic incumbent.
Visit the Source for the full list of candidates.
Source: News.mn, Mongolia.GoGo.mn
MP AMARJARGAL STEPS ASIDE TO GIVE ANOTHER WOMAN A CHANCE TO RUN
Sitting parliamentarian R. Amarjgal (Democrat) has offered up his seat so that a woman candidate
may run for office. Amarjargal announced his offer on 25 May. The Election Law requires that at
least 15 female candidates stand for election for the 76 seats in Parliament, although only five have
been registered on the Democrats’ side.
Source: News.mn
OYUN STEPS DOWN AS PRESIDENT OF U.N. ENVIRONMENTAL ASSEMBLY
Mongolian parliamentarian and former Environment and Green Development Minister Sanjaasuren
Oyun has stepped down as president of the U.N. Environmental Assembly (UNEA). Oyu announced
her succession to Costa Rican Minister of Environment and Energy Edgar Gutierrez Espeleta at the
Second Meeting of the UNEA in Nairobi Kenya last week.
Source: Montsame
U.S. SECRETARY OF STATE TO VISIT MONGOLIA
U.S. Secretary of State John Kerry will pay an official visit to Mongolia on 5 June. Kerry will travel
to France and Mongolia next week before visiting China amid tense regional ties, State Department
Spokesperson John Kirby said in a statement Monday. In Mongolia, he will pay a courtesy call on
state and meet with representatives of Mongolian youth.
Kerry’s 5 to 7 June visit to China for the eighth U.S.-China Strategic and Economic Dialogue comes
as Washington and Beijing are at odds over China's artificial islands in the South China Sea.
Source: Montsame
MONGOLIA AND JAPAN AGREE FOR WORKER EXCHANGE
Mongolia and Japan have signed a worker exchange agreement that to give Mongolia’s workforce a
chance at vocational training using Japanese technology and equipment. Parliament Speaker
Zandaakhuu Enkhbold and Japanese Premier Shinzo Abe on 2 June signed a cooperation agreement
between their country’s labor ministries for the worker exchange, which will focus on sending
Mongolia youths to Japan to learn how to operate Japanese machinery for industrial production.
Also signed was an agreement for the promotion of clean coal technology and research for coal
gasification.
Source: Montsame
FOREIGN MINISTER CALLS FOR REGIONAL SECURITY IN JAPAN CONFERENCE
Asia lacks a platform for dealing with common security threats, but Mongolia can be a "bridge
builder" that fills the void, Foreign Affairs Minister Lundeg Purevsuren said on 31 May in Tokyo. The
region has many unresolved issues, with "the last stronghold and division of the Cold War" on vivid
display on the Korean Peninsula, Purevsuren said. “The region lacks a mechanism or institution that
would unite all countries of the continent” in pursuit of closer cooperation and integration, said

10. Purevsuren.
Recognizing nuclear proliferation as a major threat, Mongolia already hosts the Ulaanbaatar
Dialogue—a forum for discussing Northeast Asian security, particularly ways to resolve the tensions
on the Korean Peninsula. The Forum of Asia, proposed by President Tsakhia Elbegdorj, would
expand on such frameworks to further multilateral cooperation. This would serve two broad goals:
to bring together all Asian countries to discuss common concerns and to promote security
cooperation.
Source: Nikkei Asian Review
U.S. PROFESSOR AWARDED POLAR STAR ORDER
A professor from a U.S. university has been honored with Mongolia’s highest honor available to
foreign citizens for her contributions to the study of animal husbandry on the steppe and the
preservation of natural resources. The president’s chief advisor, P. Tsagaan, awarded the Polar Star
Order to Maria Fernandez-Gimenez of Colorado State University by order of President Tsakhia
Elbegdorj. She is a professor in forests, rangeland and watershed stewardship at the the university
whose research interests include both ecological and social dimensions of wild land ecosystems,
focusing primarily on rangelands.
Her recent research has focused on understanding and evaluating the ecological and social
outcomes of community-based management of rangelands and forests. She has looked closely at the
roles of different types of knowledge and collaborative adaptive management.
Source: Montsame
WOMAN STOPPED AT BORDER WITH YAK MEAT AND MONGOLIAN CHEESE
A Mongolian woman was stopped from entering New Zealand after yak meat and homemade
Mongolian cheese was found on her. The woman arrived at Auckland Airport last week. She did not
speak any English but was carrying a note from her daughter saying she was bringing food from
home. The food turned out to be yak meat wrapped in tinfoil. Security also found homemade
Mongolian cheese in her luggage. “The food could have been harboring a number of devastating
animal diseases,” said said Ministry of Primary Industries Auckland Airport manager Dave Sims.
"Mongolian livestock has been afflicted by foot-and-mouth disease. This is a disease we definitely
don't want in New Zealand. It has the potential to wipe some $16 billion from the New Zealand
economy."
Source: New Zealand Herald
UB TO CLOSE KIOSKS WITHOUT PERMISSION
Kiosks illegally operating near the Ulaanbaatar Library will be shut down, the governor for
Ulaanbaatar’s Sukhbaatar District has announced. City officials have ordered the closure of these
small shops for the upcoming Asia-Europe Meeting to be held in July.
Source: Zuunii Medee
CATHOLICS IN MONGOLIA LOOK FORWARD TO ORDINATION OF FIRST-EVER NATIVE PRIEST
The little Catholic community of Mongolia—about 1,000 strong—awaits the ordination of the first
native priest in August. Deacon Joseph Enkh will be ordained on 28 August 28 by Bishop Wenceslao
Padilla, the apostolci prefect of Ulaanbaatar. He received his training in South Korea, and was
ordained to the diaconate there in December 2014. Returning then to Mongolia, he has been visiting
country's six parishes—which to date have been served exclusively by foreign missionary priests.
Source: CatholicCulture.org
MONGOLIA'S MANGLED POLITICS—EDITORIAL
Given how unhappy Mongolians are with their current government, which they consider inept and
corrupt, it would seem that there would be more excitement surrounding the country’s
parliamentary elections on 29 June 29. But much of the country has shown little confidence in any
of Mongolia’s 11 parties to choose from.

11. Much of the disenchantment stems from the country’s tumultuous transition to democracy. In the
early 1990s, the Soviet Union fell and Mongolia sought help in transitioning to a democratic
capitalist system from the Asian Development Bank, the International Monetary Fund, and
developed-nation partners. The West prescribed “shock therapy,” a popular course at the time,
which involved immediate privatization, minimizing the government, prohibiting subsidies,
balancing the budget, and liberalizing prices and trade, alongside cutbacks on social, educational,
and medical expenditures. The sudden and immediate implementation of the program initially
triggered massive inflation, unemployment, and poverty. Corruption exacerbated the country’s
difficulties.
Morris Rossabi is a distinguished professor of history at Queens College at the City University of
New York and adjunct professor of inner-Asian history at Columbia University.
Source: Foreign Affairs
BCM UPDATES:
ANNOUNCEMENT
"WINE AND ORGANIC MONGOL CHEESE" EVENT, 7 JUNE, 17:30-19:00, MEXIKHAN RESTAURANT
Co-Organizer: Mexikhan Restaurant (at the Regency Residence) and MACU (Mongolian Artisan
Cheesemakers Union LLC).
Wine Sponsor: MSM
Famous chef Eddie will unveil his brand new "Amarbayasgalant Mountain Cheese". So join us to taste
wine paired with cheese, plus mingle and network!
RSVP to saruul@bcmongolia.org
BCM members - 30.000mnt, Non-members - 40.000mnt
BCM’S BUSINESS ETHICS WORKING GROUP MEETING, 7 JUNE 2016
Business Ethics Working Group meeting will be held on 7 June 2016 from 16:00 to 17:30 at the UNDP
Office for Mongolia. Gerelmaa Dagvaa, Public Engagement Specialist of World Vision will present
Corporate Social Responsibility (CSR) case studies and Anders Berglund, General Director of Atlas
Copco will present gift-giving policies with group exercise on a template provided by Atlas Copco.
To join this meeting or for more information, please contact bayarmaa@bcmongolia.org by 6 June
2016.
NEW MONGOLIAN LAWS
Date Laws
25.05.2016 Law on Hospital aid, service
Amendments to Law on Mental health
Addendum to Law on Budget
Amendments to Law on State and local property
Amendments to Law on Health
Law on Regulation to follow law on hospital aid, service
Law on Regulation to follow Criminal code
Amendments to Law on Court establishment
Amendments to Law on Court of Mongolia
Amendments to Law on Settlement of civil case at court
Amendments to Law on Criminal Procedure
Amendments to Law on Settlement of administrative case at court
Law on Regulation to follow law on amendments to law on court establishment
Please click here to view the laws as well as amendments and addenda to/of laws published in the

12. latest weekly Government Bulletins. Unless otherwise decided by Parliament, it will take effect ten
(10) days after publication.
BCM KNOWLEDGE SHARING SESSIONS
"EQUIPMENT MANAGEMENT TECHNOLOGY SOLUTIONS FOR SAVING COSTS", JUNE 15TH, 16.00-
18.00PM, AT WAGNER ASIA AUTOMOTIVE.
BCM will host a knowledge sharing session targeting a audience interested in mining and other
sectors that use heavy machinery; including construction, road, transportation etc. The event will
be facilitated by E. Munkhdelger, Wagner Asia Technology LLC.
BCM ADVOCACY NOTES
"BCM Workshop & Advocacy Efforts on the New Corporate Income Tax (CIT) Draft Law"
As a follow-up action on BCM's position paper on the draft Corporate Income Tax law, on 24 May meeting was
held with MP Amarjargal Rinchinnyam, who led the Working Group established at the Parliament to oversee the
drafting of the draft legislation. With other private sector representatives present at the meeting, BCM
has shared the concerns identified in the position paper. Read more…
BCM WORKING GROUP NEWS
- Energy & Environment Working Group Meeting on “ENERGY EFFICIENCY INITIATIVES”, 26 May 2016
- Education Working Group Meeting on “BCM SSUMMIT PROCEEDINGS”, 5 May 2016
- Risk Working Group Meeting on “HEALTH and SAFETY”, 28 April 2016
- Legislative Working Group Meeting on “DRAFT LABOUR LAW”, 14 April 2016
- Capital Markets Working Group Meeting on “OYU TOLGOI UNDERGROUND PROJECT FINANCING”, 5
April 2016
- Tax Working Group Meeting on “VAT LAW”, 2 March 2016
- Business Ethics Working Group Meeting on “INSURANCE SECTOR TRANSPARENCY”, 1 March 2016
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- MNC HD TV offers BCM members 20% discount from the fee to be showcased in their “The Story of
Business/Бизнесийн түүх” TV program.
- 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.
Please click here to view full list of Member-to-Member special offers & Benefits.
JOB VACANCIES AT MEMBER ORGANIZATIONS
- Global Green Growth Institute is hiring Green Investment Specialist. Deadline for Application:
June 10, 2016. For more information: please click here
- World Bank is hiring Communications Officer: Deadline for Application: June 09, 2016. For more
information: please click here
- Canadian Embassy is hiring a Foreign policy and diplomacy officer. Deadline for application: 08
June 2016. For more information: contact: ulaan@international.gc.ca
- Khan Bank is hiring Database Administrator and System administrator. Deadline for application: 27

13. May 2016. For more information: contact at 11-332333
Please click here to view full list of Job Vacancies at member organizations.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
BCM Monthly Meeting, 30 May:
- B. Byambasaikhan, Chairman, BCM - “BCM Summit Proceedings”
- Ch. Mergen, Executive Director, BCM - "BCM Report"
- Anthony Woolley, Senior Associate, Hogan Lovells - “CIT Draft Law Update”
- D. Bat-Oktyabri, Director APAC, Techstars - “Start-up community in Mongolia”
- Michael Morrow, Executive Director, MACU & Ya. Enkhee, Owner & Partner at Gandan Live House,
Mexikhan & Guantanamera Restaurant - “It’s all about wine & cheese” event
- New Members Introduction
Please click here to view full list of Presentations.
MONGOLIA REPORTS:
- BTI, “Mongolia Country Report” 2016
- World Bank, “Doing Business: Economic Profile of Mongolia 2016"
Please click here to view full list of Reports.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [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]

14. 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 – JUNE 2, 2016
Currency
US dollar USD 1,988.95
Euro EUR 2,226.23
Japanese yen JPY 18.20
British pound GBP 2,871.25
Hong Kong dollar HKD 256.00
Chinese Yuan CNY 302.30
Russian Ruble RUB 29.69
South Korean won KRW 1.68