NewsWire

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 431 – June 10, 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 signs major contract for underground mine development
 Rio Tinto Copper: Oh Yes! Oh No, Mongolia
 UB Electricity Distribution trade union on strike
 CICG Acquires Gobi Minerals Group
 Airline to launch flights to Korea’s second-largest city
 Construction company begins building new UB administrative house
 UB mayor asks for UBTZ to help develop public transport
 Korean hospital brings bone marrow transplant surgery to Mongolia
 Invest Mongolia launches investors guide
 Mongoliin Medee to broadcast European football tournament live
 Top salon to design Team Mongolia’s Olympic kit
 MonAtom director to lead development at Erdenet
 TerraCom Appoints Camercan McRae as Chairman
 Erdene nominates former Canadian ambassador Anna Biolik to board
 Khan Bank Foundation releases new book in Braille
 Khan Bank named “Most active issuing bank” in Mongolia
 Centerra faces fresh criminal probe by Kyrgyz Republic
 Isabelle Kocher, Engie — a new kind of power
Economy:
 Mongol Bank: currency auctions; 1-week biils
 Saikhanbileg hikes pension payments
 Construction of China-Russia-Mongolia highway set to begin in August
 Land permits for Egiin Gol hydro-power station approved
 Mongolia-Japan EPA to boost trade
 Mongolia to introduce standards for Halal slaughter
 Italians increase investment in Mongolia
 Crop cultivation nears completion
 Health Ministry, World Bank launch E-Health project
 Mongolia seeks substation muscle
 Politics continue to hinder Mongolian coal
 A month before elections, Mongolia's economy is in shambles
 New road cleaning trucks deployed in UB

2. Politics:
 Parliament tallies in 12 laws passed in spring session
 498 candidates to stand for Parliamentary election
 MPRP head N. Enkhbayar`s wife nominated for 2016 election
 June 29 declared public holiday for election
 Candidates for UB city council announced
 Government mulls transparency policy strategy
 Foreign minister says Mongolia has learned hard lesson on resources
 In Mongolia, Kerry seeks closer ties with democracy 'oasis'
 Kerry warns on South China Sea during Mongolia visit
 Khan Quest soldiers attend ribbon-cutting ceremony for school dormitory
 Myanmar senior officials learn from Mongolia’s transition to democracy
 UNDP’s corruption risk assessment for mining
 Media groups sound off against restrictions for election coverage
 Inside Mongolia’s only gay bar
 Former advisor to Mongolian miner nominated as VP candidate in U.S. election
 Mongolia's cybersecurity cooperation—EDITORIAL
BCM Updates:
 Announcements
 New Mongolian Laws
 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
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Mongolian Business Database

3. BUSINESS
OYU TOLGOI SIGNS MAJOR CONTRACT FOR UNDERGROUND MINE DEVELOPMENT
Oyu Tolgoi LLC on 8 June announced the signing of a critical contract for the underground mine
development—another key step forward towards full ramp up of construction. Jacobs Engineering
Group, a provider of technical, professional and construction services, has been contracted to
provide engineering, procurement and construction management (EPCM) services for underground
development. Jacobs has already established a Mongolian business unit and will work with a local
workforce and partners to deliver the contract over the next five to seven years.
“Following the final notice to proceed for the underground development last month, this contract is
a critical piece as we ramp up towards full construction,” said Oyu Tolgoi Chief Development
Officer Marco Pires. “A project of the scale of the Oyu Tolgoi underground mine requires highly
specialist skills and Jacobs brings with it the experience and knowledge to complete the
development on-time, on-budget, and, most importantly, safely.”
Source: Oyu Tolgoi LLC
RIO TINTO COPPER: OH YES! OH NO, MONGOLIA
Miner Rio Tinto Group in May said it would spend USD5.3 billion to develop the Oyu Tolgoi copper
mine in Mongolia, but the expected returns are exaggerated, a study commissioned by AB shows.
AB, as Alliance Bernstein is now known, has an overweight rating on Rio Tinto. Analysts Paul Gait,
Marion Megel de Floris and Jonathan Absolon write that Rio scuttled the expansion three years ago
after a dispute with Mongolian authorities. The renewed project won’t boost volume until 2020, and
full production would come in 2027, but the analyst team disputed the project’s estimated 20
percent internal rate because of how challenging they expect the project can turn out.
“Thus there is cannibalisation of value by OT from the rest of Rio Tinto’s copper business (the
project will add 3.5% to global supply).Accordingly, the 20% IRR on the project given by Rio Tinto
will not be that actually experienced by shareholders in Rio Tinto.”
Source: Barron’s (Emerging Markets Daily)
UB ELECTRICITY DISTRIBUTION TRADE UNION ON STRIKE
Members of a trade union at Ulaanbaatar Electric Distribution Co. LLC have gone on strike in
response to the company’s failure to deliver on houses it promised to build for the employees. “At
this first stage of warning, we decided that ten of us are going to organize a silent seat protest
strike,” said the train union head, Munkhdorj. He said 30 percent down payments have already been
paid to the company commissioned for the construction of the homes, Bayasakh, but four years
have gone by without any results.
“We paid 30 percent in advance, as according to the contract,” he said. With our money they
should have built up to 70 percent of the housings. Unfortunately, the work of construction is
stopped right now. Directors of that construction company are hiding and not willing to see us.”
Source: Udriin Sonin
CICG ACQUIRES GOBI MINERALS GROUP
CIC Gold Ltd. has acquired 80 percent of issued share capital in Gobi Minerals. The deal came about
from a initial acquisition agreement for 70 million of the 280 million shares to be issued as
consideration for the acquisition.
Source: LSE
AIRLINE TO LAUNCH FLIGHTS TO KOREA’S SECOND-LARGEST CITY
The Mongolian airline company Air Busan plans to launch direct flights South Korea second largest
city from 24 June. The airline hopes to attract travelers with its economic flight to Busan, which
will run cheaper than competitors’ transport to Korea. It has also promised a one-way tickets for
just MNT99,000 (plus MNT100,000 tax) to the first 100 customers it passengers.

4. Source: News.mn
CONSTRUCTION COMPANY BEGINS BUILDING NEW UB ADMINISTRATIVE HOUSE
The Hungarian construction company relaunched development for Ulaanbaatar’s administrative
headquarters on 3 June after a delay put on by Mongolia’s slowing economy. The company has a
concession agreement for the new government building being build on 9.2 hectares of land in
Songino Khairkhan District.
Ulaanbaatar has agreed to repay Global Bridge three years for the construction after the project’s
completion.
Source: Udriin Sonin
UB MAYOR ASKS FOR UBTZ TO HELP DEVELOP PUBLIC TRANSPORT
Ulaanbaatar Mayor Erdene Bat-Uul has urged Russia’s investors in Ulaanbaatar Railways (UBTZ) to
move forward with a railway project for commute in and out of the city. Parliament has already
adopted a roadmap for the urban development of the city up until 2030, which includes the
construction of transport between the capital’s satellite districts. “It is a matter of concern to
connect these cities with Ulaanbaatar by rail,” said Bat-Uul in a meeting with a Russian delegation
led by UBTZ Deputy Director Alexander Ushakov.
Source: Montsame
KOREAN HOSPITAL BRINGS BONE MARROW TRANSPLANT SURGERY TO MONGOLIA
South Korea’s St. Mary’s Hospital will work with the First State Central Hospital to introduce bone
marrow transplants to the Mongolian health care system over the next five years. Seoul-based St.
Mary’s is run as a Catholic university hospital that is ranked first in Asia and fifth in the world for
the specialized procedure. The transplant requires modern-day technology and specific
methodology for success that St. Mary’s will help Mongolian doctors acquire. Doctors at the
Mongolian institution have already participated in two transplant procedures in 2011 and then in
2014, and 30 Mongolian healthcare providers have received training from St. Mary’s.
The procedure would cost between MNT25 million and MNT30 million, with some of the costs
reduced from the Law on High Cost Medicine and Medical Equipment passed by Parliament.
Source: News.mn
INVEST MONGOLIA LAUNCHES INVESTORS GUIDE
The Invest Mongolia Agency has launched a new investment guide online. The agency has posted the
guide on the theguides.org in partnership with the U.N. Conference on Trade and Development
(UNTCAD), and it includes information on taxes, rules and regulations and typical business costs.
UNCTAD has developed similar systems for Myanmar and Bhutan.
Source: Unuudur
MONGOLIIN MEDEE TO BROADCAST EUROPEAN FOOTBALL TOURNAMENT LIVE
The 2016 Union of European Football Associations (UEFA) will be televised by Mongoliin Medee, the
Mongolian television broadcaster announced on 6 June. The tournament will be held in France from
10 June to 10 Jule, matching 24 teams against one another.
Source: News.mn
TOP SALON TO DESIGN TEAM MONGOLIA’S OLYMPIC KIT
The Shilmel Zagvar fashion design house has been hired to outfit Mongolia’s Olympics team for the
Rio de 2016 Games. “Currently we are not allowed to publicize the color or the design,” said a
spokesperson. “We have not started making the outfits yet.
This is the second time the designer team has been hired to design and create a clothing for
Mongolia’s first impression at the Olympics game, with the first in London. Shilmel took the job
after Ariunaa Suri’s eponymous design team, which created the 2014 outfits for Sochi, Russia,
withdrew its bid for the project.

5. Source: News.mn
MONATOM DIRECTOR TO LEAD DEVELOPMENT AT ERDENET
Erdenet Mining Corp. has appointed MonAtom LLC Director E. Galbadral as its deputy director for
development affairs. Galbadral has work experiences in the mining industry and managing the
government agency covering uranium matters.
Source: Montsame
TERRACOM APPOINTS CAMERCAN MCRAE AS CHAIRMAN
TerraCom Ltd. has appointed Cameron McRae, former head of the Oyu Tolgoi copper mine and the
current director of the Institute for National Strategy, as chairman, it announced on 6 June. The
appointment is to facilitate the ongoing transformation of TerraCom into a global independent coal
miner and McRae will take an active and hands-on role in leading the company.
McRae has a 28-year career at Rio Tinto Group, holding executive level positions in five countries.
His career highlight to date was leading the establishment of the Oyu Tolgoi business—Mongolia’s
world class mega project in the Gobi Desert. The mine commenced construction in 2010 and the
USD6 billion project was commissioned ahead of schedule and moved to full production before
McRae left in October 2013.
Source: TerraCom Ltd.
ERDENE NOMINATES FORMER CANADIAN AMBASSADOR ANNA BIOLIK TO BOARD
Erdene Resource Development Corporation has nominated Dr. Anna Biolik, a member of the NAMBC
board of directors and Canada’s first resident ambassador to Mongolia. The nomination will be put
an election by the copper explorer’s board of directors. Biolik has over 30 years of public and
private sector experience and has served as ambassador of Canada to Kazakhstan, Kyrgyzstan and
Tajikistan as well as Consul General of Canada in St. Petersburg, Russia. She also served as Senior
Advisor for international relations and parliamentary affairs to the Governor General of Canada.
In 2012, Dr. Biolik retired from the federal public service. She is currently Vice President of Allam
Advisory Group, a global business strategy and commercial diplomacy consulting firm and on the
faculty of Royal Roads University in Victoria, British Columbia, Canada.
Source: NAMBC
KHAN BANK NAMED “MOST ACTIVE ISSUING BANK” IN MONGOLIA
The European Bank for Reconstruction and Development has named Khan Bank LLC the “Most Active
Issuing Bank” for a lending program it finances. Khan Bank joined EBRD’s Trade Facilitation Program
in 2007, giving it access to about USD300 million for lending to small businesses in Mongolia. The
program taps into the finances of 800 international lenders from around the world to seed start-ups
and small-scale business.
Source: Montsame
KHAN BANK FOUNDATION RELEASES NEW BOOK IN BRAILLE
A foundation run by Khan Bank LLC has published a new book in Braille entitled Exotic Animals and
Plants in light of the small amount of literature available for blind youth and the visually impaired.
There are about 23,000 citizens living with visual impairment in Mongolia, out of which 7,400 are
school-age children, but few books available in Braille. The new book published in Braille is one in a
series of books written by author N. Enkhtaivan and was gifted to 20 students from Special School
No.116 on Children’s Day.
The book has been published to include both Braille and ink content, making the text and
illustrations available to visually impaired children. The color images and Cyrillic text allow
teachers, students, and parents to read along with Braille readers.
Source: Khan Bank LLC

6. CENTERRA FACES FRESH CRIMINAL PROBE BY KYRGYZ REPUBLIC
Centerra Gold Inc. says its Kumtor subsidiary is the target of a fresh criminal investigation by the
Kyrgyz Republic and that several senior managers have been advised they won’t be allowed to leave
the central Asian country. The Toronto-based company didn’t disclose the identities of the
managers or their positions.
In a statement released Monday, Centerra Gold and Kumtor Gold said they “strongly dispute” that
any commercial transactions or any actions by their managers were improper. Centerra said in the
same statement that the environmental protection agency for the Kyrgyz Republic has alleged that
Kumtor owes an additional USD220 million in environmental pollution fees. Andrew Breichmanas, an
analyst for BMO Nesbitt Burns, suggested the Kyrgyz government is responding after Centerra gave
it a notice of arbitration in connection with various disputes relating to the Kumtor gold project,
including the environmental claims.
Source: The Star
ISABELLE KOCHER, ENGIE — A NEW KIND OF POWER
When she took the helm of Engie SA, the world’s biggest non state-owned electricity company in
May, Isabelle Kocher became the first Frenchwoman in the chief executive role at a company in
Paris’s CAC 40 stock market index. The company, which changed its name from GDF Suez last year,
sells electricity and natural gas to millions of homes around the world, employing 155,000 people in
70 countries, including Mongolia and is leading a consortium to develop Combined Heat and Power
Plant No. 5.
The world of energy is going through a “structural shift,” she says over coffee and croissants, with
demand for big, traditional hydrocarbon power plants falling sharply. At the same time, demand for
more decentralized renewable energy is soaring. The long-term shift towards renew¬ables is being
driven by growing awareness of climate change, she says. Engie, says Kocher, “simply has to adapt
to the new world order”.
Source: Financial Times
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS
The Bank of Mongolia on 7 June rejected bids of USD1.7 million and CN1.7 million at currency
auctions. That day, it accepted commercial banks’ tugrik swap agreement offers for an equivalent
of USD237.5 million. On 8 June, it issued MNT27 billion in one-week bills at a weighted interest of
10.5 percent.
Source: Bank of Mongolia
SAIKHANBILEG HIKES PENSION PAYMENTS
A small hike in pension payments was introduced on 1 June. The Chimed Saikhanbileg Cabinet has
ordered a MNT21,000 hike in pensions from the social insurance fund, brining average pensions to
MNT306,200.
Welfare payments special care was also raised, by around 10 percent.
Source: Zasag.mn
LAND PERMITS FOR EGIIN GOL HYDRO-POWER STATION APPROVED
Permits have been issued for the construction of the Egiin Gol hydro-power plant Bulgan Aimag.
Residents settled on 36,900 hectare of land at Khantai Bag, Khutag-Undur Soum are being relocated
for the construction of damns, reservoirs and other infrastructure for the facility. Those residents
will be compensated for their land and time for the move.
Source: Zasag.mn

7. MONGOLIA-JAPAN EPA TO BOOST TRADE
Mongolia’s economic pact with Japan took effect on 7 June, putting up to about 1,500 products for
trade between the country tax free. Mongolia signed the first Economic Partnership Agreement
(EPA) with Japan in 2015, followed by the passage of numerous amendments and laws by lawmakers
to comply. Taxes will be cut from 5,700 products from Mongolia to to Japan and 9,300 imported
goods from Japan.
Mongolia and Japan hope to boost trade from today’s annual turnover of USD300-500 million.
Source: Mongolia.GoGo.mn
MONGOLIA TO INTRODUCE STANDARDS FOR HALAL SLAUGHTER
More Mongolian meat can hit dinner plates at Muslim homes with the certifications handed out
companies for the processing of food to meet Islamic standards for consumption. The vice president
of the Turkish Cooperation and Coordination Agency (TIKA) handed out the certificates at a
ceremony held with Food and Agriculture Minister R. Burmaa. Certificates were handed out to
companies whose staffs participated in trainings from the Turkish Standardization Institute on 13 to
15 April. Each certificate issued is valid in 39 countries and opens up possibilities for exporting meat
to Saudi Arabia and the Middle East.
Source: Montsame
ITALIANS INCREASE INVESTMENT IN MONGOLIA
Foreign investment into Mongolia isn’t just coming in the form of mining companies. Mongolia is
attracting European investment, with Italy announcing it wants to open an embassy and invest in
the country. Mongolia began trading with Italy in 1973 for the trade of leather, wool and cashmere
as well as the import of facilities, manufacturing tools, foods, shoes and clothes. Mongolia sold
about USD45.3 million worth of goods to Italy in 2014 versus USD51.4 million in imports bought.
According to the Mongolian government's "Invest Mongolia" agency, the top foreign investors in the
country between 1990 and 2013 were the Netherlands (USD4.2 billion), China (USD3.75 billion),
Luxembourg (USD1.15 billion), British Virgin Islands (USD1.10 billion), Singapore (USD72 million),
Canada (USD 49 million), South Korea (USD38 milionn), USA (USD31 million), Russia (USD 30billion)
and Australia (USD 26million). Mongolia's Financial Regulatory Committee has recently approved the
launch of the new Mongolia's Securities Exchange for primary and secondary securities trade.
Source: Real Talk Asia
CROP CULTIVATION NEARS COMPLETION
Planting for this year’s harvest is nearly finished with more than 700,000 hectares of land utilized
for the crop. Crop sewing was 99.5 percent complete on 3 June, with 332,2000 dedicated to wheat,
314,500 hectares to various other grains, 17,700 to potatoes, 4,800 for animal fodder, 6,400 for
vegetable oils and 28,900 for vegetable oils.
Source: Montsame
HEALTH MINISTRY, WORLD BANK LAUNCH E-HEALTH PROJECT
The Ministry of Health and Sports and the World Bank launched the E-Health project to improve the
reach and effectiveness of healthcare service delivery. The project will help the government set up
a health information exchange platform to share medical information among healthcare providers,
patients and health administrators, according to the World Bank. “We believe that the introduction
of information technology in the health sector will contribute to more effective use of the budget
because the health information exchange platform will improve the accessibility, quality, and speed
of health services in Mongolia,”said Minister of Health and Sports S. Lambaa.
The program is funded with a USD19.5 million credit from the International Development
Association (IDA).
Source: The Financial

8. MONGOLIA SEEKS SUBSTATION MUSCLE
The developers of the 50MW Tsetsii wind farm in Mongolia are seeking a contractor to help
complete an extension to the Tavan Tolgoi substation, which will connect the project to the grid.
The wind farm, which will be located approximately 542 kilometers to the south of Ulaanbaatar in
the Gobi desert, is being developed by the Newcom Group LLC and Japan’s SB Energy Corp with
finance from the European Bank for Reconstruction and Development and the Japan International
Cooperation Agency. It is expected to be complete in late 2017.
The National Power Transmission Grid Company owns and operates the substation and is responsible
for the extension. The work on the substation will involve the supply and installation of plant and
equipment, including the switchgear foundation, quality control and design. Tendering for the
contract is expected to start during the third quarter of 2016.
Source: renews
CONSTRUCTION OF CHINA-RUSSIA-MONGOLIA HIGHWAY SET TO BEGIN IN AUGUST
Construction of a highway Russia, Mongolia and China for the construction of a highway between
the three countries is expected to launch in August. Parties agreed to rushing the signing of a
trilateral agreement for the highway that will link China’s Tianjin port with Ulaanbaatar and
Russia’s Ulan-Ude by 24 June from next December. The highway will pass through the Xinjan, Bayan
Ulgii and Khuvd border ports, with another road path for logistics for trade will run from Tianjin and
Erlian in China, through to Zamyn Uud, Sainshand, Ulaanbaatar, Darkhan and Selenge in Mongolia,
before ending in Russia through Ulaan Ude.
Construction is expected to launch between 15 and 20 August.
Source: Mongolia.GoGo.mn
POLITICS CONTINUE TO HINDER MONGOLIAN COAL
Government involvement in Mongolia’s coal mining industry is likely to constrain the sector’s
development in the near term according to BMI Research, with general elections due in June.
Government influence is particularly acute in terms of the development of the Tavan Tolgoi (TT)
coal mine, with BMI Research noting the halt of development funding for the project by a
parliamentary speaker in 2015. There are also questions about the project’s near-term viability,
given the slowing demand for metallurgical coal in Mongolia’s key market—and neighbor—China. Yet
a number of smaller coal project developments are continuing to go ahead, including the Ovoot
projects by Aspire Mining.
Overall, BMI Research is relatively bullish on Mongolian coal production, forecasting average growth
of 9.1 percent per year to 2020 as TT eventually progresses and development of Mongolia’s
transport and coal processing infrastructure gathers pace.
Source: World Coal
A MONTH BEFORE ELECTIONS, MONGOLIA'S ECONOMY IS IN SHAMBLES
The 18-building apartment complex in southern Ulaanbaatar has seen better days. Constructed in
the late 1940s, its buildings are now so rickety that there are fears they may collapse. The
government decided the complex should be torn down and a new one built—but that was several
years ago. "When will they demolish this building? I want to move into a new condominium soon,"
said Enkhbaatar, a 43-year-old livestock farmer who lives in one of the cramped, drafty units where
redevelopment has been delayed because of the slowed economy.
The general election scheduled for 29 June 29 is projected to be a close race between the
Democratic Party, which is feeling the heat from corruption scandals involving its lawmakers, and
the People's Party. Whichever side wins, rebuilding state finances and reviving the economy will be
job one for the new government.
Source: Nikkei Asian Review
NEW ROAD CLEANING TRUCKS DEPLOYED IN UB
If you’ve noticed a recent shine to Ulaanbaatar’s streets, you can thank the 15 new street cleaners

9. acquired by the Ulaanbaatar Service Union. The vehicles were donated by the Chinese government
in May and are able to clean a kilometer of road in 15 minutes, or 120 kilometers a day. Each unit
can store up to three tons of clean water and four tons of waste.
Source: News.mn
POLITICS
PARLIAMENT TALLIES IN 12 LAWS PASSED IN SPRING SESSION
Lawmakers passed 12 laws and amendments to 98 laws during the 45-day spring session of
Parliament. The laws passed included the Law on Medical Services and Support, Law on Waste and
Law on Organic Foods.
Elected officials are currently on break to make time to prepare for the 29 June election.
Candidates will begin campaigning on 11 June.
Source: News.mn
498 CANDIDATES TO STAND FOR PARLIAMENTARY ELECTION
A total of 498 candidates from 12 parties, three coalitions and 69 independent candidates will stand
for 2016 Parliamentary election on 29 June, said the head of General Election Committee. The
following parties received these number of certificates for candidates to run:
Democratic Party - 76
Mongolian People's Party - 76
Mongolian Peoples Revolutionary Party - 71
Civil Will Green Party - 15
Mongolian Traditional United Party - 11
Unity coalition of the Independence and Unity Party - 43
Khaan Songolt coalition of the Development Program and Mongolian Liberal Party - 9
Republican Party - 36
Civil Movement Party - 27
United Patriotic Coalition The United Party of Patriots and Khamug Mongol Labor Party - 9
Ard Tumnee Khairlay /Respect the People Party - 13
Source: Mongolia.GoGo.mn
MPRP HEAD N. ENKHBAYAR`S WIFE NOMINATED FOR 2016 ELECTION
The wife of former president Nambar Enkhbayar will run while the polarizing official and head of
the Mongolian People’s Revolutionary Party is barred from the 2016 because of a past conviction for
corruption. Five candidates from the MPRP, including Enkhbayar and the party’s deputy head, E.
Erdenjamiyna, were rejected by the General Election Committee for the 29 June election, said
party spokesperson B. Tulga. Enkhbayar’s wife, O. Tsolmon, was one of the replacement candidates
named.
Tsolmon will run in Enkhbayar’s place for the 75th electoral district against B. Udarmaa of the
Mongolian People Party and S. Tuvdendorj of the Democratic Party.
Source: News.mn
JUNE 29 DECLARED PUBLIC HOLIDAY FOR ELECTION
Election day for the parliamentary contest on 29 June has been declared a public holiday to give
voters reprieve from work to hit the ballot machines that day.
Source: NAMBC
CANDIDATES FOR UB CITY COUNCIL ANNOUNCED
Authorities have announced 272 Candidates to run for office with the Citizens Khural. Nine parties
and two party coalitions will back candidates, in addition to four independents. Parties will put
forward candidates as follows:

10. Democratic Party - 45 candidates
Mongolian People’s Party - 45 candidates
Mongolian People’s Revolutionary Party - 45 candidates
Mongol Conservative Party - 8 candidates
Civil Movement Party - 41 candidates
Mongolian Traditional United Party - 3 candidates
Republican Party - 21 candidates
National Labor Party - 24 candidates
Development Program Party - 5 candidates
United Union of Independence and Unity - 27 candidates
United Union of Patriots - 4 candidates
Independent candidates - 4 candidates.
Source: News.mn
GOVERNMENT MULLS TRANSPARENCY POLICY STRATEGY
The government will weight in on a proposed policy plan for introducing transparent governance
from 2016 to 2018. The policy guidelines will include plans for improving state services, increasing
accountability for state agencies, better management for state reserves, creating safer living
conditions and expanding the responsibilities of companies for reporting on their businesses.
Source: Zasag.mn
FOREIGN MINISTER SAYS MONGOLIA HAS LEARNED HARD LESSON ON RESOURCES
After its natural resource revenue fell in tandem with commodity prices, Mongolia was left with
another hurdle between it and economic growth.” Because of the global commodity slowdown,
suddenly Mongolia has a huge problem,” said Foreign Minister Lundeg Purevsuren during the 22nd
International Conference on The Future of Asia, in Tokyo. “Mongolians say there are two [types of]
horses: one that can reach far, and one that can run fast. We need more horses, not only the
mining sectors, but also other sectors.”
He added that the economic slowdown in China has been a specific cause for economic pains.
“There is an immediate need for us to diversify our trading partners,” he said.
Source: Nikkei Asian Review
IN MONGOLIA, KERRY SEEKS CLOSER TIES WITH DEMOCRACY 'OASIS'
Cultivating closer ties in the land of Chinggis Khan lore and traditional yurts, U.S. Secretary of State
John Kerry on Sunday tried his hand at archery, sampled curdled cheese and watched ancient
wrestling, all while hailing Mongolia as a modern "oasis of democracy" in its neighborhood. Kerry's
stop in this nation of three million people included heaps of praise for its unlikely democratic story.
But the top American diplomat also pushed for greater transparency in Mongolia, a sensitive issue
given the foreign scramble for its rich resource deposits and questions about how revenue is being
shared among the country's many impoverished citizens.
"Mongolia has made remarkable progress for a young democracy," Kerry told reporters. He credited
it for contributing troops to Afghanistan and Iraq, helping even younger democracies in Kyrgyzstan
and Myanmar in their transitions, and being a "responsible global citizen."
Source: AP
KERRY WARNS ON SOUTH CHINA SEA DURING MONGOLIA VISIT
US Secretary of State John Kerry Sunday warned Beijing against setting up an air defense
identification zone (ADIZ) over the disputed South China Sea during a visit to Mongolia. Washington
would consider the establishment of such a zone—which would require civilian aircraft to identify
themselves to military controllers—"a provocative and destabilizing act," Kerry told reporters in
Ulaanbaatar. The remarks came on the eve of a US-China dialogue in Beijing and after a Hong Kong
newspaper cited Chinese army sources as saying Beijing was mulling such a zone, similar to one
Beijing established over the East China Sea in 2013.

11. China claims nearly all of the strategically vital sea despite competing claims by several Southeast
Asian neighbors, and has pressed its claims by rapidly building artificial islands suitable for military
use. Washington has responded by sending warships close to Chinese claimed reefs, angering
Beijing.
Source: Gulf Times
KHAN QUEST SOLDIERS ATTEND RIBBON-CUTTING CEREMONY FOR SCHOOL DORMITORY
More than 100 participants, service members and civilians alike, participated in a ribbon-cutting
ceremony in commemoration of a completion of an engineer civic action program for a local school
in Zuun Mod, Mongolia, as part of the annual, multinational peacekeeping operations exercise,
Khaan Quest 2016. The dormitory project started in March as a joint effort with the multinational
team assisting with laying a foundation, and installing windows, electrical wiring and plumbing.
After a month of working together, the project finally reached its completion.
“The students in and around the Tuv province travel a great distance to come to school,” said U.S.
Army Capt. Matt Wright, from the 411th Engineer Battalion. “The dormitory serves as a safe place
to stay overnight for the students to eat, sleep and bathe during the week.”
Source: Digital Video & Imagery Distribution System
MYANMAR SENIOR OFFICIALS LEARN FROM MONGOLIA’S TRANSITION TO DEMOCRACY
Senior officials from the Myanmar government participated in a session to learn from Mongolia’s
experience transitioning into a democracy from 6 to 10 June. Mongolia has stepped up to act as
rolemodel for authoritarian countries to show that peaceful transitions to democracy can be
possible. At the seminar titled “Mongolia’s practices of transition to democracy,” Foreign Affairs
Minister remarked on the profound transformation seen since Mongolia’s transition 26 years ago.
Source: Montsame
UNDP’S CORRUPTION RISK ASSESSMENT FOR MINING
Experts have identified 15 corruption risks to the mining industry in Mongolia in a new report
published on 7 June. The mining sector plays an important role in the Mongolian economy, and
therefore it is critical that the sector be transparent, accountable and corruption-free. The
corruption prevention measures will be more effective when corruption risks of the mining sector
are studied systematically. Corruption prevention will be more effective if corruption risks of the
mining sector are studied systematically. That’s why the Independent Research Institute of
Mongolia (IRIM) has conducted an assessment and identified corruption risks in the four phases of
mining: exploration, pre-operation, operation and post-operation phases of the geology and mining
sector, the UNDP website published Tuesday.
Source: Montsame
MEDIA GROUPS SOUND OFF AGAINST RESTRICTIONS FOR ELECTION COVERAGE
Media have balked at government moves to restrict their coverage of the parliamentary elections
this year. Press have been critical of the tough stance towards the media taken by the government
with the amendments made to the Election Law. The government has permitted 43 television and
16 for radio broadcasters to distribute election advertisements for up to an hour a day. Breaches of
the law could see a broadcaster’s operations shut down.
The restrictions stretch as far as the Internet, as police have been granted the authority to shut
down any Facebook accounts it says is slandering candidates. The Mongolian Police Authority has
made an agreement with Facebook to shut down any page where it says there is defamation.
Source: News.mn, 2
INSIDE MONGOLIA’S ONLY GAY BAR
At the only gay bar in the most sparsely populated independent country in the world, Zorig Alima
tells me he’s a “penis shaman.” The proprietor of did/h.z says he can confidently predict men’s
penis sizes and sexual predilections. He gives my companion a disputable “reading,” and dashes

12. away to tend to friends and customers, explaining, “This place is like my living room.”
Anaraa Nyamdorj, one of the country’s most-prominent trans gender individual has waged a three-
year battle against state authorities to register the LGBT Centre he now runs. On Dec. 3, 2015—
Anaraa’s birthday—Mongolia passed a new Criminal Code that effectively recognizes “crimes of
discrimination,” in large part due to the Centre’s international advocacy with UN treaty bodies and
the UN Human Rights Council. The law will take effect 1 September, and that’s “when we will see
how much the police are able to understand [the law],” Anaraa says, acknowledging that the term
“crimes of discrimination” is somewhat vague.
Source: Gawker
FORMER ADVISOR TO MONGOLIAN MINER NOMINATED AS VP CANDIDATE IN U.S. ELECTION
Former Massachusetts Governor William Weld, who served as an advisor to Ivanhoe Capital and was
a frequent visitor to Mongolia, has been nominated to run as vice president by the Libertarian
Party. Weld will run with presidential nominee and former New Mexico Governor Gary Johnson after
Johnson declared that the team of two former Republican governors would become the most
formidable third-party ticket in light of the unpopularity of the two prospective Republican and
Democratic nominees.
Before becoming the Republican governor of a predominantly Democratic state, Weld had served as
U.S. attorney for Massachusetts during the Reagan Administration. He has also been a frequent
panelist and speaker at NAMBC investors conferences and annual meetings. One of the Libertarian
ticket’s hurdles will be to reach the 15 percent polling threshold necessary for them to be invited to
participate in nationally televised candidate debates in the fall.
Source: NAMBC
MONGOLIA'S CYBERSECURITY COOPERATION—EDITORIAL
Mongolia has declared in its National Security Concept that it will develop friendly-neighbor
relations and wide-ranging cooperation with the Russian Federation and the People’s Republic of
China. Yet individuals and other groups both in China and Russia have attempted cyber attacks on
Mongolia numerous times. On the International Telecommunication Union’s 2014 Global
Cybersecurity Index, Mongolia was ranked 15th, Russia was ranked 12th, and China was ranked
14th. Russia and China have both officially expressed their interest in international cooperation on
cyber issues. A key indicator of Mongolia’s policy cooperation on cybersecurity with Russia and
China will be developments in legal measures, technical measures, organizational measures,
capacity building, and national and international cooperation.
One specific aspect Mongolia needs to consider is its response to a code of conduct that Western
critics say is an attempt by the countries of the Shanghai Cooperation Organization to justify
greater state control over the Internet’s governance structures and online content. Mongolia will
need to improve its cybersecurity and advance in the ranks of the Global Cybersecurity Index based
on studying the cybersecurity policies of key player countries and international and regional
organizations.
Galbaatar Lkhagvasuren is an analyst at the Mongolian Institute for Geopolitical Studies
Source: The Diplomat
BCM UPDATES:
ANNOUNCEMENT
BCM KNOWLEDGE SHARING SESSION: ‘EQUIPMENT MANAGEMENT TECHNOLOGY SOLUTIONS,’ 15
JUNE 2016
Wagner Asia Technology LLC will present "Equipment Management Technology Solutions" at Wagner
Asia Automotive LLC for a BCM Knowledge Sharing Session from 16:00 to 18:00PM on Wednesday, 15
June. The session is offered free of charge to BCM members only and will be conducted in
Mongolian language.

13. To attend the training session please register to otgongerel@bcmongolia.org
JOINT RISK AND LEGISLATIVE WORKING GROUP MEETING ON "DRAFT PROPOSED AMENDMENT OF
LAW ON DISASTER RISK PREVENTION", 16 JUNE 2016
BCM is organizing a joint meeting between Risk and Legislative Working Group to discuss the Draft
Proposed Amendment of Law on Disaster Risk Prevention. National Emergency Management Agency
(NEMA) will introduce the draft amendment and what changes has been introduced to regulate the
corporate risk management on disaster risk prevention.
All BCM members are invited to attend the meeting. For more information or to register, please
contact Bayarmaa@bcmongolia.org by 15 June 2016.
NEW MONGOLIAN LAWS
Date Laws
03.06.2016 Law on Ratification of Development Cooperation Agreement between the Government
of Mongolia and Republic of Turkey
Law on Ratification of Loan Agreement of Regional project on border service
improvement
Law on Ratification of Loan Agreement of Additional financing for south eastern gobi
urbanization, development of communities near the border project
Law on Ratification of Criminal transfer agreement between the Government of
Mongolia and the Government of Hong Kong Special Administrative Region of the
People's Republic of China
Please click here to view the laws as well as amendments and addenda to/of laws published in the
latest weekly Government Bulletins. Unless otherwise decided by Parliament, it will take effect ten
(10) days after publication.
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
Business Ethics Working Group
CSR case studies, gifts and hospitality policy were the theme for Business Ethics WG meeting held
on 7 June 2016. World Vision presented its CSR case studies and encourage more companies to
address CSR in a strategic manner. Gifts and Hospitality Policy of Atlas Copco were introduced to
provide a possible sample of policy that can be shared and used by all BCM members as a
deliverable of the working group. Small working group meeting will be organized in August 2016 to
finalize the exemplary Gift and Hospitality Policy.
- Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June 2016
- 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

14. - 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
- KPMG is hiring Admin Staff. For more information: contact: 70118101
- Ministry of Health and Sports is hiring Financial Management Specialist. Deadline for Application:
June 13, 2016. For more information: contact: 976:(51)-263683
- Mercy Corps Mongolia is hiring Short Term Consultant: Deadline for Application: June 15, 2016. For
more information: contact to mn-jobs@mercycorps.org
- Global Green Growth Institute is hiring Green Investment Specialist. Deadline for Application:
June 10, 2016. For more information: please click here
Please click here to view full list of Job Vacancies at member organizations.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
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:
- ADB, “Asian Development Outlook 2016: Asia’s Potential Growth” (forecasts of the next 2 years for
the 45 economies in Asia and the Pacific including Mongolia)
- Invest Mongolia, “Your Guide to Invest in Mongolia” 2016
- BTI, “Mongolia Country Report” 2016
- World Bank, “Doing Business: Economic Profile of Mongolia 2016"
Please click here to view full list of Reports.

15. 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]
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 Rate
US dollar USD 1,980.11
Euro EUR 2,256.83
Japanese yen JPY 18.55
British pound GBP 2,874.13
Hong Kong dollar HKD 255.17
Chinese Yuan CNY 301.76
Russian Ruble RUB 31.16
South Korean won KRW 1.72