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Bcm news wire issue 434
1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 434 – July 1, 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:
• Payouts for TT shares roll out
• Rostec agrees to $500 mn sale of copper-gold JVs to Mongolia
• UNICEF and Mobicom Sign CSR pact
• Aspire Mining Ltd to soar with new China to Russia rail corridor
• Aspire Mining signs blending initiative with Tavan Tolgoi Coal mine
• Erdene reports surface-level gold results from Bayan Khundii
• Brazil-Mongolia Chamber of Commerce established
• Premier launches Mongolia investment guide
• Korean tractor brand to open assembly factory
• Rio Tinto cuts exposure to tax havens
• EBRD helps Mongolian SME Doctor Auto chain expand
• Rio Tinto faces new government in Mongolia after landslide election
• Taxes paid report: Rio Tinto paid $4.5 bn in taxes and royalties in 2015
• Rio Tinto cuts exposure to tax havens
Economy:
• Mongol Bank: FX auctions, 1-week bills
• Mongolia heads to polls with slowing economy on voters' minds
• Voting expanded with roving ballot box
• Mongolia will continue to rely on coal for expanding power capacity
• Japan considers railway construction proposal
• Livestock population reaches largest number ever
• Tourist arrivals in Mongolia rise
• Army recruits student soldiers
• Mongolia and China agree to resolve bottlenecks at land ports
• New railway to shuttle passengers from Khushig airport
• More private schools opening in UB
• Mayor orders new park along Tuul river
• New road between Undurkhaan and Choibalsan
• Gobi pastures under insect attack
• Jargaltkhaan-Chinggis road to be repaired
• Academic records put online for Mongolians studying abroad
• Mongolia’s banks eye brighter outlook
2. • SDC: Tackling poverty in Mongolia through vegetable farming
• Saving Mongolian wildlife, 80 million years after extinction
• A look at the media landscape in Mongolia after 26 years of a free press—video
Politics:
• Mongolia's opposition MPP sweeps back to power on country's economic woes
• MPs too busy with re-election skip parliament session
• Putin Concerned About Mongolian Dam Threatening Lake Baikal
• MPs too busy with re-election skip parliament session
• MPP takes control of Ulaanbaatar Citizens Council
• Baby steppes: Mongolian women face ballot box battle
• Young Mongolians hope elections will rock 'n' roll political establishment
• Mongolian election unlikely to advance press freedom
BCM Updates:
Announcements
Advocacy Notes
Working Groups News
Member-to-Member Special Offers & Benefits
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 Wagner Asia Automotive
Mongolian Business Database
BCM MONTHLY MEETING NOTICE
3. BCM’s monthly meeting for members will be on Wednesday, July 6 at 16:45PM at the BLUE
SKY HOTEL, 3rd floor, “Crystal” conference room. The meeting will be in English only.
The meeting will feature the following presentations:
16:45 Registration & Networking
17:00 Call to Order - B. Byambasaikhan, Chairman, BCM
17:10 BCM Report - Ch. Mergen, Executive Director, BCM
17:15 New members introduction
17:30 PANEL – “Election Results: Impact on economic & business environment”
Moderator: B. Byambasaikhan, Chairman, BCM
Panelists: Cameron McRae, CEO, Tarva Investment & Advisory LLC
Jargalsaikhan De Facto, Political & Economic Observer/Columnist
Ch. Khashchuluun, Executive Director, National Council for Private
Sector Support
L. Sumati, Director, Sant Maral Foundation (TBC)
18:00 Q&A from Panel
18:30 New Members photo
18:30 Networking reception
NOTE: In order to improve our service, we have started to register attendees for our
monthly meetings in advance. Please send your name, position and email address to
saruul@bcmongolia.org by 5PM on Tuesday, July 5.
Admission: BCM members: free, non-members: MNT25,000.
New Members:
1. Mongolian Association of Cheese Maker (MACU)
2. MIRIM
3. Orchuulga 24 - Your Translation Agency
4. OSHMI
5. QMC
6. VETP
Networking Reception:
A networking reception will be held for all attendees immediately following the business
portion of the meeting in the “Topaz” room on the 3rd floor, Blue Sky Hotel. Churchill’s
will provide their delicious sausage rolls at the reception.
BUSINESS
PAYOUTS FOR TT SHARES ROLL OUT
Mongolia on Monday began paying out to the 960,000 citizens wanting to sell a third of
their 1,072 shares in the state-owned Tavan Tolgoi coal mine. Government is allowing
Mongolia’s 1.65 million shareholders in the mining unit, Erdenes Tavan Tolgoi LLC, to sell
their shares again for the first time since equity was initially issued in 2013. Commercial
banks facilitating the sale are paying an initial MNT100,000 to shareholders after receiving
requests from 1.2 million. Prime Minister Chimed Saikhanbileg’s government has promised
to pay out about MNT300,000 total for the shares.
4. Source: Montsame
ROSTEC AGREES TO $500 MN SALE OF COPPER-GOLD JVS TO MONGOLIA
Rostec has agreed to sell its 49 percent stakes in Mongolia’s joint venture Erdenet Mining
Corp. and gold, iron ore producer Mongolrostsvetment to a unit of Trade & Development
Bank of Mongolia, according to two people familiar with situation. Rostec may get a total
USD500million from the sale if the Russia government approves, according to the two
sources who asked not to be identified before official announcement.
Source: Bloomberg, Cover Mongolia
DEVELOPMENT BANK BECOMES PARTNER OF SCO INTERBANK CONSORTIUM
Mongolia’s Development Bank became a partner of the Interbank Consortium of the
Shanghai Cooperation Organization (SCO IBC). The SCO IBC Council agreed to the
partnership at a meeting during the multilateral organization’s annual summit in Tashkent
on June 23.
Source: Trend.az
UNICEF AND MOBICOM SIGN CSR PACT
UNICEF Mongolia and telecoms company Mobicom Corp. together are looking to strengthen
partnerships with the private sector for a focus on child welfare in Mongolia. The
memorandum, singed on 22 June, sets the stage for leveraging corporate leadership,
resources and expertise to support children in Mongolia, as well as advocacy for the
strengthening of the country’s policy and legislative environment to be more conducive for
the protection and realization of children’s rights.
The pact is part of UNICEF’s focus on corporate social responsibility (CSR), pushing
businesses to make positive changes in communities through their behavior and practices.
“We are confident that through our collaboration with UNICEF, we will make even greater
impact for the wellbeing of children, which is the main focus our CSR initiatives” said
David Holliday, the chief executive officer of MobiCom.
Source: Mongolia.GoGo.mn
ASPIRE MINING LTD TO SOAR WITH NEW CHINA TO RUSSIA RAIL CORRIDOR
Aspire Mining Ltd. is set to be a large beneficiary as the presidents of China, Russia and
Mongolia have signed off on the establishment of a new rail corridor between Russia and
China through Mongolia. In August 2015, Aspire’s rail subsidiary, Northern Railways LLC,
received the green light to build and operate a 547-kilometer railway to extend Mongolia’s
national rail network from the city of Erdenet to its flagship Ovoot Coking Coal Project in
Mongolia.
The new 3,500 kilometer rail corridor requires the development of 1,414 kilometers of rail
to complete the route. The Erdenet to Ovoot 547 kilometer route is part of this
undeveloped section. The establishment of this new rail corridor confirms that the Erdenet
to Ovoot railway has developed from being a rail connection to a large coking coal project,
to now being part of an important new trade infrastructure route.
Source: Proactive Investors
ASPIRE MINING SIGNS BLENDING INITIATIVE WITH TAVAN TOLGOI COAL MINE
Mongolian coal explorer Aspire Mining Limited has signed an agreement with the Mongolian
government to look into blending coal opportunities with Aspire's Ovoot mine and the
5. state-owned Tavan Tolgoi mine. The MoU was signed with Erdenes Tavan Tolgoi JSC, the
Mongolian Government entity that owns the giant Tavan Tolgoi mine, one of the world’s
largest untapped coking and thermal coal deposits.
In 2014 Aspire conducted a number of blending tests with various coals including non-
coking coal from the massive Tavan Tolgoi Mine. It is expected that over the current life of
mine plans there are very significant quantities of non-coking coal to be produced at Tavan
Tolgoi without a current viable market to sell into. "Tavan Tolgoi is by far the largest
coking coal deposit in Mongolia with Ovoot being the second largest by reserves and it
appears that there are numerous technical and commercial synergies in working together
to improve the value of exported Mongolian coking coals."
Source: Proactive Investors
ERDENE REPORTS SURFACE-LEVEL GOLD RESULTS FROM BAYAN KHUNDII
While Rio Tinto Group is getting all of the attention for its high-grade underground
development at its Oyu Tolgoi copper-gold mine in Mongolia, Nova Scotia-based Erdene
Resource Development is proving up a precious metals prospect in the country that is much
closer to surface. The highlight of the last batch of results from the June quarter drill
program came from an intercept at the aptly named Striker Zone, which hit 8.3 meters of
mineralization grading 14.3 grams per ton of gold from 0.7 meters depth. This was part of
a larger width at hole BKD-44, which intersected 70 meters averaging 0.4 grams per ton of
gold from 39 meters depth at BKD-44.
Over the next 60 days, the company will complete 3D modeling work on the project, get a
structural geologist to complete a structural mapping and interpretation program, and
complete a spectral mineralogical study.
Source: Mining Journal
BRAZIL-MONGOLIA CHAMBER OF COMMERCE ESTABLISHED
Mongolia has opened a chamber of commerce for expanding trade in Brazil. Mongolia’s
ambassador to Brazil Ch. Sosormaa attended an official ceremony for the opening the
Brazil-Mongolia Chamber of Commerce during her working tour to Parana State of Brazil.
Source: Montsame
PREMIER LAUNCHES MONGOLIA INVESTMENT GUIDE
A new investment guide will answer questions for investors about how and where to spend
their money Mongolia. The United Nations Conference on Trade and Development
(UNTCAD) online Investment Guide to Mongolia provides local and foreign investors with
updated and hard-to-find information on operating costs, wages, rents and taxes, as well
as on laws, procedures opportunities in mining, agriculture, tourism and financial services,
and useful contacts. According to the UNCTAD, the guide will "improve transparency,
reduce bureaucracy, improve the business environment and strengthen relations with
investors.”
Written based on a platform developed by UNCTAD that makes it easy to update and find
information. Similar guides are already used in a number of countries and can help
developing countries raise the USD2.5 trillion of investment the UNCTAD estimates is
needed private investment to meet shortfalls in financing projects.
Source: Mongolia.GoGo.mn
KOREAN TRACTOR BRAND TO OPEN ASSEMBLY FACTORY
6. South Korean tractor manufacturer Asea is opening an assembly plant in Ulaanbaatar as
Mongolia expands its agriculture production. The head of the company, Kim Shin Kil, will
work with 15 staff to import the brand’s products to Mongolia.
Source: Unuudur
EBRD HELPS MONGOLIAN SME DOCTOR AUTO CHAIN EXPAND
A Mongolian chain for car maintenance and selling spare parts is expanding its operations
and looking to export thanks to a loan financed by the European Bank for Reconstruction
and Development (EBRD). The bank focused on investments into post-Soviet countries has
invested more than EUR1.3 billion since coming to Mongolia. It’s USD2.7 million loans to
Khan Bank is financing loans small businesses such as Doctor Auto Chain, which has 200
employees at eight locations throughout the country.
“This is an example of how the EBRD and partner donors, through the Small Business
Initiative, combine innovative financial instruments, including indirect finance and
business advice, to boost SMEs’ and local financial institutions’ capacity to play their
economic role to the full potential,” said Matthieu Le Blan, the EBRD’s head of office in
Mongolia.
Source: Montsame
RIO TINTO FACES NEW GOVERNMENT IN MONGOLIA AFTER LANDSLIDE ELECTION
Rio Tinto Group will have to contend with a new government in Mongolia after the leader
who last year approved an expansion of the company's Oyu Tolgoi copper mine was
emphatically ousted from power. Faced with a spluttering economy, Mongolian Prime
Minister Chimed Saikhanbileg lost his own electorate while his ruling party were reported
to have lost 28 of their 37 seats. Views were mixed over whether Rio would be better or
worse off under the new government under the Mongolian People's Party.
Brian Fisher, a former adviser to Oyu Tolgoi and now the director of Canberra-based BAE
Economics, said he did not believe Rio had much to fear from the new government. "Their
general approach has been fact-based, so there is economic rationality," he said.
Source: Sydney Morning Herald
TAXES PAID REPORT: RIO TINTO PAID $4.5 BN IN TAXES AND ROYALTIES IN 2015
Rio Tinto Group paid USD4.5 billion in taxes and royalties and spent almost USD18 billion
buying goods and services from suppliers around the world last year, according to the
company's 2015 Taxes paid report. Rio Tinto chief financial officer Chris Lynch said "Rio
Tinto continues to provide a significant direct benefit to the governments and communities
where we operate. The USD4.5 billion we paid in taxes and royalties last year takes our
total contribution to USD47.3 billion since 2010."
Rio Tinto has had an average corporate income tax rate of 29.9 percent globally on
underlying earnings over the past five years and its Taxes paid report has been recognized
as best-practice in tax reporting and transparency for the extractives sector.
Source: Rio Tinto Group
RIO TINTO CUTS EXPOSURE TO TAX HAVENS
Rio Tinto Group, which runs the Oyu Tolgoi copper mine, has cut the number of its
companies that operate in tax havens after a review prompted by growing concerns over
possible tax avoidance by multinationals. The Anglo-Australian mining group said 17 of its
7. 600 controlled entities were resident in tax havens in 2015, three fewer than in 2014. Rio
defines a tax haven as a country with a general corporate tax rate below 10 percent.
The report said Rio’s board had determined following its review that the company would
not: establish arrangements that were artificial and not linked to business requirements
and that rely on non-disclosure; and artificially transfer profits from one business location
to another to avoid taxation. Rio’s review follows a global debate over tax avoidance by
multinationals, which has prompted regulatory action in the US, Europe and elsewhere.
Source: Financial Times
ECONOMY
MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS
The Bank of Mongolia on 30 June sold USD36 million and CN47.5 million at currency
auctions. That day, it accepted commercial banks’ tugrik swap agreement offers for an
equivalent of USD70 million but rejected U.S. dollar swaps worth USD10 million. On 27
June, it issued MNT235 billion in one-week bills at a weighted interest of 10.5 percent.
Source: Bank of Mongolia
MONGOLIA HEADS TO POLLS WITH SLOWING ECONOMY ON VOTERS' MINDS
Mongolia will elect a new parliament this week hoping it can reverse four straight years of
slowing growth, against a backdrop of concerns about an erosion of democratic values in a
country sandwiched between autocratic China and Russia. An abrupt economic slowdown
since 2012 has stirred controversy over the role played by international mining firms like
Rio Tinto Group, which last month finally approved a USD5.3 billion Oyu Tolgoi copper
mine extension plan, having settled a long dispute with the government a year ago. The
mining slump was still likely to cost the ruling Democratic Party seats in Wednesday's
election, according to opinion polls.
Whether the opposition Mongolian People's Party (MPP) can take advantage is unclear, but
following a recent fundamental change to the character of Mongolia's democracy, the
election has become much more of a two-horse race.
Read more about the election and the economy at AFP, Al Jazeera, AP, Barron’s and
Bloomberg.
Source: Reuters
VOTING EXPANDED WITH ROVING BALLOT BOX
A roving ballot box will be traveling to homes to give bed-ridden or disabled citizens a
chance to cast their votes on 29 Wednesday. Votes will be taken from 09:00 to 20:00 on 28
June, a day before official voting.
Source: News.mn
MONGOLIA WILL CONTINUE TO RELY ON COAL FOR EXPANDING POWER CAPACITY
Mongolia has not given up on coal as a fuel for generating power while it looks to tap into
its renewable energy resources. Power plants are being developed around the country,
according to the Ministry of Energy. Coal from the Choir-Nyalga coal deposit will be used
to fuel the 700-megawatt power plant at Bagannur, which is estimated to cost between
USD800 million and USD900million. The Booroljuut power plant will produce 300
megawatts from Bayanjargalan Soum, Tuv Aimag, and Japan’s Marubeni Corp. has signed
on as a strategic investor for a power plant at the Tavan Tolgoi coking coal mine. The
8. Tavan Tolgoi power plant will be the main source of energy for the Oyu Tolgoi copper mine
Mongolia share ownership with Anglo-Austrlian miner Rio Tinto Group.
Source:
JAPAN CONSIDERS RAILWAY CONSTRUCTION PROPOSAL
Japanese Prime Minister Shinzo Abe has agreed to investigate a proposal for Japan to
finance the construction of Mongolia’s eastern railways, said Foreign Affairs Minister L.
Purevsuren. Mongolia’s top diplomat was in Japan from 1 to 3 June while part of a
Mongolian delegation led by Parliament Speaker Zandaakhuu Enkhbold. Abe has research
from the Japanese Bank for International Cooperation to consider the matter, Purevsuren
reported to the National Security Council (NSC).
Source: Montsame
LIVESTOCK POPULATION REACHES LARGEST EVER NUMBER
Mongolia counted a new record for its livestock population with 73 million total heads. The
number of newborn livestock was 18.8 million heads in spring, including 568,000 foals,
954,000 calves, 9.4 million lambs and 7.9 million goat kids.
Source: Mongolia.GoGo.mn
TOURIST ARRIVALS IN MONGOLIA RISE
Mongolia has seen a 6 percent increase in tourism at the start of the tourism season in May
from last year. Tourism has become increasingly important for the Mongolian economy as
the country looks to diversify away from mining since a slump in commodity prices added
to economic pressures. Growth in the volume of tourists was strongest from Japan, with a
30 percent increase. Australia saw the largest proportional growth with a 47 percent
uptick.
Losses in tourists numbers came from China, South Korea and Ireland.
Source: News.mn
ARMY RECRUITS STUDENT SOLDIERS
A thousand students will serve in the Mongolian Armed Forces this summer. Volunteers will
serve at Khuvd, Dornod and Gobi Sumer Aimags. The Student Soldier program launched via
a presidential decree from Tsakhia Elbegdorj in 2014 and has seen the enrollment of 1,500
students since.
Source: News.mn
MONGOLIA AND CHINA AGREE TO RESOLVE BOTTLENECKS AT LAND PORTS
Mongolian and Chinese officials have agreed to prioritize resolving issues slowing down
trade at the Gashuun Sukhait and Gants Mod land ports. President Tsakhia Elbegdorj
discussed pressing issues for Mongolia and China with his Chinese counterpart, Xi Jinping,
at the sidelines of the Shanghai Cooperation Organization in Uzbekistan. In addition to the
land ports, the leaders discussed railway transit to seaports in China as well as the
construction of the Eginn Gol hydro power plant.
Source: Montsame
NEW RAILWAY TO SHUTTLE PASSENGERS FROM KHUSHIG AIRPORT
A new railway will connect the Khushig Valley airport now under construction to
Ulaanbaatar by 2017 and help expand domestic trade. The 14-year construction project for
9. the Aero Express railway will go forward with a memorandum of understanding signed by
Ulaanbaatar Mayor Erdene Bat-Uul and the Russia-Mongolia state-owned joint venture
Ulaanbaatar Railways (UBTZ). Construction is expected to launch this autumn.
The rail line will move passengers and freight arrived by air from the airport to the the
central station in Ulaanbaatar. Next, the rail line will facilitate the trade of goods through
a wider network of rail that leads to Nalaikh Soum and the town Partizan. Work on the rail
will also be done to facilitate public transport as the city looks for ways to cut down on
road traffic. Meanwhile, the Bagakhangai station will be designated for hazardous cargo.
Source: Montsame
MORE PRIVATE SCHOOLS OPENING IN UB
More private schools are opening in Ulaanbaatar as demand for education outside the state
system grows. Eight schools and 36 kindergartens are expected to open this year, said Kh.
Chintogtokh of the Ulaanbaatar Education Department. In the last four years, 14 state-
owned schools, 45 kindergartens, and 16 primary schools with kindergartens opened. New
wings were build at 23 schools and kindergartens, as well as five new gym.
Source: Zuunii Medee
MAYOR ORDERS NEW PARK ALONG TUUL RIVER
A new spot for rest and relaxation has been designated near the Tuul river by
Ulaanbaatar’s mayor. Ulaanbaatar Mayor Erdene Bat-Uul has issued a decree for 28
hectares of land be set aside for the public for the next 15 years. The mayor has advised
that alcohol be banned from the premises.
Source: News.mn
NEW ROAD BETWEEN UNDURKHAAN AND CHOIBALSAN
A new 143-kilometer highway will create a direct route for traveling between Undurkhan
and Choibalson Soums in eastern Mongolia. The project is already half-finished with 80-
kilometers of road completed on 25 June by Badrakh Oil and Arj Capital. The project
suffered from two years’ delay after financing ran out, but another 63 kilometers of road
will be built before the Naadam festival in July.
Source: News.mn
GOBI PASTURES UNDER INSECT ATTACK
Pastures in the Gobi desert are being gobbled up by a mysterious black insect following
tough winter conditions. Mongolia this year weathered high precipitation following a less-
than-hoped-for harvest after farms dried out last year, resulting in widespread animal
deaths. Tests are already underway to determine the type of insect making the attacks on
the crops, said the governor of Erdenedalai Soum in Dundgobi Aimag, B. Lkhagvamandal.
“This year was had a very good, rainy summer, but unknown black insects are eating moist
grass crops, such as leaks,”
The drought in the early summer of 2015 put Mongolia’s food security at risk and resulted
in shortages of animal feed. Authorities were on high alert to act proactively against the
deadly winter weather phenomenon know as the “dzud.” The government has made a push
to send seeds to farms to help make up for last year’s losses, but threats can come in
many forms.
Source: Udriin Sonin
10. JARGALTKHAAN-CHINGGIS ROAD TO BE REPAIRED
A hundred kilometers of road heading east from Ulaanbaatar is being completely
overhauled because of serious damage that is making driving dangerous. The Cabinet
Secretariat on 27 June ordered maintenance and repairs to the road by contractors. Road
repair will span from Ulaanbaatar to Undurkhan and Jagalant and Chinggis Soum.
Source: Montsame
ACADEMIC RECORDS PUT ONLINE FOR MONGOLIANS STUDYING ABROAD
Academic records will be made available online for Mongolian students studying online
from 15 July. Putting records online will remove the burden of fulfilling requests as the
number of students studying continues to grow. A total 7,148 Mongolians have requested
academic records from Mongolian embassies around the world while studying abroad.
Source: News.mn
MONGOLIA’S BANKS EYE BRIGHTER OUTLOOK
Cheaper credit and signs of long-awaited movement in Mongolia’s mining industry are
fueling hopes of a rebound in the country’s banking sector. The outlook for Mongolia’s
banks has been less than favorable of late, with analysts citing both higher levels of non-
performing loans (NPLs) and a fall in lending activity as cause for concern. However,
newfound stability, improved business sentiment and monetary easing are all seen as key
for stronger industry growth.
In May ratings agency Moody’s warned that some of the country’s banks could face
downgrades due to their high exposure to commodities. Metals and mining, which account
for 10 percent of all outstanding loans in the Mongolian banking system, were cited as the
riskiest exposure for banks in terms of energy and other commodity loans.
Source: Oxford Business Group
SDC: TACKLING POVERTY IN MONGOLIA THROUGH VEGETABLE FARMING
The Swiss Agency for Development and Cooperation (SDC) is launching a project that aims
to relieve poverty by financing vegetable farms. The Inclusive and Sustainable Vegetable
Production and Marketing Project launched in April 2016 will educate vegetable farmers in
rural regions surrounding Ulaanbaatar and through the central region. The agency is also
working with the Ministry of Food and Agriculture to provide farmers with higher-quality
seeds for planting season.
More than 63,000 predominantly small-scale farms are growing crops throughout Mongolia.
The SDC says that supporting diversified production as well as the storage, processing,
marketing and consumption of agriculture products will benefit both rural households’
livelihoods, as well as the wider economy.
Source: Montsame
SAVING MONGOLIAN WILDLIFE, 80 MILLION YEARS AFTER EXTINCTION
Researchers are in the Gobi desert to save what remains of the the velociraptors made
famous by the film Jurassic Park that roamed there 80 million years ago. Unlike similar
fossil-rich locales in the U.S., Bayanzag has no museum, no visitor center, no on-site staff
and no year-round protection. This leaves the extraordinary fossils of Protoceratops,
Oviraptor, Pinacosaurus and others vulnerable to weather, poaching and accidental
damage, and it leaves local communities without resources to protect them or a means to
benefit from an increasingly popular tourist attraction and scientific resource.
Mongolian paleontologist Bolortsetseg Minjin is working to change this. Initially supported
11. by the Museum of the Rockies in Bozeman, Montana, United States, she founded a
nonprofit organization called the Institute for the Study of Mongolian Dinosaurs (ISMD) with
a mission to “develop a self-sustaining active community of Mongolian paleontologists and
a museum in Mongolia to preserve dinosaurs and other national treasures for generations
to come.”
Source: Montsame
A LOOK AT THE MEDIA LANDSCAPE IN MONGOLIA AFTER 26 YEARS OF A FREE PRESS—
VIDEO
In 1990, Mongolia’s peaceful, democratic revolution ushered unprecedented press freedom
into the small country. In the intervening 26 years, the media has expanded rapidly,
currently boasting nearly 500 media outlets for a population of three million. This
abundance hasn’t necessarily bolstered democracy—news is frequently bought and paid for
by politicians, and unchecked freedom of speech can lead to libelous, uncorroborated
journalism.
Source: The Diplomat
POLITICS
MONGOLIA'S OPPOSITION MPP SWEEPS BACK TO POWER ON COUNTRY'S ECONOMIC
WOES
The main opposition Mongolian People's Party (MPP) swept back to power in landslide
parliamentary elections, results from Mongolia's election committee showed on Thursday,
after campaigning dominated by concern over slowing economic growth. The MPP's victory
will likely be a greeted as a tailwind for the economy and international miners, as the
party's success in attracting investors when it last held power, from 2008 to 2012. The MPP
won an 85 percent majority with 65 seats in the 76-member parliament, taking back power
from the Democratic Party, an official from the General Election Committee told a press
briefing.
The ruling Democratic Party won nine seats in Wednesday's vote, down from 37. Prime
Minister Chimed Saikhanbileg, and the parliament's chairman, Zandaakhuu Enkhbold, were
among those kicked out of their seats. One seat went to the Mongolian People's
Revolutionary Party (MPRP), and one to an independent, popular folk singer Samand
Javkhlan, who has taken up environmental causes.
Source: Reuters
MPS TOO BUSY WITH RE-ELECTION SKIP PARLIAMENT SESSION
A busy campaign season made elected officials too busy to attend a closing session of
Parliament scheduled for this week. A hiatus was called this month while incumbent law
makers are busy with their campaigns this month as the prepare for the legislative election
to be held on 29 June. On the agenda for the final days before the election were
legislation focused on military defense and soldiers.
Source: Zuunii Medee, Montsame
PUTIN CONCERNED ABOUT MONGOLIAN DAM THREATENING LAKE BAIKAL
Russian President Vladimir Putin voiced strong concern Thursday about Mongolia's plans to
build a hydroelectric plant on a river flowing into Lake Baikal, warning it could endanger
the world's deepest lake. Putin said that the prospective China-funded dam on the Selenga
River would cause "certain risks" to the lake in southern Siberia. "We would like to study
12. this issue most attentively together with our Mongolian friends and the People's Republic
of China," Putin said during a meeting with leaders of China and Mongolia in Uzbekistan's
capital, Tashkent.
Putin suggested that Russian power plants could increase electricity supply to Mongolia
instead to help meet its energy needs. The hydro-power plant project long has drawn
criticism from environmental groups, which expressed fears that it could endanger the
world's oldest lake, formed more than 25 million years ago.
Source: New York Times
MONGOLIA JOINS WORLD ENERGY COUNCIL
Mongolia has joined the World Energy Council as it looks to expand its energy-generating
capacity to meet domestic demand and for export abroad. With demand for green energy
on the rise, Mongolia would like to tap into its vast renewable energy potential, as
suggested by the International Renewable Energy Agency. Renewables can also help fill in
gaps, as only 90 percent of Mongolia has access to energy. Mongolia is Ranked 94th out of
130 countries in the council’s 2015 Energy Trilemma Index.
Solar and wind resources in the Gobi Desert could produce up to 2.6 terawatts, according
to the report, but only 7 percent of the energy generated in the country comes from
renewables. To change this, Mongolia has set the target for 20 percent renewables by 2023
and 30 percent by 2030. That would help the country go from a net importer of energy to
an exporter.
Source: Montsame
MPP TAKES CONTROL OF ULAANBAATAR CITIZENS COUNCIL
Mayor Erdene Bat-Uul faced a tremendous defeat in elections on Thursday, with the
Mongolian People's Party winning another landslide for 34 out of 45 seats on the city
council. During a press conference, Erdene Bat-Uul told the press that he would resign
from the Democratic Party's leadership post for Ulaanbaatar. He likened the loss to the
"tsunami to our democratic party".
Source: Montsame, Mongolia.GoGo.mn
BABY STEPPES: MONGOLIAN WOMEN FACE BALLOT BOX BATTLE
Mongolian pop singer and single mother Nara swapped her trademark miniskirt for a
traditional deel to campaign in tented slums for a seat in parliament, but would-be female
parliamentarians face an uphill challenge as the country goes to the polls Wednesday.
Nara, 33, whose full name is Munkhturiin Narantuya and who has a two-year-old son,
aspires to "change the system, involve myself to influence how the system should work",
said Naraa.
Female lawmakers have been credited with pushing forward legislation which improved
women's lives, including increased punishments for domestic violence and more childcare
centers, helping mothers enter the workforce. “Problems that usually affect women such
as kindergarten and other social issues cannot be solved without women," said Luvsangiin
Erdenechimeg, head of the women’s caucus in parliament.
Source: AFP
YOUNG MONGOLIANS HOPE ELECTIONS WILL ROCK 'N' ROLL POLITICAL ESTABLISHMENT
In a stretch of open grassland surrounded by yurts, some of the thousands of Mongolians
headbanging to the likes of heavy metal band "Purgatory Destroyers" at the country's
13. biggest music festival were thinking about politics as much as partying. Many young
Mongolians, not much older than the wind-swept, land-locked democracy squeezed
between autocratic China and Russia, are disillusioned with the slow economy and
established political parties, and could play a decisive role in parliamentary elections on
Wednesday. "The quality of politicians is, I think, very bad," said Khishigdelger, a
festivalgoer at the Playtime Music Festival. “So Mongolians need to do something
different.”
Sporting a beard and tattoos, Unenkhuu, 36, said he had taken time off from organizing
heavy metal concerts and playing in a band to pursue elected office. “I think they should
all step down and give way for the new generation.”
Source: Reuters
MONGOLIAN ELECTION UNLIKELY TO ADVANCE PRESS FREEDOM
L. Munkhbayasgalan, host of TV show Discussions without Censorship was set to fly to
Washington D.C. where she said she planned to meet with representatives of the
International Consortium of Investigative Journalists (ICIJ) to discuss possible cooperation
opportunities on the Panama Papers. But Mongolian police summoned her and told her she
was barred from leaving the country because she was under criminal investigation. The
pressure she faced that day as well as her entire careers is an example of the challenges
media faces in Mongolia.
Another threat to journalists' independence in Mongolia is the prevalence of politicians
directly owning news outlets. “The politicians do whatever they want with their media and
they certainly all have an agenda,” said Lkhagva Erdene, executive producer of news at
the privately owned TV channel Mongol TV.
Source: Committee to Protect Journalists
BCM UPDATES:
UPCOMING EVENTS
5TH ANNUAL BCM FOOTBALL TOURNAMENT, 2 JULY
We would like to invite you come and watch the amazing games of the 5th annual BCM
Football Cup 2016! It is organized at the National Garden Park’s football field on July 2nd,
2016. This year a total of 8 teams representing 8 member companies of the BCM are
participating in the Cup. The BCM Football Cup 2016 is sponsored by Wagner Asia
Automotive, International SOS as Medical Standby sponsor and is supported by British
School of Ulaanbaatar. To see the agenda, please click here.
This year’s eight teams are representing
• Wagner Asia
• Khan bank
• Transwest
• Mandal Insurance
• Golomt Bank
• Oyu Tolgoi
• Specialized Career Consulting
The National Garden Park Football Field has viewers seats enough for more than 200
people. The National Garden Park is becoming one of the favorite parks where families and
friends spend their weekends in a nice green environment. So come and enjoy the games
of our good players this Saturday with your friends, families and colleagues! The weather
14. is forecasted to be 26-27Degrees Celcius, so make sure you are well protected from
sunburn.
JOIN BCM’S TRADE DELEGATION TO MINEXPO INTERNATIONAL 2016
The Business Council of Mongolia (BCM) is now registering members to join a Mongolian
business delegation for MINExpo International 2016 at the Las Vegas Convention Center on
26 to 28 September. The expo is the world's largest show of its kind and most
comprehensive exposition dedicated to mining equipment, products and services. More
than 1,800 exhibitors in twelve exhibit halls will display the latest technology, equipment,
components, parts and services for exploration, extraction, safety, environmental
remediation and more!
Attendees will learn about improving productivity, controlling costs, keeping operations
competitive, improving safety and managing risk with all the new equipment, services,
products and technology. There will also be plenty of opportunities to network and meet
industry leaders & experts for finding potential partners and suppliers.
BCM has partnered with the U.S. Embassy’s Commercial Section in Ulaanbaatar for the
event. The registration deadline is 29 July. Contact BCM at 70114442 or email
tugi@bcmongolia.org for registration or more information.
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
Risk and Legislative Working Groups' Joint Meeting on the "DRAFT AMENDMENT OF THE
LAW ON DISASTER PROTECTION" 16 June 2016
BCM’s Energy and Environment Working Group meeting was held on 16 June 2016 with 3
speakers in roundtable experience sharing format. Oyunbat Tumurkhuyag, Founder of Best
Energy Savings LLC introduced vacuum heater, vacuum steam boiler, smart socket and
smart ger which were produced by Mongolian engineers. MP Oyun discussed about the need
to leapfrog from brown to green economy, and suggested BCM to send an official letter to
the Ministry of Environment, Green Development and Tourism to get a full list of laws,
policies and regulations that support green development and provide incentive to private
sector to go green. BCM will send this official letter and share the received list to all
members and post on BCM website. The final speaker Solongo Khurelbaatar, (Former)
Assistant Advisor for Asia-Oceania, Ramsar Convention Secretariat shared her work
experiences at RAMSAR convention. To see the full meeting summary and upload
presentations, please click here.
- Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June
2016
15. - Energy & Environment Working Group Meeting on “ENERGY EFFICIENCY INITIATIVES”, 26
May 2016
- Education Working Group Meeting on “BCM SSUMMIT PROCEEDINGS”, 5 May 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:
- Orchuulga 24 is providing 15% discount on written translation services to BCM Members
- 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.
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.
ECONOMIC INDICATORS
INFLATION
16. 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]
May 31, 2016 *1.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.8% y-o-y; 3.2% Core - Ulaanbaatar City, May 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]
May 6, 2016 10.50% {source: Mongol Bank}
CURRENCY RATES – JUNE 30, 2016
Currency Rate
US dollar USD 1,982.25
Euro EUR 2,201.88
Japanese yen JPY 19.31
British pound GBP 2,663.95
Hong Kong dollar HKD 255.48
Chinese Yuan CNY 298.39
Russian Ruble RUB 30.98
SouthKorean won KRW 1.72