1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 438 – August 5, 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:
• Rio Tinto restructuring of Oyu Tolgoi to see CEO step aside
• New Rio Tinto chief says conditions to remain challenging
• Erdenes Mongol chief continues Temasek strategy post election
• Proceedings released from 1st Annual BCM Summit
• Alibaba’s Jack Ma proposes partnership with Mongolian businesses—but only under
the right business environment
• Kincora Copper slashes debt after private placing
• SouthGobi partners with China Western Power for future energy export
• Chinese web platform for arts and jewelry shopping expands to Mongolia
• Hunnu Air launches Ulaanbaatar-Baotou flights
• Mongolia's first E-mart opens
• Toyota distributor open repair and service center
• Mongolian, Chinese chambers of commerce partner for Silk Road initiative
• ‘Live from UB’ premiers in UB
• Trading the chaos: one hedge fund manager’s strategy—AUDIO
Economy:
• Mongol Bank: FX Auctions, 1-week bills
• MSE tallies in nearly MNT100 bn in trade for H1 2016
• Meat prices dropping
• Telecommunications and postal revenue growing
• Goods to travel the road to China’s Tianjin port in August
• Hot weather not expected to impact grain production
• Education minister promises no tuition hikes at universities in 2016
• Battered Mongolia looks to mining, property markets for revival
• UB receives more tourists, says tourism agency
• Flood puts UB’s Bayanzurkh under water
• U.N. offers assistance for urban development at UB
• Sheep smallpox outbreaks in Dundgobi
• Mongolia hosts seminar on maritime sar safety
• New methods revealing formation history of the Hangay Dome in Mongolia
• Siberian silk moth swarms appear across Mongolia
• Women comprise 5% of South Sudan peacekeepers
2. • Compelling evidence that equine flu virus can infect humans
• This 4-foot-tall white-naped crane Is declining quickly in Mongolia
• Snow Leopard Trust doubts claims that wild cat’s population size is under reported
Politics:
• Parliament confirms Erdenebat’s final appointments
• Prime minister appointed 18 provincial governors
• Prime minister assigns duties to his new Cabinet ministers
• Mongol Bank’s first deputy president appointed
• National Statistical Office has new leader
• Concerned MPP affiliates promise to keep a close eye on new Cabinet
• Mongolia, S. Korea parliament offices establish cooperation
• Mongolia cancels registration of N. Korean ships carrying Mongolian flag
• Former President Enkhbayar requests attorney
• Citizens protest purchase of Russia’s stakeholding in Erdenet copper mine
• Northeast Asian Mayors forum launches
• Building new solidarities in Mongolia: Asia-Europe People’s Forum 2016
BCM Updates:
• Announcements
• Advocacy Notes
• Working Groups News
• Job vacancies at member organizations
• 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
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3. Mongolian Business Database International SOS
BUSINESS
RIO TINTO RESTRUCTURING OF OYU TOLGOI TO SEE CEO STEP ASIDE
The indirect 66-percent shareholder in the Oyu Tolgoi copper mine, Rio Tinto Group, has
appointed Armando Torres as managing director of the mine. Torres will take the post
under a restructure of leadership at Oyu Tolgoi, according to an internal e-mail from Rio’s
top copper executive Arnaud Soirat seen by Bloomberg News. Oyu Tolgoi LLC Chief
Executive Officer Andrew Woodley will report to Torres and then leave the operation later
this year.
Oyu Tolgoi consolidating reporting lines for existing operations and the site’s underground
development project. Rio last month appointed new heads of copper and iron ore in a
sweeping management reshuffle.
Source: Cover Mongolia, Bloomberg
NEW RIO TINTO CHIEF SAYS CONDITIONS TO REMAIN CHALLENGING
Rio Tinto’s new chief executive warned that conditions for miners would stay volatile and
challenging this year but insisted that the company could do more to improve its
performance. Faced with commodity markets that turned sharply down last year, and
contributed to a near halving in Rio’s underlying interim earnings from their 2015 level,
Jean-Sébastien Jacques said that Rio would be cautious in trying to make acquisitions. He
said that the company had no plan to increase its majority stake in Canadian miner
Turquoise Hill Resources, owner of the large Oyu Tolgoi copper project in Mongolia, which
had been mooted by some analysts and advisers.
“There is no plan to increase our equity stake in Turquoise Hill,” Jacques said on
Wednesday.
Source: Financial Times
ERDENES MONGOL CHIEF CONTINUES TEMASEK STRATEGY POST ELECTION
The head of Mongolia’s license holder for state-owned mines, Erdenes Mongol LLC, still has
plans to create a more diverse portfolio of mining and infrastructure assets today’s post-
election environment where the government has changed hands from the Democrats to the
Mongolian People’s Party. “We are working to be like Singaporean Temasek,” Bayanjargal
Byambasaikhan, the chief executive officer of the state-owned asset management.
Byambasaikhan said that since he began running the company, Erdenes Mongol has
received an audit from a top-four firm and is currently working to receive a credit rater
from Moody’s Investors Services and Fitch Ratings. “Now we are working to find
investment and development financing is already coming,” said Byambasaikhan.
Erdenes Mongol holds Mongolia’s state-owned shareholdings in most of the strategically
important deposits listed in its mining law, including the Oyu Tolgoi copper-gold mine and
Tavan Tolgoi coking coal mine. “We are USD1 billion company,” Byambasaikhan said.
Source: Undesnii Shuudan
PROCEEDINGS RELEASED FROM 1ST ANNUAL BCM SUMMIT
The Business Council of Mongolia has released its summit proceedings to its first annual
summit held in April, compiling highlights on maintaining stability, expanding capacity and
improving the business environment in Mongolia. The event gathered representatives of
4. BCM’s 220 members, which includes businesses, embassies, NGOs and more, to share
thoughts views on common issues they face and recommended solutions for government.
Foreign direct investment into Mongolia has fallen sharply from the downturn in
commodity prices, which discouraged investment into some mining projects, as well as a
succession of policy mis-steps that have hurt domestic investors, and disenfranchised
foreign investors. The government has made efforts to resolve multiple disputes, many of
which are related to exploration and mining, and include putting in place the project
finance for Oyu Tolgoi’s Phase 2 underground.
Click to read the full report in Mongolian and in English.
Source: BCM
ALIBABA’S JACK MA PROPOSES PARTNERSHIP WITH MONGOLIAN BUSINESSES—BUT ONLY
UNDER THE RIGHT BUSINESS ENVIRONMENT
The chief executive of the Chinese e-commerce website Alibaba, Jack Ma, has expressed
interest to Mongolia’s lawmakers in partnering with local businesses if Parliament can
create the right business framework for doing so. “Alibaba Group is interested in
cooperating with Mongolian businesses in the service, agriculture, investment, and tourism
sectors,” said Ma while asking that lawmakers to consider needs of entrepreneurs when
making decisions on Policy.
The Alibaba head, who was in Mongolia on the invitation of former yokozuna Dolgorsuren
“Asashoryu” Dagvadorj, said the new government under the Mongolian People’s Party had
the chance to recapture foreign investment with the correct policies. “I am happy to have
the chance to talk with you about Mongolia’s business environment and its changes. I feel
more motivated,” he said.
Source: UB Post
KINCORA COPPER SLASHES DEBT AFTER PRIVATE PLACING
Kincora Copper Ltd. last week raised CAD1 million through a private placing to fund its
advanced consolidation and exploration strategy, whilst slashing CAD2.9 million of debt.
The group has issued just over 3.5 million shares at CAD0.30 each, according to a 29 July
statement. The group’s largest shareholder Origo Partners PLC agreed to 6.6 million shares
to settle an outstanding CAD2 million convertible note. Existing funds in escrowed of
USD500,000 have been returned to Origo and conversion of accrued interest into Kincora
scrip is shortly expected.
Subject to regulatory approval, Kincora has also entered into agreements with creditors to
settle debt in the aggregate amount of CAD212,750 in exchange for the issuance of an
aggregate of 709,167 post-consolidation shares. This would grant Kincora a debt-free
balance sheet and funds raised from the non-brokered private placement could be used to
advance its exploration and consolidation strategy in the Southern Gobi copper-gold belt.
Source: Proactive Investors
SOUTHGOBI PARTNERS WITH CHINA WESTERN POWER FOR FUTURE ENERGY EXPORT
SouthGobi Resources Ltd. has brought on China Western Power Industrial Co. Ltd. (CWPC)
for the construction of energy plants that could eventually export energy to China. The
agreement, which marks CWPC first for Mongolia, covers several different projects on
electric-power power plant construction, coal transportation and construction and urban
planning and construction.
China Western Power Industrial Co., Ltd. and Zigong Youhua Science & Technology Group
5. signed a strategic cooperation agreement with SouthGobi Resources and Ulan Bator Buride
Real Estate Co. on the development of quality coal resources and establishing an energy
trade between China and Mongolia.
Source: China Western Power Industrial Co. Ltd.
CHINESE WEB PLATFORM FOR ARTS AND JEWELRY SHOPPING EXPANDS TO MONGOLIA
Takung Art Co., Ltd. (TKAT), an online platform for acquiring shared ownership units in
Asian and Russian fine art, jewelry and precious gems on 28 July introduced its platform
for trading to residents of Russia, Mongolia, Australia and New Zealand—the company's first
major expansion of operations outside of China. Calling the move "one of the landmark
events in the history of the company," Chief Executive Di Xiao said he believed the
expansion could add new registrants and diversify the mix of listings on Takung's trading
platform, and, in time, generate higher trading commission and listing fee revenue.
Source: Takung Art Co. Ltd.
HUNNU AIR LAUNCHES ULAANBAATAR-BAOTOU FLIGHTS
Hunnu Air LLC on 3 August launched its direct flights service between Ulaanbaatar and
Baotou of China’s Inner Mongolia Autonomous Region. Flights will run twice a week, every
Sunday and Thursday.
Source: Mongolia.GoGo.mn
MONGOLIA'S FIRST E-MART OPENS
The South Korean retail giant Emart opened the doors of its big-box store for Mongolia last
week in the capital city. Instead of directly operating the outlet, E-mart has signed a
contract with SKY Trading, a local distribution unit of Altai Group. It exports the brand,
operation management manual and products for a royalty, a first for Korean enterprises.
More than 3,500 customers came to the store by 15:00 on the official opening day, and the
store had to limit their entrance as many as six times. The hypermarket posted
USD353,515 in sales, about three times its estimate, during its soften opening on 26 and 27
July. “About 12,000 items from over 320 Korean companies will be exported,” said a
company source.
“The sales figure might not be as big as that of a branch in Korea, but as the initial
response was explosive, we are seeing a very large growth potential,” he added.
Source: Korean Herald
TOYOTA DISTRIBUTOR OPEN REPAIR AND SERVICE CENTER
An official Toyota repair and service center has opened in Ulaanbaatar. The operator,
Munkhkhada, became the official Toyota distributor in 2013 and opened its auto
exhibitions in Ulaanbaatar in 2014 and 2016. It sells 11 Toyota brand cars and recently
launched the sale of its higher-end Lexus vehicles.
The service center can serve up to 80 cars a day.
Source: Udriin Sonin
MONGOLIAN, CHINESE CHAMBERS OF COMMERCE PARTNER FOR SILK ROAD INITIATIVE
The Mongolian National Chamber of Commerce and Industry (MNCCI) is collaborating with
its Chinese counterpart to help enlist Chinese and Mongolian companies for an economic
corridor for expanding trade in the region. Representatives of Mongolian and China’s
respective chambers signed a cooperation agreement for the project in Ulaanbaatar last
6. week to bring on contractors for the Mongolian Steppe Road initiative. China is helping
finance the construction of a highway through Mongolia that is part of a broader plan
known as the Silk Road Initiative to facilitate trade between them, as well as Russia.
Chinese delegates also signed cooperation agreements with authorities of Bayankhongor
and Khuvsgul Aimags as well as the Zavkhan Food Group of Zavkhan Aimag.
Source: UB Post
‘LIVE FROM UB’ PREMIERS IN UB
A documentary recording the rise of one of Mongolia’s most promising independent rock
groups today will be screened in Ulaanbaatar on 6 August at Tengis Cinema. “Live from
UB”, a documentary by American filmographer Lauren Knapp, follows the band Mohanik as
its attempts to create a new sound for their country and discover what it means to be
Mongolian today. Her film shows Mongolia’s how in the 1970s rock music was the catalyst
for freedom and now is the medium for Mongolian nationalism.
Source: UB Post
TRADING THE CHAOS: ONE HEDGE FUND MANAGER’S STRATEGY—AUDIO
Harris Kupperman (Kuppy) is a Florida-based hedge fund and chief executive officer of TSX
Venture Exchange-listed Mongolia Growth Group. He discussed what he bought the
weekend after Brexit; a trade you can still put on to profit from the Brexit fallout; current
views on emerging markets; what asset is “gold on acid”; and how he’s positioned and has
been playing repeated crisis events.
Listen to the recording here.
Source: Capitalist Exploits
ECONOMY
MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS
The Bank of Mongolia on 4 August sold USD16 million and CNY62.7 million at currency
auctions for closing rates of MNT2,103 and MNT315.55-MNT318.11, respectively. That day,
it accepted commercial banks’ tugrik swap agreement offers for an equivalent of USD49
million and dollar swaps worth 1.5 million. On 27 July, it issued MNT388 billion in one-
week bills at a weighted interest of 10.5 percent.
Source: Bank of Mongolia
MSE TALLIES IN NEARLY MNT100 BN IN TRADE FOR H1 2016
The Mongolian Stock Exchange (MSE) has reported MNT98.6 billion in trades for the first
half of the year. About 87 percent of all trading was for government bonds, according to
the local bourse’s 2016 half-year report, and 13.4 percent for company shares.
The MSE has 58 listed companies, according to the report, including 43 which have are
actively traded, and had delisted six companies as of last May. It kicked off 2016 with its
first and only public offering of the year with Mongol Post JSC, raising MNT12.6 billion.
Source: UB Post
MEAT PRICES DROPPING
Meats prices are down again after a year of rollercoaster ups and downs that started with
last year’s drought and harsh winter conditions. Prices were down for 16 of the 37 meat
products listed from 17 markets throughout Ulaanbaatar, according to data from the
7. Ulaanbaatar Statistical Office. Last year in late fall, prices declined when herders culled
their herds in the expectation of a harsh winter that would result in many animal deaths.
Prices for meat-on-the-bone mutton were down by MNT422, by MNT250 for meat-on-the-
bone beef and by MNT150 for meat-on-the-bone horse meat. Prices for de-boned mutton,
beef and horse meat were down by MNT250, MNT589 and MNT300, respectively.
Source: UB Post
TELECOMMUNICATIONS AND POSTAL REVENUE GROWING
The Telecommunications sector of the Mongolian economy racked in a three-year high for
total revenue for the first half of the year, according to government data. The National
Registration and Statistical Office reported MNT363.4 billion for the first half of the year,
up by 2.6 percent from the same period in 2015. For just the second quarter, revenue was
up by 15 percent compared with the first quarter and by 6.2 percent compared with the
2015 period.
Two-thirds of telecoms revenue for the first half of the year was from mobile phone
service providers, tallying in at MNT239.3 billion, making up two-thirds of the sector’s
income. The number of mobile phone subscriptions grew in the second quarter of this year
for the first time since third-quarter 2016, by 3.6 percent compared with the same period
in 2015.
Source: UB Post
GOODS TO TRAVEL THE ROAD TO CHINA’S TIANJIN PORT IN AUGUST
A pilot program for the trade of goods from China’s seaport through Mongolia’s to Russia
will launch this month as the three nations build stronger trade ties. The highway will start
at China’s Tianjin port, pass through the Mongolia capital city, Ulaanbaatar, and end at
Ulaan Ude in Russia’s Siberia and will help increase the volume of trade between the three
countries. Goods will pass through the three countries between 13 and 25 August, where
afterward authorities will review how smoothly it ran and whether to continue.
The scheme would see trade reach shores beyond the three nations, to destinations such
as South Korea and Japan, from the the Chinese port. Travel time is estimated be cut
down by a fourth of what transport takes today.
Source: Unuudur
BATTERED MONGOLIA LOOKS TO MINING, PROPERTY MARKETS FOR REVIVAL
Just two short years ago, Mongolia basked in a vibrant economy with a sizzling growth rate
of nearly 8 percent. These days, the economy has all but flatlined with the slump in
commodities, but some say hidden gems may be getting lost in the current bout of gloom.
Mongolia's credit rating is considered speculative, and its battered economy is debt heavy.
However, the country has vast reserves of coal and gold. "Macroeconomic policies have
been poor in recent years, which led to a very rapid debt buildup," Nicolas Jaquier,
London-based economist focusing on emerging market debt with Standard Life
Investments, said. "As such, Mongolia is now one of the most indebted frontier markets.”
Despite a moribund mining sector, a new government has encouraged some investors who
see glimmers of hope in the country's battered property category, where a construction
boom has faltered along with the broader economy. Mining "is being developed mainly by
large international mining corporations, such as Rio Tinto and Chinese state-owned
enterprises," said Standard Life's Jaquier, and slowing demand from China could ultimately
snuff out a nascent recovery in mining.
8. Source: CNBC
UB RECEIVES MORE TOURISTS, SAYS TOURISM AGENCY
Tourism to the capital was up 9.7 percent for the first half of the year from a year ago,
according to the Ulaanbaatar City Tourism Department. A total 42,823 individuals visited
Mongolia as of June 2016, with growth in tourism from Japan, the United States, Russia,
and more. However, less visitors came to Mongolia from China and Great Britain.
Source: UB Post
FLOOD PUTS UB’S BAYANZURKH UNDER WATER
Authorities have issues a weather alert after recent incidents of swings between extreme
heat and heavy rainfall. The Ulaanbaatar Emergency Management Agency (UEMA) this
week issued a warning to about extreme heat and flood risk as Weather authorities
predicted temperatures in Ulaanbaatar to range between 15 and 36 degrees Celsius. They
warned the elderly and children against going outside during the day and that the public
should note weather forecasts before traveling.
The UEMA also advised households to prepare for flooding by building dams divert water
away from their properties after flooding occurred throughout Ulaanbaatar last week.
Much of Bayanzurkh District was under water last week, and many small cars were washed
away along a 300 meter stretch of road east of Chinggis Hotel. Teams of emergency
workers worked throughout the capital to remove water from the streets and to provide
assistance to flood-affected families.
See photos of the incident here.
Source: UB Post, 2, Mongolia.GoGo.mn
HOT WEATHER NOT EXPECTED TO IMPACT GRAIN PRODUCTION
A heatwave burning down on Ulaanbaatar is not expected to ravage this year’s wheat
production, as last year’s drought did [Source does not city any statement by a
government authority or meteorological group -ed]. Temperatures have hit 36Celsius and
beyond in Ulaanbaatar and have soared to 40Celsius in the Gobi desert, but a cool down is
expected with the coming of rain.
Last year, Mongolia lost 50 percent of the overall harvest because of hot weather and
drought.
Source: News.mn
EDUCATION MINISTER PROMISES NO TUITION HIKES AT UNIVERSITIES IN 2016
The new minister of education that entered office last month has made it his priority to
prevent any increase in costs for university education this year. The minister said he was
working to control tuition costs in light of the difficult economic climate and smaller
incomes families receive today compared with some years ago.
“We met with directors of state universities, and agreed on not to add universities’
tuition,” said Education Minister J. Batsuuri at a 2 August press conference. He added that
private universities agreed to a similar promise.
Source: Udriin Sonin
U.N. OFFERS ASSISTANCE FOR URBAN DEVELOPMENT AT UB
Ulaanbaatar’s new mayor has taken early steps to partner with the United Nations to chart
a course for sustainable “green” development of the capital. UNDP is ready to support
9. Ulaanbaatar in creating a long-term policy for urban development in the capital that would
run until 2030, said Mongolia Representative Beate Trankmann in a meeting with
Ulaanbaatar Mayor S. Batbold
The UNDP has already launched projects on creating sustainable development objective,
improving local governance and planning for green development, said Trankmann and
asked for the mayor’s support for these initiatives.
Source: Undesnii Shuudan
SHEEP SMALLPOX OUTBREAKS IN DUNDGOBI
An outbreak of sheep smallpox has been reported from towns in Dundgobi Aimag last
month. Reports of the spread of the disease have come from Bayanjargalan and
Tsagaandelger Soums , with 149 sheep put down as a result. Authorities are currently
there and in neighboring counties working to vaccinate livestock against the disease.
Source: Unuudur
MONGOLIA HOSTS SEMINAR ON MARITIME SAR SAFETY
Mongolia hosted its first workshop on safety issues for non-conventional vessels supported
by the International Maritime Rescue Federation (IMRF). Increasing waterborne activities
on the Mongolian lakes has led to the the Mongolian Maritime Administration setting up
legislative, preventive and responsive measures intended to raise awareness and get a
commitment from all stakeholders. The meeting was held at Khatgal on the southern end
of Lake Khuvsgul, which is the second-most voluminous freshwater lake in Asia and holds
almost 70% percent of Mongolia’s fresh water.
The two day workshop, held at the beginning of last month, covered a range of issues
including the development of maritime and domestic water transportation; the use of
water resource as well as current search and rescue activity in the rivers and lakes of
Mongolia.
Source: International Maritime Rescue Federation
NEW METHODS REVEALING FORMATION HISTORY OF THE HANGAY DOME IN MONGOLIA
The Hangay Dome is a mountain range in Mongolia that is interesting for several reasons—
among them its unique look from its numerous summit plateaus that look as if a gigantic
belt sander was laid on the tops of mountains and filed them flat. But the Hangay
fascinates geologists not just because of its appearance, but because its formation—and its
age—have been relatively hard to define. New methods are allowing researchers to create
a picture of what the Hangay looked like when it first formed – and giving geologists a
more dependable way to uncover its history and age.
Enter North Carolina State geologist Karl Wegmann, former Ph.D. student Stephen Smith,
and colleagues at Lehigh University. They used satellite imagery from the Hangay
Mountains to to reveal what the landscape looked like between 13 and 15 million years
ago. "We could see that the Hangay wasn't a flat plain at that time," Wegmann says.
Source: Phys.org
SIBERIAN SILK MOTH SWARMS APPEAR ACROSS MONGOLIA
The migration season for the Asian gypsy moth is at its peak this month and will run until 1
September, according to B. Ganzorig of the Forest Research Development Center. The
moths have swarms 80 counties throughout 16 provinces in the country. The worst hit has
been the Mandal Soum of Selenge Province. Eggs of the Lymintria Dispar, which can be the
10. source of some allergies and respiratory ailments, have been laid over an area of 8000
hectares and the insects are now devouring the forest reserve.
The nearest location to Ulaanbaatar where the migration path crosses is Batsumber Soum
Tuv aimag and Mandal Soum, Selenge Aimag. However, its attraction to artificial light
leads them to the city. The moth is expected to disappear once migration ends.
Source: News.mn, Mongolia.GoGo.mn
WOMEN COMPRISE 5% OF SOUTH SUDAN PEACEKEEPERS
Women are taking a stronger role in Mongolia’s peacekeeping efforts. The Mongolian
Armed Forces has reported that 5 percent of all Mongolian peacekeepers in South Sudan
were women. Mongolia’s Colonel B. Bat-Erdene leads over 700 Mongolian personnel from
40 units and 100 personnel from the specialized duty units, including the Border Protection
Unit, the General Police Department and the National Emergency Management Agency.
Since 2012, a total of 4,250 peacekeepers has served in operations at South Sudan.
Mongolia is also sending 28 officers from the National Emergency Management Agency to
South Sudan.
Source: Mongolia.GoGo.mn, News.mn
COMPELLING EVIDENCE THAT EQUINE FLU VIRUS CAN INFECT HUMANS
Strong evidence exists that the equine influenza virus can occasionally infect humans,
according to scientists who reviewed research from Mongolia and around the world. “The
historical, observational, and experimental data are compelling in supporting the premise
that equine influenza virus infections occasionally occur in man,” researcher Tai Xie and
his colleagues reported in a scientific review that singled out the H7N7 strain as a
particular risk in a comprehensive review of relevant English, Chinese, and Mongolian
scientific literature.
In all, 16 scientific articles met their inclusion criteria for their review. Mongolia, they
noted, has the largest horse-to-man population ratio in the world and has often suffered
large flu outbreaks among horses. After anecdotal reports suggested children in Mongolia
developed respiratory illnesses after exposure to horses with flu infection, members of the
review team conducted a prospective study to investigate human infections with equine
flu virus.
Source: Horse Talk
THIS 4-FOOT-TALL WHITE-NAPED CRANE IS DECLINING QUICKLY IN MONGOLIA
The white-naped crane is hard to miss standing at over over 4 feet tall with its signature
gray and white striped neck, but new research reveals that this could be their last stand in
one of their last strongholds. The drastic decline in breeding crane pairs could be linked to
severe drought. The cranes thrive in wetland ecosystems, preferably with “tall wet
vegetation and low grazing pressure (to allow for nesting).” But an extended drought
showed that over a 10-year period, “Several lakes and whole stretches of river that
supported cranes in 2001 were completely dry by the 2010 survey, and unsuitable for
breeding cranes,” says the WCS.
Unfortunately, the ramifications of wetland decline go much deeper than white-naped
cranes’ nesting areas. While the causes of wetland decline vary (including hydrologic
alteration, urbanization, industrial development, mining, agriculture, and more), the
consequences reverberate through entire ecosystems from the flora and fauna to human
health.
11. Source: Care2
SNOW LEOPARD TRUST DOUBTS CLAIMS THAT WILD CAT’S POPULATION SIZE IS UNDER
REPORTED
The Snow Leopard Trust has release a statement in disagreement to claims that the
population of the wildcat native to Mongolia may be growing. Earlier this month, various
media outlets reported that snow leopards “may be more common than thought” after a
census information appeared in the book titled Snow Leopards. “While we still don’t know
enough to make reliable statements on their global populations and trends, we do know
that the threats to these cats are not decreasing. “
The conservationist group argues that the book’s claims that that the snow leopard
population may be higher than thought is “scientifically unconvincing.” “We believe that
conservation of endangered species should be guided by the best possible science. In the
case of the snow leopard, only few rigorous population and distribution studies exist, and
most of the population estimates are based on extrapolations,” said the Snow Leopard
Trust in a statement.
Source: Snow Leopard Trust
POLITICS
PARLIAMENT CONFIRMS ERDENEBAT’S FINAL APPOINTMENTS
Parliament on 30 July confirmed filled the four remaining seats in Prime Minister
Jargaltulga Erdenebat’s new Cabinet Secretariat. P. Sergelen, the general secretary of the
Federation of Mongolian Horse Racing Sport and Trainers, was appointed as minister of
food, agriculture and light industry; former Ulaanbaatar Mayor G. Munkhbayar is minister
of construction and urban development; the chairman of the National Dermatology Center,
A. Tsogsetseg, is minister of health; and economist P. Gankhuu is Minister of Energy.
Seven of the ministers in the Cabinet also hold seats in Parliament—a violations of the so-
called “double deel” order from the president to keep MPs out of the Cabinet— which did
not escape controversy. “I remember the MPP started opposing the issue of multiple roles
in the parliament in 2008,” said Parliament’s sole Independent member, S. Javkhlan. “MPP
supporters and members held a protest at the central square opposing the practice of
individuals holding multiple roles in the government.”
Source: UB Post, 2
PRIME MINISTER APPOINTED 18 PROVINCIAL GOVERNORS
Government saw sweeping change by Prime Minister Jargaltulga Erdenebat this week. The
Cabinet Secretariat has reformed the entire government structure, liquidating the Marshal
Service and transferring the witness protection agency under police authorities. The
Customs and Taxation Department have been split into two separate agencies.
The result is 17 executive agencies in government:
The State Property Policy and Regulation Department
National Agency of Meteorology and Environment Monitoring
General Department of Customs
General Department of Taxation
General Department of State Registration and Intellectual Property
General Archival Authority
General Authority for Implementing Court Decisions
12. Immigration Agency
General Department of Health and Social Insurance
General Department of Labor and Social Welfare
Family and Youth Development Department
Land management, Geodesy and Cartography
Physical Education and Sports Department
Culture Department
Civil Aviation Authority
Mineral Resources and Petroleum Authority
Agency for Veterinary and Animal Breeding
10 Regulatory Agencies:
General Intelligence Agency
Information Technology, Post and Telecommunications Authority
National Development Agency
State Specialized Inspection Agency
National Emergency Management Agency
Agency for Fair Competition and Consumer Protection
Agency for Standardization and Meteorology
General Police Department
General Authority for Border Protection
General Staff of the Mongolian Armed Forces
Erdenebat has also appointed 18 governors for Mongolia’s provinces:
Arkhangai - Ts. Munkhnasan
Gobisumber - G. Batsuuri
Dornogobi - T. Enkhtuvshin
Uvs - D. Batsaikhan
Uvurkhangai - G. Ganbold
Bayankhongor - G. Batjargal
Dornod - M. Badamsuren
Tuv - J. Batjargal
Orkhon - D. Batlut
Darkhan-Uul - S. Nasanbat
Bulgan - Z. Batzorig
Khentii - N. Ganbyamba
Selenge - Sh. Orgil
Khuvsgul - L. Tumurbaatar
Umnugobi - N. Naranbaatar
Sukhbaatar - Z. Enkhtur
Dundgobi - O. Bat-Erdene
Khuvd - D. Galsandondog
Source: Udriin Sonin, Undesnii Shuudan, UB Post
PRIME MINISTER ASSIGNS DUTIES TO HIS NEW CABINET MINISTERS
Prime Minister Jargaltulga Edenebat has given the orders to his Secretariat Cabinet for his
plans to build a leaner and less costly government that will recapture the foreign
investment lost over the last four year. Foreign investment will be key to building up the
13. economy again, said Erdenebat, after four straight years of slowed economic growth. “The
Government will take steps focused on creating secure legal framework for investors,” he
said. “We need to give special attention to a new level of economic relations with the
international banks and financial institutions as well as countries in development
cooperation.”
Erdenebat has also devised a plan for more efficient government by merging and reforming
government agencies. Only agencies with over 100 staff will require a deputy chair, said
Erdenebat, and on-staff advisors will be prohibited.
Source: UB Post, Mongolia.GoGo.mn
MONGOL BANK’S FIRST DEPUTY PRESIDENT APPOINTED
Parliament confirmed O. Erdembileg has the first deputy president of the Bank of Mongolia
on 30 July. Erdembileg, 40, from 1998 to 2007 worked at the Ministry of Finance and was a
senior economist at the International Monetary Fund until 2013. From 2014 to 2015, he
worked as the advisor to Golomt Bank’s board of directors and in 2015 served as the bank’s
deputy director. He has a Master’s degree in economics for development from Australian
National University.
Source: UB Post
NATIONAL STATISTICAL OFFICE HAS NEW LEADER
A. Ariunzaya is the new chair for the National Statistical Office, receiving her seal for the
office on 30 July. She is a former human resources and insurance manager as well as chief
Manager of the insurance group Mongol Daatgal from 2005 to 2015. She has been head of
the Strategic Planning Department and Economic Policy Department for the Mongolian
People’s Party since 2013.
She has a Master’s degree from Leibniz University of Hanover, Germany.
Source: Montsame
CONCERNED MPP AFFILIATES PROMISE TO KEEP A CLOSE EYE ON NEW CABINET
A group of Mongolian People’s Party members have banded together to create a movement
to monitor the activities of Prime Minister Jargaltulga’s Erdenebat’s Cabinet Secretariat.
The 20 party affiliates called on youths to join them in see that the Mongolian People’s
Party’s promise to create a professional government is fulfilled. “The MPP won the
election on the back of a crisis and the promise to establish a professional government,”
said one of the organizers of the movement, P. Ulziinaran. “Although some unqualified
ministers have been appointed, professionally experienced appointments for the posts of
deputy ministers, state secretaries and agency authorities are still necessary.
Source: Zuunii Medee
MONGOLIA, S. KOREA PARLIAMENT OFFICES ESTABLISH COOPERATION
Mongolian and South Korea’s parliaments plan to increase cooperation between them with
a so-called “E-Parliament” initiative to expand regular communications. Representatives
of the legislatures signed a cooperation protocol on 28 July where South Korean has agreed
to provide a grant to pay for 16 digital cameras, five monitors, 18 speakers and more than
200 microphones.
Source: Montsame
14. MONGOLIA CANCELS REGISTRATION OF N. KOREAN SHIPS CARRYING MONGOLIAN FLAG
Mongolia was said to have revoked its decision to allow North Korean ships to operate
under the Mongolian flag, as part of efforts to implement UN Security Council (UNSC)
sanctions against the North. The Voice of America (VOA) reported on Wednesday that the
Mongolian government canceled the registration and terminated the contracts of 14 North
Korean ships under flag of convenience. VOA said since Mongolia submitted the action plan
to the United Nations, there have been no North Korean ships operating under the
Mongolian flag.
Until the UNSC adopted Resolution 2270 in March in response to the North’s nuclear and
missile tests earlier this year, Ulaanbaatar had allowed more than 400 foreign ships,
including North Korean ones, to register with the country as a Mongolian vessel in return
for tax collections from the ships. Mongolia is the first known country that canceled the
registration of a North Korean ship since the adoption of the UNSC Resolution 2270.
Source: KBS World Radio
FORMER PRESIDENT ENKHBAYAR REQUESTS ATTORNEY
Chairman of the Mongolian People’s Revolutionary Party and former president of Mongolia
Nambar Enkhbayar has filed another appeal with the Association of Mongolian Attorneys
requesting an attorney for his defense. On 1 August, the Independent Authority Against
Corruption (IAAC) delivered its sixth subpoena to Enkhbayar asking him to appear for a
testimony to answer for unspecified criminal activity authorities believe he is involved
with.
Enkhbayar claims that the accusations are politically motivated. The IAAC, meanwhile, has
requested a lawyer for Enkhbayar while the Advocacy Union has not responded to
Enkhbayar’s requests.
Source: UB Post, Unuudur
CITIZENS PROTEST PURCHASE OF RUSSIA’S STAKEHOLDING IN ERDENET COPPER MINE
A group of citizens have petitioned a member of Parliament to help them block a deal that
would allow a private Mongolian company with financial backing from Trade and
Development Bank of Mongolia LLC (TDB) to purchase Russia’s 49 percent shareholding in
the Erdenet copper mine. Former Prime Minister Chimed Saikhanbileg announced the
proposed deal a day before voters hit the polls for Parliament, which resulted in a
landslide victory for the Mongolian People’s Party. “We, citizens of Erdenet, contest the
purchasing of Erdenet Mining Corp.’s 49 percent shareholding belonging to the Russian
government, which has taken place behind curtains by an alleged daughter company of
Trade Development Bank.”
The minister for the Cabinet Secretary, J. Munkhbat, is currently leading a task force to
investigate the controversial deal.
Source: Montsame
NORTHEAST ASIAN MAYORS FORUM
Green growth of cities and green energy solutions were the main focus of a forum held in
Ulaanbaatar this week that gathered the mayors of cities across northeast Asia. The Third
Annual Forum of Northeast Asian Mayors gathered 90 delegates from 20 cities and six
countries on 4 August at the Tuushin Hotel, Ulaanbaatar. Participants discussed
Ulaanbaatar development plans until 2030, large-scale infrastructure projects and more.
Included among the delegates was the mayor of Busan, South Korea, which is where a new
15. airline route connecting Ulaanbaatar launched on 24 June.
Source: Mongolia.GoGo.mn, News.mn
BUILDING NEW SOLIDARITIES IN MONGOLIA: ASIA-EUROPE PEOPLE’S FORUM 2016
Over 750 activists, academics, social movements and civil society representatives from all
over Asia and Europe gathered in Ulaanbaatar between 4 and 6 July to share their
struggles, exchange ideas and build new alliances during the Asia-Europe People’s Forum
(AEPF). The event, organized ahead of the 11th Asia-Europe Meeting for heads of states
(ASEM), offered a valuable space for activists from both regions to share experiences and
develop proposals for common coordination and actions.
Over the course of three days, more than 500 Mongolians from all over the country,
together with 250 international guests were active in a large number of workshops and
meetings. The workshops were organized around seven thematic clusters that
encompassed current global struggles such as climate justice; land and resource grabbing
cases and peace and security issues. Moreover, space was also provided to discuss more
recent developments such as China’s growing influence both in Asia and globally, or the
‘Brexit’ vote and its implications for progressives across the world.
Source: tni
BCM UPDATES:
UPCOMING EVENTS
2016 GERMAN-MONGOLIAN CORPORATE DAYS, 11-12 OCTOBER
GIZ’s Integrated Mineral Resource Initiative (IMRI) and the German-Mongolian Business
Association (DMUV) are jointly organizing the 2016 German-Mongolian Corporate Days
"Made in Germany" on October 11-12, 2016 in Ulaanbaatar.
With more than 400 visitors per day and more than 100 German exhibitors expected, the
German-Mongolian Corporate Days are the most important bi-lateral economic event in
Mongolia. The exhibition’s lecture program covers various disciplines and allows direct
contact with the general public and trade visitors, as well as the decision-makers in
business and pgovernment.
Participation in the conference is free of charge, while exhibition booths will be available
for a small fee. Click here for more information or email rebecca.schmuecking@dmuv-
mn.com.
INVEST MONGOLIA 2016 FRONTIER'S 10TH ANNUAL CONFERENCE IN ULAANBAATAR
The “Invest Mongolia 2016” conference will be held at WHERE? In Ulaanbaatar on 5and 6
September. The 11th Asia-Europe Meeting held in Ulaanbaatar and the change of power in
government to the Mongolian People’s Party are expected to improve investor sentiment.
However, the really important issues from now on will be whether the government’s plan
of action for the next four years will be feasible, consistent, friendly and acceptable for
investors. This conference is one the of the largest events in Mongolia, and it serves as a
platform of bringing in people from the government, key industry players, financial
institutions and global investors all in one place where they get a chance to talk about
several socio-political and economic developments from throughout the year.
Registration is free of charge. For further inquiries, email conference@frontier.mn.
16. BCM ADVOCACY NOTES
New Regulations on Certificates of Origin
BCM hosted a consultative meeting regarding soon to be implemented new regulation on
Certificate of Origin on Wednesday, August 3rd. The meeting was attended by 16 people
representing BCM members operating in logistics, import, mining and banking sectors;
other business associations such as Amcham, MNCCI, CEO Club and General Customs Office
official. Key concerns regarding the new requirement asking Original Certificate of Origin
on all imported goods to receive Most Favored Nation (MFN) tariff rate on Customs taxes
were discussed among participants and clarifications were made from the Customs official.
The new regulation will be in force starting October 1st this year. BCM intends to pursue
this issue further and strongly advocate the concerns of business community with the
support of other business associations and other stakeholders.
BCM WORKING GROUP NEWS
BCM’s Energy and Environment Working Group Meeting, 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.
- Risk and Legislative Working Groups' Joint Meeting on the "DRAFT AMENDMENT OF THE
LAW ON DISASTER PROTECTION" 16 June 2016
- Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June
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
JOB VACANCIES AT MEMBER ORGANIZATIONS
- IFC is hiring Investment Officer. Deadline for application: August 16, 2016. For more
information please click here
- Areva Mongol is hiring French Language Translator. For more information, call (976)
320698 ext-115
- ZAMine is hiring Sales Representative, Parts Sales Representative and Driver. Deadline for
application: August 08, 2016. For more information: call 75773370, 99045802
17. - The U.S. Embassy is hiring Administrative clerk. Deadline for application: 5 pm August 08,
2016. For more information: please click here
- The British Embassy is recruiting a Press & Public Affairs Assistant who will provide
general support to the Political & PPA section of the British Embassy. The chosen
candidate will play a key role in helping to upgrade the Embassy’s Facebook and Twitter
channels, including launching and delivery of Mongolian content.
Only short-listed candidates will be contacted, and the position is on a fixed-term basis for
six months. Click here to apply.
- Mercy Corps is hiring Director of Programs. Deadline for Application: August 10, 2016. For
more information: Please refer to website here
Please click here to view full list of Job Vacancies at member organizations.
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.
18. 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]
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 – 5 AUGUST 2016
Currency Rate
U.S. dollar USD 2,098.30
Euro EUR 2,335.30
Japanese yen JPY 20.66
British pound GBP 2,788.43
Hong Kong dollar HKD 270.52
Chinese Yuan CNY 316.05
Russian Ruble RUB 31.55
SouthKorean won KRW 1.88
