BCM weekly news

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 440 – August 19, 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 to hires 1,000 workers for underground mine
• Thiess awarded extension at MMC’s Ukhaa Khudag coal mine
• Aspire’s railway unit kicks of Erdenet-Ovoot rail feasibility study
• India’s Shopzippy to enter Mongolia
• Areva picks up 6 exploration licenses
• Construction launches on greenhouse agro park
• Khan Bank hikes ATM fees
• MGG buckled in for more tough times
• APU H1 profits up 67.2%
• Erdenes Mongol: driving a strategic transformation
• SouthGobi appoints non-exec director
• Wolf Petroleum appoints board members
• AmCham Mongolia to host 2016 American Days Expo
• EBRD to underwrite Centerra’s $150 mn financing for gold project in Turkey
Economy:
• Mongol Bank: FX Auctions, 1-week bills
• Mongolia jacks up interest rates in effort to halt currency's plunge
• Tugrug’s 22-day slump to record low marks Mongolia crisis
• Forget the pound, this is the worst performing currency in the world
• GDP grows 3 percent in H1 2016
• Mongolia’s foreign trade falls 12.9 percent
• Unemployment falls to 10.4%
• Government owes MNT1.7 billion to athletes
• IMF representatives lauds premier’s ‘bold actions’
• Mongolia discusses more infrastructure with AIIB vice president
• Mongolia to lend to farmers for crop protection
• Foot-and-mouse disease outbreak at Gobisumber
• Australian doctors treat Mongolian child burn victims
• Kuwaiti aid to pay for construction of burn treatment center
• Is the gloomy outlook on the Chinese economy overdone?
• Citigroup sees No ‘Significant Wave’ of Copper Supply Looming
• Mongolia weighs New Economic Recovery Plan—VIDEO

2. Politics:
• Premier promises to cut his, president and MPs salaries
• Mongolia and China arrange prisoners exchange
• Former president Enkhbayar faces fresh corruption allegations
• Widow of assassinated politician Zorig held incommunicado
• Three Chinese suspects arrested for credit fraud
• Mongolia at the Rio Summer Olympics
• Chinggis Square reverts to name of national hero Sukhbaatar
• Peace Corps celebrates 25 years in Mongolia
• Catholic church prepares for ordination of first native priest
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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Mongolian Business Database International SOS
BUSINESS
BCM PROMOTES INCORPORATION OF PRIVATE SECTOR INPUT INTO GOVERNMENT POLICY
The Business Council of Mongolia has made moves to engage the new government under
Prime Minister Jargaltulga Erdenebat to ensure better business policies for companies in

3. Mongolia. Last April, BCM held a its first annual summit gathering its 200-plus members
together for discussions on how the business sector can be improved here. The new
government elected into office last June has received results of that event in the form of
BCM's post-summit notes. The document summarize three key focuses: maintaining a
stable business environment that is shielded from sweeping changes; developing a skilled
workforce; and setting the stage for improved fundamentals for investments, such as
better business ethics and a privatized stock exchange.
"Mongolia is competing with 200 plus countries to attract investment," said BCM Executive
Director Mergen Chuluun. "Only by promising more friendly environment & better
opportunity & by consistently demonstrating delivery on promises, success can be
achieved."
Source: The Official Gazette
THIESS AWARDED EXTENSION AT MMC’S UKHAA KHUDAG COAL MINE
Engineering and service provider Thiess has been awarded a four-year contract extension
by Energy Resources LLC at the Ukhaa Khudag coal mine, delivering up to USD1 billion of
revenue during the next seven years. The contract extension complements the current
eight year agreement signed in 2008 and results in Thiess continuing mine operations and
maintenance delivery until 2022. “It demonstrates Thiess’ ability to deliver world class
mining solutions to our clients across our global platform, irrespective of location,” said
Marcelino Verdes, the executive chairman and chief executive officer of Thiess’ parent
company, CIMIC.
Energy Resources is the mining unit owned by Hong Kong-listed Mongolian Mining Corp.
(MMC) for mining the coal mine. Thiess is responsible for mining services at the coal mine,
including fleet operation and maintenance for overburden stripping, coal mining and blast
drilling under an alliance structure, with involvement also in mine planning and health,
safety and environmental management.
Source: Thiess
OYU TOLGOI TO HIRES 1,000 WORKERS FOR UNDERGROUND MINE
Oyu Tolgoi LLC has hired more than 1,000 workers including subcontractors since the
launch of the underground expansion project that will unlock 80 percent of the wealth
there over the next five-to-seven years. The more-than USD5 billion project is expected to
need up to 3,000 workers for construction, of which more than 90 percent should be
Mongolian, according to the 2009 investment agreement.
The mine, which is 66 percent owned by Rio Tinto Group subsidiary Turquoise Hill
Resources and 34 percent by the Mongolian government, has hired Jacobs Engineering
group to lead procurement, construction and management. Underground mine services and
conveyor tunnel construction work will be done by a joint venture between Thiess Pty and
the Mongolian company Khishig Arvin.
Source: Unuudur
ASPIRE’S RAILWAY UNIT KICKS OF ERDENET-OVOOT RAIL FEASIBILITY STUDY
Mongolian metallurgical coal explorer and infrastructure company Aspire Mining Ltd. has
kicked off the first stage of the rail feasibility study for the Erdenet-to-Ovoot railway. The
first stage rail feasibility study is expected to be completed by December 2016. The
corporate finance arm of Quam Ltd, a financial services group listed on the Hong Kong
Stock Exchange, has secured interim short-term funding of USD2 million from a group of

4. investors, including large shareholders in Aspire, to progress time-sensitive preparation
work on the ground in Mongolia and complete the first-stage rail feasibility study and
environmental surveys.
The railway project aims to build part of the new Northern Rail Economic Corridor linking
China with Russia through Mongolia, which means the project will have priority funding
status from Chinese banks.
Source: Aspire Mining Ltd.
INDIA’S SHOPZIPPY TO ENTER MONGOLIA
Shopzippy, which is India’s first free assisted e-commerce startup, has decided to take its
platform to Mongolia. The company is expanding its business in different geographies with
a localized approach. Global e-commerce is growing at an unprecedented scale and this
huge untapped market as well ease of doing business is triggered to go beyond Indian
borders to carry-out business.
Ranadheer Reddy, the founder of Shopzippy said he has seen first hand the popularity of
Indian goods and culture around the world. “I get to see some people inquiring specialist
of Indian stuff which is very expensive in local markets. This gave me a big hint to go
global,” he said. He added that the company prefers joint ventures with local partners
because of knowledge and operational flexibility.
Source: Montsame
AREVA PICKS UP 6 EXPLORATION LICENSES
Areva SA is set to explore 11 different sites in Sukhbaatar Aimag for uranium after
receiving six new licenses for the eastern province. The new licenses were awarded to
Areva exploration unit for it’s 70 percent owned exploration unit Cogegobi LLC.
Source: Zuunii Medee
CONSTRUCTION LAUNCHES ON GREENHOUSE AGRO PARK
Chandmani Park LLC this month has launched construction of 60 green houses for growing
vegetables during winter. The industrial park covers 800 square meters.
Source: Unuudur
KHAN BANK HIKES ATM FEES
Khan Bank LLC has raised its ATM fee for cash withdrawals to between MNT150 and
MNT200 per action. ATMs sponsored by the bank will charge MNT150 for transactions up to
MNT100,000 and MNT250 for anything larger. The hike is a consequences of technical
innovations introduced, said the bank.
Source: Unuudur
MGG BUCKLED IN FOR MORE TOUGH TIMES
The real-estate development firm Mongolia Growth Group Ltd. is preparing for even
tougher times despite optimism that a new government will improve economic conditions
in Mongolia. The TSX Venture Exchanged-listed company is continuing to improve its
operations and reducing costs by 85 percent in the second quarter of the year compared
with the same period in 2015. Rental revenue was down 7.3 percent as a glut in
commercial space pushes down rental prices.
Despite these challenges, the chair and chief executive officer of the company, Harris
Kupperman, said he is still confident in the fundamentals in the country, and has

5. demonstrated as much with the repurchase of 142,000 shares for CAD57,417. “It seems
very clear that the economy has not yet bottomed,” he said. “Our goal during this
downturn is to lose as little as possible and preserve the value of our company for when
the recovery arrives.”
Source: Mongolia Growth Group Ltd.
APU H1 PROFITS UP 67.2%
The beverages manufacturer APU reported a 67.2 percent rise in net profits for the first
half of the year. APU reported in its half-year statement MNT9.7 billion in net profits for
the first half of the year, partially due to a better exchange rate for the tugrug at the time
of its reporting.
Source: Montsame
ERDENES MONGOL: DRIVING A STRATEGIC TRANSFORMATION
Mongolia’s state-owned mining license holder, Erdenes Mongol LLC, will continue to
expand its portfolio into infrastructure and energy assets as it moves in a direction to
model its business after the Singapore-owned investment company Temasek. “Strategic
transformation of Erdenes Mongol, from a state owned enterprise to become an
independent investment company, is a matter of the highest importance,” said the
company in a 18 August statement, naming Temasek, Rio Tinto Group and BHP Billiton as
its core models.
Included in Erdenes Mongol’s list of objectives were professionalizing Mongolia’s
businesses, attracting world class partners, creating more employment opportunities and
building a more skilled workforce.
Source: Erdenes Mongol LLC
SOUTHGOBI APPOINTS NON-EXEC DIRECTOR
SouthGobi Resources Ltd. has appointed Joseph Belan as an independent non-executive
director, it announced on 16 August. Belan, aged 42, is the chairman and founder of
Novatrek Capital, a corporate advisory and investment firm with the primary industry
focus in the industrial and metals and mining sectors. Prior to establishing Novatrek
Capital in 2013, Belan was an investment banker specializing in the industrial and metals
and mining sectors with each of Merrill Lynch, Goldman Sachs and Credit Suisse First
Boston. He was the Managing Director of Pala Investments Ltd., a mining focused
investment company and as part of his role with Pala. He was appointed as interim chief
executive officer of Coalcorp Mining Inc. and directed its restructuring and asset
divestment initiatives during 2009 and 2010.
Source: SouthGobi Resources Ltd.
WOLF PETROLEUM APPOINTS BOARD MEMBERS
Wolf Petroleum Ltd. has appointed Xue Dongping as chairperson, Johnson Xiang Qian
Huang as a non-executive director and Jack James as non-executive director, according to
a 17 August statement from the company. Dongping has led a career in real estate
development and corporate governance as the general manager and vice president of
Hengfeng Real Estate Development Co. Ltd and executive director of Hunan
HengfengWanjun Group Co. Ltd. She is currently the chairperson of SAM Investment Group
Co Ltd. where she is responsible for the development of major decisions, industry
development and strategic deployment.

6. Huang is an experienced CPA qualified accountant and director having a career spanning
nearly 20 years within the financial services sector, while James has over fifteen years of
experience in chartered accounting specializing in corporate advisory and reconstruction.
Source: Wolf Petroleum Ltd.
AMCHAM MONGOLIA TO HOST 2016 AMERICAN DAYS EXPO
The American Chamber of Commerce in Mongolia (AmCham Mongolia) will host its third
annual 2016 American Days Expo on 24 and 25 September at Misheel expo center jointly.
This two-day exhibition being held in partnership with the U.S. Embassy in Mongolia will
have a special emphasis on showcasing U.S. products and services to the public at large
and aims to build broader awareness of the capacity of companies in Mongolia that are
offering world-leading expertise and technology.
Last year’s event featured over 80 exhibitors and thousands of visitors.
Source: Mongolia.GoGo.mn
EBRD TO UNDERWRITE CENTERRA’S $150 MN FINANCING FOR GOLD PROJECT IN TURKEY
Gold miner Centerra Gold Inc. has gained a second underwriter in the form of the
European Bank for Reconstruction and Development (EBRD) for its USD150-million project
financing term loan that it will use to develop the Öksüt project in Turkey. Toronto-based
Centerra advised on 12 August that the EBRD would enter the facility investing USD75
million, representing the bank’s first mining investment in Turkey. Centerra said it expects
to meet all conditions on the financing facility by the end of September.
The company’s Turkish subsidiary Öksüt Madencilik Sanayi ve Ticaret will use the facility to
finance a substantial portion of the construction, development and operation of the Öksüt
gold mine and its related infrastructure. The facility has a 5.75-year term and fixed
interest at the London interbank offered rate plus 2.65 percent to 2.95 percent, depending
on project completion status, with no obligatory gold hedging requirements.
Source: Mining Weekly
ECONOMY
MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS
The Bank of Mongolia on 16 August sold USD26 million and CNY93.2 million at currency
auctions for closing rates of MNT2,2243.81 and MNT332.35-339.50, respectively. That day,
it accepted commercial banks’ tugrug swap agreement offers for an equivalent of USD17
million and USD1.4 million for U.S. dollar swaps. On 12 August, it issued MNT194.9 billion
in one-week bills at a weighted interest of 10.5 percent.
Source: Bank of Mongolia
MONGOLIA JACKS UP INTEREST RATES IN EFFORT TO HALT CURRENCY'S PLUNGE
Mongolia raised its benchmark interest rates by 4.5 percentage points to 15 percent on
Thursday, the central bank said, in a bid to stabilize a currency that has been in free-fall.
The new finance minister, Battogtokh Choijilsuren, warned the 3 million strong nation last
week that the government would struggle to pay out wages, prompting a collapse in
Mongolia's sovereign bonds. Analysts say the current crisis was a result of the previous
government's attempts to reverse the decline in foreign investment through debt and fiscal
expansion. “Policy settings in recent years have been very loose, and contributed to

7. pressures on Mongolia's external accounts," said Andrew Fennell, associate director, Asia
Pacific Sovereigns, at Fitch Ratings in Hong Kong.
"We view the rate hike as a potential sign that policy priorities have moved towards
stabilizing these ongoing external pressures," he said.
Source: Reuters
TUGRUG’S 22-DAY SLUMP TO RECORD LOW MARKS MONGOLIA CRISIS
Mongolia’s tugrug is in its longest losing streak on record with the economy in the grips of
a crisis so severe that the newly elected government run by the Mongolian People’s Party
felt obliged to tell the nation last week that they may not be able to pay salaries to
soldiers and public health staff. Falling commodity prices—key export copper has
recovered little since touching a seven-year low in January—have made the country of 3.3
million vulnerable. The International Monetary Fund flew in this week for talks as a
slowdown in China and anti-investment laws passed by the former government scared
away foreign investors.
Click here for charts that show the fall in economic growth; the fall in commodity prices;
the crash of the tugrug; and the growth in social spending
Source: Bloomberg
FORGET THE POUND, THIS IS THE WORST PERFORMING CURRENCY IN THE WORLD
The pound it is by no means the worst performing currency in the world during the month
of August. That auspicious honor falls to Mongolia, the sparsely populated east Asian
country wedged between China and Russia. The country's currency, the tugrug, has fallen
for 22 consecutive days against the dollar, making for the worst run since at least 1993,
according to data compiled by Bloomberg. In 22 days, the tugrug has fallen by 7.8 percent
against the dollar since the beginning of August, making it by far the worst performer of
all currencies tracked on Bloomberg's terminal. In 2016, it has fallen more than 11
percent.
The pound has fallen 14 percent since Britain voted to leave the European Union, but is
only down roughly 3 percent on the dollar since August 2. Most of sterling's recent fall
came in late June and early July, when it dropped like a rock following the decision to
leave the European Union. Things are so bad for Mongolia that the International Monetary
Fund has dispatched a delegation to the country to begin talks about solving its economic
challenges, local television reported, according to Bloomberg.
Source: Business Insider
GDP GROWS 3 PERCENT IN H1 2016
GDP in the first half of the year grew by 3 percent compared with the same period in 2015.
The figure, which is the basis for determining economic growth, also grew by 0.8 percent
from the first quarter.
Source: Mongolia.GoGo.mn
MONGOLIA’S FOREIGN TRADE FALLS 12.9 PERCENT
Mongolia’s global trade was down 12.9 percent, with a 9.6 percent fall in exports that lead
to a widening trade surplus. Imports also fell by by 17 percent, according to the National
Statistics Office, as Mongolia grapples with a depreciating currency. Exports made up
USD2.54 billion worth of goods, while imports were USD1.8 billion. The trade balance
surplus grew by 17.4 percent to USD709 million during the period compared with 2015.

8. Source: Montsame
UNEMPLOYMENT FALLS TO 10.4%
Unemployment has fallen to a national average of 10.4 percent. The number of
unemployed fell by 1.7 percent to 30,500 in the first half the year from the same period in
2015. the data shows that 62.5 percent of unemployed are male.
Source: Mongolia.GoGo.mn
GOVERNMENT OWES MNT1.7 BILLION TO ATHLETES
The government is falling behind on its monthly payments it’s promised to pay to medalists
at the Olympics. The Cabinet Secretariat on 10 August decided it should deal with the
budgetary matter where none of the 2,069 athletes and coaches have received the total
MNT1.7 billion in government allowances promised by the government.
Mongolia has paid athletes who win competitions such as the Olympic Games since 1997,
and today pays MNT4 million a month to gold medalist for life. Silver medalists are
promised MNT3 million a month and MNT2 million for bronze. Medalists in similar global
competitions are due MNT2 million for gold, MNT1 million for silver and MNT500,000 for
bronze. Mongolia currently has 43 athletes competing at the summer Olympic Games in
Rio, Brazil.
Source: News.mn, Montsame
IMF REPRESENTATIVES LAUDS PREMIER’S ‘BOLD ACTIONS’
The International Monetary Fund has lauded the new government’s candid remarks about
the economic crisis they are facing amid growing debt and a sliding valuation of the
tugrug. In a meeting with Prime Minister Jargaltulga Erdenebat, representatives of the
International Monetary Fund (IMF) advised that the new government was making a good
start in its first weeks of government rule. “Informing the financial reality to the public
and combining the separated budgets are good start for Mongolia to overcome the
economic crisis. Now you need to continue those bold actions with right solutions,” said
the resident representative for Mongolia, Neil Saker.
Saker and the deputy division chief, Koshy Mathai, also recommended that they help
commercial banks ease their restrictions on the trade for dollars. “Mongolia faces high
demand of dollar every Augusts,” said Erdenebat in response. “However, this time the
U.S.D. rate has exceeded the actual demand and it’s affected the purchasing power of
citizens as well as both entities and citizens with dollar loans".
Source: Mongolia.GoGo.mn
MONGOLIA DISCUSSES MORE INFRASTRUCTURE WITH AIIB VICE PRESIDENT
Representatives of China’s Asian Infrastructure and Investment Bank have met with top
Mongolian officials to discuss financing deals for Mongolia’s badly needed infrastructure
improvements amid tough economic conditions. AIIB Vice President D. J. Pandian met with
Prime Minister Jargaltulga Erdenebat and Roads and Transportation Minister D. Ganbat to
discuss Mongolia’s needs for expanding its railways, which would cut down on costs for
coal exports. “Estimates show that Mongolia will need around 10,000 freight trains in the
near future, in connection with the nation’s mining and industrial development,” said
Ganbat.
Mongolia is a founding member of the Chinese bank, which was established to rival similar
groups that China says are dominated by Western institutions, such as the World Bank. In

9. addition to the 10,000 freight trains, Ganbat said Mongolia needed financing to build a
fabrication factory for the locomotive wagons, 205 kilometers of paved road and to
complete an airport in Umnugobi Aimag.
Source: UB Post
MONGOLIA TO LEND TO FARMERS FOR CROP PROTECTION
The Development Bank of Mongolia will lend MNT11.6 billion to farmers this year for
protecting this year’s crop productions. Last year, drought wreaked havoc on Mongolian
crops, putting food security at risk and setting up the conditions for what could have been
a disastrous winter because of insufficient animal fodder supply.
Source: Unuudur
FOOT-AND-MOUSE DISEASE OUTBREAK AT GOBISUMBER
Authorities have quarantined a town in Gobisumber Aimag to prevent the spread of foot-
and-mouth disease. The disease has spread to 173 cows Sumber Soum, resulting in the
death of three cows and 16 that have been put down. Animal disease officials have
vaccinated 145,000 livestock in the neighboring four counties.
Source: Unuudur
AUSTRALIAN DOCTORS TREAT MONGOLIAN CHILD BURN VICTIMS
A team of Australian doctors have arrived in Mongolia for treating burn victims in Mongolia.
A reception hosted by Australian Ambassador John Langtry was held on 15 August in
celebration of the arrival of the team from the Australian group Interplast. Mongolian
doctors at the National Trauma and Orthopedic Research Hospital and Khuvsgul United
Hospital will work with the team and learn the latest methods in plastic and reconstructive
surgery, anesthetics and burns treatment.
The Interplast team consists of surgeon Kirstie MacGill, anaesthetist David Pescod, nurses
Lynne Sullivan and Angela Doherty, and hand therapist Diana Francis. Interplast first
commenced programs in Mongolia in 2008 in cooperation with the Ministry of Health. Its
long-term objectives are to improve the quality of life of people living with disability as a
result of congenital or acquired medical conditions and to increase their access to local
health systems.
Source: Mongolia.GoGo.mn
KUWAITI AID TO PAY FOR CONSTRUCTION OF BURN TREATMENT CENTER
Mongolia will use USD12 million in aid from the Kuwaiti government to build a burn
treatment center, Prime Minister Jargaltulga Erdenebat has said. The prime minister told
the Kuwaiti Ambassador Yateem Al-Fadhi in a 16 August meeting that he would like to
grant aid offered by the country in 2006 to build the medical facility.
Al-Fadhi added that his country said that Kuwait could also help Mongolia finance the
construction of an extension to the Undurkhaan Airport.
Source: Montsame
IS THE GLOOMY OUTLOOK ON THE CHINESE ECONOMY OVERDONE?
It has not been a great week for China bulls. Data out at the end of last week pointed to a
slowing mainland economy and the International Monetary Fund has warned darkly of the
risk of defaults on USD6trillion of shadow banking products. It is possible, though, that the
gloom is overdone. “Our analysis of 765 banks in China indicates that recapitalization and

10. bailouts have started and made unexpected (and under-appreciated) progress,” notes
Jason Bedford, an analyst at UBS in Hong Kong in a detailed analysis in mid-August.
Bedford’s study is one of several indicators that suggest things are not as dire as
conventional wisdom suggest. A benign outcome for China’s slowing economy of course is
still not a given. After all, “bad debt accumulation is still rising,” Bedford notes. “The
growth of the problem could outpace the solution.”
Source: Financial Times
CITIGROUP SEES NO ‘SIGNIFICANT WAVE’ OF COPPER SUPPLY LOOMING
The world is not about to be swamped by copper, according to Citigroup Inc. Growth in
supply will fall significantly short of demand through 2020, tempering the bearish
sentiment that’s made copper the worst-performing metal this year. Global copper mine
supply will be one million metric tons a year higher by the end of the decade, Citigroup
analysts including David Wilson said in an e-mailed note. That’s less than the 1.6 million
tons of demand growth that Citigroup predicts. The metal used in wires and cables has
risen only 1.6 percent this year, much less than its peers on the London Metal Exchange, as
mine supply increased in the first half.
The view contrasts with Barclays PLC, which argued last month that copper will come
under pressure as supply outweighs demand every year through 2020. Goldman Sachs
Group Inc. sees a “supply storm” brewing with about one million tons of incremental
supply through the first quarter of next year. For Citigroup, mine output won’t grow
quickly enough through 2020 after years of spending cuts, constrained project funding and
a decline in ore grades.
Source: Bloomberg
MONGOLIA WEIGHS NEW ECONOMIC RECOVERY PLAN—VIDEO
Mongolia's prime minister is considering new measures to tackle an economic crisis with
slowing growth, a declining currency and a soaring budget deficit.
Click on the Source to view the video.
Source: Bloomberg
POLITICS
PRIVATE SECTOR WANTS STABILITY & IMPROVED BUSINESS ENVIRONMENT
The first Annual Summit by the Business Council of Mongolia was held last April, but the
message from the business community has not changed. According the Executive Director
Mergen Chuluun, "The new Government has not yet formulated its Action Plan.
Furthermore, Prime Minister Erdenebat informed that an action plan for overcoming the
economic hardship will be developed. We believe both needs to incorporate inputs from
the business sector. The private sector accounts for up to 80 percent of the GDP.
Therefore, the voice of wealth producers (i.e. the private sector) needs to be passed to
the government. We are confident our inputs on specific issues will be incorporated in the
above"...
Source: Daily News
PREMIER PROMISES TO CUT HIS, PRESIDENT AND MPS SALARIES
Not even the president will be spared from pay cuts to civil servants as the government
looks for cost savings amid growing debt, and a falling exchange rate for the tugrug. The

11. president, prime minister and MPs will receive 30 percent pay cuts, said Finance Minister
Battogtokh’s on 13 August, following his statement last week where he painted a dire
picture for the economy with total GDP growth expected to be less than 2 percent for the
year. Prime Minister Jargaltulga Erdenebat and the finance minister have told reporters
that they will save on public expenditures by cutting the salaries of government workers.
Other high-ranking civil servants will have their salaries cut by 20 percent, they said, but
normal employees’ wages would be unaffected. The heads of state-owned companies,
however, would have their monthly incomes cut by 30 to 60 percent.
Last week, the prime minister said he planned to help the country survive the ordeal by
attracting more foreign investment, giving assistance to small companies and continuing
the 8 percent subsidized mortgage program.
Source: Mongolia.GoGo.mn, 2, 3 Montsame
MONGOLIA AND CHINA ARRANGE PRISONERS EXCHANGE
Mongolia has formally requested a prisoner exchange with China for the return of four
Mongolian citizens. Mongolia has promised to send back two Bangladeshi and one Chinese
citizen serving prison sentences in Mongolia for the swap. The Mongolian prisoners are
currently spending sentences in South Korea, Turkey, China and Malays.
Earlier this year, Mongolia received one inmate serving a sentence in China. Mongolia has
signed agreements for prisoner exchanges with nine countries in the hopes of seeing the
return of the 130 Mongolians currently serving time in foreign prisons.
Source: News.mn
FORMER PRESIDENT ENKHBAYAR FACES FRESH CORRUPTION ALLEGATIONS
Former president and prime minister Nambar Enkhbayar is facing fresh allegations of
corruption and fraud from an investigation by the Independent Agency Against Corruption.
The investigation is still ongoing, according to State General Prosecutor’s attorney G.
Byasman
Enkhbayar has been free for three years since he was pardoned after serving a year of his
sentence for graft. He has missed the several orders by Mongolian law enforcement
officers to appear for testimony on the claim that he lacked representation.
Source: News.mn
WIDOW OF ASSASSINATED POLITICIAN ZORIG HELD INCOMMUNICADO
The wife of the assassinated politician S. Zorig has remained in detention for nearly a year
waiting for trial. Zorig’s widow, B. Bulgan, has been kept in prison without being
permitted to make any statement to media about her arrest, and very littler information
about the case has been made public.
Zorig’s murder on 2 October 1998 to Mongolia is comparable to the assassination of the
late U.S. president John F. Kennedy. Known as the “Golden Swallow of Democracy,” Zorig
gained notoriety in 1990 after leading huge pro-democracy rallies that led to the end of
the seven-decade rule by the Soviet Union. He is said to have defused an episode that
could have turned to violence comparable to the massacre in China’s Tiananmen Square by
persuading 10,000 pro-democracy reformers to stage peaceful protest rather than confront
armed soldiers.
Source: News.mn
THREE CHINESE SUSPECTS ARRESTED FOR CREDIT FRAUD

12. Three Chinese citizens have been arrested in Mongolia for credit card fraud. Police
arrested the suspects after fining more than 10 allegedly fraudulent credit cards on them.
Police said the arrested individuals opened accounts using illegally attained information
from customers of the American institutions Champion Credit Union. They next used the
cards to make cash transactions at shops using point-of-sales systems, police said.
Police said they do not know how much money was lost from the scam.
Source: Udriin Sonin
MONGOLIA AT THE RIO SUMMER OLYMPICS
Mongolians athletes have taken home silver and bronze medals in judo and boxing,
respectively, from the Summer Olympic Games in Rio de Janeiro. Mongolian boxer D.
Otgondalai won the bronze for the 60 kilogram division on 14 August. He was defeated
three-to-zero by the French boxer Sofiane Oumiha in the semi-final match. The Mongolian
judoka L. Otgonbayar, however, just missed the bronze in the 90 kilogram category after
losing in the semi-final. Otgonbayar reportedly underwent tendon surgery last week due to
an injury sustained during his bouts. Mongolia ranked 55th in the world for the number of
metals it’s won.
Former Olympic medalist N. Tuvshinbayar also lost his chance for a metal after his defeat
in the quarter finals against Cuban competitor Jose Armenteros in the 100 kilogram
division. The female weightlifter M. Ankhtsetseg also failed to earn a medal for the 69
kilogram division, but did break the national record for Mongolia weightlifters with a 237
kilogram lift. This year’s Olympics also so the appearance by the first Mongolian referee
official, Bukhbat Mashbat. He is the general secretary of the Mongolia Judo Association.
Source: News.mn, 2, 3, Montsame, Mongolia.GoGo.mn, Montsame
CHINGGIS SQUARE REVERTS TO NAME OF NATIONAL HERO SUKHBAATAR
An administrative court in Ulaanbaatar has ruled in favor of a member of the family of the
figure credited with Mongolia’s independence in 1919 from China to change the title of
Chinggis Square back to Sukhbaatar Square. D. Sukhbaatar is a war hero remembered for
his role in allying Mongolia with Russia to expel the Chinese occupiers under the Manchu
Empire. A member of Sukhbaatar’s lineage, Z. Khaidar, contested the decision. At that
time, Khaidar, who is the great-great grandson of Commander D. Sukhbaatar, contested
the decision to rename Sukhbaatar Square after Chinggis Khaan and applied for a court to
change it back. “The Administrative Court has finalized the name of the main square of
Ulaanbaatar today. and from now on the square will be named after Sukhbaatar, hero of
the Mongolian People’s Revolution,” he said.
Former Mayor Erdene Bat-Uul of the Democratic Party changed the name from Sukhbaatar
in 2013 as part of his movement to turn away from the city’s Soviet-socialist past.
Source: Mongolia.GoGo.mn
PEACE CORPS CELEBRATES 25 YEARS IN MONGOLIA
The U.S. Peace Corps last week celebrated its 25th anniversary of its mission in Mongolia.
Forty-seven recent inductees, former volunteers and guests from Washington D.C.
gathered at the Opera House on 13 August. The U.S. service and aid group has sent more
than 1,200 volunteers to Mongolia’s 21 provinces since 1991.
Source: Montsame
CATHOLIC CHURCH PREPARES FOR ORDINATION OF FIRST NATIVE PRIEST

13. The first native priest of Mongolia, Joseph Enkh, will be ordained in Ulaanbaatar on 28
August 2016 by the capital’s apostolic prefect, Wenceslao Padilla. Enkh was ordained a
deacon on 11 December 2014 in Daejeong, where he received his initial formation, and
returned to Mongolia in January. Since then he has been carrying out his pastoral
experience, serving in various parishes of Mongolia, where currently there are, altogether
about 20 missionaries and 50 nuns from 12 congregations, working in six parishes.
Source: Independent Catholic News
BCM UPDATES:
UPCOMING EVENTS
JOIN BCM’S DELEGATION TO GLOBAL GREEN GROWTH WEEK 2016
Only few days left to register to the Global Green Growth Week 2016 (GGGW2016), which
will be organized at the Jeju International Convention Center, Republic of Korea on 5-9
September 2016. Organized by the Global Green Growth Institute (GGGI), GGGW2016 will
engage high-level officials from government, multi-lateral development banks and
international development agencies, private-sector leaders, and representatives from
academia and non-governmental organizations. Participants will assess green growth
policy, research, partnerships, financing, and technology through GGGW2016 policy
dialogues, expert panels and presentations, discussions, capacity building workshops,
country-focused briefings, and technology exhibits.
For more information about the event, please click here or contact BCM at 70114442,
99109887, bayarmaa@bcmongolia.org.
Registration deadline is August 24, 2016.
INVEST MONGOLIA 2016 FRONTIER'S 10TH ANNUAL CONFERENCE IN ULAANBAATAR
The “Invest Mongolia 2016” conference will be held at WHERE? In Ulaanbaatar on 5 and 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.
BCM members will get 15% discount on Green & Yellow badges.
14TH ANNUAL DISCOVER MONGOLIA, 8-9 SEPT.
The 14th annual Discover Mongolia International Mining Investors’ Forum will be held at
the Corporate Convention Center in Ulaanbaatar on 8 and 9 September. This year’s Forum
will concentrate heavily on the new government’s policies for mining and exploration in
Mongolia with the over-arching theme of “For Stability.” In recent year’s political
instability in Mongolia has resulted in significant damage to the private and public mining
companies as well as international investors’ sentiment towards Mongolia. Now with a new
parliament in power for the next four years investors are expecting certain stability.
Logon to discovermongoliaforum.com to learn more or click here to register. For more

14. information, call 976-11-314877, or email office@miningmongolia.mn.
Conference registration rate for BCM members will be the same as MNMA member rate.
BEST PRACTICES IN PROJECT MANAGEMENT CONFERENCE, 7-8 OCT.
PMI is hosting its third international workshop and conference with its theme “Best
Practices in Project Management” at the Blue Sky Tower & Hotel in Ulaanbaatar on 7 and 8
October. All engaged in the Project Management profession; Business Analysts; those
wanting to learn more about Project Management; and those interested in the latest tools
and techniques should attend for 12 workshops, networking opportunity and more.
Continental lunch and refreshments at breaks are included with registration fees of
between MNT50,000 and MNT175,000 per attendee. BCM members will receive a 20
percent discount. For more information, visit pmimongolia.mn. Phone calls can be made to
9901-7317, 9994-7237; or email registration@pmimongolia.mn.
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 government.
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.
BCM ADVOCACY NOTES
VOICE OF BUSINESS COMMUNITY RAISED & DELIVERED TO GOVERNMENT OF MONGOLIA
A detailed multi-media PR plan promoting the 1st Annual BCM Summit Proceeding was
developed with the main goal to inform, raise awareness and get support of the public on
key messages of private sector towards the new Government. Another main goal is to have
as many inclusions as possible to the new Government Action Plan. A publication titled
“BCM 1st Annual Summit Proceeding – Key Messages to Government Leaders” is produced
in Mongolian language. The publication along with an official letter was sent to the
President, Prime Minister, Deputy Prime Minister, Parliament Members, Ministers and
Standing Committee chairs on Aug 16th. Following the plan the key messages were
promoted through Bloomberg TV interview on Aug 16th, articles in Zasgiin Gazriin Medee
newspaper edition Aug 18th and Udriin Sonin newspaper edition Aug 19th. Engaging social
media posts are continuously made through BCM twitter and Facebook accounts.
CERTIFICATE OF ORIGIN (CO) ISSUES RAISED TO GOVERNMENT OFFICIALS
Following up the Consultative meeting on CO dated Aug 3rd, an official letter requesting
postponement of effective date of regulation to Jan 1st, 2017 was sent to the General
Customs and Tax Authority. Furthermore, a meeting was held with V.Enkhbold, head of
Foreign Trade and Economic Cooperation Department (under MFA) and its officials in
charge of foreign trade issues on Aug 16th. It was informed that the department will
further study the issue and will try to resolve on mutual consensus. Official letter was

15. sent to Ts.Munkh-Orgil, Minister for Foreign Affairs on Aug 18th stipulating overall analysis
on how the new regulation contradicts international practices and how it burdens the
private sector. The postponement was also requested.
BCM WORKING GROUP NEWS
- Energy and Environment Working Group Meeting on "ENERGY EFFICIENT HEATING &
ROUNDTABLE DISCUSSION" 24 June 2016
- 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
- Areva Mongol is hiring French Language Translator. For more information, call (976)
320698 ext-115
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

16. 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
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]

17. May 6, 2016 10.50% [source: Mongol Bank]
CURRENCY RATES – 12 AUGUST 2016
Currency Rate
U.S. dollar USD 2,265.28
Euro EUR 2,563.39
Japanese yen JPY 22.68
British pound GBP 2,957.78
Hong Kong dollar HKD 292.13
Chinese Yuan CNY 35.57
Russian Ruble RUB 341.81
SouthKorean won KRW 2.05