BCM NewsWire issue 445

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 445 – September 23, 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 Directors replaced
 Chinese miner investigated for river pollution
 Authorities suspend Hong Kong oil explorer’s operations
 Univision blocks broadcasters breaking copyright
 Gradon wins Mongolia backing for UB shopping center
 AirBnB on the Mongolian steppe, where tech meets tourism
 State Bank director appointed
 Studio to release Mongolia’s first-ever 3D animation
 Engie to hang on to LNG, selling coal and oil, says CEO
Economy:
 Mongol Bank: FX auctions, currency swaps
 Mongolian recovery runs out of momentum, index shows
 As Mongolia teeters, bond investors bank on China for bailout
 Upturn in Mongolia offers hope of rebound
 8% mortgage loan issuance suspended
 Mongolia pays out more for growing number of pensioners
 Mongolia to pitch railway projects to China-backed AIIB
 China-Mongolia cross-border economic cooperation zone under construction
 China-Mongolia-Russia economic corridor focuses on 7 areas
 Expanded transit for China-Russia-Mongolia trade slated for 2018
 China bans Mongolian beef and mutton
 Efforts toward open government
 Council meets for earthquake prevention
 U.S. instructors arrive for disaster management training
 400 displaced by ger-district developments
 Mongolia’s grassland turning into deserts
 Rio Tinto is no longer worried about China’s growth
 Mongolia shares mirror crisis, post worst run since 2013—CHART
 Is the worst over for Mongolia?—VIDEO

2. Politics:
 More than 15,000 candidates to run in local elections in October
 MPRP to sit out local elections
 Cabinet considers bill to ban offshore accounts for public officials
 Elbegdorj expresses interests in expanded trade with Cuba
 North Korea requests emergency support
 Mongolian Armed Forces, U.S. Marines begin NOLES 2016
 Elbegdorj calls for UN goal to ‘leave no one behind’ in sustainability goals
 Anti-corruption authorities arrest land officials
 Ulaanbaatar government fires over 200 officials
 UB opens ties with S. Korean city for culture
 Another name change for Ulaanbaatar’s main square
 3-year ban for Mongolian wrestling coaches who stripped at Olympics
 Mongolians pay tribute to Steve Nash
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3. BUSINESS
OYU TOLGOI DIRECTORS REPLACED
Three board members that helped steer the Oyu Tolgoi copper mine out of a long-standing
dispute between the government of Mongolia and Rio Tinto Group have been replaced.
Mongolia has appointed N. Bagabandi, B. Munkhbaatar and Ch. Altannar to the board. They
replace Byambasaikhan Bayanjargal, Ganbold Davaadorj and Otgochuluu Chuluuntseren,
who were released as board members on Friday, according to Solongo Sukhbaatar, a
spokeswoman for Erdenes Mongol LLC.
Mongolia has seen many executive departures since the Mongolian People’s Party came to
power in late June. The changes aren’t uncommon as the winning party consolidates
power and finds loyal members to assume executive roles, said Munkhdul Badral, head of
market intelligence firm Cover Mongolia. Munkhbaatar Begzjav, a former deputy mayor of
Ulaanbaatar, replaced Ganbold as executive director of Erdenes Oyu Tolgoi LLC.
Source: Bloomberg
CHINESE MINER INVESTIGATED FOR RIVER POLLUTION
Police are investigating a damn leak from a mine in Dornod that has turned a river brown
from chemical exposures. The poly-metal mine is reported by China’s Shin Shin at
Dashbalbar Soum. A damn leak from the company in 2015 resulted in arsenic levels in the
ground.
This is the third time police are investigating the company since 2011.
Source: Unuudur
AUTHORITIES SUSPEND HONG KONG OIL EXPLORER’S OPERATIONS
Authorities have suspended oil production by the Hong Kong-Mongolia joint venture
Gladwill Uvs Petroleum LLC until a dispute with locals and an environmental group is
resolved. World Mongolia Green Union and residents claims that Gladwill’s exploration
exploration in an area of 19,000 square kilometers is illegal. Exploration was being done in
the towns Tes, Zuungobi and Naranbulag Soum.
Mongolia Gladwill Uvs Petroleum LLC has been conducting oil exploration operations in
Malchin Soum, Uvs Aimag, since last August. The company received its special exploration
license, which is held by a Hong Kong investor, in 2011.
Source: UB Post
UNIVISION BLOCKS BROADCASTERS BREAKING COPYRIGHT
Cable provider Univision has blocked some channels for illegally broadcasting content.
Subscribers have reports sent in complaints about being unable to access some C1, SBN and
UBS, but according to Univision those channels were violating copyright. “We have done
some restrictions on movies and channels which violated intellectual property, in
accordance with the law,” said a spokesperson.
Source: Udriin Sonin
GRADON WINS MONGOLIA BACKING FOR UB SHOPPING CENTER
Gradon Architecture has secured planning approval for a multi million-pound regeneration
project in Ulaanbaatar. Gradon's plans are for the Galleria UB which will transform a
disused former print works into a shopping center in the city of Ulaanbaatar. Close to

4. Chinggis Square, the property has been empty for a number of years and has fallen into
disrepair. Regeneration work of this nature is "uncommon" in Mongolia, adding to the
uniqueness of the project.
Work is due to begin on site before the end of the year and is expected to be completed
by early 2018." Mongolia, and Ulaanbaatar in particular, is changing very quickly and it's
hugely exciting to be involved in shaping the future of the city," said Tanja Smith,
technical director of Gradon Architecture who heads up the Mongolia studio.
Source: Insider Media
AIRBNB ON THE MONGOLIAN STEPPE, WHERE TECH MEETS TOURISM
On the vast green Mongolian grasslands, something interesting is happening: Enterprising
nomadic herders have started using AirBnB to reach out to a world beyond their pastures,
promoting their humble yurts as accommodations to a growing number of intrepid tourists.
Nomadic herder Oyunchimeg Shuurai and her family have been hosting tourist homestays
since 2004, but this is their first year listing their ger on AirBnB. Although they only listed
it for the peak tourism season between June and August, they received an enthusiastic
response.
It is a trend that holds some significant implications for the national economy. AirBnB
combines two sectors that the Mongolian government is keen to develop: the digital
economy and tourism. While tech penetration is widespread in some ways, access to the
Internet still lags far behind most Asian countries. This structural problem will likely
inhibit AirBnB tourism from taking off quickly among herders.
Source: Nikkei Asian Review
STATE BANK DIRECTOR APPOINTED
State Banks LLC has appointed D. Bayarsaikhan as its new director and B. Tsendsuren as
executive director. Bayarsaikhan is a former head of the Financial Regulatory Committee.
The bank’s board of directors confirmed the appointments on 13 September. B. Nyamaa is
the new board director the other board members are:
S. Narantsogt – head of State Fund of Ministry of Finance
B. Dorjsembed – head of Financial Policy Department of Ministry of Finance
U. Byambasuren – deputy head of the Cabinet Secretariat
P. Sainzorig – acting head of Legal Policy Department, Justice Ministry
P. Purevjav – advisor to finance minister
M. Batjargal (Independent board member)
A. Ganzorig (Independent board member)
Source: Undesnii Shuudan
STUDIO TO RELEASE MONGOLIA’S FIRST-EVER 3D ANIMATION
A 3D animated movie will be released from a Mongolian studio for the first time. Amjilt
Animation Studio’s Mora comes amid growing popularity for animated movies in the
country.
Source: News.mn
ENGIE TO HANG ON TO LNG, SELLING COAL AND OIL, SAYS CEO
French gas and power group Engie SA is not considering selling its liquefied natural gas
(LNG) activities but confirmed it will exit burning coal and producing oil, Chief Executive
Isabelle Kocher said on Wednesday. On Monday, the firm's CGT union said Engie was

5. considering the future of its LNG business, which could lead to a reorganization and maybe
a sale.
Engie's Global Energy Management and LNG division, hit by lower oil and gas prices and
lower volumes of gas sales, saw turnover fall 47 percent in the first half, leading to a loss
before interest, tax, depreciation and amortization of 39 million euros (USD44 million).
French newsletter L'Expansion reported on Monday Engie was set to book a full-year loss at
this business adding that Engie planned to cut about 1,150 jobs in various functions.
Kocher said the company is not planning large-scale job cuts or redundancy plans.
Source: Reuters
ECONOMY
MONGOL BANK: FX AUCTIONS, CURRENCY SWAPS
The Bank of Mongolia on 22 September sold USD8 million and CNY12 million to commercial
banks at currency auctions (out of bids totaling USD39.9 million and CNY77 million) for
closing rates of MNT2,256 and MNT337.71, respectively. Also that day, it accepted an
equivalent of USD8.6 million in swap agreements and MNT10 million in U.S. dollar swaps
with banks.
Source: Bank of Mongolia
MONGOLIAN RECOVERY RUNS OUT OF MOMENTUM, INDEX SHOWS
The Mongolian Sales Managers’ Index (SMI) fell back on its recent gains to post a value of
42.9 in September. This represents the first fall in the index value, as a run of seven
consecutive monthly gains has come to an end. The Market and Sales Growth Indexes both
experienced sharp drops during the month which is also reflected in reduced business
confidence levels and employment levels. Price deflation has continued to ease with sales
managers reporting that they are close to raising prices as winter approaches and the
strength of the Tugrik remains weak.
Source: World Economics
AS MONGOLIA TEETERS, BOND INVESTORS BANK ON CHINA FOR BAILOUT
Holders of Mongolia's high-yielding dollar bonds are looking beyond a sharp rise in
sovereign default risks on a bet that China or the International Monetary Fund (IMF) will
help the once-booming commodity producer to stay solvent. The borrowings have left the
USD12 billion economy staggering under total foreign debt—public and private—of over
USD20 billion, and a state debt burden that the government predicts could hit 78 percent
of annual output by the end of the year. Other countries in Mongolia's high-risk "B" rating
category have an average 50 percent debt ratio, the Moody's agency said.
Marco Ruijer, a fund manager at NN Investment Partners, is holding on to his Mongolian
bonds. He says investors are confident China will extend its swap line and possibly even
increase it. Creditors have also been assured by the Development Bank of Mongolia it had
enough cash to meet upcoming coupons and part of next year's USD580 million maturity,
he added.
Source: Reuters
UPTURN IN MONGOLIA OFFERS HOPE OF REBOUND
Rising debt levels and a cooling economy are among the challenges facing Mongolia’s new
government; however, signs of modest recovery are apparent in some sectors of the

6. resource-rich nation. The Mongolian People’s Party (MPP) faces a number of economic
hurdles to overcome, including weaker commodity prices and foreign direct investment
(FDI) that plunge from a high of USD4.5 billion in 2012 to just USD121.5 million last year.
The new government will also have to contend with high levels of commercial debt.
While faced with significant economic challenges, the MPP also inherited an economy
showing some signs of modest recovery. The industrial production index increased strongly
in June. Another positive came from the Bank of Mongolia, which reported in late July that
there had been a jump in loan activity at the end of the first half of the year, as credit
flows increased and bad and overdue debts eased.
Source: Oxford Business Group
8% MORTGAGE LOAN ISSUANCE SUSPENDED
The Bank of Mongolia has suspended its subsidized mortgage program while authorities
look into the lending procedures. An investigation has been launched into the commercial
banks partnered for the 8 percent lending program, which cuts interest on mortgage by
700 basis points from the central bank’s policy rate. In August, central bank authorities
found several violations to the lending terms made by banks, including the retainer of
financing, a failure to issue loans to eligible borrowers and spending of funds from the
central bank meant to lending to home buyers. “The Mongol Bank and authorities of
commercial banks are holding discussions about how to address the violations,” said
spokesperson D. Ariunaa. “After they’ve reached an agreement on integrated solutions,
mortgage loan issuance will resume.”
The Bank of Mongolia has said that will not go forward with cutting interest rates further
to 5 percent, but Ariunaa said that the Cabinet may decide differently in the future.
Source: UB Post
MONGOLIA PAYS OUT MORE FOR GROWING NUMBER OF PENSIONERS
Pension payments from the government have shot up 25.8 percent to MNT1.1 trillion this
year, according to government data. Mongolia paid out MNT96.2 billion to 214,800 retirees
in the first eight months of August, or 9.1 percent more than the same period in 2015.
Source: Montsame
MONGOLIA TO PITCH RAILWAY PROJECTS TO CHINA-BACKED AIIB
Mongolia will pitch a number of railway projects to the China-initiated Asian Infrastructure
Investment Bank (AIIB), an adviser to the government said, as the crisis-hit nation tries to
attract investment and boost trade. China's "One Belt One Road" project, along with
another initiative to create an "economic corridor" connecting it to Mongolia and Russia,
has provided opportunities for Mongolia to kickstart new projects, including the expansion
of the Trans-Mongolian railway and construction of a new route going east, said Yondon
Manlaibayar, an adviser to Mongolia's Ministry of Roads and Transportation Development.
Manlaibayar said Mongolia plans over the next four years to bolster railway capacity and
build new routes that will eventually connect it to a trading route spanning from China to
Europe. Mongolia wants to find financing to build 550 kilometers (342 miles) of new
railways, and plans to expand existing routes.
Source: Reuters
CHINA-MONGOLIA CROSS-BORDER ECONOMIC COOPERATION ZONE UNDER
CONSTRUCTION

7. Workers broke ground Monday on infrastructure projects on the Chinese side of a China-
Mongolia cross-border economic cooperation zone. The 18-square-kilometer zone stretches
across the border between the cities of Erenhot in China's Inner Mongolia Autonomous
Region, and Zamyn-Uud in Mongolia. The area has been designed to integrate international
trade with the processing of import and export commodities; as well as facilitate e-
commerce, entertainment, and financing upon completion, said the municipal government
of Erenhot.
For CNY900 million yuan (USD135 million), the Chinese party will include over 33
kilometers of roads and facilities such as drains, heating, power, and telecommunication.
Construction is expected to be completed in 2018, according to the city government.
Source: Global Times
CHINA-MONGOLIA-RUSSIA ECONOMIC CORRIDOR FOCUSES ON 7 AREAS
China, Mongolia and Russia will cooperate in seven areas to build a trilateral economic
corridor, according to guidelines released this week. The three neighbors will improve
transport facilities by expanding land, air and sea connections, said the guidelines issued
by the National Development and Reform Commission. They plan to renovate ports of
entry and overhaul customs procedures for easier clearance.
The three countries agreed to expand trade at border regions and widen services trade,
and eyed more cooperation in education, science and technology, culture, tourism,
medical care and intellectual property. In addition, they promised to strengthen
cooperation in environmental protection and push partnerships of local governments and
border regions.
Source: Xinhua, China.Org
EXPANDED TRANSIT FOR CHINA-RUSSIA-MONGOLIA TRADE SLATED FOR 2018
Mongolia, China, and Russia will work together for expanded trade through the
construction of new roads for a 2,200 kilometer route for the the transport of goods
between them. Their plans are to build road China’s Tianjin seaport, through Mongolia and
its capital city and to the Russian City Ulaan Ude. New transit transportation is expected
to help increase the volume of trade by between 17 to 20 percent by 2020.
In comparison, freight deliveries from China to Europe door-to-door by sea takes 50 days
and 25 to 30 days by rail. A pilot program sending nine trucks with goods along the
highway was held from 18 to 24 of August. Two more highway roads are being planned
that will run from Khuvd to Bayan-Ulgii Aimags; and from Dornogobi to Sukhbaatar Aimags.
Source: News.mn
CHINA BANS MONGOLIAN BEEF AND MUTTON
Mongolian beef, mutton and the related imports into China have been suspended since 14
September, according to an announcement from Chinese AQSIQ that same day. The exact
reason for the suspension is unknown, but the public connects the suspension with the
recently outburst animal diseases in Mongolia. On 16 July, A-type foot-and-mouth disease
appeared at a farm in Gobi-Sumber Aimag, and it spread to a total of 43 cattle—three of
which died. The last recorded occurrence of the foot-and-mouth disease in Mongolia was
23 November.
On 9 September, Mongolia reported to the World Organization of Animal Health that in
August the peste des petits ruminants virus had spread at two farms in Khuvd. A reported
360 goats and 60 sheep were confirmed with the disease; 27 goats and 9 sheep had died;

8. and four goats were destroyed.
Source: Beef of China
EFFORTS TOWARD OPEN GOVERNMENT
Mongolia has announced a National Action Plan (NAP) for 2016-2018 to restore quickly
restore economic development and stimulate public sector growth while improve living
standards. By 2030, Mongolia strives to pull up citizens to middle and upper-middle class
standards with a growing multi-sectoral economy, according to the plan presented at the
Open Government Partnership on 19 September. Launched in 2011, the Open Government
Partnership (OGP) is a multilateral initiative which currently brings together 70 member
states, NGOs and representatives from civil society in collegial governance.
Source: News.mn, Montsame
COUNCIL MEETS FOR EARTHQUAKE PREVENTION
Mongolia’s deputy prime minister has ordered actions to defend against earthquakes in
light of data showing increasing seismic activity. About 80 percent of Mongolian territory
where 80 percent of the population lives is seismically active, according to the council.
Mongolia recorded 29,000 tremors in the first eight months of the year, including 1,000 in
an around Ulaanbaatar. That’s a 30 percent increase from last year, said Deputy Prime
Minister U. Khurelsukh. The council voted in favor of tax exemptions for the import of
goods for measuring earthquake activity and for more inspections on older buildings and
hospitals to test their integrity.
Source: Montsame
U.S. INSTRUCTORS ARRIVE FOR DISASTER MANAGEMENT TRAINING
More than 20 experienced instructors from the United States arrived in Ulaanbaatar to
help strengthen capacities for disaster mitigation, management and coordination of NEMA
personnel, the border troops and police. A total of 70 Mongolian officers participated in
the training at the Law Enforcement University of Mongolia on 19 September.
Source: News.mn
400 DISPLACED BY GER-DISTRICT DEVELOPMENTS
Hundreds live homeless in Ulaanbaatar while they wait for developers to complete the
housing projects launched by the city’s urbanization program for the capital’s so-called
ger districts. Six-hundred-fifteen people who agreed to lease their land in return for
apartments are living in rental homes, and 400 are homeless, according to the head of the
Ger Districts Infrastructure office for Ulaanbaatar, M. Ganbaatar. The government has
spent MNT104 billion of state funds for engineering on these homes, but 5,000 of the 7,000
projects remain incomplete because they lack access to utilities.
Ulaanbaatar selected 34 companies to develop housing projects at 24 ger district
locations. Today, work has been suspended for 18 of those companies and three have not
yet even broken ground. Less than 1 percent of the 79,000 apartments planned for
construction have been completed.
Source: Zuunii Medee
MONGOLIA’S GRASSLAND TURNING INTO DESERTS
Eighty percent of Mongolia’s territory is at risk for desertification from climate change and
overgrazing, according to the Ministry of Environment and Tourism. At least 25 percent of

9. the country practices nomadic pastoralism in the country, according at the ministry, with
60 million heads of livestock grazing more than two-thirds of the land.
Source: News.mn
RIO TINTO IS NO LONGER WORRIED ABOUT CHINA’S GROWTH
World’s second largest miner Rio Tinto Group injected some much-needed optimism in the
markets Monday by saying that while China’s short-term demand remains difficult to read,
the long-term outlook is looking much brighter than a few months ago. Figures out of
China, Rio Tinto’s and most mining companies’ biggest consumer, show that factory
output, investment and retail sales all exceeded analyst estimates in August. “We can see
an inflection point and we are going to make the most of it—Rio’s chief executive officer
Jean-Sebastien Jacques.”
Several analysts back his views. Moody's Investors Service, for instance, changed its
outlook for base metals in August from negative to stable. Former Morgan Stanley chief
economist Stephen Roach, who is among those arguing the China downturn story has been
oversold, partly agrees. He has said that if Beijing meets its 6.7 percent growth-target, it
will account for 1. percent of global GDP growth, or roughly 40 percent of the total.
Source: Mining.com
MONGOLIA SHARES MIRROR CRISIS, POST WORST RUN SINCE 2013—CHART
During the commodities boom, Mongolia’s stock market more than doubled in a single
year. That was 2010 and a lot has changed, with the nation’s benchmark down for a
seventh straight week, the longest stretch of declines since March, 2013. Mongolia has
been hit hard by the slump in commodities and the slowdown affecting its larger
neighbors, Russia and China, with the currency falling 24 straight days through the middle
of last month.
View the chart at the Source.
Source: Bloomberg
IS THE WORST OVER FOR MONGOLIA?—VIDEO
Ganzorig Ulziibayar, chief executive officer at Golomt Bank LLC, discusses Mongolia's
economy, the level of government debt and the outlook for foreign direct investments. He
speaks to Bloomberg's Rishaad Salamat on "Trending Business."
Click the source to view the video.
Source: Bloomberg
POLITICS
MORE THAN 15,000 CANDIDATES TO RUN IN LOCAL ELECTIONS IN OCTOBER
Elections in October will see Mongolians choose among 15,209 candidates for their local
municipality government. The elections will choose representatives for more than 330
villages among Mongolia’s 21 provinces and Ulaanbaatar’s nine districts.
Campaigning is scheduled to launch from 1 October.
Source: Udriin Sonin
MPRP TO SIT OUT LOCAL ELECTIONS
The Mongolian People’s Revolutionary Party (MPRP) that broke away from the Mongolian
People’s Party in 2010 will not put forth candidates for the October local elections,

10. according to a party head. The decision stems from the belief that the election law is
stacked against the party, said MPRP Deputy Header E. Erdenejamiyan. “Elections are not
fair in Mongolia and the court is discriminating against us on behalf of the MPP. Therefore,
we asked our branches to decide whether to run for the local election.”
Erdenejamiyan went on to criticize the concentration of power within government. “Law
making, law enforcement and the court have become one in the same in Mongolia. It
should be separate authorities.”
Source: Udriin Sonin
CABINET CONSIDERS BILL TO BAN OFFSHORE ACCOUNTS FOR PUBLIC OFFICIALS
The Cabinet Secretariat under Prime Minister Jargaltulga Erdenebat is considering a new
law that would ban public officials from holding offshore accounts. If approved, the law
would go before Parliament in the aftermath of the so-called Panama papers that revealed
connections to public officials to accounts managed by a law firm in Panama. Former
Ulaanbaatar Mayor Erdene Bat-Uul, for example, was incriminated when it was revealed
that his son had an account there.
Source: Undesnii Shuudan
ELBEGDORJ EXPRESSES INTERESTS IN EXPANDED TRADE WITH CUBA
President Tsakhia Elbegdorj has expressed an interest in expanding economic and trade
ties with Cuba during his visit last week. Elbegdorj spoke highly of the bilateral relations,
Castro and Elbegdorj agreed on the need to strengthen the cooperation. The two leaders
also compared notes on other issues of common concern. "With this visit, both countries
hope to expand bilateral cooperation in various areas and bring us closer despite the
geographical distance," he said said at a press conference shortly after arriving at the
Havana airport on 14 September.
During his stay until Sunday, the Mongolian President held official talks with Army General
Raul Castro, President of the Cuban councils of State and Ministers, and will carry out
other activities. For 56 years, Cuba and Mongolia have had uninterrupted relations.
Source: Global Times
NORTH KOREA REQUESTS EMERGENCY SUPPORT
Pyongyang’s ambassador to Mongolia has officially requested humanitarian aid for North
Korea, which is currently recovering from massive flood damage. Tens of thousands of
people have been affected by some of the worst floods in recent history. North Korea has
formally asked for help from Mongolia and other nations such as Russia, Kazakhstan,
Turkey and Cuba. The nation urgently needs assistant for food, fresh water and clothes.
The Government of Mongolia is to discuss delivering aid to North Korea.
The U.N. resident coordinator said in the appeal Monday that 138 people have been killed,
398 people remain missing and at least 118,000 people are in immediate need of
assistance, including 37,000 who have been made homeless by the disaster.
Source: News.mn
MONGOLIAN ARMED FORCES, U.S. MARINES BEGIN NOLES 2016
The Mongolian Armed Forces and U.S. Marine Corps Forces, Pacific began the Non-Lethal
Weapons Executive Seminar (NOLES) in Mongolia from 12 to 23 September. NOLES is a
regularly scheduled field training exercise and leadership seminar sponsored by U.S.
Marine Corps Forces, Pacific and hosted annually by various nations throughout Asia-

11. Pacific. This year’s event is designed to promote awareness and effective use of non-lethal
weapons as a tool to maintain order in humanitarian assistance and disaster relief
operations, low-intensity conflicts or civil unrest scenarios.
Non-lethal weapons are explicitly designed to incapacitate equipment and personnel while
minimizing fatalities and permanent injury to personnel, and undesired collateral damage
to property. This capability is preferred during rescue missions, for force protection in civil
disturbances, while controlling rioting prisoners of war, for checkpoint or convoy
operations, humanitarian assistance and disaster relief operations, or in situations in which
civilians are used to mask a military attack.
Source: Defense Video Imagery Distribution System
ELBEGDORJ CALLS FOR UN GOAL TO ‘LEAVE NO ONE BEHIND’ IN SUSTAINABILITY GOALS
Achieving sustainable development is essential “because no one in the world should be left
behind and deprived of the right to development,” the President of Mongolia told the
United Nations General Assembly on September, urging the international community to
work together towards a world where everyone could have a dignified life, free from
poverty, violence and depression. “I firmly believe that justice, stability and security
cannot be guaranteed without the rule of law and respect for fundamental rights and
freedoms for all. These basic principles must be respected and protected in every country
by all governments,” Tsakhia Elbegdorj told delegations attending the Assembly’s annual
general debate.
Addressing a wide range of issues, Elbegdorj noted that “development and accountability
is all about democracy,” which should never be taken for granted. On climate change, he
called the Paris Agreement a success. The benefits of the green funds and carbon credits,
he said, are “sorely missed” in Mongolia and many other developing countries.
Source: United Nations
ANTI-CORRUPTION AUTHORITIES ARREST LAND OFFICIALS
Anti-corruption authorities have arrested another executive from the Ulaanbaatar property
Relations department in city government. Arrested on 14 September by the Independent
Agency Against Corruption, department head B. Amarjgaral is the fourth official recently
arrested for crimes related to the management of public land. Last July, the head of the
Bayanzurkh land office, N. Batsukh was arrested after accepting MNT200 million in bribes
from a Chinese party. Bayangol District land official S. Byambadorj and T. Munkhbayar of
Sukhbaatar District were arrested earlier this year for allegedly accepting bribes for land
to two separate individuals.
T. Munkhbayar is currently released from prison while the remainder are still incarcerated.
Source: Unuudur
ULAANBAATAR GOVERNMENT FIRES OVER 200 OFFICIALS
More than 200 city officials have been fired by the recently elected Mongolian People’s
Party (MPP) authorities, said representatives of the Democratic Party in a press
conference. “Government officials should be independent from the parties, however the
MPP fired many officials, which is against the law,” said T. Battsogt, a member of
Ulaanbaatar City Council of the Democratic Party. “We will work to protect interest of the
fired officials.”
The Democrats have issued a letter to the Ulaanbaatar Chair, Ts. Sandui, demanding that a
council meeting be held after two months of silence.

12. Source: Udriin Sonin
UB OPENS TIES WITH S. KOREAN CITY FOR CULTURE
Ulaanbaatar has inked a partnership to work with a South Korean city with ancient
historical ties that can help highlight relics in the capital city. Ulaanbaatar’s deputy mayor
for social development affairs and a counterpart from Mokpo signed a memorandum of
understanding to cooperate in sports and culture. The deal also includes the establishment
of a Mongolian cultural center at Mokpo.
Mokpo is an ancient city that boasts of abundance of historic landmarks and monuments.
Source: Montsame
ANOTHER NAME CHANGE FOR ULAANBAATAR’S MAIN SQUARE
Ulaanbaatar's central square and seat of Parliament reverted back to the name of
Sukhbaatar Square after three years under the name Chinggis Square. The name change
officially occurred on 15 September, and follows a court decision that ruled in favor of
challenges to the name change by the Democratic government in Ulaanbaatar under
former mayor Erdene Bat-Uul. The case was filed by the descendants of D. Sukhbaatar,
who in Mongolia is a hero for the nation’s independence from China.
Source: News.mn
3-YEAR BAN FOR MONGOLIAN WRESTLING COACHES WHO STRIPPED AT OLYMPICS
Two Mongolian wrestling coaches who stripped to protest an officiating call at the Rio
Olympics have been suspended for three years. According to a letter sent to the Mongolian
federation by United World Wrestling on 13 September, coaches Tserenbaatar Tsogbayar
and Byambarinchen Bayaraa have been banned from all international competition until
August 2019. Mongolia's national federation also has been fined 50,000 Swiss francs, which
is about USD51,000.
The protest by the Mongolian coaches came just moments after referees awarded a match
to Uzbekistan's Ikhtiyor Navruzov against Mandakhnaran Ganzorig. The Uzbek was awarded
a late point after the Mongolian wrestler fled a hold and celebrated too early, with less
than 10 seconds left.
Source: Associated Press
MONGOLIANS PAY TRIBUTE TO STEVE NASH
People gathered for a candle-lit vigil held to commemorate the memory of British
paraglider Steve Nash at the National Park on 18 September. Nash, 53 and from Cheshire,
England, was killed after reportedly being stabbed in the chest. His body was found on 1
September at Arkhangai Aimag. A 31-year-old man, previously identified only as 'T', was
found with Euro300-worth of local currency and a passport believed to have been taken
from Steve Nash. Police spokesman confirmed suspect had escaped from jail, where he
was serving time for theft.
Steve had been journeying across Mongolia with a friend, Gareth Aston, but had been
forced to continue solo after his companion retired with an injury. The pair had been
crossing the Khangai Nuruu mountain range on their paragliders—a challenge they had
previously attempted 10 years ago.
Source: News.mn

13. UPCOMING EVENTS
ENERGY CONSERVATION & ENERGY EFFICIENCY SEMINAR BY TUV RHEINLAND
Observe Consulting will host the "Energy Conservation & Energy Efficiency" seminar on
Monday, 29 September 2016. The objective of this seminar is to share knowledge and
information to participants about implementation of the Energy Conservation law,
requirements for Significant Energy Users, and how to establish and manage energy
management system according to ISO 50001 compliance. The three main topics for
discussion will be (i.) “Energy Conservation & Energy efficiency, Implementation of EnMS
ISO 50001 and its benefits”; (ii.) “Introduction of CSQ (Certified Service Quality) by TUV
Rheinland”; and (iii.) “Renovation of ISO’s new MS standards.”
The Business Council of Mongolia is a supporting organization of this event and will be
organized with collaboration of leading technical consluting and solutions firm TUV
Rheinland (Germany). BCM members will receive a 20 percent discount.
For more information and to register, call Observe Consulting at 99071745 or 99100879, or
email info@observeconsulting.com.
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 WORKING GROUP NEWS
BCM’s Education & Innovation Working Group Meeting, 22 Sep 2016
BCM’s Education Working Group transformed into Education & Innovation Working Group to
support entrepreneurship, innovation, start-up business and SMEs. The first renewed
meeting was held on 22 Sep 2016 on the title of “Opportunities for Fostering Innovation in

14. the Mongolian Market” with 22 people attending. Presentations and discussion were made
on “Innovation Fund”, entrepreneurship training, how innovation becomes a business, and
how to foster entrepreneurship through civic innovation. Key question of the roundtable
discussion was on the next steps of the working group, role and value add of BCM in
supporting innovation and entrepreneurship in a sustainable way, and where the leverage
point is to achieve greatest impact. Members agreed to continue the discussion over the
next meetings and most importantly to organize meetings with concrete objective with
result-oriented approach. To join this working group, please contact BCM via
dolgorsuren@bcmongolia.org. For more information about this meeting, contact
Bayarmaa@bcmongolia.org.
- BCM’s Energy & Environment Working Group’s consultation meeting with
J.Batbayasgalan, Deputy Governor of Capital City on “MUNICIPALITY’S ACTION PLAN FOR
THE NEXT 4 YEARS”, 15 September 2015
- 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
- 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
- US Millennium Challenge Corporation (MCC) is hiring Gender and Social Inclusion
Specialist. Deadline for application: Sep 30, 2016. For more information: please contact
at MCA.office@mfa.gov.mn.
- Transwest Mongolia is hiring hiring Parts Analyst. Deadline for application: Oct 16, 2016.
For more information: please contact atcareers@transwest.mn
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.

15. WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
- Presentations from “Invest Mongolia 2016” Conference
Please click here to view full list of Presentations.
MONGOLIA REPORTS:
- World Bank, “Mongolia Economic Brief”, Sep 2016
- WPP and Y&R Mongolia, BradnZ’s first ever “Spotlight on Mongolia”, Sep 2016
- 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]
August 31, 2016 *-0.2% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: -0.6% y-o-y - Ulaanbaatar City, August 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]

16. 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]
August 18, 2016 15.00% [source: Mongol Bank]
CURRENCY RATES – 15 September 2016
Currency Rate
U.S. dollar USD 2,253.61
Euro EUR 2,530.13
Japanese yen JPY 22.44
British pound GBP 2,943.55
Hong Kong dollar HKD 290.58
Chinese Yuan CNY 337.89
Russian Ruble RUB 35.37
South Korean Won KRW 2.04