02.04.2010, NEWSWIRE, Issue 112

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 112, April 2, 2010
NEWS HIGHLIGHTS:
Business:
 All partners in OT project hail agreement taking “full, binding effect”;
 Government approves OT feasibility study;
 Minister says present critics of OT agreement are “uninformed and liars”;
 MPs ask Speaker to resolve issues on OT before allowing work to begin;
 Standing Committees fail to hold joint meeting on feasibility study;
 Council adds 5.7 million tons to Oyu Tolgoi deposit;
 Mineral Council approves OT feasibility study;
 Ivanhoe will not sell its stake in OT, says Friedland;
 Voyager acquires 80% of Dalitiin Ovor gold project;
 Green Global Mongolia mine to start output in H2;
 Group working on processing factory at Erdenet;
 Decision on Anod likely to be left to Parliament;
 MSM and Mercedes-Benz donate engines to MUST for students’ training;
 How blood ties set Golomt Bank on its way;
 China jails Rio Tinto staff for 7-14 years;
 Political lesson for Rio Tinto;
 Kissinger helps Rio Tinto build bridges with China;
 Ford sells Volvo to Chinese company for USD1.8 billion.
Economy:
 Mining conference urges MPs to heed expert opinion;
 Four mining-related items on Parliament agenda;
 Issue of fresh working visas held up;
 World Bank approves scale-up of energy project;
 Arbitrary Russian decisions on oil price hit Mongolia hard;
 Finance Minister proposes to sell stocked petroleum;
 Accountants’ organization has 2,000 members nationwide;
 Work on semi-coking coal plant to begin this year;
 Mongolia Mining Report Q2 2010 published;
 World Bank chief sees opportunity for China to revalue currency;
 China economists urge renewed yuan rise;
 Five G-20 leaders press for economic reforms;
 Local Asia bonds lure more foreign buyers.
Politics:
 President’s Russia visit only after Parliament takes some decisions;
 Civil movements to meet on April 2;
 No stones and sticks at march on April 5;
 Police boss says force severely under-equipped;
 Japanese help sought to build nuclear power plant, launch satellite;
 Japanese can now spend 30 days without visa;
 Distribution of MNT70,000 deferred by two weeks;

 Minister prepares draft enabling people to vote for both candidate and party;
 Xac Bank and GTZ offer help to grapple with Ulaanbaatar’s smog;
 75% of UB buildings will collapse in a 7.0 scale tremor;
 Former PM wants nationalism to replace faith in “borrowed concepts”;
 Minister wants to use German know-how in climate change;
 Economist and former PM calls for “radical changes”;
 Mongolian geologists as good as any, claims teacher;
 Weatherford scores another hit with new Mongol Queens history.
BUSINESS
ALL PARTNERS IN OT PROJECT HAIL AGREEMENT TAKING “FULL, BINDING EFFECT”
The Mongolian Government announced on Thursday that it had confirmed that the procedural and
administrative conditions contained in the Oyu Tolgoi Investment Agreement had been satisfied
within the allocated six-month period that has followed the agreement's official signing on October
6, 2009. ―The completion of the Investment Agreement as part of the coalition government action
program to develop the largest mine in Mongolia's history will allow this ‗Centennial Development
Project‘ to give a significant boost to the economic and financial development of Mongolia, create
large-scale infrastructure projects and the establishment of new urban centers and improve the
livelihoods of Mongolian families," the Government statement said.
Earlier on Wednesday, Rio Tinto announced, ―The agreement has taken full and binding effect.‖ Mr.
Andrew Harding, Chief Executive of Rio Tinto's Copper Group, said, ―We plan to be a partner in
Mongolia for decades to come and are looking forward to moving into the development phase of the
project.‖
In a separate statement on Thursday, Mr. Robert Friedland, Executive Chairman of Ivanhoe Mines,
and Mr. John Macken, President and Chief Executive Officer, welcomed the successful completion
of the conditions precedent that had been incorporated into the landmark agreement, which now
has taken full legal effect.
Mr. Friedland said, ―After nine years of discoveries at Oyu Tolgoi, a big piece of the future of
copper and gold in Asia is poised to become a reality. With this Investment Agreement taking full
effect, we now have a long-term partnership and a definitive blueprint to start building that future
at Oyu Tolgoi.‖
He said the participation of Rio Tinto guarantees that the world's best mining and environmental
practices and some of the most advanced mining technologies will be applied to the Project. Rio
Tinto currently owns 22.4% of Ivanhoe Mines and holds options to increase that interest to 46.6%
during the next 19 months.
Construction budget for 2010 establishes timeline for first copper-gold production in 2013. In
anticipation of the successful satisfaction of the conditions precedent in the Investment Agreement,
the joint Ivanhoe Mines-Rio Tinto Technical Committee has already approved a USD758-million
budget to launch full-scale construction of the Oyu Tolgoi complex in the second quarter of 2010.
―Oyu Tolgoi will be one of the world's greatest mining centers,‖ Mr. Macken said. ―Our discoveries,
combined with the application of the Zeus induced-polarization exploration technology and our
ongoing exploration drilling, mean that Oyu Tolgoi still will be powering Mongolia's economy a
century from now.‖
To the end of 2009, Ivanhoe Mines had invested approximately USD1 billion in the exploration and
development of Oyu Tolgoi since acquiring the exploration licenses in 2000. An estimated additional
USD4 billion will be required from the project's partners to build and commission the mining
complex.
Source: www.ivanhoemines.com
GOVERNMENT APPROVES OT FEASIBILTY STUDY
The Government on Wednesday afternoon confirmed that it agreed with the Professional Mineral
Council‘s approval of the feasibility study for the Oyu Tolgoi deposit. The council had sent the study
back to Ivanhoe Mines with certain objections. When the company returned it after conceding some
of the points and clarifying others, the council reviewed the reply and found it satisfactory.
Minister for Nature, Environment and Tourism L.Gansukh, Minister for Finance S.Bayartsogt and
Minister for Minerals and Energy D.Zorigt, the three who led the Mongolian team during the
protracted negotiations with the investors, have described the approval as the last step in the

formal validation of the agreement.
Mr. Bayartsogt told journalists after announcing the approval that the administration board of the
company will have nine members, three of them to be appointed by the Government State Property
Committee. These representatives of Mongolian interests will have to be fluent in English to
actively participate in meetings.
Source: www.News.mn
MINISTER SAYS PRESENT CRITICS OF OT AGREEMENT ARE “UNINFORMED AND LIARS”
Finance Minister S.Bayartsogt has charged the 12 MPs, who have asked the Speaker to stop the
implementation of the Oyu Tolgoi agreement (see story below), with ―lying and capitalizing on the
lack of information among the general people‖ on the details of the issues surrounding the project.
In an aggressive interview on Tuesday, he refuted their arguments by either correcting their figures
or clarifying details deliberately, or ignorantly, overlooked.
He said the entire amount of ore registered in a deposit is in most cases not profitably extractable
and nothing more than this ―simple fact of mining‖ explains why 19.6 million tons of copper has
been kept out of extraction plans in the feasibility study. Also, the decision to not mine this part of
the deposit is not irrevocable, as profitability is a flexible criterion, liable to change depending on
sale prices as well as on cost of output. That the company will thus have to constantly revise the
feasibility study is also common practice.
Asking media to trust him simply because he ―cannot afford to lie as I will have to take the
responsibility for things I say‖, the Finance Minister asserted there has been ―no violation of any
law‖ and the MPs‘ objections at this last stage ―is just a political move, aimed at appealing to
people with poor understanding of a complex problem‖.
Read more…
Referring to the allegation that the advance payment of USD250 million is actually a repayable loan
bearing 5 percent interest, Mr. Bayartsogt explained that the interest is in fact three percent. Also,
this was an advance payment of taxes. ―The money was paid 14 days after the agreement was
signed on October 6, 2009, while the first taxes will not be due until after mining operations begin
in 2013. We have already got USD250 million which we should be getting only after 2013. Obviously,
money is valuable and one needs to pay an interest. Also Ivanhoe Mines took a risk when it made
the payment in October, even before the agreement was implemented,‖ he explained.
He recalled that the original offer was for Mongolia to receive USD25 million without interest and
USD100 million with 9.9 percent interest. ―I got it changed into USD 250 million at three percent
interest. I am not claiming any special credit, though, as I am here to serve Mongolia‘s interests,‖
he said.
About raising Mongolia‘s share of the ownership, the Minister said Clause 1.6 of the agreement is
clear about it, saying that after 30 years, when the contract is extended, 16 percent more will be
added to Mongolia‘s present share of 34%. This is much better than the Parliament protocol which
sets no clear time limit and merely says the ownership share will have to rise when investment
costs have been recouped. ―Maybe that will take 100 years. Indicating 30 years in the agreement
has made things much better for Mongolia. We will take the tax for 30 years as well as the
dividends on 34 percent of shareholding. Afterwards, we will be able to own 50 percent of Oyu
Tolgoi,‖ he said.
The windfall profits tax has not been mentioned in the agreement simply because it ceases to be
applicable much before production begins at Oyu Tolgoi. ―If the mine was producing copper today,
it will certainly have to pay the 68 percent tax until the day it is repealed,‖ he explained.
He said any partnership agreement is a matter of mutual trust and there is no need for any external
monitoring of how implementation proceeds. ―In any case, who will do the monitoring?‖ he asked.
Mr. Bayartsogt made it clear that the 2% royalty claimed by BHP Billiton has nothing to do with
Mongolia as the country did not buy the exploration license from it. That, as far as the Government
was concerned, is the end of the matter.
About the charge that Mongolia should have signed the agreement with Rio Tinto or Ivanhoe Mines
and claimed 34% of its shares, the Minister explained that an investment agreement can be made
only with license holders, in this case Ivanhoe Mines Mongolia registered in the British Virgin Islands.
The dissenting MPs‘ claim that if Mongolia had an agreement with either of them, the country
would have earned USD 2 billion by now is ―not merely erroneous and shows their ignorance of how
things work‖ but is also ―playing to the gallery in a desperate gesture,‖ he said.
Source: Ardiin Erkh

MPs ASK SPEAKER TO RESOLVE ISSUES ON OT BEFORE ALLOWING WORK TO BEGIN
In a last-ditch attempt to stall the implementation of the Oyu Tolgoi agreement on April 6, several
MPs have submitted a protocol to Speaker D.Demberel asking him to ensure that decisions already
taken by Parliament are first followed. The MPs say the agreement cannot be allowed to go ahead
as it contradicts provisions in several laws, including the Mineral Law. They also reject the way the
feasibility study was finally approved. Besides, Parliament had directed the Government to receive
an amount as advance payment of tax, but the USD250 million the State has received is actually a
loan which has to be repaid with interest.
Asked why they had not acted earlier, Mr. N.Batbayar, one of the MPs to sign the protocol, told
media that all disputes must be settled by following the law, no matter how big or small the parties
to the dispute are. Parliament gave certain clear instructions to the Government which the latter
has ignored in its hurry and eagerness to sign an agreement. ―This renders the agreement illegal
and we must not allow an illegal agreement to be implemented,‖ he said, adding, ―We are asking
for a resolution when there is still time. The country‘s interests are paramount. Cooperation with
foreigners cannot come at the cost of the nation.‖
According to him, the 68 percent windfall profits tax gets annulled only on January 1 next year and
is in force until then but the agreement does not make any mention of it. ―Again, we own 34
percent of the daughter company. The share price of the parent company has increased since the
agreement. If we had 34 percent ownership there, it would have been worth USD2 billion to
Mongolia. Prime Minister S.Batbold admitted this in Parliament,‖ he said.
Source: Udriin Sonin
STANDING COMMITTEES FAIL TO HOLD JOINT MEETING ON FEASIBILIITY STUDY
Following demands from some MPs to re-examine some aspects of the Oyu Tolgoi agreement, the
Standing Committee on Security and Foreign Policy set up a working group to study the initial
objections of the Professional Mineral Council to the feasibility study, and the investors‘ reply to
these. Three Standing Committees -- on Legislation, on the Economy, and on Security and Foreign
Policy – planned to hold a joint meeting on Wednesday to discuss the report of the working group.
However, only MP E.Munkh-Ochir was present from the group. Even though it was a joint meeting of
three committees, attendance was less than 20. Many of those who did come said they were not
sure why the meeting had been called. They dispersed without conducting any business.
Source: English.News.mn
COUNCIL ADDS 5.7 MILLION TONS TO OYU TOLGOI DEPOSIT
Finance Minister S.Bayartsogt has said that on March 25 the Professional Mineral Council added a
further 5.7 million tons to the initial 25.3 million tons of copper reserve at Oyu Tolgoi that was
registered on July 1, 2009. This takes the total reserve in the deposit to 31.3 million tons.
The Council has now asked OyuTolgoi LC to make a fresh economic feasibility study of extracting 14
million tons of copper, identified as profitably extractable only under certain conditions, when
global copper price rises and/or the company‘s operational expenses decrease. This means the
company will have to constantly revise the feasibility study.
The feasibility study approved by the Mineral Council after receiving clarification from the investors
will be discussed by the Government. If everything is settled in time and implementation of the
agreement begins on April 6, another USD50 million advance tax payment will be due within six
months.
Source: Onoodor
MINERAL COUNCIL APPROVES OT FEASIBILITY STUDY
The Professional Mineral Council has accepted the reply given by Ivanhoe Mines Mongolia to its
letter seeking clarification on certain provisions of the technical and economic feasibility study for
the Oyu Tolgoi project. This clears the way for work to begin on the project on the stipulated day
of April 6, six months after the investment agreement was signed.
Altogether 12 changes have been incorporated in the original study.
Source: English.News.mn
IVANHOE WILL NOT SELL ITS STAKE IN OT, SAYS FRIEDLAND
Ivanhoe Mines is looking at various options to fund its development of the Oyu Tolgoi project, but
will not sell a stake in the project itself, Executive Chairman Robert Friedland has said. Speaking at
a special session on Mongolia at Asia Mining Congress 2010 in Singapore, Mr. Friedland said both
Ivanhoe and the Mongolian Government, which owns 34% in the project, have the first right of

refusal if either party wants to sell a stake.
With both sides unlikely to sell their stake in the mine, ―the only way for anyone to participate (in
Oyu Tolgoi) is to become a shareholder of Ivanhoe, and we like it that way‖ he said. Asked if China
Aluminum Corp., or Chinalco, is in negotiations to buy a stake in Ivanhoe, Mr. Friedland said every
mining company ―is sniffing around‖ for opportunities, but he would not comment on interest from
any specific company.
He said the only three companies technically capable of undertaking such a large project as Oyu
Tolgoi are Rio Tinto, Chile's Corporacion Nacional del Cobre, or Codelco, and Freeport-McMoRan
Copper & Gold Inc. Rio Tinto, the technical operator of the project, already has a 22.4% stake in
Ivanhoe and has an option to take it up to 46.6% eventually. Chinalco, which holds around 9% of Rio
Tinto, is currently the single largest shareholder in the Anglo-Australian miner.
Mr. Friedland said Ivanhoe has budgeted to spend USD758 million on the construction of the Oyu
Tolgoi mine in 2010 alone. It has appointed Citigroup Inc. and Hatch Corporate Finance to explore
funding options. Mongolia's gold production is expected to rise 300% and copper production will also
rise significantly in the next five years as a result of the new project, he said.
Source: Dow Jones Newswires
VOYAGER ACQUIRES 80% OF DALITIIN OVOR GOLD PROJECT
Voyager Resources is acquiring 80% of the high-grade Dalitiin Ovor Gold Project in south central
Mongolia. The property is the latest in a number of Mongolian prospects that Voyager has invested
in.
Dalitiin Ovor is about 600km south-west of Ulaanbaatar. It is 792 hectares and is within the
Bayankhongor Gold Belt.
Source: www.voyagerresources.net
GREEN GLOBAL MONGOLIA MINE TO START OUTPUT IN H2
Green Global Resources will start iron ore production in the second half of the year in Mongolia,
despite disturbances caused by severe weather. ―We're about two weeks behind schedule now but
we are working hard to catch up,‖ Mr. Joseph King, newly appointed chairman of the agribusiness-
turned-mining company, has said. Green Global will change its name to North Asia Resources
Holdings Ltd following a reverse takeover last year amid a raft of Mongolian mining firms flocking to
Hong Kong to list.
It has invested in an iron ore mine in Dundgobi province, about 270 km southwest of Ulaanbaatar,
with an estimated 148.9 million tons of iron resources and 174,000 tons of copper resources in the
First Mine Area alone, which accounts for about 8.33 percent of the total mine area. ―Cash flow will
start to come in after production starts in the second half,‖ Mr. King said.
State-owned China Railway Engineering Corp will have an 8 percent stake in the company, and has
agreed to buy at least 1.5 million tons of iron ore per year at market prices and provide
transportation services for the mine's output of at least 2.5 million tons per year to Erenhot for 10
years with an option to renew.
Mr. King said the company will announce after the Easter holiday a China state-owned company as
contract miner for the iron ore project, Golden Pagoda, which holds mining rights in the Oyut Ovoo
property. China Railway is building a docking station for the project, with work to be completed in
July, which will facilitate transport of the ore between Mongolia and China, he added.
Green Global also has recently announced plans to buy two alluvial gold mines in Mongolia for USD5
million.
Source: Reuters.com
GROUP WORKING ON PROCESSING FACTORY AT ERDENET
An 11-member working group led by MP D.Damba-Ochir is working on preparation of guidelines for
constructing a processing factory at Erdenet Mining Corporation. Revenue from Erdenet would be
increased 4-5 times once the facility is operational.
DECISION ON ANOD BANK LIKELY TO BE LEFT TO PARLIAMENT
A decision on the widely expected dissolution of Anod Bank has once again been postponed. It is
believed the Financial Regulation Commission has suggested that the final decision be left to
Parliament. The new Central Bank Law which took effect on March 1 also facilitates the
postponement.
Shareholders are likely to be consulted before a decision is taken. However, Anod Bank is almost

certain to go into liquidation if no investor comes forward with MNT250 billion.
Source: Zuunii Medee
MSM AND MERCEDES-BENZ DONATE ENGINES TO MUST FOR STUDENTS’ TRAINING
Mongolian Star Melchers (MSM) and Mercedes-Benz
have donated fully assembled Mercedes-Benz engines
worth MNT8.6 million to the Mechanical School of
Engineering (MSE), a branch of the Mongolian
University of Science and Technology (MUST), for
training purposes. These gasoline and diesel engines
in the class of Euro 3 and 4 emission standards will
help students get familiar with today‘s complex
automotive engine technology. These are engines
low in weight, consumption and emission.
MSM and MUST have had an effective partnership
since 2003 to provide vocational on-the-job training
to some 20 MSE students at a time in the MSM
workshop. To date, 190 students have completed the training and 30% of them are now employed in
the automotive sector in Mongolia.
MSM is the distributor of Mercedes-Benz, Jeep Chrysler and Dodge here.
Source: Mongolian Star Melchers
HOW BLOOD TIES SET GOLOMT BANK ON ITS WAY
Mr. L. Bold and Mr. L. Boldkhuyag, two brothers who, along with Mr. D. Bayasgalan and Mr. M.
Zorigt, established Golomt Bank 15 years ago, recently revealed an interesting experience of theirs
when they were looking for finance to set up what would be Mongolia‘s first private bank for their
project. They had both studied in Germany and decided to approach Commerzbank. They were
granted 15 minutes with the CEO, who was impressed by the brothers‘ introductory assertion,
―We‘re here to seek your cooperation, not to beg money.‖ As the conversation continued, the
Mongolians made an incidental reference to a blue spot that appears on the back of the thigh of
many newborn children in their country. The German almost fell off his chair, saying this was
common in their family, too, and had baffled doctors. A quick review of ancestry led to the
conclusion that common Magyar blood was responsible for the similarity. With such blood ties
established, it was not difficult to get a loan on low interest.
Thus began Golomt Bank which still remains Mongolian-controlled and a leader in the sector, with
several innovative and pioneering moves to its credit.
CHINA JAILS RIO TINTO STAFF FOR 7-14 YEARS
A Chinese court jailed four Rio Tinto staff for seven to 14 years on Monday for taking bribes and
stealing commercial secrets, a sentence Australia said was harsh. Rio Tinto said it would fire the
four to distance itself from what it called "deplorable behavior" in a case that dates back to the
middle of last year. It said Chinese prosecutors had unearthed "clear" proof of backhanders. Internal
investigation had shown that all wrongdoing was outside company systems, it added.
Canberra acknowledged there was convincing evidence of corruption, adding that ties with Beijing
would not be hurt by the verdict in a trial which has been closely tied up with politics and
diplomacy. But Australian Foreign Minister Stephen Smith said he still had "serious unanswered
questions" about the most controversial part of the trial, covering the stealing of commercial
secrets, which was held behind closed doors. Rio said it could not comment on these charges.
The Shanghai Intermediate People's Court sentenced China-born Stern Hu, who headed Rio Tinto's
iron ore operations in China, to 10 years in jail, with parts of a seven-year bribery term and a five-
year secrets sentence running concurrently. Three other executives, all Chinese nationals, were
jailed for seven to 14 years on bribery and secrets charges.
The court said the defendants helped obtain information from confidential strategy meetings of the
China Iron and Steel Association, which represented the Chinese steel industry in negotiations with
the world's three top iron ore suppliers, Rio, BHP Billiton and Vale.
Read more…
The Rio chief executive, Mr. Tom Albanese, said the miner would focus on improving ties with China
now the trial was over. "I am determined that the unacceptable conduct of these four employees
will not prevent Rio Tinto from continuing to build its important relationship with China. This is a

high priority for me personally," he said.
Rio declined to comment on the commercial secrets charges that were at the heart of most foreign
investor concern about the case, saying the firm had not been able to consider the evidence.
Source: Reuters.com
POLITICAL LESSON FOR RIO TINTO
Rio Tinto accepts that four executives sentenced by a Chinese court to between seven and 14 years
for bribery and industrial espionage were guilty of at least some of the charges. But the suspicion
that the trial and heavy sentences were at least partly politically motivated is worrying for Rio
investors, as well as other Western investors in China.
Rio is hardly the first Western multinational to confront bribery within its ranks. The Anglo-
Australian miner has fired the employees who had taken bribes from Chinese steel companies
wanting preferential terms for buying Rio's iron ore. It strengthened internal controls after their
arrests and has rejiggered management of its China business.
China is right to clamp down on rampant corruption in the country. But the severity of the
sentences and the lack of detail on the spying charges raises suspicions of a wider political agenda.
The four Rio employees, one an Australian national, were arrested shortly after Rio pulled out of a
planned deal with Aluminum Corp. of China, the state-owned metals company, which would have
given Chinalco two board seats at Rio. The Shanghai trial opened on the day that Rio boss Tom
Albanese gave a long-planned public speech in Beijing. Rio, along with other leading global mining
groups, is currently engaged in fractious negotiations with Beijing over iron-ore pricing.
Read more…
Rio is confident its relationship with China will survive the bribery scandal. It has just sold it a stake
in its Guinea iron-ore project and plans to extend its partnership. But the capriciousness of the
Chinese legal system, not least the fact that information in the public domain can be deemed so
sensitive that exchanging it counts as spying, should remind Rio that such a partnership comes with
an extra level of risk.
Source: The Wall Street Journal Asia
KISSINGER HELPS RIO TINTO BUILD BRIDGES WITH CHINA
Rio Tinto turned to U.S. elder statesman Henry Kissinger for help in building bridges with China
following the jailing of four of its employees. The Sydney Morning Herald, without naming its
sources, said Dr. Kissinger helped secure a meeting on Rio's behalf with Mr. Wang Qishan, a
Politburo member and former banker who handles many of China's international financial affairs.
Source: AFP
FORD SELLS VOLVO TO CHINESE COMPANY FOR USD1.8 BILLION
In the biggest overseas acquisition by a Chinese auto maker, Zhejiang Geely Holding Group has
bought US auto giant Ford Motor‘s ailing Swedish car unit Volvo Car Corporation. The deal gives
Geely 100 percent ownership of the company and was inked by Geely chairman Li Shufu and Ford‘s
chief financial officer Lewis Booth at the headquarters of the premium Swedish auto firm in
Gothenburg.
Mr. Booth said the sale was for USD1.8 billion, less than a third of the USD6.4 billion Ford paid for
Volvo Car in 1999. The transaction will be made through a USD200-million note, while the
remainder will be paid out in cash, he was quoted as saying. Geely said it had secured all the
financing necessary to complete the deal.
―China, the largest car market in the world, will become Volvo‘s second home market. Volvo will be
uniquely-positioned as a world-leading premium brand, tapping into the opportunities in the fast-
growing China market,‖ Mr. Li said. He promised that Geely would maintain the strong collaborative
relationship that Volvo had built with employees, unions, suppliers, dealers and customers.
Volvo Car will eventually be a separate company with its own management team based in
Gothenburg and a new board of directors.
Read more…
The sale could help the Chinese car maker further its global ambitions while allowing Ford to exit a
money-losing business that was a distraction from its core operations. Analysts note Geely has little
experience selling cars outside China, let alone running major manufacturing operations in a
country as far away and as different from China as Sweden. Geely's lack of global stature, and its
past reputation for making low-end vehicles, could ding Volvo's reputation for quality.
Source: The Telegraph, Kolkata

ECONOMY
MINING CONFERENCE URGES MPs TO HEED EXPERT OPINION
Altogether 454 delegates from 18 state organizations, 5 academic institutions, 11 NGOs, and 216
entities in the mineral sector, as well as scholars, local governors, and diplomats, attended a
conference last week jointly organized by the Ministry for Minerals and Energy, and the Mongolian
National Mining Association.
The meeting urged MPs and others associated with legislation and making policy:
 to respect public opinion and ensure that it is reflected in the State policy on the minerals
sector and, once it is adopted, to follow the policy consistently;
 not to pass any laws related to the minerals sector until the proposed policy is adopted;
 to amend, on practical considerations, the law prohibiting exploration and excavation near
forests, water sources, and protected regions; and
 to make a statutory practice of seeking the views of professionals, academic institutions
and business entities before taking important decisions in the minerals sector.
The executive authorities were asked:
 to formulate the mineral sectors policy in collaboration with professional associations and
to reflect public opinion prior to submitting the policy to Parliament;
 to review the contradictions between the existing laws in the minerals and submit to
Parliament draft amendments to remove such anomalies;
 to pay special attention to human resources issues in the minerals sector; and
 to ensure that a percentage of mining production taxes goes to the local budget according
to the Minerals Law.
Member companies were enjoined:
 to carry out appropriate restoration work in areas damaged by mining;
 to show social responsibility and work closely with local communities and administrations;
and
 to abide by the principles of responsible mining and the recommendations of the extractive
industry transparency initiative.
Read more…
An appeal was made to local administrations to support companies working legally in their area and
not to request them for any improper donation.
During the deliberations, several mining representatives had complaints about recent legislation,
especially about the law restricting mining near rivers and forests.
Implementation of the law would entail cancellation of 1,128 mining licenses. It would also mean
MNT314 billion less in the State budget and about USD2 million to be paid as compensation. Taken
together this may well set the economy back by years. A survey has also shown that more than
50,000 jobs are related to the licenses that stand to be canceled. Those who developed the law,
such as MP B.Bat-Erdene, have however refused to budge, saying protecting the environment had
more long-term value than immediate economic considerations.
There was near unanimity that the 68 percent windfall tax had done no good and had held back
development of mining, particularly that of gold. MP S.Oyun feared that more such bad laws will be
proposed to meet the irresponsible election promises that would certainly be made in the 2012
Parliamentary election. She called for ―a political consensus to reject short-term benefits at the
cost of sustainable development‖.
Source: Mongolian National Mining Association, Ardiin Erkh
FOUR MINING-RELATED ITEMS ON PARLIAMENT AGENDA
The list of business at the Spring session of Parliament, to begin on April 6, includes four items
directly related to the minerals sector. These are:
i) the Tavan Tolgoi investment agreement;
ii) a draft resolution on construction of a copper smelter and a coal processing plant;
iii) a draft resolution on a consolidated strategic policy on railway development; and
iv) a draft law on regulating use of explosives.
Source: www.news.mn
ISSUE OF FRESH WORKING VISAS HELD UP
The Immigration Agency is not issuing fresh working visas to foreign nationals as the Government
has not yet prepared fresh guidelines. The Government wanted changes in the present practice to
meet the possible demands following implementation of the Oyu Tolgoi project and the expected

improvement in the construction sector, but says it needs more time to take a decision.
Source: Business Council of Mongolia
WORLD BANK APPROVES SCALE-UP OF ENERGY PROJECT
The World Bank has approved a USD12-million scale up of a successful Mongolian energy project.
The project was begun in 2001 and has been instrumental in improving the financial sustainability
of the energy sector by reducing losses and improving revenue collection in Ulaanbaatar and 9
provincial centers. As of 2009, the cumulative reduction in total distribution network losses has
resulted in increased revenues of around USD17 million.
According to the Ulaanbaatar Electricity Distribution Network Company (UBEDN), demand for
electricity is expected to double in the next five years and triple by 2020. The city's power system,
including transmission and distribution networks, is already under strain as it has not been properly
updated for over 40 years. The scale-up will enable the Government to further reduce losses in
distribution networks and to meet urgent investment needs at UBEDN. It will ―further contribute to
the energy sector's financial viability, improve efficiency, and serve as a platform for continued
dialogue and engagement in this important area of Mongolia's development,‖ said Mr. Arshad Sayed,
Country Manager and Resident Representative of the World Bank in Mongolia.
Source: www.worldbank.org
ARBITRARY RUSSIAN DECISIONS ON OIL PRICE HIT MONGOLIA HARD
Mongolia imports 54,000 tons or 90% of its petroleum products from only one Russian company,
Rosneft, and has to agree to whatever price that company sets. Surprisingly, even with oil prices
steady in the global market, domestic prices in Russia have been rising in the last two months,
baffling observers in the media there. Exports to Mongolia raise prices even more, as excise tax,
customs tax, automobile tax, VAT are added, along with transportation and storage costs. The
Russian Federation also fixes the export tax every month, but this seems an arbitrary exercise,
based apparently on the average price in the previous month. Since, as we said, this price increases
in Russia for no clear reason, Mongolia ends up paying more than it logically should in any fair trade
deal.
According to the National Statistics Office, 28.3% of what Mongolia pays for imports is spent on oil
from Russia, and this is usually more, in absolute terms, than what it earns from exporting copper
concentrate. This is an anomaly that has to be rectified if our economy is to be sustained.
Source: Onoodor
FINANCE MINISTER PROPOSES TO SELL STOCKED PETROLEUM
Finance Minister S.Bayartsogt has submitted a draft resolution to Speaker D.Demberel seeking
permission from Parliament to sell the petroleum in State storage. Altogether 28 tons of petroleum
was purchased for MNT44 billion as a hedge against future price rise and shortage. The Government
has so far spent MNT5 billion toward the cost of storage and other related expenses. This and the
need for money following the abolition of the Mongolia Development Fund have now persuaded the
Government to sell the entire amount to petroleum importers.
ACCOUNTANTS’ ORGANIZATION HAS 2,000 MEMBERS NATIONWIDE
Established 14 years ago, the Mongolian Institute of Certified Public Accountants today has over
2,000 members spread over 25 branches in Ulaanbaatar and the provinces and working for more
that 60 firms. Its Executive Director, Mr. L. Enkh-Amgalan, has revealed that its recent activities
include preparation of amendments to the present Law on Audit, and a translation of the
International standards of financial reporting, done under an agreement with the Ministry of
Finance. The institute also publishes professional books and journals for members. It is an active
member of the World Association of Accountants, and also of the Association of Asia Pacific
Countries‘ Accountants. It keeps in close touch with public accounting organizations of Japan, South
Korea, and India. Its members are expected to work for correct reporting of financial information in
accordance with international standards. They are also encouraged to be competent analysts and
efficient consultants.
WORK ON SEMI-COKING COAL PLANT TO BEGIN THIS YEAR
Power Station No.2 hopes to begin construction of a semi-coking coal plant later this year so that it
can be operational in 2013. The project is part of the Government‘s clean coal program and is

expected to meet the entire needs of ger district residents who use traditional coal stoves for
heating. The Government has allotted MNT17 billion for the project and will announce an
international bid for designing a new kind of stove.
Source: Onoodor
MONGOLIA MINING REPORT Q2 2010 PUBLISHED
The just published Mongolia Mining Report Q2 2010 provides a detailed analysis of the agriculture,
farming and raw materials market. It says Mongolia is beginning to benefit from its rich indigenous
resources as the global markets make a tentative recovery. In addition to rallying commodity
prices, Mongolia continues to benefit from renewed confidence from foreign investors following the
approval of the Oyu Tolgoi project.
In addition to new investors, companies already operating within Mongolia are also developing their
mining projects in the country.
Source: www.companiesandmarkets.com
WORLD BANK CHIEF SEES OPPORTUNITY FOR CHINA TO REVALUE CURRENCY
China's efforts to make its economy more consumer-driven could become an opportunity for Beijing
to revalue its currency, feels World Bank President Robert Zoellick. He has said China increasingly
recognizes that its industrial structure is out of whack, with high profits accruing to State-owned
enterprises accounting for much of the country's extraordinarily high savings rate. Part of the
reason for those profits, he said, is that State-owned Chinese banks lend to other State-owned
companies at very low rates and pay Chinese depositors very low rates of interest. World Bank chief
economist Justin Lin, a Chinese national, also has attributed the profits to wages the companies
pay, which he said are "depressed compared to the potential".
"The real savings outlier is the retained earnings of some of the companies, especially of the state-
owned enterprises," Mr. Zoellick said. "This creates a win-win opportunity for change, which the
Chinese recognize as a possibility. But these structures aren't easy to change." To the degree that
China remakes its society to depend more on consumer spending, Mr. Zoellick said, that ought to
reduce the savings rate—and also could become an opportunity to revalue the currency. That is
because a stronger renminbi—also known as the yuan—would increase the purchasing power of
ordinary Chinese. An appreciating currency would also send a signal to companies to focus future
investment and capacity more toward domestic demand, whose purchasing power is being boosted,
rather than producing for export.
Mr. Zoellick's remarks weren't timed to be part of a U.S. offensive; nevertheless, they add to the
weight of opinion that China can afford to increase the value of the yuan against the dollar.
As part of an initiative by the Group of 20 industrial and developing nations, China, the U.S. and
other countries have agreed to "rebalance" their economies—meaning the U.S. will save more and
import less, and China will do the opposite. Making such changes, though, is difficult for political
and economic reasons. "If I would make a bet which country is going to make changes more
quickly—China or the U.S.—I'm not sure where I'd come down," said the 56-year-old Mr. Zoellick,
who before taking the World Bank post in 2007, spent decades as a top U.S. official.
CHINA ECONOMISTS URGE RENEWED YUAN RISE
China should allow the yuan to resume its gradual appreciation, two new advisers to the central
bank said on Tuesday, as Beijing faces intense U.S. pressure to let its currency rise.
The clock is ticking down toward an April 15 ruling by the U.S. Treasury on whether China is
deliberately manipulating its currency to keep its exports competitive and gain an unfair advantage
in global markets.
Beijing allowed the yuan to rise 21 percent against the dollar between July 2005 and July 2008
before effectively repegging the currency near 6.83 to the dollar to help its exporters ride out the
global credit crunch.
"(China) should resume the pre-crisis managed floating exchange rate as quickly as possible," Mr.
Xia Bin, a researcher with the Development Research Center, a think-tank under the cabinet, said.
He is one of the three economists named on Monday as members of the People's Bank of China's
monetary policy committee, which plays a key advisory role in framing monetary policy. Big
decisions on exchange and interest rates, however, are taken by China's political leaders, not the
central bank.
Mr. Li Daokui, another new member of the advisory body, said China should give up the dollar peg
before September. He singled out September as a deadline so that political debate over the yuan

does not boil over in the run-up to U.S. mid-term elections in November.
Source: Reuters.com
FIVE G-20 LEADERS PRESS FOR ECONOMIC REFORMS
Leaders of the U.S., Canada, South Korea, Britain and France, looking to spur efforts to remake the
international economic system, urged other leaders of the Group of 20 nations to "recommit
themselves and deliver on the [G-20's] ambitious reform objectives and agenda". By making the
letter public, the five leaders sought to set the agenda for a June meeting in Canada of the G-20,
the organization of industrialized and developing nations, and to achieve concrete results by the
end of the year. "It's acting on the agreements that matters," they wrote.
The G-20 has become the leading forum for international economic issues, but has an unwieldy
leadership structure, which includes the countries that hosted last year's summits, the U.S. and
U.K.; this year's summit, Canada and South Korea; and France, which will host next year's summit.
That is why all five leaders signed the letter. In addition, despite China and India's growing weight
in the global economy, they rarely play a leadership role in G-20 sessions.
The letter also comes about three weeks before a meeting of the International Monetary Fund in
Washington where many G-20 issues will be hashed out.
Read more…
A number of senior economic officials say they worry that the momentum for economic cooperation
is fading as the global crisis ebbs. World Bank President Robert Zoellick has said that differences in
how quickly China and India are growing compared with the U.S. and Europe also complicate
international negotiations. "It's no longer what you do for financial markets or what's in a fiscal
stimulus," he said. "You have different dimensions of the problem depending on the areas."
The letter reaffirmed what G-20 nations had agreed to in the past, including a "rebalancing" of
economic growth—meaning current-account-deficit countries such as the U.S. would increase
savings and reduce imports while current-account-surplus countries such as China would do the
opposite. It also laid out a strong financial regulatory agenda, including tougher capital and
liquidity standards for banks, requirements that over-the-counter derivatives be traded on
exchanges, and the establishment of cross-border mechanisms for shuttering large, troubled
financial institutions.
The G-20's goal is to head off another financial crisis and, if one should occur, to avoid another
round of massive taxpayer-funded bailouts. "While confidence in the financial system has improved,
more work is required to restore the soundness of some global banks' balance sheets," the letter
said. But it didn't address how the countries would reach agreement on capital and liquidity
requirements, and the divide over the issue between the U.S. and Europe.
LOCAL ASIA BONDS LURE MORE FOREIGN BUYERS
Foreign ownership of Asian local-currency bonds is rising, the Asian Development Bank said in a
report last week that describes a favorable market environment, but also warns that capital inflows
can be a destabilizing factor. Money has been flowing into Asian bond markets as fiscal stimulus and
accommodative monetary policies have helped Asia recover from the global economic downturn
ahead of other parts of the globe. Mongolia is planning a large bond sale later this year, but the
currency has not been decided yet.
The March edition of the bank‘s Asia Bond Monitor finds that locally denominated Asian bonds are
gaining traction as an asset class, attracting both domestic and foreign investors searching for yield
and portfolio diversification. The acceleration of foreign bond ownership does carry some risks. ―If
an increasing proportion of foreign investment is going into the most liquid segments of Asia‘s local
currency bond markets, those countries could be a bit concerned about a possible reversal [of the
flows] because benchmark markets are easy to get in and out of because of the high liquidity,‖ said
Mr. Noritaka Akamatsu, a senior adviser in the ADB‘s Office of Regional Economic Integration. ―But
this is not just a matter for the bond markets, this is also a matter of currency control, exchange
rate management as well as capital account control.‖
The report also noted the inherent uncertainty in the market. Risks ―include a reversal in the
recovery in developed economies, a premature tightening of monetary policies and hasty exit from
fiscal stimulus packages, and potentially destabilizing capital inflows‖. the ADB said.

POLITICS
PRESIDENT’S RUSSIA VISIT ONLY AFTER PARLIAMENT TAKES SOME DECISIONS
Mr. D. Dorligjav, Head of the President‘s Office, has clarified that it is wrong to say President Ts.
Elbegdorj‘s visit to Russia has been deferred, as no specific dates were fixed. The preliminary work
could not be completed for the visit to take place in March, as had been initially planned.
Parliament has to approve policies on some issues, such as uranium and new railway routes, before
the President can discuss them with his Russian hosts prior to signing formal agreements.
He also indicated that Russia considers the ―great debt‖ a closed chapter and agrees with Mongolia
that the unresolved financial issue is unrelated to it. Both countries are confident that the matter
will be settled amicably, without straining relations.
Source: Undesnii Shuudan
CIVIL MOVEMENTS TO MEET ON APRIL 2
All civil movements in Mongolia are expected to participate in a conference at the Cultural Palace
of the Mongolian Trade Unions on April 2. Representatives of several other organizations, in both
urban and rural areas, as well as intellectuals, scholars and scientists are also expected to attend
the meeting, whose motto is "Save Our Motherland, Assert National Independence and Sovereignty‖.
The meeting is expected to release a statement calling upon the people to join the demonstration
on April 5 to protest against unfulfilled promises.
Source: Montsame
NO STONES AND STICKS AT MARCH ON APRIL 5
Organizers of the people‘s march on April 5 have announced that nobody should carry weapons such
as stones or sticks. Calling for cooperation with the police to maintain peace, they urged a ban on
alcohol sale on the day.
POLICE BOSS SAYS FORCE SEVERELY UNDER-EQUIPPED
Responding to criticism of police work at a meeting of the Standing Committee on Legislation,
Deputy Director of General Police N.Enkh-Amgalan admitted the police do not have the capacity
and resources to tackle any protest by 10,000 or more people as happened on July 1, 2008. MNT88
billion would be needed to upgrade the arms and equipment of the police organization, but there is
provision for only MNT3.2 billion, he said.
Minister for Internal Affairs Ts.Nyamdorj told the committee that if money is available, the
Government would prefer to hand over the job of border protection to regular soldiers, instead of
to military trainees. The committee was discussing the draft Police Organization Law and decided
to submit it to Parliament.
JAPANESE HELP SOUGHT TO BUILD NUCLEAR POWER PLANT, LAUNCH SATELLITE
Returning to Mongolia after a week‘s visit to Japan on invitation from the Government, Mr. D.
Dorligjav, Head of the President‘s Office, told media that he had discussed with the appropriate
authorities there the possibility of setting up a small nuclear power plant to meet the country‘s
ever increasing energy demands. A joint program is studying how best use can be made of
Mongolia‘s natural resources and Japanese technology in this regard. Some preliminary and
exploratory talks were also held on Japanese assistance for Mongolia to launch its own
communication and weather satellite.
JAPANESE CAN NOW SPEND 30 DAYS WITHOUT VISA
Japanese citizens can now enter Mongolia and stay here for up to 30 days without a visa.
The decision was taken in a bid to attract more Japanese tourists, said Mr. G. Zandanshatar,
Minister of Foreign Affairs and Trade. Between 12,000 and 14, 000 Japanese visit Mongolia every
year but the number rose to 20,000 in 2006, when a temporary visa exemption was granted.
A foreign tourist spends USD350 on an average during his stay in Mongolia, which means tourism
revenue of USD13-14 million every year, said the Mongolian Ministry of Environment and Tourism.
Source: FOCUS News Agency
DISTRIBUTION OF MNT70,000 DEFERRED BY TWO WEEKS
The second stage of the distribution of the Human Development Fund allowance will now begin on

April 15, instead of April 1 as earlier announced. This is because the full list of citizens received
from the State General Registration Authority on March 22 has to be double checked to make sure
there is no duplication of payment.
Source: Onoodor
MINISTER PREPARES DRAFT ENABLING PEOPLE TO VOTE FOR BOTH CANDIDATE AND PARTY
DP MP and Defense Minister L.Bold has prepared a set of draft amendments to the present laws on
elections to Parliament. The main feature of the draft, developed with help from Honored Lawyer
B.Chimed and a former Minister for the Interior, J.Amarsanaa, is its recommendation of the
proportional representation system. Mr. Bold has explained to media that the draft calls for a voter
to be given two lists – one to choose the party or coalition of parties, and the other to choose the
individual candidate. He will indicate his choice for both, but he cannot vote for one party as the
party of his choice and then for the candidate(s) from another party.
A candidate will be elected MP only if he gets the votes, and this will not depend on where the
party puts his name on its list. Parliament will have members chosen by a proportional system, but
they will not be the choice of the party leadership after the election. Voters will have the list of
that party‘s proposed MPs when they cast their vote. ―This way, we are preempting the possibility
that a coterie in a party will call the shots,‖ Mr. Bold said. No matter how much his party may want
him, a candidate has to get ordinary voters‘ support in his chosen constituency.
A non-party candidate will be required to be a resident of the constituency and will need signatures
from at least 801 voters supporting him. He will be declared a candidate only after the signatures
are found valid by the local Governor‘s office.
Mr. Bold said Germany has been using this system quite successfully for long and ―there is no reason
why Mongolia cannot do so‖.
Read more…
The constituencies will be large and will elect many candidates. They will be demarcated to let all
of them have around the same number of voters and elect the same number of candidates. Several
provinces in the countryside and 2-3 districts in UB city will be combined to form one constituency.
The number of people allotted to any polling center will also be kept manageable.
Seeking an end to the practice of candidates promising or distributing money to voters, the draft
allows candidates to campaign not as individuals but only on behalf of the party, which will
organize all meetings. A candidate will not be allowed to promise anything not included in the
party‘s platform or to spend money beyond what is approved for the party. No one will be allowed
to enroll underage children in campaigning.
Source: Ardiin Erkh
XAC BANK AND GTZ OFFER HELP TO GRAPPLE WITH ULAANBAATAR’S SMOG
Local bankers and development organizations are striving to combat air pollution at its main source
– the 150,000 suburban households in Ulaanbaatar, most living in traditional Mongolian gers or
single-family homes that can resemble log cabins. These neighborhoods are not linked to the city‘s
central heating system and burn a combination of wood and coal for heating and cooking. The
poorest burn tires, trash, and whatever else they can find to stay warm during Mongolia‘s frigid
winters.
Coal-fired ger stoves release high levels of ash and other particulate matter (PM). When inhaled,
these particles can settle in the lungs and respiratory tract and cause health problems. At two to 10
times above Mongolian and international air quality standards, Ulaanbaatar‘s PM rates are among
the worst in the world, according to a December 2009 World Bank report. The Asian Development
Bank (ADB) estimates that health costs related to this air pollution account for as much as 4 percent
of Mongolia‘s GDP.
At the Government‘s urging, several major development organizations, including the World Bank
and GTZ, the development arm of the German Government, joined by Mongolian institutions,
including micro-finance lender Xac Bank, have launched a project to improve ger stove designs. The
aim is to make new stoves widely available, thereby reducing fuel consumption and emissions.
Read more…
In the past, similar programs met with mixed success. Now GTZ has developed a new ger stove
model, which includes insulating bricks to retain heat – and thus use less fuel – and two air intake
channels to raise the combustion temperature and cut emissions. The stoves can burn all types of
fuel, even high quality semi-coke coal. Last year, Xac Bank adopted the fifth generation of GTZ‘s
stove design for an eco-loan program. Xac Bank and GTZ claim that the stove cuts fuel use by more
than 50 percent, although customer feedback indicates a less stellar performance. Mr. Matthew

Kuzio, who works on the project in the bank, says, ―Most [customers] are saying it‘s a 30 to 40
percent reduction of fuel.‖ Apart from this, Ms. Ruth Erlbeck, GTZ‘s Integrated Urban Development
Program Manager, suggests that many cannot afford the new stoves at around USD110.
The bank‘s sales pitch does not focus on the environmental benefits. ―We don‘t even talk about the
environment – just money and warmth,‖ says Mr. Kuzio. But the environmental benefits
nevertheless help the bank finance the program: Xac sells carbon credits based on stove sales on
the voluntary carbon offset market via an American company called MicroEnergy Credits.
Only a few hundred families have obtained loans for the stoves, along with other eco-products,
from Xac Bank since the lending program began last December. The bank and GTZ officials have
opposing views on how to get enough stoves into the ger districts to make an environmental
difference. Ms. Erlbeck says a subsidy program is necessary to cut consumer costs to reasonable
levels; Mr. Kuzio argues that NGO programs often end before they become sustainable.
Despite the differences, both are optimistic that progress can be made, in part because USD30
million in Mongolia‘s Millennium Challenge Account is earmarked for clean energy initiatives over
the next three years.
Source: www.eurasianet.org
75% OF UB BUILDINGS WILL COLLAPSE IN A 7.0 SCALE TREMOR
Earthquake experts told the Citizens‘ Council of the President yesterday that 75 percent of the
93,000 buildings in Ulaanbaatar will crumble in the event of a 7.0 magnitude quake. Important
landmarks like Government House, Opera House, Drama Theatre, Mongolian Telecom, Thermal
Stations 3 and 4 have been identified as particularly vulnerable.
The prospect is not as farfetched as it may appear. Already this year, 270 tremors have been
registered in the country, while the figure in 2009 was 508, indicating an increase in earthquake
activity. The average magnitude has also increased by 1 point on the Richter scale.
FORMER PM WANTS NATIONALISM TO REPLACE FAITH IN “BORROWED CONCEPTS”
Former Prime Minister M.Enkhsaikhan feels Mongolians have ―surrendered all powers of
discernment‖ and are happy to be guided by ―borrowed concepts‖. As an example, he cites the
insistence on good governance. This, he says, is nothing but a ploy to keep Mongolians busy and
divided, ―blaming one another for bad governance‖. He clarified that he was not advocating
―closing our doors on the world‖.
Blaming politicians for ―talking much without listening to the people‖, Mr. Enkhsaikhan said the
country‘s leaders ―hold so many meetings that everybody is convinced they talk wisely‖. His New
National Party wants to replace the present Constitution, ―a product of part-socialism and part-
liberalism‖ that has succeeded only in establishing ―oligarchs‘ governance‖, with one based on
patriotism and nationalism. ―We need responsible, systematic and powerful governance. For this
the Constitution must be changed so that we adopt a Parliamentary system under a strong
President,‖ he said. He knew this is ―a revolutionary concept of government‖ but the envisioned
revolution will be a ―national one, not Bolshevik‖.
Source: English.news.mn
MINISTER WANTS TO USE GERMAN KNOW-HOW IN CLIMATE CHANGE
During a recent visit to Germany, Minister of Environment and Tourism L. Gansukh said in an
interview Mongolia hopes to benefit from German know-how when it comes to dealing with climate
change. "Germany has a long tradition of forest management. And it has already developed climate
models for the next 100 years. As we share experience in these fields we hope to learn some things
that can be implemented in Mongolia, as we develop our climate change adaptation strategy,‖ he
said.
The Minister said one figure best illustrates how Mongolia has been impacted by the global climate
change. The global average temperature rise has been 0.74 degrees C, whereas in Mongolia it has
been 2.1 degrees in the past 70 years. ―This causes serious problems such as water shortage, the
drying up of rivers and springs, as well as drought and increasing desertification, which also leads to
biodiversity loss," he said.
Yet another ecological challenge facing the country is caused by mining. The industry is already
very important in Mongolia but it is likely to grow dramatically over the coming years. There have
been reports that illegal gold miners, the so-called "ninjas", have been polluting the environment
with mercury. Mr. Gansukh agreed that this was a concern, saying, "In the past 20 years, during the
transition period from a planned to a market economy, there were many instances of small-scale

gold mining, which were not always environmentally friendly. We will not tolerate that anymore.
We have a new law that does not allow small-scale gold mining which damages the environment."
Source: Deutsche Welle
ECONOMIST AND FORMER PM CALLS FOR “RADICAL CHANGES”
Former Prime Minister and Honored Economist D.Byambasuren feels that the promises given by
political parties to give MNT1-2 million to every citizen can be met, ―maybe not immediately but
surely some time not too late‖, if the coal from Tavan Tolgoi is exported in a semi-coked state. The
campaign promises had raised expectations, and many herders took bank loans because they
believed they would soon have the money to repay them. Now ―the deceived citizens have a right
to seek an explanation from people who were elected on the basis of false promises,‖ Mr.
Byambasuren said.
The corruption and arrogance of oligarchs have fueled people‘s anger. ―We established democracy
without shedding blood, but there is no guessing what will happen if the present style of
governance continues,‖ he said, adding, ―We need radical changes in our politics and economy.‖
Source: Ardiin Erkh
MONGOLIAN GEOLOGISTS AS GOOD AS ANY, CLAIMS TEACHER
The School of Geology and Oil at the Mongolian Technical University is celebrating its 50th
anniversary this year. So far some 2,000 people have graduated from here and they have been
responsible for almost all mineral exploration in the country. Mr. J. Lkhamsuren, a teacher at the
school, credits one of their alumni, Mr. D. Garamjav, with discovering coal deposits at Oyu Tolgoi.
He asserts that the skill and qualifications of Mongolian geologists match those of non-Mongolians
employed by big foreign-invested companies. Indeed, their familiarity with the ―intricate geological
structure of our territory‖ on occasions makes them even better suited for work here, especially in
geological mapping and geological exploration.
WEATHERFORD SCORES ANOTHER HIT WITH MONGOL QUEENS HISTORY
Dr. Jack Weatherford has done it again. Six years after his ―Genghis Khan and the Making of the
Modern World‖ ignited a global reappraisal of the Mongolian empire and its positive contributions
he has published a masterful sequel, ―The Secret History of the Mongol Queens: How the Daughters
of Genghis Khan Rescued His Empire‖. This new book was the result of his belief that one volume
could not convey all he wanted to write about the 13th-century ruler who shaped the largest
empire in the history of the world and those who inherited it.
Honored in Mongolia as ―Book of the Year‖ for 2009 in its Mongolian language edition, Scientific
American has now listed Mongol Queens as a Recommended Book for 2010.
Dr. Weatherford holds the DeWitt Wallace Chair of Anthropology at Macalester College in Minnesota
and an honorary position at Chinggis Khaan University in Mongolia. In 2007 he received the Order of
the Polar Star, Mongolia‘s highest decoration. He was fascinated by the unique and central role
played by the Great Khan's female descendants at a time when political power was reserved for
men only and written histories were dominated by male authors writing about male leaders. As he
writes, ―Genghis Khan sired four self-indulgent sons who proved good at drinking, mediocre in
fighting, and poor at everything else; yet their names live on despite the damage they did to their
father's empire.‖ However, the ruler's daughters – it is unclear whether he had seven or eight -- had
―superior leadership abilities‖, so Chinggis Khaan willed ―strategically important parts of his
empire‖ to the women.
Read more…
Without the wisdom of the daughters, Dr. Weatherford convincingly argues, the Mongol Empire
would have crumbled much faster than it did, eventually dissolving during the middle of the 14th
century. Mongol pride did not disappear. The empire was restored during the late 15th century
with the emergence of another woman descended from Chinggis Khaan, known as Queen Manduhai
the Wise. She is celebrated as an important figure in Mongolian popular culture, and is the subject
of movies, operas and songs.
Source: NAMBC

NEW MONGOLIAN REGULATIONS
The following regulation was published in a recent weekly Government bulletin. Unless otherwise
decided by Parliament, it will take effect (10) days after publication.
Date Regulation
03.26.2010 Set the amount of health insurance premium for 2010
Please visit BCM‘s website, Legislative Working Group, for a summary of new Mongolian laws. BCM
members who wish complete versions of the laws and regulations in Mongolian language are
welcome to call or email the BCM office: 332345 or info@bcmongolia.org.
ANNOUNCEMENTS
MINETECH ON APRIL 9-10
On April 9-10, MINETECH-2010 will be organized in Misheel Expo. The Expo offers venues for mining
equipment and machinery suppliers and service providers with opportunities to promote their
products and services. Please contact Tegshjargal N./Tel: 99104648 and Ganbayar P./Tel: 99109059
for enquiries: tegshjargal@miningmongolia.mn and ganby@miningmongolia.mn.
____________________________________
“BSPOT" on B-TV
BTV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every
evening from Monday to Friday at 21:30, taking most of the stories from the BCM NewsWire.
____________________________________
“MM TODAY” on MNB-TV
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled for 21:15 tonight. Tune in to watch this program that reports stories from today‘s BCM
NewsWire.
SPONSORS

ECONOMIC INDICATORS
MSE WEEKLY REVIEW
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
February 28, 2010 *8.3% [source:NSOM]
*Year-over-year (y-o-y)

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]
CURRENCY RATES – April 1, 2010
Currency name Currency Rate
US dollars USD 1,365.47
Euro EUR 1,834.71
Japanese yen JPY 14.64
British pound GBP 2,062.54
Hong Kong dollar HKD 175.87
Chinese yuan CNY 200.05
Russian ruble RUB 46.33
South Korean won KRW 1.21
Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.

02.04.2010, NEWSWIRE, Issue 112

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02.04.2010, NEWSWIRE, Issue 112