May 3 2013

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 272 – May 3, 2013
NEWS HIGHLIGHTS:
Business
 Erdenes TT reaches accord with Chalco as shipments resume;
 Soil stripping begins at TT's West Tsankhi;
 Erdenes TT worker goes on hunger strike;
 Government to deliver refunds for purchased Erdenes TT shares;
 Banpu makes commitments for Mongolia's energy sector;
 Mongolia-China hub for iron ore exports from India to China;
 Mongolia Investment to buy control of mapper for USD 193 million;
 Foundation supports tire repair shop with microloan;
 Kincora 2012 year-end report;
 Xanadu quarterly activities report;
 Rio aims to cut almost half of jobs at London HQ.
Economy
 EPCRC Macroeconomic overview - March 2013;
 Siberian and Mongolian scientists develop smokeless fuel;
 Mongolia negotiates to diversify fuel supply;
 Summer weather brings foreign workers;
 Employment project targets elderly;
 MIBG optimistic that pols learned “sobering lesson”;
 Mongolian economic indicator shows negative trend in domestic earnings;
 World Bank's Mongolia Economic Update, April 2013;
 Smartphone revolution in Mongolia;
 Prioritizing education;
 The “London Eye” looking toward Mongolia;
 Mongolia's looming budget crisis;
 Why the world should save Mazaalai;
 Copper slides on weaker-than-estimated Chinese manufacturing;
 End of mining boom hits equipment makers.
Politics
 Latest political poll survey – Sant Maral’s Politbarometer, April 2013;
 Premier survives parliamentary dismissal vote;
 Gonchigdorj nominated for deputy speaker;
 Some license holders hope deposits will be named “strategic”;
 Parliament discusses LGBT human rights;
 Thailand, Mongolia enhance economic, investment cooperation;
 Community of Democracies’ Ulaanbaatar Declaration;
 First Mongolian nominated to U.N. racial discrimination monitoring group;
 Nigeria next after El Salvador for Community of Democracies presidential role;
 Mongolians to receive eased visa requirements for Hungary;
 Appellate court rules in favor of Culture ministry for Lenin museum location;
 UB businesses face closure;
 Enkhbayar seeks foreign medical treatment;

2.  Germany requests Khurts in court;
 Border officials stop illegal export of 208 kilograms of deer antlers;
 Mongolian democracy and its oligarchs;
 How Mongolia can help reinvent Japan;
 Momentous map.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Monthly macroeconomic overview – March 2013;
 Supermarket price comparison – April 2013;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Major Drilling
International SOS
Wagner Asia Automotive
Wagner Asia Equipment Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BUSINESS
ERDENES TT TAVAN REACHES ACCORD WITH CHALCO AS SHIPMENTS RESUME
Erdenes Tavan Tolgoi LLC, Mongolia's largest state-owned coal company, agreed to pay a higher
interest rate on the USD 186 million due to Aluminum Corp. of China Ltd. (Chalco) as part of an

3. accord to resume coal deliveries.
During a standoff between Erdenes TT and Chalco, the Mongolian side failed to repay USD 186
million. As a result, the interest on the loan amount has been increased, Erdenes TT said, without
specifying the rate.
Erdenes TT restarted coal shipments to Chalco on 22 April after winning a USD 3 a metric ton price
increase from the Chinese buyer, the Mongolian company said. Chalco will pay USD 56 a ton and
Erdenes TT will supply the Chinese company five million to six million tons this year, the company
said. Exports to Chalco stopped on 11 January due to a lack of funds required to pay for
transportation.
Source: Bloomberg
SOIL STRIPPING BEGINS AT TT'S WEST TSANKHI
Khishig Arvin Industrial LLC announced it would beginning stripping soil at the giant Tavan Tolgoi
coal mine's West Tsankhi block.
Khishig Arvin has 16 years of experience in the mining, road, construction, and energy sectors, and
has worked with notable miners such as SouthGobi Sands, Boroo Gold LLC, Oyu Tolgoi LLC, and
Zaamar. According to the company, they have over 250 pieces of machinery and equipment, and
work at the highest professional standards. The company was selected by state-owned Erdenes
Tavan Tolgoi from among three national companies that applied. According to Khishig Arvin
Industrial LLC, their extensive experience in the mining sector and international recognition were
factors in their selection.
―We believe that the government effort to support domestic companies by including them in
domestic projects will help increase employment, strengthen economic capacity. It will further
allow Mongolia to supervise, monitor, and operate large-scale projects independently, as well as
allow national companies to release initial public offerings and trade on global markets on an
international exchange rate,‖ said the company in a press release.
Source: UB Post
ERDENES TT WORKER GOES ON HUNGER STRIKE
A member of the Erdenes Tavan Tolgoi LLC staff has gone on a hunger strike for poor labor
conditions and extra hours without pay.
The worker, S. Erdene, claimed that Erdenes TT was operating in violation of labor laws and human
rights by forcing staff to work extended hours. He said that the company failed to carry out its
obligation to implement the labor law and ignored staff members' requests to follow a proper work
schedule and basic regulations.
Erdene has worked for the company as an operator since it was first established. He said the
company decided that he should have training because he was working against the system a few
days ago. He explained that such measures were attempts to fire him.
―This attempt means that they will send me to a course and then can fire me claiming I did not pass
the exam.‖
Erdene was involved in the establishment of a trade union meant to protect miners and other staff
working in the mining sector. Currently the trade union's membership is 60 percent of employees
from Erdenes TT. Although the other members did not join the hunger strike, they agreed with his
demand that Erdenes TT comply with labor laws and carry out proper procedures.
―Erdenes Tavan Tolgoi LLC has 260 employees, but now the number has been has increased to 420,‖
said the local director of Erdenes TT, Batkhuyag [first initial not presented in original source -ed],
who met with S. Erdene to discuss his demand. ―The number of personnel is high, but their work is
less.‖
Source: News.mn
GOVERNMENT TO DELIVER REFUNDS FOR PURCHASED ERDENES TT SHARES
The government plans to return the MNT 33.8 million to the 1,000 companies who purchased shares
of Erdenes Tavan Tolgoi LLC.

4. Last year the government distributed 20 percent of shares of state-owned Erdenes TT with the
condition that they could sell those shares to companies at face value, with the government acting
as the broker. Some 1.5 million peopled registered to sell their shares for a total of MNT 20 billion
passing through the Mongolian Securities Clearing House and Central Depository.
Companies have asked for their money back as the initial public offering for the company has been
delayed several times. The Tax Authority will be responsible for a one-time offer for companies to
receive refunds for their shares.
Source: Business-Mongolia.com
BANPU MAKES COMMITMENTS FOR MONGOLIA'S ENERGY SECTOR
Representatives of Thailand's Banpu Public Co. Ltd., the company who orchestrated the acquisition
of Hunnu Coal Ltd. for USD 477 million in 2011, signed a memorandum concerning the energy sector
at the Seventh Ministerial Conference of the Community of Democracies.
Ten of Banpu's management staff arrived in Mongolia for the event, where they pledged with the
Energy Ministry in the memorandum to supply homes in Mongolia with renewable energy and build a
coal-fired thermal energy plant at the Sainshand Industrial Complex.
Source: Undesnii Shuudan
MONGOLIA-CHINA HUB FOR IRON ORE EXPORTS FROM INDIA TO CHINA
India Globalization Capital Inc. announced a strategic plan to establish a shipping hub at the border
of Mongolia and China to provide iron ore to its customers in China and source raw materials for its
beneficiation plants.
The hub is positioned to deliver various grades of iron ore to its customers in China and has begun
moving its first test shipment as part of the company's production ramp up. Iron ore exports from
Mongolia were virtually nonexistent in 2008, and have experienced rapid growth since that time.
According to Mongolia Asset Management, for the year 2012 Mongolia exported approximately 5.75
million tons of iron ore representing a 61 percent increase over the previous year.
―The opening of this hub required about six months of planning, negotiations and preparation,‖ said
Ram Mukunda, chief executive of India Globalization Capital. ―We are currently moving a test
shipment of 300 tons from Mongolia to China. Once successfully delivered in the next week or so,
we expect to ramp up to between 8,000 and 12,000 tons a month.‖
Source: India Globalization Capital Inc.
MONGOLIA INVESTMENT TO BUY CONTROL OF MAPPER FOR USD 193 MILLION
Mongolia Investment Group Ltd., a water-services and mining company, said it will buy effective
control of a Chinese digital-mapping provider for HKD 1.5 billion (USD 193 million) more than a year
after first announcing the deal.
The company will fund the transaction with HKD 600 million in cash, raised through the private sale
of 2.4 billion new shares at 25 Hong Kong cents each. It will also issue HKD 900 million of zero-
coupon, five-year convertible notes with a conversion price of HKD 0.25 a share.
Mongolia Investment initially announced the purchase of Sinbo Investment Ltd. in December 2011. It
changed the announced structure at least once, according to earlier filings. Mongolia Investment's
stock, which had been suspended since 9 April, will resume trading in Hong Kong today.
Source: Bloomberg
FOUNDATION SUPPORTS TIRE REPAIR SHOP WITH MICROLOAN
The Prospero Foundation announced a microloan donation to Ariunzul, a small business owner in
Ulaanbaatar.
Ariunzul is married with three young children, living with her family in a traditional ger. She and
her husband have been running their own tire repair shop for the past 17 years and have
accumulated a good reputation. Ariunzul plans to use the money from the microloan donation to
purchase new equipment such as a pump, tools, wrenches and compressors to provide an improved
service for her current customers, with the hope of expanding her business.

5. Source: Prospero Foundation
KINCORA 2012 YEAR-END REPORT
Kincora Copper Ltd. filed its annual operations and financial results for the year ended 31
December 2012. The company's audited consolidated financial statements and management's
discussion and analysis are available at the company's website.
―The year 2012 was dominated by global economic contractions with the junior resource industry
impacted particularly hard,‖ said John Rickus, president and chief executive officer. ―Despite
significant progress delivering on our state exploration, development and acquisition strategy, a
series of adverse external and Mongolia specific uncertainties over this period, and emerging into
2013, have adversely affected our share price performance in particular and as well as that of most
Mongolia asset classes, which are trading at or near 52-week lows (or significantly longer).‖
Rickus said recent correspondence with the Mineral Resources Authority confirmed all licenses were
in good standing. However, he also added that uncertainty related to the company's lower priority
two Golden Grouse licenses had undoubtedly impacted its share prices and led to Kincora, whose
majority stakeholder is Origo Partners PLC, trading at a clear discount to its listed Mongolian copper
exploration peers.
Highlights for the year include the advancement large-scale exploration targets with over 15,000
meters of drilling in 2012 confirming progress at West Kasulu at Bronze Fox for bulk lower grade and
deeper higher-grade copper mineralization as well as the extension of target zones there.
As for management, Kincora added two senior executives and the completion of two regional
consolidation agreements. The company also executed two successful capital raises in the second
half of 2012.
Source: Kincora Copper Ltd
XANADU QUARTERLY ACTIVITIES REPORT
Xanadu Mines Ltd. released its quarterly report for the period ended 31 March 2013.
Xanadu saw limited fieldwork conducted this past quarter due to the winter conditions and heavy
late-spring snowfall. However, it used the time to review its project portfolio in detail and develop
its business development and exploration strategy for the year ahead.
A detail review of the company's operations and exploration strategy commenced in March and will
be an ongoing process. The initial objectives are to reduce administrative costs and to prioritize
projects based on their potential to create value for shareholders. This will be evidenced in a
reduction in quarterly operating costs and the relinquishment or reduction of some licenses.
In the coming months, Xanadu will more clearly articulate its strategy to focus on copper-gold
projects. It will review potential and existing projects dispassionately and is willing to exit a project
it believes another operator or partner may be in a better position to add value, such as the
company's decision to divest its thermal coal assets.
There have been significant changes to the board and senior management over the last six months.
Three new directors joined the board in late 2012 bringing valuable commercial, legal and
geological experience with them. Effective from 25 February 2013, George Lloyd took on the role of
chief executive officer.
Despite the encouraging foreign investment regulatory with the amending of the Strategic Entities
Foreign Investment Law, Xanadu notes broader macroeconomic conditions have affected the
company. There is clear evidence that the global mining industry has shifted its focus from
expansion by investment in new projects to productivity of its core assets and managing costs.
Source: Xanadu Mines Ltd.
RIO AIMS TO CUT ALMOST HALF OF JOBS AT LONDON HQ
The lead developer of the Oyu Tolgoi copper-gold project, Rio Tinto PLC, plans to almost halve the
size of its London head office, according to an internal memo, cutting more than 200 jobs as it tries
to slash more than USD 5 billion in costs by the end of year. The message comes shortly after hiring
Mongolian national Baatar Bold as the president of Rio Copper.

6. Rio Tinto has been reviewing high-cost office locations including London since last year, as it battles
falling commodity prices. The internal announcement said the company aimed to reduce the
number of London-based jobs to 262 from 479. It also wants to cut the number of Johannesburg
employees to 206 from 244, after reviews of its African operations meant it needed fewer
administrative posts in South Africa.
―As you are aware, one of our priorities for 2013 is to significantly reduce costs across the
business,‖ Rio Tinto's emailed memo to employees said. ―Given the increasing volatility of our
operating environment and challenging economic conditions, this is more necessary than ever.‖
Rio Tinto last year cut office staff in Australia, where much of the group is managed, targeting
Melbourne and closing its Sydney office. Rio said this month that its cost-saving push for 2013 was
on target thanks to job cuts and improved productivity.
Source: Reuters
ECONOMY
EPCRC MACROECONOMIC OVERVIEW - MARCH 2013
Economic growth at constant prices
Gross domestic product (GDP) reached MNT 13.9 trillion or USD 10 billion at current prices and MNT
5.4 trillion or USD 3.9 billion at prices of 2005 for 2012, which is up by 25.8 percent at current
prices and 12.3 percent at 2005 prices over 2011. Real Q4 quarterly GDP growth (at 2005 prices)
was 10.6 percent, nearly two times lower than the fourth quarter of 2011.
Inflation
Inflation fell to 9.8 percent for March, year-over-year nationwide. Inflation rose by 0.8 percent
month-on-month in March.
MNT/USD exchange rate
The monthly average exchange rate for the tugrug against the U.S. dollar was 1,404, showing a
slight decline in value for March by 0.8 percent month-on-month. Imports are expected to grow,
especially for the construction sector, hiking up demand for foreign currencies.
Foreign trade
The foreign trade deficit approximates USD 0.4 billion, with total turnover of foreign trade reaching
USD 2,014.2 billion, a 13.8 percent decrease year-on-year. A 7.8 percent fall in exports and 17.3
percent fall in imports brought about a deficit of USD 395.8 million.
Money supply, deposits, and loans
The currency issued in circulation is MNT 7.3 trillion. M2 increased by 19.4 percent year-on-year and
by 0.8 percent month-on-month. Monthly deposits were stable, increasing by 30 percent year-on-
year but falling 1.5 percent month-on-month. Deposits totaled MNT 4.9 trillion. Tugrug and Foreign
currency deposits grew by 24 percent and 55 percent, respectively. Non-performing loans were on a
downward trend, falling 3.6 percent year-on-year but grew by 0.9 percent month-on-month.
Meanwhile loans outstanding totaled MNT 7.384 billion, an increase of 28 percent year-on-year 3
percent month-on-month.
The annual interest rate (weighted average) increased by 1.7 percentage points for loans
denominated in tugrug and 1.8 percentage points for loans in foreign currency, totaling 19.6
percent and 14.2 percent, respectively.
---See complete EPCRC Macroeconomic overview-March 2013 in ECONOMIC INDICATORS section
of this BCM NewsWire issue.
Source: Economic Policy and Competitiveness Research Center
SIBERIAN AND MONGOLIAN SCIENTISTS DEVELOP SMOKELESS FUEL
Scientists of the Russian and Mongolian Academy of Sciences have developed a smokeless fuel based
on brown coal (lignite).
According to the chairman of the Siberian Branch of the Russian Academy of Sciences, Alexander
Aseeve, the technology provides for the removal of organic substances from coal and the thus

7. formed semi-coke turns into a fuel briquette. He noted that development is very much in demand
by the small boilers working on coal.
In the papers of the Siberian Branch of the Russian Academy of Science, it is said that the
technology has been developed by use of brown coal from the Baganuur and Tavan Tolgoi fields of
Mongolia.
Source: Russian and India Report
MONGOLIA NEGOTIATES TO DIVERSIFY FUEL SUPPLY
Mongolia participated in negotiations with Russian fuel importer Rosneft to add a clause to their
agreement so that Mongolia paid for fuel at market price.
Mongolia is entering into negotiations for better and new terms for fuel supply, said a statement
from Mongolia's Transparent Mining Program. It has entered negotiations with companies from
China, South Korea and Belarus. A final agreement is expected for China Oil and Mongolia as well as
NIK, Magnai Trade and Shunkhlai. Other fuel supply deals could come from South Korea's Hyundai, S
Oil and SK. Mongolia is left vulnerable to Rosneft's decisions as most of its fuel comes from the oil
giant.
The deal bartered with China Oil would likely depend on the price of crude oil originating from
Mongolia and exported to China.
Currently oil is purchased at USD 700 a ton compared with USD 820 in January. There are no current
indications that oil prices may rise again in the near term while Chinese oil export prices are
expected to remain stable for the medium term.
Fuel prices could fall by MNT 50 to MNT 60 per liter beginning next month with the new deals in
place. Mongolia has negotiated for European-standard type A-92 fuels, which is of superior quality
and currently imported to Mongolia.
Source: UB Post
SUMMER WEATHER BRINGS FOREIGN WORKERS
The warmer months are expected to bring a slew of foreign workers with the count already at
12,000 workers from 103 countries.
About 5,600 workers are Chinese, 4,000 of whom work in building construction and 80 in road
construction and storage logistics. Of the other large expat communities are 1,749 workers from
South Korea, 528 from Russia, 428 from the United States, 414 from Vietnam, and 355 from
Australia.
Source: Undesnii Shuudan
EMPLOYMENT PROJECT TARGETS ELDERLY
Labor Minister Ya. Sanjmyatav, has initiated a program that would provide assistance to the elderly
[original report does not specify if individuals would be retired -Ed] in finding employment.
A non-government organization called Tanii Zutgelinn Tuluu (For Your Effort), held its first meeting
for providing employment assistance to the elderly at the Mongolian Railway Cultural Palace.
Representatives of the elderly from every district arrived participated in the meeting, along with
220 elderly persons from the Ministry of Labor, Ministry of Human Development and Social Welfare,
the Mongolian Free Elders' Association, and the Elderly Experts Association of the Mongolian
National Chamber of Commerce and Industry.
The program aims to utilize the skills and experience of highly educated elderly persons to place
them in leadership and advisory roles. Program developers are also hoping the program will help
raise the standard of living for these individuals. The program divides the personnel into eight
advisory teams: teachers, doctors, lawyers, engineers, economists, media, agriculture, and
scientists. Those categories will be further divided to harness unique abilities and specialities of
these elderly workers.
Those who participate will have to meet several criteria. They must have worked in their
specialized field for no less than 30 years and are expected to hold academic titles, state prizes and
honors or some kind of societal recognition. They should also be rich in experience in acting in

8. administrative roles.
Preliminary estimates show some 6,000 elderly individuals are already read to begin work, with
program developers expecting the number of advisors to reach 1,500 nationwide working in each of
Mongolia's 21 provinces. Each of the seven or eight groups is expected to enrol 70 to 80 seniors.
These advisors are expected to participate with both domestic and foreign companies.
Source: UB Post
MIBG OPTIMISTIC THAT POLS LEARNED “SOBERING LESSON”
Mongolian Investment Banking Group gave a positive mid-term outlook for Mongolia, saying that the
past few months of investment decline would likely serve as an important lesson to policy makers of
the importance of foreign investment.
―MIBG believes that the current economic downturn will act as a sobering lesson to the Mongolian
policy makers and will eventfully lead to less restrictions and political risk for foreign investors in
Mongolia,‖ said the Source.
MIBG noted that a new Investment Law was under development by the Economic Development
Ministry as well as new attitudes toward foreign investment following some adverse effects from
the drop off in investment. According to Minister of Finance Chultem Ulaan, the budget deficit is
growing wider with government revenues only matching 58 percent of government expenditures.
The country is likely to fall short of its coal export assumption of 30 million tons for the 2013
budget. In the first three months of 2013, total coal export was just 3.45 million tons, with zero
contribution from Erdenes Tavan Tolgoi as the company had exports on suspension due to financial
difficulties.
Source: Mongolian Investment Banking Group
MONGOLIAN ECONOMIC INDICATOR SHOWS NEGATIVE TREND IN DOMESTIC EARNINGS
An economic indicator from the ministry of finance shows a negative trend for the Mongolian
economy.
Finance Minister Chultem Ulaan announced last week its composite leading indicator (CLI) has fallen
0.05 points to 98.78 at the end of March 2013. The CLI also sits 3.69 points below its 2011 peak.
The source said it had already observed that domestic entities in various sectors of the economy
were experiencing lower earnings, which could spur a drop in domestic investment activities and
eventually drive down asset and equity prices in the short term.
Source: Mongolia Investment Banking Group
WORLD BANK'S MONGOLIA ECONOMIC UPDATE, APRIL 2013
In 2012, Mongolia's economy continued to experience a high growth rate of 12.3 percent. This
growth rate was however lower than anticipated as Mongolia saw its coal exports drop significantly
due to China's economic slowdown.
Most noticeably, Mongolia had to finance a large fiscal deficit of 8.4 percent of GDP, a record in the
last 13 years. It is concerning that similar fiscal trends might continue in 2013 with the economy
growing at a double-digit rate but also accumulating another large fiscal deficit.
As Mongolia embarks on its largest infrastructure investments ever—which can be in part financed
through a successful sovereign Chinggis bonds issuance—greater attention has to be paid: (i) to
preparing those investments rigorously to ensure maximum socioeconomic return and avoid
potential wastage of public resources and (ii) to reflecting their financing transparently in the
national budget.
The World Bank revised its baseline growth forecast for 2013 to 13 percent, still one of the highest
in the global economy; however significant uncertainty over key growth factors make the economic
outlook highly volatile.
Fiscal balance significantly deteriorated in 2012 with the fiscal deficit climbing to 8.4 percent of
gross domestic product (GDP), a thirteen-year record level. In 2013, the fiscal outlook is likely to
follow a similar path. The fragile fiscal outlook is yet to include two off-budget financing
operations—i.e. the Price Stabilization Program and the lending from the Development Bank of

9. Mongolia to socially motivated projects—and the use of Chinggis bond proceeds. If they were to be
accounted for in the budget, it could bring the total fiscal deficit to around 13 percent. The trade
balance is likely to remain weak in early 2013, but is expected to improve the latter half of the
year due to strengthened mineral exports.
The challenges ahead will be the risk of continuous expansionary and pro-cyclical fiscal policy. The
rapid increase in capital expenditure—a 35-fold increase over the past decade—also risks
undermining the quality of new projects as the public investment management system and the
construction sector's capability to absorb extensive new projects cannot be scaled up quickly.
Source: World Bank
SMARTPHONE REVOLUTION IN MONGOLIA
Smartphones and tablets are selling well, with industry estimates saying smartphones have reached
10 percent market share already. That figure is expected to grow, driven by the introduction of
cheaper devices and the launch of new applications.
The majority of people are not familiar with the usage of the devices yet. Many of them still use
voice and SMS only. But, with the introduction of more applications in Mongolian and local payment
system, the custom behavior is expected to change significantly in two to three years.
Speaking of eCommerce and mCommerce in Mongolia, the size is still very small compared with
developed countries.
Source: BNE
PRIORITIZING EDUCATION
Attendance and school construction are on the rise, and the Ministry of Education continues to
harness foreign expertise. However, critics say the government needs to do more to ensure
improved and inclusive schooling at all levels, particularly given the promise of growing social
development as a result of increased resource-related investment.
Figures released by the National Statistical Office in February 2013 showed encouraging increases in
the total number of students and graduates, as well as schools operating in the country. The total
number of students increased 0.8 percent from 890,000 to 897,000 for the 2012-2013 academic
year. Meanwhile, the number of graduates from secondary, technical and vocational schools, and
universities rose to 167,000 from 133,000.
Additionally, 70 new schools—four secondary schools and 66 kindergartens—began operations in the
2012-2013 school year. A further positive sign for the sector is the joint strategy launched in 2011
by the government and the United Kingdom's Cambridge University, which leaders say will improve
the quality and effectiveness of the education system. Teachers from Cambridge have been working
with Mongolian counterparts on new textbooks in math, science, biology, chemistry, physics, and
English for 10 grades, as well as developing reforms in national education policy. Under the plan, a
small network of elite schools will be built in Ulaanbaatar and regional centers.
Teachers' salaries are another issue needing address. While the government pledged in 2010 to raise
these to MNT 410,000 (USD 292) per month, in November 2011 the average teaching salary was
reportedly still MNT 300,000 (USD 214), which resulted in over 10,000 public school teachers from
108 schools going on strike in December last year. The Cabinet opted to grant an additional MNT 30
million compared with the initially proposed MNT 150 billion. Critics also say vocational schools to
teach unemployed Mongolian job-specific skills that can integrate them faster into the economy are
needed.
Both the recently introduced and upcoming changes to education will indeed generate a number of
benefits, including a higher standard of education and more highly skilled nationals. However, the
government must strive to continue its educational development and compensate teachers
financially if it hopes to become a global competitor.
Source: Oxford Business Group
THE “LONDON EYE” LOOKING TOWARD MONGOLIA
When deciding which country to invest in, those who are from investment banks in London might be

10. looking from the giant ferris wheel located at the north end of Lambeth Bridge that crosses the
River Thames. While that tremendous ride, nicknamed the London eye, continued to turn from 16
to 18 April, not far away was the Mongolia Investment Summit where political and economic
realities of Mongolia were having their own go-around.
Mongolia has ten mineral deposits potentially worth USD 1.3 trillion at current prices. It has also
created geological maps for a quarter of its territory and two large neighbors—Russia and China—
eager to gobble up as much as Mongolia can produce.
Mongolia is a democratic country where the central government supports businesses and is planning
to establish a sovereign wealth fund. It has the legal environment to protect assets and imposes
relatively soft tax conditions, despite the occasional misstep.
Randolph Koppa, president of Trade and Development Bank of Mongolia LLC, noted that USD 20
billion would likely be spent on the mining sector, USD 20 billion in trade and industry, USD 12
billion in infrastructure, USD 8 billion in urban development, USD 2 billion in agriculture, USD 2
billion in environmental protection, USD 2 billion in social development and USD 2 billion in finance.
He noted that USD 14 billion would come from foreign investment, 18 billion from domestic sources,
USD 16 billion from capital markets, 12 billion from international finance institutions, USD 6 billion
from the government, and the remaining USD 2 billion from donor countries.
But there are risks to contend with. Mongolia faces budgetary and geopolitical challenges, said Neil
Ashdown, an Asia-Pacific specialist at HIS, a company that produces political risk reports. He said
Mongolian politics could quickly spiral into instability because of perceived instability in elections,
changes in government and difficulty overcoming economic challenges.
But Mongolia has another year to gain experience as it tries to improve the lives of its people.
Dambadarjaa ―De Facto‖ Jargalsaikhan is an economist specialized in banking and stock market. He
is a management consultant in banking and financial organizations.
Source: UB Post
MONGOLIA'S LOOMING BUDGET CRISIS
Nobody said that forecasting a national budget is easy. As the economy waxes and wanes the earlier
best guess estimate can look less achievable as next year's budget turns into this year's actual. No
doubt a fact Australia's treasurer, Wayne Swan, would attest given the surprise shortfall in
Australia's tax collections from its controversial Minerals Resource Rent Tax (MRRT).
The bullish Australian treasury forecast for receipts of AUD 2 billion (USD 2.047 billion) for the
MRRT are trivial when you consider the total collections for Australia are around AUD 360 billion.
The Australian economy should be able to cope with any nasty surprise given its solid reserve and
strong credit rating.
But the frontier economy of Mongolia is a fraction of the size of Australia's and plagued with
political stability issues. Mongolia's government collects around AUD 3.5 billion (USD 3.6 billion) to
AUD 4 billion (USD 4.1 billion) in taxes, so on that basis it is no more than 1 percent the size of
Australia's government enterprise, and because of its emerging status it lacks any of the cushioning
that exists in more developed economies.
The ambitious 31 percent year-on-year growth for tax collection in the 2013 Mongolian budget looks
highly unlikely. The budget crisis that looms for Mongolia is an unfunded deficit that will further
destabilize its delicate economy.
Recently Mongolia introduced the Financial Stability Law (FSL), and the 2013 Budget is the first
government budget to operate under this new legislation. FSL commits the government to prudent
financial management by setting the budget deficit to a maximum level of 2 percent of GDP. It's
very likely that this ceiling will be broken and already the World Bank is forecasting a deficit of
more than 6 percent of GDP.
While many of Mongolia's bullish economists have focused their contemplation and rhetoric on how
they should brace the economy to one day avoid the future effects of ―Dutch disease,‖ it seems
that too few of them have been focused on the more pragmatic aspects of realistic budget
forecasting and prudent government financial management.
Author Nigel Finch is an associate professor at the University of Sydney Business School and a

11. member of the Business Council of Mongolia.
Source: Mongolian Economy
WHY THE WORLD SHOULD SAVE MAZAALAI
The Mongolian Gobi Bear is one of the world's most endangered animal species. In late 2012
Mongolia's Ministry of Environment and Green Development designated 2013 as ―The Year of
Protecting the Gobi Bear,‖ a critically endangered native species whose existent population was
most recently numbered at 22. Mongolia prohibited Gobi bear hunting as far back as 1953, but more
recently environmental degradation of its habitat has been cited as a major reason for its decline.
The Gobi nurtures a few rare animals—such as the wild Bactrian camel, the Przewalski Horse, the
Saiga antelope and the Snow leopard—whose populations range from the hundreds to only a few
thousand. But judged by the risk of extinction, none of them match Mazaalai, the Gobi bear.
The Gobi bear is outnumbered by the panda, who receives much more global attention, by some 60
to 70 times. The reason the animal is understudied is partly due to a lack of consensus of whether it
is a species or subspecies. So far, analysis of its hair DNA suggests that Mazaalai is related to the
Himalayan brown bear. Also the concern voiced by 2.8 million Mongolians about their rare bear,
unlike the concerns of the two billion about the panda, simply dissipates in a global chorus of seven
billion.
It took nature thousands of years of evolution to produce this wonder of the Gobi. Even if Gobi
bears are proven to be a subspecies of brown bear, none of the latter are fit to live in the Gobi. No
bear, regardless of its relation to Mazaalai, can naturally adapt to the desert. This means it should
be protected regardless of whether it is a subspecies or not.
Concerted action now can reverse Mazaalai's ―final countdown‖ into a countdown to end the
ignorance about it. Such a reversal would be a tribute to the thousands of (sub)species that went
extinct because of humankind. Saving Mazaalai will mean that we are not helpless regretting the
mistakes of our past or indifferently shrugging off the issue, but that we are learning from them and
aspiring to become better, less destructive beings.
Source: Asia Society
COPPER SLIDES ON WEAKER-THAN-ESTIMATED CHINESE MANUFACTURING
Copper fell for a second day in London on concern demand will take time to revive after an official
manufacturing gauge was weaker than projected in China, the world's biggest consumer of the
metal.
A purchasing managers' index (PMI) was at 50.6 in April, China's statistics bureau and logistics
federation said on 1 May, below the 50.7 median estimate in a Bloomberg News survey of
economists. Markets in the country will reopen tomorrow after a three-day break. Copper rose in
London trading last week after five weeks of declines, the longest streak since November.
―Chinese end-users were taking advantage of low prices to restock,‖ Nic Brown, head of
commodities research Natixis SA in London, said by e-mail. ―With China out for three days, the
market is losing some of that positive impetus.‖
Copper for delivery in three months lost 1.3 percent to USD 6,964 a metric ton by 9:22 a.m. on the
London Metal Exchange after slumping for a third month in April. Copper for delivery in July
dropped 1.1 percent to USD 3.151 a pound on the Comex in New York, where trading volumes were
48 percent lower than the average in the past 100 days for the time of day.
Source: Bloomberg
END OF MINING BOOM HITS EQUIPMENT MAKERS
Mining executives raised the alarm late last year about the end of the boom in the sector—and now
earnings data are confirming that the decade-long expansion in the mining services industry is all
but over.
The pullback in mining investment is severely reducing demand for equipment including trucks,
shovels and underground machinery, putting pressure on companies such as Caterpillar, Joy Global,
Atlas Copco and Sandvik. These companies benefited over the last ten years from orders from

12. clients such as BHP Billiton Ltd., Rio Tinto PLC and Vale SA.
―Mining customers continue to be cautious in investing in capital equipment,‖ said Atlas Copco, the
Stockholm-listed company that together with domestic rival Sandvik account for about half of the
market for underground mining equipment.
The drop in mining capex bodes ill particularly for Joy Global, one of the biggest manufacturers of
big mining shovels, and Caterpillar, which in 2010 bet big on the sector by buying shovel
manufacture Bucyrus for nearly USD 9 billion. Caterpillar, the world's largest manufacturer of
earthmoving equipment and who receives distribution in Mongolia through Wagner Asia Equipment
LLC, has reported a 45 percent drop in profits in the first quarter and lowered its 2013 sales outlook
to USD 57 billion to USD 61 billion, down from USD 60 billion to USD 68 billion due to weaker mining
orders.
The comments from Atlas Copco and Caterpillar are the harbingers for the sector. Earnings of
mining equipment and services providers will be weak for the rest of the year, into 2014 and
potentially in 2015. Executives believe orders will fall between 20 and 50 percent this year alone. If
anything, the chatter in the mining industry suggests that the risks for the equipment providers are
somewhat skewed to the downside. A new breed of chief executives is taking over the big four
London-listed mining groups that dominate the industry—Rio Tinto, BHP Billiton, Anglo America PLC,
and Xstrata PLC—and they are canceling projects that previous chiefs considered untouchable. If
more projects are canceled, demand for trucks, shovels and other equipment will continue to fall.
Source: Financial Times
POLITICS
LATEST POLITICAL POLL SURVEY - SANT MARAL'S POLITBAROMETER, APRIL 2013
Please click here to view the latest Political Poll Survey done by the Sant Maral Foundation.
Source: Sant Maral Foundation
PREMIER SURVIVES PARLIAMENTARY DISMISSAL VOTE
Prime Minister Norov Altankhuyag has survived a parliamentary vote to dismiss him. Among the 69
lawmakers that participated in the voting, 23 supported the dismissal while 46 opposed.
Altankhuyag gained support mainly from his ruling Democratic Party, which has 33 seats in the 76-
seat parliament. The prime minister also received support from 11 lawmakers of the Mongolian
People's Revolutionary Party (MPRP).
On 25 April, 25 lawmakers of the opposition Mongolian People's Party (MPP) demanded the dismissal
of Altankhuyag, claiming that he had violated the country's constitution. In a letter submitted to
Speaker Zandaakhuu Enkhbold, the lawmakers said that since the establishment of the new
government eight months ago, the country's economy had deteriorated, inflation increased and
foreign investment fallen. They also claimed cronyism was rampant among government officials.
Source: Xinhuanet
GONCHIGDORJ NOMINATED FOR DEPUTY SPEAKER
The Democratic Party (DP) caucus has nominated R. Gonchigdorj as the new deputy speaker of
Parliament.
If confirmed by Parliament, Gonchigdorj would replace Sangajav Bayartsogt, who resigned after it
became public that he held a Swiss bank account as part of a leak by the International Consortium
of Investigative Journalists (ICIJ). The head of the caucus, D. Erdenebat, told reporters that a
majority of caucus members agreed to the nomination of Gonchigdorj.
A poll shows that most DP members supported Gonchigdorj's nomination.
Source: News.mn
SOME LICENSE HOLDERS HOPE DEPOSITS WILL BE NAMED “STRATEGIC”
Some license owners of deposits are petitioning the government that their deposits be included as

13. strategically important deposits, as listed in the Minerals Law.
The Mineral Resource Authority is studying some 30 deposits for inclusion on the list, which
currently includes 15 deposits. The issue is currently being discussed within the ministry, with some
deposit owners petitioning that their deposits receive inclusion. The government has issued a
decree to review the government's shares in strategically important deposits with 30 new deposits
under consideration.
Source: Undesnii Shuudan
PARLIAMENT DISCUSSES LGBT HUMAN RIGHTS
The rights of lesbian, gay, bisexual, and trans-gendered (LGBT) Mongolians were discussed in
Parliament for the first time in the history of Mongolia on 24 April.
The Standing Committee of Legal Affairs discussed a report submitted by the National Human Rights
Commission of Mongolia (NHRCM) about several groups of people who lack human rights in the
country, including LGBT people. A couple of MPs giggled when the chair of the committee spelled
out what LGBT stands for and one MP, O. Baasankhuu, said the report from the Mongolian LGBT
Center was just full of people who wanted society's pity.
―This is the first time that the Mongolian Parliament is discussing the LGBT rights issues and in this
sense it is a historic moment for the Mongolian LGBT community,‖ Otgonbaatar Tsedendemberel,
executive director of the Mongolia LGBT Center, said. ―However, this also showed that there is no
common understanding and acceptance of the LGBT community of Mongolia at the parliament level,
despite it claims to have professed democratic values and human rights principles.‖
MPs from the socially liberal Democratic Party, of which there are 12 on the committee, asked how
many LGBT people there are in Mongolia and how many have ―registered‖ at the LGBT Center. The
committee decided to hold another session on the issue next week.
It is a year of firsts for LGBT rights in Mongolia this year. The Mongolia LGBT Center is planning the
first-ever Mongolia Pride for September.
Source: Gay Star News
THAILAND, MONGOLIA ENHANCE ECONOMIC, INVESTMENT COOPERATION
Thailand and Mongolia signed three pacts on bilateral cooperation, leading to future investment,
trade, tourism and development in various fields between the two countries.
Thai Prime Minister Yingluck Shinawatra said both countries are keen to encourage their public and
private sectors to more actively accelerate trade and investment in mining, tourism, agriculture,
livestock, energy and public health. Thailand is ready to sign an agreement for the promotion and
protection of investment as a mechanism to boost trade and investment of the two countries, she
said.
The value of Thai-Mongolia trade was only USD 13.69 million last year and it could double in the
next three years, she said. The Thai prime minister called for the establishment of a joint trade
committee to facilitate cooperation. Yingluck said the Thai government would support private
sector investment in Mongolia, particularly in tourism, hotel business, restaurant and camping
facilities. Thailand can manufacture light pickup trucks and agricultural machinery for Mongolia,
she added.
The leaders of the two countries presided over the signing of an agreement on cooperation in
science and technology and memorandums of understanding: the first on the establishment of a
consultative body on bilateral cooperation and the second on joint economic trade and investment
development between Mongolia's Chamber of Commerce and Industry and three Thai private sector
organizations.
Source: Pattayamail.com
COMMUNITY OF DEMOCRACIES‟ ULAANBAATAR DECLARATION
Delegates produced the Ulaanbaatar Declaration of the Community of Democracies‘ Attainment and
Global challenges at the seventh ministerial meeting of the Community of Democracies on 29 April.
The declaration reaffirmed past commitments to democracy and respect for human rights. It

14. recognized rule of law and human rights are strengthened when stakeholders cooperate to
eliminate discrimination as well as stresses the importance of ensuring transparent, responsive,
effective, and accountable democratic institutions.
It welcomed the concrete and practical results of the five pillars of the Community of
democracies—parliamentary, civil society, women, youth and, corporate—which addressed the
challenges and opportunities in promoting and consolidating democratic reforms. Delegates also
stated their resolve to further increase and strengthen the activities of the Community of
Democracies in support of greater democratic governance in its member countries as well as in
promoting and protecting democratic values in countries where democracy faces challenges.
For this end the Community supports the activities of the five for a: promotes human rights,
fundamental freedoms and democratic governance; supports countries transitioning toward
democracy; supports the enabling of society; protects freedom of expression; and improve the
transparency and fairness of democratic elections.
Source: Community of Democracies – Mongolia
FIRST MONGOLIAN NOMINATED TO U.N. RACIAL DISCRIMINATION MONITORING GROUP
State Secretary of the Ministry of Justice of Mongolia, Bayartsetseg Jigmiddash, has become the
first Mongolian to be nominated for the United Nations Committee on the Elimination of Racial
Discrimination (CERD).
The CERD is composed of 18 independent experts who have high moral character and recognized
competence in the field of human rights. The terms of the nine members of the committee expire
on 19 January 2014. On 3 June the 25th Meeting of State Parties, which will bring together
representatives of 175 member countries, will take place in New York to elect nine new committee
members to replace the outgoing members. The CERD members will be elected through a secret
ballot for a term of four years.
Most current committee members are lawyers, scientists, researchers, professors, diplomats and
members of civil society who have contributed to human rights activities. J. Bayartsetseg was
formerly the legal policy advisor to the president of Mongolia, in which she spearheaded the
country's first comprehensive judicial reform, while guaranteeing political, economic, and legal
security for the judiciary.
Source: UB Post
NIGERIA NEXT AFTER EL SALVADOR FOR COMMUNITY OF DEMOCRACIES PRESIDENTIAL ROLE
Nigeria is set to take on the role of president of the Community of Democracies after El Salvador for
the 2015-2017 period.
Nigerian Vice President Namadi Sambo arrived in Ulaanbaatar this week for the seventh ministerial
conference of the Community of Democracies. Nigeria is currently a member of the governing
council, which elected Nigeria to succeed Mongolia and then El Salvador. Other member states are
Canada, Cape Verde, Chile, Costa Rica, El Salvador, Finland, Hungary, India, Italy, and Japan.
Source: Channels
MONGOLIANS TO RECEIVE EASED VISA REQUIREMENTS FOR HUNGARY
Foreign Affairs minister L. Bold last weekend announced eased visa conditions for Mongolians
traveling to Hungary.
The deal was made during a meeting with Bold and Hungarian minister of state and foreign affairs
Zsolt Nemeth at the Community of Democracies and will take effect next May. Mongolians may
apply for visas at the Embassy of the Czech Republic in Ulaanbaatar.
Nemeth expressed interest in bolstering Hungary's diplomatic relations with Mongolia. The
Hungarian minister also congratulated Mongolia for its successful term as president of the
Community of Democracies.
Source: UB Post

15. APPELLATE COURT RULES IN FAVOR OF CULTURE MINISTRY FOR LENIN MUSEUM LOCATION
A city appeals court rejected a claim by the Mongolian People's Party (MPP) that it held ownership
of land the Ministry of Culture, Sport, and Tourism plans to use for a new museum.
The Chingeltei District court made the final ruling after a city court ruled on 10 April that the
decision needed a court more familiar with the location. The site is where the government plans to
construct its Lenin Museum, which would hold the Tyrannosaurus bataar skeleton Mongolia
reclaimed from the United States.
Source: Undesnii Shuudan
UB BUSINESSES FACE CLOSURE
Ulaanbaatar's chief of its Maintenance Authority has sent notices to companies that they may be
facing closure for failing to meet a 2012 city decree.
Companies had until 30 April to meet upgrade requirements introduce by the City of Ulaanbaatar's
Representative Council. Requirements were to have upgrades made within a 50-meter radius of
their establishment, including planting greenery, maintaining quality of appearance, and making
necessary renovations.
Source: UB Post
ENKHBAYAR SEEKS FOREIGN MEDICAL TREATMENT
Incarcerated former President Nambar Enkhbayar has requested an urgent release from his prison
sentence so he may seek medical treatment abroad.
According to Enkhbayar's attorney B. Oyunbildeg, the former president's health conditions have
deteriorated enough to weaken his metabolism so that he could not eat.
Enkhbayar, who still leads the Mongolian People's Revolutionary Party from prison, was transferred
to an intensive care unit due to his poor health conditions. His doctors have advised that he receive
treatment from outside the country.
Source: Zuunii Medee
GERMANY REQUESTS KHURTS IN COURT
Germany has sent an official extradition request for B. Khurts, the former head of the National
Security Office.
On 11 April the German website Moz.de posted an announcement that the German Federal Attorney
Office for the arrest of Khurts. The announcement follows the failure of K. Bat, a former officer of
the Mongolia's intelligence agency, to appear in court for allegations of kidnapping and illegally
transporting a person across the border. Germany claims that Bat has lived in Mongolia since 2011.
Khurts is wanted in Germany for his involvement in the death of D. Enkhbat, who was a key suspect
in the 2000 murder of politician Sanjaasuren Zorigt. Enkhbat escaped Mongolia and lived in France
beginning in 2003 under an assumed named while Khurts worked as an attache at the Mongolian
embassy in Budapest. Khurts established contact with Enkhbat and met him in France where he
allegedly beat him and brought him to the Mongolian embassy in Brussels. From there they went
together to Berlin and finally to Mongolia while Enkhbat was allegedly unconscious and was
traveling with a false passport.
Back in Mongolia he was again sentenced to imprisonment for revealing state secrets. In 2006,
because of health conditions, he was released from prison and five days later passed away.
Enkhbat's family has since appealed to German courts to have Khurts tried for his death. The next
court hearing was scheduled for Thursday 2 May.
Source: Undesnii Shuudan
BORDER OFFICIALS STOP ILLEGAL EXPORT OF 208 KILOGRAMS OF DEER ANTLERS
Border troops discovered 208 kilograms of deer antlers in a car heading to China last week on
Wednesday.
The car was a black jeep with license plate number DGO 27-82, and most of the antlers were found
to be recently acquired. According to one officer, there were enough antlers to come from at least

16. 50 deer.
The case has been transferred to the courts as the materials are prohibited for export.
Source: Unuudur
MONGOLIAN DEMOCRACY AND ITS OLIGARCHS
For Mongolia, holding the chairmanship and hosting the Ministerial Conference of the Community of
Democracies are confirmation of its achievements in democratic development.
The establishment of democracy in Mongolia appears unlikely in hindsight and in comparison with
other cases. Consider the fates of other states that embarked on reform around the same time. Yes,
eastern Europe has firmly embraced democracy, though there have been significant stumbles along
the way (war in the former Yugoslavia and the Caucasus, various extremist parties, Belarus, etc.
Elsewhere in Asia? Democracy was beaten down violently in China in 1989. Most Soviet republics in
central Asia and the Caucasus have been governed by authoritarian leaders.
As president Tsakhia Elbegdorj runs for re-election in the upcoming June election this year, a fellow
Democratic Party (DP) politician, Norov Altankhuyag, has been serving as prime minister since last
year's parliamentary election. The DP also has the chairmanship of parliament, held by Zandaakhuu
Enkhbold, and thus controls the legislative calendar. Despite the seemingly overwhelming power of
the DP, there are cracks in its rule, with a shaky coalition with the Justice Coalition and Civil Will-
Green Party and recent resignation of Sangajav Bayartsogt after it was revealed he held an offshore
company and a Swiss bank account.
Some observers, especially in Mongolia, have expressed fears that the country is increasingly led by
―oligarchs.‖ But Mongolia's business leaders are not Russian-style oligarchs, in part because they
represent conglomerates that, in many cases, have become legitimate diversified business groups.
Mongolian democracy was lucky in that the country's resource wealth was not fully recognized until
nearly 20 years after the democratic revolution and an initial wave of privatization in the chaotic
1990s. The main concern about the role of businessmen in parliament and the cabinet is, of course,
that their private interest may trump their obligation to act in the public interest as legislators.
This has motivated the beefed-up anti-corruption and conflict of interest legislation and
enforcement.
Like other democracies, Mongolia continues to live with institutional short comings, less-than-stellar
politicians and occasional scandals. Given the surprising emergence and durability of democracy in
Mongolia, it is entirely appropriate to celebrate this achievement by hosting an international
democracy caucus in Ulaanbaatar.
Source: FINANCIAL TIMES
HOW MONGOLIA CAN HELP REINVENT JAPAN
The recent visit by Japanese Prime Minister Shinzo Abe to Mongolia last month had a focus, clearly
articulated, with the Asahi Shimbun saying ―Abe chose Mongolia over other potential nations to visit
such as Malaysia and Micronesia, although diplomats were concerned that visiting a nation
neighboring China would be 'too provocative.'‖
Abe said on his return to Tokyo that Japan ―attaches importance to relations with countries which
share the same values such as the rule of law and basic human rights.‖ Abe and Elbegdorj also
agreed to launch a trilateral framework consisting of Japan, Mongolia, and the United States for
policy discussions. Japanese media have been unanimous in seeing the visit as a move by Abe
intended to check the growing influence of China in the region. Indeed, the Japan Times said,
―China is nervously watching the deepening of ties between Japan and Mongolia.‖
Politics always plays a part in international bilateral relations, but this visit was certainly more
about Mongolia as ―a valued energy source‖ than just ―a strategic neighbor.‖
―We want to bolster ties with Mongolia with the objective of creating a good makeup of various
energy sources,‖ Abe said. ―Mongolia is an energy giant, and both countries can create a win-win
relationship, with Japan's technological prowess.‖
Japan has become a technological capital of the world, but now they do not aim to be the world's
best innovators. They see that as an uncertain game, in which the Chinese now excel, while the

17. Americans continue to have the best universities and research outfits. Instead of trying to beat
everyone else and to make Japanese technology the world's best, the Japanese have decided to
invite the world's best innovators to come and settle down in Japan. They thus hope to make Japan
the world's technology hub.
There is space for eminence in today's world, but this scope for pre-eminence is shrinking. If Japan
wants to reinvent itself and get out of a deflation-ridden and unimaginative economic rut, it needs
uninterrupted energy, and this is why Abe came to Mongolia.
Source: Mongolian Mining Journal (Tirthankar Mukherjee)
MOMENTOUS MAP
Researchers have discovered that a document long thought to be a landscape painting from the
Qing Dynasty is one of China's earliest world maps that outlines the Mongol empire from the Ming
Dynasty.
Matteo Ricci, the Italian missionary who arguably published the first Chinese-language world map
during his long stay in China, was believed to be the source of Chinese people's knowledge of world
geography. But now a newly appraised Ming Dynasty (1368-1644) world map proves that the Chinese
exploration of world geography had started long before his arrival in 1583.
The Mongolia Mountain and Water Map, a silk hand scroll that measures 30.12 meters long and 0.59
meters in width, marked 211 places from Ming Dynasty's frontier Jiayuguan Pass westward to Mecca
of today's Saudi Arabia, named Tiangang on the map. The ―Mongolia‖ on the map refers to the
Mongol Empire that fractured into four khanates.
According to Peking University's archeology professor Lin Meicun, the map was collected by the
Kyoto-based Museum of Fuji Yurinkan in the 1930s. But for a long time, it was treated as purely a
Qing Dynasty (1644-1911) landscape painting and its real value was not known to the Japanese
academic circle. It was first identified as a Ming Dynasty map by historian Fu Xi'nian in 2002 when
the map came back to Beijing after various efforts. After studying the construction period of the
buildings on the map, Lin concluded the map was painted between 1524 and 1539.
Besides its geographical value, Lin said the map possesses great artistic value. There is evidence of
influence from the painting style of the Wu school, a party of Suzhou and Wuxi-based literati
painters who were particularly fond of the mountainous landscapes. The map will tour China and
then be put under the hammer during Poly Auction's spring sales. The map's reserve price is CNY 80
million (USD 12.8 million).
Source: China Daily
ANNOUNCEMENTS
CONSTRUCT MONGOLIA-2013, 13-14 JUNE, ULAANBAATAR
The Construct Mongolia-2013 International Construction development conference will be held in the
Meeting and Exhibition Hall at the Chinggis Khaan Hotel from 13 to 14 June 2013. Members of BCM,
an official supporting organization, will receive a 10 percent discount when registering.
Construct Mongolia-2013 aims to attract technical and financial investments into the construction
and building sector of Mongolia. That includes both material and technical industries to introduce
the most advanced—environmentally and technically—practices that the country could embrace and
foster equally beneficial cooperation ties that would ultimately strengthen Mongolia‘s
competitiveness in the regional economy.
For more information or to register call +976-70116009, 99081050 or mail
info@constructmongolia.com. Visit the website at ConstructMongolia.com.
___________________________________________
MINING FOR NON-MINERS COURSE, 13-14 MAY, ULAANBAATAR
The next Mining for Non-Miners course will be held on 13-14 May. The aim of this course is to
provide those from a non-mining background with a comprehensive introductory understanding of

18. the mining industry. RPM is offering this two-day course for USD 1,000 for BCM members and USD1,
200 for non-members.
RungePincockMinarco (RPM) is a world class mining consulting, software and training company with
an established office in Ulaanbaatar. RPM has been successfully conducting Mining for Non-Miners
Training courses in Mongolia since 2011. The course will be delivered in Mongolian language. Please
click here to see the agenda.
The course duration is two days, with the first day focused on ―Coal Mining‖ and the second day on
―Metal Mining‖.
The number of participants is limited. Please send your expression of interest via return email if
you are interested in attending this course to me at saruul@bcmongolia.org, 317027.
___________________________________________
2nd MONGOLIA TRADE & COMMODITY FINANCE CONFERENCE, 14 MAY, ULAANBAATAR
Exporta's second Mongolia Trade & Commodity Finance Conference will be held at the Chinggis Khan
Hotel in Ulaanbaatar on 14 May. The Business Council of Mongolia (BCM) is acting as an institutional
partner for the event and has negotiated a 15 percent discount for its members to attend.
The Mongolia Trade & Commodity Finance Conference is the only specifically organized event for
the Mongolian trade and commodity finance community. It provides an unrivaled platform for
discussion and networking for leading local businesses and institutions, as well as those
international practitioners looking to tap into the huge potential of this rapidly developing market.
Speakers include Chuluunbat Orchirbat, vice minister of the Ministry of Economic Development,
Battsengel Gotov, chief executive of Mongolian Mining Corp., and Jim Dwyer, executive director of
BCM.
To receive the discount quote BCM15 when booking. Click here for more information and booking.
___________________________________________
COAL PROCESSING & MINING TECHNOLOGY EXPO, 4-5 JUNE, ULAANBAATAR
The Coal Processing & Mining Technology Expo will be held in Ulaanbaatar from 4 to 5 June 2013.
The expo is co-located with the Transportation & Logistics Expo, and because of this co-location you
will be able to meet with a more diverse and broader group of attendees. With many international
as well as local Mongolian companies already signed up to exhibit, you will be a part of what is
becoming the premier event for the mining and transportation industries serving Mongolia.
BCM members will receive a special 10 percent discount. To register and receive your discount
email Saruul at saruul@bcmongolia.org. For more information about the exhibition, contact Glenn
Scott atgscott@uexpos.com or visit the website coalexpomongolia.com.
___________________________________________
COALTRANS MONGOLIA, 19-20 JUNE, ULAANBAATAR
The Coaltrans Mongolia conference will be held at the Blue Sky Tower from 19 to 20 June. BCM
members will receive a 15% discount to attend the event, please use the discount code BCM.
Coaltrans Mongolia will explore the development of coal projects in the country and offer an insight
into what level of influence Mongolia will have over future international coal prices. Join us as we
return to this exciting market for the third year, to have an impact on how this new coal frontier
evolves and cement your position as a leading player in the market.
Speakers will include Batsuuri Yaichil, chief executive officer of Erdenes Tavan Tolgoi LLC, Graeme
Hancock, president and chief representative of Anglo American Development, and Bayanjargal
Byambasaikhan, chairman of the Business Council of Mongolia.
For more information, email coaltrans@euromoneyplc.com.
___________________________________________
FUTURE MONGOLIA, 19-22 JUNE, ULAANBAATAR
The Future Mongolia international trade fair will be held at the Buyant Ukhaa Sport Palace in
Ulaanbaatar, near the Chinggis Khaan International Airport, from 19 to 22 June, 2013.

19. After the successful premier with nearly 100 exhibitors from 14 nations and some 4,200 visitors, we
cordially invite you to the second Future Mongolia. This international trade fair offers the
opportunity on an enlarged exhibition space to present modern and sustainable solutions and
responses to the present needs of Mongolia and its population.
BCM members will get 5% discount on raw space. Please contact Saruul at saruul@bcmongolia.org
to get a special discount code. For more information, visit Future-Mongolia.com.
___________________________________________
“MM TODAY” on MNB-TV, Friday, 18:50-19:00
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 from 18:50 to 19:00 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM‟S MINING SUPPLY CHAIN DATABASE
The new version of BCM‘s Mining Supply Chain Database is in use. Following the initiative of Oyu
Tolgoi LLC, the BCM has maintained the Mining Supply Chain Database since March 2009. It is an
honor to introduce you to the new version of the database which is totally upgraded as to its
content and use of information technology opportunities.
As of December 31, 2012 suppliers registered on the database totaled 1,405. During 2012, 251 new
supplier entities joined the Database and 236 prior supplier registrants updated their company
profiles. In addition, 22 buyers were also registered and 82 tender announcements were posted.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration—FREE!
If you have any questions regarding the database, please contact 317027.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks
and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the
Business Council of Mongolia (BCM) and UB Risk Management Consulting:
• Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн
засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,
ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын
19
• Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,
Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ
ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага
хурал, 2013 оны 4 дүгээр сарын 19
• Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,
Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын
албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,
СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4
дүгээр сарын 19
___________________________________________

20. ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available.
The following 11 presentations were made at the London Mongolia Investment Summit on 17-18
April 2013:
• Defining the Mongolian mining sector: What will be the effect of Oyu Tolgoi and its production?
Cameron Macrae , President and CEO, Oyu Tolgoi, Mongolia, at the MIS 2013, London, UK
• How can businesses deal with regulations when investing in a changing legislative environment?,
Elisabeth Ellis, Partner, Minter Ellison, Mongolia, at the MIS 2013, London, UK
• Developing Mongolia‘s capital markets: How will the role of the government and the central bank
aid this? Zoljargal Naidansuren, Governor, Central Bank of Mongolia, Mongolia, at the MIS 2013,
London, UK
• Mongolia‘s potentially sustainable competitive advantage: can it be realised and what will it mean
for your business?Randolph Koppa, President, Trade and Development Bank of Mongolia at the MIS
2013, London, UK
• The Mongolian Stock Exchange: The extent to which liquidity will be improved by working with
the LSE, Altai Khangai, CEO, Mongolian Stock Exchange, Mongolia, at the MIS 2013, London, UK
• Tavan Tolgoi: how should the market evaluate the long term future for the project? Tsenguun
Tsogt, Head of Investment and Financing Department, Erdene Tavan Tolgoi, Mongolia, at the MIS
2013, London, UK
• The development of the Mongolian economy and banking industry: what opportunities are there
for your business? Norihiko Kato, CEO, Khan Bank, Mongolia, at the MIS 2013, London, UK
• Exploring and Developing Copper in Mongolia, Joe Burke, CEO, Voyager Resources, Australia, at
the MIS 2013, London, UK
• Mongolian Properties and Real Estate Report 2013, Lee Cashell , CEO, Asia Pacific Investment
Partners, Mongolia, at the MIS 2013, London, UK
• Shariin gol-A New Dawn, Graham Chapman, Chief Executive Officer, Sharyn Gol, Mongolia, at the
MIS 2013, London, UK
• The Ochiriin Bulag Project, James Passin, Chairman, Undur Tolgoi, Mongolia, at the MIS 2013,
London, UK
___________________________________________
• Nick Cousyn, Chief Operating Officer, BDSec Joint Stock Company, ―Gobi‘s Resort‖ at the BCM
Monthly meeting Apr 22, 2013
• Brian White, Editor, The Mongolist – ―Analyzing Mongolian Politics from the "Middle Layer", at the
BCM Monthly meeting Apr 22, 2013
• Ch. Otgochuluu, Head of Strategic Policy and Planning Department, Ministry of Mining, ―Brief
introduction on mining policy‖ at the BCM monthly meeting Apr 22, 2013
• The current flow of investment into Mongolia, S. Bold, Chief Economist, Central Bank, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• About regulation on FDI, S. Javkhlanbaatar, Foreign Investment Regulations and Registration
Department Head, Ministry of Economic Development of Mongolia, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• Legal issues of regulation of foreign investment, B. Amarsanaa, Academic Secretary of National
Legal Institute, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference
on April 19, 2013 at the Kempinski Hotel.
• Investment in stocks and equities in Mongolia: risks, challenges and trends, D. Gan-Ochir, Head of
Financial Stability Council, Advisor to President of Central Bank, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• On current state of equities foreign investment, D. Achit-Erdene, CEO, MICC, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.

21. • Market Update by Mandal General Insurance LLC
• Annual Report 2012 by International Monetary Fund
• Ruth Pulaski, Director Marketing & Development, American University of Mongolia – ―American
University of Mongolia: Integrating a Liberal Education Approach to Learning‖ at the BCM monthly
meeting, March 25, 2013
• B. Bayar, Managing Director, ELC LLC – ―Update on Legal Developments Regarding Foreign
Investment‖ at the BCM monthly meeting, March 25, 2013
• Tony Burchill, Australian Consul-General & Trade Commissioner, Austrade – ―The Business of Being
a Third Neighbour‖ at the BCM monthly meeting, March 25, 2013
Other recently added presentations:
• Dr. .Brian Fisher, Managing Director, BAEconomics, "Economic Impact of draft Minerals Law" at the
Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Dr. Ch. Khashchuluun, CEO of UBRM Consulting, Mongolia and Mining, The policy evolution: What's
the next? at the Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Martin Pow, Partner, Enterprise Risk Services and Learning Leader, Deloitte Onch LLC, ―Black
Swans: Fact or Fiction,‖ A different risk management philosophy at the BCM Risk Management
Working Group meeting, March 14, 2013
The following 3 presentations were added from Coal Mongolia, 21-22 February:
• ―Current state of coal sector of Mongolia and future trends‖ by Minister of Mining D. Gankhuyag at
the Coal Mongolia 2013, Feb 21, SS Convention Center, Ulaanbaatar;
• ―Economic Reform Objectives‖ by Vice Minister, Economic Development, H.E. Mr. O. Chuluunbat
at the Coal Mongolia 2013, Feb 21, SS Convention center, Ulaanbaatar;
• ―Presentation for Coal Mongolia 2013‖, Norihiko Kato, CEO of Khan Bank, Feb 21 at the SS
Convention Center, Ulaanbaatar, Mongolia.
•Presentation by Bold Baatar, CEO of Altan Dornod Mongol, ―Mongolian Mining Investment
Environment‖ at the Mining Industry Open Discussion, February 1, 2013, at Kempinski Khan Palace
Hotel.
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes ―Highlights of 2012, Mongolia‖ by European Bank for
Reconstruction and Development (EBRD); the ―Official statement of Oyu Tolgoi LLC in relation to
information, data and facts related to Oyu Tolgoi discussed during open session of the State Great
Khural, dated 1 February, 2013‖; ―2013 Mongolia Investment Climate Statement‖ by the Economic
and Commercial Section of the U.S. Embassy; ―Mongolia Foreign Labor Force Ratio for 2013‖ by
Hogan Lovells International LLP; ―How Mongolia will perform in 2013?‖ by Mandal Asset
Management; ―Mongolia Business Owner and CFO Survey result‖ by BDSec JSC; ―The fiscal regime
for mining - a way forward‖ by IMF Fiscal Affairs Department; ―Mongolia-a supplement to Mining
Journal‖ from Mining Journal October, 2012; ―Macro Overview‖ September, 2012 by EPCRC; ―Taxes
for Expatriates in Mongolia‖ by PricewaterhouseCoopers.
BCM's English website includes the ―Mongolia Business News‖ section where the Open Letter to
Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ―Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 5th Anniversary BCM Gala dinner on November 5.
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
___________________________________________

22. SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,115 fans on our Facebook fans page, 1,204 connections on LinkedIn network, and
672 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn.
ECONOMIC INDICATORS

26. 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]
March 31, 2013 *9.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 9.4% y-o-y, Ulaanbaatar city, March 31, 2013
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]

27. CURRENCY RATES – MAY 2, 2013
Currency Name Currency Rate
US dollar USD 1,434.94
Euro EUR 1,889.03
Japanese yen JPY 14.71
British pound GBP 2,232.69
Hong Kong dollar HKD 184.77
Chinese Yuan CNY 233.13
Russian Ruble RUB 45.72
South Korean won KRW 1.30
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.