The document provides a summary of business and economic news from Mongolia. Some of the key points include: - Final demands from Mongolia regarding the Oyu Tolgoi investment agreement are almost ready and an agreement is possible before Naadam in July. - Ivanhoe Mines shares jumped on reports that the Mongolian parliament may approve the Oyu Tolgoi agreement this month. - CNNC International acquired a 69% stake in Western Prospector, a uranium exploration company. - Entree Gold is compiling results from its spring exploration program including expanding resources at its Heruga copper-gold deposit.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 76, July 3, 2009
NEWS HIGHLIGHTS:
Business:
 Final Mongolian demands almost ready, OT agreement possible before Naadam;
 Talk is that Ivanhoe may win approval in Mongolia;
 CNNC International acquires 69% of Western Prospector shares;
 Entree Gold compiling results of spring exploration;
 Erdene Resource reveals strategic growth plan;
 New head of EBRD office takes over;
 Renovation buoys up fluorspar plant;
 Copper hits 2-week high on economic prospects;
 Inflation fear to keep commodities in focus: SocGen;
 GFMS expects fresh gold peak in H2 09;
 Mining industry faces “tough road ahead”: PwC;
 S&P launches global base metals index;
 Prestige Supplies to open new border shop in Mongolia.
Economy:
 MonAtom against extensive uranium export;
 MP worries about lax control over uranium waste;
 PPP to have a big role in infrastructure development in mining areas;
 Areas of PPP must be expanded, says Chamber boss;
 Nomadic norms must change with the times;
 UN sees index insurance as help in facing climate risk;
 Banks to lend MNT9.7 billion to manufacturers in Ulaanbaatar;
 Project to help family businesses extended;
 Jobless tailors form association, call for change in taste
 Veterans’ apartments only good news for construction sector;
 MPs flail decision to build bigger jail;
 Need to provide good vegetarian cuisine;
 Families offered vegetable fields on rent;
 Academics criticize Government for inaction.
Politics:
 U.S.Senate passes resolution affirming support for Mongolia;
 U.S. Congressional delegation visits Mongolia;
 China, Mongolia hold military drill in Beijing;
 Chinese leader sees bilateral ties at an all-time high;
 Anod Bank trio released on bail after 6 months;
 DP submits election expense accounts, denies allegations;
 Universities to enroll 7,000 fewer students this year;
 Pharmacies sell drugs as Chinese medicine;
 UK eases visa regulations;
 New British ambassador named;

2.  Ulaanbaatar shops using newspaper bags;
 Cell phone lost in Government House, meeting canceled;
 Two held for making fake notes “for fun”;
 UN Secretary-General wants “clear priorities” to tackle present crisis.
BUSINESS
FINAL MONGOLIAN DEMANDS ALMOST READY, OT AGREEMENT POSSIBLE BEFORE NAADAM
There is widespread expectation that the impasse over the Oyu Tolgoi investment agreement will
be resolved before Naadam. Minister of Minerals and Energy D.Zorigt told the MPRP group in
Parliament on Monday that considerable progress has been made in finalizing the position of the
Mongolian Government on the issue, on the basis of all the suggestions and recommendations from
various quarters, including the Standing Committee on the Economy and the working group set up
by Parliament. Informal discussions have continued to be held with the investors and the final
Mongolian version, once approved by Parliament, is expected to be then negotiated with bright
chances of an early settlement.
The final version of the Mongolian position, to be submitted to Parliament, calls for 34% Mongolian
ownership, no tax waiver, and an advance payment of USD225 million with lower interest rates. The
demand for a 55% share of the profits has not yet been decided. The Government wants Rio Tinto
International Holding and Ivanhoe Mines Canada to be co-signatories along with Ivanhoe Mines
Mongolia Inc. Two years will be given to the investors to raise funds and five years to complete all
construction and start operating to full capacity.
Since Mongolia does not have the resources to provide all the electricity needed for the project,
alternatives have been proposed. Mongolia will build the roads, but their maintenance will be the
responsibility of the project. The water supply to the project will be extended to cover the needs
of herders and the local population. An annual audit will be made and the report will be submitted
to the state auditing authority.
Source: Business-Mongolia.com
TALK IS THAT IVANHOE MAY WIN APPROVAL IN MONGOLIA
Another political deadline is looming for Ivanhoe Mines Ltd. to win approval for its flagship copper-
gold deposit in Mongolia, and there is growing speculation from investors it may actually happen
this time. Ivanhoe shares jumped 24% to $8.00 on Thursday, a day after they posted big gains in
New York. It follows reports out of Mongolia that parliament could sign off on an investment
agreement to develop the giant Oyu Tolgoi project this month, before it goes on holiday.
Otherwise, a long wait is possible.
"The indications coming from Mongolia would suggest that there is an effort underway to seek a
timely conclusion," BMO Capital Markets analyst John Hayes wrote in a note to clients. "In pure
calendar terms, something would have to happen pretty quickly now as things pretty much shut
down in mid-July," said Julian Dierkes, assistant professor at the Institute of Asian Research at the
University of British Columbia.
Talk about Oyu Tolgoi started heating up again last month, shortly after a presidential election
brought Tsakhiagiin Elbegdorj to power. He has been vocal about getting a deal done soon for a
country that badly needs the economic activity. Mongolia missed out on a massive copper revenue
stream this decade after dragging its feet on Oyu Tolgoi. Mr. Elbegdorj has also talked about
rejigging the Oyu Tolgoi agreement so that Mongolia gets profit-sharing from the project rather
than an equity stake, but that is seen as an unlikely outcome.
If an agreement is approved soon, it would provide an immediate boost for Ivanhoe. While
production at Oyu Tolgoi is still years away, an approval could trigger an exercise of Ivanhoe
warrants by Rio Tinto Ltd. at a price of US$8.38 ($9.72) a share, 21.5% above current levels. That
would also give Ivanhoe plenty of capital for early construction work at the project.
Source: Financial Post (Toronto)
CNNC INTERNATIONAL ACQUIRES 69% OF WESTERN PROSPECTOR SHARES
Western Prospector Group Ltd. has announced that 38,003,666 or approximately 69% of its issued

3. and outstanding common shares were validly deposited to the offer of First Development Holdings
Corporation for all outstanding common shares of the company and not withdrawn as at close of day
on June 29. This result represents substantial support for the offer. First Development has taken up
and accepted for payment all such shares tendered.
First Development has communicated to Western Prospector an intention to commence a second
step transaction by way of statutory arrangement, amalgamation, merger, reorganization,
consolidation, recapitalization or other transaction to acquire all remaining Western Prospector
common shares.
First Development is an indirect wholly-owned subsidiary of CNNC International Limited, a public
company listed on the Hong Kong Stock Exchange. CNNC Overseas Uranium Holding Ltd., a wholly
owned unit of China National Nuclear Corporation (CNNC), holds approximately 70.25% of the issued
share capital of CNNC Intl. CNNC is China's leading uranium development and nuclear fuel
company.
Source: www.westernprospector.com
ENTRÉE GOLD COMPILING RESULTS OF SPRING EXPLORATION
Entree Gold Inc. reports that nine additional holes have been drilled in its Heruga deposit within
the Javhlant license since a resource estimate was prepared in March 2008. These have confirmed
the extension of Heruga mineralization northwards to the Entree-Ivanhoe Mines property boundary
and to the south. Results from these additional holes are expected to be incorporated into an
updated resource calculation.
By the end of May 2009, over 15,000 meters of drilling had been completed on Entree's coal targets.
Coal seams have been traced over a strike length of approximately 1,200 meters by trenching and
drilling. The Coking Flats and Khar Suul targets to the south and southwest of Nomkhon Bohr are at
an earlier stage of exploration by drilling. Nomkhon Bohr coal is medium rank bituminous, high in
ash with variable sulphur. The geology has similarities to the Tavaan Tolgoi coal deposits, although
the coal at Nomkhon Bohr is of thermal quality.
The results of the spring program are currently being correlated in preparation for a resource
calculation. Once this is compiled and registered, an application for conversion of the exploration
license to a mining license will be made.
Source: www.entreegold.com
ERDENE RESOURCE REVEALS STRATEGIC GROWTH PLAN
Erdene Resource Development Corp. told shareholders at its Annual General Meeting last week that
the company is “focused on building value through our resource exploration and development
efforts in the China-Mongolia region” and elsewhere. Mr. Peter Akerley, President and CEO, said,
"Our established team, partners and knowledge-base, coupled with our strong financial position,
enables us to advance our projects along the development pipeline to create shareholder value."
Erdene’s strategic growth plan in the China-Mongolia region is to continue to search for new world
class resource discoveries while establishing itself as the partner of choice for companies that are
active in the country. During 2009-2010, Erdene will be seeking to increase its inventory of metals
and coal projects in the region. At its wholly-owned Zuun Mod molybdenum project located within
200 km of China's border, Erdene plans to advance Zuun Mod to the pre-feasibility/mining license
stage and secure a partner for its development. As for its Mongolian coal division, Erdene plans to
advance its Mongolian projects under the Xstrata alliance and assist its partners in advancing the
Galshar project toward production accelerating the royalty interest secured during the sale in 2008.
Shareholders re-appointed the existing board, which in turn appointed the executives. Mr. Akerley
remains President and CEO while Mr. Christopher Cowan was named Vice President-Asia.
Source: www.erdene.com
NEW HEAD OF EBRD OFFICE TAKES OVER
Mr. Philip Ter Woort, a Dutch national, took over as Head of EBRD's Mongolia Resident Office on July
1. His banking career began at ING, where he worked for almost a decade in a number of positions,
including in specialized commodity finance. During this time he gained extensive product expertise
and traveled frequently throughout the CIS. After a brief spell with Cargill Financial Services in
Geneva he joined ABN AMRO in Moscow as Director, Corporate Banking & Structured Finance
Division, later moving to the St. Petersburg branch as Executive Director. From there he moved to

4. Rabo Invest, where he oversaw the commercial and operational activities of Rabobank in Russia for
4 years.
Source: www.ebrd.com
RENOVATION BUOYS UP FLUORSPAR PLANT
The fluorspar concentration plant at Bor Undur is the only one such in Mongolia and also accounts
for 97-98% of the country’s fluorspar export. The traditional buyers of its output have been Russia,
India and the USA but since a recent renovation at a cost of USD6.3 million, the first since its
establishment in 1985, it has been looking for new markets in Japan, South Korea and Europe.
According to Mr. M.Boldbaatar, Director of the plant, they now plan to start mining the Zuun
Tsagaan Ereg deposit in Dornogobi before long and will also look for new deposits. The plant has its
own township with a population of 9,000 of whom 1,700 are its employees. It contributes MNT6
billion every year to the state budget.
Source: Undesnii Shuudan
COPPER HITS 2-WEEK HIGH ON ECONOMIC PROSPECTS
Copper hit a two-week high on June 29 as investors bet the worst of the economic downturn had
passed, but concerns about how long any recovery will take and worries over a slowdown in Chinese
imports capped gains. Copper for three-months delivery on the London Metal Exchange was last bid
at USD5,095 from USD5,035 on June 26. The metal hit a day's high of USD5,174, its highest since
mid-June.
"The key is the global recovery, everyone thinks we're out of the woods but there's a certain
nervousness," said an analyst at ETX Capital. "The recovery happened very quickly and people like
me are thinking...it can't come back this quickly -- the risk is to the downside not the upside."
Read more…
A slew of mixed data has provoked erratic trading trends in recent weeks as investors have
struggled to gauge the economic climate. By and large, however, sentiment is improving. Euro zone
economic sentiment improved more than expected in June, data showed on Monday, while
Japanese industry output rose for the third month in a row.
Policymakers and analysts, however, stress that a potential recovery would be complicated and
protracted. There are also worries that Chinese imports will not sustain the market, particularly as
markets are now entering the quieter summer period. Nonetheless, analysts see demand from the
world's top copper consumer reviving again towards the end of the year.
Source: www.miningweekly.com
INFLATION FEARS TO KEEP COMMODITIES IN FOCUS: SocGen
The midterm prospect of inflation stoked by government borrowing during the crisis could continue
to draw investors towards commodities, even if fundamentals are slow to recover, Societe Generale
analysts said on Tuesday. Inflation concerns have been one of the drivers of surging commodity
prices this quarter. Their attraction as a hedge could intensify if rising commodities and a falling
dollar were to fuel an inflation spiral, Mr. Frederic Lasserre, Global Head of Commodities Research
at Societe Generale, told reporters.
Commodities are among the few viable inflation hedges for investors along with property, Lasserre
said during a presentation. Commodities should also be buoyed by most countries coming out of
recession in the second half, although the recovery could be muted in 2010 and 2011. "The recovery
will be uneven and weak in 2010-2011, but compared to just 3 months ago, that an end to the
recession is now visible is in itself a dramatic upside surprise," the report said.
Source: Reuters.com
GFMS EXPECTS FRESH GOLD PEAK IN H2 09
An inflation-driven surge in gold investment around the world will likely boost the yellow metal to
new highs in the second half of this year, GFMS chairperson Philip Klapwijk writes in the latest issue
of the consultancy's quarterly newsletter. Investment demand, and especially so-called 'western'
elements, like exchange-traded funds, futures and the over-the-counter market, is expected to
remain the driving force behind gold price movements over the rest of 2009.
“Given increasing fears over the long-term inflation threat in western countries, we expect world
investment to see a massive increase this year, particularly from its implied net investment and

5. official coins components,” Mr. Klapwijk commented. GFMS calculates world investment as the sum
of implied net (dis)investment, official coins, bar hoarding, and medals and imitation coins.
Increased demand has been mainly driven by booming investor interest in gold. This is “a result of
the general decline in the US dollar since 2002; rising commodity prices (at least until mid-2008);
concerns over the security of bank deposits following the near meltdown of global financial
markets; more recently, the drop in short term interest rates to levels close to zero in the major
advanced economies and growing concerns at the potential longer term inflationary consequences
of unprecedented monetary and fiscal policy easing,” Mr. Klapwijk says.
Source: www.miningweekly.com
MINING INDUSTRY FACES “TOUGH ROAD AHEAD”: PwC
Mining companies have some difficult decisions to make if they are to reduce costs and protect
margins in the prevailing economic environment, professional services group
PricewaterhouseCoopers (PwC) said in a report published on Tuesday. "There is no doubt that the
industry is facing a tough road ahead," said PwC US mining leader Steve Ralbovsky.
"Reducing capital and operating expenditures and managing production levels to ensure they
operate at the lowest possible cost will be crucial for mining companies wanting to combat the
current economic conditions. However, given the long-term nature of mining projects and
associated capital commitments, it may be difficult for companies to drastically reduce costs in the
short-term." Interestingly, despite the economic downturn in the fourth quarter of 2008, mining
companies still increased revenue 23% year on year in 2008, in what PwC calls “a year of two
parts”. However, operating costs continued to rise at a greater rate than revenue and net profit fell
14% compared with 2007.
In the report, titled Mine – When the Going Gets Tough, PwC analyzed the financial performance of
the global mining industry and examined current trends in the industry, looking at the top 40 global
mining companies by market capitalization.
Source: www.miningweekly.com
S&P LAUNCHES GLOBAL BASE METALS INDEX
Index compiler Standard & Poor's (S&P) has launched its new S&P/TSX Global Base Metals Index,
which aims to provide investors with an investable index of global securities involved in the
production or extraction of base metals. The new index is a subset of the existing S&P/TSX Global
Mining Index, which provides investors with a broadly representative benchmark for global mining
portfolios. Eligible securities for the S&P/TSX Global Base Metals Index are classified under
diversified metals and mining or aluminum.
The S&P/TSX Global Base Metals Index includes companies that mine industrial metals like
aluminum, zinc, copper and nickel. To be included in the index, a security’s float-adjusted market
capitalization must be at least USD300-million, and it must meet certain liquidity requirements.
The top ten companies by weight included in the index are: Rio Tinto, Anglo American, Freeport
McMoRan Copper & Gold, Vale, BHP Billiton (both Ltd and plc), Teck Resources, Alcoa, Southern
Copper Corp and Aluminum Corp of China.
Source: www.miningweekly.com
PRESTIGE SUPPLIES TO OPEN NEW BORDER SHOP IN MONGOLIA
Travel retailer Prestige Supplies is in the final phase of negotiations to open a new duty-free store
at the Sukhbaatar railway station at the border between Mongolia and Russia. The new outlet will
be the company’s sixth duty-free store in Mongolia, where it has been operating since November
2007. The other five are at Zamiin Uud, on the border between Mongolia and China; at the Chinggis
Khaan international airport; two Mongol News outlets, and another next to Attila Hotel in
Ulaanbaatar.
The company has begun its operation in Mongolia and is “looking for further expansion across the
globe”.
Source: www.dfnionline.com

6. ECONOMY
MONATOM AGAINST EXTENSIVE URANIUM EXPORT
MonAtom representatives have told the Democratic Party members of Parliament that ever since
the company was established, it has been prospecting for uranium on its own in the previously
unstudied western parts of the country. They were not very enthusiastic about the Government’s
big plans of exporting large quantities of the yellow powder, as one day not very far away Mongolia
will have its own nuclear energy plant, and meeting its needs will be more important than earning
money by selling to Japan, China, India and South Korea. They want a long-term vision to dictate
policy on the mineral.
Source: Zuunii Medee
MP WORRIES ABOUT LAX CONTROL OVER URANIUM WASTE
Mr. D.Enkhbat, an MP from the Civil Alliance Party, has said any serious discussion of the country’s
nuclear policy can be held only after the license issue is sorted out. The whole thing has become a
mess as uranium licenses had been distributed like someone was selling items at a grocery. No order
has been maintained and no principle observed as deposits identified with state money have been
given away just like that.
He feels nuclear energy for Mongolia is a dream and may very well turn into a nightmare. “This
state today has become so corrupt, so lacking in governance that there will be no proper control
over the uranium waste,” he says, fearing that the country might end up full of extremely toxic
nuclear waste. Disposing of that waste would prove to be much more of a problem than handing
over licenses to mine uranium, he warns.
Source: Zuunii medee
PPP TO HAVE A BIG ROLE IN INFRASTRUCTURE DEVELOPMENT IN MINING AREAS
Mr. L.Zorig, Vice Chairman of the National Development and Reform Committee, feels that public-
private partnership (PPP) will be very important in the plans being formulated for a comprehensive
development of infrastructure in the mineral deposits locations in the southern parts of the
country. The plan includes construction of energy facilities, roads, railways, water supply, property
maintenance, urban planning and port development and is estimated to cost USD5 billion before
mining in Oyu Tolgoi, Tavan Tolgoi, Tsagaan Suvarga and Nariin Suhait can properly begin.
The State will be responsible for energy supply, but is likely to need foreign investment to build
high-capacity power stations in Tavan Tolgoi and Shivee Ovoo. Similarly the Government will
construct all roads, but much of the rest of the work will need private investment. The railway to
carry coal to China will be constructed with private money, and that from Tavan Tolgoi to
Sainshand and Zuunbayan will call for cooperation between foreign and local investors, both
Government and private. Parliament has set up a working group to help the Ministry of Legal
Affairs and Justice prepare a draft law on PPP.
Source: Undesnii Shuudan
AREAS OF PPP MUST BE EXPANDED, SAYS CHAMBER BOSS
Mr. S.Demberel, Chairman of the Mongolian National Chamber of Commerce and Industry, has
stressed the need to expand areas of public-private partnership (PPP). Both the Constitution and
the Minerals Law give the State the full ownership of all subsoil assets and this ownership is
inviolate but this does not mean, he said, that the State has to do everything about them and get
all the profits from them. “History has proved that a so-called state authoritarian regime is not
efficient at all,” he said. The owner must transfer parts of its rights via exploration licenses,
operation permits, development or investment permits, etc. Ownership is pointless if it does not
give the right to dispose of the asset in an efficient, profitable and responsible manner. PPP does
not take away the State’s rights to ownership, but does mean that it cannot be the only side to
profit from such ownership. PPP, he said, leads to a "win-win situation, where both the State and
the private sector win”. In his view Mongolia does not need an elaborate law like South Korea to
regulate PPP here. It will be enough if a legal basis is in place for "a case by case implementation”.
The general law will govern individual agreements on projects. These would be legally binding and
to facilitate their enforceability they can be modeled on existing international contracts. This can
apply to both leasing, where operational rights are transferred for a given period, and to

7. development, where investment is made without disturbing the ownership. The present laws on
both are poorly worded in Mongolia, he said.
Source: www.mongolianminingjournal.com
NOMADIC NORMS MUST CHANGE WITH THE TIMES
It is time to seriously review our policy since the 1990s to increase the number of livestock, with
special incentives for raising the goat population so that more cashmere could be produced. No
notice has been taken of the damage this has been causing to the regenerative ability of the
pasture, with the result that some experts are convinced Mongolian agriculture is the real culprit
behind the country’s growing desertification.
We had 23 million heads of livestock in 1992. This has now become 45 million of which almost half
are goats. They and the horses degrade the pasture and it is imperative to install some restrictive
regulations.
Pasture lands should be allocated to 20-30 neighboring herder families on a long-term basis. Grazing
should be scientific and the number of animals determined accordingly.
Infrastructure will also have to be developed, exploiting underground water. The practice of
herders using only surface water is proving disastrous. Our traditional nomadic norms have to be
revised in the 21st
century. We have to learn compact animal husbandry with proper pasture
management.
Source: Zuunii Medee
UN SEES INDEX INSURANCE AS HELP IN FACING CLIMATE RISK
"Index insurance", covering risks such as droughts or floods, could help small farmers in developing
countries cope with worsening impacts of global warming, a U.N. backed report prepared by the
International Research Institute for Climate and Society at Columbia University in New York has
said.
"Index insurance is a very new tool; it's exploding in popularity," said Mirey Atallah of the UNDP and
an editor of the report. "There are a lot of challenges, but also a lot of opportunities." Examples of
index insurance include drought coverage by Ethiopia, a system for Mongolian herders linked to
livestock deaths, or disaster insurance for Caribbean islands linked to hurricane wind speeds. Banks
are also more likely to extend credit to the insured.
Source: Reuters.com
BANKS TO LEND MNT9.7 BILLION TO MANUFACTURERS IN ULAANBAATAR
Manufacturing units in Ulaanbaatar will get loans worth MNT9.7 billion under an agreement Mayor
G.Munkhbayar signed with five commercial banks last week. Each business can borrow up to MNT50
million and repay it within three years at 1 percent interest per month. The banks will also lend
budgeted money to manufacturers.
Source: Ardiin Erkh
PROJECT TO HELP FAMILY BUSINESSES EXTENDED
An Entrepreneurship Development in Mongolia-II memorandum was last week signed between the
Small and Medium Enterprise Department of the Government Implementing Agency, the UNDP and
the Embassy of Japan to extend a project started in 2004. The just concluded first stage of the
project offered vocational training to over 3,000 individuals and generated over 850 home or family
businesses. Services like low-interest loans, or links to markets were provided to help them achieve
viability and stability. As a result, small units producing red garlic in Zavkhan, jams, salt and sea-
buckthorn in Uvs, honey in Selenge have created their own brands, some even winning honors from
The National Chamber of Commerce and Industry.
The next stage will continue up to 2012, with a UNDP contribution of USD560,000 and the Japanese
Government giving USD640,000. The money will be used to support small domestic producers with
loans for either working capital or expansion expenses.
Source: Zuunii medee
JOBLESS TAILORS FORM ASSOCIATION, CALL FOR CHANGE IN TASTE
A National Tailors’ Association has been formed to help the large number of Mongolians trained in
tailoring who have skills and sewing machines, but no customers and thus no income. The trade

8. received its first setback when many workers were laid off from the shoes and clothes factories of
the Soviet period. The later blow was more serious, for when their export orders dried up, Chinese
entrepreneurs just closed their garment making businesses and went back home, after leaving a
large number of Mongolian workers unpaid for months. With few alternatives, young Mongolians
continued to enroll in tailoring courses, even though many must have known they were unlikely to
have any gainful employment.
The head of the new association feels many qualified and skilled tailors can still make a living if
people change their preference for China-made ready-to-wear clothes for all seasons. Fashionable
and attractive casual clothes should have a big enough domestic market, to help unemployed tailors
out of misery.
Source: Undeshnii Shuudan
VETERANS’ APARTMENTS ONLY GOOD NEWS FOR CONSTRUCTION SECTOR
The construction industry continues to be short of cash, and its only good news in recent days has
been the Government’s decision to provide 600 war veterans with one-bedroom apartments. No
agreement has been made about the price so far. The general price quoted for an apartment is still
between USD650-USD1,200 per sq.m but many economists claim it should be much less, around
USD500 per sq.m. Indeed, some companies, eager to lay their hand on some cash, have reduced
their price to this level, but they are not many. All are waiting for the Ipotech law to be approved,
so that the sector will be revived with demand increasing in an improved legal environment.
Source: Zuunii medee
MPs FLAIL DECISION TO BUILD BIGGER JAIL
Some members at a recent meeting of the parliamentary Standing Committee on the Economy
criticized Government departments for taking “strange decisions” at this time of crisis, such as the
one to spend MNT300 million on finishing the construction of a jail for 1,000 prisoners when more
than 7,000 citizens in an Ulaanbaatar area lived without electricity. There was majority support at
the meeting for a proposal to allot MNT3.8 billion for building a power station in Khuvsgul province
which will supply Govi-Altai and Zavkhan provinces. A private company may be found to share the
total expenses.
Source: www.news.mn
NEED TO PROVIDE GOOD VEGETARIAN CUISINE
Wherever in Mongolia tourists may go, they will need three meals a day, so if we seriously intend to
attract more tourists, we must make sure they get something they wish to eat. It is time to develop
vegetarian cuisine of acceptable quality if we do not wish to be shunned by a large segment of the
tourist population. Mongolia is known for the little choice and variety it offers to vegetarians and
the tourism industry should take up plans to change our image.
Source: Undeshnii Shuudan
FAMILIES OFFERED VEGETABLE FIELDS ON RENT
Families in Ulaanbaatar wishing to grow vegetables can rent 400 square meters of land under a new
project. Altogether 120 acres of land will be used in the project. The area will have a fence,
guards, and watering system. If the land is not properly used, it will be given to other people.
Source: Odriin Soniin
ACADEMICS CRITICIZE GOVERNMENT FOR INACTION
Dr. N.Dashzeveg, Principal of the Mongol Institute, and Professor Dr. D.Purevbaatar have criticized
the Government and Parliament for failure to take appropriate action as Mongolia enters the second
stage of the economic crisis.
They fault the Government for not acknowledging the severity of the situation, or at least for not
sharing it with the people. It uses the Mongolian word for “difficulty” when other countries openly
say “crisis”.
“The wrong policy followed by the Central Bank is dangerously affecting the viability of commercial
banks, all 16 of which are threatened with bankruptcy,” they say, charging the Central Bank with
not having “a crisis policy”. Commercial banks do not have money to lend, meaning the
construction and trading sectors have no access to credit. The country’s macro economy has almost

9. come to a halt, affecting the value of the MNT, putting both private companies and the state
budget into trouble.
Source: Onoodor
POLITICS
U.S. SENATE PASSES RESOLUTION AFFIRMING SUPPORT FOR MONGOLIA
On June 18, the U.S. Senate passed by unanimous consent a resolution “expressing the sense of the
Senate regarding supporting democracy and economic development in Mongolia and expanding
relations between the United States and Mongolia.” Introduced by Mr. John Kerry, chairman of the
Senate Foreign Relations Committee, the resolution says the U.S. Government has a “continued
commitment to ongoing economic and political reforms in Mongolia and has made sizeable
contributions for that purpose since 1991” and that the “growing partnership between the
democratic governments and peoples of the US and Mongolia deserves acknowledgment and
celebration”. Therefore, the U.S. Government “should continue to provide Mongolia assistance
under the Millennium Challenge Compact and encourage further effective and accountable
governance; and should expand upon existing academic, cultural, and other people-to-people
exchanges with Mongolia”.
Source: Thomas Register
For complete Senate 111, Resolution 192, see BCM website, Articles/Reports on Mongolia
U.S. CONGRESSIONAL DELEGATION VISITS MONGOLIA
A six-member U.S. Congressional delegation from the House Democracy Assistance Commission, led
by Representative David Price and including members of both political parties, visited Mongolia on
June 29 and 30. The purpose of the visit was to discuss and compare with Mongolian lawmakers the
working of the U.S. Congress and the Mongolian Parliament, sharing practices and experiences, and
to observe Mongolia’s strong democratic growth over the past 18 years. The delegation called on
President Elbegdorj, Prime Minister Bayar, and Parliament Speaker Demberel.
Mr. Price congratulated the new president on winning the democratic election, and expressed U.S.
appreciation of the developing relations between the two countries and of the active participation
of Mongolia in international peacekeeping operations. He also hoped that the Millennium Challenge
Program will help Mongolia’s development.
In his remarks, President Elbegdorj thanked the USA for its constant support of Mongolian
democracy and promised to work to further develop bilateral relations. He was sure Mongolian
democracy would become a model for other countries. Mr. Bayar told the visitors he looked forward
to enhanced cooperation with the new U.S. Administration “in accordance with the principles of
comprehensive partnership”. Saying Mongolia highly values its relations with the USA, he thanked
the U.S Senate for adopting a resolution supporting democracy and economic development in
Mongolia.
Source: mongolia.usembassy.gov, Montsame, Ardiin Erkh
CHINA, MONGOLIA HOLD MILITARY DRILL IN BEIJING
The first peacekeeping joint military exercise between neighbors China and Mongolia was launched
Sunday morning in a training base in north Beijing. The six-day drill, named “Peacekeeping Mission
2009”, has been planned to feature a series of small-size exercises, mimicking real scenario in
international peacekeeping. The host has sent a team of 46 soldiers, while the guest contingent has
45.
This is the first joint peacekeeping exercise China has held with another country, as well as the first
joint military training between China and Mongolia. In that way it reflects the deepening pragmatic
cooperation between the two militaries, according to official Chinese comments.
Source: chinadaily.com.cn
CHINESE LEADER SEES BILATERAL TIES AT AN ALL-TIME HIGH
A senior leader of the Communist Party of China (CPC), on a goodwill visit to Mongolia, last week
said that China-Mongolia ties have reached an all-time high with no unsettled major issues
remaining. Mr. He Guoqiang, a member of the Standing Committee of the Politburo of the CPC

10. Central Committee, told Prime Minister Bayar his visit "aims at laying a solid foundation for the
sustained growth of China-Mongolia relations by reviewing the past, summing up experience and
looking into the future". Calling on President Elbegdorj, Mr. He assured Mongolia of increased
investments in infrastructure and mining sectors.
Cooperation agreements on education, economy and trade were signed during Mr. He’s three-day
visit.
Mr. He, also secretary of the CPC's Central Commission for Discipline Inspection, met separately
with the leaders of three major Mongolian parties. At a meeting with Mr. B.Ulambayar, MPRP
secretary, Mr. He remarked that party-to-party relations between the two countries constitute an
important aspect of bilateral ties, and proposed that both sides maintain inter-party high-level
visits and enhance their mutual trust.
Source: www.chinaview.cn
ANOD BANK TRIO RELEASED ON BAIL AFTER 6 MONTHS
Three senior officials of Anod Bank, arrested on December 11, were released on bail last week.
Executive Director D.Enkhtur, board member E.Gur-Aranz, and N.Davaa have been accused of, but
not charged in court, abusing power, illegal trading and deliberately causing loss to the bank. Mr.
Enkhtur and Mr. Davaa had gone on hunger strike in protest against their continued imprisonment.
Source: Zuunii Medee
DP SUBMITS ELECTION EXPENSE ACCOUNTS, DENIES ALLEGATIONS
The Democratic Party has submitted to the General Election Committee a full account of its
expenses during the presidential election campaign. It spent MNT2.953 billion, twice the original
estimate. Of this, MNT2.5 billion had come from citizens’ donations and MNT308.9 million from
party funds. Mr. Z.Enkhbold, who was in charge of campaign finances, emphatically denied the
allegations that the DP had spent MNT30 billion on the campaign and is now giving monetary awards
to its workers. “Our party has nothing to hide,” he said, adding that it would always provide
detailed accounts to satisfy people’s demand for probity in public matters.
He ridiculed the MPRP claim that it spent only MNT1.9 billion, saying, “Maybe they made a mistake,
writing 1.9 billion for the actual figure of 19 billion.”
Source: Udriin Sonin
UNIVERSITIES TO ENROLL 7,000 FEWER STUDENTS THIS YEAR
The Ministry for Education, Culture and Science has been taking a series of measures aimed at
improving the quality of teaching in universities and institutes. Three universities have been barred
from offering courses in economics. They are the University of Science and Technology, the
University of the Humanities and the University of Medical Science.
The ministry has also announced that total enrollment at post-secondary courses has been reduced
by 7,000, with more cuts to be made in the coming years. Around 40,000 high school students sat
for their final exams this year, and 30,000 of them can expect to get into a university.
Source: Onoodor
PHARMACIES SELL DRUGS AS CHINESE MEDICINE
Substance abuse among the youth, even teenagers, is getting commoner in Mongolia and the
authorities are worried it could become a serious security threat if not curbed effectively. A
meeting last week among some government departments and NGOs heard how the National Center
Against Drug Addiction had found that 180 children between 12 and 17 had taken some narcotic at
least once.
Many regular pharmacy shops sell such substances without the necessary special permit. These
mainly come from China, as normal medicine. Ch. Otgontsetseg, state inspector of special control,
said inspection of 461 units in the medicine trade had revealed 723 breaches of the relevant law.
Enforcing agencies in Mongolia have neither the training nor the equipment to separate a narcotic
from regular medicine.
Source: Zuunii medee
UK EASES VISA REGULATIONS
Depending upon the purpose of traveling, Mongolian citizens will now be issued a multiple-entry UK

11. visa for 6 months valid for 10 years. A note to this effect was exchanged between Foreign Minister
S.Batbold and the British Ambassador to Mongolia Thorda Abbott-Watt on June 29.
Source: Montsame
NEW BRITISH AMBASSADOR NAMED
Mr. William Dickson has been named to succeed Miss Thorda Abbott-Watt as Ambassador of the
United Kingdom to Mongolia. He will take up his appointment soon. Mr. Dickson has been British
Consul General in Erbil, Administrator and Consul General in Tristan da Cunha, and the British
Government Spokesperson in Hong Kong.
Source: ukinmongolia.fco.gov.uk
ULAANBAATAR SHOPS USING NEWSPAPER BAGS
Now that the government has announced it plan to ban plastic bags from all shops in Mongolia,
making it one of the first Asian countries to do so, a new product is needed, something strong, easy
to use, cheap to manufacture and more importantly, biodegradable. A fire safety company, Eurofeu
Asia, has set up a workshop to make newspaper bags where the workers are disadvantaged women
from the ger districts of Uliyastai.
They collect old newspapers from various city locations and glue and assemble bags from them.
These are then sold to Mongolian shops. The Papillion Bookshop has just ordered 200 bags. With
newspapers plentiful and free here, they are cheap to manufacture, at around MNT400 a bag. They
are also biodegradable within two to five months. Eurofeu Asia sells them at cost price in an effort
to promote their use as well as give work to those who would not normally have any. Papillon
Bookshop Manager, Ts.Narantuya, says they have used these bags for over a year now, “our
customers love them, and we feel better for not polluting the streets of Ulaanbaatar”.
Source: The UB Post
CELL PHONE LOST IN GOVERNMENT HOUSE, MEETING CANCELED
There was a different kind of activity in Government House on Wednesday after Mr. Ts.Enkhbat,
Director of TV9 channel, reported he had lost his cell phone. Security was tightened, more police
were called in and they checked every person entering and leaving. The commotion was so much
that a scheduled meeting at 2 p.m. between MPs and NGOs to discuss the Oyu Tolgoi agreement
was canceled. Mr. Enkhbat had come to the State Information Center to sign an agreement. He had
kept his cell phone on the table and found after some time it was gone.
Source: en.News.mn
TWO HELD FOR MAKING FAKE NOTES “FOR FUN”
Two unemployed young men, arrested on Monday while they were making fake banknotes using a
color printer, told police they had no criminal intent and were doing it “for fun”. They said they
planned to use the MNT2.5 million in denominations of MNT20,000 and MNT10,000 as a gimmick,
like throwing them down from a plane.
Source: www.news.mn
UN SECRETARY-GENERAL WANTS “CLEAR PRIORITIES” TO TACKLE CRISIS
Addressing the UN conference on the world financial crisis and its impact on development,
Secretary-General Ban Ki-moon stressed the need for “clear priorities” to be adopted “to make sure
that good intentions translate into concrete action”. He underscored the importance of delivering
on pledges of aid to achieve the Millennium Development Goals, and set three specific areas for
action’ He said, “First, we must mobilize our full strength for better real-time data on the impact
of the crisis on the poorest; second, we must keep global commitments to help women and men
move from vulnerability to opportunity; third, we must work together to reform international
institutions for the 21st
century.”
He called for filling the "resource gaps left in the Education for All fast track initiative and ensuring
universal access to primary education".
Source: www.un.org/apps/news/infocus/sgspeeches/statments_full

12. NEW MONGOLIAN LAWS
The following amendments to a current Mongolian law were published in a recent weekly
Government Bulletin. Unless decided otherwise by Parliament, the amended law takes effect ten
(10) days after publication.
Date Law
06.24.2009 Amendments to "Law on auto transportation"
Please visit BCM’s website, Legislative Committee, for a summary of new Mongolian laws.
BCM members who wish complete versions of the laws in Mongolian language are welcome to call or
email the BCM office (11-332-345; info@bcmmongolia.org) to arrange for a convenient pickup.
ANNOUNCEMENT
“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 9:15 PM tonight. Tune in to watch this program that reports stories from today’s BCM
NewsWire.
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13. ECONOMIC INDICATORS
MSE WEEKLY REVIEW
For the week ended June 26, 2009, trading activity on the Mongolian Stock Exchange (MSE) totaled
228.300 shares with 29 companies traded. Total market value of transactions was MNT 163.9
million. Total market capitalization of the 358 stock companies listed on the MSE was MNT 468.1
billion, and increased by MNT 5.2 billion or 1.1% from the previous week.
The Top-20 Index increased by 109.09 points or 2.3% compared to the previous week, closing at
4,848.00 points. The MSE Composite Index increased by 31.47 points or 1.3% compared to the
previous week, closing at 2,494.78 points.
Most active stocks traded were: Tuul Songino usnii nuts (129,500 shares), Khuh gan (44,200 shares)
and Genco tur buro (18,200 shares).
Major share price percentage gainers were: Gobi (12.0%), Zoos Bank (7.5%), Eermel (6.3%), Khuh
gan (4.4%), and Mon.Tsakh. Kholboo (3.5%). Major share price percentage losers were: Erdenet
khivs (15.0%), Buligaar (14.0%), Spirt bal buram (5.8%), Genco tur buro (5.6%), and Naco tulsh
(5.1%).
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
May 31, 2009 *8.0% [source: NSOM]
* year over year (yoy)
CURRENCY RATES – July 2, 2009
Currency name Currency Rate
US dollars USD 1437.09
Euro EUR 2022.92
Japanese yen JPY 14.85
British pound GBP 2364.16
Hong Kong dollar HKD 185.42
Chinese yuan CNY 210.30
Russian ruble RUB 46.11
South Korean won KRW 1.13
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.