04.10.2013, NEWSWIRE, Issue 294

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 294 – October 4, 2013
NEWS HIGHLIGHTS:
Business
 Mongolia confident of resolving Oyu Tolgoi battle by Dec 31;
 Rio Tinto's Oyu Tolgoi faces Chinese customs delay;
 Entrée considers license transfer;
 Inova agrees to takeover bid;
 Sharyn Gol closure of tender for smokeless fuel asset;
 MSE listed firm launches first concrete sleeper factory;
 PetroChina pays environmental fines to locality;
 AUM to offer 75% tuition scholarships;
 Forgotten Central Asia and Mongolia ETF in focus;
 Khan fund remains stable, falling below 1%;
 Private equity group helps Mongolian firms connect with outside world;
 Friends of Mongolia funds Business training in Khuvd;
 Centerra's Kumtor mine stormed in protest;
 PwC revenue growth slows;
 Davis raises $1bn for mining company.
Economy
 EPCRC August macroeconomic overview;
 Working group’s conclusion on the economy;
 Money supply increases 20%;
 Interest rates on loans not likely to fall, say banks;
 Mongolia to launch woolen insulation production;
 State property concessions projects revealed;
 Belarus bans small livestock imports from Mongolia;
 Peace Bridge to receive repairs in October;
 Mining firms make way for shoots of green economy;
 Weather can't cool boom in Ulaanbaatar;
 Skyline of tents, towers shows Mongolia inequality;
 Mongolian fluorspar: a near-term success story?
 Collapse of Savings Bank leads to calls for better regulation;
 Australia raises China iron ore import forecast;
 Increasing regulation and China’s slowing economy threaten dominance of coal.
Politics
 New Investment law passed;
 Investment Fund law passed;
 Agenda for autumn session of parliament approved;
 Prime Minister: Budget amendments are certain;
 US to finance $5.1m of development projects;
 Elbegdorj calls for renewed development effort with close of MDGs;
 Elbegdorj makes statement on Nuclear Disarmament;
 Mongolia signs the arms trade treaty;
 Mongolia, N. Korea discuss trade at intergovernmental meeting;

 Abe hosts Elbegdorj at home;
 Diplomatic relations established with Suriname, Sierra Leone;
 Police on alert for counterfeit bills;
 Former UB mayor under investigation;
 IAAC shows no interest in Gobi-Altai corruption case, says DP official;
 Youth Federation launches anti-corruption website;
 A 21- century Silk Road between East and West is long overdue;
 Shanghai’s new zone: lots of hype, little detail;
 Development Policy of the Mineral Sector by the Government: Proposal developed by 11
scientists.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank
International SOS
Wagner Asia Automotive Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BUSINESS
MONGOLIA CONFIDENT OF RESOLVING OYU TOLGOI BATTLE BY DEC 31
The Mongolian government is confident it can resolve disputes with Rio Tinto over a $5 billion
expansion of the Oyu Tolgoi copper and gold mine by Dec. 31, the deadline for sealing financing for
the project, an official said on Tuesday.
"I am very confident," the mining ministry's director general of strategic policy and planning, and a
boarder member for Oyu Tolgoi LLC. Otgochuluu Chuluuntseren, told reporters, when asked

whether Mongolia would be able to resolve issues ahead of the deadline.
The Oyu Tolgoi board, including three new Mongolian directors, met in London last weekend to try
to resolve about 15 concerns that the Mongolian government has raised.
Mongolia has yet to be satisfied on three major issues: terms for project financing, an analysis of
cost overruns at Oyu Tolgoi and feasibility studies for the mine's expansion, Otgochuluu said.
The government hopes to see a feasibility study for Phase 2 by early 2014, he said, and wants a
detailed breakdown of costs for each phase of the mine's development, rather than accepting a
figure of more than $14 billion for the whole development.
"The Mongolian government has equity so we have to closely follow the costs," Otgochuluu said. He
added, "We made good progress for the sustainability of mutual trust," he said. "I don't want to
jeopardize trust because of minor technical issues."
Uncertainty over Oyu Tolgoi, as well as changing foreign investment rules, have led to a 43 percent
drop in foreign direct investment in Mongolia this year and rocked shares in smaller companies with
projects in the country.
Source: Reuters
RIO TINTO'S OYU TOLGOI FACES CHINESE CUSTOMS DELAY
The Oyu Tolgoi copper and gold mine has already begun to receive payments for copper
concentrate shipped to a warehouse in China but hasn't yet recorded any revenue due to Chinese
customs approval delays, Turquoise Hill Resources Ltd. said.
The delay represents another stumbling block for the project which has been mired in years of spats
over matters, including how to maximize returns and the ratio of foreigners in its workforce.
Turquoise Hill, which owns 66 percent of Oyu Tolgoi and is majority owned by the project's
operator, Rio Tinto PLC, said the mine "has begun to receive payments from customers. However,
as revenue is recognized [only] when customers withdraw concentrate from the warehouse, to date
Oyu Tolgoi has not recorded any revenue."
Oyu Tolgoi has produced 160,000 metric tons of copper concentrate and shipped approximately
38,000 tons of concentrate to a bonded warehouse in China between the time it began its first
shipments in July and 18 September. Another 122,000 tons is currently being held in inventory at
the mine, the company said.
Although Oyu Tolgoi has established the logistics process with Mongolian customs officials enabling
concentrate to be delivered to the bonded warehouse in China, Oyu Tolgoi's customers are currently
engaged with Chinese customs officials to receive the necessary approvals to enable them to collect
purchased concentrate from the warehouse, the company said.
Production at the mine has not been affected while customers work through the Chinese customs
process, the company added. Oyu Tolgoi's concentrator continues to ramp up and is currently
running at full capacity or approximately 100,000 tons of ore processed a day. "Turquoise Hill
continues to expect Oyu Tolgoi sales to be aligned with production rates by the end of this year," it
added.
Source: Wall Street Journal
ENTRÉE CONSIDERS LICENSE TRANSFER
Entrée Gold Inc. is considering a proposal for a transfer of its licenses to Oyu Tolgoi LLC.
Entree on 1 October confirmed it had been advised that the temporary transfer restriction on two
joint venture mining licenses will be lifted. It was notified that the reserves for the joint venture
deposits will now stand as originally presented. Entrée has been in discussions with stakeholders of
the Oyu Tolgoi project, including the government of Mongolia, Oyu Tolgoi, Erdenes Oyu Tolgoi LLC,
and Rio Tinto Group, since the government of Mongolia temporarily restricted the joint venture
licenses from transfer in February 2013. The discussions to date have focused on issues arising from
Entrée‘s exclusion from the 2009 Oyu Tolgoi Investment Agreement.
―Meetings to discuss possible ways of addressing all parties‘ concerns in a mutually satisfactory
manner have been positive and constructive,‖ said the Source.
While Entrée has acknowledged that the transfer of the joint venture mining licenses to Oyu Tolgoi,

as currently contemplated by the Entrée-Oyu Tolgoi joint venture, is important as these licenses
form an integral part of the future underground operations at Oyu Tolgoi, no final agreements have
been reached and further discussions with all stakeholders are required. The final outcome must be
acceptable to Entrée, provide Entrée with appropriate consideration and be in the best interest of
Entrée‘s shareholders.
Source: Entrée Gold Inc.
INOVA AGREES TO TAKEOVER BID
The independent directors of Turquoise Hill Resources Ltd.'s 56.2 percent-owned Inova Resources
have advised shareholders to accept a USD 160 million takeover offer from China‘s Shanxi Donghui
Coal Coking & Chemicals Group, subject to certain conditions.
In a statement Australia- and Toronto-listed Inova said that shareholders should accept the bid if
the offer was declared unconditional, and if its largest shareholder, Turquoise Hill Resources,
accepted the offer.
Turquoise Hill has agreed to sell an initial 14.9 percent of its 56.2 percent shareholding in Inova, at
a cash price of 22c a share.
The Shanxi Donghui offer was a 55 percent premium to the three-month volume-weighted average
price of Inova‘s shares on the Australian Securities Exchange, and a 29 percent premium to the
share price on August 20, a day before the offer was launched.
The takeover was subject to a number of conditions, including a 51 percent minimum acceptance
condition, as well as regulatory approval from both the Australian and Chinese regulatory bodies.
Source: Mining Weekly
SHARYN GOL CLOSURE OF TENDER FOR SMOKELESS FUEL ASSET
Sharyn Gol JSC announced the closure of a previously announced tender offer for Naco Fuels JSC,
with the acquisition of 11,723,989 shares, representing 92.9 percent of Naco.
Naco owns a coal enrichment and briquetting plant located in Darkhan, Mongolia. Sharyn Gol
intends to return Naco's plant, which is ideally situated to enrich Sharyn Gol's coal into clean
burning char and smokeless briquettes, to operation in October 2013.
There is strong demand for smokeless fuel in Mongolia amounting currently to an estimated
500,000 tons of smokeless fuel in UB city alone, with additional markets in the industrial cities of
Darkhan and Erdenet, plus other industrial users. The replacement of raw coal with smokeless fuel
as the primary heat source in the informal housing (ger) districts would significantly reduce air
pollution in Ulaanbaatar and elsewhere.
"The Naco acquisition represents a logical expansion of Sharyn Gol into the highly attractive market
for coal briquettes,‖ said Graham Chapman, Sharyn Gol's chief executive. ―Sharyn Gol intends to
aggressively expand its smokeless fuel business and will continue to make opportunistic investments
to maximize revenue and cash flow growth for the benefit of all its shareholders."
Source: Digital Journal
MSE LISTED FIRM LAUNCHES FIRST CONCRETE SLEEPER FACTORY
Ulaanbaatar-listed construction material producer BUK JSC has launched the first concrete sleeper
factory in Mongolia.
The factory will produce up to 350,000 to 500,000 concrete sleepers, a railroad tie made out of
steel reinforced concrete, annually. The factory is equipped with modern technology mostly bought
from RMS LLC of England. It will produce 500,000 concrete sleepers this winter to supply the Tavan
Tolgoi-Gashuun Sukhait railroad project next spring.
Source: BDSec JSC
PETROCHINA PAYS ENVIRONMENTAL FINES TO LOCALITY
Mongolian oil producer PetroChina Dachin Tamsag LLC has paid MNT 1.3 billion in fines to Matad
Soum.
PetroChina paid its fine for having its delivery vehicles on dirt paths rather than build the paved

roads required under the agreed terms in exchange for it to use the land for oil production.
Environmentalists argue that the vehicles driving on unpaved terrain is detrimental to the
environment.
The decision comes a year since an appeals court first confirmed the original court order for
PetroChina to pay the fine. The oil company said this time it would comply with the order and pay
the fine following this latest decision. The Governor‘s Office of Matad plans to hold discussions with
citizens on how best to use this money.
Source: Undesnii Shuudan
AUM TO OFFER 75% TUITION SCHOLARSHIPS
The American University of Mongolia (AUM) announced that it can provide 75 percent tuition
scholarships after receiving a large donation from the English Language Institute Scholarship Fund.
AUM plans to award scholarships this month, with a deadline for application submissions on 7
October. Classes are set to begin 14 October.
Source: American University of Mongolia
FORGOTTEN CENTRAL ASIA AND MONGOLIA ETF IN FOCUS
The long overlooked Central Asia and Mongolia zone has recently caught investor's attention. This
commodity-centric region is getting all the attention thanks to an upsurge in natural resource
prices, and a new fund is reaping the benefits.
All the countries in this region are rich in deposits of various resources including petroleum, natural
gas and mining commodities like gold, copper, silver and coal. Mongolia is one of the largest coal-
producing countries, Kazakhstan is one of the major oil producing countries and Uzbekistan has the
largest open-pit gold mine in the world. And there is a new fund called Global X Central Asia &
Mongolia Index ETF which serves up exposure as a pure play in this forgotten region. The
performance of AZIA mirrors that of natural resources and their outlook. With coal stocks heaving a
sigh of relief on the expectation of better pricing by next year, Mongolian exposure, albeit little,
might drive the fund higher. Kazakhstan's abundance of coal should also be kept in mind.
Central Asia and Mongolia is a bit tricky part of the world to invest in since very few and not all five
counties of central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) get
exposure in the emerging markets or frontier market funds. This criterion brings AZIA in focus. In
the last three months, the fund gained 8.5 percent as of 30 September.
Debuted in April 2013, Global X Central Asia & Mongolia Index ETF tracks the performance of the
Central Asia & Mongolia Index. The fund doles out exposure to 22 securities from the various nations
that have exposure to the central Asia and Mongolia region. So far, the fund has been ignored in the
emerging markets segment with just about USD 1.5 million in assets under management. This leaves
the fund with paltry trading volumes. The product puts as much as 74 percent of its total assets in
the top 10 holdings, suggesting a very high concentration risk. Centerra Gold Inc. and Bank of
Georgia hold top positions in the basket.
Source: Zachs
KHAN FUND REMAINS STABLE, FALLING BELOW 1%
The Khan Mongolia Equity Fund (KMEF) saw near-flat performance—down 0.46 percent—despite a
decline in the tugrug of 8.32 percent against the U.S. dollar. Year-to-date the tugrug has
depreciated 21 percent. Meanwhile a stronger-than-expected rebound in China‘s exports in July and
August signaled the world‘s second largest economy may be stabilizing, which clearly bodes well for
Mongolia‘s resource exports and its economy. Mongolia remains heavily reliant on foreign direct
investment while experiencing a heavy decline.
Of the 16 positions in the portfolio, eight lost ground, two remained unchanged, four gained, and
two new securities were added. FeOre Ltd. gained 18.42 percent to AUD 0.045, although remains at
an 82 percent discount to its December 2011 public offering price of AUD 0.25. Aspire Mining Ltd.
fell 14.75 percent to AUD 0.05. Erdene Resource Development Ltd. fell 20 percent to CAD 0.10, or
half the price paid by Teck Resources several months ago during a private placement of CAD 1

million (at CAD 0.20 a share). The Mongolian Stock Exchange (MSE) lost 5.23 percent for the month
of August and has fallen 23 percent year to date. Following a decline of 32 percent in July,
Turquoise Hill Resources recovered 29 percent in August, although it has subsequently lost 13
percent month-to-date to USD 4.52.
Source: Khan Investment Management Ltd.
PRIVATE EQUITY GROUP HELPS MONGOLIAN FIRMS CONNECT WITH OUTSIDE WORLD
In a country rich in minerals Batsaikhan Jamichoi provides a rare commodity—capital financing.
"The main idea is financing into sectors with high growth potential. We help them find additional
financing and strategic partners to help further business development. We also help improve
corporate governance and general management practice so these companies would become one of
the best performers in their sector. We function as a bridge," Jamichoi said.
Mongolian corporations still struggle to gain international financing. Companies have mostly relied
on organic growth, investment from multilateral lenders such as the World Bank's International
Finance Corp, or short-term bank loans with annual interest rates around 20 percent. The local
stock market has been bedeviled by seesaw returns, low liquidity and arduous listing rules. The
market's index of 20 leading companies is down 23 percent for the year. There are few funds
operating in Mongolia and daily trading turnover ranges from USD 20,000 to USD 60,000.
The driver behind plans to improve this is the Mongolian Stock Exchange (MSE). In partnership with
the London Stock Exchange they have been upgrading their trading platforms and stripping out
procedures that were hindering development. As part of a new securities law to come into force in
2014, the government will allow a greater range of investment products to be developed, provide a
stronger framework for dual listings and permit depositary receipts to attract foreign investors. The
MSE is also considering encouraging larger firms to dual list partly in Mongolia rather than
exclusively overseas. Complementing the securities law will be rules to allow the establishment of
custodian banks making it easier for institutions to trade the market. Mongolian-listed firms will
then also be able to trade on tracker funds such as the FTSE Frontier Market Index.
For local brokerages, the impact of new market entrants is a cause for concern that locals with
connections and an understanding of the market would give them an edge over others. For
investment firms like Jamichoi's, Mongolia Opportunities Fund, a functioning stock market will
provide an important exit strategy for his fund's investments in the years ahead.
Source: Southern China Morning Post
FRIENDS OF MONGOLIA FUNDS BUSINESS TRAINING IN KHUVD
A local Khuvd Aimag organization ran training on business management, organization, and
accounting in Jargalant Soum, Khuvd Aimag from 23 to 24 May.
The Sain Tus Center gathered 25 participants for its training, which was funded through a USD 250
grant from Friends of Mongolia‘s annual small grant awards for sustainable community
development. The project fulfilled its goal to provide training for low-income families in Jargalant
that run their own businesses, and focused on increasing income through better management and
marketing. The trainees all managed businesses related to tailoring or the production of felt
products.
Prior to submitting their proposal for this project to Friends of Mongolia, Sain Tus consulted the
owners of many small businesses in Jargalant to ask them what type of training they would like to
receive, if possible, and Sain Tus sought to meet their needs through this grant award from Friends
of Mongolia.
Source: Friends of Mongolia
CENTERRA'S KUMTOR MINE STORMED IN PROTEST; KYRGYZSTAN DECLARES STATE OF
EMERGENCY
As many as 2,000 protesters stormed Centerra Gold Inc.'s mine in Kyrgyzstan last week on Friday,
prompting the central Asian country's government to declare a state of emergency.
Protesters hurled rocks during clashes with police Friday that injured 50 people and ended with 80

arrests, the Associated Press reports, after nearly a week of protests that saw demonstrators cut off
the main road leading to Centerra Gold's Kumtor mine. Some protesters are demanding the
nationalization of the mine, which accounts for a hefty 12 percent of the country's economy. Others
called on Centerra to provide more in social benefits, demanding such things as the construction of
a kindergarten, development of roads and water pipelines, or jobs at the mine, Reuters reported.
Based in Toronto and listed on the TSX, Centerra has two primary gold mines: the Kumtor mine in
Kyrgyzstan and the Boroo gold mine in Mongolia. The company's annual revenue exceeds USD 1
billion.
On Thursday, protesters cut off the power supply to the mine, prompting Centerra to issue a
warning that it could see its financial results impacted by the demonstrations. The company called
the protests "illegal." By Friday, riot police were using stun grenades and rubber bullets in efforts to
disperse some 2,000 protesters who attempted to storm the mine's office. Thirteen police were
wounded and a bus was set on fire. Kyrgyz President Almazbek Atambayev imposed a state of
emergency and a curfew on Dzhety Ohuz district until June 10, Reuters reports.
"Those who broke the law must be brought to justice in line with the full severity of the law,"
Atambayev said.
Source: Huffington Post
PWC REVENUE GROWTH SLOWS
PricewaterhouseCoopers' (PwC's) annual global revenue rose 4 percent, the giant accounting firm
said Tuesday, continuing what appears to be slower growth at the ―Big Four‖ firms as the economy
continues to struggle world-wide.
PwC posted global revenue of USD 32.1 billion in the fiscal year ended 30 June, up 44 percent from
the previous year when foreign-exchange rates are held constant. Last year, the firm posted year-
to-year growth of 8 percent. PwC's slower revenue growth follows that of Deloitte Touche
Tohmatsu. In September Deloitte announced fiscal 2013 revenue growth of 3.5 percent in U.S.
dollars, to USD 32.4 billion—below the 8.6% year-over-year growth it posted in fiscal 2012. The
other two Big Four firms, Ernst & Young and KPMG, haven't announced their fiscal 2013 revenues.
Geographically, revenue growth was strongest in emerging markets, because of economic growth
that continues to outpace expansion in more-established economies, PwC said. Both PwC and
Deloitte also continued a trend in recent years of seeing their consulting businesses grow much
faster than their core audit businesses—the product of strong demand for consulting compared with
a maturing market for traditional audits. PwC also cited "the increasing strength of the PwC brand"
in strategy consulting and a strong performance by its deals practice.
Revenues from PwC's advisory business rose 7.6 percent, compared with 1.4 percent for auditing.
Deloitte's consulting revenue rose 7.1 percent, and its financial-advisory revenue was up 4.7
percent, compared with growth of 0.5 percent in auditing. PwC also said it plans to invest more
than USD 1 billion over the next three years to develop its operations around the world, with
particular emphasis on emerging markets and boosting businesses such as cyber security and risk
assurance.
Source: Wall Street Journal
DAVIS RAISES $1BN FOR MINING COMPANY
Former Xstrata PLC chief executive Mick Davis‘ new mining company has raised USD 1 billion from
trading company Noble Group and private equity firm TPG.
Davis‘s new outfit, called X2 Resources, will receive USD 500 million each from Noble and TPG. X2
has been created to ―seek value creating opportunities in the mining and metals sector‖. Analysts
say Davis is keen to re-create the success of Xstrata which he built from scratch into a USD 50
billion company. Davis, together with former Xstrata Chief Financial Officer Trevor Reid, as well a
team of executives ―responsible for the creation of Xstrata‖ would lead the X2 team, according to
the company.
Davis and Reid left Xstrata shortly after Glencore PLC's takeover of the company earlier this year, in
addition to a host of other executives. Noble already has mining and metals interests, in addition to

its trading portfolio, while TPG has USD 55.3 billion of assets under management.
Source: Mining Journal
ECONOMY
EPCRC AUGUST MACROECONOMIC OVERVIEW
Mongolia is facing a currency-devaluation inflation spiral. The MNT fell to MNT 1722 per U.S. dollar
on 12 September, although has recovered since to around MNT 1,600 due to some recent weakness
in the dollar. Inflation reached 9.4 percent in the year to August, and threatens to exceed double
digits in months ahead, especially as petrol importers recently wrote to the government requesting
to increase their prices.
Commentators have generally attributed this bout of instability to the decline in foreign direct
investment and lack of confidence in the Mongolian economy, triggered to some extent by the
introduction of the May 2012 Strategic Foreign Entities Investment Law. However, one overlooked
factor in the recent inflation spike has been a considerable increase in the money supply. In the
year to August, the money supply (M2) increased by 20 percent. Although Mongolia has a history of
hefty increases in the money supply, the yearly rate of increase was only 12.8 percent as recently
as April. This expansion to M2 is likely due to infrastructure spending from the Chinggis bonds and
off-balance sheet expenditure such as the price stability program and the mortgage rate subsidies
by the Bank of Mongolia.
To some extent an increased money supply will improve growth by devaluing the domestic
currency, thereby encourage exports and increasing the currency inflow, and supporting domestic
manufacturing. However, it is important that the Bank of Mongolia maintains its national
stabilization policy and not exaggerate exchange rate depreciation. The rise in domestic costs and
prices from the increased money supply also negatively impacts on the foreign currency account
and thus induces further devaluation. It should be noted that a continuing inflation process is in
principle possible only with increasing money supply. The monetary policy of the Bank of Mongolia,
therefore, has a considerable influence on the real purchase power of the citizens. Although it
pursues an anti-cyclical financial policy by supplying money to support the real economy, it must
keep the balance and not exceed the limit of the production capability.
Source: EPCRC
WORKING GROUP‟S CONCLUSION ON THE ECONOMY
A working group established by the Parliament Speaker in April presented its conclusion to the
Economic Standing Committee.
External economic environment and relations: A solution is needed for aggregated issues on foreign
relations, foreign investment, and major projects due to an unclear and unstable external economic
environment. The trade deficit might increase due to the dependence on imported goods and the
mining sector. Financial instability might occur due to the growing current account deficit and
growing external debt. Mongolia‘s credit rating fell, and there is some difficulty seen in debt
repayment as the country falls behind on some repayments. Mongolia's dependence on a few
markets, a few commodity exports, and over-reliance on imported goods is creating difficulties.
Economic cooperation with China, however prevails. ―Third neighbor‖ partners have perceived the
Mongolian economy as risky and unstable for investment.
Foreign Direct Investment (FDI): FDI experienced a marked decrease due to legislative changes for
investment in contrast to steady increase since 2000. Poor communications have dissuaded
investors. 85 percent of FDI was for the mining sector, demonstrating a strong concentration in that
sector. More attention needs to be paid to the origin of FDI, as China leads the pack followed by
offshore tax havens such as Netherlands, Luxembourg and Virgin Islands. Despite the forecast of 13
to 16 percent growth, prevailing unclear condition of the economy is being perceived as instability.
If Oyu Tolgoi starts operating in June, substantial growth will be resulted.
Macro-economic condition: Receipt of pre-payments from unrecognized revenue and mass

distribution to the general public has created a budget deficit. Despite the forecast for 13 to 16
percent growth, the prevailing conditions of the economy are unclear. If Oyu Tolgoi restarts
development by June, the country could expect substantial growth. Bond investment might add to
inflation, and government subsidies may create pressure on the state budget. Expanded budgetary
expenditures put risk on economic growth, and overly optimistic budgetary planning from last year
could result in a 6 to 8 percent deficit.
Source: Business-Mongolia.com
MONEY SUPPLY INCREASES 20%
The volume of money circulating increased 20 percent year-to-date in September.
Money supply was focused on keeping jobs and supporting some industries, resulting in stable
economic activity and job availability, noted economists. For example, the Bank of Mongolia
provided MNT 2.9 trillion for the government-backed 8 percent mortgage program and other
initiatives since the start of the year. Money supply has increased by 40 percent a year, on average,
over the last three years. However, much of the money supply was used for welfare purposes rather
than to stimulate the economy.
Source: Zuunii Medee
INTEREST RATES ON LOANS NOT LIKELY TO FALL, SAY BANKS
Loan interest at commercial banks is not likely to reduce in coming years, said 54 percent of banks
that participated in a survey administered by the Bank of Mongolia.
The central bank surveyed high-ranking officials from 12 banks on their thoughts regards interest
rates for savings and loans. For interest on savings, 44 percent of banks said interest on savings was
too high, and 54 percent of banks said they would not have interest rates for savings follow
inflation. Research results on socio-economic and banking conditions throughout the country
showed that 70 percent of citizens think that the interest rates for loans are too high. Mongolia‘s
small banks agreed interest rates on loan were too high, while larger banks agreed interest rates
were at the correct level. Of those surveyed, 44 percent of citizens said the interest rates for
savings were too low, 30 percent said they were adequate.
The Bank of Mongolia concluded that commercial banks would not likely lower interest rates in the
coming years. Figures from August figures showed that banks had collected a sum of MNT 14.5
trillion in assets, not counting loans from the central bank and personal savings.
At the end of August, the balance of loans had increased 46.8 percent, totaling MNT 9.7 trillion.
Breaking down the figure of loans, 16.3 percent was used for the government‘s Price Stability
Program and the government-backed 8 percent mortgage program. During the same period, savings
totaled MNT 5.4 trillion, an increase of 21.6 percent year-on-year. t said they were sufficient, and
16 percent said they were too high.
Source: Unuudur
STATE PROPERTY CONCESSIONS PROJECTS REVEALED
A list of key development projects that will fall under the scope of state property concessions is
expected for public release, according to government sources.
The projects span ten government ministries, ranging from the construction of a new power plant to
specialty hospitals. Included in the list is an overview of the selection process and an identification
of whether a contract will be awarded through a tendering process or direct contracts. Those
projects identified under the Ministry of Roads consist of railways, roadways and airport
improvements. In total, 2150 kilometers of rail and 1,050 kilometers of road have been planned
with the majority of the work being awarded directly through Government contract. Uniquely, each
of the airport projects that have been outlined in this list will be awarded through a tendering
process. This includes the renewal of eleven provincial airports and improvements to management
functions at the current Chinggis Khaan International Airport.
The Ministry of Mining was also listed among the ten ministries with projects including the
construction of trade service centers along the Chinese border and the construction of quality

control laboratories for oil production in Selenge and Dornod Aimags. There are also a number of
projects listed under the Ministry of Manufacturing and Agriculture that are directly related to the
expansion of Mongolia‘s mining sector. These include the construction of two coking coal plants
with a combined capacity of three million tons per year, a copper smelting plant with an annual
capacity of one million tons and an iron ore processing plant with a capacity of 4.5 million tons per
year.
Source: Mongolian Investment Banking Group
BELARUS BANS SMALL LIVESTOCK IMPORTS FROM MONGOLIA
Belarus has restricted the imports of animals susceptible to foot-and-mouth disease from Mongolia.
Incidents of foot-and-mouth disease were registered in Dornod, Mongolia, according to the World
Organization for Animal Health.
Belarus introduced temporary restrictions on the import of live animals susceptible to foot-and-
mouth disease, meat products and other raw materials made from susceptible animals. Restrictions
cover imports of hides and hoofs, offal, wool, lambskin, semen, embryos, milk and dairy products
made from susceptible animals that include livestock, small cattle, wild animals, hunting trophies,
fodder and feed supplements for animals, including supplementary feed and ready-made feed for
dogs and cats that were made from raw materials originating from Dornod, Mongolia, as well as
used equipment to breed, slaughter and gut animals. Belarus also canceled all previously issued
permits for the import of the above-mentioned products from the region.
Foot-and-mouth disease is an infectious disease that affects animals and human beings. The virus
causes a high fever, blisters inside the mouth and on the feet. Humans can be infected with foot-
and-mouth disease through contact with infected animals or consumption of infected animal
products, but this is extremely rare. The disease cannot spread from humans to humans.
Source: Law.by
MONGOLIA TO LAUNCH WOOLEN INSULATION PRODUCTION
The Mongolian Wool Products Manufacturers Association has plans to move production of wool for
building insulation to Mongolia from South Korea, said the head of the organization.
Mongolia is working with experts from Japan to determine the equipment needed to begin
manufacturing in Mongolia, said B. Ganbat. In addition to the domestic market, Japan is a major
target for export.
―Japan has the highest usage of insulation material made of sheep wool,‖ he said. ―Japanese
people live in wooden buildings and insulate them with wool. Fiberglass insulation has been off the
market in Japan since 2000 because of the risk of health hazards... Mongolia has the raw materials
ready for manufacturing and we are in need of insulation material.‖
Source: UB Post
PEACE BRIDGE TO RECEIVE REPAIRS IN OCTOBER
Ulaanbaatar has budgeted MNT 200 million for repairs to Peace Bridge this month.
Plans for repair come a year after the city received urgent quests. Repair work to the bridge was
last employed in 2005, when workers repaved the bridge. The bridge currently has a wooden
column supporting the southern edge of bridge that was placed one year ago.
Officials have cited overloaded trucks for the damage to the bridge. The bridge has a maximum
load capacity of 15 tons.
MINING FIRMS MAKE WAY FOR SHOOTS OF GREEN ECONOMY
Travel 13 kilometers north of Ulaanbaatar's city center and you will find a new front in Mongolia's
battle to develop the country: a gigantic tree nursery.
Operated by international tree-growing specialists Tree Global, it is capable of producing half a
million trees a year with the potential for many more, and forms part of a newly conceived effort
to put the country's environment at the forefront of policymaking. The challenge will be in

encouraging a mining-focused economy to adopt measures that do not contribute to the bottom
line.
"Because the environment was overlooked, unfortunately we have inherited a lot of problems,"
Minister of Environment and Green Development Sanjaasuren Oyun said. "While the country is
overall in a relatively good environmental position, we face air pollution, river pollution, soil
pollution, with mining, especially the large number of small-scale operations inherited from the
1990s. [There are] 600-plus sites that are degraded."
The impact is keenly felt in Ulaanbaatar, where a World Bank study found residents' exposure to
harmful PM2.5 particles was, on average, 10 times higher than Mongolian air quality standards.
Oyun has introduced a package of reforms that includes a series of incentives and penalties for
misuse of water and waste disposal as well as tax benefits for firms investing in green technology. It
also includes the introduction of environmental audits for mining projects and restrictions on mining
activities. Oyun's goal is to reach European Union-level compliance.
Dale Choi, who runs Independent Mongolian Metals & Mining Research, said that in recent years
more than 400 mining licenses had been canceled without compensation because of proximity to
water sources or newly designated protected areas. The government will also be diverting a share
of revenues raised from water, hunting and forestry tariffs to local authorities for investment in
environmental protection. Ultimately, the goal is to spend at least 1 to 2 percent of annual gross
domestic product on a green economy. The government hopes to work with the private sector and
is launching a series of potential public-private partnerships, including the construction of
reservoirs and dams to improve Ulaanbaatar's water supply and work on waste-water facilities.
Source: South China Morning Post
WEATHER CAN'T COOL BOOM IN ULAANBAATAR
Some city centers are defined by geographical boundaries. Others are marked by ring roads and
highways. In the Mongolian capital Ulaanbaatar, it is delineated by the central heating grid.
Asia Pacific Investment Partners (APIP) acquired its own cement factory, Central Asian Cement, in
2008 in an attempt to capitalize on the rapid urbanization of the capital. That move was swiftly
followed by the founding of Mongolian Properties Construction, which allowed APIP to target
business opportunities outside of its own developments. The company starting winning bids for a
wide range of projects including car showrooms and offices.
The city has become a giant construction site. In 2011, the government announced a "100,000
homes" construction project to be supported by financing for first-time buyers. Mortgages at 8
percent interest issued by the government-backed Mongolian Mortgage Corp (MMC) were made
available to buyers of units less than 540 square feet in size. Outside the heating grid and main
water supply, residents rely on wells and rivers for water, and in winter burn foraged materials to
keep warm. As these can include discarded tires and construction materials, the city is blanketed
with an acrid black cloud of pollutants during winter. Air-quality standards are often the worst in
Asia.
"Very few real estate developers in Mongolia give serious consideration to the well-being of their
prospective occupiers," said Bayar Zorigt, the development director for Mongolia Growth Group
Ltd., a Canadian-listed financial company and real estate developer. "The vast majority of the
construction these days is simply a skeleton with a cheap glass box around it, with minimal
amenities and services allowed for.‖
Empty shells are appearing in parts of the city, with access to capital a recurring concern for
companies across Mongolia. Lee Cashell, Director of APIP, has overcome this by selling equity. APIP
now has 60 shareholders who have 16 percent of the company. Cashell and his wife control the
remaining 84 percent. To grow further, Cashell plans an initial public offering in London or Hong
Kong within the next 10 months to raise USD 160 million. For now, he pre-sells his apartments,
shops and offices to fund construction.

SKYLINE OF TENTS, TOWERS SHOWS MONGOLIA INEQUALITY
Sat in a tent on the outskirts of Mongolia's capital, Norihil Gendenpil lives on the physical—and
economic—margins of a booming city filling up with skyscrapers. The 88-year-old grandmother still
worries daily about the rising cost of food for herself and 20 children, grandchildren and other
family members.
"Every morning the price goes up," she says, sitting in her yurt, a traditional felt tent used by
Mongolian nomads for generations. "But I don't want to ask anything of my daughters, since they
themselves are struggling to make ends meet."
Mongolia's economy grew 12.3 percent in 2012 after expanding 17.5 percent the year before. But
rising inequality in the cities along with environmental damage in rural areas have stirred popular
discontent. President Tsakhia Elbegdorj, re-elected in July, faces mounting pressure to balance the
demands of powerful multinationals and its own people. It is also dealing with uncertainty
prompted by drops in commodity prices and falling demand in the key market of neighboring China.
Growth has slowed in the first half of the year and foreign investment has plummeted by 43
percent.
The mining wealth has yet to flow to the fringes where Gendenpil lives on a monthly pension of MNT
180,000 tugriks. She relies on government food-stamps—of USD 5.90 a month for adults and half
that for children—to buy the Mongolian staples of meat and dairy. Some of Gendenpil's younger
relatives have already given up on sharing in their country's boom. Enkhnyamaa Purevsuren, 28, had
been earning USD 310 a month in a leather-goods factory before joining her sister in Malaysia,
where she worked as a nanny. But two years later, at the end of 2012, Gendenpil called her and
other family members back to Mongolia, unnerved by rumors involving the Mayan calendar that the
world was about to end. Since then Purevsuren has been hoping to make her way back to Malaysia.
"I haven't managed to save any money," she says. "I don't have a place to live and salaries are very
low."
Source: Associated Press
MONGOLIAN FLUORSPAR: A NEAR-TERM SUCCESS STORY?
Fluorspar, although slightly further down the list of exports out of Mongolia, is seeing the
beginnings of a more important role in the Mongolian economy.
Mongolia produced 420,000 tons a year in 2012, according to the United States Geological Survey
(USGS). It is the third-largest producer in the world, with most of its supply feeding China and
Russia. In fact, insufficient transportation infrastructure means Mongolia‘s only markets for
fluorspar are these two countries, largely via the Trans-Mongolian Railway, which connects China
(at Zamyn-Uud) and Russia (at the Altanbulag port). While Mongolian production has recently
stuttered as global demand has fallen, most market commentators believe that the market will pick
up.
Vancouver-based Prima Fluorspar signed a letter of intent in September with New York, United
States-based fund Firebird Management—which holds a 99.8 percent majority stake in Berkh Uul
JSC, owners of the Delgerkhan fluorspar mine. The deposit holds almost 10 million tons of ore
grading 33.47 percent Calcium fluoride.
―Delgerkhan is one of the largest in the world,‖ said James Passin, fund manager at Firebird, who
has been developing the mine since 2011. ―There is fluorspar that we would intend to produce
through an open-cast mine. The rest of the deposit will be produced by underground mining by
rehabilitating the existing shafts,‖ he said.
The next steps for the project are to dewater and remediate the existing mine infrastructure, with
a 2014 fourth-quarter target date for first production, at a run rate of 120,000 tons a year.
Meanwhile, Mongolia Minerals Corp. is developing its Dai Uul project in Dornogobi Aimag. The
project is not as advanced as Firebird‘s, but it recently increased its reserve estimation. Both Passin
and Rodriguez de Castro agree that developing a project in Mongolia has cost advantages.
―We have a huge cost advantage on the existing infrastructure and mining assets, which will allow
us to get to production without having to invest a lot of capital, compared to a lot of other large
fluorspar deposits,‖ Passin said.

Source: Industrial Minerals
COLLAPSE OF SAVINGS BANK LEADS TO CALLS FOR BETTER REGULATION
It came like an unseasonal Siberian wind from the steppe. Anointed the "Best Managed Bank in
Mongolia" by The Asian Banker magazine in April this year, the collapse of Savings Bank, the
country's fifth-largest lender, only three months later, has led to calls for further regulation and
oversight as the country upgrades its financial services.
Branded with a negative outlook by ratings agency Moody's, the banking sector faces challenges, "in
managing what will likely be a period of rapid loan growth in an economy that is increasingly
exposed to commodity-driven boom-bust cycles", said Graeme Knowd, Moody's associate managing
director of financial instruments group at a recent investment forum in the Mongolian capital of
Ulaanbaatar. According to Moody's, overall loan to deposit ratios had climbed to 89.5 percent in
September last year from 65.7 per cent in late 2010.
Golomt Bank, one of the big four banks, which combined hold 77 per cent of the nation's deposits,
is late in filing its 2012 end of year accounts. PricewaterhouseCoopers has recently been appointed
as a second auditor to help review the bank's off-balance-sheet risks.
"Overall asset quality is under pressure due to the volatile environment," says Chikako Horiuchi, a
Mongolian banking analyst at Fitch. She estimates 30 percent of bank loans are in foreign
currencies, placing additional pressure on borrowers given a 17 percent drop in the tugrug against
the U.S. dollar during the past month.
INCREASING REGULATION AND CHINA‟S SLOWING ECONOMY THREATEN DOMINANCE OF COAL
2013 has brought a fresh threat to coal: new action to restrict the growth of coal-fired power
plants, a leading contributor to the carbon dioxide emissions that scientists say cause global
warming. The action has come from the United States—where the Environmental Protection Agency
(EPA) has announced rules to limit carbon emissions from new coal-fired plants—as well as from
multinational banks and even China, where regional pilot carbon markets began this year and last
month its own curbs on pollution were announced.
A quarter of the world‘s annual coal demand comes from Chinese power plants: any shift—whether
from slowing economic growth or from China‘s own efforts to curb coal use to improve
environmental quality—would reverberate through the whole industry. The rules announced by the
EPA on 20 September will cap emissions at 1,100 pounds of carbon dioxide per megawatt hour for
new coal-fired power plants, requiring them to be about 40 percent cleaner than current plants. As
for China, its increasing coal appetite has been ―one of the most unassailable assumptions in global
energy demand‖ say analysts at Citi—but they now challenge that assumption, saying the country‘s
demand could even peak by 2020. ―
Put simply, if non-coal generation growth outstrips power demand growth, which is already slowing,
coal use is set to plateau or decline,‖ they say.
Overall, China‘s economy is still forecast to grow more than 7 percent this year, which implies a
rise in absolute tonnage of coal consumed for the foreseeable future. Many analysts and coal
suppliers reject the idea that ―peak coal‖ is approaching China and say in any case other Asian
economies, such as India, will increase their demand for many more years. A crucial variable,
according to mining analysts at EY, is China‘s capacity to develop its own large shale gas reserves.
But a lack infrastructure and expertise makes sudden conversion unlikely, say analysts. Goldman
Sachs forecasts that seaborne coal exports will grow only at 1 per cent until 2017, and could peak in
2020, compared with the 7 per cent growth enjoyed from 2007 to 2012.
Source: Financial Times
AUSTRALIA RAISES CHINA IRON ORE IMPORT FORECAST
Australia‘s official commodities forecaster has increased its expectations for Chinese iron ore
imports, one of Mongolia's lesser mineral exports, which is sees reaching 1bn tons by 2018.
In its latest quarterly report the Bureau for Resources and Energy Economics (BREE) said it expected

China to import 872 tons of the steelmaking material in 2014, an 8.3 percent increase on its
previous forecast made in June.
―Demand is being propelled by the high level of steel production due to the growth in commercial
and residential construction,‖ BREE said in the report.
In spite of strong demand from China, iron ore prices were unlikely to rise excessively because of
increased supply from Australia, the world‘s biggest exporter of seaborne iron ore. As new supply
from Western Australia comes on stream the government forecasting agency expects Australia
exports to rise 17 percent to 669 million tons.
Mining companies BHP Billiton, Fortescue Metals Group have ploughed billions of dollars into new
projects to boost output of the commodity. On Wednesday, Rio Tinto PLC opened new port facilities
in the Pilbara, part of an USD 11.6 billion project to lift annual iron ore output from 220 million
tons to 290 million tons. Andrew Harding, the head of Rio Tinto‘s iron ore business, said the
company was very confident about Chinese demand and the transition from low-rise
accommodation to more ―steel-intensive structures like skyscrapers.‖
Benchmark iron ore prices have rallied 20 percent to USD 130 a ton since June as Chinese steel
production surged on the back of stimulus aimed at stabilizing the economy. Analysts now expect
annual Chinese steel output to reach 755 million tons in 2013, up from expectations of 700 million
to 725 million tons at the start of the year. Over the three months to September the iron ore spot
price averaged USD 122 a ton, up from USD 118 in the previous quarter. BREE also forecast
Australia‘s thermal coal exports to increase at an average rate of 8 percent a year to 271 million
tons in 2018.
―The growth is expected to be supported by increased demand for exports from China in the short
term and then from India later,‖ it said.
POLITICS
NEW INVESTMENT LAW PASSED
Parliament passed the Investment law during Thursday`s session meeting with 83 percent approval.
The newly approved law has made various amendments and changes to a groups of laws. These
include the cancelation of the Foreign Investment Law, the Law on the Regulation of Foreign
Investment in business entities operating in sectors of strategic importance. Further amendment
were made to the State Registration of Legal Entities, the General Law of Taxation, the Entity and
Organization Income Tax Law, Value-added Tax Law, the Law on Customs Tariffs and Taxes, the
Mineral Law, the Special Permission for Legal Entities, the Petroleum Law, the Law on Concessions
and draft laws relating to compliance regulations with the Investment Law.
According to the Investment Law, if the investment proposal is made above 15 billion MNT, four
types of project tax impositions will be stabilized.
However the investment amount and period will depend on regional factors.
For instance, a 300-500 billion MNT investment proposal to build a factory in Ulaanbaatar or nearby
region will mean the investor will receive an up to 10 years tax stabilization certificate.
If this amount of investment is made in the western region, a 13 year tax stabilization certificate
will be given.
The regions will be divided into Ulaanbaatar, Central, Khangai and eastern and western regions in
the Investment Law regional charter.
Source: news.mn
INVESTMENT FUND LAW PASSED
Parliament has discussed and passed the proposed draft laws on the Investment Fund, related
amendments into the Entity and Organization Income Tax Law, laws on companies and the Stock
Market Law and Innovation Law during Thursday‘s regular session meeting.
MP B.Garamgaibaatar introduced the summaries produced by the Standing Committee on Economy.

The Standing Committee meeting held the final discussion of the proposed draft laws summarizing
the wording and principal changes as a result of a poll during the first discussion at the session
meeting.
According to the Investment Fund law, two different Investment Funds are available: a Mutual
Investment Fund and a Private Investment Fund.
The activity period of an Investment Fund should be up to 10 years no matter the type of
Investment Fund.
Source: news.mn
AGENDA FOR AUTUMN SESSION OF PARLIAMENT APPROVED
Parliament approved an agenda for the autumn session on September 23.
Debate is scheduled for the 2014 budget, the 2014 budget for the Human Development Fund (HDF),
the social insurance fund for 2014, and on border checkpoints.
Also to be considered consider are draft amendments to for the court structure, court
administration, the 2013 budget, state auditing, state stamp duties, geodesy and cartography, and
the government structure. Other pieces of legislation to be submitted are revisions to legislation on
civil health insurance, the protection of cultural heritage, petroleum, and land usage and rights.
Parliament will also reviews new resolutions for basic directives on state fiscal policy for 2014, mid-
term green development plans, and state policy for mineral extraction.
Source: Montsame
PRIME MINISTER: BUDGET AMENDMENTS ARE CERTAIN
Budget amendments will inevitably have to be made for 2013, said Prime Minister Norov
Altankhuyag during his weekly 30-minute address to the press on 6 September.
The premier made his announcement amid economic uncertainty, exports decline amid gains in
imports.
Source: News.mn
US TO FINANCE $5.1M OF DEVELOPMENT PROJECTS
Minister of Economic Development Ts. Batbayar and the U.S. Ambassador Piper Campbell signed a
cooperation agreement between the governments of the United States and Mongolia that will make
available a USD 5.1 million finance supplement for projects on 26 September.
The finance supplement will be spent on projects to improve government accountability, the
strength of civil society and administration reform nationwide and specifically in the countryside for
better results.
―The U.S. government has increased the help for development in Mongolia year on year,‖ said
Campbell. ―The governments of Mongolia and the United States signed an agreement on
transparency in matters related to international trade and investment in New York last week. This
is clear evidence that the economic cooperation between the two countries has strengthened.‖
U.S. government aid to Mongolia totaled USD 230 million via the U.S. Agency for International
Development since 1991.
Source: News.mn
ELBEGDORJ CALLS FOR RENEWED DEVELOPMENT EFFORT WITH CLOSE OF MDGS
President Tsakhia Elbegdorj appealed to the United Nations that development efforts should not
end along with the close of the Millennium Development Goals (MDGs).
Elbegdorj gave a national report on its MDGs, a set of eight anti-poverty targets to be reached by its
deadline of 2015, suggests that more still need to be done.
Over 70 million people worldwide join the middle class annually. According to the president, the
MDGs have improved the lives of billions of people.
"The world has reached poverty reduction targets—in some places, even ahead of the proscribed
deadline,‖ said the president. He added, "Rather than seeing 2015 as the end, we should view it as
a beginning of new era," he said. "In this era, we should build on our successes, attend to gaps and

meet emerging challenges."
Talking about challenges ahead, he said over 200 million people are jobless, over 50 million
children are not in school; and one out of eight of our fellow citizens still go hungry, whereas over
900 billion US dollars are earmarked for military expenditures every year.
"Only a fraction of that (military expenditure) is spent on health care and education. Such a state of
affairs should not be tolerated," he stressed.
Sourced: Global Times
ELBEGDORJ MAKES STATEMENT ON NUCLEAR DISARMAMENT
President Tsakhia Elbegdorj reaffirmed Mongolia‘s commitment to nuclear disbarment, saying it
would like to act as a catalyst for nuclear disbarment for the region at the 68th Session of the U.N.
General Assembly on 26 September.
―It is clear evidence that even a small country can make an effort to build a nuclear free world,‖
said Elbegdorj. He added, ―Mongolia is seeking to cooperate with Northeast Asian countries on
securing the region as a non-nuclear weapon zone as a country that has had experience of securing
its own security using democratic politics and diplomat ways.‖
Representatives from the governments of 15 countries, including Mongolia, Iran, Japan, Austria,
Cuba, Nigeria, urged for immediate action to remove nuclear threats and accelerate actions for
nuclear disarmament. Japanese Premier Shinzo Abe said a focus on the ban of nuclear weapons was
necessary while Iran‘s new president, Hassan Rouhani, said the official stance for Teheran was that
it needed nuclear energy to keep up the pace of development with the rest of the world.
Source: News.mn
MONGOLIA SIGNS THE ARMS TRADE TREATY
Minister of Foreign Affairs Luvsanvandan Bold signed the Optional Protocol of the U.N. Convention
against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment and the Arms
Trade Treaty (ATT) during the 68th Session of United Nations General Assembly on September 24th.
The Arms Trade Treaty is a multilateral treaty that regulates the international trade in conventional
weapons, from small arms to battle tanks, combat aircraft and warships that have not entered into
force. The United Nations General Assembly approved the Arms Trade Treaty (ATT) in New York on
28 March, based on demands for a new international law to set clear rules for all global transfers of
weapons and ammunitions. It is designed to secure world peace and safety. As of 25 September, 108
states have signed the ATT, with Mongolia becoming the 86th country to sign.
Mongolia joined the U.N. Convention against Torture in 2002.
Source: News.mn
DIPLOMATIC RELATIONS ESTABLISHED WITH SURINAME, SIERRA LEONE
Mongolia established the diplomatic relations with the Republic of Suriname and the Republic of
Sierra Leone in New York 27 September.
Under a mutual aspiration to develop and strengthen the friendly relations and cooperation, the
two countries have agreed to adhere to the Vienna Convention on Diplomatic Relations, the U.N.
Charter and to international legal principles and norms. Joint statements were signed by Foreign
Affairs Minister Luvansandan Bold and counterpart Winston Lackin of Suriname and Samura Kamara
of Sierra Leone.
Source: Montsame
MONGOLIA, N. KOREA DISCUSS TRADE AT INTERGOVERNMENTAL MEETING
Mongolia made headway into trade talks at the ninth meeting of the intergovernmental consultative
commission for economics, trade, science and technical cooperation, held 23 to 26 September at
the Mansudae Assembly Hall in Pyongyang.
Co-chaired by Kh. Battulga, minister of industry and agriculture, and Ri Ryong Nam, the Korean
minister of foreign trade, the meeting brought together officials from both countries' ministries for
foreign affairs, road and transportation, labor, construction, urban development, mining, marine

transportation, commerce and railways. They concluded on bilateral cooperation, discussed ways
for developing trade, transportation, agriculture and physical cultural spheres, and agreed to
specific projects for the 2013-2014 action plan.
The countries signed a protocol of the intergovernmental commission meeting.
Source: Montsame
ABE HOSTS ELBEGDORJ AT HOME
Prime Minister Shinzo Abe held a meeting with Mongolian President Tsakhiagiin Elbegdorj at his
private residence in the Tomigaya district of Shibuya Ward, Tokyo, on Sunday afternoon.
Elbegdorj decided to stop by Tokyo on his way home from New York, where he attended the U.N.
General Assembly session. It is rare for a prime minister to host talks with a foreign leader at his
private residence.
During the one-hour meeting, Abe said Japan hopes to strengthen ties with Mongolia in politics,
security, economics, and cultural and personnel exchanges. Elbegdorj said he shares these hopes.
They discussed developments in East Asia, including the situations in China and North Korea.
Source: Japan Times
POLICE ON ALERT FOR COUNTERFEIT BILLS
Police have opened an investigation after learning of several attempts to circulate a fake MNT
20,000 MNT bank notes last week.
A task force has been appointed by police for the investigation. Police revealed that a large sum of
counterfeit tugrug bank notes were used in Sukhbaatar, Chingeltei and Songinokhairkhan districts.
Once civilian attempted to pay with a counterfeit note at a City Shop in Songinokhairkhan district.
Police have issued a warning that anyone attempting to distribute counterfeit bank notes will be
charged with a crime.
Source: News.mn
YOUTH FEDERATION LAUNCHES ANTI-CORRUPTION WEBSITE
The Mongolian Youth Federation has launched an anti-corruption website Avliga.mn for its campaign
against corruption in Mongolia.
The Mongolian Youth Federation has launched several campaigns against corruption, including those
with the slogans ―Young People Together against Corruption‖ and ―Anti-corruption: I Will Not Take
or Give Bribes.‖ The new website will report on corruption and bribery cases and will provide
information on individuals and groups working for transparency.
Source: News.mn
FORMER UB MAYOR UNDER INVESTIGATION
Authorities are opening investigation into former public authorities of Ulaanbaatar.
Former Ulaanbaatar Mayor Munkhbayar, ex-Chairman of City Council of Ulaanbaatar T. Bilegt, and
Former Head of Land office of Ulaanbaatar Ts. Sundui are being investigated by the Economic Crime
Combat Division of the Criminal Police Department. Officers said they are suspected of illegally
profited off of the sale of state-owned land and bribes. Also, officers said they would likely
investigate former authorities of the Ulaanbaatar Land Office, E. Ariungerel and D. Dashtsetseg.
Authorities were alerted when they found MNT 281 billion of land fees that should have been
transferred to the state accounts was missing. Investigations will be opened into 250 companies as
well as company heads that purchased the land, said authorities. One aspect of the case revealed
was when Tuushin LLC, a globalized transportation company, received 130 hectares of land valued
at MNT 14.3 billion at the Khonkhor depot of Bayanzurkh District for free in 2009, because of an
order from Munkhbayar. An unnamed source said more than 300 civil servants may be involved in
the case.
Source: Udriin Sonin

A 21- CENTURY SILK ROAD BETWEEN EAST AND WEST IS LONG OVERDUE
Over two millennia ago, the opening of the Silk Road in Asia had a transformative effect on trading
right across the world. This remarkable development played a crucial role in facilitating previously
unimaginable exchanges of goods, services, ideas and even culture across borders. In our
information age, new technology has—of course—revolutionized how these exchanges take place, by
dramatically accelerating communication speeds and broadening global interconnections.
Nonetheless, Asia continues to be at the crossroads of global trade today.
That much was clear during a recent City of London business visit to China and Mongolia. Our
trading links with these two countries will be critical to shaping our future as a trading nation in the
region, so it is vital we make the case for why the United Kingdom should be seen as their partner
of choice.
China and Mongolia—like many other developing nations—have recently experienced a relative
slowdown, as they tackle their own separate economic challenges and markets respond to
uncertainty over the U.S. quantitative easing program. That does not mean the United Kingdom
should scale back its engagement in the region. Far from it. Policymakers in both countries are
committed to delivering the market reforms needed to sustain growth rates that benefit the wider
population.
In Mongolia, the U.K. government recognizes the need to avoid the "resource curse" by creating a
business environment conducive to inward investment and sustainable growth. This presents
opportunities for London firms to work in partnership on developing banking, legal systems,
accounting standards, and professional services. Similarly, the British expertise in structuring,
financing and implementing major infrastructure projects with private sector participation through
private-public partnerships can help Mongolia. Its government has far-reaching infrastructure plans,
which have seen spending in this area increase 35 fold in the past ten years.
A new Silk Road, linking London to China and Mongolia is long overdue. London firms can help to
bridge the 5,000 miles that separate us by getting out there and showing the virtues of trade—just
like two millennia ago.
The author Roger Gifford is lord mayor of the City of London. He visited Mongolia in September.
Source: City AM
IAAC SHOWS NO INTEREST IN GOBI-ALTAI CORRUPTION CASE, SAYS DP OFFICIAL
The Independent Authority Against Corruption has shown signs that it may not pursue a corruption
allegation against two MPs in Gobi-Altai Aimag, said the head of the Democratic Party for the
province.
Party head O. Amgalanbaatar said he has heard no word from the IAAC since reporting MPs J.
Enkhbayar and Ts. Dashdorj for accepting bribes of MNT 450 million from Altain Khuder LLC in
December 2012. Enkhbayar allegedly accepted the bribe via his non-government organization Altain
Erin San. Mongolian law prohibits MPs from accepting any political donations from mining
companies.
Amgalanbaatar also said that audits into the two MPs have shown that they spent MNT 1.7 billion of
funds that was meant for their electoral district, said.
Source: Udriin Sonin
SHANGHAI‟S NEW ZONE: LOTS OF HYPE, LITTLE DETAIL
The anticipation for China‘s new free trade zone was at fever pitch before its release last weekend.
Homes next to the zone in Shanghai‘s far-flung suburbs are sold out. The stocks of companies
expected to benefit have surged, some rising by more than 300 per cent over the past month.
Economists have hailed it as China‘s most significant reform push in more than a decade.
Just don‘t ask any of the homebuyers, investors or analysts what the free trade zone will entail
exactly, because, for now at least, they are all still mostly in the dark.
―This should be a huge deal for China. Shanghai officials previously thought this was a city
initiative. Now, it‘s a national initiative,‖ said Liu Ligang, an economist with ANZ. ―Premier Li
[Keqiang] has taken it over and wants to use the zone as an experiment to fast-forward domestic

service sector liberalization and capital account liberalization.‖
These steps are all part of China‘s long-term blueprint as the government tries to shift the economy
away from a reliance on investment and towards more innovative industries. But it is tough to
overcome entrenched bureaucratic opposition to these reforms and risky to implement them on a
nationwide basis.
The hopes for reform are a lot to fit into a small physical space. The free trade zone will
encompass three locations: Pudong airport, the Yangshan shipping port and the Waigaoqiao bonded
logistics zone. Altogether, the three are just 28 sq km and they are as much as an hour‘s drive from
Lujiazui, Shanghai‘s main financial district.
The Hong Kong-based South China Morning Post reported this week that the government would also
suspend its Internet controls—the ―great firewall of China‖—in the free trade zone, giving people
access to sites blocked elsewhere in the country, including Facebook and Twitter. There are no
residents in the zone – only offices, factories and hotels – but such a move would still be a strong
symbol of the government‘s reformist intent.
DEVELOPMENT POLICY OF THE MINERAL SECTOR BY THE GOVERNMENT: PROPOSAL DEVELOPED
BY 11 SCIENTISTS
The proposal was developed by the following 11 scientists.
G. Altansukh, PhD, Chairman of the Group
Ch. Hurts, Doctor of Science, Vice-Chairman of the Group
Members:
S. Avirmed, Doctor of Science
B. Bat-Ochir, PhD
M. Damdinsuren, PhD
G. Dejidmaa, PhD
S. Dambadarjaa, PhD
D. Dondov, Doctor of Science
J. Byamba, Doctor of Science
D. Oyuntsetseg, Doctor of Science, Secretary
The policy proposal has following parts:
1. The Policy implementation principles and criteria
2. Geology and mineral research policy
3. Mineral policy implementation in regions
4. Mineral mining, refining and processing industry development policy
5. Nonferrous metal mining and processing industry development policy
6. Ferrous metal processing and high processing industry policy
7. Coal mining and processing industry policy
8. Agrochemical and technological mineral policy
9. Economical and investment policy in the mineral sector
10. Structure, management and human resource development policy in the mineral sector
11. Environmental protection and rehabilitation
ANNOUNCEMENTS
ONLY TWO WEEKS LEFT FOR RPM‟s MINING FOR NON-MINERS COURSE
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 2010.
We are planning to organize next Mining for Non-Miners course on 21 October and 28 October. The

aim of this course is to provide those from a non-mining background with a comprehensive
introductory understanding of the mining industry.
The course duration is two days, with the first day focused on ―Coal Mining‖ and the second day on
―Metal Mining‖. RPM is offering this two-day course for MNT 1,100,000 (VAT included) for BCM
members and MNT 1,650,000 (VAT included) for non-members.
The course will be delivered in Mongolian language.
The number of participants is limited. Please send your expression of interest to Saruul at
saruul@bcmongolia.org or at 317027
___________________________________________
ONLY 4 WEEKS LEFT UNTIL MONGOLIAN MINING SUMMIT 2013
Secure your attendance at the most action-oriented program that will help you learn from Senior
Mining Executives involved in furthering Australia and Mongolia's business relationships in the
resource sector! Registration is available via the following ways:
Already attending organizations include: AECOM Australia, Ernst & Young, Golomt Bank, Macmahon
Holdings, Project Mining LLC, Bechtel Australia, Austrade, Mongolian Mining Corporation, Guildford
Coal and more! Book your ticket here.
Register online or email registration@iqpc.com.au
___________________________________________
“DOING BUSINESS IN MONGOLIA” AND BUSINESS TOUR, 12-18 NOVEMBER, LONDON
The Business Council of Mongolia (www.bcmongolia.org) and the Mongolia-British Chamber of
Commerce with support of the Embassy of the Great Britain and Northern Ireland in Mongolia will
host a Mongolian Business Mission to "Doing Business in Mongolia" Workshop with UK, London based
investors and business tour in London, from 12 to 18 Nov 2013. The business tour programme will
include the visits to "Ideal home show at Christmas" Trade fair, UK Parliament House and some
major business institution and companies in the city of London
Benefits available to delegation members are:
• Matchmaking (B2B meeting with UK or UK based Investors at HQ of Anglo American.
• Assistance in arranging and scheduling appointments with UK exhibitors and companies before and
during the programme
• Travel arrangements and hotel bookings
• Assistance with all logistics at the business and some London sightseeing programme
Please call BCM at 976-70114442 or e mail to erka@bcmongolia.org for registration or related
inquiries.
Registration deadline: Oct 07 Monday 2013.
___________________________________________
MONGOLIA INVESTMENT SUMMIT HONG KONG 2013, 18-20 NOVEMBER, HONG KONG
Bringing the best of Mongolia‘s investment opportunities to Asia‘s leading investment hub.
Featuring a line-up of Government representatives, business leaders and international investors, the
4th Annual Mongolia Investment Summit provides investors and companies seeking to do business in
Mongolia with a thorough update of Mongolia‘s investment and business climate and showcases its
actual investment opportunities. Key sectors covered include Mining and Mining Services,
Infrastructure, Energy, Financial Services, Retail, Real Estate, Construction and Agribusiness.
Mongolian companies and Mongolia-focused funds seeking to meet with investors and potential
business partners, should make attendance at Mongolia Investment Summit Hong Kong 2013 their
number one priority. Click here to download the latest brochure.
BCM is a supporting partner organization. BCM members will enjoy 15% discount; please quote
Priority Code 695BCM15D during registration.
___________________________________________

“MM TODAY” ON MNB-TV, FRIDAY, 19:05-19:15
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 19:05 to 19:15 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The following interviews added to Interview section from Oxford Business Group, Mongolia Reports
2013 book:
B. Byambasaikhan, Chairman, Business Council of Mongolia: ―Talk is cheap‖;
President Ts. Elbegdorj: ―Diversifying for growth‖
Jim Dwyer, Executive Director, Business Council of Mongolia: ―Non-mining sectors budding‖;
Peter Morrow, Chairman, American University of Mongolia: ―Filling in the blanks‖;
N. Zoljargal, Governor, Bank of Mongolia: ―Sustainable vision‖;
A. Gansukh, Minister of Roads and Transportation: ―Accessing new markets‖;
J. Od, President, MCS Group: ―Building interest‖;
B. Chuluunbaatar, President and CEO of Monnis Group: ―Climbing the ranks‖;
Cameron McRae, President and CEO, Oyu Tolgoi: ―Sitting on a copper mine‖.
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.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013
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
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available:

• Business-mongolia.com: ―Working group‘s conclusion on the economy‖
• Joshua Sunga, Internship Program Director, AIESEC- "Youth Leadership Development" at the BCM
Monthly Meeting Aug 26. 2013
• G. Zorig, Country Manager, Tree Global Mongolia – ―Tree Global Mongolia Overview Presentation‖
at the BCM Monthly meeting Aug 26, 2013
• G. Saruul, Deputy CEO, Mongolian Stock Exchange – ―Securities Law Overview‖ at the BCM Monthly
meeting Aug 26, 2013
• Bilguun Ankhbayar, Chief Executive Officer, Mongolian Investment Banking Group LLC,
―MIBG Review‖, at the MSE-BCM Securities Law Overview Session, July 4, 2013
• Robert Rooks, Director, PwC Hong Kong, ―A brief Overview of Custody Services‖, at the MSE-BCM
Securities Law Overview Session, July 4, 2013
• Anthony Woolley, Senior Associate, Hogan Lovells, ―The Revised Securities Market Law‖, at the
MSE-BCM Securities Law Overview Session, July 4, 2013
• B. Saruul, Director General, Securities Department, Financial Regulatory Commission of Mongolia,
―Securities Markets Law – Path to Market Reforms‖, at the MSE-BCM Securities Law Overview
Session, July 4, 2013
• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting
April 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
• S. Bold, Chief Economist, Central Bank, ―The current flow of investment into Mongolia‖, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• S. Javkhlanbaatar, Foreign Investment Regulations and Registration Department Head, Ministry of
Economic Development of Mongolia, ―About regulation on FDI‖, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• B. Amarsanaa, Academic Secretary of National Legal Institute, ―Legal issues of regulation of
foreign investment‖, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions"
conference on April 19, 2013 at the Kempinski Hotel.
• D. Gan-Ochir, Head of Financial Stability Council, Advisor to President of Central Bank,
―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• D. Achit-Erdene, CEO, MICC, ―On current state of equities foreign investment‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• 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 Neighbor‖ at the BCM monthly meeting, March 25, 2013
Other 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

Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―Mongolia Macro Flash‖, Adrienne Lui, Asia Pacific Economics Research, Citigroup Global Markets
Asia Ltd;
- ―Selected Macroeconomic Indicators for Mongolia, as of June 2013‖ by International Monetary
Fund;
- ―Polit Barometer April, 2013‖ by Sant Maral Foundation;
- ―Market Update‖ by Mandal General Insurance LLC;
- ―Annual Report 2012‖ by International Monetary Fund;
- ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International Monetary Fund;
- ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and Development (EBRD);
- ―Official statement of Oyu Tolgoi LLC in relation to information, data and facts related to Oyu
Tolgoi – ―2013discussed during open session of the State Great Khural‖, dated 1 February, 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;
- ―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.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
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.
___________________________________________
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.
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.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,611 fans on our Facebook fans page, 1,492 connections on LinkedIn network, and
770 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.

BCM WORKING GROUP NEWS
The BCM Tax Working Group met on Tuesday, October 1st, with 10 members attending.
Co-chairs Arthur Cookson-OT, and Onchinsuren D-Deloitte Onch moderated the session.
New member: S.Solongo-Business Plus Initiative. Akmal Rustanow-PricewaterhouseCoopers Advisory
LLC.
Meeting discussion was on the Tax Law amendments.
Next Tax Working Group meeting will be held 15th of October,Tuesday 2013 at Deloitte Onch
Meeting room.
PS: If you have any comments on the draft Tax Law amendments please contact BCM`s working
group coordinator Erdenetsetseg or following e-mail address. erka@bcmongolia.org
___________________________________________
The Business Council of Mongolia (BCM) has been pushing forward with its BCM in the University
Classroom series since March 2012. Led by BCM‘s Education Working Group, the program provides
lectures at universities to help inspire students and give them direction for their future careers.
Last academic year, BCM organized 10 lectures to over 600 students and teachers. Now BCM is
preparing 11 university lectures for this academic year.
Most recently, Senior Commissioner Batzorig of the Independent Agency Against Corruption gave a
presentation entitled ―Anticorruption‖ to an audience of more than 56 students and teachers at the
Economy and Banking Department of the Institute of Finance Economies on 3 October. He presented
on combating corruption in the workplace, the meaning of anticorruption, and the social
repercussions.
Batzorig‘s presentation is available on BCM's Education Working Group‘s Mongolian language web
page.
The next BCM in the University Classroom will be held on 23 October at the National University of
Mongolia for its Geology and Environment Department. B. Bayarmaa, a carbon finance specialist at
Clean Energy LLC and chair of BCM`s Environmental Working Group, will give a presentation titled
―Climate Change Mitigation and Green Development‖.
For more information on BCM in the University Classroom, email erka@bcmongolia.org.

INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
August 31, 2013 *9.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 8.4% y-o-y, Ulaanbaatar city, August 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]
June 25, 2013 10.50%[source: Mongol Bank]
CURRENCY RATES – SEPTEMBER 26, 2013
Currency Name Currency Rate
US dollar USD 1,657.29
Euro EUR 2,242.23
Japanese yen JPY 17.06
British pound GBP 2,685.39
Hong Kong dollar HKD 213.72
Chinese Yuan CNY 270.73
Russian Ruble RUB 51.33
South Korean won KRW 1.54
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.

04.10.2013, NEWSWIRE, Issue 294

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04.10.2013, NEWSWIRE, Issue 294