New Wire Issue 414

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 414 – February 5, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each article is
kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full
article.
NEWS HIGHLIGHTS:
Business:
 Canada's Centerra given go-ahead to mine Mongolian gold deposit;
 Russia forgives USD171 mn in Mongolrostsvetmet debt;
 Erdenet Mining allies with local producers;
 Petro Matad delays survey and drilling plans;
 Aspire cuts mining cost estimates at Ovoot;
 Geology lab receives global accreditation;
 Charcoal for barbeque grilling, made in Mongolia;
 Mobicom fined for unfair practices;
 President unveils Wiki-style dictionary;
 The Let’s Read! Asia digital library expands to Mongolia;
 City IT Department and university to co-implement “Smart UB” program;
 Ard Financial Group acquires 17.4% of Mongol Post JSC;
 Shangri-La Hotel on fire, again;
 Wagner Asia named 'Best Socially Responsible Investor' at 2016 Silk Road awards;
 UB Development Corp. puts out calls for business partners;
 The story of Oyu Tolgoi;
 Sam Walsh: Rio Tinto’s boss is an iron fist in a velvet glove.
Economy:
 Mongol Bank: currency auctions, swaps, 1-week bills, T-bills;
 Moody's assigns (P)B2 rating to Mongolia's medium-term note program;
 Mongolia delays planned sovereign dollar bond;
 Mongolia’s 2015 inbound FDI falls 39% y-o-y to USD232 mn;
 Total imports fall more than a quarter in 2015;
 Government to cut interest rates on loans by March;
 Banks granted 1,129 mortgage loans in last 10 days;
 Mongolia to buy petroleum on credit from Russia while in financial pinch;
 Oil processing plant planned for Khentii;
 Mongol Bank says interest rates should be 10% for agro producers;
 UNDP launched carbon-offset initiative;
 Government promises MNT30 bn financing for health care products;
 Emergency authorities plan for disaster response;
 Mongolian delegation launches project to combat gender-based violence;
 PM attends renovation ceremony at UB central railway station;
 Despite commodities boom years, Mongolia still faces capacity gap.

2. Politics:
 PM survives no-confidence vote over economic policies;
 Parliamentary election will take place on June 29;
 Legislation legalizes ports for trade;
 Parliament adopts Law on Land for Farming;
 Reducing air pollution in ger areas must be a priority, says sub-committee;
 MP recommends protections for Gobi mountains;
 Ministries ordered to cut costs;
 Democratic party proposes merger with coalition partners;
 Austria to send home 125,000 Mongolian immigrants;
 MPRP member explains away alleged corruption as campaign financing;
 Railway embezzlement suspects released on bail;
 MTZ contractor believed to be tied to corruption attempts second suicide;
 Illegal border crossings spike alongside Mongolia-Russia border;
 Road maintenance workers threaten to go on strike;
 476 drivers lose points for traffic violations;
 Weekend traffic restrictions for Tsagaan Sar;
 INS follows up on failed motion to dismiss PM—REPORT;
 Why did Russia just write-off 97% of Mongolian debt?—EDITORIAL;
 ISIS, explained by a maniacal Buddhist warlord;
 Why sky burials are vanishing in Mongolia—PODCAST.
BCM Updates:
 Announcements;
 New Mongolian Laws;
 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News
 BCM in the University Classroom Series;
 Websites Update - Presentations, Mongolia Reports, Interviews;
 Social Networks.
Economic Indicators:
 Churchill’s Supermarket Price Comparison
 Inflation;
 Central Bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Invest Mongolia Agency

3. Mongolian Business Database
BUSINESS
CANADA'S CENTERRA GIVEN GO-AHEAD TO MINE MONGOLIAN GOLD DEPOSIT
Canada's Centerra Gold Inc. <CG:TO> has been given the go-ahead from Mongolia's lawmakers to
mine the Gatsuurt gold deposit after a five-year delay, as the resource-rich country looks to bolster
its economic activity and gold reserves. The parliament passed a bill granting the country 34
percent ownership of the mine with 1.6 million ounces of probable gold reserves, a government
website says. Centerra, which also owns the Boroo mine in Mongolia, will hold the remaining 66
percent of equity. With the parliament's approval, the government can now negotiate the final
conditions for mining with Centerra. The Toronto-based company said it will conduct economic and
technical studies once it has negotiated definitive agreements with the government, including a
deposit development and investment agreement.
"The Gatsuurt project represents an exciting opportunity to use Centerra's existing Boroo mill and
other infrastructure to develop the 1.6 million ounce Gatsuurt deposit with very modest initial
capital investment," said Centerra Chief Executive Scott Perry in a statement.
Source: Reuters
RUSSIA FORGIVES USD171 MN IN MONGOLROSTSVETMET DEBT
Russia has lowered the debt owed by state-owned Mongolrostsvetmet by 97 percent after
implementing sweeping debt forgiveness last week. Mongolia must pay USD3.8 million within the
next 30 days to be forgiven the USD174.5 million in debt of Mongolrostsvetmet to Mongolia's
northern neighbor.
Source: Udriin Sonin
ERDENET MINING ALLIES WITH LOCAL PRODUCERS
State-owned miner Erdenet Mining Corp. has agreed to buy up raw materials from local companies
in Orkhon Aimag as it looks to expand its operations. Erdenet has agreed to purchase 35 percent (up
from 30 percent) of its raw materials from local companies ahead of plans for cast iron and copper
concentrate production, said B. Namkhainyambu. “The Industry Minister became acquainted with
the activities of Hutni Projekt Frydek-Mistek LLC’s coke production and cast iron processing factory,
and Vitkovets Group’s steel processing tsvetmet during his visit last year to the Czech Republic.”
Last year, Erdenet expanded its annual ore-process capabilities by 23 percent to 32 million tons and
commissioned a steel pellets factory. The government has plans for a concentrator at Bor Undu,
where there are water resources and infrastructure including roads, rail and power. “This location
has the potential to become a region with a chemical and metallurgical complex in the future.”
Source: UB Post, Mongolian Mining Journal
PETRO MATAD DELAYS SURVEY AND DRILLING PLANS
Petro Matad Ltd. shares fell on Wednesday after the company said it had suspended its seismic data
acquisition at its project and its drilling plans for the site have been pushed back. Petro Matad said
it has completed its seismic data acquisition for Block IV at the project, but will now postpone
collecting data for Block V and will start again in May. Due to that delay, it now plans to start
drilling two exploration wells at the project in 2017, rather than in 2016, as had been previously
planned.
Petro Matad said it remained confident in the project and said drilling the two wells back-to-back in

4. 2017 will result in operational efficiencies for the business. It also said the availability of drilling
rigs makes it likely it will be able to secure drilling rigs for the project at a lower cost than had
previously been envisaged.
Source: London South East
ASPIRE CUTS MINING COST ESTIMATES AT OVOOT
Mining cost estimates for Aspire Mining Ltd.’s Ovoot metallurgical coal project have been cut by 22
percent following a high-level review of the project to take into account current market conditions.
The cut in mining costs confirms the expectation that Ovoot remains at the lower end of the global
metallurgical coal cost curve, the company said.
The company also received the results of a geophysical survey conducted over the Ovoot tenements
and surrounding areas by local Mongolian firm, AMO-Discover LLC. The survey identified two regions
of interest that have been recommended for further surveying and drilling to the southwest and
within existing exploration licenses. The survey also identified areas of limited further exploration
potential and the company is now in the process of relinquishing 17,000 hectares of tenement area,
reducing its tenement position to about 25,000 hectares.
Source: World Coal
GEOLOGY LAB RECEIVES GLOBAL ACCREDITATION
The Mongolian Geological Central Laboratory has received triple accreditation for international
standards, according to its director. N. Tegshbayar said the accreditation makes the lab one of the
top-five in the world. Accreditation includes the competency of its scientists and modern
equipment.
Source: Udriin Sonin
CHARCOAL FOR BARBECUE GRILLING, MADE IN MONGOLIA
A Mongolian company has released a charcoal product for barbecue grilling made from locally-
sourced saw dust. Mongolia's annual demand for charcoal is between 300,000 and 500,000 tons, said
MCPT Co. General Manager Ch. Purev. “Sales started as an experiment in 2014, and after five years
of experimenting, now we are selling through more than 10 chain stores,” said Purev.
MCPT has targeted buyers in South Korea for exports, and plans to expand its operations through
the purchase of additional sawdust from Russia's Buryatia Republic. “Our daily production capacity
is three tons,” Purev said.
Source: Undesnii Shuudan
MOBICOM FINED FOR UNFAIR PRACTICES
Mobicom Corp. has been fined MNT2.3 billion by the Authority for Fair Competition and Consumer
Protection (AFCCP) for selling phone numbers at a rate below real costs, saying that the company
was using unfair tactics to push out competitors. Mobicom, Mongolia's largest telecom company,
released phone numbers beginning with the two digits 94 at a price of MNT20 per number. The sale
came along with special deals, such as free phone calls to specified phone numbers of friends or
family and overall free text messaging.
AFCCP fined Mobicom for taking advantage of its size and resources to charge at a cheaper rate
than competitors could, setting a bar too low for pricing that competitors could not match. It also
cited a bizarre condition that said Mobicom had broken the law by advertising on television,
Internet and on pamphlets.
Source: Undesnii Shuudan
PRESIDENT UNVEILS WIKI-STYLE DICTIONARY
The Office of the President has unveiled a new English-Mongolian dictionary phone application that
allows users to submit up-to-date definitions and vocabulary. Numerous scholars and researchers
were tasked with presenting input to create an app that gives greater context to the languages,
said P. Tsagaan, the lead advisor to President Tsakhia Elbegdorj. Mongolian often does not translate

5. directly or simply to English, sometimes resulting in awkward statements from new learners.
The application currently contains definitions for 60,000 words, as well as 80,000 phrases. Users can
edit definitions and create new terms through the website MongolToli.mn.
Source: Montsame
THE LET’S READ! ASIA DIGITAL LIBRARY EXPANDS TO MONGOLIA
The Asia Foundation’s Books for Asia program celebrated the opening of a new children's digital
library on 1 February. The library “will deliver an entire library of stories into the hands of
underprivileged students,” reads a statement from the Asia Foundation. It added, “Let’s Read!
Mongolia will use high-impact, low-cost technology to give children access to age-appropriate books
in Mongolian and English.”
The system has been set up at 6 public schools in Ulaanbaatar's ger districts, where more than half
of Mongolia's 1.6 million residents live.
Source: Asia Foundation
CITY IT DEPARTMENT AND UNIVERSITY TO CO-IMPLEMENT “SMART UB” PROGRAM
IT authorities for Ulaanbaatar plan to collaborate with the University of Ulaanbaatar to see through
the “Smart Ulaanbaatar” initiative to bring city services to residents through technology.
Representatives of the city and university signed a cooperation agreement on 29 January on
evaluating the qualifications of engineers. They plan to eventually create 9 different goals,
including the hosting of trainings and contests as well as offering students work experience.
Source: Montsame
ARD FINANCIAL GROUP ACQUIRES 17.4% OF MONGOL POST JSC
ARD Financial Group has confirmed a 17.4 percent stake holding in Mongol Post JSC after its public
offering on 8 January. The government listed 34 percent equity in the national postal delivery
service at the start of the year, raising MNT6.2 billion to expand its services, technical capacities
and governance. ARD, who also has holdings in Nomin Khishig Real Estate and Wild Digital Agency,
has promised to help introduce best practices in the corporate governance of the company.
Source: ARD Financial Group
SHANGRI-LA HOTEL ON FIRE, AGAIN
Thirty-three workers were sent to hospitals for medical care after a fire broke out at a construction
site owned by the Shangri-La Hotel on 28 January. The accident was the second fire in two years
during construction at the global hotel's properties and took place at a separate site directly next to
the hotel that opened last year. Officials have not yet made a statement on the cause for the fire.
Source: Unuudur
WAGNER ASIA NAMED 'BEST SOCIALLY RESPONSIBLE INVESTOR' AT 2016 SILK ROAD AWARDS
Wagner Asia Equipment LLC received the honor “Best Socially Responsible Investor” at the 2016 Silk
Road ceremony. Hosted by the Mongolian National Chamber of Commerce and Industry (MNCCI), the
awards recognize the embassies, international organizations and foreign investors who contribute to
Mongolia's development. Wagner Asia won the award for its social responsibility projects in 2014
and 2015, investments made those years as well as the corporate governance and transparency in
its operations.
Source: Wagner Asia Equipment LLC
UB DEVELOPMENT CORP. PUTS OUT CALLS FOR BUSINESS PARTNERS
UB Development Corporation (UBDC) is looking for partners to execute urban development projects
in line with the 2030 Master plan. “We are inviting private companies and individuals willing to
cooperate with us in implementing economically viable projects,” reads a statement for UBDC,
adding that project proposals were welcome before 28 February.
The Ulaanbaatar Chamber of Commerce welcomed businesses to investment opportunities at an

6. investors’ forum last month. “Projects and programs budgeted by the city will be introduced to the
private sector,” said the chamber's president, J. Od, in an interview.
Source: BCM, Mongolian Economy
THE STORY OF OYU TOLGOI
Oyu Tolgoi LLC has published more than half a century of history in a tell-all book available for
download. Oyu Tolgoi 1957-2015 includes more than 200 pages of history, biographies on the key
figures in the project's development and photos.
Source: Oyu Tolgoi LLC
SAM WALSH: RIO TINTO’S BOSS IS AN IRON FIST IN A VELVET GLOVE
By rights, Sam Walsh should be miserable. The company he leads, Rio Tinto Group—the world’s
second-largest mining conglomerate—has lost USD31 billion in share market value since the middle
of 2014. But his performance since taking over the top job in 2013 has been a one-man charm
offensive in public, even as he imposed a brutal efficiency drive within the company that has seen
budgets slashed and a slew of top executives leave.
And beneath his surface humility, he has a vigorously healthy ego. Some business journalists
mocked him for saying that his tenure at Rio would one day be “a Harvard case study,” but Walsh
insists that Harvard is now actually doing such a study. “He did a lot of things to take Rio Tinto into
the 21st century,” says former Rio management official Preston Chiaro. “Sam thought the mining
industry was backward and wanted to bring modern practices into Rio Tinto.
Source: Australian
SPONSORS
Oxford Business Group The New Media Group
Mongolian Economy Magazine
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS
The Bank of Mongolia on 2 February sold USD20 million and CNY5.5 million to central banks in
currency auctions (out of USD64.85 million and CNY26.5 million in bids, respectively) for closing
exchange rates of MNT2,014.35 and MNT304.8, respectively. Also that day, it accepted tugrug swaps
with commercial banks for an equivalent of USD5.45 million, but rejected U.S. dollar swaps worth
USD30 million.
The Bank of Mongolia on 3 February issued 1-week bills worth MNT256.9 billion at a weighted
interest rate of 12 percent. Also that day, the central bank received MNT34.8 billion in bids for the
auction of 52-week treasury bills with a face value of MNT25 billion. It canceled the auction of
three-year bonds with a face value of MNT15 billion because of a lack of bids.

7. Source: Bank of Mongolia
MOODY'S ASSIGNS (P)B2 RATING TO MONGOLIA'S MEDIUM-TERM NOTE PROGRAM
Mongolia's (B2 negative) credit profile will come under pressure over the next 12 to 18 months, due
to a combination of falling commodity prices and lower growth in China (Aa3 stable), said Moody's
Investors Service on 1 February. Mongolia's slim reserve buffers, which are insufficient to cover its
short-term external and maturing long-term debt over the next two years, exacerbate this
situation. Over time, however, Moody's expects growth and inward investment flows will reduce
these domestic and external pressures.
Since Moody's downgraded the government's bond rating from B1 in July 2014, some strains on the
credit profile have abated. The central bank has reversed monetary and quasi-fiscal stimulus
measures that contributed to a rapid build-up in credit growth and inflation through 2011 and 2012.
Beyond 2021, Moody's expects growth and inward investment flows will resume to adequate levels
to address Mongolia's vulnerabilities, led by foreign direct investment in large mining projects—in
particular Oyu Tolgoi.
Source: Moody's Investors Service
MONGOLIA DELAYS PLANNED SOVEREIGN DOLLAR BOND
The government of Mongolia (B2/B/B) has decided to delay a planned offering of U.S. dollar
sovereign bonds, according to investors. However, a source close to the deal claimed the issuer was
only waiting for suitable market conditions. An issuance of 144A/Reg S senior unsecured notes from
the sovereign's USD5 billion global MTN program was expected to follow. Investors said their pricing
expectations did not meet those of the issuer and that the deal had been delayed as a result.
However, a source close to the deal said that the issuer was continuing to monitor markets and
could launch a deal after Lunar New Year.
Last year, Trade and Development Bank of Mongolia hired banks for a proposed U.S. dollar issue,
while Golomt Bank was also rumored to be mulling a similar offer. Development Bank of Mongolia
invited banks to pitch for roles on a planned euro-denominated bond. None of the planned deals
have come to fruition so far.
Source: International Financing Review
MONGOLIA’S 2015 INBOUND FDI FALLS 39% Y-O-Y TO $232 MN
Inbound foreign direct investment fell to USD232 million in 2015 versus USD381.9 million in 2014,
according to data released by central bank on 1 February. Mongolia had USD153.6 million of foreign
direct investment in December, the highest total of any month in 2015. The second highest amount
was USD85.4 million in May
Mongolia had inbound foreign investment of USD2.14 billion in 2013 and USD4.45 billion in 2012.
Source: Bloomberg, Cover Mongolia
TOTAL IMPORTS FALL MORE THAN A QUARTER IN 2015
Mongolia's total imports slid 27.5 percent from 2014 last year as the country saw its foreign trade
balance narrow. The gap between imports sold and exports bought fell this year after a tough year
of economic downturn from slowed growth in China and little foreign investment into the country.
Mongolia's imports of commercial goods fell 31 percent last year from the year before. Fuels were
down by 39 percent, while cars and foods imported were down 27 percent and 16 percent,
respectively. Imports for industrial use were down 13 percent.
Source: Montsame
GOVERNMENT TO CUT INTEREST RATES ON LOANS BY MARCH
The state-backed mortgage program will reduce annual interest rates even further to 5 percent by
the end of the month, said representatives of the Democratic Party at a 2 February press
conference. The government plans to lower interest from the locked-in rate of 8 percent in place
since 2013 as a means of stimulating growth after lending petered out last year. The government

8. hopes to lower interest to agriculture workers, too, to stimulate the economy and maybe gain favor
ahead of elections scheduled for June. Tax cuts are also on the agenda.
“As the PM said, the interest rate of mortgage loans for apartments can be reduced to 5 percent,
and the interest rate for herders' loans—to fall threefold within February," said B. Garamgaibaatar,
head of the parliamentary unit within the Democrats.
Source: Montsame
BANKS GRANTED 1,129 MORTGAGE LOANS IN LAST 10 DAYS
Banks have issued MNT15.9 billion mortgages in the 10 days following the re-launch of the program.
Parliament passed legislation to reboot the 8 percent government-subsidy mortgage program after
it came to a halt in December because a judge had ruled it was in violation of lending laws. Six of
Mongolia's 11 banks have resumed lending, where there were enough funds for a total of MNT68.5
billion to 1,129 borrowers.
Source: Mongolia.GoGo.mn
MONGOLIA TO BUY PETROLEUM ON CREDIT FROM RUSSIA WHILE IN FINANCIAL PINCH
Mongolia will buy petroleum products from Russia on credit following less-than-expected
government income that resulted from slowed economic growth. “Because Mongolia received little
money from taxes in the first quarter, there is a shortage of U.S. dollars, said Prime Minister
Chimed Saikhanbileg.
Source: Undesnii Shuudan
OIL PROCESSING PLANT PLANNED FOR KHENTII
Industry Minister D. Erdenebat has receives orders from the Cabinet on 1 February to execute the
preliminary work for building an oil processing plant and piping system at Bor-Undur Soum, Khentii
Aimag. He'll be responsible for developing a tender to select an investors’ consortium that includes
at least one domestic company and negotiating a concessionary contract.
According to the preliminary feasibility study, Khentii’s Bor-Undur was identified as the best
location ahead of Choir, Sainshand and Choibalsan because of the surrounding infrastructure,
logistics receiving for crude oil, and proximity to the market. Development has been estimated to
take 4 years.
Source: Montsame
MONGOL BANK SAYS INTEREST RATES SHOULD BE 10% FOR AGRO PRODUCERS
The president of the Bank of Mongolia has encouraged commercial banks to lower their interest
rates to 10 percent for lending to agriculture producers in light of last year's lowest recorded
inflation since 2006. Last year's third quarter clocked in 2.5 percent economic growth said central
bank President Naidansuren Zoljargal. Khan Bank and Turiin Bank LLC (State Bank) lent a total
MNT240 billion at a rate of 2.5 percent a month, or 30 percent a year.
A third of inflation between 2010 and 2012 was an upward trend in meat prices, said Zoljargal. A
resolution to supply issues, such as the meat fund, from 2013 to 2015 helped assuage those
inflationary pressures, he said. The depreciation of the tugrug hasn't contributed much to inflation
since August 2014, he added, while imports fell.
Source: Montsame
UNDP LAUNCHED CARBON-OFFSET INITIATIVE
Mongolia has launched a carbon-offset program to prevent the pace of climate change that provides
financial incentives for maintaining forests. Mongolia can play a significant role in climate change
mitigation through the sustainable management of its forests and restoration of degraded forests,
said the U.N. resident coordinator and U.N. development program resident representative Beate
Trankmann, during her opening remarks for the launch of the program on 26 January. The Reducing
Emissions from Deforestation and Forest Degradation (REDD) program is designed to find strategies
for making countries forests a part of the economy. “It would be easy to believe that our forests

9. have only little value. The reality is very different,” said Trankmann. “Selected services of the
Mongolian forests are worth more than MNT 430 billion per year to the national economy.”
Mongolia ranks among the top-8 most-threatened countries from climate change, with average
temperature increasing more than 2 degrees Centigrade over the last 70 years.
Source: Montsame
GOVERNMENT PROMISES MNT30 BN FINANCING FOR HEALTH CARE PRODUCTS
Prime Minister Chimed Saikhanbileg has promised to deliver MNT30 billion to support the growth of
production of health care products. “Making medicine and medical products independent from
foreign countries is one of the main objectives of the government of Mongolia and companies and
entities which run operations in the health sector,” said Prime Minister Chimed Saikhanbileg during
his weekly address to media.
Saikhanbileg said the government would ensure that at least 50 percent of products used for health
care would be produced domestically through government financing. Today, only 17 percent of the
medicine and equipment used for medical aid is produced at home.
Source: UB Post
EMERGENCY AUTHORITIES PLAN FOR DISASTER RESPONSE
State emergency officials are making moves to mitigate the effects of disastrous weather conditions
this winter. About 80 percent of Mongolia is covered by snow, while 18 of Mongolia's 21 provinces
are suffering from severe cold temperatures and enough snowfall to result in a natural disaster
called a dzud. A dzud is the death of thousands of herders' animals because of harsh winter
conditions.
The Cabinet has ordered the delivery of about 6,500 tons of hay as free aid, in addition to more
than 2,600 tons of fodder sold at a half-price discount, said State Emergency Commission Secretary
N. Enkh-Amgalan.
Source: Montsame
MONGOLIAN DELEGATION LAUNCHES PROJECT TO COMBAT GENDER-BASED VIOLENCE
Fifteen Mongolians traveled to Alaska from 18 to 28 January to participate in the first phase of the
U.S. government-funded “Combatting Gender-Based Violence in Mongolia” project. During the 11-
day visit, representatives of the National Center Against Violence, the General Agency for Social
Welfare, the National Police Agency, the Trauma Hospital’s One-Stop Crisis Center, domestic
violence shelters, and related civil society organizations learned about effective strategies and best
practices to prevent and respond to domestic violence.
The project seeks to build the capacity of the Mongolian government and NGO partners working
with victims of domestic violence through exposure to domestic violence shelter management
techniques and domestic violence response and prevention strategies. The Mongolian delegation
visited three cities in Alaska and met with representatives of the NGO Abused Women’s Aid in
Crisis, the prosecutor’s office, the local police department in Anchorage, and other groups.
Source: U.S. Embassy
PM ATTENDS RENOVATIONS CEREMONY AT UB CENTRAL RAILWAY STATION
Prime Minister Chimed Saikhanbileg addressed a crowd at Ulaanbaatar's central railway station to
celebrate the renovations completed there. Up to MNT245 million has been spent since last August
on expanding the main lobby areas as well as build a business conference hall, a fine-arts gallery,
and shops including a currency exchange booth. Saikhanbileg said the work was part of Mongolia's
preparation for the Asia-Europe Meeting Summit to be held this July in Ulaanbaatar.
In order to ensure a convenience for passengers, main lobby areas at the central railway station
have been expanded.
Source: Montsame

10. DESPITE COMMODITIES BOOM YEARS, MONGOLIA STILL FACES CAPACITY GAP
As a commodities-exporting country deeply linked to the Chinese market, Mongolia faces
heightened risks from the current commodities slump and China’s economic slowdown.
“Commodities, and their prices, remain a critical valve for the Mongolian economy,” said Jonathan
Berkshire Miller, director of the Council on International Policy. The fall in commodity prices
exacerbates issues already hurting the steep fall in foreign investment entering the country, he
said.
“During its boom years, Mongolia did take significant efforts to develop its infrastructure, especially
in the 'key need' areas such as energy, water, transportation and telecommunications. The problem
is that the need and capacity gap is so large that these efforts, spearheaded by both the private
and public sectors, remain insufficient. Infrastructure capacity remains poor in Mongolia, and while
there have been improvements, universal access to water and especially electricity remains a
distant goal.”
This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on
resource-exporting countries.
Source: World Politics Review
POLITICS
PM SURVIVES NO-CONFIDENCE VOTE OVER ECONOMIC POLICIES
Mongolian Prime Minister Saikhanbileg Chimed has survived a no-confidence vote over his handling
of the economy, setting him up to rule through summer elections. Forty-two lawmakers in the 76-
seat Parliament voted in support of Saikhanbileg, with 31 against. A five-hour debate concluded in
the early hours of Friday. A group of 19 MPs had filed a petition alleging that Saikhanbileg’s May
authorization of Rio Tinto Group’s development of the Oyu Tolgoi copper mine constituted an abuse
of power, offering little benefit to Mongolian citizens, delaying dividends and increasing the state’s
debt burden.
Saikhanbileg and his Democratic Party has five months to turn around the sluggish economy before
voters return to the polls. The vote results are a “major boost for political stability until 2016
elections, de-risking Mongolia in this sense,’’ Dale Choi, founder of Mongolian Metals & Mining, said
in an e-mailed statement.
Source: Bloomberg
PARLIAMENTARY ELECTION WILL TAKE PLACE ON 29 JUNE
Mongolia's parliamentary elections are slated for 29 June, according to an amendment to the
Elections Law and Ulaanbaatar's Citizens Khural passed on 29 January. A majority of lawmakers in
Parliament voted in favor of the law, which schedules the elections for the last Wednesday of June.
Mongolians living abroad are able to cast their ballots with their embassies from 17 to 19 June.
The amendment also sets the period when politicians may campaign to 11 June. The government
has budgeted MNT16.5 billion for campaigning in this year's elections, with details on spending
expected by May.
Source: Montsame, Mongolia.GoGo.mn
LEGISLATION LEGALIZES PORTS FOR TRADE
Parliament has paved the way for international transportation networks such as the “Silk Road”
project creating routes between China and Europe that Mongolia plans to build a highway to
facilitate with an intergovernmental agreement that's been ratified. A standing committee in
Parliament ratified the agreement on 2 February, which will allow for ports of trade and to move
goods between countries. “This can augment transit transportation and movement capability and
also facilitate the transportation and trade,” said a standing committee member.
Ports can be set up at already-existing border checkpoints, including Altanbulag, Sainshand,
Ulaanbaatar, Zamyn-Uud and Choibalsan.

11. Source: Montsame
PARLIAMENT ADOPTS LAW ON LAND FOR FARMING
Parliament passed a bill on 29 January that provides farming companies buying up land for crops
some protections. A majority of Parliament voted in favor of the law, which makes sellers
responsible for maintaining soil quality prior to any sales. Previous land owners are also responsible
for striking deals with herders that might traditionally pass through the land throughout the year.
Source: Montsame
REDUCING AIR POLLUTION IN GER AREAS MUST BE A PRIORITY, SAYS SUB-COMMITTEE
A sub-committee in Parliament has ordered the Cabinet Secretariat to take more direct action on
reducing air pollution in Ulaanbaatar as soon as possible to prevent long-term health impacts on
children. MP Ts. Oyungerel, who leads the sub-committee on Reducing Air Pollution, asked for a 5-
year plan to make Ulaanbaatar's ger districts coal free for heating. It also directed them to see the
ger districts as “an integrated part of a permanently sedentary Ulaanbaatar city.”
Source: Montsame
MP RECOMMENDS PROTECTIONS FOR GOBI MOUNTAINS
Parliament's environmental working led by MP L. Erdenchimeg has called for the Tost and
Tosonbumba mountains in Umnugobi Aimag to be put under state protection. The working group
said local bodies should be responsible for protecting the land.
Former Environmental Minister Ts. Oyungerel said she had already prepared a bill that would set
aside the mountains as reserved land.
Source: Montsame
MINISTRIES ORDERED TO CUT COSTS
Cabinet Secretariat head S. Bayartsogt has put out a call to government managers to implement
cost-savings measures. The government last year introduced sweeping cost-cutting measures after
it failed to pull in expected income amid slowing growth in China and a fall in coal prices. “The
current expenses of all budgetary organizations—except for the institutions for education, health,
culture, sciences, emergency, police and court—have been cut by up to 10 percent, so the general
managers should adhere to the economizing regulation,” said Bayartsogt at a 29 January Cabinet
meeting.
Source: Montsame
DEMOCRATIC PARTY PROPOSES MERGER WITH COALITION PARTNERS
The Democratic Party has formally invited coalition partners, the Civil Will-Green Party (CW-GP)
and Mongolian National Democratic Party (MNDP), to join their fold. The Democrats would see the
number of sitting MPs in Parliament grow ahead of July elections, but could further complicate
relations in a party already rife with factions and independent agendas. The parties said they would
consult party members through their executive councils as well as members of the upper and lower
legislative parties.
CW-GP has already rejected a similar proposal to join forces from the Justice Coalition, which
includes the MNDP as well as Mongolian People's Revolutionary Party (MPRP).
Source: Montsame
AUSTRIA TO SEND HOME 125,000 MONGOLIAN IMMIGRANTS
Mongolia's 125,000 residents in Austria will return home after sweeping immigration reform has
ordered their deportation. Mongolian, Moroccan, Ghanaian, Algerian, Tunisian and Georgian citizens
must return home within the next three years, despite the fact that their home countries do not
suffer from political instability or violence. Mongolia has no means of recourse, said the Ministry of
Foreign Affairs.
Deported citizens will be given EUR500 each if they leave the country within 10 days of the

12. demand, or else face forcible deportation.
Source: Montsame
MPRP MEMBER EXPLAINS AWAY ALLEGED CORRUPTION AS CAMPAIGN FINANCING
Mongolian People's Revolutionary Party (MPRP) MP G. Shiilegdamba has written a letter to the public
explaining that his plans to hand over USD120,000 that landed him in prison was a donation to their
party, which the controversial figure leads. Shiilegdamba, who is former minister of health and
sports, was arrested last month by the Independent Authorities Against Corruption as he was about
to deliver USD50,000 to Mr. Enkhbayar, who is a former president and prime minister known to the
public as the “godfather of corruption.” The donation was meant for financing the party's political
campaign, said Shiilegdamba. According to the letter dated 28 January, Shiilegdamba said he had
agreed to give another USD120,000 to Enkhbayar that same day before his arrest.
Shiilegdamba also denied ever writing a letter from 15 November for his resignation, saying that he
only signed it at the request of Deputy Prime Minister Ts. Oyunbaatar.
Source: Undesnii Shuudan, News.mn
RAILWAY EMBEZZLEMENT SUSPECTS RELEASED ON BAIL
The head of Samsung C&T and a former government official believed by authorities to be involved
with corruption and embezzlement have been released on bail. Samsung Director Li John Gyol and
B. Batzaya, who was state secretary for road and transportation and board member for Mongolian
Railway (MTZ), allegedly embezzled USD6.4 million in funds meant to pay for construction of a
railway route between the Tavan Tolgoi coal fields and the Chinese border.
They were released after the two-month investigatory period had expired on 20 December. Batzaya
had been transferred to a hospital after getting sick during his incarceration.
Source: Unuudur
MTZ CONTRACTOR BELIEVED TO BE TIED TO CORRUPTION ATTEMPTS SECOND SUICIDE
Police are investigating an alleged suicide attempt by a figure police believe was a co-conspirator
for a USD 6.4 million embezzlement scandal from a railway construction project. An unspecified
amount of time has passed since Z. Baasandorj, director of KHNP Co., attempted to kill himself
after an investigation was opened into him for possible links to the scandal. He is on the hook for
MNT3.4 billion he borrowed for a job contracted out by Mongolian Railways (MTZ) that his company
never received payment for. B. Batzayaa, a former minister of road and transportation and board
member of state-owned MTZ, was arrested for the crime, as well as the head of the lead contractor
for the project, Samsung C&T.
In 2011, KHNP was hired by MTZ prepared 50 kilometers of ground work for the rail line's
construction, which runs between Dalanzadgad Soum, Umnugobi Aimag to Choibalsan Soum. The
suicide attempt is reportedly Baasandorj's second.
Source: Udriin Sonin
ILLEGAL BORDER CROSSINGS SPIKE ALONGSIDE MONGOLIA-RUSSIA BORDER
Border authorities at Selenge Aimag have seen a dramatic jump in the number of illegal attempts to
cross the border last year. The 18.7 percent increase in arrests while illegally trying to cross the
border comes after Altan Bulag was established as a special economic zone where Russians and
Mongolians could cross freely.
Three Russians last year in January were arrested after attempting to cross the border while
intoxicated. Groups of Russians have also been caught trying to smuggle drugs into Mongolia. A
popular form of contraband out of Mongolia have been birds of prey that can be sold on the black
market. Thirty-one Mongolian citizens attempted to cross at frontier access points to avoid
inspection by customs. The areas between Mongolia and Russia are rich in forests and difficult to
control, said the Border Troop 0243. They're also at greater risk of fires, such as those that spread
from Russia into Mongolia last summer.
Source: News.mn

13. ROAD MAINTENANCE WORKERS THREATEN TO GO ON STRIKE
Members of the Trade Union of Road Workers have gone on strike after going three months without
salary after the government cut its budget for maintenance by 55.5 percent to MNT8 billion for this
year. The 4,000 employees working for 52 companies are waiting for a total of MNT5.3 billion from
the government.
In a letter to Parliament, the union demanded that legislators raise the budget, arguing that they
could not maintain 160 kilometers of paved road as planned without the funds. The strike makes
good on the workers threat to do so if they did not hear back by 8 February.
Source: Zuunii Medee
476 DRIVERS LOSE POINTS FOR TRAFFIC VIOLATIONS
Police handed out violations taking away points from the licenses of 476 drivers on the day the new
regulations for driving in Ulaanbaatar rolled out. Drivers are allowed to have up to 10 points
removed to maintain their licenses, with up to five points lost in a single offense. On 1 February,
police removed a single point for minor offenses by 400 drivers. Two points were removed from the
licenses of 74 drivers and three points from 2 drivers.
Points can be deducted when receiving a ticket from police or when received by mail after cars
caught breaking traffic laws on cameras installed along roadsides.
Source: Mongolia.GoGo.mn
WEEKEND TRAFFIC RESTRICTIONS FOR TSAGAAN SAR
Ulaanbaatar has rolled out special driving regulations during Mongolia's three-day lunar New Year
holiday, Tsagaan Sar. The restrictions come in response to expected traffic congestion in
Ulaanbaatar in the week before the holiday season. From 10:00 to 20:00, drivers with license places
ending in even digits and zero will be permitted to drive on Saturday, while those with odd digits
will be permitted on the road for Sunday. The regulations first launched on 30 and 31 January.
Traffic restrictions will not apply on the actual days of the festival, from 9 to 11 February. Schools,
banks and state offices will resume normal operations on 12 February. Public transportation to
communities surrounding Ulaanbaatar will be provided from 9 to 11 February.
Source: UB Post, Mongolia.GoGo.mn
INS FOLLOWS UP ON FAILED MOTION TO DISMISS PM—REPORT
The Institute for National Strategy (INS) has published a follow-up report on a motion rejected by
Parliament on 28 January for the dismissal of Prime Minister Chimed Saikhanbileg. Written by
Cameron McRae, president of INS and executive director at Tarva Investment and Advisory LLC and
a recent addition to the Business Council of Mongolia's Executive Committee, under the INS banner
has analyzed Mongolia’s political, economic and investment arenas.
McRae served as the chief executive officer of the Oyu Tolgoi copper-gold mine from 2010 to 2013.
Read the full article here.
Source: Institute for National Strategy
WHY DID RUSSIA JUST WRITE OFF 97% OF MONGOLIAN DEBT?—EDITORIAL
Last Week, Russia passed a government-to-government agreement between Russia and Mongolia
that settled 97 percent of Mongolia’s outstanding debt of USD174.2 million. The debt forgiveness
has been a long time coming and has roots in the bilateral relationship between the two neighbors
dating back to the early 1990s.
Russia has addressed similar issues concerning outstanding debts with several Cold War-era client
states and partners, including Syria, Cuba, Iraq, North Korea, Libya, and Afghanistan. Notably,
Russia had agreed to the debt forgiveness arrangement with Mongolia at a time of higher global oil
prices and less pressure on its own budget. The debt write-off does open interesting opportunities
for Moscow as well. Mongolia is a major importer of refined petroleum, which comprises 22 percent
of its overall imports as of 2013.
Ankit Panda is an editor at The Diplomat. He writes on security, politics, economics, and culture.

14. Source: The Diplomat
ISIS, EXPLAINED BY A MANIACAL BUDDHIST WARLORD
As the debate over the true relationship between ISIS and Islamic tradition grinds on, historians of
20th-century Mongolia must be wondering about talks of Baron Roman Fedorovich von Ungern-
Sternberg. In the early 1920s, Ungern-Sternberg carved out a religiously inspired pseudo-state based
in Ulaanbaatar while terrorizing its inhabitants with sadistic public murders. His story is instructive
for anyone trying to understand what’s unique and what isn’t about the Islamic State.
Ungern-Sternberg envisioned “a great State” in which “the wise religion of the Buddha shall run to
the north and the west.” But the cruelty and capriciousness of the baron’s rule ultimately alienated
his followers, and his messianic worldview did not prove conducive to sound strategic thinking. It is
also worth recalling that it was the victory of Soviet forces and the establishment of the Soviet-
allied Mongolian People’s Republic in 1924 that finally brought an authoritarian form of stability to
the region.
Source: The Atlantic
WHY SKY BURIALS ARE VANISHING IN MONGOLIA—PODCAST
In an episode of Generation Anthropocene, student reporter Reade Levinson travels to Mongolia in
hopes of witnessing a practice known as sky burial, in which the bodies of the dead are prepared for
the afterlife. But as Reade learns on her journey, in Mongolia the forces of urbanization,
modernization and environmental change may be threatening this sacred ritual.
Source: Smithsonian.com
BCM UPDATES:
ANNOUNCEMENTS
1ST ANNUAL BCM SUMMIT, APRIL 21, BLUE SKY HOTEL
The Business Council of Mongolia (BCM) will host its first Annual Business Council of Mongolia
Summit on 21 April at Blue Sky Hotel and Tower in Ulaanbaatar. The forum will provide a venue for
a wide spectrum of informative, meaningful and innovative topics important to Mongolia's business
community. The focus will be on business strategies to cope with survival in the economic
downturn, innovative business trends and more.
BCM continues to maintain a strong membership base consisting of nearly 240 business
stakeholders—both national and international—including international financial institutions,
embassies and educational institutions. BCM has more than 350 volunteers leading its 8 working
groups and lending their wealth of experience in business and education.
Registration is MNT100,000 per head for members, compared with the regular fee of MNT120,000.
Save money with the early bird rate of MNT80,000 for members and MNT100,000 for non-members
by registering before 21 March. For more information, email Saruul at saruul@bcmongolia.org.
_________________________________________
MONGOLIA MINING FORUM, 8 MARCH, AT PDAC, TORONTO
Mongolia will promote the progress made in its mining and geology sectors in recent years on 8
March at PDAC, the world’s leading annual International Convention, Trade Show & Investors
Exchange for minerals exploration and mining scheduled on 6 to 9 March in Toronto.
The Mongolian delegation led by the Ministry of Mining and Mineral Resources Authority (MRA) will
consist of representatives of the ministry, major mining companies including Erdenes Mongol, MRA,
Invest Mongolia Agency, the Petroleum Authority, and more. A working group led by MRA will
provide Mongolian businesses the opportunity to promote their projects to investors and have one to
one meeting with potential investors during this world leading international mining investors’
conference.
For more information, call Tsetsegmaa, the senior manager at Invest Mongolia, at +976 88008161,

15. or email tsetsegmaa@investmongolia.com. You can also reach MRA External Affairs Officer Chinzorig
at +976 99000357 or cmunhuu@yahoo.com.
_________________________________________
MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE
Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the
Government Palace on 30-31 March.
This year's two-day event will be held under the theme “Lessons learned, Facing challenges and
Solutions pending,” where participants will seek to define the country’s current national and global
context, as well as outline alternatives for the promotion of future economic and social prosperity
in Mongolia.
BCM members will have 30 percent discount on registration. Register here, and send an email to
info@meforum.mn mentioning your BCM membership to receive your discount. For more
information email the same address or call 11 321051.
_________________________________________
MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX
The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year
from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will
feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors
representing the industry's major companies. Guest speakers from the government, universities, and
companies will lead seminars of the government policy for mineral resources and new laws focused
on mining and infrastructure in Mongolia.
For more information, contact Munkh-Erdene via email at munkh@minex.mn or call at 344488.
_________________________________________
7TH ANNUAL NATIONAL FORUM FOR RENEWABLE ENERGY, 6 APRIL, CORPORATE HOTEL AND
CONVENTION CENTER
The National Renewable Energy Forum, Mongolia's premier conference on the renewable energy
sector since 2008, will open on 6 April at the Hotel and Convention Center in Ulaanbaatar. At the
forum, speakers will review the initiatives and activities that address key issues for the renewable
energy sector.
Registration is MNT35,000, and there is no limit to the number of registrations. For more
information, email Myagmardorj at e.myagmardorj@gmail.com.
NEW MONGOLIAN LAWS
The following laws, amendments, annulments and addendum to laws were published in the latest
weekly Government bulletin. Unless otherwise decided by Parliament, they will take effect ten (10)
days after publication.
Date Laws
22.01.2016 Law on Election
Amendments to Law on Election automated system
Amendments to Law on Central election organization
Annulment of Law on Parliament election of Mongolia
Annulment of Law on Capital's civil representative council election
Annulment of Law on Aimag, sum, district civil representative council election
Annulment of Law on Presidential election of Mongolia
25.01.2016 Law on Mongolian Red Cross Society's legal status /revised version/
Annulment of Law on Mongolian Red Cross Society's legal status

16. Amendments to Law on Constitutional Court of Mongolia
Amendments to Law on Dispute settlement procedure at Constitutional Court
Amendments to Law on Parliament of Mongolia session order
Addendum to Civil law
Amendments to Law on Immovable property collateral
Please visit BCM's website, Legislative Working Group, for a summary of Mongolian laws. BCM
members who wish to access complete versions of the laws and regulations in Mongolian language
are welcome to email the BCM office.
KNOWLEDGE SHARING SESSIONS
"BCM KNOWLEDGE SHARING SESSION", 27 JANUARY, at SANTIS EDUCATIONAL SERVICES
The session was organized in partnership with our member Santis Educational Services on the topic
"Benchmarking standards for language acquisition in the workplace" with 12 members attending.
The session was led by Andrew Orgill, President of Inlingua Mongolia. Language Benchmarking is
how governments, organizations, and industries support the language acquisition of individuals in a
meaningful way. By using an approved objective English-speaking test as part of the screening
process organizations can greatly enhance their chances of commercial success. This test must be
reliable and have a global benchmark. Andrew discussed about these tests, which are now available
here in Mongolia, and why they have become an imperative in today’s marketplaces. During the
session, participants had an on-line connection with Inlingua head office in Switzerland to see their
virtual training facilities.
A BCM Knowledge Sharing Session was organized on 24 December at the Ulaanbaatar City Public
Library with 31 people from 19 member companies attending. The topic of this month's session was
“Implementation of System Certification Standards and its Benefits” facilitated by D.Otgonbat,
Director of Observe Consulting LLC. The topic covered System Certification standards, why they are
important for business and how to adopt and implement SC standards in Mongolia. The feedback
collected from attendees showed that 95% informed that their training needs were met; 60% said
their expected topics were fully covered; the remaining 40% informed their expected topics were
partially covered. 25% of participants proffered to extend the duration of the session. Otgonbat D is
a Certified Management Consultant and Lead Auditor for QMS (ISO9001), EMS (ISO14001), OHSMS
(OHSAS18001) and EnMS (ISO50001) certified by the Professional Evaluation and Certification Board.
Mr. Otgonbat also works as a national trainer for Sustainable Finance Initiative.
BCM ADVOCACY NOTES
Majority supports review of the “Long-Term Sustainable Development Mission of Mongolia” in
Parliament
On 13 January the State Structure’s Standing Committee was convened to discuss whether to submit
the draft resolution regarding the Long-Term Sustainable Development Mission of Mongolia 2016-
2030, initiated by ten members of Parliament namely B.Garamgaibaatar, S.Byambatsogt and
N.Battseregby and others, to the parliamentary session for review. At the Standing Committee’s
meeting, MP S.Byambatsogt, one of the initiators of the draft law, delivered a presentation on the
draft resolution. 66.7 percent of the members who participated in the meeting agreed to submit
the draft resolution for review at the parliamentary session. Review of the draft resolution is billed
as the 10th issue on today’s parliamentary session.
Source: www.parliament.mn
Parliamentary draft resolution of “Long-Term Sustainable Development Mission of Mongolia”
On 4 January the Chairman of the State Great Khural (Parliament) Mr. Zandaakhuu Enkhbold was

17. presented a parliamentary draft resolution regarding the Long-Term Sustainable Development
Mission of Mongolia 2016-2030. The presenters were the Chairman of the State Structure’s Standing
Committee MP A. Bakei, Vice-Chair of the Democratic Party Caucus MP S. Odontuya, Chair of the
“Justice Coalition” at the Parliament MP N. Battsereg, and MP S. Demberel. To view the draft
resolution in Mongolian language, please click here.
Draft Labor Law (Draft Law) is returned to the Government
The Draft Labor Law (Draft Law) was returned to the Government by the Parliament. No further
meeting was convened by the Draft Law working group and the draft law is on hold. The Draft Law
working group is not intending to re-submit the Draft Law to the Parliament in the near future.
On 10 December in the plenary session of the Parliament it was decided to return the Draft Labor
Law (Draft Law) to the Government based on multiple conceptual and editorial comments provided
by a wide range of stakeholders. Furthermore, the working group is aiming to submit the amended
Draft Law to the spring session of Parliament, which will be held around April 2016.
The Economic Council, established by the decree of the Prime Minister Ch. Saikhanbileg in 2015, is
currently working on the draft Law on Arbitration. BCM’s Legislative Working Group reviewed the
draft law and provided key comments. In its scheduled meeting on Friday, December 11, the
Economic Council was positive toward BCM's comments.
For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.
BCM WORKING GROUP NEWS
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th
floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan
Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate
Capital Ltd and Mongolian Bankers’ Association.
Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes
proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG
(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working
towards increased foreign investment in Mongolia’. It was suggested by members to include more
emerging players in the capital markets such as the insurance industry and most importantly engage
other stakeholders from government entities with the Working Group. Updates were given on the
developments of ‘custodian banking’ and how the WG can leverage their efforts towards sound
regulations for custodian banks.
On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the
Treasury, Oyu Tolgoi will deliver a presentation on project financing.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Risk Working Group
BCM’s Risk Working Group’s 2016 kick-off meeting was held on Thursday, 21 January at Suite 101,
12th floor Express Tower, with 14 members in attendance, representing Mandal General Insurance,
MIG Insurance, Deloitte Onch Audit, XacBank, Wagner Asia, Iarudi, Golomt Bank and Bagatumurch
LLC.
Agenda of the meeting:
•16:00-16:10 Introduction and Opening remarks by Working Group Co-Chairs
•16:10-16:50 "Case studies on tax related cases tried at the Supreme Court of Mongolia"

18. (Bolorchimeg Kh, Lawyer ELC LLP)
•16:50-17:35 Discussion on proposed topics and finalize plan for 2016
Guest speaker, Bolorchimeg of ELC LLP, emphasized that the presentation is illustrative only and it
does not go into details or the legal implications. The presentation focused on: (i) Tax cases
resolved by the Supreme Court - last 3 years, (ii) Tax Dispute Resolution Process and (iii) Case Study
of Tuushin LLC vs Tax Inspectors of General Tax Authority. Members in attendance were interested
in the tax inspectors’ inspection process and what it entails, and in the statistics of the tax related
cases resolved by the Supreme Court.
Zaya Bolorbold, co-chair of the Risk WG (RWG) presented an overview of the last year’s activities
and introduced proposed plans for 2016. Working group members have supported the draft plan for
2016, with some members volunteering as main speakers from Deloitte Onch Audit, Bagatumurch
LLC. Given the current weather condition in Mongolia, it was decided that BCM to reach-out to the
NEMA and/or State Emergency Commission to request a presentation on the 'dzud* situation; it was
also agreed that the presentation can be complimented with Risk Working Group members’
presentation on how the impacts of the dzud will be translated into insurance claim. Next meeting
is scheduled for 3rd week of February.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Business Ethics Working Group
BCM’s newest and eighth Working Group, Business Ethic’s meeting was held on 18 January at the UN
House from 16:00 to 17:30 with 15 members in attendance.
Private sector: Atlas Copco, Mandal General Insurance; Government: Independent Agency against
Corruption (IAAC)
Other stakeholders: U.S. Embassy, UNICEF, Transparency International, World Vision, Extractive
Industry, Transparency International, Research Planning Institute;
Agenda of the meeting:
- Introduction of Working Group’s objectives
- Featured guest speaker: Anders Berglund, “The Business Code of Practice at Atlas Copco Group”
- Proposed topics and plan for 2016
The formation meeting focused on identifying collective objectives for the group and finalizing
topics for 2016. At the meeting, members volunteered to speak and some have proposed specific
deliverables as milestones as a group achievement for the year. It was decided to meet once every
two months and attract more local companies to hear their challenges in maintaining their integrity
in their respective sector.
For more information about this event, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
BCM’s Logistics Working Group
BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office
Building with 7 people in attendance representing Mongolian Express Co., Ltd. (known as Monex),
Representative Office of Mitsui & Co., Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-
Dolgoon Delgerekh LLC.
Agenda of the meeting:
• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”
• Discuss and plan WG’s 2016 activities
Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.
Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the
company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service

19. in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in
the delivery logistics within Ulaanbaatar.
Meeting participants were interested in the expansion plans of the company, such as delivery
services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave
comprehensive answers about the company’s plan for establishing cargo service between South
Korea and Mongolia initially and delving into other markets.
Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.
He again encouraged our members to read through the soft ideas laid out and provide comments.
Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,
so that members interested or operating in that topic area can actively participate and bring in
more insight.
The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the
questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM, at khulangoo@bcmongolia.org.
_________________________________________
BCM’s Energy and Environment Working Group
BCM's Energy and Environment WG meeting was held on 3 December, 2015 at EEIBC from 16:30-
18:30. The meeting was attended by 16 people with the following stakeholders:
Private sector: Newcom, Sopocco LLC, Areva Mongol LLC, Observe Consulting LLC, MCS Energy
Government: Ministry of Environment, Green Development and Tourism, Energy Development
Center of Ministry of Energy
Others: GGGI, WCS, French Embassy, Embassy of Canada
Guests: Sustainable Fiber Alliance
New members: D. Otgonbat, Observe Consulting LLC and Ch. Sarnai, Clean Energy Asia of Newcom
Group
Agenda of the meeting:
Discussion Topic: What's happening in Paris during Climate change events: What are the implications
for private sector?
Introduction and Opening remarks by Working Group Chair
"Introduction about Climate Change Conference/21 and Mongolia's commitment status" by D.Saruul,
Project Manager, Biennal Update Report to UNFCCC.
"Introduction about French Embassy and Overview about COP21 in Paris" by Raphael Droszewski,
First Advisor, Chief Adjoint de mission et Consul, The Embassy of France in Mongolia
Discussion on the topic among participants
Meeting minutes summary:
Bulganmurun Tsevegjav, Senior Program Officer of GGGI-Mongolia and Chair of the BCM’s Energy &
Environment WG (EEWG), introduced Jon Lyons, GGGI’s Country Representative to Mongolia, as an
upcoming Chair of the EEWG for 2016 during her absence.
Key points agreed during the meeting was to organize the next meeting in Jan or Feb 2016 following
up on the COP21 outcomes, updates on financial mechanisms, available funds and incentives for
private sector to develop low-carbon projects and to discuss its implications for the private sector.
For more information, please contact Bayarmaa Amarjargal, Vice Director at
bayarmaa@bcmongolia.org.
_________________________________________
BCM Education Working Group
BCM’s Education Working Group was held on 26 November 2015 at Executive Excellence
International Business Center, 10F Galaxy Tower from16:00 to 18:00. Fifteen people attended the
event representing foreign mission in Mongolia, private sector, universities and consultants of donor

20. funded projects:
Foreign Mission: Canadian Embassy;
Universities: National University of Mongolia, Mongolian University of Science and Technology
Private sector: PwC, Minter Ellison
Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education
and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The
Global Fund;
Agenda of the meeting:
16:05-16.10 Introductions
16:10-16:25 Update on Higher Education Reform Project activities (IRIM/Saha)
16:25-16.40 Update on Vocational and Technical Education Activities (VETP/Pascal)
16:40-17:10 Update on Labor Law Amendments, TVET Law Amendments: Higher Education
Amendments (IRIM/Saha)
17:10-17:30 Updates by members (FLP, Mandal)
Meeting minutes summary:
Opening remarks by Education Working Group Chair-Saha Meyanathan with passing of the
information about being selected as the best Working Group of the year 2015.
Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB
funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities
will be organized first week of December.
During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of
building the capacity of the professors, as they are the ultimate knowledge givers to the students.
The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher
education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to
highlight a few:
For more information about this event, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
‘BCM in the University Classroom’ series
Guest Speaker: Jon M. L. Lyons, Country Representative, GGGI,
Presentation topic: "Pathways to Greening Economic Growth in Mongolia and beyond"
Where & When: at the University of Humanities on 24 November 2015 and at the Institute of
Finance and Economics on 3 December 2015.
Jon M. L. Lyons, Country Representative, GGGI, gave presentations entitled "Pathways to Greening
Economic Growth in Mongolia and beyond" at the University of Humanities (UoH) on 24 November
2015 and at the Institute of Finance and Economics (IFE) on 3 December 2015. Over 80 senior
students attended the lecture at the UoH and over 70 students at the IFE.
Mr. Lyons, fluent in Mongolian, delivered his presentations in Mongolian. The presentations were
followed by question and answer sessions. While students at the UoH were curious about his recent
project on model green public kindergarten to be built in Songinokhairkhan district of Ulaanbaatar,
students at IFE were asking questions about the size of projects eligible for green finance,
monitoring and reporting requirements for donor-funded projects and vacancy at GGGI or possibility
of doing an internship there.
For more information, please contact Khulangoo, Working Group Coordinator at
khulangoo@bcmongolia.org and Bayarmaa Amarjargal, Vice Director at bayarmaa@bcmongolia.org.

21. WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
Presentations:
BCM Monthly Meeting, 25 January:
- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of
the Second Compact agreement between Government of Mongolia and the USA Millennium
Challenge Corporation -
“Development process of the second compact agreement between government of Mongolia and USA
Millennium Challenge Corporation”
- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”
_________________________________________
BCM Monthly meeting on December 7:
- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better
Leaders Through Education & Idea Exchange”
- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant
Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –
STOPP”
- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against
Corruption (IAAC) of Mongolia - “Introduction of IAAC”
- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”
_________________________________________
Mongolia Projects & Investment Summit Hong Kong, 16-17 November:
- Zoljargal Naidansuren, Governor, Bank of Mongolia, “The new equilibrium: reforms to sustainable
growth and savings"
- Narantuya Zagdkhuu, Chair, Financial Regulatory Commission of Mongolia, "Making Mongolia a
frontier again: financial market developments"
- Norihiko Kato, CEO, Khan Bank, "Where does the banking sector fit it?"
- Munkhsukh Sukhbaatar, Rio Tinto, "The way forward for Oyu Tolgoi underground"
- Bat-Uul Erdene, Mayor of Ulaanbaatar city, "City of Ulaanbaatar-2030"
- Matthieu Le Blan, EBRD Head office in Mongolia, "The importance of economic diversification and
import replacement opportunities EBRD's role in enabling progress"
- Tuvshintugs Batdelger, Economic Research Institute, "Transaction Cost of Conducting Business in
Mongolia: SME perspective"
- Oliver Thirlwall, Asian Real Estate Capital, "Distressed opportunities-banking and real estate"
- Kevin Trzcinski, Vice President Corporate Development at Worldwide Power & Technology (HK)
Ltd., "Mongolia as a destination for Scientific Research & Development"
- Randolph Koppa, President, Trade and Development Bank, "Challenges and Opportunities for
Growth"
_________________________________________
Mongolian Annual Risk Management Forum, 11 November:
- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -
Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group
- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western
International Mongolia
- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,
NPC&Mandal LLC
- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head
Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor
- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General
Insurance

22. - "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC
Mongolia
- "Corporate Crises Management" - G.Odbayar, Mining National Operator
_________________________________________
BCM Monthly Meeting on 2 November:
- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper
business”
- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -
“Introduction to Transparency International’s Business Principles for Countering Bribery”
- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor
Law”
_________________________________________
BCM’s “Knowledge Sharing” event at EEIBC on October 9
- Dr. Nigel Finch, Managing Director, Saki Partners, “Strategically Managing Mongolia’s Sovereign
Credit and Perception Ratings”
_________________________________________
Presentations at BCM Monthly Meeting on 28 September:
- Mend-Orshikh, Founder & President, New Media Group, “Sales and business opportunities using
BCM online platform”
- Steve Potter, Executive Director, Wagner Asia Group, “Corporate Ownership vs. Corporate
Responsibility: How a foreign owned company can contribute to the well-being of Mongolia. Case
Study: WAGNER ASIA Group”
- Cameron McRae, Chief Executive Officer of Tarva Investment and former CEO of OT LLC,
“Competitiveness in Central Asia”
- Saha Meyanathan, CEO, EEIBC and Chairman of BCM Education Working Group, “BCM and
Mongolia's Education & Capabilities Agenda”
_________________________________________
Presentation at Discover Mongolia 2015 on 3 September:
- S. Javkhlanbaatar, General Director, Invest Mongolia Agency, “Opportunity to invest in the mining
industry”
_________________________________________
Presentations at BCM Monthly Meeting on 24 August:
- Jennifer Bielman, Country Director, Mercy Corps Mongolia, "Mercy Corps in Mongolia - 15 Years of
Progress"
- Lee Cashell, CEO, APIP, “Overview of the Property Development Market”
- Anthony Woolley, Senior Associate, Hogan Lovells, “Legislative Update - 2015”
_________________________________________
Mongolia Reports:
- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”
- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform
Priorities (Sep 2015)
- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"
- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"
- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"
- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,
2015, “FDI Environment in Mongolia”
- Hogan Lovells, “Law on State Registration of Legal Entities”

23. _________________________________________
Interviews:
- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More
Effective"
- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)
- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,
August 20, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV
News, August 20, 2015;
- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview
SOCIAL NETWORKS
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 https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the BCM NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.
Social stats: BCM now has 11,127 fans on our Facebook fans page, 1,966 connections on
LinkedIn network, and 1,956 followers on Twitter.
_________________________________________
Website: According to Google Analytics report as of 26 January, the daily web traffic to BCM
website was 50 visitors with 70 sessions. 80% were from Mongolia, 5% from the USA and 3% from
Canada.
_________________________________________
BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column
featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and
proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study
Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia
Technology Innovations."
_________________________________________
The BCM NewsWire is used as source for the "MM Today" News program in English aired by Mongolia
National Broadcasting (MNB) on Fridays at 19:00.
_________________________________________
BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.
From January 2013 to February 2016 we posted a total of 109 news items related to BCM activities,
economic and business related updates.
_________________________________________

24. The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos
from BCM events.
As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy
newly introduced interactive features such as: edit your organization's profile information; post
vacancy notices from your organization; post cooperation proposals with other members or deals
you would like to offer to other BCM members; and start a forum and ask questions directly on the
web platform. Of course you can also visit our website for news information, interviews, event
photos, videos and announcements regarding BCM.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
December 31, 2015 *1.9% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.1% y-o-y; 4.8% Core, Ulaanbaatar City, December 31, 2015
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]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]
CURRENCY RATES – February 4, 2016
Currency
US dollar USD 2,017.42
Euro EUR 2,235.50
Japanese yen JPY 17.11

25. British pound GBP 2,939.08
Hong Kong dollar HKD 259.03
Chinese Yuan CNY 306.69
Russian Ruble RUB 26.36
South Korean won KRW 1.68