1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmmongolia.org
info@bcmmongolia.org
Issue 59, March 6, 2009
NEWS HIGHLIGHTS:
Business: Parliament begins debate on Oyu Tolgoi agreement; Windfall profits tax gets another
name, loses severity; Government meets gold miners, hints at flexibility; Ivanhoe
CEO not worried about finances for Oyu Tolgoi; MNMA releases its own investment
competitiveness index; Petro Matad strikes it rich in Matad Block XX; Leighton wins
contract for Ukhaakhudag coal mine; Western files new technical report on
Gurvanbulag; Togoot discovery “reinvigorates our exploration efforts”, says Entrée
CEO; Australian miners sniff around Mongolia; Sedgman to build Mongolia’s first coal
processing plant; MEC to begin mining in Khusuut this year; Attendance drops at
world’s biggest mining event; BHP Billiton cuts 40% of staff at head office, to sublet
space; Rio MD joins Chinalco in holding firm on current package; British shareholders
ponder Rio boardroom coup; Australian politicians question Rio-Chinalco deal; First
two “monster” trucks reach Ukhaakhudag; Polo gives USD5,000 for Zavkhan herders;
Genco plans 67-story buildings for Bayangol Hotel; MPs reject Erdenet plea for help;
Companies in Khovd asked to pay dividends.
Economy: Parliament passes USD1.1 billion stimulus plan; IMF sees crisis shifting to poor
countries; MPs have many questions on extending guarantees to more bank deposits;
Cashmere prices rise; Industrial output falls from December; External trade figures
show surplus in January; Every ministry, agency will decide on salary cut for its
staff; Prices rise 20.7 percent yoy; Money supply falls 2.5 percent in a month; Fall in
both rail and air transport; Other countries to help UB Railway carry more freight;
Currency exchange centers to have new status; Hospitality sector earns MNT54.2
billion; No reduction of import duties on machinery, or in social insurance payments;
Training for actuaries begins on March 14.
Politics: Economic factors alone did not cause economic crisis, President feels; Party leaders
and President to meet more often; MIAT to reduce number of flights; 300,000
Chinese came as tourists, but stayed on to work; No livestock export; 7 agency
directors appointed; Meteorology MoU signed with North Korea; EITI still to decide
on Mongolia’s membership; Agreement signed to proceed with new power station;
Friendship Medal to Walt Jenkins; President remembers centenarians; 70 percent of
drinking water is contaminated, claims NGO; Draft wants limited return of beer and
wine advertisements; Civil movement opposes mining in protected areas.
RECAP OF BCM MONTHLY MEETING
Chairman Laurenz Melchers began the BCM monthly meeting on February 23, with 55 in attendance,
by commending the work of those forming the TVET Working Group on vocational training.
Altogether 35 members are part of one BCM working group or another. Executive Director Jim
Dwyer reported 4 new members joining since the last meeting to push the number for the 2009
membership drive above 100. They were ELC, Millennium Challenge Corporation, Bonalex and the
Luxembourg Ambassador to Mongolia. The 100th
member for 2009, Bonalex, was given a memento.
Mr. Do.Ganbold, President, Mongolian National Mining Association (MNMA), provided an update on
key developments in the mining sector. The Government‟s indication that it was willing to annul
the windfall profits tax on gold was a “positive development”, but the Oyu Tolgoi investment
agreement was facing some roadblocks after a meeting of the National Security Council had called
for some changes in the draft.
2. Mr. L.Orgil, Foreign Policy Advisor to the President, explained that the Mongolian head of state had
more say in matters of foreign policy than on domestic issues. Mr. Orgil had accompanied President
Enkhbayar to the World Economic Forum in Davos and reported on the bilateral and multilateral
interactions there on pressing issues such as the financial crisis and climate change.
Reporting on U.S.-Mongolia relations, U.S. Ambassador Mark C. Minton said they would continue to
be important in the Obama administration and Secretary of State Hillary Clinton was well aware of
Mongolia‟s role of a regional facilitator. He guaranteed the continuation of various U.S. programs
here and hoped bilateral cooperation would expand.
Mr. Byung Kyoon Jang, Resident Representative, International Monetary Fund, gave a presentation
on the current economic situation in Mongolia and possible donor support. He said the IMF had
explained it was imperative for Mongolia to plug its budget deficit and even though it was “difficult
to cut too much spending in one year”, talks between an IMF mission and the Government had
made “substantial progress” and donors would meet as soon as an agreement was reached. For Mr.
Jang‟s slide presentation, please visit BCM‟s website, Articles/Reports on Mongolia.
For a fuller account of the meeting, please visit BCM‟s website, BCM News & Press.
BUSINESS
PARLIAMENT BEGINS DEBATE ON OYU TOLGOI AGREEMENT
Parliament on Thursday began discussions on an investment framework for the Oyu Tolgoi copper-
gold mine, a joint venture project of Canada's Ivanhoe Mines and Rio Tinto. Two days have been
tentatively allotted for the debate but it may very well go on into next week, given the importance
of the agreement in lifting the country‟s economy out of an ever-deepening hole and also the
emotions the terms of the agreement continue to generate among lawmakers and the general
people.
Earlier, in what is widely seen as the last step in formalizing the agreement before it is ready to be
signed, the Government held a special meeting on Monday and decided to submit to Parliament the
draft as it had been revised in line with some National Security Council (NSC) suggestions. It is
believed that these changes have been discussed with the investors and the draft before Parliament
incorporates the fresh terms that have been agreed upon. Neither the Government nor Ivanhoe
Mines will talk about what changes the NSC wanted or about what the finally agreed provisions are,
but it is believed the changes relate to the term of the initial agreement, and the rise in Mongolian
ownership once that term is due for extension.
The mood on both sides is upbeat. Earlier in the week, Mr. B.Ariunsan, Mongolia‟s Deputy Minister
of Minerals and Energy, speaking through a translator in a meeting with investors in Toronto, said,
“This agreement is almost done. It will be approved by Parliament, I think, at the end of this
week.” At a separate presentation at the same conference, Ivanhoe CEO John Macken said, “We
hope that the Government will have something to announce very soon.” Still, a possibility of
Parliament seeking more revisions cannot be ruled out. To take effect, the agreement requires,
besides Parliamentary approval, also ratification by the boards of directors of Ivanhoe Mines and Rio
Tinto.
Source: Dow Jones Newswires, CNNMoney.com, Bloomberg.com
(The NSC‟s objections to the draft originally presented to it can be found in the detailed report on
the proceedings of the last BCM monthly meeting. See BCM website, BCM News & Press.)
WINDFALL PROFITS TAX GETS ANOTHER NAME, LOSES SEVERITY
The draft of the investment agreement on the Oyu Tolgoi mines now being debated in Parliament
has 16 major provisions and four appendices. The Mongolian state‟s 34 percent share will be
nominally held by the state-owned company Erdenes MGL. Ivanhoe Mines and Rio Tinto will bear all
costs of exploration, and Erdenes will pay back its share of the investment expenses adjusted
against dividends as they fall due.
A separate agreement will be made with Ivanhoe Mines whereby it will pay USD125 million as
deposit to the Mongolian Government. This issue was the most difficult during negotiations. Finally
it was agreed that the money would be paid in installments. The deposit will earn interest and
3. repayment is to begin after four years, again to be adjusted against taxes that will become due.
Another difficult issue was that of the windfall profits tax. The Government agreed to repeal the
tax and proposed to replace it with what it calls an “Additional Resource Fee”. The two sides are
now agreed that if Ivanhoe Mines makes a profit of more than 29.9 percent, the Government will
levy a 30 percent tax on that profit.
The initial agreement will be for 30 years. After that the Government will increase its ownership to
50 percent.
Ivanhoe Mines has a license valid for 30 years. This can be extended twice, for 20 years each time.
During construction at least 60 percent of the workers will be Mongolian. This will rise to 90 percent
when production begins.
A copper smelter will be set up in Mongolia. The Government will nominate three members of the
Board and Ivanhoe six.
Source: en.News.mn
GOVERNMENT MEETS GOLD MINERS, HINTS AT FLEXIBILITY
In a significant policy change, the Mongolian Government recently reacted favorably to a suggestion
from gold mining companies to repeal the 68 percent windfall profits tax. At a meeting between
representatives of miners and Government leaders organized by the Central Bank and the Trade and
Development Bank to devise ways to significantly increase the volume of gold mining so that foreign
exchange rates could be stabilized, Prime Minister S.Bayar indicated that he would ask the
Government to adopt alternative ways of increasing revenue and also asked miners to sell more
gold to the Central Bank. The around 100 participants at the meeting included members of
Parliament and the Government, the President of the Central Bank, executives of most of the larger
gold companies, and representatives from international organizations such as the ADB, the IFC,
Goldman Sachs and many others.
Mr. Bayar said the Government did not consider being flexible to be a sign of weakness and was
always willing to reconsider an earlier decision in the national interest. He asked Minister of Mineral
Resources D.Zorigt to work closely with miners to assess the impact of the current Mineral Law and
the windfall profits tax so that, if necessary, these could be amended.
There was a 15-fold rise in the volume of gold extraction between 1990 and 2000. When
international prices went up, a 68 percent windfall tax was imposed in 2006 on copper and gold.
Taxes from gold rose in 2007 from 2006, but then there was a sharp drop in 2008, with tax revenue
decreasing almost by half. This has impacted the economy very badly. MNT 920 billion has accrued
to the state budget from this tax so far, of which just 6 percent has come from gold mining
companies. Mr. D.Batbayar who initiated the windfall tax now feels it should apply only to copper
as taxing gold leads only to evasion. The mining industry has always been very vocal against the 68
percent tax, and now the Government is admitting that the tax has not really achieved much. The
Government also wants commercial banks to lend money to gold mining companies.
Source: en.News.mn, Montsame, www.tdbm.mn
IVANHOE CEO NOT WORRIED ABOUT FINANCES FOR OYU TOLGOI
Ivanhoe Mines CEO John Macken feels financing for its Oyu Tolgoi copper and gold project in
Mongolia should not be a problem, despite tight credit conditions and a cost-cutting campaign at
strategic partner Rio Tinto. "When you have a long-life mine like this, I think financing will be… I
won't say it will be easy, but there's lots of opportunity," Mr. Macken told the annual Prospectors
and Developers conference in Toronto on Monday.
He also said the company hopes to soon ink an investment agreement with the Mongolian
Government for the project. "It's difficult times out there for the miners, but it's equally difficult
for the countries, and I think there's lot of... common sense coming to the whole issue," Mr. Macken
said.
With capital costs expected to hit USD3 billion, Ivanhoe will require both financing and help from
partner Rio, which holds about 10 percent of Ivanhoe, and can increase its stake to more than 40
percent by meeting funding objectives. Mr. Macken said Rio has remained enthusiastic about Oyu
Tolgoi and he welcomed the Chinese investment in Rio.
4. Source: Reuters.com
MNMA RELEASES ITS OWN INVESTMENT COMPETITIVENESS INDEX
The Mongolian National Mining Association (MNMA) has just released the results of a survey
conducted by its Policy Research Center to assess the investment attractiveness and
competitiveness of the Mongolian mining and minerals sector. The index, which awards Mongolia
0.34 on a scale where the maximum is 1, reflects how foreign and domestic investors operating in
Mongolia view the current and future investment environment in the country. It is intended to
contribute to the development of equitable minerals policies and regulations, and to generating
more favorable opportunities for investments.
The index is a composite one that comprises 15 sub-indices such as overall economic and political
conditions, institutional quality and government effectiveness, infrastructure development,
availability and quality of geological database, soundness and stability of mineral legislation, level
of mineral taxes, fees, and charges, environmental regulations, local community relationships, and
security. MNMA hopes to update the index every year.
Source: The Mongolian National Mining Association
PETRO MATAD STRIKES IT RICH IN MATAD BLOCK XX
Petro Matad, which has been exploring oil in Dornod province since 2006, has announced that the
most promising of its 11 drillings is in Davsan Tolgoi of Matad Block XX. Earlier 2D seismic survey
there had indicated potential reserves of 19MMbbl at Greater Davsan Tolgoi, together with Davsan
Tolgoi West and Davsan Tolgoi North, but more recent 3D data have raised the total possible
reserves to 58 MMbbl.
Petro Matad is the parent company of a group that will follow up exploration with petroleum
production. Its present work in Matad Block XX in the east of Mongolia is governed by a product
sharing agreement with the Government of Mongolia.
Source: Niigmiin toil; www.petromatad.com
LEIGHTON WINS CONTRACT FOR UKHAAKHUDAG COAL MINE
Leighton Holdings has announced that it has been awarded a mining contract worth USD193 million
for the Ukhaakhudag coal mine project. Officials of the Australian conglomerate say the mine has
coal valued at USD1.5 billion, and is to be excavated over the next six years. The deposit is located
in the South Gobi region, some 200 km from the China border and 540 km from Ulaanbaatar.
Leighton has been working with Energy Resources, the owner of the Ukhaakhudag coal deposit, for
about two years. Mr. Hamish Tyrwhitt of Leighton Asia said about the contract, "We have developed
a strong relationship with Energy Resources through working together on the development of the
mine and look forward to continuing to work in the team environment that we have established for
this project.” Observers note that the contract moves Leighton towards its goal of becoming a
global mining contractor.
Source: Mongolia-web.com
WESTERN FILES NEW TECHNICAL REPORT ON GURVANBULAG
Western Prospector has filed an updated Technical Report for the Gurvanbulag Uranium Deposit. A
January press release had earlier announced Western‟s new estimate for the resources and an
initial estimate for reserves together with the completion of the positive Definitive Feasibility
Study.
Source: Marketwire, www.westernprospector.com
TOGOOT DISCOVERY “REINVIGORATES OUR EXPLORATION EFFORTS”, SAYS ENTRÉE CEO
Entree Gold Inc. has termed discovery of bituminous to anthracite coal on its 100%-owned Togoot
license in Mongolia as one of the highlights of its 2008 exploration results. Mr. Greg Crowe,
President and CEO, commented, "This discovery has reinvigorated our exploration efforts on
5. Lookout Hill west. This year's program is designed to expand the known zones of coal mineralization
and locate additional targets."
Entree has budgeted approximately USD2.6 million for the first phase of exploration in 2009. Core
and reverse-circulation drilling is anticipated to resume in early March 2009 and will focus on
continued testing of the Nomkhon Bohr target along strike, and the search for additional targets in
the unexplored area to the west.
The company is also evaluating new opportunities throughout the region and elsewhere in Asia, as
it seeks additional opportunities to utilize its expertise in exploring for deep and/or concealed ore
deposits. With a treasury in excess of CAD50 million, it is well funded for future activities. Ivanhoe
Mines and Rio Tinto are major shareholders of Entree, holding approximately 15% and 16% of issued
and outstanding shares respectively.
Source: Entree Gold Inc.
AUSTRALIAN MINERS SNIFF AROUND MONGOLIA
Sydney-based White Energy is expected to soon announce a deal to use its patented coal upgrading
plants with Mongolian coalminer Mongolian Alt Corporation and Japanese investor IB Daiwa. The
partners will study the feasibility of building a plant near the Chinese-Mongolian border. The deal
ties into a merger of its Asian operations with US-listed fund Asia Special Situation Acquisition Corp
that will put AUD170million into a joint venture company targeting opportunities in Asia. White
Energy shareholders vote on the deal shortly.
Paladin Energy has also sniffed around Mongolia, looking at state owned uranium deposits. At least
one private Australian outfit is also making good progress on its mineral interests in the country.
Source: Australian Financial Review
SEDGMAN TO BUILD MONGOLIA’S FIRST COAL PROCESSING PLANT
Mineral processing solutions provider Sedgman has won an AUD20 million contract from Energy
Resources to provide design, procurement and construction management services for a new coal
handling and processing plant (CHPP) at its UHG mine in the South Gobi region of Mongolia.
Sedgman Coal‟s Chief Operating Officer Steve van Barneveld says the contract is the first won
through the company‟s Beijing office, which opened in mid-2008. “This is a significant milestone for
us providing tangible evidence that our international expansion strategy continues to deliver great
results,” he says. Sedgman will start work on the design immediately.
Managing Director Mark Read says the UHG project is strategically important to Sedgman given the
region‟s future development potential. “This coal processing plant is the first to be built in
Mongolia and will set the standard for future mine developments there,” he says. The 800-ton-per-
hour phase-one CHPP is due to be completed in 2010. Production is planned to double on
completion of a new rail link to China in 2011.
Source: Queensland Business Review
MEC TO BEGIN MINING IN KHUSUUT THIS YEAR
Mongolia Energy Corporation (MEC) is forging strongly ahead with its plans to begin mining its
premium coking coal at its Khushuut Mine in Khovd Province, western Mongolia in 2009, despite the
global financial crisis hurting the global mining industry. Strongly committed to meeting the coking
coal demands of China‟s steel manufacturers, MEC plans to commence 3 million ton per annum
production expanding to 8 million tons per annum in or around 2012.
Mr. James Schaeffer, CEO of MEC, says, "Exploration of 600 out of its 330,000 hectares of coal,
ferrous and non ferrous metal concession areas in western Mongolia has demonstrated 150 million
tons of surface mineable coking coal resources. This is a commodity with established demand.”
After obtaining its coal, ferrous and non ferrous metal concession areas in western Mongolia, the
exploration process entailed MEC bringing together Chinese exploration companies, local Mongolian
labor and John T. Boyd Company, a mining audit and consultancy firm to provide support and
supervision for the project.
Source: www.yourindustrynews.com, Steelguru
6. ATTENDANCE DROPS AT WORLD’S BIGGEST MINING EVENT
Attendance at the world‟s largest annual mining convention this week did not match the record
20,000 participants last year, when prices for metals including copper and gold rose to records. The
Prospectors & Developers Association of Canada said this mirrored the fortunes of the global
industry. “The characteristics of this downturn are unique, as each one seems to be, but this one is
unprecedented,” PDAC Executive Director Anthony Andrews said in an interview. “This financial
crisis is really impacting our industry, and in particular, the juniors,” or small-scale exploration
companies, which make up the majority of participants.
The 82-company Bloomberg World Mining Index has fallen more than 65 percent in the past year as
shares for global metal producers have plunged by more than half. The four-day PDAC convention,
which began March 1, brought buyers and sellers of mining companies and properties together to
facilitate acquisitions in the industry. The keynote address was delivered by Mr. Marc Faber, the
investor known as Dr. Doom, who said the recent economic turmoil may be just an “appetizer” of
things to come. Exploration companies promoted their discoveries as base-metal companies cut
output and halt development of new projects because the credit crisis has made funding more
scarce and the global economic slowdown has cut demand for metals.
Copper, zinc, nickel, aluminum and lead have all declined more than 50 percent on the London
Metal Exchange in the past year. Gold, which is up about 8 percent this year, surged last week to
an 11-month high of USD1,007.70 an ounce in New York as investors sought to shield capital from
financial turmoil.
“It‟s a two-tiered market, gold and the rest, and that would be expected to be the case for the
next six months and possibly 12 months,” Mr. Tony Robson, a Toronto-based analyst said. Goldman
Sachs last week raised its 2009 forecast for gold 4 percent to USD911 an ounce to reflect higher
investment demand. The forecast for next year was raised 4 percent to USD951.
Source: Bloomberg.com
BHP BILLITON CUTS 40% OF STAFF AT HEAD OFFICE, TO SUBLET SPACE
BHP Billiton Ltd., the world‟s largest mining company, is cutting about 40 percent of staff numbers
at its Melbourne headquarters as it moves some roles nearer to mining operations. Its
spokeswoman, Ms. Samantha Evans, declined to say how many staff work at the office now. BHP
may sublet six floors of the building it leases, halving its commitment, the Australian Financial
Review has said, citing unidentified people.
BHP, Rio Tinto Group and Anglo American Plc are cutting jobs as the global recession curbs demand
for commodities. BHP said in January it would slash 6,000 jobs globally.
Source: Bloomberg.com
RIO MD JOINS CHINALCO IN HOLDING FIRM ON CURRENT PACKAGE
Rio Tinto has joined Chinalco in stating that rather than alter the controversial USD19.5-billion
refinancing package with China's state-owned Chinalco to cut all shareholders in, its intention is to
proceed as is, effectively staring down the particularly vocal critics among institutional
shareholders in its home town of London. On the second day of meeting with Australian institutional
shareholders on the deal, Rio Managing Director Tom Albanese said in Sydney on Wednesday, "The
package is what we have both negotiated and we just want to stick with that." That echoed the
comment from Chinalco boss Xiong Weiping on Monday that Chinalco did "not want to see any
changes to this packaged agreement". Both men were responding to calls for other shareholders to
be included in the USD7.2billion convertible bonds component of the deal, or have it replaced with
a rights issue to all shareholders.
Mr. Albanese said Rio was continuing to meet its shareholders. "We are listening," he said. But with
each passing week, there was an "increasing recognition of the value equation, and certainly
greater recognition that in these economic times, a larger solution (the Chinalco deal) is better
than a smaller solution (a USD10-billion rights issue or a bigger and wider spread convertible bond
issue).
He said US investors were probably the most anxious about global economic conditions and, as a
result, were more receptive on the "quantum of the solution" proposed under the China deal. "Then
follow the UK investors, who are probably not quite as nervous, but growing more so. And I think
7. over the past three weeks we're probably seeing that same type of trend occurring in Australia," Mr.
Albanese said. He claimed that despite recognition that Rio had been driven into the compact with
Chinalco by the debt load it took on with the Alcan acquisition, the Rio board was "fully behind me
and our plans".
Source: www.theage.com.au
BRITISH SHAREHOLDERS PONDER RIO BOARDROOM COUP
Rio Tinto's major British shareholders are considering a boardroom coup to reinstate Mr. Jim Leng as
chairman and remove chief executive Tom Albanese. The Australian reported leading investors in
London were so disillusioned with the way executives have handled Chinalco's USD19.5 billion
rescue deal that they are considering ways to restore Mr. Leng to the helm of Rio so it can be
abandoned. Mr. Leng, the deputy chairman of Tata Steel, resigned from the board of Rio a month
after being named as its next chairman. He is understood to be willing to listen to shareholders if
they ask him to return, but will not directly seek to oust Mr. Paul Skinner, the present chairman,
according to a report in The Times in London.
Rio's biggest institutional shareholder, Legal & General, was not swayed by a meeting with Mr.
Albanese and has signaled that it would be active in overturning the deal, issuing a statement
saying shareholder pre-emption rights were paramount and it would seek an outcome acceptable to
all shareholders.
Source: news.com.au
AUSTRALIAN POLITICIANS QUESTION RIO-CHINALCO DEAL
The rescue plan that would see China's state-owned Chinalco invest USD19.5 billion in debt-laden
Rio Tinto Ltd. has sparked political debate, with warnings the deal could make Australia a branch of
Beijing's economy. The government says a decision on the deal will be made in the national
interest, but Green politicians oppose outright the tie-up, and some conservative politicians have
warned of future problems from selling off a major resource asset.
Australia's longest serving treasurer, Mr. Peter Costello, said he believed the plan would be
approved, citing the fact that Australia's treasury department has never recommended blocking
such a foreign takeover. But Greens Senator Bob Brown has launched a vocal campaign against the
proposed tie up, saying, "It is hazardous for our open and democratic nation to have the Beijing
dictatorship...take control of these companies and our resources."
"There is a real danger of Chinalco's bid to control Rio Tinto today extending to control over roads,
public transport or privatized water corporations in Australia tomorrow," said Mr. Brown. Rio Tinto's
activities span the world but are the strongest in Australia, where the company has 18 different
operations.
With mining firms across the Australian outback laying off thousands of workers in the face of
slumping minerals prices and canceled orders, there is support for the deal, too. "I think that the
proposal between Chinalco and Rio Tinto is absolutely vital to the strength of the Queensland
economy," said Queensland state premier Anna Bligh in urging the national government to approve
the deal to save mining jobs. Rio may cut up to 5,000 jobs in Australia.
Source: Reuters.com, Bloomberg.com
FIRST TWO “MONSTER” TRUCKS REACH UKHAAKHUDAG
The first two of an initial order of five giant Caterpillar Model 785C trucks arrived at the
Ukhaakhudag coal mine project near Tavan Tolgoi on March 3, according to the suppliers, Wagner
Asia. The trucks which were manufactured at a Caterpillar plant in Illinois, USA, were received in
Mongolia at Zamyn-Uud, the primary rail and road border port with China, and driven 650 km (about
400 miles) through the Gobi desert from there by Wagner Asia staff. The 785C can carry a payload
of 159 tons. It measures 36 feet long, 16 feet tall, and 19 feet wide.
Ukhaakhudag is owned by Energy Resources, Inc., a Mongolian company, that recently signed an
operating agreement with Leighton Mining Contractors. Leighton plans to have a total of 11 CAT
trucks on site by the end of 2009.
8. Source: www.wagnerasia.com
POLO GIVES USD5,000 FOR ZAVKHAN HERDERS
Polo Resources has donated USD5,000 to help herders in Zavkhan province in the face of a severe
winter. The company is routing the assistance through the Parliamentary Standing Committee on
Social Policy, Education, Culture and Science and the Zavkhan Province Civil Representatives'
Assembly. Speaking for the company, Mr. Antony Bainbridge expressed the hope that the help
would come in handy for the people in these harsh times.
Source: Onoodor
GENCO PLANS 67-STORY BUILDINGS FOR BAYANGOL HOTEL
The Genco Group plans to demolish both wings of Bayangol Hotel and construct two new buildings,
each with 67 floors. A contract has been signed with a Korean company and construction is
expected to start soon.
Source: Ardiin Erkh
MPs REJECT ERDENET PLEA FOR HELP
Parliament has rejected a plea from the Erdenet factory for financial support. Many MPs agreed
that the factory had all these years been a pillar of the national economy and had contributed
significantly to State revenue, but 93.8 percent of the members present voted against the proposal
to allot funds to the troubled factory. Another proposal, to allow the company more time to pay its
MNT84 billion tax dues since 2007, was also not approved.
Source: www.news.mn
COMPANIES IN KHOVD ASKED TO PAY DIVIDENDS
Officials of the Financial Regulatory Bureau, accompanied by a working group of the Government,
were in Khovd province during the national holidays, inspecting the accounts of seven companies to
see why they do not pay dividends to shareholders. Three of the companies could satisfy the team,
but the others will be subject to further investigation. Mongolians got to own shares in national
companies and factories in the 1990s, but many have never received any dividends. About
MNT920,000 in dividends were ordered to be distributed after the Khovd inspection.
Source: en.News.mn
ECONOMY
PARLIAMENT PASSES USD1.1 BILLION STIMULUS PLAN
Parliament passed on Tuesday morning, after about two weeks of debate, a USD1.1 billion economic
stimulus plan, locally called “the action plan to overcome the crisis”, that aims to ease an
economic crisis battering resource-rich Mongolia as a result of falling commodity prices. The
stimulus is intended to stabilize the country's banking system and currency while creating jobs
through road and infrastructure development. It also offers support for agriculture, livestock
production, and the energy sector, while seeking to boost exports of coal, iron ore and copper to
China. The stimulus unveiled in Parliament will likely take the budget deficit from a currently
estimated 6 percent of GDP to 12 percent, Prime Minister S.Bayar said. That, he said, would require
spending cuts while the Government seeks outside funding. "We have to raise funds outside of the
country as domestic funding resources for the plan are meager," Mr. Bayar said.
The Prime Minister said the Government was discussing obtaining a USD3 billion crisis loan from
China, but is also considering selling Government bonds on international markets, or taking a loan
from the IMF or the World Bank. However, borrowing would be more difficult since Mongolia's credit
rating has been downgraded, he said, and added another option is to get advance royalty and tax
payments from mining companies. MP Sh. Saikhansambuu said the Government would also increase
domestic gold production by supporting mining companies and opening up nature reserves for
exploration as part of the stimulus. "The price of gold is staying very stable and good, so this is one
9. sure way of increasing government revenue," he said.
It appeared many MPs had reservations about the plan, as despite the Government being a coalition
of parties that account for all but two members, only 62 percent of those present voted for it.
Source: www.iht.com, Montsame
IMF SEES CRISIS SHIFTING TO POOR COUNTRIES
The International Monetary Fund on Tuesday warned that the global financial crisis had shifted to
the world's poorest nations and 22 countries may need as much as USD25 billion in additional
funding in 2009 to cope with the downturn. In addition, the IMF has identified 26 countries,
Mongolia among them, that are "highly vulnerable" to the crisis but may not immediately need
additional financing.
"I foresee mounting problems for developing countries," IMF Managing Director Dominique Strauss-
Kahn said, calling it the "third wave" of the crisis, which has spread from financial and credit
markets into the consumer economy. He said he expected more countries to turn to the IMF for
financing and those with IMF aid packages to increase their borrowing.
The overall fiscal balance of developing countries is likely to deteriorate on average by 2.5
percentage points of GDP in 2009. Commodity exporters will be hardest hit, with a decline in fiscal
positions of about 5 percentage points of GDP on average. The Fund said it did not expect
commodity prices to recover while global activity is still slowing.
Mr. Strauss-Kahn said he was worried about the possibility of a humanitarian crisis if social programs
are affected by budget constraints. Domestic policy responses should include spending on social
programs to protect the poor, exchange-rate flexibility to facilitate the adjustment and vigilant
financial supervision.
Source: Reuters.com
MPs HAVE MANY QUESTIONS ON EXTENDING GUARANTEES TO MORE BANK DEPOSITS
Members of the Standing Committee on the Economy wanted answers and clarifications on various
issues from the Central Bank President L.Purevdorj as they met on Monday to discuss the draft
amendment to the law guaranteeing deposits in banks. Mr. Purevdorj said guarantees needed to be
extended beyond savings deposits to help people retain faith in the banking system. While the
amount of money in savings deposits has gone up by MNT15.2 billion since the guarantee was
announced, MNT29.6 billion or 4.6 percent of deposits in other accounts have been withdrawn. Half
the total deposits with commercial banks at present is in USD or other foreign currency. Unless
money in these accounts are also safeguarded, foreign currency outflow will continue, leading to
crisis in banking and in the economy. The draft also seeks to guarantee the money in current
accounts which are usually corporate accounts.
Mr. D.Baldan-Ochir (MPRP) was worried that foreign companies could suddenly withdraw their
money in Mongolian banks. He particularly mentioned the large amounts MobiCom has been keeping
in commercial banks and on which it gets interest. What happens if the company decides to take
away all this, he asked? Mr. Purevdorj said the Government cannot be seen as making any
differentiation between types of accounts if it wished to retain the money in banks. However,
MobiCom has agreed to pay a 2 percent penalty if it takes out the money before expiry of term.
Mr. D.Odkhuu (DP) wanted to know if the interest amounts will also be guaranteed. Will the
Government be responsible for paying the interest if banks raise rates arbitrarily to attract clients?
Mr. Purevdorj explained that interest rates have to be raised to neutralize the inflation rate.
Otherwise people will not save.
Mr. J.Batsuuri (MPRP) asked if the Government had ascertained the extent for which it was
accepting responsibility. Mr. G.Zandanshatar (MPRP) felt guaranteed deposits were likely to breed
irresponsibility in banking operations. Safeguards should be taken about this. To this Mr. Purevdorj
replied by referring to how Governments throughout the world are coming to the aid of big banks
reeling under the crisis. In any case, the draft includes the provision of penalties for irresponsible
management. He mentioned the actions taken against Anod Bank officials. The proposed guarantee
will also not apply to deposits of people with legal debts or convicted of any crime.
Among the many proposals offered were raising interest rates on MNT accounts higher than on
10. foreign currency accounts to counter the fall in MNT value, checking the rise of interest rates on
yuan accounts, and giving loans only in MNT. A working group was set up to consider the ideas and
revise the draft changes.
Source: en.News.mn
CASHMERE PRICES RISE
In the days since Tsagaan Sar the price of raw cashmere has begun to rise, going up to MNT30,000 a
kilogram from last year‟s low of MNT15,000. Prices have risen the most in Zavkhan and Gobi-Altai
provinces where they now vary between MNT32,000 and MNT29,000. Traders feel prices will rise yet
more and stay high this year.
Source: www.news.mn
INDUSTRIAL OUTPUT FALLS FROM DECEMBER
The total industrial output in January, 2009 was MNT165.5 billion at current prices, an increase of
11.3 percent over the figure for the same month last year. However, the industrial production index
showed a 9.2 percent drop from December, 2008. This was despite increased activity and output in
sectors such as collection, purification and distribution of water; electricity; thermal energy;
steam; textiles; and manufacture of transport equipment. The decline was the result of less activity
and production in other sectors like manufacture of electrical machinery and equipment; mining of
coal; extraction of crude petroleum and natural gas; mining of metal ores; and manufacture of
fabricated metal products, machinery and equipment.
Source: The National Statistics Office
EXTERNAL TRADE FIGURES SHOW SURPLUS IN JANUARY
External trade figures in January, 2009 show a surplus of USD42.7 million. Exports accounted for
USD170.4 million and imports for USD127.6 million in the total turnover of USD298.0 million. The
total was USD40.9 million more than in January last year, and USD106.2 million so than in December
2008. Compared with January, 2008, mineral products exports fell by USD60.5 million, and that of
raw and processed hides, skins, fur and articles thereof by USD3.4 million. In these 12 months total
export value decreased by 21.3 percent.
Price drops accounted for 91.4 percent of this. For example, the volume of copper concentrate
exports fell by only 7 percent, but their value decreased by 55.3 percent, as the average price of
copper concentrate per ton fell from USD1,280 in January 2008 to USD 615.2 in January this year.
Similarly, while the volume of zinc concentrate exports decreased by 69.4 percent, their value fell
86.8 percent, with its average price per ton falling from USD1,266.9 in January, 2008 to USD546 a
year later. The volume of gold exports increased by 10.4 percent but here the value also rose, by
13.6 percent, as the average price of gold in January, 2009 was 2.9 percent more than in January
the previous year.
Year on year, the import of mineral products fell by USD39.1 million, of auto, air and water
transport vehicles and their spare parts by USD16.3 million, of vegetable origin products by USD9.6
million, of base metals and articles thereof by USD6.1 million, and of textiles and food products by
USD1.7 million. Import of machinery, equipment, and of electronic and electrical appliances,
however, rose by USD0.9 million.
Source: www.nso.mn
EVERY MINISTRY, AGENCY WILL DECIDE ON SALARY CUT FOR ITS STAFF
The Prime Minister told Parliament that the budget had to be revised as, with export revenues
continuing to fall the budget deficit could well reach MNT500 billion. Much has changed, and all for
the worse, since the 2009 budget was approved by Parliament three months ago. Tax and foreign
trade revenue has fallen, import earnings have dropped, companies are finding it difficult to sell
products. He said the Government had increased its investments and raised salaries and allowances
when there was a commodity price boom. Now things are going the other way, and so the
Government suggested a 20% cut in state workers‟ salaries. With MPRP and DP groups in Parliament
joining the Mongolian Trade Union in opposing this move, the Government decided that all
11. ministries and agencies will be allotted 20 percent less money, and what expenses they decide to
cut will be left to them.
Mr. Bayar said he hoped “the crisis will end soon but we have to be prepared for the situation to
get worse before getting better. If we understand the nature of the problem clearly and work
together, we shall survive the difficult times.”
Source: www.news.mn
PRICES RISE 20.7 PERCENT YOY
Seen against January, 2008 the national consumer price index rose by 20.7 percent this January.
The rise was 0.8 percent more from December 2008. Prices in the education and communication
sectors were stable, while they fell 0.8 percent in housing, water, electricity and fuel sectors, and
1.9 percent in transportation. Prices in other sectors rose 0.2-7.3 percent. In Ulaanbaatar the
monthly price rise was 0.1-3.8 percent.
Source: www.nso.mn
MONEY SUPPLY FALLS 2.5 PERCENT IN A MONTH
The Central Bank reports that money supply (broad money or M2) at the end of January was around
2.5 percent less than in both December and January last year. Currency issued in circulation at the
end of January was 14.9 percent less than in December, 2008, but 2.4 percent more than in January
last year. Domestic currency deposits fell by 1.2 percent from December, 2008, and by 18.5 percent
from January of that year. On the other hand, foreign currency deposits increased by 12.1 percent
over December, 2008 and by 29.7 percent over January, 2008.
The amount of loans outstanding at the end of January rose by 25.2 percent over January last year.
Individual loans were up by 11.5 percent, those given to private sector businesses by 37.9 percent,
and those to financial institutions by 10.2 percent. Loans to public sector enterprises decreased by
26.4 percent. Meanwhile, principal in arrears increased 2.7 times and substandard and suspect
loans 2.9 times. Non-performing loans formed 7.3 percent of the total loans outstanding, a 4.2
percent increase in 12 months. “Reverse assets” stood at USD637.2 million or the import needs of a
little over 9 weeks. Compared with December, this was a drop of USD335.2 million or 34.5 percent.
Source: www.mongolbank.com
FALL IN BOTH RAIL AND AIR TRANSPORT
The fortunes of Ulaanbaatar Railway continue to ebb. Compared to January, 2008, this January it
carried 21.3 percent less freight and 28.8 percent fewer passengers. Domestic and international
freight traffic were 8.5 percent and 37.9 percent less respectively. The volume of transit freight
was 40 percent less than 12 months ago. All this meant the railway earned 35.8 percent less
revenue this January than it did last year.
Air transport, too, showed a decline in both freight and passengers. The figures for January, 2009
were 15.4 and 20.9 percent respectively less than in January last year. The volume of international
transport of freight and passengers decreased by 11.4 percent and the fall in the domestic sector
was 45.9 percent. The total revenue of air transport in January, 2009 was 8.9 percent less than in
January, 2008.
Source: www.nso.mn
OTHER COUNTRIES TO HELP UB RAILWAY CARRY MORE FREIGHT
Participants at the recent Transport Transit Mongolia conference in Beijing accepted a proposal
suggested by Ulaanbaatar Railway to establish centers to give logistic information about transit
freight in Erlian in China, Zamiin-Uud in Mongolia, and in border ports in Russia and Belarus. A
conference of the International Railway Cooperation Organization, held at the same time, agreed to
raise the Railway‟s export and import freight traffic by 1.2 million tons and transit freight by 40,000
tons this year. Using the railway is the shortest way between Southeast Asia and Europe.
Representatives of railways in Russia, China, Kazakhstan, Vietnam and North Korea attended the
conference.
12. Source: www.news.mn
CURRENCY EXCHANGE CENTERS TO HAVE NEW STATUS
The Financial Regulatory Committee has decided that from May currency exchange centers
operating in the Naiman Sharga area will be treated as non-bank financial institutions. The centers
will have to deposit a minimum of MNT50 million to continue in business.
Source: Niigmiin toil
HOSPITALITY SECTOR EARNS MNT54.2 BILLION
The total income of the hospitality sector in 2008 was MNT54.2 billion of which the share of hotels
was 59.8 percent or MNT32.4 billion. Hotels with three or more stars earned 62.5 percent of the
total income, 2-star hotels 2.3 percent, and one-star hotels and motels claimed the remaining 35.2
percent.
Restaurants accounted for 54.1 percent of the total income of the catering sector, cafes 23.5
percent, canteens 13.1 percent, and bars 9.4 percent.
Source: Montsame
NO REDUCTION OF IMPORT DUTIES ON MACHINERY, OR IN SOCIAL INSURANCE PAYMENTS
Parliament has not agreed to reduce by 5% the tax on imported equipment, machinery and machine
parts meant for small and medium industries. A proposal to reduce by 50 percent the amount
employers paid towards social insurance for their workers was also unable to get approval. Both
suggestions were meant to help employers and entrepreneurs.
Source: www.news.mn
TRAINING FOR ACTUARIES BEGINS ON MARCH 14
A training course leading to a professional diploma in the actuarial discipline will begin on March
14. This has been organized by the Mongolian Actuaries' Society and the National University of
Mongolia. The society was established in November 2008 and since then it has been cooperating
with state and private organizations, carrying out projects, and networking with foreign actuary
organizations.
The trainees who qualify as actuaries will provide professional services to insurance, banking, risk
management, health care, and similar organizations.
Source: Montsame
POLITICS
ECONOMIC FACTORS ALONE DID NOT CAUSE ECONOMIC CRISIS, PRESIDENT FEELS
President N.Enkhbayar came to Parliament on Tuesday morning to address members on the action
plan and on the proposed budgetary amendments. He said the views expressed outside Parliament,
especially by the Mongolian Federation of Trade Unions and other NGOs, should be carefully
considered. Economic factors alone could not be blamed for the spread of the crisis. Corruption and
the bureaucratic work ethic in all state organizations must be curbed to win the battle.
He said cutting state workers‟ salaries was not the right thing to do. “Every wage earner has some
others depending on him. Also, if incomes fall, consumption is bound to decrease and tax revenue
will drop. It could also lead to social instability. Expenses have to be brought down, though. One
way could be stringent control over stationary costs in every state organization.”
The President wanted tax revenue to be raised by levying a special tax on selected goods, and
widening the tax base. “Mongolia has 48,800 registered entities, but only about a quarter of them
pay tax. The Tax Office must be more active and vigilant,” he said. He wanted some relief for
taxpayers, too. For example, he said, companies that paid more than a certain amount in taxes
could be made eligible to pay less for certain services.
He warned that the budget deficit could reach 12 percent of the GDP and asked for further and
13. faster negotiations with the IMF, the World Bank and other donor organizations. Some agreements
already in existence should be pursued and implemented with speed. These include a USD300
million soft loan which China pledged in 2003 and for which an agreement was signed in 2006, as
also a USD250 million soft loan promised by the Japanese Government to build a new airport, and a
USD60 million grant from the ADB to build a road in western Mongolia. All arrangements should be
put in place to get the MCC grant of USD285 million released quickly.
The President asked Parliament and the Government to remember that the private sector produced
80 percent of the GDP and so deserved support. He also hoped the mining agreements would be
finalized soon.
Source: www.news.mn
PARTY LEADERS AND PRESIDENT TO MEET MORE OFTEN
At their meeting just before the Lunar New Year festival, leaders of political parties and the
President agreed that they should interact more frequently and more regularly and that parties
outside Parliament should also be asked to participate in this exchange of views about problems
facing the nation. The gathering was held once each in 2006 and 2007, and twice in 2008. The first
meeting of 2009 was held at the initiative of President N.Enkhbayar, and attended by Prime
Minister and MPRP Chairman S.Bayar, and other important leaders of the parties represented in
Parliament. They expressed their views on the economic crisis and supported Mr. Bayar‟s resolve to
find a way out of it with minimum scars. The Civil Will Party said that quick start of work at Tavan
Tolgoi and Oyu Tolgoi was the key to the solution to the crisis.
The President proposed another meeting in March where parties with no seats in Parliament would
also be invited so that their views on issues in the mining, economic and financial sectors were also
heard.
Source: Mongolia-business
MIAT TO REDUCE NUMBER OF FLIGHTS
The State-owned airline MIAT has decided to reduce the number of its flights following a sharp fall
in passenger traffic, seen as the consequence of the global economic crisis. No specific decision has
yet been taken on the routes or frequencies to be axed. However, MIAT is proceeding with plans to
introduce new flights to Singapore, London and Taipei.
Major repairs at the airport are to begin soon. This is likely to affect all night flights.
Source: en.News.mn
300,000 CHINESE CAME AS TOURISTS, BUT STAYED ON TO WORK
The tourism sector is unhappy that there is no way of knowing how many actual tourists come to
Mongolia every year. For example, there were 400,000 recorded “tourists” last year, but an
overwhelming majority of them, around 300,000 by general estimate, came from China on a tourist
visa but stayed on to work as cheap labor in the construction sector.
Tourism provided USD320 million to the state budget last year. There are 403 tour operators, 317
tourist camps and 320 hotels in Mongolia. A rough guess is that every tourist provides some income
for 20 people.
Source: www.news.mn
NO LIVESTOCK EXPORT
After a long discussion of issues affecting herders and other residents of the countryside and of
ways to help them in the present distress, Parliament recently voted not to allow export of
livestock. Earlier some MPs had said herders wanted to export animals, as there was no adequate
grazing for the present 42.2 million heads of livestock, and also because they stood to earn more
from this than by being restricted to the domestic market, but the majority felt this would lead to
meat prices rising and would be against national interests.
Source: Ardiin Erkh
14. 7 AGENCY DIRECTORS APPOINTED
Seven agencies have got new directors. The regulatory one of National Development and
Reconstruction will be headed by Mr. Ch.Khashchuluun, who is now principal of the School of
Economics at Mongolian National University. Mr. D.Amarsaikhan, director of the Mineral and Oil
Authority, becomes head of the Oil Agency, Mr. Do.Batkhuyag, a former Vice Minister for Road,
Transport and Tourism, of the Mineral Agency, and Mr. Ts.Bayarbaatar, now director of Thermal
Power Station-IV, of the Energy Agency. The last three are implementing agencies.
Source: www.News.mn
METEOROLOGY MoU SIGNED WITH NORTH KOREA
A memorandum of understanding was recently signed between Mongolia and North Korea on
exchange of information and cooperation in hydro-meteorology and related fields.
Source: Korea News Service
EITI STILL TO DECIDE ON MONGOLIA’S MEMBERSHIP
Mongolia is among 26 „candidate‟ countries that have asked for membership status in the Extractive
Industries Transparency Initiative (EITI). A decision has to be taken before March 2010 and so far
only Azerbaijan has been awarded membership. The status helps increase a country‟s international
rating and attractiveness to investors. It comes after positive assessment of a country‟s use of
revenues from the extractive industry and its compliance with international standards.
Source: ineko/abc.az
AGREEMENT SIGNED TO PROCEED WITH NEW POWER STATION
An agreement that will help ease several problems relating to implementation of the energy sector
policy 2009-2012, particularly building a new power station, has been signed between Ulaanbaatar
Mayor G.Munkhbayar and Minister for Minerals and Energy D.Zorigt. It covers issues such as
acquiring land for the new plant, a thorough environmental survey before construction begins, and
examining the possibilities of supplying the water for heating from the central water treatment
center. There are also plans to supply more power to the ger districts, to replace old pipes still
used for heating, and to encourage energy producers to use more environment-friendly technology.
Source: www.news.mn
FRIENDSHIP MEDAL FOR WALT JENKINS
Mr. Walt Jenkins, a longtime member of The North America-Mongolia Business Council and President
of the Zorig Foundation USA, was recently awarded the Friendship Medal by President N.Enkhbayar
in recognition of his many contributions to improving the lives of Mongolian young people and for
strengthening US-Mongolia ties. Mr. Jenkins founded and directs the Young Leadership Program in
Mongolia, and was the lead organizer of the on-going School Pairing Program that links American
and Mongolian high schools. He serves on the boards of the Arts Council of Mongolia and its US
counterpart, and the Ulaanbaatar-Denver Sister Cities Committee. Mr. Jenkins is also the owner and
President of Inclusive Solutions Inc. in the USA which is a BCM member. Several members from
Mongolia are expected to attend the 19th Annual General Meeting of the NAMBC in Washington, DC,
April 20-22. The theme of the meeting is "The Resurgent Mongolian Economy”.
Source: www.nambc.org
PRESIDENT REMEMBERS CENTENARIANS
President N.Enkhbayar sent gifts on the occasion of the Lunar New Year to all 42 centenarians
registered in Ulaanbaatar. At 108, Ms. Tumengiin Dogsmaa is the oldest of them. She is followed by
106-year-old Jargalyn Dolgor. Another group of elders, not yet 100 but just a year or two from the
landmark, was honored with gifts from Mr. G.Monkhbayar, Mayor of the city.
Source: Montsame
15. 70 PERCENT OF DRINKING WATER IS CONTAMINATED, CLAIMS NGO
Mr. D.Sukhbaatar of the NGO Civil Council has said that 70 percent of the drinking water in
Ulaanbaatar is contaminated. Poor sterilization and movement along old pipes lead to the presence
of toxic chemicals and bacteria. The water supplied to households comes from 30 meters under the
ground and there are also 114 water purifying centers, but only half of them work regularly. The
water delivered to ger districts by truck was much more dangerous. Tests of water from a regular
tap were found to have rust particles and traces of oil. Mr. Sukhbaatar advised people to drink only
boiled water, as most brands of “pure water” and water purifiers sold in stores were found to be 1-
35 percent contaminated.
Source: Ardiin Erkh
DRAFT WANTS LIMITED RETURN OF BEER AND WINE ADVERTISEMENTS
Concluding that the ban on alcohol advertising has not fulfilled its avowed purpose of reducing
consumption, six MPs have drafted amendments to the existing law. They want some restrictions to
stay and would allow only low-alcohol beer and wine to be advertised on radio and television and
this, too, only after peak evening hours, and up to a certain limit in the print media. Anything with
high alcohol content will not be allowed to be advertised.
Source: en.News.mn
CIVIL MOVEMENT OPPOSES MINING IN PROTECTED AREAS
A civil movement has strongly opposed the Prime Minister‟s proposal to allow mining in specially
protected areas. Mr. Bayar recently mooted the idea in Parliament when talking about new ways of
earning revenue. He received strong support from MPs Sh.Saikhansambuu and E.Bat-Uul. The
protesting national network against irresponsible mining was established by 10 NGOs and civil
movements such as the Khuvsgul Lake Keepers Movement, the National Green Movement of
Mongolia, and the Ariun Suvarga Movement.
Source: www.news.mn
ANNOUNCEMENT
WAGNER ASIA OPENS NEW AUTOMOTIVE CENTER
The grand opening ceremony of the new automotive center of Wagner Asia Automotive LLC, a
daughter company of Wagner Asia Equipment LLC and official dealer for Land Rover and Ford
Motors in Mongolia, will be held on March 6 at 2 p.m. at the company‟s premises at Saruul Center,
Narni Zam-55-1.
Construction of the facility began on May 17, 2008 and just about nine months later, it is ready to
be used as a showroom for vehicles, and a place offering all repair services and parts. There will
also be a cocktail reception at the same venue at 7 p.m. for invited guests only. A tour of the
center will be organized during the reception.
16. SPONSORS
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ECONOMIC INDICATORS
MSE WEEKLY REVIEW
The Mongolian Stock Exchange was open for two trading days during the week ended Friday,
February 27. The data for these two trading days will be added to this week's trading
information in BCM NewsWire’s issue of March 13, 2009.
17. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
January 31, 2009 *20.7% [source: NSOM]
* year over year (yoy)
CURRENCY RATES – March 5, 2009
Currency name Currency Rate
US dollars US 1554.84
Euro EUR 1947.13
Japanese yen JPY 15.69
British pound GBP 2188.90
Hong Kong dollar HKD 200.38
Chinese yuan CNY 227.22
Russian ruble RUB 42.92
South Korean won KRW 1.00
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.
