The document summarizes news from the Business Council of Mongolia newsletter. It reports on several stories related to Mongolia's mining and business sector: Turquoise Hill Resources' stock dropped 26% as rights to purchase new shares began trading, following the company's $2.4 billion rights offering to repay debt; Kincora Copper announced a $6.6 million write-down after Mongolia revoked 106 mineral exploration licenses, including two held by Kincora; Aspire Mining signed memoranda for potential purchase of 3.3 million tons per year of coking coal from its Ovoot project in Mongolia by Russian buyers.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 303 – December 6, 2013
NEWS HIGHLIGHTS:
Business
 “Idiots in Canada do not understand rights offerings,’’ says Friedland;
 Turquoise Hill sinks 26% as rights begin trading;
 Kincora announces significant write-down following license revocations;
 Aspire inks two memoranda for 3.3 million tons a year coal sales;
 Wolf highly encouraged by geochemical results;
 Newera Resources eyes large coking coal deposit in Mongolia;
 Petrovis Nano raises 92 fuel price by MNT 50;
 Fuel importers win lawsuit against Fair Competition Agency;
 International Investment Bank expands TDB partnership;
 G-Mobile given MNT 1.9bn debt repayment deadline by year end;
 Turkish-Mongolian consortium wins apartment contract;
 DW’s flagship channel now available on SkyMedia in Mongolia;
 UB considers sale of Tengis Cinema minority stake;
 MNU founder announces technology center for UB;
 Guildford Coal appoints interim CEO as managing director;
 XacBank wins 2013 “Best Bank” in Mongolia award;
 Rio Tinto pledges to cut capex by $6bn in two years;
 Miners preach gospel of restraint.
Economy
 Mongolia’s FDI in October declines 30% year-on-year, says Mongol Bank;
 Mongolia gains in corruption perception index as Central Asia flounders;
 Elbegdorj wants to cut state-owned firms by one-third;
 Mongolia looks to stock trading as trade with China sinks;
 Erenhot to Zamyn-Uud cargo road in service;
 China, Mongolia to open two more joint-supervision pilot ports;
 Mongolia calls on Russia to build roads, pipelines through to China;
 Employment is the focus at Mongolia Talent Network;
 Construction companies see ease in government relations;
 Mongolia sees 34 mines open since 2012 parliamentary elections;
 Tourist numbers fall 12.1%;
 Gold tax cut would bolster Mongol Bank reserves by $10bn, says mines minister;
 UB to begin collecting taxes for road maintenance;
 Meteorologist predicts warm temperatures to break next week;
 Chinese firms want to buy coal assets overseas, but on the cheap;
 A commodities rally isn't carved in stone.
Politics
 Herders demand new Tavan Tolgoi-Sainshand railroad plans;
 Mongolia doubles vocational student stipends;
 Foreign Minister attends NATO meeting;
 President awards Mongolian peacekeepers;
 Defense Minister visits Qatar;

2.  Mongolian National Broadcasting under investigation by state auditors;
 UB water agency falls into over MNT 10bn in debt;
 Open and smart government is for everyone, says Altankhuyag;
 Mongolia takes third, breaks records at World Memory Championship;
 First day of teachings for Mongolian Buddhists in Delhi;
 Potential Mongolian-Myanmar relations.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank International SOS
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Mongolian National Broadcasting Breakthrough PR
BCM MONTHLY MEETING NOTICE
BCM‘s monthly meeting for members will be on Monday, December 9, 2013 at 5PM at the KEMPINSKI
HOTEL KHAN PALACE, 2nd floor, Altai Ballroom.
The bilingual meeting will feature the following presentations:
- Call to Order/Business Council of Mongolia: B. Byambasaikhan, Chairman, BCM
- BCM Report: Jim Dwyer, Executive Director, BCM

3. - J. Bayarmagnai, Executive Director, Quality Supplier Development Center/USAID Grantee/ –
―Quality Supplier Development Center: Your partner for doing business in Mongolia‖
- L. Sumati, Director, Sant Maral Foundation – ―Impact of Corruption in Mongolia‖
- D. Jigjidmaa, Investment Promotion Program Manager, IFC Mongolia – ―Investment Protection
Issues in Mongolia‖
- Presentation of ―Win Win with Mongolia‖ (www.Mongolia) Video
A networking reception will be held for all attendees immediately following the business portion of
the meeting, in the "Tenger" Restaurant, 1st floor of Kempinski Hotel.
BUSINESS
“IDIOTS IN CANADA DO NOT UNDERSTAND RIGHTS OFFERINGS,‟‟ SAYS FRIEDLAND
Financier Robert Friedland has made some highly frothy comments in connection with a Turquoise
Hill Resources Ltd. rights offering.
In an email, Friedland said Turquoise Hill shareholders should participate in the rights offering,
which aims to raise USD 2.4 billion, money that will be used to repay amounts owed to the
company‘s majority shareholder Rio Tinto PLC. Friedland‘s spokesman in Vancouver said the
financier owns 8 percent of Turquoise Hill, which in turn holds a 66 percent stake in the massive
Oyu Tolgoi copper-gold-silver mine in Mongolia. Turquoise Hill said last week the company has filed
a final prospectus with securities regulators, outlining details of a rights offering.
Under the terms of the offering, each Turquoise Hill shareholder will receive one transferrable right
for each common share held as of December 6, 2013. Each right entitles the holder to purchase one
common share of the company at either USD 2.40 per share or CAD 2.53 per share, an amount that
represents a discount of approximately 42 percent to the closing prices on the New York Stock
Exchange and Toronto Stock Exchange on 25 November.
Turquoise Hill shares rose 3.6 percent to USD 4.27 Tuesday, leaving a market cap of USD 4.3 billion,
based on over one billion shares outstanding. The 52-week range is USD 9.62 and USD 3.81. Under
an earlier agreement Rio Tinto is required to acquire any shares not taken up under the rights
offering.
―People should buy the rights and exercise them hand over fist,‘‘ Friedland said.
He went on to say in the email that ―post the rights issue, the company is in full commercial
production, the company will be debt free and have $750+ million in copper-gold inventory and a
sales pipeline, plus a $2 billion receivable from the Mongolian government.‖
―Idiots in Canada do not understand rights offerings are not dilution…everyone participates
equally…rights offerings are the fairest form of equity finance ever developed by the human mind,‘‘
he said.
Turquoise Hill has said over one billion shares are expected to be issued under the rights offering.
Source: Stockhouse.com
TURQUOISE HILL SINKS 26% AS RIGHTS BEGIN TRADING
Shares in Turquoise Hill Ltd., operator of the massive Oyu Tolgoi copper and gold mine, dropped
sharply on Wednesday as the rights issued under its recent USD 2.4 billion offering began trading in
Toronto.
By midday Rio Tinto PLC-majority owned Turquoise Hill stock was changing hands at USD 3.44, down
26 percent in an anticipation of the more than one billion shares to be issued under the rights
offering, doubling the number of shares outstanding. The Vancouver-based firm decided on the
rights offering to help the company repay a USD 600 million bridge loan and a USD 1.8 billion
interim funding facility after talks with the Mongolian government over financing for the mine went
nowhere. Investor confidence in Mongolia has been shaken by the impasse over Oyu Tolgoi with
foreign direct investment in the country dropping by almost half this year compared to last year.
Talks over Oyu Tolgoi's expansion and the reworking of the initial 2009 deal which first unleashed

4. the Mongolian investment boom have dragged on for the better part of a year. Both sides provided
fresh faces for the Oyu Tolgoi board in September to break the impasse. Talks on financing
arrangements with the Mongolian government including a World Bank-led USD 4.5 billion debt
package—the largest project financing in the history of mining—have gone nowhere forcing
Turquoise Hill's hand to launch the right offer. The disputes are centered on costs, with Rio's
management fees and the Mongolian government's share of funding of surrounding infrastructure
proving particular sticking points.
Source: Mining.com
KINCORA ANNOUNCES SIGNIFICANT WRITE-DOWN FOLLOWING LICENSE REVOCATIONS
In the latest fallout from Mongolia's recent decision to revoke 106 mineral exploration licenses,
copper junior, Kincora Copper Ltd. announced a write-down of CAD 7 million (USD 6.6 million)
which is greater than its current market capitalization.
In a release issued on 6 November, the copper explorer said it received official notification that the
Mineral Resources Authority had revoked its licenses for its Tourmaline Hills and North Fox
properties, which are wholly owned by its subsidiary company, Golden Grouse LLC. Kincora paid
USD 5 million for the two licenses in 2012 and has subsequently spent almost USD 1.9 million on
further exploration. The company is currently valued at around USD 5 million. Asked about a time
line for the resolution of the license issue, Kincora's chief executive officer, Sam Spring says at
present there is very little certainty.
"We are told that the licenses should be reissued according to a competitive tender process,‖ Spring
said. ―If you speak to the various government agencies privately, you are told that under the new
minerals law, there will be a issuance of licenses and these 106 will be reissued at that time and
that we will probably have some preferential rights, but at the same time it will be a competitive
tender process, so it is hard to gain too much comfort from that and nothing is yet documented."
While the news is disheartening, Spring remained upbeat, saying the license for the group's flagship
asset, Bronze Fox, remains in good standing and at an operational level the asset keeps getting
better the more work gets done on it—according to Spring, it has a number of similarities to a pre-
discovery hole Oyu Tolgoi.
Source: Mineweb
ASPIRE INKS TWO MEMORANDA FOR 3.3 MILLION TONS A YEAR COAL SALES
Aspire Mining Ltd. announced the receipt of two non-binding memoranda of understanding from
large Russian coking coal end users for the potential purchase of coking coal to be produced from
the Ovoot coking coal project.
The two memoranda cover an initial commitment to potentially purchase up to 1.3 million tons a
year of coking coal, over a minimum period of five years. Additional interest received from other
Russian and Eastern European users indicates that Ovoot coking coal will have a significant
customer base in the blast and foundry furnace steel making industries outside of China.
Aspire also announced that through its Russian marketing agent, it has secured a non-binding
Memorandum of Understanding to secure up to two million tons a year rail and port capacity
through the Russian Far East coast at competitive tariffs. Russia is an important transit country for
Aspire having recently announced non-binding memoranda of understanding for Aspire to access
port capacity in the Black Sea and Russia‘s Far East. The ability to deliver from these seaports has
generated additional interest from users, particularly in Eastern Europe.
―We are very pleased with the initial interest received in Ovoot coking coal, given the relatively
short time that preliminary marketing of the coal has been undertaken,‖ said Aspire‘s managing
director, David Paull. ―We are pleased that we have been able to also now generate buying interest
in Russia which has a significant steel making industry and where Ovoot Project coking coal
compliments product offerings from established Russian coal miners. We have also been successful
at expanding rail and port capacity through Russia to other markets.‖
Source: Aspire Mining Ltd.

5. WOLF HIGHLY ENCOURAGED BY GEOCHEMICAL RESULTS
Wolf Petroleum Ltd. announced that additional geochemical analysis on samples taken from seismic
shot holes has identified additional abundant light crude oil seeps and gaseous hydrocarbon
anomalies.
Wolf‘s recent geochemical results have reaffirmed its previous results that had identified the
existence of an active petroleum system within the Toson Tolgoi and Talbulag Basins located on its
Sukhbaatar Block. High gravity oil seeps have now been identified in 90 out of 522 samples
analyzed. Medium gravity oil seeps have been identified in 32 out of 522 samples analyzed.
Source: Wolf Petroleum Ltd.
NEWERA RESOURCES EYES LARGE COKING COAL DEPOSIT IN MONGOLIA
Newera Resources Ltd. should trade higher after revealing results from a mini-seismic survey
conducted over sections of its Ulaan Tolgoi coking coal joint venture in Mongolia which indicate it
could have a significant deposit on its hands.
While early days, consulting seismic geophysicists, Logantek, identified multiple locations
considered to have high coal-bearing potential. Notably, the reflectors are considered consistent
with seismic reflectors from previous substantial coal discoveries in the South Gobi basin. Given the
interpretive results of the seismic survey within Ulaan Tolgoi, Newera has every chance of
discovering the next significant deposit in the region. Logantek and Nordic Geological Solutions
have outlined initial drill hole collar locations designed to test the interpreted coal reflectors in a
drilling program to commence in early 2014.
In addition, Newera has entered into a series of convertible loans with various parties for a total
value of USD 500,000, which includes a first right of refusal for Cygnet Capital to manage a future
capital raising which is likely by mid-2014. The various loan agreements, which have been finalized,
will be converted to convertible notes at USD 0.004 per Newera share or 80 percent of the
subscription price of the anticipated capital raising. Newera looks as if it could be sitting on a
significant coking coal deposit, and Cygnet's eagerness to manage the future capital raising is
indicative of the obvious potential.
Source: Proactive Investors
PETROVIS NANO RAISES 92 FUEL PRICE BY MNT 50
Petrovis LLC increased the price of its Nano-92 type gasoline by MNT 50.
The recent price increase was because it was initially selling fuel at a MNT 50 discount to entice
customers into first time use.
Nano 92 was introduced by Petrovis in July this year. The price stood at MNT 1,620 for five months.
Source: Zuunii Medee
FUEL IMPORTERS WIN LAWSUIT AGAINST FAIR COMPETITION AGENCY
The Supreme Court has ruled in favor of three fuel importers in a law suit against the Agency for
Fair Competition and Consumer Protections (AFCCP), ruling fines against them were unlawful.
Shunkhlai, Just Oil and Sod Mongol Group sued the AFCCP last year in December after receiving
fines on 3 December for allegedly influencing the market to create a fuel shortage in the country.
AFCCP fined NIC MNT 6 billion, Magnai Trade MNT 4.5 billion, Sod Mongol MNT 2 billion, and Just
Oil, Oin Birj, Shunkklai Trade, M Oil and Petrojump LLC MNT 1 billion.
Source: Udriin Sonin
INTERNATIONAL INVESTMENT BANK EXPANDS TDB PARTNERSHIP
The International Investment Bank (IIB) and Trade and Development Bank (TDB) of Mongolia LLC
concluded an agreement on strategic cooperation.
The agreement provides for a large variety of spheres of cooperation on mutually beneficial terms—
including organization of syndicated financing of investment projects, extending credit lines for
small-medium enterprises (SMEs) support, insuring warranties, including financing of export-import
operations and other spheres of interbank cooperation. Regular consultations regarding bank

6. practices, information exchange, and organization of training courses for employees were
envisaged. Nikolay Kosov noted that cooperation with TDB is one of the important components of
building strong partnership network of financial institutions for the achieving of IIB‘s strategic
objectives of the support of SMEs in member states.
The signed agreement strengthens the cooperation between the two banks, which started in
September this year. IIB jointly with FMO (Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden N.V.) participated in extending a syndicated credit to TDB for financing credit
activities, including the SME sector. The total amount of financing is USD 82 million; IIB‘s part is
USD 10 million.
The regular session of the Russian-Mongolian Intergovernmental Commission also took place in
Moscow. The bank‘s delegation traditionally took active part in the session.
Source: International Investment Bank
G-MOBILE GIVEN MNT 1.9BN DEBT REPAYMENT DEADLINE BY YEAR END
Local mobile telecommunications company G-Mobile LLC may have to raise its prices to pay for MNT
1.9 billion in debt owed to state-owned Information and Communication Network by the end of the
month, or else see its services cut off.
―We haven‘t increased our prices, which is a reason that our company collected the heavy debt of
MNT 1.9 million to the state company,‖ said D. Basbish, chief executive of G-Mobile.
Also, he said G-Mobile is expected to pay for the connection points that link Mongolia‘s provinces to
the network. That is unusual, he said, compared with other countries. He said rent-free usage was
in the interest of end-users, as it is reflected in a lighter bill for them.
―If we calculate the expenses paid in five years, the reality is we still didn‘t reach a profit because
communications is a quickly developing area which requires many additional expenses,‖ he said.
He said repaying the debt owed by the deadline would be impossible and the 150,000 G-Mobile
users with services cut through no fault of their own would be the ones to bear the greatest burden.
Source: Udriin Sonin
TURKISH-MONGOLIAN CONSORTIUM WINS APARTMENT CONTRACT
Mongolian firm Grand Line Co. Tuesday signed a cooperation agreement with Turkey's 216 Yapi Co.
Tuesday for the joint construction of a new complex of apartments in Ulaanbaatar after winning a
tender bid for a government contract for Bayanzurkh District. The companies plan to build 3,000
apartments and 2,300 garages for the Tumen Amgalan. The contract is part of the government's
urban re-planning program for Ulaanbaatar's ger districts.
Source: Montsame
DW‟S FLAGSHIP CHANNEL NOW AVAILABLE ON SKYMEDIA IN MONGOLIA
Deutsche Welle (DW) became available to viewers in Mongolia via SkyMedia on 25 November,
broadcasting on channel 205.
DW‘s flagship channel with 24 hours of English programming is available on SkyMedia, a subsidiary
of number-two mobile operator Skytel Group, to viewers in Ulaanbaatar, Mongolia. This new
agreement with SkyMedia is just further proof of how DW has expanded its reach in the market via
new IPTV platforms.
―DW‘s continuous support and commitment has made DW an invaluable partner to SkyMedia. We are
pleased to welcome DW English to the SkyMedia family,‖ added D. Byambatseren, chief executive
at SkyMedia.
DW‘s English channel will be available in the ―News‖ bouquet of channels accessible to all
subscribers of SkyMedia on channel 205. In addition, DW‘s German program DW (Asien) is available
in Mongolia on channel 702.
Source: Deutsche Welle
UB CONSIDERS SALE OF ITS TENGIS CINEMA MINORITY STAKE
The Ulaanbaatar city administration has proposed the privatization of 100 percent of Tengis Cinema

7. through a private bidding process.
Ulaanbaatar would see the sale take place in 2014, but will need approval from the Ulaanbaatar
Citizens' Council. The city owns 34 percent of the movie theater while former Prime Minister
Sukhbaatar Batbold and APU JSC Chairman P. Batsaikhan own the remaining 66 percent. The two
shareholders purchased the three-screen movie theater from South Korea's Wayrich Resource Asia
Co., Ltd. and restored it in 2003.
Tengis sees 800,000 visitors each year.
Source: News.mn
MNU FOUNDER ANNOUNCES TECHNOLOGY CENTER FOR UB
Founder and chairman of Mongolian National University (MNU), Munkhbat Lkhagvasuren, has
introduced a new initiative to establish the Mongolian Innovation & Technology Centre to
incorporate the best elements of acclaimed innovation centers such as Silicon Valley and bring high-
tech employment to the Mongolia's youth.
―Information technology is a natural fit for a country where education is the buzz-word and where
52 percent of the three million population count is under 25 years-old,‖ says Munkhbat, who has
just signed off on construction of the 17-story Mongolian Innovation & Technology Centre annexed
to MNU.
MNU has also established co-operative international relationships with 18 universities and research
institutions in countries including Poland, India, China, Japan, Russia, Indonesia and Korea.
Source: Mongolian National University
GUILDFORD COAL APPOINTS INTERIM CEO AS MANAGING DIRECTOR
Guildford Coal announced that its interim Chief Executive Officer Peter Kane has accepted the role
of group managing director.
Kane held chief executive officer roles at both Boardwalk Resources and Aston Resources before
being appointed chief operating officer. Previously, Kane spent three years as chief operating
officer with Macarthur Coal, leading the company‘s mines and project developments in Queensland
prior to the purchase of Macarthur by Peabody. During his tenure at Macarthur Coal and Aston, Kane
also covered the role of joint venture chair on multiple operations with numerous joint-venture
partners. Prior to that, Kane spent 10 years with Leighton (contractors) in various roles including
general manager of the Australian mining contractor business. His earlier career included 10 years
with BHP Billiton, in their iron ore and coal divisions.
Guildford also announced that Gary Humphreys recently advised that he would not be seeking a
further term as a non‐executive director.
Source: Guildford Coal Ltd.
XACBANK WINS 2013 “BEST BANK” IN MONGOLIA AWARD
XacBank LLC took the ―Best Bank‖ award this year from The Banker magazine.
One challenge for Mongolia's banks is keeping up with the pace of growth. In line with this trend,
XacBank has modified its strategy to adjust to the changes in the domestic market and has been
working on improving its service as well as enhancing its electronic channels.
―The main challenges were advancing institutional transformation in our business processes, IT
infrastructure, and delivery channels,‖ said Bat-Ochir Dugersuren, chief executive of XacBank.
XacBank had additional challenges in the context of the slowdown in the global economy and weak
investor confidence. The bank was able to maintain its market share in challenging conditions and
maintain a higher growth in its retail deposits when compared to the rest of the market in
Mongolia, said Bat-Ochir.
―The bank wants to build scalable and efficient institutional capacity to expand both in the small
and medium enterprise [SME] and corporate and retail segments,‖ he said of XacBank's plans for
2014.
He sees high growth potential in the SME and corporate segment once a stable investment
environment in Mongolia has been established and confidence has returned to the market. The SME

8. sector is expected to expand alongside Mongolia‘s mining boom, as it is hoped that smaller
companies will benefit in the supply chain of the mining industry. In recent months, XacBank has
increased its SME loan book as well as its foreign exchange trading volume. The bank is also notable
for its emphasis on corporate governance and has a three-pronged philosophy of ‗planet, people
and profit‘ as well as a focus on financial inclusion.
Source: The Banker
RIO TINTO PLEDGES TO CUT CAPEX BY $6BN IN TWO YEARS
Rio Tinto PLC pledged to cut capital spending by at least 20 percent in each of the next two years in
an attempt to woo back investors dismayed by the miner‘s misguided investments during the
resources boom.
The Anglo-Australian mining group said its capital expenditure would fall from USD 14 billion this
year to USD 11 billion next year and to USD 8 billion in 2015. The anticipated reductions come after
Rio said last week that one of its biggest investment projects—to raise the output from its iron ore
mines in Australia‘s Pilbara region by almost a quarter—could be completed much more cheaply
than previously predicted.
Rio and many of its peers have been out of favor with shareholders after overspending on new
projects and acquisitions. Rio‘s Sam Walsh is one of many recently installed chief executives at
leading miners, following a cull of previous leaders amid shareholder anger at industry under-
performance.
―We lost our way…we are taking decisive action,‖ Walsh said in Australia last week on Tuesday.
―Don‘t get me wrong, we do have more to do.‖
Rio‘s capital spending soared to more than USD 17 billion last year, part of a splurge of investment
in response to a period of strong demand for commodities led by China‘s economic growth. The
miner needs to cut spending and sell some marginal assets in order to try to maintain its credit
rating after net debt rose to more than USD 19 billion last year. It has been unable to sell some
businesses, including some aluminum assets and its diamonds business, but has announced or
completed USD 3.3 billion of sales this year. Rio said it had cut spending on exploring and
evaluating new projects by USD 800,000 this year, exceeding a USD 750 million target.
Source: Financial Times
MINERS PREACH GOSPEL OF RESTRAINT
Big miners, who were too loose with their spending in the boom years, are all now preaching a
gospel of restraint, capital-discipline and cost-cutting. But when your sins against shareholders are
as grave as Rio Tinto PLC's, you are obliged to be doubly repentant.
Chief Executive Sam Walsh, the iron ore boss promoted after Tom Albanese did one duff deal too
many, is making a reasonable fist of the task. Capital expenditure will fall 20 percent to USD 14
billion this year and continue to fall at the same rate to USD 8 billion in 2015.
Of course, the sums are still huge. But there is no point slamming on the brakes entirely when iron
ore can be dug out of the Australian desert for USD 25 a ton, shipped for China for another USD 20
and sold to steel-makers for USD 135. You've got to chase those prices while they are there. And if,
as Walsh says, production can be ramped up more cheaply than thought, shareholders should
approve.
Iron ore represents about 80 percent of Rio's profits, making the company the most unbalanced of
the big miners (the massive Oyu Tolgoi copper mine in Mongolia is currently a sideshow in valuation
terms). But that's the nature of the beast. At least this time around, the board appears to accept
the duty to protect investors.
Source: The Guardian

9. ECONOMY
MONGOLIA„S FDI IN OCTOBER DECLINES 30% YEAR-ON-YEAR, SAYS MONGOL BANK
Mongolia‘s foreign direct investment (FDI) in October declined to USD 148.2m from USD 211.2m a
year earlier, according to the nation‘s central bank.
January-October foreign direct investment was USD 1.966 billion compared with USD 3.995 billion a
year earlier, the Bank of Mongolia said in statement. FDI for the first nine months was revised to
USD 1.818 billion from a preliminary figure of USD 1.923 billion, according to the Bank of Mongolia.
Source: Bloomberg First Word, Cover Mongolia
MONGOLIA GAINS IN CORRUPTION PERCEPTION INDEX AS CENTRAL ASIA FLOUNDERS
Mongolia saw itself gain 11 spots on this year's Corruption Perceptions Index released by
Transparency International on 3 December while five Central Asian republics remained close to the
bottom.
Both Armenia and Mongolia performed well, each rising 11 places to 94th and 83rd place
respectively while Turkmenistan and Uzbekistan were, as usual, among the worst performers on the
index—which ranks countries and territories based on how corrupt their public sector is perceived to
be. Turkmenistan and Uzbekistan were in 168th place on the index of 177 countries, rising two
places since last year, but remaining among the top 10 most corrupt countries worldwide. Georgia—
the highest ranked country across Central Asia and the Caucasus—was in 55th place on the index,
down from 51st in 2012.
As well as ranking countries, Transparency International also assigned a score on a scale of 0-100
based on perceived level of public sector corruption, with 0 meaning that a country is perceived as
highly corrupt and a 100 means that it is perceived as very clean. While other republics in the
region did somewhat better, neither Kazakhstan, Kyrgyzstan nor Tajikistan managed to gain more
than 26 points. According to Transparency International's report, any score of less than 50 points
indicates "a serious corruption problem."
"Corruption continues to have a devastating impact on societies and individuals around the world,"
said Transparency International.
Globally, the best performing countries were Denmark and New Zealand, which tied in first place,
with other countries from the European Union and Western European also continuing to perform
well. At the other end of the scale, Sub-Saharan African countries had the highest level of
perceived public sector corruption.
Source: BNE
ELBEGDORJ WANTS TO CUT STATE-OWNED FIRMS BY ONE-THIRD
The government plans to slash the number of state-owned enterprises (SOEs) by one-third to
encourage private investment and set up a sovereign wealth fund, said President Tsakhia Elbegdorj
last week in Hong Kong.
Mongolia will also enact a law that will discourage companies owned by Mongolian ministers from
competing with foreign and private firms, he said. Competition between Mongolian SOEs and private
firms is "not good", Elbegdorj told a Hong Kong Trade Development Council (TDC) luncheon audience
that included Hong Kong businessmen.
"The Mongolian government should serve your interests, not challenge your interests. We have to
create that favorable environment in Mongolia. In two years, we will have in Mongolia full rule of
law," Elbegdorj said.
The government plans more laws to foster privatization and reduce state ownership, said
Javkhlanbaatar Sereeter, acting director general of the Invest Mongolia Agency of Mongolia's
Ministry of Economic Development. The elimination or privatization of one-third of Mongolian SOEs
will be "a long process", said Javhklanbaatar. Tsogsaikhan Chagnaadorj, an executive with Eagle
Group, a private Mongolian construction firm, welcomed Elbegdorj's plan to privatize Mongolian
SOEs.
"It's hard to compete with government companies as they have government funding and monopoly

10. power," he said.
At the TDC luncheon yesterday, Elbegdorj witnessed the signing of two memorandums of
understanding. One was between the TDC and the Mongolian National Chamber of Commerce and
Industry, to strengthen economic and trade ties between Mongolia and Hong Kong. Another was
between InvestHK and Invest Mongolia, to boost investment between Hong Kong and Mongolia.
"This is the largest Mongolian delegation ever to Hong Kong," said TDC Council Member Benjamin
Hung.
Source: Southern China Morning Post
MONGOLIA LOOKS TO STOCK TRADING AS TRADE WITH CHINA SINKS
For decades Mongolia has relied upon what is underground to feed its contemporary economy. The
effort has brought new prosperity to a nation where a large sector of its population is still nomadic,
with the extraction of rich deposits of coal, gold and other minerals has brought a sevenfold
increase in per capita income during the last 10 years alone. Lately, though, things have taken an
unexpected twist for the worse. Commodity prices have dropped; Chinese demand is slowing. As a
result, Mongolians are going from boom to bust.
―With the coal sector going through the floor, I'm almost out of business,‖ Batorchiriin Ariguun, the
founder of a local marketing research firm, said. ―I might freeze the company for one year waiting
for the economy to bounce back in 2015.‖
The government wants to diversify away from China and commodities. Undercapitalized and
illiquid, the Mongolian Stock Exchange (MSE) is still a relative minor player, but the government has
big plans. In a push to make long-term equity capital available for businesses other than mining,
Parliament passed two sweeping laws overhauling the stock market which will take effect in
January 2014.
With better rules and the liquidity coming from investment funds, public offerings are expected to
pick up and stir the appetite of financial investors. Mongolia's overall economy is currently worth
just over USD 10 billion; it‘s unlikely that the MSE will reach a total market cap of USD 45 billion in
five years, as its former chairman had predicted. Established local conglomerates such as MCS
Group and Tavan Bogd, with a presence in a wide range of industries from real estate to food and
beverage, and telecommunications firm Mobicom, have long been on the list of possible candidates
for a market debut compiled by local and international analysts.
If the government‘s stock market plan succeeds, the Mongolian economy may become less of a one-
trick pony. A friendlier investment law could also help bring in capital.
Source: International Business Times
ERENHOT TO ZAMYN-UUD CARGO ROAD IN SERVICE
A cargo transport road for a joint inspection area between China's Erenhot and Mongolia's Zamyn-
Uud has come into service.
The road, which was built with assistance by Inner Mongolia, will separate passenger transport and
cargo transport with an additional road. The new road is 21 meters wide and 1.15 kilometers long
and can serve trucks with loading capacity being 30 tons. Total investment in the project is CNY 13
million; investment by Inner Mongolia is CNY 9.7 million.
Erenhot is China's biggest land port to Mongolia.
Source: MENAFN.com
CHINA, MONGOLIA TO OPEN TWO MORE JOINT-SUPERVISION PILOT PORTS
Officials agreed to add the Qeh and Zhuengadadbqui ports as joint-supervision pilot ports for 2014
at the sixth Sino-Mongolian customs joint-supervision meeting on 11 November, disclosed Hohhot
customs on 26 November.
Mongolia is the second neighboring country conducting customs joint-supervision with China
following Kazakhstan. Previously, Erenhot, Ganqimao and other border ports between China and
Mongolia had been included as pilot ports.
Source: MENAFN.com

11. MONGOLIA CALLS ON RUSSIA TO BUILD ROADS, PIPELINES THROUGH TO CHINA
Mongolia has proposed that Russia should build rail and automobile roads, oil and gas pipelines, and
power transmission lines through its territory to China, the Natural Resources and Environment
Protection Ministry said in a statement Wednesday following an intergovernmental commission
meeting.
The countries have also agreed to further consider the possibility of Mongolian exports to third
parties via ports at the Russia‘s Far East. Mongolia has also asked Russia to maintain supplies of oil
products at one million tons in 2014 and consider the creation of a joint working group to discuss
annual oil supplies.
Source: Prime Business News Agency
EMPLOYMENT IS THE FOCUS AT MONGOLIA TALENT NETWORK
The downturn in the Mongolian economy has made job hunting a more difficult task, said an
executive of a leading executive recruiting firm, making specialization a greater priority for job
seekers.
―In the last 12 months the job market has switched from being a candidate‘s market, to an
employer‘s market,‖ said Adrienne Youngman, a founding partner of Mongolia Talent Network,
speaking on the higher tiers of the job market rather than total employment. ―I know that there are
reportedly pockets of growth (apparently the construction industry took on 15,000 more jobs this
year versus last year, for example) but my gut feel is that the overall impact is negative.‖
She said the strongest employment prospects were in human resources, accounting, engineering,
and other similar while-collar professions. Looking at data from university graduates, 25 percent of
students graduated with degrees in business administration and 17 percent in teaching, compared
with more competitive degrees such as 5 percent in law, 6 percent in engineering, and less than 2
percent in geology.
―Mining will lead the way but will be swiftly followed by associated services such as mining services,
law firms and professional service firms,‖ she said.
Source: EmergingFrontiers.com
CONSTRUCTION COMPANIES SEE EASE IN GOVERNMENT RELATIONS
The Center for Receiving City Residents reported improved conditions for construction workers
since its establishment in December 2012.
The center said it had addressed the requests of 6,674 residents and issued over 1,000 construction
permits since opening. It said it was able to settle matters brought to them in 23 days compared
with wait times of some 107 days before its establishment. Officials noted that having all
construction related matters settled under one roof had boosted productivity of the various
construction authorities and eased the process for construction firms looking for approvals.
The center is in charge of nine services related to construction, mostly providing permits for the
commencement of construction operations, resuming construction, or inspections by the State
Special Commission for approval.
Mongolia jumped 25 places from last year, landing at 107th place, in the ―Dealing with Construction
Permits‖ section of the ―Doing Business 2014 Report‖ by the World Bank.
Source: UB Post
MONGOLIA SEES 34 MINES OPEN SINCE 2012 PARLIAMENTARY ELECTIONS
Thirty-four mines and mining ventures have opened since the new Democratic Party-led coalition
government was elected into office. Those include mines for coal and copper ore, two fluorspar
mines, two open-cut coal mines, 14 gold and iron ore open-cut mines, five aggregate mines for
construction materials, and two brick-earth mines
Source: Undesnii Shuudan
TOURIST NUMBERS FALL 12.1%
A monthly report by the U.N. World Tourism Organization shows that the number of tourists in

12. Mongolia fell to 333,000 or by 12.1 percent compared to last year.
July and August are peak tourist moths for Mongolia, when, according to the report, tourists from
China fell by 23.5 percent in the first nine months of 2013. The report showed that 48.3 percent of
foreigners who were allowed to enter Mongolia were Chinese visitors, while 14.1 percent were from
Russia, 9.8 percent from South Korea, 4 percent from Japan and 3.5 percent from the United
States. However, even though the total number of tourists who visited Mongolia declined, the
number of visitors from Turkey increased.
There are also rises in the numbers of visitors from India, Kazakhstan and South Korea. For the first
nine months of this year 405,500 foreigners gained permission to enter Mongolia, with 82.1 percent
of them visiting on tourist visas. As to in-transit visitors, 84 percent of the 1.2 million traveled for
private purposes. A report by the General Authority for Border Protection noted that one of every
three foreign visitors was from the East Asia and Pacific region while 24.3 percent were from
Europe. Nearly 74 percent of all foreign visitors who entered Mongolia were male.
Source: News.mn
GOLD TAX CUT WOULD BOLSTER MONGOL BANK RESERVES BY $10BN, SAYS MINES MINISTER
A new bill that would cut taxes on the sale of gold would provide up to USD 10 billion in additional
reserves for the central bank, said Mining Minister Davaajav Gankhuyag.
The bill, which aims to provide greater transparency in gold transactions, would reduce the tax on
gold to 2.5 percent plus a 5 percent royalty for five years. The law would apply to all companies,
big and small, operating in Mongolia.
―This law is not aimed at any particular company,‖ he said, adding, ―If the law is passed in its
current form, Oyu Tolgoi, just like any other company, would qualify for the reduced 2.5 percent
royalty rate for the next five years if it sells its gold to the Bank of Mongolia.‖
The Minister noted that the tax cut would likely cut government revenue from gold by as much as
USD 50 million a year, but would bolster the government‘s foreign exchange and gold reserves by
USD 1.7 billion to USD 2.5 billion for a sum of up to USD 10 billion.
Source: Zuunii Medee
UB TO BEGIN COLLECTING TAXES FOR ROAD MAINTENANCE
Ulaanbaatar will begin charging Ulaanbaatar residents once a year for exiting and entering the city
beginning 1 January 2014.
The owners of the 264,000 cars registered in Ulaanbaatar will pay a one-time annual fee of MNT
30,000 for taxis, between MNT 20,000 and 40,000 for passenger vehicles, MNT 40,000 for large
automobiles, MNT 70,000 for commercial trucks over 10 tons, MNT 60,000 for buses, and between
MNT 30,000 and MNT 60,000 for vehicles with special permits.
Those taxes collected will reportedly be used to provide MNT 8.8 billion to the city fund for road
maintenance and repairs.
Source: Undesnii Shuudan
METEOROLOGIST PREDICTS WARM TEMPERATURES TO BREAK NEXT WEEK
The unusually warm weather this year has caused great disturbances for herders throughout the
country where there is low snow cover but is likely to break this week, said a state meteorologist.
Unusually high air pressure conditions in northern Mongolia have caused the unseasonably warm
winter this year for Mongolia, said J. Tsogt, Head of the Weather Forecasting Section of the
Institute of Hydrology, Meteorology and Environmental Monitoring. However, the warm winter
conditions will likely end after 7 December, he said. Unfortunately, however, the warm spring
water has put a burden on herders, due to the lack of snow on the ground.
―The livestock in the regions are facing water scarcity issues, as snow is a significant water resource
in winter,‖ he said. The snow cover this year is similar to last year, but the snow depth is quite
thin.
Over 60 percent of Mongolian territory has snow coverage, with the Gobi Desert and Mongolia's
southern and southwestern region accounting for the most territory without snow. The warm

13. temperatures are creating a cycle of water freezing at night and then melting in the day that is
creating greater-than-normal humidity. That could create troubles when winter has fully hit.
―This may result in a harsher winter in several soums in Uvs and Zavkhan Provinces, because mist
and fog during daytime makes it impossible for livestock to feed on forage.‖
Source: UB Post
CHINESE FIRMS WANT TO BUY COAL ASSETS OVERSEAS, BUT ON THE CHEAP
Chinese companies are on the hunt to buy overseas coal mines as Beijing's switch to cleaner fuels
stokes demand for higher-quality coal produced in countries such as Australia, according to people
familiar with the firms' strategies.
A renewed appetite for acquisitions by the world's biggest coal consumer will be a big boost for
miners who are trying to dispose of assets worth billions of dollars to boost shareholder returns.
These include Rio Tinto PLC, which has put Australian and Mozambique coal operations on the
block, and Linc Energy, which is selling its New Emerald Coal business. The Chinese, however, are
not rushing to buy. They see asset values coming under further pressure as coal prices remain
depressed amid a supply glut that has already driven prices down about a third since 2011.
"We have clients who are interested in taking stakes in coal assets. But the view is the market's not
going to get any better for two years. So why buy something today when it's going to be a lot
cheaper in eight months' time," said Sam Farrands, a Hong Kong-based partner at law firm Minter
Ellison.
Plans to curb air pollution have raised the prospect of a long-term decline in China's need for
thermal coal, with Beijing aiming to reduce coal's share of the energy mix to 65 percent or less by
2017 from 73 percent this year. The lower share, though, will be within an expanding base and it
will take a long time to wean China away from coal as it is the cheapest source of fuel for power.
Aluminum Corp of China (Chalco) has long eyed coal assets in Mongolia, though it ended up dropping
a USD 926 million bid for SouthGobi Resources Ltd. last year due to political opposition there.
"There's probably been a pullback in looking at Mongolia after that. Everywhere else is still in the
game," said Ken Su, China metals and mining leader at consultants PricewaterhouseCoopers in
Beijing, referring to Chinese appetite for coal assets.
Source: Reuters
A COMMODITIES RALLY ISN'T CARVED IN STONE
If the market had its own Ten Commandments, near the top would be "thou shalt revert to the
mean"—or, what goes up must come down and vice versa. Commodities bulls betting on this lifting
their favorite investment out of its funk need to ask themselves where that mean is, though.
It looks like commodities in 2013 will rack up their second consecutive year as the worst-performing
asset class in terms of risk-adjusted returns, according to Deutsche Bank. The Dow Jones DJ-UBS
Commodity index is down 10 percent so far this year. But hope is one commodity that never runs
out on Wall Street. As Deutsche Bank noted Monday: "Given the tendency of past losers to become
future winners, this might imply a more constructive outlook" for next year.
There is little fundamental support for a recovery, though. U.S. natural gas, oil and related
products, copper, aluminum, gold and silver account for 6 percent of the DJ-UBS index. Aluminum
is chronically oversupplied and copper looks set to join it at least for a few years as mining
expansions reach fruition. As for gold and silver, 2014 will likely see the Federal Reserve rein in its
bond-buying program, suggesting real interest rates will rise, pressuring precious-metal prices
further.
Above all, in historical terms, prices for copper, oil and gold aren't even that cheap—they only look
so compared to recent dizzy peaks. Somewhere in those alternative commandments is another
instruction for investors: Thou shalt not catch a falling knife.
Source: Wall Street Journal

14. POLITICS
HERDERS DEMAND NEW TAVAN TOLGOI-SAINSHAND RAILROAD PLANS
The local residents of Tsogttsetsii Soum, Umnugobi Aimag held a press conference last week on
Thursday to announce their opposition to the ―New Railway Network‖ project for the construction
of a 468 kilometer rail track on the Tavan Tolgoi-Sainshand route.
Local residents, mostly herders, urged the government to preserve their homeland as a preserved
wildlife site. Plans for the Tavan Tolgoi-Sainshand railway have it running through the northern part
of Tsogttsetsii, where the majority of the local population is settled. Local residents demanded that
project developers reconsider the location decided on for the railway, instead building on the
southern end of the county.
In addition to wild grasslands, the area decided for the railway is also the habitat of the Mongolian
antelope. The local residents said they would like for Minister of Road and Transport A. Gansukh to
see the area for himself. They added that they do not oppose the Tavan Tolgoi-Sainshand railroad
itself, but wish the government would reconsideration the location due to the social, ecological and
environmental impacts it would have.
Source: News.mn
MONGOLIA DOUBLES VOCATIONAL STUDENT STIPENDS
A Labor Ministry official announced that monthly stipends for vocational students will double to
MNT 70,000, effective 1 January 2014.
The government-backed vocational training program trained 3,300 individuals in 2011 and 2012, and
6,600 in 2013. For 2014, vocational training centers hope to train 6,600 individuals. The government
is currently running a survey to find where demand is strongest in the labor market. There are no
restrictions for entree such as age for admittance into the programs.
The Ministry of Labor said Mongolia has 78 vocational training facilities nationwide, 33.3 percent of
which are state-owned.
Source: News.mn
FOREIGN MINISTER ATTENDS NATO MEETING
Foreign Minister Luvansandan Bold attended a meeting of foreign ministers from NATO member
countries last week on Tuesday at the NATO headquarters in Brussels.
On the second day of the meeting Bold met with NATO Deputy Secretary General Ambassador
Alexander Vershbow for bilateral talks. Bold said he was satisfied with the bilateral partnership
programs and shared ideas for bilateral cooperation, including Mongolia`s role to ISAF, future
participation, planned efforts for 2014 and security in the Northeastern Asian region.
Mongolia is NATO‘s latest Asia-Pacific partner country, having only become a member in March
2012, after the signing of an Individual Partnership and Cooperation Program.
Source: News.mn
PRESIDENT AWARDS MONGOLIAN PEACEKEEPERS
President Tsakhia Elbegdorj awarded medals to Mongolian peacekeepers returned from South Sudan
November 30th, 2013.
A ceremony for the return of the soldiers took place at the air training base in Ulaanbaatar that
day. The president congratulated the soldiers for completing their missions successfully and
awarded them medals for keeping the peace. One of those troops was the president‘s own son.
Enkhbayar Erdene.
Mongolia has sent 850 troops to the Motorized Infantry battalion in the U.N Mission in South Sudan
(UNMISS). In recent years Mongolian soldiers have participated in peacekeeping activities in Sierra
Leone, Chad, Sudan, Ethiopia, Kosovo, Georgia, Iraq and South Sudan.
Source: News.mn

15. DEFENSE MINISTER VISITS QATAR
A defense delegation led by Minister for Defense D. Bat-Erdene made an official visit to Qatar
between 3 and 7 December, at the invitation of Qatar's minister of state for defense affairs.
Bat-Erdene was first received by Emir Sheikh Tamim bin Hamad bin Khalifa Al Thani. The Mongolian
minister said Mongolia was satisfied with the deepened relations between the two nations. They
spoke on the significance of bilateral cooperation for large scale projects and expanding relations
for defense. At the end of the meeting Bat-Erdene delivered President Tsakhia Elbegdorj's invitation
to the emir to visit Mongolia.
Bat-Erdene also met with Minister of State for Defense Affairs of Qatar Hamad bin Ali Al Attiyah to
discuss global and regional security issues, current trends of bilateral defense cooperation, future
perspectives and issues for cooperation between the two countries.
Mongolia established diplomatic relations with Qatar in 1998. Bilateral defense relations and
cooperation between Mongolia and Qatar were formalized when the Mongolian Armed Forces and
the Qatar Armed Forces signed a cooperation agreement in 2007.
Source: News.mn
MONGOLIAN NATIONAL BROADCASTING UNDER INVESTIGATION BY STATE AUDITORS
State auditors have opened an investigation for corruption into former and current executives from
Mongolian National Broadcasting (MNB).
The National Audit Office opened their investigation of former director Ch. Davaabayar and others
following negative reports surrounding the broadcast company. The announcement of the audit has
reportedly prompted some mid-level executives to flee the country. That includes G. Gerel, a
former head who fled to the United States, and a group of 10 executives who reportedly fled to
India.
Source: Zuunii Medee
UB WATER AGENCY FALLS INTO OVER MNT 10BN IN DEBT
The Water Supply and Sewerage Authority of Ulaanbaatar has fallen into debt of MNT 10.8 billion.
The government agency reportedly spent MNT 37.6 billion this year while only collecting MNT 25.9
billion. Authority head S. Unen said that the prices for water usage are too low. He recommended
hiking fees from MNT 0.25 to MNT 0.55 for apartment residents, from MNT 555 to MNT 810 for
cashmere and wool, leather and gut processing factories, and MNT 1,000 for alcoholic beverages,
purified water plants and car washes.
Source: Udriin Sonin
OPEN AND SMART GOVERNMENT IS FOR EVERYONE, SAYS ALTANKHUYAG
Prime Minister Norov Altanhuyag delivered a presentation regarding the government‘s aim to
deliver open and smart governance.
The premier focused on the projects the government is implementing to build governance without
bureaucratic obstructions or corruption. The first project forming a website that would allow
citizens to access information regarding government activities, programs, and plans from the
capital city and province organizations, ministries, and agencies. The government initiative is the
Government Service E-Machines that have been accessed by 54,000 people and saved MNT 1 billion
since they were rolled out last June he added. Another was the 1111 call center where nearly
70,000 people had called in.
The Premier also mentioned a weekly online meeting with ministries, agencies and provincial
administrations. A similar meeting has twice been held with Mongolian Ambassadors abroad.
Source: Montsame
MONGOLIA TAKES THIRD, BREAKS RECORDS AT WORLD MEMORY CHAMPIONSHIP
Mongolia came in third place in an international competition for memory, with two team members
taking high honors.
Mongolia competed for the first time in the 22nd World Memory Championship, which measures

16. memory skills in 10 disciplines. Mongolia sent six contestants aged between 12 and 21 to take third
place behind the German and Swedish teams. The Mongolian team broke six world records, with
Sengesamdan Uliikhutag and Namuuntuul Bat-Erdene each taking the titles of ―Grand Master of
Memory.‖ The honor is given for those who can successfully memorize 1,000 random digits and the
order of ten decks of cards in an hour each, and the order of one deck of 52 cards in under two
minutes.
Source: World Memory Championship
FIRST DAY OF TEACHINGS FOR MONGOLIAN BUDDHISTS IN DELHI
A group of 818 Buddhists from Mongolia converged on the Kempinski Ambience Hotel in New Delhi,
where they were joined by 60 Koreans and 15 Tibetans to listen to teachings by the Dalai Lama.
The Dalai Lama observed that there have been many ups and downs in Mongolia, but now, in the
21st century, Mongolians are reviving their Buddhist traditions that earlier flourished for 1,000
years. Although the Sanskrit tradition of Buddhism entered China from the Silk Road and spread to
Korea and Japan, it reached Tibet later. And despite having special links to China, the Tibetan
emperor decided to seek Buddhism in India, the land of its origin.
The Dalai Lama said he had heard that there had been an early transmission of Buddhism in
Mongolia from the Silk Road, and then a later transmission from Tibet. It was during the time of
Sonam Gyatso, the third Dalai Lama, that the Gelug tradition came to the fore.
Source: EIN Newsdesk
POTENTIAL MONGOLIAN-MYANMAR RELATIONS
In November, Mongolian President Tsakhia Elbegdorj made an official trip to Myanmar as part of his
tour of Southeast Asia. This was the first trip by a Mongolian head of state to Myanmar since
diplomatic relations were established in 1956. This visit will likely serve as a starting point to
increased Mongolia-Myanmar cooperation, and support the deepening of diplomatic and economic
ties.
Mongolia and Myanmar are leading emerging markets for natural resources. Mongolia‘s Oyu Tolgoi
mine is one of the largest cooper deposits currently under development, while Myanmar‘s largely
untapped supplies of natural gas and metals has already attracted the attention of international
businesses, not to mention governments eager to access these reserves. However, both
governments are also keen to balance international investors‘ influence in the economy and both
have had to respond to public demands for transparency and environmental protections.
The potential for Mongolia and Myanmar to not only learn from each other in the field of resource
management, but also to coordinate their policy decisions, was pointed out by recent pushes for an
―M3 alliance‖ between Mongolia, Myanmar and Mozambique as three countries with quickly growing
economies, bordering BRICS nations, keen to balance resource investment against political and
societal concerns. Both are relatively small states when compared to their large neighbors.
Mongolia has to contend with its two powerful neighbors: China and Russia. Myanmar also borders
two great power neighbors–India and China–but also a number of smaller states–Thailand,
Bangladesh, and Laos–that give it more options than Mongolia has in this regard. Both Mongolia and
Myanmar will have to balance the influence of their larger neighbors by cultivating relations with
other states, including North America, Europe and Australia.
There are important differences between these two countries, but there are also many potential
venues for increased cooperation and mutual policy learning and coordination. Whether it will be
their differences, the space between them, or the similarities that define Mongolian-Myanmar
relations ultimately remains to be seen, but recent developments suggest cause for optimism.
Author Brandon Miliate is a PhD Student in Political Science at Indiana University – Bloomington.
He is a regular contributor to Mongolia Focus, a well-read Mongolian policy blog.
Source: The Diplomat

17. ANNOUNCEMENTS
“MM TODAY” ON MNB-TV, FRIDAY, 19:00 TO 19:10
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:00 to 19:10 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „INTERVIEWS„, MONGOLIAN
BUSINESS NEWS‟, „PHOTO GALLERY‟
The following 13 presentations are from the Mongolia Investment Summit- 2013 in Hong Kong,
November 18-20:
- Regulatory Update: Navigating Mongolia‘s legal framework for foreign direct investment,
Javkhlanbaatar Sereeter, Director General, Foreign Investment Regulations and Registration
Department, MINISTRY OF ECONOMIC DEVELOPMENT OF MONGOLIA;
- Investment keynote: Investing into Mongolia in 2013 – Where do the opportunities lie?, James
Passin, Co-Founder and Manager, FIREBIRD MONGOLIA FUND;
- Development keynote: Key challenges and opportunities for continued growth in Mongolia,
Randolph Koppa, President, TRADE AND DEVELOPMENT BANK OF MONGOLIA;
- Outlining government policies and long-term plans for Mongolia‘s mining sector, Amarjargal
Khurelbat, Head of International Cooperation Division, MINISTRY OF MINING OF MONGOLIA;
- From copper to met coal: Demand and price outlook and expected impact on Mongolia‘s economy,
Ghee Peh, Managing Director, Metals and Mining Research, UBS SECURITIES ASIA;
- How Mongolian banks and financial institutions are dealing with the challenges and opportunities
of a fast growing economy, Norihiko Kato, Chief Executive Officer, KHAN BANK;
- Update on the Mongolian stock market – Impact of the new Securities Law, Altai Khangai, Chief
Executive Officer, MONGOLIAN STOCK EXCHANGE;
- From investment banking to trade finance to micro credits to insurance, Amartuvshin Hanibal,
Managing Director, TENGER FINANCIAL GROUP LLC
- Spotlight presentations: Showcasing Mongolian investment opportunities, Peter Morrow, Board
Director, ASIA PACIFIC INVESTMENT PARTNERS;
- Spotlight presentation: Showcasing Mongolian investment opportunities, Munkhbat Davaatseren,
CEO of Golomt Securities, GOLOMT BANK;
- Spotlight presentation: Showcasing Mongolian investment opportunities – Natural Resources,
Batmunkh Batkhuu, Chairman, SHARYN GOL JSC;
- Spotlight presentation: Showcasing Mongolian investment opportunities – Natural Resources,
Jimmie Wilde, Chief Operating Officer, BERKH UUL JSC;
- Spotlight presentation: Showcasing Mongolian investment opportunities – Natural Resources, Mona

18. Forster, Executive VP, ENTRÉE GOLD INC;
The following two presentations are from the ―ANTI-CORRUPTION LEGISLATION/POLICY,
INTERNATIONAL BEST PRACTICE ON TRANSPARENCY‖ training seminar for businesses, in
Ulaanbaatar, November 18, 2013:
-―International business standard on transparency‖ by Jelena Pesic, Director, PwC;
-―Finland‘s best practice on transparency and anti corruption‖ by Dr. Pekka Hallberg (as it is
world‘s number one), Emeritus President of the Supreme Administrative Court of Finland;
The following 15 presentations are from the Mongolia Mining Summit, Perth, Australia, October 29-
31, 2013:
• Mongolia‘s Minerals Future and Development by Otgochuluu Ch, Director General, Department of
strategic policy and planning at Ministry of Mining, Mongolia at the Mongolian Mining Summit 2013,
Perth, Australia, Oct 29-31, 2013
• Mongolian Economy: Investment Opportunities/Challenges, Jim Dwyer, Executive Director,
Business Council of Mongolia at the Mongolian Mining Summit 2013, Perth, Australia, Oct 29-31,
2013
• Oyu Tolgoi: Lessons from the Gobi, Houston Spencer Vice President, Communications and Media
Relations, Oyu Tolgoi at the Mongolian Mining Summit 2013, Perth, Australia, Oct 29-31, 2013
• Market dynamics for Mongolian coking coal in the Chinese market, Graeme Hancock, President
and Chief Representative at Anglo American, Mongolia at the Mongolian Mining Summit 2013, Perth,
Australia, Oct 29-31, 2013
• Speech by Mr. Ariunbold Byamba, Deputy Director, Erdenes MGL LLC at the Mongolian Mining
Summit 2013, Perth, Australia, Oct 29-31, 2013
• Launching Mining Projects in Mongolia–A Major Contractor‘s Perspective, Eric Erdenebat
Tseveendorj, Country Manager, Orica Limited at the Mongolian Mining Summit 2013, Perth,
Australia, Oct 29-31, 2013
• Investing in a dynamic legislative environment, Elisabeth Ellis, Managing Partner Ulaanbaatar,
Minter Ellison at the Mongolian Mining Summit 2013, Perth, Australia, Oct 29-31, 2013
• Sandvik In Pit Crushing & Conveying (IPCC), Doug Turnbull, Principal Mining Engineer, Sandvik
Mining Systems, at the Mongolian Mining Summit 2013, Perth, Australia, Oct 29-31, 2013
• Ovoot Coking Coal Project, David Paull, Managing Director Aspire Mining, at the Mongolian Mining
Summit 2013, Perth, Australia, Oct 29-31, 2013
• The business of being a third neighbor, David Landers, General Manager, East Asian Growth
Markets at the Mongolian Mining Summit 2013, Perth, Australia, Oct 29-31, 2013
• Nuurst Thermal Coal Project, Daniel Rohr, Chief Financial Officer, Modun Resources Ltd, at the
Mongolian Mining Summit 2013, Perth, Australia, Oct 29-31, 2013
• Culture matters in building sustainable long-term business relationships, Hana Tserenkhand
Byambadash Business Development Consultant. AusMon Consulting and Dr Christine Hogan Adjunct
Professor, Curtin University. Consultant & Author at the Mongolian Mining Summit 2013, Perth,
Australia, Oct 29-31, 2013
• Maximizing Business Benefits from Your IT Investment, Brad Skeggs, Executive Director, COSOL, at
the Mongolian Mining Summit 2013, Perth, Australia, Oct 29-31, 2013
• Presentation by Battsengel Gotov, CEO, Mongolian Mining Corporation, at the Mongolian Mining
Summit 2013, Perth, Australia, Oct 29-31, 2013
• Mongolian Mining Sector "Present and Future Developments", N.Algaa, Executive Director,
Mongolian National Mining Association, at the Mongolian Mining Summit 2013, Perth, Australia, Oct
29-31, 2013
The ―Mongolia Reports‖ section includes the following:
- ―Ministry of Finance of Mongolia, 2013 Government Debt Auctions‖ by Bank of Mongolia;
- ―Doing Business in Mongolia: 2013 Country Commercial Guide for U.S. Companies‖ by U.S.

19. Embassy;
- ―Real Estate Report 2013‖ by Mongolian Properties;
- ―Selected Macroeconomic Indicators, November 20, 2013‖ by International Monetary Fund‖
- ―2013 Second Annual Mongolian CEO Survey‖ from PricewaterhouseCoopers Audit LLC;
- ―Selected Macroeconomic Indicators; data through October 16, 2013‖ by International Monetary
Fund;
- ―IMF Completes 2013 Article IV Mission to Mongolia‖ by International Monetary Fund;
The following are added to Interview Section from the Oxford Business Group, Mongolia Reports
2013 book:
• B. Byambasaikhan, Chairman, Business Council of Mongolia: ―Talk is cheap‖;
• President Ts. Elbegdorj: ―Diversifying for growth‖
• Jim Dwyer, Executive Director, Business Council of Mongolia: ―Non-mining sectors budding‖;
• Peter Morrow, Chairman, American University of Mongolia: ―Filling in the blanks‖;
• N. Zoljargal, Governor, Bank of Mongolia: ―Sustainable vision‖;
• Gansukh, Minister of Roads and Transportation: ―Accessing new markets‖;
• J. Od, President, MCS Group: ―Building interest‖;
• B. Chuluunbaatar, President and CEO of Monnis Group: ―Climbing the ranks‖;
• Cameron McRae, President and CEO, Oyu Tolgoi: ―Sitting on a copper mine‖.
BCM's English website includes the ―Mongolia Business News‖ section where the Open Letter to
Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 6th Anniversary BCM Renewal dinner on November
11, 2013.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
SOCIAL NETWORK WITH BCM
BCM LAUNCHES NEW LINKED-IN COMPANY PAGE
The Business Council of Mongolia has launched a new company page on the social networking
website LinkedIn to network its members and followers including small-medium enterprises (SMEs).
The new page will allow BCM to alert followers to the latest news and information critical to their
businesses. Members‘ businesses will be promoted. Additionally, BCM plans to deliver monthly
infographics on the latest data as well as videos and other media content as they come. The bulk of
the content on the new page will be in Mongolian language to better cater to BCM's Mongolian-
speaking audience and members. The following link can direct you to the New BCM's Linked-in page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo
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 NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia

20. We have now 2,482 fans on our Facebook fans page, 1,527 connections on LinkedIn network, and
835 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at http://bcmongolia.org/en/
___________________________________________
BCM WORKING GROUP NEWS
Business Council of Mongolia (BCM) has been pushing forward with its ‗BCM in the University
Classroom series‘ since March 2012. Led by BCM‘s Education Working Group, the program provides
lectures at universities to help inspire students and give them direction for their future careers.
The series has grown to include an average of 10 lectures per academic year. Now 1,123 students
and teachers participate with BCM in the University Classroom Project.
Mr. Achit-Erdene Darambazar, President of Mongolian International Capital Corporation, gave a
presentation entitled ―Investment Environment‖ to an audience of more than 90 students and
teachers at the Institute of Finance and Economics, on 5 December 2013.
The presentation was very interesting and comprehensive with many, many questions from the
students. Mr. Achit-Erdene reviewed the importance of foreign investment to the future growth of
the Mongolian economy and provided the history of foreign investment in the country. Students
were most interested about foreign Investment in the future. He answered students‘ questions for
40 minutes.
The next ‗BCM in the University Classroom series‘ will be held in February at Mongolian National
University. Mr. Ser-Od Inchinkhorloo, Vice Director of BCM, will be invited to speak. Presentation
title: ―Economy and the Business Environment‖.
ECONONIC INDICATORS

21. 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]
October 31, 2013 *10.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 9.5% y-o-y, Ulaanbaatar city, October 31, 2013
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]

22. CURRENCY RATES – DECEMBER 5, 2013
Currency Name Currency Rate
US dollar USD 1,730.61
Euro EUR 2,357.52
Japanese yen JPY 16.97
British pound GBP 2,837.94
Hong Kong dollar HKD 223.21
Chinese Yuan CNY 284.10
Russian Ruble RUB 52.37
South Korean won KRW 1.63
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.