The document provides a summary of business and economic news from Mongolia. It discusses uncertainties in the mining industry due to delays in project approvals. It also mentions that Rio Tinto sees their Oyu Tolgoi copper mine in Mongolia as important to the company's future. Additionally, it notes that a new cellphone operator was selected and will begin service in 2008, and that a second railway connecting northern and southern Mongolia will be built.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmmongolia.org
Email: Jim@bcmmongolia.org Issue 8, December 7 2007
NEWS HIGHLIGHTS:
Business: Mining uncertainties in Mongolia; Rio Tinto says Oyu Tolgoi important to company’s future;
New cellphone operator; Western Prospector promotes Harper in Mongolia
Economy: Second railway to be built; Training on construction projects; Uranium reserves outstrip
coal; MSE Chief visits Hong Kong; Shareholders denied fair share of dividends; Focus on jobs
Politics: PM names his Cabinet; 2008 State budget approved; President’s gulf trip seals deals; Kuwait
Mongolia to boost oil ties
Notice to BCM’s members and friends:
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MP Ts. Munkh-Orgil, newly appointed Minister of Justice and Internal Affairs, will review recent MPRP events
and plans; there will be reports from Ambassador of the Republic of South Korea, Mr Park, US Ambassador,
Mark Minton and Andrew Cuthbertson of Rio Tinto (MMDF mining update). BCM Members, NAMBC Members and
Friends are invited to the meeting and the reception immediately following.
Complimentary BCM NewsWire issues and admittance to BCM monthly meetings will be discontinued after the
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You are encouraged to join BCM's rapidly growing Membership.
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Give yourself and/or your corporate entity a BCM membership, a most worthwhile business gift for the
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BUSINESS
MINING UNCERTAINTIES IN MONGOLIA
The stakes are high in Mongolia for mining industry, mining investment and the country as concerns
about political and legislative developments mount in one of the last frontiers for mineral
exploration according to Haywood Securities’ new research report. It claims that change in the
country's leadership, introduction of a windfall tax on copper and gold and a uranium working
group, have raised concerns about mineral exploration, development and investment in Mongolia.
Two of the major causes of concern were the delay in approval of development of the Oyu Tolgoi
copper deposit in the Gobi Desert and the appointment of a new Mongolian prime minister.
The report states, “The approval of the Rio Tinto (LSE:RIO) and Ivanhoe Mines (TSX:IVN) project has
been delayed and this was proving exceptionally costly for explorers, developers and investors.
The Mongolian government completed a review of the project in June and presented it to
parliament for approval in July this year, but it has yet to be passed by a two-thirds majority of the
76-member Mongolian parliament.”
Read more: www.mineweb.com/mineweb
RIO TINTO SAYS OYU TOLGOI IMPORTANT TO COMPANY’S FUTURE
Mining giant Rio Tinto is resisting an offer to purchase the company and company executives are
promoting a new focus on corporate growth by developing their copper mines in Mongolia and
elsewhere.
Officials noted that their Mongolian holding, Oyu Tolgoi, was expected to produce 440,000 tons of
copper annually, along with ‘significant gold by-products.’
Rio Tinto copper chief executive, Bret Clayton told news.com.au, "By 2025 we estimate that the
world will be consuming an additional 14 million tons of copper per annum, that's almost a doubling
of current consumption in less than 20 years.” He said, "Demand remains strong and supply is
struggling to keep pace."
BHP Billiton is seeking to take over Rio Tinto. However, officials close to initial negotiations have
indicated the companies are not near any agreement
Source: www.mongolia-web.com

2. NEW CELLPHONE OPERATOR
In the scope of the Government policy to create fair competition in the cell phone market, the
Communication Regulatory Committee announced a tender for a new cell phone service. Skynetcom
Company was awarded the tender.
The Company held its official opening ceremony on December 5 and plans to commence operations
early 2008. The company will install a fiber-optical cable and offer competitive low rates.
Source: Onoodor
WESTERN PROSPECTOR PROMOTES HARPER IN MONGOLIA
Western Prospector Group Ltd. (Western) (TSX VENTURE: WNP - News) announced the promotion of
Gerald Harper, to Senior Vice President, Mongolia. In his new role, Dr Harper will continue to serve
as country manager for Western's Mongolia operations. Dr. Harper will also assume the role of
Western's Qualified Person (QP) from Wayne Roberts, who resigned as Western's SVP and QP. Dr
Harper is also president of the Minerals Industry Safety Association (MISA) of Mongolia
Read more: www.westernprospector.com/s/NewsReleases
ECONOMY
SECOND RAILWAY TO BE BUILT
A second 1,110 km railway connecting Mongolia’s northern and southern borders is to be built.
Railway Authority head, D. Ganbold told Odriin Sonin newspaper a tender would be announced for
construction and the most efficient proposal would be selected with a focus on less cost to the State
Budget. Ulaanbaatar Railways has submitted its technical and economic basis for the tender to the
Government.
Source: Odriin Sonin
TRAINING ON CONSTRUCTION PROJECTS
Training for ‘Management of construction project contracts’ for construction project specialists will be
held December 12 to 14. It will be organized by a construction technology and management team
from the construction engineering and architecture school at the University of Science and
Technology and the infrastructure engineering faculty of Kochi Technology University of Japan. It will
focus on methodology for designing construction projects and drawing up contracts. Professor Sh.
Kusayanagi will lead the training.
Source: Montsame National Newsagency
URANIUM RESERVES OUTSTRIP COAL
The 85th anniversary of developing Mongolia’s mining sector was acknowledged by the Ministry of
Trade and Industry in a consultative meeting, ‘The Mongolian uranium sector’s future and current
situation,’ in Ikh Tenger Complex, December 4.
Mongolian uranium reserves occupy 1.8 percent of the world reserves and are believed to be six
times greater than Mongolia’s coal reserves. 2006 saw an increase in foreign uranium research
companies in Mongolia.
Source: Zuunii Medee
MSE CHIEF VISITS HONG KONG
The Mongolian Stock Exchange (MSE) executive director, R. Sodkhuu paid an official visit to Hong-
Kong, China, on December 3.
The MSE and Hong Kong Stock Exchange will establish a treaty of cooperation to develop relations
and mutual support. When the Treaty is signed it will seal cooperation towards double-registration of
Mongolian companies on both stock exchanges; assessing and opening future opportunities for
business and markets of the two exchanges and exchange of specialists. Mr Sodkhuu met heads of
the Bloomberg, Reuters and Citigroup.
In 2007, the MSE established treaties of cooperation with stock exchanges of the Republic of Korea
and Taiwan.
Source: Montsame National News
SHAREHOLDERS DENIED FAIR SHARE OF DIVIDENDS
The Union of Mongolian Shareholders conducted a survey among its members on November 14 to
check payment of dividends. The survey revealed that 61 per cent of respondents do not receive

3. dividends; 32 per cent receive them sometimes and only seven per cent receive dividends regularly.
Of 375 companies trading their shares on the Stock Exchange, 124 have convened stockholders
meetings and 75 per cent have presented reports on their meetings, to the Stock Exchange.
According to the Union, some joint-stock companies hide their profits; do not keep small shareholders
informed and pay out dividends in small amounts.
The Union of Mongolian Shareholders’ goal is to protect interests of small stockholders.
Source: Montsame National Newsagency
FOCUS ON JOBS
Bombogor Trade Center leads a list of agencies that have created the largest number of jobs in
Ulaanbaatar in 2007. The Center offered 400 places in total while among other companies, Altan
Taria, Aoss and APU Trade Company offered 30 job places each. A large number of job places have
been created in trade and service centers, with 230 in Bileg Department Store and 147 in Khoroolol
Building Materials store.
Ulaanbaatar City Labor Exchange reported that 4,150 job places were created in Sukhbaatar district;
4,200 in Bayangol; 3,115 in Bayanzurkh and 3,661 in Chingeltei district. Ulaanbaatar figures for
people over working age are 643,000 and of them, 359,000 are employed. Of 121,000 unemployed,
over 6,500 are registered with employment services. Construction engineers, geologists,
programmers and accountants speaking Korean and Chinese languages are in great demand on the
labor market.
The average monthly wage is MNT 180,000 to 260,000
Source: Montsame National Newsagency
POLITICS
PM NAMES HIS CABINET
Parliament appointed 12 of 15 ministers to the new Cabinet as suggested by Prime Minister S. Bayar
on December 5. The remaining Ministries are under discussion with several alternative nominees
and a final decision is expected next week.
State Secretary of Finance, Ch. Khurelbaatar nominated for Fuel and Energy Minister, and Deputy
Minister of Finance, Ch. Ganzorig nominated for Road, Transport and Tourism Minister were not
discussed at the plenary session. Some media reported it was because the President did not support
their nominations. But a legal advisor to the President told press the President did not present
their appointments to Parliament because the Prime Minister requested they be reconsidered due
to the Democratic Party’s Council’s opposition to these candidates.
The nominee for the Minister of Nature and Environment was not discussed because the Republican
Party (RP) refused to sign a contract with the MPRP to cooperate in the new cabinet. They said
they disliked some provisions of the contract and had earlier said they wanted the ministerial
positions of Finance and Industry and Trade. RP leader, B. Jargalsaikhan stated that his party wants
to hold talks with the MPRP on the new Cabinet as soon as possible.
The new Cabinet is:
Former Prime Minister M. Enkhbold as Deputy Prime Minister (with votes of 73.6%); MP, Ch. Ulaan
as Finance and Economy Minister (83.9%); MP, Ts. Monkh-Orgil as Justice and Internal Affairs
Minister (91.4%); acting Minister D. Demberel as Social Welfare and Labour Minister (85.2%);
Erdenet mining plant general director Kh. Narankhuu, as Industry and Trade Minister (92.7%);
Capital City’s Citizens’ Representative Khural chairperson, N. Bolormaa as Education, Culture and
Science Minister (73.7%); State Secretary of the Health Ministry, B. Batsereeden as Health Minister
(85.5%); Foreign Minister N. Enkhbold as chairman of the Government Secretariat (90.2%); MP, J.
Batkhuyag as Defence Minister (66.1%); former Deputy Minister of Food and Agriculture, Ts.
Gankhuyag as Food and Agriculture Minister (93.1%) and CWP leader and MP, S. Oyun as Foreign
Affairs Minister (93.1%).
Read more: The Mongol Messenger
2008 STATE BUDGET APPROVED
Mongolian parliament approved the state budget for the 2008 fiscal year within the legal timeframe,
on November 30. The budget specifies that budget revenue will be MNT1.7 trillion and maximum
expenditure will be MNT1.9 trillion. Mongolia’s GDP was estimated to increase by 10.1 percent and
GDP per capita at US $1747. The Finance Ministry said GDP in 2008 would reach MNT 5.6 trillion,

4. but economic analysts said another MNT 2 to 3 trillion was hidden in the shadow economy (in
undisclosed taxes).
Lawmakers approved maintaining expenditure at 31.4 percent of the GDP. Budget deficit was
estimated at 2.5 percent of GDP.
Source: Enews 92
PRESIDENT’S GULF TRIP SEALS DEALS
President N. Enkhbayar and a delegation visited the three Gulf States from November 23 to
December 1. In the United Arab Emirates air links, veterinary services, labor and conservation of
wild birds (falcons) were discussed. Significant for economic growth is Emirates Airline’s interest in
conducting flights to Ulaanbaatar to be facilitated by the air link protocol. A senior government
official said the UAE is planning talks with Mongolia to forge the first-ever air accords.
In Kuwait, the President signed agreements on bilateral cooperation in oil and education. In Qatar,
agreements were signed in veterinary services, investment promotion, youth exchange and
cooperation between the chambers of commerce.
Read more: www.arabtimesonline.com
KUWAIT MONGOLIA TO BOOST OIL TIES
Kuwait and Mongolia signed a memo of understanding (MoU) November 26 during President N.
Enkhbayar’s State visit to Kuwait to further bilateral cooperation between the Kuwait Petroleum
Corporation (KPC) and the Mineral Resources and Petroleum Authority of Mongolia (MRPAM).
The Kuwaiti Minister of Electricity and Water and Acting Minister of Oil, Mohammad Abdullah Al-
Olaim, and the Mongolian acting foreign minister, N. Enkhbold signed the MoU.
Read more: www.arabtimesonline.com
ECONOMIC INDICATORS
CURRENCY RATES – December 6 2007
Currency name Currency Rate
US dollar US $ 1170.96
Euro EUR 1723.01
Japanese yen JPY 10.61
British pound GBP 2389.64
Hong Kong dollar HKD 150.18
Chinese Yuan CNY 158.51
South Korean won KRW 1.27
North Korean won KPW 8.19
Canadian dollar CAD 1153.20
Australian dollar AUD 1018.68
Taiwan dollar TWD 36.26
Indonesian rupiahs IDR 0.13
Malaysian ringed MYR 350.25
Singapore dollar SGD 809.18
INFLATION
December 6 2007
October 0.9
YTD 13.2
12 months 14.2