The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key stories covered include: - Oyu Tolgoi mine is confident disputes with the Mongolian government can be resolved to allow development of the underground mine to continue. - Turquoise Hill Resources completed the divestment of its interest in Inova Resources for $85 million. - Over 100 exploration licenses were revoked by Mongolia as part of an investigation into corruption, concerning foreign and domestic mining investors. - Prophecy Coal restarted operations at its Ulaan Ovoo coal mine, hiring staff and recalling equipment to mine 30,000-50,000 tons per

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 299 – November 8, 2013
NEWS HIGHLIGHTS:
Business
 Oyu Tolgoi confident disputes can be resolved at its Mongolian mine;
 Turquoise Hill completes Inova Resources divestment;
 Investors cry foul as Mongolia revokes mine licenses;
 Prophecy Coal restarts Mongolian coal mine;
 TDB to cooperate with Microsoft;
 IFC signs first forex hedge facility with XacBank;
 Moody's withdraws the ratings of Golomt Bank;
 Donshen Oil Mongolia and PetroChina Daqing announce 50% divestments;
 Venn Strategies gets government lobbying contract;
 Firms aim to open cinemas in all corners of Mongolia;
 Dacheng Law opens office in Mongolia;
 British Home Stores launches in Ulaanbaatar;
 U.S. ice hockey team inks sponsorship deal with Golia Vodka;
 Mongolian Mining Summit in Perth, Australia;
 BDO hosts regulatory conference;
 Centerra announces quarterly dividend;
 Rio and Chinalco sign technology deal.
Economy
 World Bank cuts Mongolia's growth forecast to 12.5 percent;
 FX auction;
 Premier promises MNT 5-6 billion from Chinggis bond to every province;
 Amgalan thermal station 30 percent complete;
 Mongolia to sell USD 50bn of coal from TT deposit to China over 20 years;
 Water Authority to raise household water price;
 Government commits to iron ore industry development;
 Khaan-Uul district suffers from sewage leaks;
 Educators push for quality education during World Teachers' Day;
 The supercharged credit boom;
 Mining valuation gap blocks big mergers;
 An 8-year-old girl’s lung cancer is blamed on air pollution;
 Kazakhstan steps up fight against shadow economy;
 Neighborhood ties drive SE Asia growth;
 HIV ‘Wave’ feared in Central Asia;
 Balancing total Government debt.
Politics
 DP makes 2014 budget cuts;
 North Korea, Mongolia agree on annual foreign ministers' talks;
 Why Kim Jong Un snubbed Elbegdorj;
 Mongolia pushes for eased visa requirements worldwide;
 Mongolia signs protocol against illegal tobacco trade;
 Mongolian Honorary Consulate opens in Samsun, Turkey;

2.  Burkhan Khaldun announced as national heritage site;
 ADB reflects on financial regulation and governance programs;
 Researchers worry fossil looters will maintain dino mystery;
 Nests of big-clawed dinosaurs found in Mongolia.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank International SOS
Wagner Asia Automotive Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BCM MONTHLY MEETING NOTICE
BCM‘s monthly meeting for members will be on Monday, November 11, 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
- Matthew Pottle, Managing Partner, PWC – ―PwC CEO Survey 2013 – Confidence in growth‖
- Nick Cousyn, Chief Operating Officer, BDSec – ―A Westerner‘s Journey to the DPRK‖
- David L. Wyche, Economic/Commercial Section Chief, US Embassy – ―The U.S.-Mongolia

3. Transparency Agreement‖
- S. Javkhlanbaatar, Director General of Foreign Investment Regulations & Registration Department,
Ministry of Economic Development – ―Update on New Investment Law‖
After the meeting those of you with reservations for BCM‘s Membership Renewal Dinner should
proceed to the ―Tenger‖ Restaurant on the 1st floor, Kempinski Hotel Khan Palace.
BUSINESS
OYU TOLGOI CONFIDENT DISPUTES CAN BE RESOLVED AT ITS MONGOLIAN MINE
The Rio Tinto PLC-managed Oyu Tolgoi LLC says it is confident that disputes which have stalled the
construction of the giant copper and gold mine in Mongolia can be resolved.
The nearly USD 7 billion project in the remote Gobi Desert has been plagued by conflict between
Rio Tinto and its major partner, the Mongolian government, over project financing, cost overruns,
and other issues. Head of communications for Oyu Tolgoi, Houston Spencer, told the Mongolian
Mining Summit in Perth that while there had been "challenges", the disputes were being worked
through by the parties.
"Oyu Tolgoi's investors, Turquoise Hill and Rio Tinto, continue discussions with the government of
Mongolia, discussions on issues that must be overcome as part of the further development of OT's
underground mine," he said.
Spencer, who is also a Rio Tinto representative on the Oyu Tolgoi executive committee, said a
collaborative solution is required to sort out outstanding issues so work can resume at the
underground mine. Production began in July but the first delivery of copper concentrate was held
up by delays at Chinese customs. That issue has been resolved and the first deliveries to customers
were made in mid-October. Oyu Tolgoi's chairman, Batsukh Galsan, played down the disputes in his
presentation to the conference.
"We have faced many issues to achieve what OT is today: a world class open pit and concentrator
facility with on going exports," he said.
Galsan also played down a big slump in foreign investment following laws which differentiated
between local and foreign investors. That legislation has been superseded by a new investment law
passed earlier this year by the Mongolian parliament. Galsan was Mongolia's Ambassador to Australia
from 2005 to 2010. The partners are also waiting for project financing of USD 4 billion to USD 6
billion to be finalized ahead of a December deadline.
The mine has produced more than 160,000 tons of copper concentrate and is forecast to produce up
to 85,000 tons of copper by the end of the year.
Source: ABC
TURQUOISE HILL COMPLETES INOVA RESOURCES DIVESTMENT
Turquoise Hill Resources Ltd. 1 November announced the completed divestment of the entirety of
its interest in Inova Resources Ltd. to Shanxi Donghui Coal Coking & Chemicals Group Co., Ltd for
approximately AUD 90 million (USD 85 million).
Turquoise Hill announced that it had entered into a pre-bid acceptance deed with Shanxi in respect
of 108,502,084 ordinary shares representing approximately 14.9 percent of the issued and
outstanding ordinary shares in Inova on 21 August at AUD 0.22 cash per share. Shanxi announced
that all outstanding regulatory approvals for the takeover offer had been obtained on 29 October
and that it had waived all remaining conditions other than the 51 percent minimum acceptance
condition. Turquoise Hill has accepted the takeover offer for its 56.1 percent of shares in Inova.
As the 51 percent minimum acceptance condition has now been satisfied, the takeover offer is no
longer conditional. The takeover offer will remain open until 7:00 pm, Australian Eastern Standard
Time, on November 14, unless further extended by Shanxi.
Source: Turquoise Hill Resources Ltd.

4. INVESTORS CRY FOUL AS MONGOLIA REVOKES MINE LICENSES
Mongolia has annulled more than 100 exploration licenses as part of an investigation into mining
sector corruption, raising further concerns among investors about the risks of doing business there.
Mongolia-focused Kincora Copper said on Thursday that it had received a letter from the Mineral
Resources Authority saying that two of its licenses had been revoked following a criminal
investigation into former government officials accused of illegally issuing a total of 106 exploration
licenses between 2008 and 2009.
All of the 106 licenses have been canceled.
Kincora Copper said the move, which will affect the licenses of an estimated 11 foreign and 67
domestic firms hoping to explore for a range of minerals, highlighted the uncertainty facing a
growing legion of investors.
"Security of tenure and a transparent legal system are key cornerstones for both domestic and
foreign private sector investment," said Sam Spring, president and chief executive of Kincora
Copper, in an email.
Surenjav Odbayar, head of research at Ulaanbaatar-based brokerage National Securities, said the
case related to two government officials caught up in a crackdown on corruption that was launched
ahead of Mongolian President Tsakhia Elbegdorj bid for re-election this year.
Kincora's Spring said arbitration for his own company would only be a last resort, and that they
would first seek to resolve the matter directly with the government.
Source: Reuters
PROPHECY COAL RESTARTS MONGOLIAN COAL MINE
Canadian coal miner and energy project developer Prophecy Coal Corp. on Monday announced that
operations at its Ulaan Ovoo mine had restarted as scheduled and within budget.
Prophecy said that all the required mining, safety, and transportation staff were re-hired and all of
the company's leased-out mining and transportation equipment had been recalled and had arrived
on site. With a fleet of three operating mining excavators, 6 dump trucks, and more than 20 owned
and leased transportation trucks, the company expected to mine and transport about 30,000 to
50,000 tons per month of coal in November and December, if the weather allows it. The company
reported the road condition from the mine to the Sukhbaatar rail siding to be normal and coal was
continuously being sold to a number of Prophecy customers.
Prophecy last month said it had added a third off-take partner for its Ulaan Ovoo mine, after it had
struck and accord with a new customer with ―substantial presence‖ in the region to buy 30,000 tons
a month. The company‘s asset would also supply more than 30,000 tons a month of coal to cement
plants, a metallurgical plant, a heat plant, chemical plants and Russian traders, all of which signed
binding agreements over the past two months.
The company had also recently executed a coal sales contract of significant quantity with a buyer in
Russia, which is contingent on the ability to transport coal through the Zeltura border. Prophecy
said a Mongolian government resolution had listed the border as being "under renovation," meaning
it was neither open, nor closed. Prophecy could not give a definitive timeframe to start
transporting coal through the border post. The road improvement, which required a feasibility study
and environmental impact assessment studies, were expected to be complete by the end of the
year. The road improvement project was expected to take two to four months.
Source: Mining.com
TDB TO COOPERATE WITH MICROSOFT
Trade and Development Bank (TDB) of Mongolia LLC and local IT company, Soft Line, have inked an
agreement of cooperation with Microsoft Corporation in Ulaanbaatar on 31 October.
Under the agreement, Microsoft will assist TDB in bringing the quality of its software and security to
the international level. The partnership has TDB receiving access to up to date, authorized software
solutions in addition to training for Microsoft Office for its IT engineers. The training will be part of
regularly provided consultative service.
Source: Info Mongolia

5. IFC SIGNS FIRST FOREX HEDGE FACILITY WITH XACBANK
International Finance Corp. has signed a swap agreement with XacBank LLC, offering a USD 50
million facility to help Mongolia‘s fourth-largest lender hedge its foreign exchange risks by
converting U.S. dollar-denominated borrowings into Mongolian tugrug.
The deal marks IFC‘s first local-currency offering in the country and will help the bank enhance its
lending capacity to support micro, small and medium businesses. IFC, a member of the World Bank
Group, is one of a few financial organizations that extend long-maturity risk management products
to companies in emerging markets. IFC helps firms improve their risk management and enhance
their creditworthiness by helping them to access the international derivatives markets in order to
hedge currency-, interest rate-, or commodity-price exposure.
―IFC‘s versatile services are critical for XacBank to cope with Mongolia‘s fast-paced growth,‖ said
XacBank Chief Executive Officer Bat-Ochir Dugersuren. ―IFC helps us better manage risk so that we
can concentrate on scaling up support for micro, small and medium businesses that are the
backbone of Mongolia‘s long-term growth.‖
Source: International Finance Corp.
MOODY'S WITHDRAWS THE RATINGS OF GOLOMT BANK
Moody's Investors Service has withdrawn the ratings of Golomt Bank LLC because it believes it
currently does not have sufficient or otherwise adequate information to support the maintenance of
the rating.
The ratings withdrawn are: E+ standalone bank financial strength rating (equivalent to a b1 baseline
credit assessment, BCA); B1 issuer rating; B1 local currency long-term deposit rating; and B2 foreign
currency long-term deposit rating. Domiciled in Ulaanbaatar, Golomt reported total unaudited IFRS
assets of MNT2 .5 trillion as of 31 December 2012. The bank is 84.6 percent owned by Bodi
International LLC (unrated), 10.1 percent by Swiss MO Investment AG (unrated), and 5 percent by
Trafigura Beheer B.V. (unrated).
―The audited financial statements will become publicly available as a reference for our valued
clients and partners in the immediate future. We look forward to re-engaging with Moody‘s
thereafter,‖ said a representative of Golomt in response to the decision.
Source: Moody's Investors Service, Cover Mongolia
DONSHEN OIL MONGOLIA AND PETROCHINA DAQING ANNOUNCE 50% DIVESTMENTS
Donshen Oil Mongolia and PetroChina Daqing Tamsag have announced their intention to begin
divesting their ownership in Mongolian oil assets.
The companies said they are divesting 50 percent of each of their equity stakes due to instability in
the Mongolia's legal environment. Management from both companies gave a statement warning that
the instability in the legal environment could lead to the close of the project.
China's Donshen Oil has pumped 2.9 million barrels oil at Zuunbayan Bag of Sainshand Soum,
Dornogobi Aimag since 2003. It has a product sharing contract with the Mongolian government and
has invested a total of USD 188 million into the oil venture.
Mongolia currently has 16 companies conducting oil exploration and three producing.
Source: Zuunii Medee
VENN STRATEGIES GETS GOVERNMENT LOBBYING CONTRACT
The government of Mongolia has hired Venn Strategies on a lobbying contract.
Venn will work on "government and public affairs services," according to the filing with the
Department of Justice. Specifically, they will "educate key stakeholders regarding opportunities for
trade and investment in/with Mongolia." Venn will be paid USD 45,000 per month for the year-long
contract—plus an additional USD 5,000 for monthly expenses.
Source: Politico
FIRMS AIM TO OPEN CINEMAS IN ALL CORNERS OF MONGOLIA
Systems integrator Cinema of Sound LLC and Kinoton Korea, Inc have partnered with the Ministry of

6. Culture, Sport and Tourism to bring a network of professional, high-quality sound to new cinemas in
Mongolia.
Cinema of Sound and Kinoton are contracted to build 50 new Standard Cinema Point theaters in
provinces, towns and city districts in 2013, bringing the total of theaters in Mongolia to 70. Twenty
installations have been completed to date. JBL‘s JRX125 dual-15-inch loudspeakers and Crown‘s DSi
2000 amplifiers will be installed into each of the new cinemas.
―Mongolia is a country that has vast areas of scattered settlements and sparse population—so sparse
that our country‘s most remote citizens watch movies only on television as there are no theaters,‖
said Jigjidsuren Khurelbaatar, chief executive officer of Cinema of Sound.
Chris Bae, managing director of Kinoton Korea, added, ―By standardizing the equipment we‘re
using, we know we can depend on a high level of audio quality and dependable day-to-day
operation no matter where the theaters are located.‖
Source: ProAudio-Central.com
DACHENG LAW OPENS OFFICE IN MONGOLIA
Dacheng Law Offices has become the latest foreign firm to set up a base in Mongolia‘s capital
Ulaanbaatar.
Dacheng‘s Ulaanbaatar office will be led by senior partner Lu Hada, who has relocated from the
firm‘s Beijing head office to Mongolia. Lu is from the Inner Mongolia autonomous region and is
native in both Mandarin and Mongolian. This is Dacheng‘s latest international expansion, which gives
the firm a total of nine offices outside of China. Most recently, the firm became the first Chinese
firm to open an office in Moscow, an initiative led by senior partner and deputy chair Xu Yongqian
on 19 August 2013.
A number of other Chinese firms also have an office in Ulaanbaatar, including Beijing-based Longan
and Lehman Lee & Xu. Several international firms have also entered into Mongolia, some through
local associations. Hogan Lovells (3 August 2010) and DLA Piper (24 March 2011) formed a local
alliance in 2010 and 2011 respectively, while Australian firms Allens (10 November 2011) and Minter
Ellison (1 February 2012) both have an office in the capital city.
Source: The Lawyer
BRITISH HOME STORES LAUNCHES IN ULAANBAATAR
The British Home Stores (BHS) opened its doors in Ulaanbaatar‘s MaxMall Shopping Center on 28
October.
The BHS department store chain in Ulaanbaatar that primarily sells clothing and household items is
its second location in Asia and 15th overseas. At the launching ceremony were Ambassador of the
United Kingdom of Great Britain and Northern Ireland to Mongolia Christopher Stuart, BHS Manager
Responsible for International Activities Rebecca Hays, BHS Manager Responsible for Regional
Management Caroline White, Director-General of Max Group D. Tserenjigmed and other officials.
―We are truly happy to open a store here and hope Mongolian customers will be satisfied with our
quality and products,‖ said BHS Manager Rebecca Hays.
BHS Mongolia is franchised by Max Line LLC of Max Group.
Source: Info Mongolia
U.S. ICE HOCKEY TEAM INKS SPONSORSHIP DEAL WITH GOLIA VODKA
The New Jersey Devils have announced a multi-year sponsorship deal with Golia Vodka, one that
includes naming rights for one of the Prudential Center's premium lounges and branding throughout
the Newark arena.
The vodka, which is imported from Mongolia and was recently launched in the Northeast, already
has its logo in more than 100 electronic displays around the venue, the team said today in
announcing the deal. The Prudential Center also unveiled the newly branded Golia Ice Lounge for
the Devils' home opener early this month. The marketing partnership is projected to expose Golia to
more than two million people annually during Devils home games and other events at the six-year-
old arena, which seats more than 17,000. That's not to mention the thousands who will visit the

7. Rock next January for the Super Bowl XLVIII media day.
Golia recently became available in New Jersey, Pennsylvania, New York and Delaware, according to
a news release. Under the marketing deal, the brand will also receive radio commercials during
every Devils game broadcast, special placement on the arena menus and ads on the Devils and
Prudential Center website. The Golia brand is owned by ReStore Asia Ltd. The company's chairman
is David Solomon, who helped develop the Redbox DVD vending machine and reportedly owns a 20-
store Toys R Us franchise.
The Ice Lounge was previously branded under a deal with Belvedere Vodka.
Source: NJ Biz
MONGOLIAN MINING SUMMIT IN PERTH, AUSTRALIA
Some twenty representatives of Mongolia attended the 2013 Mongolian Mining Summit held from 29
to 31 October in Burswood, Australia.
The summit was organized in Australia to foster participation in some of the world‘s biggest
undeveloped mineral reserves. The Mongolian delegation was led by a Oyu Tolgoi LLC Chairman G.
Batsukh, Director of Department of Strategic Policy and Planning at the Mining Ministry
Chuluuntsereg Otgochuluu, and Mongolian Mining Corporation Executive Director G. Battsengel.
The summit included insights from 14 Mongolia-based mining insiders who gave on how to improve
government relationships, partner with local companies, and the investment opportunities and
challenges. Some of the project showcases were for the Ukhaa Khudag coking coal mine, Oyu
Tolgoi, Ovoot coking coal project, the Tsagaan Uvuljuu project, and the South Gobi project.
Source: Montsame
BDO HOSTS REGULATORY CONFERENCE
BDO Advisory LLC will present a two-day event next week to discuss regulatory issues in the
Mongolian market.
Participants will discuss issues such as internal control, fraud, risk management. Participants will
include representatives of banks, insurance companies, leading mining companies, government
agencies for anti-corruption and fraud, the Mongolian Stock Exchange, and Bank of Mongolia.
Source: BDO Advisory LLC
CENTERRA ANNOUNCES QUARTERLY DIVIDEND
Centerra Gold Inc. announced 30 October its board of directors had authorized a dividend of CAD
0.04 per common share for an approximate total of USD 9 million.
The dividend is payable on November 25 to shareholders of record on November 15. The ex-dividend
date will be November 13. In accordance with Centerra's dividend policy, the timing and quantum
of dividends are to be determined by the board of directors from time to time, based on, among
other things, the company's operating results, cash flow and financial conditions, Centerra's current
and anticipated capital requirements, and general business conditions.
While Centerra currently intends to pay quarterly dividends to its shareholders, there can be no
assurances in this regard.
Source: Centerra Gold Inc.
RIO AND CHINALCO SIGN TECHNOLOGY DEAL
Mining giant Rio Tinto PLC has signed a memorandum of understanding with Chinese State-owned
group Chinalco to expedite the development of new mining technology, and to further develop Rio‘s
Mine of the Future program.
The collaboration brought together Rio‘s leadership in partnering to deliver mining innovation with
the resources and expertise of Chinalco‘s research and development centers. The aim is to develop
and deploy technology to create safer working operations, improve environmental performance and
increase the productivity of mining operations. The focus will be on enhancing the value of both
companies‘ partner networks by allowing new ideas to be developed and applied at a faster pace
and at a lower cost.

8. ―We have been in the business of producing metals and minerals for over 140 years. We wouldn‘t
have been as successful as a business without finding better ways of working and adapting to a
changing world,‖ Rio Chief Executive Sam Walsh said. ―The future leaders in our industry will be
those companies that stay ahead of the game and keep applying fresh thought and practices to the
business of mining.‖
Chinalco chairperson Xiong Weiping noted that the technical cooperation was of great significance
for improving efficiency, reducing resource and energy consumption, developing green and safe
mines, achieving sustainable development of resources and introducing innovation into economic
growth.
―I hope this commercial cooperation approach of sincerity and mutual benefit can be widely applied
into new-type partnerships among major international companies,‖ he added.
Rio and Chinalco will work together to determine how best to capture the potential for cooperation
in this area, and the arrangements contemplated by the memorandum remain subject to the
execution of a binding agreement.
Source: Mining Weekly
ECONOMY
WORLD BANK CUTS MONGOLIA'S GROWTH FORECAST TO 12.5 PERCENT
The World Bank on Wednesday lowered its growth forecast for the Mongolian economy, while urging
the government to tighten its fiscal policies to achieve economic stability.
In its latest Economic Update, the World Bank said though the Mongolian economy will likely record
another double digit growth this year it is still exposed to downside risks.
The forecast for this year has been revised down to 12.5 percent from 13 the lender had projected
in the earlier report published in April. The downgrade reflects the slower-than-expected growth in
China, and the weaker recovery in the domestic mining sector than estimated earlier.
The mounting balance of payments imbalance poses a significant challenge to the Mongolian
economy as foreign investments continue to decline and mineral exports remain weak. The fiscal
and monetary policies should be tightened further to address the growing current account deficit
and stabilize the economy.
"Loose monetary policy has led to accelerating credit growth in recent months, particularly in
construction and housing sector," the Washington-based lender said. "The recent acceleration of
credit growth needs close attention from the monetary authorities."
The report, meanwhile, noted that the government's fiscal consolidation plan is a positive step
toward a more sustainable fiscal path.
Source: RTT News
FX AUCTION
The Bank of Mongolia auctioned Chinese yuan and U.S. dollars to commercial banks. The central
bank sold CNY 37.8 million to local commercial banks and USD 5 million in swap agreements with
commercial banks.
Source: Montsame
PREMIER PROMISES MNT 5-6 BILLION FROM CHINGGIS BOND TO EVERY PROVINCE
Prime Minister Norov Altankhuyag announced his intention to ensure that each province would
receive between MNT 5 billion and MNT 6 billion from the Chinggis bond to finance their
development at a meeting with provincial officials from around the country.
The event was held for experience sharing between governing officials, with most saying great
attention was being paid to housing projects. Khovd Aimag Governor D. Tseveenravdan said the new
power plant there was nearly complete, and Selenge Aimag Governor S. Burenbat said an electric
line to the Eruu area was the biggest project in Selenge. Sukhbaatar Aimag Parliament leader P.
Munkhjargal said his province was supporting three different housing projects for the sale of

9. apartments for MNT 15 million each to 180 households and apartments for MNT 40 million each to
200 households, and the allocation of land in ger districts to households along with their connection
to central infrastructure.
Tuv Aimag Governor D. Batbayar said his aimag was using the completed construction of a new
thread factory as a launch point for the construction of a full textile factory. He also noted the
completed construction of the Salkhit wind farm and development of a new international airport at
Khushigt Valley.
Source: Zuunii Medee
AMGALAN THERMAL STATION 30 PERCENT COMPLETE
China Machinery Engineering Corporation (CMEC) has so far completed thirty percent of the
construction of the Amgalan Thermal Power plant.
CMEC will receive its financing from the Mongolian government once completed with the
construction of the power plant, equipped with the latest technologies. The plant will cover 10.8
hectares of land for the renovation of the US-15 state-owned heating furnace at Bayanzurkh
District, Ulaanbaatar. The plant will have a capacity to supply heating to some 50,000 households
on the east side of Ulaanbaatar.
Prior to the construction, the capital city authorities relocated the families and business entities
located around the US-15 station. The thermal power plant will be on stream in August 2014.
Source: Montsame
MONGOLIA TO SELL USD 50BN OF COAL FROM TT DEPOSIT TO CHINA OVER 20 YEARS
Prime Minister Norov Altankhuyag presented the results of his visit to China during his 30-minute
weekly press conference last week, including an agreement for USD 50 billion worth of coal sales
over the next two decades.
The prime minister said he had signed a memorandum of understanding committing 1 billion tons of
coal over 20 years from the mines operating on the Tavan Tolgoi coal deposit, including those
owned by Erdenes Tavan Tolgoi, Tavan Tolgoi JSC, and Energy Resources. The price for coal sales
will be pinned to market prices for a projected USD 50 billion. The chief commodity for export will
be coking coal, but there are also plans to build a coal-to-liquid plant to sell fuels processed from
brown coal extracted from the Tavan Tolgoi area for domestic sale and export to China. China has
also agreed to import four times the current amount of petroleum from Mongolia for processing.
The increased import volume would allow the monthly import of Mon-93 type fuel made from
Mongolia-extracted oil processed in China from 10,000 tons a month to 35,000 to 40,000 tons.
Other announcements included the decision to create four new border points, each of which would
be connected to the rail network. Altankhuyag said Mongolia can expect eased conditions for the
creation of a rail line that would run through Sukhbaatar Aimag. Additionally, Mongolia is set to
receive a loan of USD 240 million with similar conditions to that of the 2012 Chinggis bond and send
1,000 students to China for education over the next five years.
Source: Undesnii Shuudan
WATER AUTHORITY TO RAISE HOUSEHOLD WATER PRICE
The Water Authority has raised the price for household water consumption to a minimum MNT 2,000
a month for each household.
The Water Authority and non-governmental organizations participated in a public discussion on the
topic ―What kind of water is used in UB?‖ on 31 October. The discussion revealed that ger districts
residents, who make up the majority of Ulaanbaatar's population, consume an average of 8 liters of
water a day compared with 150 to 200 liters of average water consumption in apartments a day,
according to data collected from the 45 percent of apartments that have water meters. Ger district
residents pay MNT 1 per liter compared with MNT 29 for apartments. The Water Authority has raised
the minimum hoping to encourage more efficient water usage.
Source: Undesnii Shuudan

10. GOVERNMENT COMMITS TO IRON ORE INDUSTRY DEVELOPMENT
The Ministry of Mining and Mongolia's Association of Metal Producers Thursday established a
cooperation memorandum.
The document was signed by the ministry's state secretary, R. Jigjd, and by the Association head
Kh. Enkhsaikhan. The intention is to meet the entire metals demand from the domestic market. The
memorandum promises government support for establishing a steel industry in Mongolia that can
satisfy domestic demand as well as export production. The goal is to introduce an industry capable
of producing iron ore and concentrate.
Source: Montsame
KHAAN-UUL DISTRICT SUFFERS FROM SEWAGE LEAKS
Soil pollution and factory waste have put Khaan-Uul district at risk of becoming a source for the
spread of hepatitis with the recent sewage leaks seen in the area.
Several apartment complexes, School No. 115 and two kindergartens in the 15th khoroo of Khaan-
Uul have seen a recent overflow of sewage due to poor urban planning. One pump responsible for
the distribution of heat and clean water has been connected with 23 apartment buildings, but not
all have the necessary permissions.
The overflowing fluid is now exposed to the outside environment where people can step in it and
cars can drive over. The sewage has even seeped into some underground car garages while residents
living in the first and second floors of apartments must suffer the stench emitted from the sewage.
The sewage is also reportedly contaminating the soil and Tuul river.
City officials have yet to take actions regarding the sewage.
Source: Zuunii Medee
EDUCATORS PUSH FOR QUALITY EDUCATION DURING WORLD TEACHERS' DAY
The Federation of Mongolian Education and Science Unions (FMESU) has organized a joint meeting
under the theme, "I have a message for the government," at the Confederation of Mongolian Trade
Unions' level. The meeting was held in conjunction with the one-year Education International Unite
for Quality Education initiative.
FMESU will increase its efforts to campaign for improved salaries, work conditions and pension
arrangements for teachers, secure better curricular support, and improve teachers' professional
development, as well as better school environments and facilities. The union is pursuing these
actions "because all of these elements contribute to better quality education," said FMESU President
Jakhar Batzorig.
FMESU and its members celebrated World Teachers' Day (WTD) on 5 October at the Trade Union
Palace in Ulaanbaatar, where a meeting of 300 teachers and education workers, from pre-school to
university, with students' representatives, the minister of education, and invited officers from
district and city education departments was organized. During this meeting, the Ministry of
Education and Science announced a new regulation on teachers' assessment—this was opposed by
the FMESU. In addition, a FMESU-City Education Department joint working group on revision for the
new regulation was established. This joint working group was FMESU's main achievement linked to
the WTD celebrations.
There was also a national event across the media raising awareness about quality education.
Batzorig was interviewed by several TV channels where he stressed that quality of education is
under attack in Mongolia due to the lack of education funding, schools and kindergartens. Many
diverse activities were held at the school-and kindergarten-level, such as essay writing or drawing.
A debate including teachers, parents, students and policymakers on ways to support better
provision of quality education was also organized.
Source: MENAFN
THE SUPERCHARGED CREDIT BOOM
One of the fastest growing economies in the world, Mongolia is also experiencing a long and
stunning credit boom, with lending having boosted by 48 percent in the last 12 months. As Morgan

11. Stanley pointed out this week, that risk is only made greater by the fact that the boom is now
mainly being funded by the central bank.
Credit in Mongolia has been expanding exponentially in recent years, peaking at 55 percent growth
in 2011. However the inherent risk expanded even further around a year ago, as the country's banks'
dependence on central bank funding began to grow. They now depend on the central bank to a
greater extent than the worst of periphery Europe's basket cases. There are some signs that the
trend has been checked in last few months, but for now country is hugely exposed to any external
shocks.
While the economy continues impressive growth—gross domestic product expansion of 12.5 percent
in 2012 was followed by 11.5 percent in the first half of this year—the International Monetary Fund
warned in early October that expansionary fiscal and monetary policy is being used to compensate
for slowing exports and foreign investment. That has put pressure on the balance of payments. "As a
result," the IMF frets, "central bank reserves have come down considerably from record levels
reached in late-2012 following Mongolia's successful first sovereign bond issuance."
Over a year ago, Fitch was already warning of the pressure these policies were putting on the
country‘s banks. "The pace of credit growth in the Mongolian banking sector has been rapid even by
comparison with other emerging markets," the ratings agency noted in March 2012. "More stringent
controls are needed. Yet the authorities' efforts in controlling credit growth and maintaining
adequate capital and liquidity are compromised by lax implementation."
However, it appears even rapidly disappearing central bank reserves are not enough to push
Ulaanbaatar into action.
Source: BNE
MINING VALUATION GAP BLOCKS BIG MERGERS
A seemingly ―unbridgeable valuation gap‖ between buyers and sellers continues to stymie big
merger activity in the mining sector while private capital has emerged as a growing force in
dealmaking.
A total of 165 deals worth only USD 8 billion were completed in the three months to September,
down from 236 deals worth USD 20 billion in the same period a year ago, according to figures from
consultants Ernst & Young. Excluding the Glencore Xstrata deal, which closed in May, the value of
transactions in the mining sector has fallen by 22 percent to USD 59.5 billion in nine months to
September. After writing off billions of dollars on ill-timed acquisitions and over-ambitious projects,
the world‘s biggest mining companies are shunning mergers and acquisitions (M&A) and focusing on
improving productivity and driving down costs. They are also looking to reduce debt by selling non-
core assets. Last week, Rio Tinto PLC disposed of its stake in Australia‘s third biggest thermal coal
mine to Glencore Xstrata and Sumitomo in a deal worth slightly more than USD 1 billion.
―Much of the mining and metals sector remains cautious and introspective, and this is reflected in
the low risk and predominately domestic nature of deals being done,― said Mr. Downham.
The downturn in mining M&A comes as private equity investors take aim at the industry. This year
nearly USD 25 billion of cash has been raised for funds dedicated to investments in natural
resources, according to separate data compiled by Preqin. Private equity houses have turned to
some of the biggest names in the resource industry in order to bolster their presence in the sector.
TPG and Noble, the commodities trading house, have committed USD 1 billion to a new mining
investment run by Mick Davis, the former chief executive of Xstrata. Aaron Regent, former chief
executive of Barrick Gold, and Roger Agnelli, ex-boss of Vale, are also on the hunt for assets,
backed by funds and banks.
However, many bankers and fund managers believe these vehicles will find it difficult to complete
large transactions. That is because big mining companies are under little pressure to dispose of
assets.
Source: Financial Times
AN 8-YEAR-OLD GIRL‟S LUNG CANCER IS BLAMED ON AIR POLLUTION
An 8-year-old girl in Jiangsu Province is the youngest person in China to have received a diagnosis of

12. lung cancer, which a doctor treating her has attributed to air pollution. Mongolia, too, is grappling
with worsening air pollution, with Ulaanbaatar named the second most polluted city in the world by
the World Health Organization.
The report, which circulated widely online Tuesday, said the girl had been living near busy streets
and inhaling dirty air. It quoted doctor Feng Dongjie, of Jiangsu Tumor Hospital in Nanjing, where
the girl is being treated, as saying that fine particulate matter, known as PM 2.5, could lead to
inflammation once it accrues in the lungs and result in malignant changes.
The news report said cities in Jiangsu, a relatively wealthy province bordering Shanghai, have been
shrouded in haze this month. The report also said lung cancer is the leading form of cancer in
China. The fastest growth rate has been among people between three and 50 years old, it said. The
World Health Organization (WHO) said last month that it was classifying air pollution and the
particulate matter that comprises it as major carcinogens. ―Our conclusion is that this is a leading
environmental cause of cancer deaths,‖ Christopher Wild, the director of the International Agency
for Research on Cancer, which is under the WHO, said at a news conference in Geneva.
This year, levels of PM 2.5 have become a major source of anxiety for many Chinese, especially
those living in cities in northern China, which, because of the prevalence of coal-based industries
and power generation, suffer from the worst air pollution in the country. Propaganda officials
loosened restrictions on reporting by Chinese news media on air pollution after an outcry last
January over the ―airpocalypse,‖ a period when PM 2.5 concentrations in northern China surged to
record levels. Parts of Beijing had nearly 1,000 micrograms of PM 2.5 per cubic meter, which is 40
times the exposure level considered safe by the World Health Organization.
Source: New York Times
KAZAKHSTAN STEPS UP FIGHT AGAINST SHADOW ECONOMY
Kazakhstan is stepping up the implementation of its plan to fight against its shadow economy,
Minister of Economy and Budget Planning Erbolat Dossayev told a weekly briefing of the Central
Communications Service under the President of Kazakhstan on Monday. Mongolia, too, has a large
concentration of informal trade activity where no taxes are paid that it is attempting to trim.
Dossayev noted that the ministry and other public bodies will step up the implementation of the
plan on the fight against the shadow economy. According to Dossayev, 44 out of 122 points, or 43
percent of the 2013-2015 plan, had been implemented in the first nine months of 2013. Dossayey
said the ministry is to focus on raising the effectiveness of state finance management, improving
international economic activity and interdepartmental communications to prevent violations in the
export and import of goods and services.
Source: KazInform
NEIGHBORHOOD TIES DRIVE SE ASIA GROWTH
Last week saw the almost simultaneous visits to China by the prime ministers of three of its
immediate neighbors, Mongolia, Russia, and India.
The timings of the visits might have been coincidental, but coming almost on the heels of visits by
Chinese President Xi Jinping and Premier Li Keqiang to Southeast Asia, they raised eyebrows
internationally. In addition to constructing a "new type of relations between major powers" most
notably with the United States, is China also focusing its foreign policy efforts to refresh its ties
with its neighbors?
This bifocal view on China's latest foreign policy moves was reinforced shortly after the
aforementioned important visits, when late last week no less than Xi himself addressed an internal
working seminar on diplomatic efforts with surrounding countries. The theme of the seminar was
ominous enough: "Let the sense of community of common destiny take deep root in neighboring
countries."
ASEAN countries would very much welcome Xi's latest pronouncement during the seminar that
peaceful development and cooperation toward win-win outcomes remain the cornerstones for
China's foreign policy efforts versus its surrounding countries. In fact, most ASEAN countries see
these cornerstones as a timely reaffirmation of China's avowed foreign policy goals since at least as

13. early as when China first undertook its hugely successful reform and opening-up process. And for
many years, ASEAN countries reciprocated these friendly gestures and offered themselves as
forerunners for investments into China. But due to the unfortunate territorial disputes in the South
China Sea, relations between China and some ASEAN countries, notably the Philippines and
Vietnam, have at times become undeniably strained and rocky.
As such, Xi's statement at this critical juncture to keep up with the times and make more active
efforts in the course of relations between China and its neighbors is particularly timely and much
needed. Moreover, China must be proactive in catalyzing the socioeconomic development of the
region as a whole in these times of global stress. Xi has also proposed a "Silk Road economic belt"
for Central Asia and a "new 21st century maritime Silk Road" through Southeast Asia during his visits
to the respective region, which he brought up again in his most recent speech.
The author is a senior fellow with the S. Rajaratnam School of International Studies, Nanyang
Technological University, Singapore.
Source: Global Times
HIV „WAVE‟ FEARED IN CENTRAL ASIA
Health care systems in Eastern Europe and Central Asia remain woefully unable to cope with
HIV/AIDS as the region‘s raging epidemic—the fastest growing in the world—takes on a new
dimension, a senior U.N. official has told IPS.
Until now the Eastern Europe and Central Asia (EECA) epidemic had been driven by injection drug
use. But data and anecdotal evidence has shown a strong rise in the spread of the disease through
heterosexual transmission as well as via men who have sex with men—potentially throwing up a new
set of challenges for governments and health care ministers. But, says the U.N. Secretary General‘s
Special Envoy on HIV/AIDS in Eastern Europe and Central Asia, Michel Kazatchkine, until a new
approach to treating the disease is taken in countries worst affected by it, the response to the
epidemic will continue to be poor and largely ineffective.
"In some countries it will probably take a wave of deaths, or the death of someone famous or a
prominent member of the Church for anything to change.‖
For many years Eastern Europe and Central Asia has had the world‘s fastest growing HIV/AIDS
epidemic, estimated to have grown by 140 percent in the past ten years. Russia has 70 percent of
all people living with HIV in the region and together with the Ukraine accounts for 90 percent of the
region‘s HIV infection cases.
Access to anti-retroviral treatment is very low—with as little as 8 percent of all those in need of it
being able to obtain it in Russia, for example. Systematic care of those diagnosed with the disease
is also inadequate. International bodies have urged countries in the region to adopt harm reduction
programs, including needle exchanges and drug substitution therapy. The vast majority of funding
for prevention programs has come from foreign organizations, but some of these have left the
country as its regime has become more authoritarian.
Source: IPS News
BALANCING TOTAL GOVERNMENT DEBT
Total government debt currently stands at MNT 10 trillion, or nearly half the economy. Faced with
the ceiling put in place by the Fiscal Stability Law of a debt to gross domestic product (GDP) ratio
of 40 percent, lawmakers are now looking to raise the fiscal ceiling to 60 percent of GDP for 2014.
It is time to talk about what is an acceptable sum for government debt.
The Country Policy and Institutional Assessment (CPIA) determines how much debt a country can
have. The ratings measure the external debt burden against annual GDP as well as debt services
against government revenue and exports. When ranked, Mongolia was placed under the ―average
debt burden‖ category. Meanwhile, the International Monetary Fund (IMF) has advised that
Mongolia‘s external debt must not exceed 40 percent of its GDP.
The government of Mongolia has already borrowed more than can be absorbed by the economy, let
alone be repaid. Nevertheless, politicians are attempting to issue the new Samurai bonds to acquire
more loans from Japan. Mongolia has not even started thinking about bond repayment for when USD

14. 1 billion will be due in 2022. Any debt owed by the government of Mongolia is paid by the public
budget. Therefore, I would like to urge the members of Parliament to pass a law that registers
bonds and government guarantees in the public budget balance and include public expenditure
under a ceiling of 2 percent of GDP.
Instead of acquiring foreign loans, the government needs to create a stable legal environment that
attracts investment, both domestic and foreign, into large-scale long-term projects and establishes
good concession agreements to be implemented on a timely basis. It is time for us to stop making
investments with public funds for large industrial projects and restrict the issuance of government
guarantee to the Development Bank.
The most pressing issues we have today still remain to be resolved. Public governance needs to be
strengthened and there must be greater transparency in government activities.
Source: UB Post
POLITICS
DP MAKES 2014 BUDGET CUTS
The Democratic Party (DP) has called for a reduction in basic operational expenditures and the
cancellation of projects for the 2014 budget.
The party called for less spending on on furniture, such as desk and chairs, and automobile for next
year's budget. It also agreed to provide raises to personnel at government agencies that had
successfully reduced spending that year. Budget drafters have proposed 731 projects for the 2014
budget, of which 289 had been examined. The DP has opted to remove 45 projects for the proposal
list that had not yet commenced, lacked proper documentation, had no government body to
implement them, or lacked land permissions.
Source: Udriin Sonin
NORTH KOREA, MONGOLIA AGREE ON ANNUAL FOREIGN MINISTERS' TALKS
North Korea and Mongolia signed cooperation agreements on economic and cultural fields and
agreed to hold annual talks between their foreign ministers, North Korea's media said Friday.
Mongolian President Tsakhia Elbegdorj was in Pyongyang from 28 to 31 October at the invitation of
Kim Yong-nam, North Korea's parliamentary chief and nominal head of state. Elbegdorj was the first
foreign leader to go to the North after Kim Jong-un assumed power in late 2011. The North's Korean
Central News Agency (KCNA) report indicated that he did not meet with the new young North
Korean leader, who has yet to make a public debut on the diplomatic front. The KCNA report,
monitored in Seoul, said the countries signed cooperation agreements in the fields of industry,
agriculture, culture, sports and tourism, and welcomed them as carrying "weighty significance in
putting the bilateral cooperation on a new stage."
This year marks the 65th anniversary of the establishment of diplomatic relations between the two
nations. The KCNA said the two sides decided to exchange successes and experiences in socio-
economic development and make efforts to create a legal environment favorable for finance and
investment.
Source: Global Post
WHY KIM JONG UN SNUBBED ELBEGDORJ
Mongolian president Tsakhia Elbegdorj had a busy four days in North Korea this week, meeting
various officials and zipping around to Kim Il Sung University, a Pyongyang theater, the Munsu water
fun park, the border with South Korea and Kim family mausoleum, among other places. But after
Tsakhiagiin Elbegdorj had jetted out of Pyongyang on Thursday it became clear that he didn‘t meet
the one person expected to have capped it all: Kim Jong Un.
Experts say it may have something to do with North Korea‘s ambivalent attitude towards the
landlocked country to the northwest. The nomadic ancient Mongolians were considered barbarians
by the Koreans, according to historians.

15. ―North Korea doesn‘t see Mongolia as superior or even an equal,‖ said Lee Yoon-geol, a North
Korean refugee-turned-analyst in Seoul.
While Mongolia has been a traditional ally to North Korea, it isn‘t the first time Pyongyang has
apparently snubbed Ulaanbaatar: In 2004, the North‘s state media carried no mention of a meeting
between North Korea‘s then-leader Kim Jong Il and Mongolia‘s then-President Natsagiin Bagabandi
during the latter‘s visit to North Korea. Like Bagabandi, the current Mongolian president appears to
have had to settle for a chat with the nominal North Korean second-in-command. However the
latest trip went, North Korean state media gave a polite account of the president‘s visit on Friday.
Various economic and cultural agreements were made at meetings this week, according to the two
nations‘ news media accounts, but their details weren‘t publicized. Chang Yong-suk, a senior
researcher at the Institute for Peace and Unification Studies at Seoul National University, said North
Korea is likely saving the first-summit card for China or Russia. In July, the North Korean dictator
met Chinese Vice President Li Yuanchao, believed to be the most senior official to speak with the
North Korean leader since the death of Kim Jong Il in December 2011.
That‘s unless you consider that Dennis Rodman outranks Li.
Source: Wall Street Journal
MONGOLIA PUSHES FOR EASED VISA REQUIREMENTS WORLDWIDE
Mongolia is continuing its agenda to provide Mongolian citizens eased access to foreign countries
with its pursuit of relations with Columbia and Serbia.
Mongolia has agreements with 23 countries for reciprocal permission to enter countries without
visas for both diplomats and government official while ordinary passport holders are able to travel
to 16.
The Cabinet of Ministers voted in favor of a proposal to allow Mongolian citizens to travel to Serbia
without a visa for 90 days. Cabinet members agreed that such a proposal would be a positive step to
encourage bilateral relations with Serbia for tourism and support business after establishing
diplomatic relations between with the former Yugoslavia.
Cabinet members also approved a mutual visa liberalization initiative for holders of diplomatic and
official passports for 30-day travel with Columbia, signed at the 68th U.N. Assembly last September.
Amendments into Mongolia's visa agreements with Poland were also discussed. Since an agreement
was signed between Mongolia and Poland in June 2011, some problems have arisen because the title
―official passport‖ had been translated into English as ―service passport.‖ The passport category
has caused some misunderstandings that held up some officials attempting to enter the country.
Additional clarifications into the agreement were needed so officials could match the titles on
passports to what was specifically mentioned in the agreement.
Source: News.mn
MONGOLIA SIGNS PROTOCOL AGAINST ILLEGAL TOBACCO TRADE
Mongolia's permanent representative to the United Nations last week Friday signed a protocol that
establishes Mongolia's stance against the illicit trafficking of tobacco products.
O. Och signed the document after it was approved by the 5th session of the Conference of the
Parties to the World Health Organization's (WHO's) convention on tobacco control in Seoul on 12
November. The protocol aims to restrict the supply chain for illegal tobacco trade and to improve
international cooperation in the matter. It has been active in reducing the number of countries
involved in such trade and in creating a control system to eliminate the illegal trade.
Mongolia was the 37th country to sign this protocol which will be valid after receiving signatures
from 40 countries. Mongolia joined the convention in 2004.
Source: Montsame
MONGOLIAN HONORARY CONSULATE OPENS IN SAMSUN, TURKEY
The opening ceremony for the Mongolian Honorary Consulate in Samsun, Turkey was held on 31
October.
In attendance were Samsun Governor O. Nuri Cobanoglu, Mongolian Ambassador B. Batkhishig,

16. Mongolian Honorary Consul M. Sungur. Each delivered remarks noting the contribution the consulate
would make to their countries' bilateral cooperation.
Source: Info Mongolia
BURKHAN KHALDUN ANNOUNCED AS NATIONAL HERITAGE SITE
The Government of Mongolia announced in November that the Burkhan Khaldun Mountain shall
henceforth be a national heritage site.
Burkhan Khaldun Mountain has been held as sacred since the times of Bodanchar, the great ancestor
of Khiad Borjigon, to that of Chinggis Khaan. The Mountain became the symbol of the spirit of the
great Mongol state.
The long-running traditions passed down to each Mongolian generation were halted after Mongolia
allied itself with Russia in the 1920s, but traditions commenced once again in 1995.
Burkhan Khaldun received its recognition during the national pride celebration for the ancient
Mongol ruler Chinggis Khaan. Mongolians commemorate the birth of Chinggis each year on the first
winter day, as guided by the Mongolian lunar calendar.
Source: News.mn
ADB REFLECTS ON FINANCIAL REGULATION AND GOVERNANCE PROGRAMS
The Asian Development Bank (ADB) released a report on its assessment of the first phase of
comprehensive financial sector reforms launched in 1996, where the Institute of Economic
Development concluded with a overall assessment of ―Less than successful.‖
Mongolia underwent a transition from monobanking to a two-tiered banking system in 1991.
However, the transition was not smooth with the Mongolian financial system being beset by a
number of financial crises in 1994, 1996, and 1999. In 2008, Mongolia was also affected by the
global financial crisis and a drop in copper prices. The latter prompted the government to enter
into a standby arrangement with the International Monetary Fund (IMF), which ended in October
2010.
The development of the financial sector has been central to achieving the transition from a
centrally planned to a market-based economy due to the financial system‘s critical role in
mobilizing and allocating resources within the economy in a market-oriented system. ADB has
supported the development of the financial sector in Mongolia through loans and technical
assistance.
Read the full report here.
Source: Asian Development Bank
RESEARCHERS WORRY FOSSIL LOOTERS WILL MAINTAIN DINO MYSTERY
An enigma for decades, a giant dinosaur known only for its brawny arms actually towered over the
local tyrannosaurs, paleontologists report. It also ate plants and perhaps sported a surprising sail or
hump on its back.
The dinosaur Deinocheirus mirificus (which means, essentially, "terrible hands that look peculiar")
had been a stubborn fossil enigma for nearly 50 years. Nothing except the dinosaur's eight-foot-long
arms, tipped in three huge claws, and a handful of other bone fragments had ever been found. But
paleontological persistence has finally paid off. During a presentation, Korea Institute of
Geoscience and Mineral Resources paleontologist Yuong-Nam Lee explained that he and his
colleagues had located two additional, more complete Deinocheirus specimens. Only the feet and
the skull were missing from the skeletal reconstruction that Lee presented at the meeting.
Those pieces were missing only because they had been poached by looters. According to University
of Alberta paleontologist Philip Currie, who was involved in the discovery and study of these
dinosaurs through the Korea-Mongolia International Dinosaur Project: "Both the specimens had been
poached and lost their heads, hands, and feet, but our policy has always been to investigate each
poached quarry that we find and to recover any scientifically significant material."
The new Deinocheirus fossils have yet to be formally described and published, but paleontologists
at the conference were elated to see this dinosaurian enigma finally come into full view. There's

17. even a chance some critical fossils have already been found. "We still have no skull material,"
Brusatte said, "although there are rumors of a skull being privately collected, looted from Mongolia,
and sold on the black market to a legitimate museum in Europe." If such a skull exists, or if another
fossil could be found, it would help paleontologists explore whether this dinosaur "had a weird skull
befitting of its weird body," Brusatte says.
Source: National Geographic
NESTS OF BIG-CLAWED DINOSAURS FOUND IN MONGOLIA
A nursery of bizarre-looking dinosaurs known as therizinosaurs has been found in the Gobi Desert in
Mongolia. The nesting colony contained at least 17 clutches of eggs
"Not only is this the largest colony of nonavian theropods, but this is the best documented site,"
said study co-author Yoshitsugu Kobayashi, a vertebrate paleontologist at Hokkaido University in
Japan, who presented the findings at the 73rd annual Society of Vertebrate Paleontology
conference.
The finding suggests the odd little creatures were social animals. Therizinosaurs, which lived about
70 million years ago, sported huge, round guts; stumpy legs; a long neck; and a turtlelike head and
beak. Despite being members of the carnivorous group known as theropods—which includes the
deadly king of the predators Tyrannosaurus rex—the waddling dinosaurs were herbivores.
Kobayashi and his colleagues discovered the nest while in southeastern Mongolia in 2011. On the
last day of their trip, they decided to leave the area they were excavating known for therizinosaur
bones to instead examine another bone bed nearby. The eggs were round, with about a five-inch
(13 centimeters) diameter and rough outer shells. Based on size analysis and the species found in
nearby areas, the team concluded that therizinosaurs laid the eggs. The animals would have been
about 220 pounds (99 kilograms) when full-grown. None of the eggs harbored dinosaur embryos.
However, many of them had holes with eggshells inside, as if a baby dinosaur had poked a hole in
the top of the egg and the broken shells had fallen back inside. The presence of eggshells inside the
eggs suggested that most of the baby dinosaurs had hatched.
Source: Live Science
NEW MONGOLIAN LAWS
The following law, amendments and addenda to laws were published in the latest weekly
Government bulletin. Unless otherwise decided by Parliament, they will take effect ten (10) days
after publication.
Date Laws
1.11.2013 Law on Investment
Annulment of Law on Foreign Investment
Annulment of Law on Regulation of Foreign Investment in Entity Operating in Sector
of Strategic Importance
Amendments to Law on State Registration of Legal Body
Amendments to Law on General Taxation
Addendum to Law on Corporate Income Tax
Addendum to Law Value Added Tax
Addendum to Law on Customs Tariff, Customs Tax
Amendments to Law on Minerals
Annulment of Some Provisions of Law on Special Permit for Business
Addendum to Law on Petroleum
Amendments to Law on Concession
Law on Regulation to Comply Law on Investment
Amendments to Law on Nuclear Energy
Law on Investment Fund

18. Addendum to Law on Corporate Income Tax
Addendum to Law on Company
Amendments to Law on Securities
Amendments to Law on Innovation
Please visit BCM's website, Legislative Working Group, for a summary of Mongolian laws. BCM
members who wish to access complete versions of the laws and regulations in Mongolian language
are welcome to email the BCM office: info@bcmongolia.org.
ANNOUNCEMENTS
AUSTRALIAN UNDERGROUND MINING INDUSTRY PROGRAM, NOVEMBER 21-29
The Australian Trade Commission and the Underground Mining Engineer‘s Association of Mongolia
(UMEAM), is now registering companies and organizations to participate in an Australian
Underground Mining Industry Program, which will take place in Sydney and Brisbane on 21 to 29
November. The program consists of eetings with Australian mining equipment, technology and
service supplier companies in Sydney and Brisbane. Attending the 2013 Underground Mining
Excellence Conference and exhibition will provide an opportunity to engage with the latest
underground mining innovations and technology providers and a possible visit to the North Parkes
underground mine site.
Registration will close on 10 November. Attendance is limited. For more information, call 9910 6102
or send an email to bart.gurbazar@austrade.gov.au.
___________________________________________
ONLY 2 WEEKS LEFT UNTIL MONGOLIA INVESTMENT SUMMIT, HONG KONG
Since opening up the registration for the fourth annual Mongolia Investment Summit 2013 in Hong
Kong from 19 to 20 November, organizers have received an overwhelming response from investors.
With the new Investment Law being passed by the Mongolian Parliament last week, we expect the
investor interest for the Summit to pick up even more.
Meet with up to 500 senior level delegates at the Summit and set up one-on-one meetings with
investors and potential business partners all in one place. Mongolia Investment Summit is the only
Mongolian investment event taking place in Hong Kong, the financial deal-making hub of Asia. All
registered delegates will have exclusive access to our advanced Mongolia Invest Online Meeting
Planner which will allow you to see who‘s coming and let you pre-arrange meetings with the other
attendees to make the best use of your time at the event.
BCM is again a supporting partner organization. BCM members will enjoy 15% discount; please quote
Priority Code 695BCM15D during registration. To speak, sponsor or exhibit: Please contact King Tai
at king.tai@beaconevents.com.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAY, 19:00-19:10
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

19. 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‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available:
The following are presentations 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
___________________________________________

20. • Jim Dwyer, Executive Director of BCM – ―Mongolian Economy: Investment
Opportunity/Challenges‖ at the 16th Annual NAMBC Investors Conference, Sept 24, 2013
• Business-mongolia.com: ―Working group‘s conclusion on the economy‖
• Joshua Sunga, Internship Program Director, AIESEC- "Youth Leadership Development" at the BCM
Monthly Meeting Aug 26. 2013
• G. Zorig, Country Manager, Tree Global Mongolia – ―Tree Global Mongolia Overview Presentation‖
at the BCM Monthly meeting Aug 26, 2013
• G. Saruul, Deputy CEO, Mongolian Stock Exchange – ―Securities Law Overview‖ at the BCM Monthly
meeting Aug 26, 2013
• Bilguun Ankhbayar, Chief Executive Officer, Mongolian Investment Banking Group LLC,
―MIBG Review‖, at the MSE-BCM Securities Law Overview Session, July 4, 2013
• Robert Rooks, Director, PwC Hong Kong, ―A brief Overview of Custody Services‖, at the MSE-BCM
Securities Law Overview Session, July 4, 2013
• Anthony Woolley, Senior Associate, Hogan Lovells, ―The Revised Securities Market Law‖, at the
MSE-BCM Securities Law Overview Session, July 4, 2013
• B. Saruul, Director General, Securities Department, Financial Regulatory Commission of Mongolia,
―Securities Markets Law – Path to Market Reforms‖, at the MSE-BCM Securities Law Overview
Session, July 4, 2013
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―Monthly Macroeconomic Overview, Sep 2013,‖ by EPCRC
- ―Selected Macroeconomic Indicators; data through October 16, 2013‖ by International Monetary
Fund;
- ―IMF Completes 2013 Article IV Mission to Mongolia‖ by International Monetary Fund;
- ―Mongolia Macro Flash‖, Adrienne Lui, Asia Pacific Economics Research, Citigroup Global Markets
Asia Ltd;
- ―Selected Macroeconomic Indicators for Mongolia, as of June 2013‖ by International Monetary
Fund;
- ―Polit Barometer April, 2013‖ by Sant Maral Foundation;
- ―Market Update‖ by Mandal General Insurance LLC;
- ―Annual Report 2012‖ by International Monetary Fund;
- ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International Monetary Fund;
- ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and Development (EBRD);
- ―Official statement of Oyu Tolgoi LLC in relation to information, data and facts related to Oyu
Tolgoi‖ discussed during open session of the State Great Khural‖, dated 1 February, 2013‖;
- ―Mongolia Investment Climate Statement‖, by the Economic and Commercial Section of the U.S.
Embassy;
- ―Mongolia Foreign Labor Force Ratio for 2013‖ by Hogan Lovells International LLP;
- ―How Mongolia will perform in 2013?‖ by Mandal Asset Management;
- ―Mongolia Business Owner and CFO Survey result‖ by BDSec JSC;
- ―The fiscal regime for mining - a way forward‖ by IMF Fiscal Affairs Department;
- ―Taxes for Expatriates in Mongolia‖ by PricewaterhouseCoopers.
The following interviews 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‖;

21. • 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 5th Anniversary BCM Gala dinner on November 5.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
___________________________________________
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,762 fans on our Facebook fans page, 1,519 connections on LinkedIn network, and
795 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn
BCM WORKING GROUP NEWS
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 900 students and
teachers participate with BCM in the University Classroom Project.
Most recently Nick Cousyn, Chief Operating Officer of BDSec gave a presentation entitled ―Capital
Markets in Mongolia‖ to an audience of more than 155 students and teachers at Mongolian National
University (MNU), on November 6. Nick‘s presentation was very fruitful for the students. The
students were very interested about business and the stock market in Mongolia. Lastly Mr. Cousyn
finished by noting that BDSec organizes Stock Market training every Saturday. Also students
available to open stock club in your school.
The next ‗BCM in the University Classroom‘ series will be held later in November at MNU. A Peabody
LLC official will be invited to speak entitled ―Mining and the Environment‖.
BCM WORKING GROUP MEETING
The BCM Education Working Group and TVET NGO joint meeting was organized on 7th November
2013, with 22 members attending.
Saha Meyanathan, Co-chair moderated the session.

22. New Members: Oyuntsatsral Z, Gerlmaa D from Institute of Finance and Economy and Enkhchimeg
D, Mongolian National University were welcomed.
Participants: Orkhon G from ADB, Tungalag Ch from VETC partnership.
Guest: Masahiro Hamano, Takatoshi Takemoto from JICA consultant, Narangarav from Labor
Exchange Central Office, Sabine Muller, Odbayar D from GIZ.
Speakers and topics were:
Higher Education issues:
- Update on GMIT
(Pascal Houben-GIZ Program 'Cooperative Vocational Training in the Mineral Resource Sector in
Mongolia')
- Update on ADB Higher Ed Project. (Orhon -Higher education specialist at ADB)
TVET issues:
- Update on VETC (developments since last meeting in September)
(Saha/ Tungalag Ch -VETC)
- Update on "Common Agenda on TVET", Projects and Industry Concerns (Saha)
- Amendments to Laws (TVET, Safety and Labor Laws) (Saha/Tunga-VETC, MOL)
- Employers survey on skill needs (Ashley-Save the Children)
Presentations available on BCM`s Education Working group web page.
Please contact:erka@bcmongolia.org
ECONOMIC INDICATORS

23. 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]
September 30, 2013 *9.9% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 8.4% y-o-y, Ulaanbaatar city, September 30, 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]

24. CURRENCY RATES – NOVEMBER 7, 2013
Currency Name Currency Rate
US dollar USD 1,715.48
Euro EUR 2,319.50
Japanese yen JPY 17.39
British pound GBP 2,759.35
Hong Kong dollar HKD 221.31
Chinese Yuan CNY 281.52
Russian Ruble RUB 52.97
South Korean won KRW 1.62
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.