May 10 2013

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 273 – May 10, 2013
NEWS HIGHLIGHTS:
Business
 Rio firming up USD 2.5 billion financing for OT;
 Rio Tinto expects Government approval to ship copper in weeks;
 Oyu Tolgoi appoints new Executive Committee members;
 Erdenes TT offers one-year contract for West Tsankhi coal field;
 TT tender to help secure new customers;
 Erdenes TT holds USD 257 million in total debt, says Mining minister;
 MMC to get USD 59 million compensation for rail pact;
 Aspire appoints railway engineer partner;
 Haranga Resources ups resource at Selenge project;
 United Tractors keen on Mongolian coal;
 Hitachi, SMBC ink Mongolia accord;
 Government remains silent on Centerra’s Gatsuurt project;
 Skytel expands mobile access and plans 4G roll-out;
 Tulga delisted by FRC from MSE;
 Nearly half of all chickens die at major poultry, egg producer's farm;
 Alaska professors to help create AUM's engineering school;
 Berkh Uul makes appointments as it relaunches Delgerkhaan mine;
 Guildford appoints non-executive director;
 GE adds energy storage to its Brilliant wind energy turbine.
Economy
 Tugrug tumbles as confidence in Mongolian economy wavers;
 Meat prices remain high despite fall in inflation;
 74 forest fires reported in 2013;
 Mongolia seeks to rebuild agriculture to combat malnutrition trends;
 Commodities hedge fund industry is bleeding money;
 China coking coal price drops;
 China’s economy unexpectedly stumbles again on weak export data;
 Kazakhstan leads Central Asia in trade to China;
 Regional Economic Outlook for Asia and Pacific, April 2013.
Politics
 Elbegdorj leads in re-election bid, poll shows;
 DP backs Elbegdorj's re-election candidacy;
 MPP names wrestling champion as presidential candidate;
 MNDP poised to nominate Enkhsaikhan as presidential candidate;
 CW-GP members abandon ship;
 Mongolians living abroad to vote 14-16 June;
 SMEs to receive tax breaks for computer parts;
 Mongolia takes step towards U.S. FTA with transparency initiative;
 Mongolia to lease land at Tianjin free-trade zone;
 Mongolia signs Partnership Agreement with EU;
 Irish minister visits Mongolia to discuss business opportunities;

2.  China-Mongolia Friendship School becomes bridge: educator;
 NUM to establish Indonesia study center;
 World Press Freedom Day in Mongolia;
 Officials consider Enkhbayar's plea;
 Dinosaur skeleton to be returned to Mongolia;
 Mongolian contortionist breaks Guinness world record;
 Setting the stage for a presidential election.
ECONOMIC INDICATORS
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Major Drilling
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Wagner Asia Automotive
Wagner Asia Equipment Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BUSINESS
RIO FIRMING UP USD 2.5 BILLION FINANCING FOR OT
Global miner Rio Tinto PLC has attracted strong interest for a USD 2.5 billion loan to expand its Oyu
Tolgoi copper and gold mine in Mongolia, in one of the largest resource financings in Asia this year,
banking sources said.
The financing is key for Rio Tinto to go ahead with the construction of an estimated USD 5.1 billion

3. underground mine at Oyu Tolgoi, following the start of commercial sales mid-year from an open-cut
mine. The project loan and the start of commercial sales both hinge on Rio Tinto resolving a dispute
with the Mongolian government over management of the mine, spiraling costs, and taxes. Both sides
have said talks were progressing.
Lenders were scaled back due to strong demand, with 14 lenders submitting credit-approved
commitments ranging from USD 50 million to USD 250 million. Those who submitted commitments
of USD 300 million were scaled back by USD 50 to USD 100 million. Initial mandated lead arrangers
BNP Paribas and Standard Chartered Bank were allocated USD 250 million each.
Australia and New Zealand Banking Group, Credit Agricole CIB, HSBC, ING Bank, Natixis, Societe
Generale and Sumitomo Mitsui Banking Corp. were allocated USD 200 million each. Three other
banks have been allocated USD 150 million and Germany's export credit agency KfW IPEX and Dutch
development bank FMO are also lending.
The project financing has been split into two tranches, with 60 percent in a B-loan tranche with
International Finance Corp. and the European Bank for Reconstruction and Development, and 40
percent through a Multilateral Investment Guarantee Agency (MIGA)-guaranteed tranche. The
margin for the B-loan tranche is 340 basis points over Libor, and GBP 264 over Libor for the MIGA
tranche. Lenders will also earn a flat GBP 250 upfront fee. Lenders are waiting for Rio Tinto and
financial advisor Rothschild to finalize the split.
The project is also heavily backed by USD 1.95 billion in direct loans from Australia, European, U.S.,
and Canadian export credit agencies. Due to the high level of investment, Rio will have the option
to raise more debt at a later stage and re-gear the project.
Source: Reuters
RIO TINTO EXPECTS GOVERNMENT APPROVAL TO SHIP COPPER IN WEEKS
Rio Tinto PLC said it expects to win approval from the Mongolian government in the next two weeks
to transport copper out of its USD 6.2 billion Oyu Tolgoi mine, a key project for the company as it
reins in spending in other areas.
The opening of the mine hinges on resolving issues over transport and shipping with the
government, and discussions were progressing well, Chief Executive Sam Walsh told reporters after
Rio Tinto‘s annual meeting in Sydney.
―We are still looking for some approvals in relation to exactly how we transport and ship the
material… that we expect to receive in the next couple of weeks,‖ Walsh said.
Walsh was speaking at his first annual meeting in Australia since taking over as chief executive from
Tom Albanese, who was dumped in January after the company announced USD 14 billion in
writedowns on its Alcan aluminum and Mozambique coal acquisitions.
Source: Reuters
OYU TOLGOI APPOINTS NEW EXECUTIVE COMMITTEE MEMBERS
Oyu Tolgoi LLC announced the expansion of its Executive Committee with four new members.
Munkh-Ochir Tsogoo was named as general counsel and head of legal and compliance; Munksukh
Sukhbaatar as head of power strategy development; Tserenkhuu Tserevsuren as head of corporate
affairs; and Dulamsuren Begzjav as head of business analysis and planning. Tsogoo will assume his
role as general counsel from 1 June 2013.
―The expansion of our Executive Committee goes hand in hand with the evolution of Oyu Tolgoi
from a development and construction project to an operating business,‖ said Cameron McRae,
president and chief executive. ―The vast experience and expertise of the new members will
strengthen the Executive Committee, and I look forward to their contribution.‖
Source: Oyu Tolgoi LLC
ERDENES TT OFFERS ONE-YEAR CONTRACT FOR WEST TSANKI AREA
Erdenes Tavan Tolgoi LLC, Mongolia's largest state-owned coal company, offered a one-year
contract to develop a part of the nation's biggest coalfield, aiming to revive interest among global
mining companies.

4. The contract will be for mining as much as two million metric tons of coking coal in the West
Tsankhi area of Tavan Tolgoi, Delgersaikhan Tsagaan-Uvgun, head of mining planning and technical
coordination at Erdenes, said. The output will be sold to Chinese buyers, he said. The offer for West
Tsankhi is aimed at raising cash for the company and is not a substitute for a bigger agreement that
could involve some of the world's largest mining companies, Tsagaan-Uvgun said.
―It's a small amount of coal,‖ Tsagaan-Uvgun said. ―It's a temporary measure.‖
Source: Bloomberg
TT TENDER TO HELP SECURE NEW CUSTOMERS
Mongolia's plan to develop the untapped western block of its massive Tavan Tolgoi coal mine will
help raise cash from new customers to offset an exclusive but loss-making supply deal with China's
Aluminum Corp of China Ltd. (Chalco), an official with the mine's developer said.
The mine's state-owned operator, Erdenes Tavan Tolgoi LLC, expects to begin exporting coal from
the West Tsankhi coal field in the third quarter of this year after opening it up to tender last week,
said Delgersaikhan Tsagaan-Uvgun, head of mine planning at the firm.
―The bid is for one year, but we have to complete it quickly, hopefully in six months. We just want
to make some coal available to sell to some other customers besides Chalco, which may give some
extra cash,‖ Tsagaan-Uvgun told Reuters.
Mongolia is under pressure to raise funds to plug a budget gap and stave off a credit downgrade.
Chalco has exclusive rights to purchase coal from the East Tsankhi coal field via a USD 250 million
offtake agreement signed in 2011.
"The government instructed us to increase the number of customers, so we will go and ask some
other customers to buy it," Tsagaan-Uvgun said.
Source: Reuters
ERDENES TT HOLDS USD 257 MILLION IN TOTAL DEBT, SAYS MINING MINISTER
Mining Minister D. Gankhuyag revealed on 1 May that Erdenes Tavan Tolgoi LLC held total debt of
USD 257 million.
Erdenes TT borrowed USD 131 million from Golomt Bank LLC and Trade and Development Bank of
Mongolia LLC in addition to debt of USD 350 million from Aluminum Corp. of China Ltd. (Chalco),
which is to be paid back in coal. The last government took MNT 418 billion from Erdenes TT to stock
its Human Development Fund so it could continue its monthly cash allowance program. The state-
owned mining unit still owes Chalco USD 186 million as well as USD 34 million to Golomt and USD 37
million to other local financial institutions. The government has estimated that it must deliver coal
to Chalco for another four to five months to repay its debt owed.
―Erdenes Tavan Tolgoi has just one buyer, Chalco, due to the agreement established by the USD 350
million to be repaid with coking coal.‖
With a price base of USD 70 per ton, based on China's Local IV index, the selling price changed
quarterly and set the price USD 53.60 in the first quarter of 2013. Current costs are USD 55.9.‖
He added that Mongolia negotiated with Chalco authorities for inland customs near the Tavan Tolgoi
site and a new location for the sales terminals for greater savings.
Source: Info Mongolia
MMC TO GET USD 59 MILLION COMPENSATION FOR RAIL PACT
Mongolia Mining Corp. (MMC) will receive MNT 84.3 billion in compensation as part of a pact with
the government to terminate a rail-concession agreement.
The company and its units will enter talks with the government and may convert some of the
payment into equity in a venture that will build a railway line to the Chinese border, according to a
filing by MMC to the Hong Kong stock exchange yesterday. As part of the agreement, the company
will be granted access to 50 percent of the railway's capacity and state-owned Mongolian Railway
will take over existing construction contracts and obligations, MMC said.
The Mongolian government is seeking a non-state partner to build a 260-kilometer railway to the
Chinese border from the Tavan Tolgoi coal field, and had accepted bids from 20 companies, the

5. state-run news agency Montsame said in March. Tavan Tolgoi, one of the largest coal deposits in
Mongolia, has an estimated 6.4 billion metric tons of reserves, 70 percent of it coking coal for
steelmaking. Mining companies at the site, including Ulaanbaatar-based MMC, currently deliver
supplies to the border by truck.
MMC is negotiating with the government to take as much as a 10 percent stake in a unified railway
development project, according to Chief Executive Officer Battsengel Gotov.
Source: Bloomberg
ASPIRE APPOINTS RAILWAY ENGINEER PARTNER
Northern Railways Pte Ltd., a subsidiary of Aspire Mining Ltd., has appointed Snowy Mountains
Engineering Corp. to provide a range of services to advance the planning and development of the
Erdenet-Ovoot railway.
Snowy Mountains, who has completed the detailed design for the 225-kilometer coal haul railway
for Mongolian Mining Corp., has been contracted to complete a full re-optimization of the Erdenet-
Ovoot rail alignment including site visits, risk and constraint analysis, permitting and government
approvals, including a rail concession, engineering and design to allow for an energy, procurement
and construction tendering, and a bankable feasibility study. The work has been broken up into
phases with discrete decision points and performance milestones before the next phase of work
commences.
―This agreement marks an important milestone in the development of the Erdenet-to-Ovoot
railway,‖ said Managing Director David Paull. ―We have been working with SMEC for six months on
addressing critical rail project risks and it makes sense, with their in-country expertise and
experience, for [Snowy Mountains) to become our rail engineering partner for what will be a large
and important project for Mongolia.‖
The value of the work by Snowy Mountains is approximately USD 9.9 million in total to be extended
in two stages over 12 months. The cost will be funded from the USD 5 million Noble Group loan
facility and cash resources.
Source: Aspire Mining Ltd.
HARANGA RESOURCES UPS RESOURCE AT SELENGE PROJECT
Haranga Resources Ltd. has significantly increased the value of its Selenge iron ore project in
Mongolia, upgrading its JORC resource by 675 percent to 254 million tons at 17.2 percent iron.
Notably, 99.8 percent of this is in the measured and indicated categories while initial David Tube
Recovery results indicate that a high quality 66 percent iron concentrate is attainable from the
project. The upgrade is based on the drilling carried out by the company in 2011 and 2012, which
defined the resource at the Bayantsogt, Dund Bulag and Undur Ukhaa deposits.
Drilling also discovered additional iron mineralization at the nearby Huiten Gol prospect. An
additional exploration target of 50 million tons to 100 million tons exists on these four targets.
Source: Proactive Investors
UNITED TRACTORS KEEN ON MONGOLIAN COAL
United Tractors & Equipment Ltd., the heavy equipment unit of Astra International of Indonesia, is
looking to tap opportunities in the coal industry in Mongolia, the company's president director said.
Djoko Pranoto, United Tractors' president director, said Mongolia's huge coal reserves and proximity
to major coal-consuming countries have driven the company to explore opportunities in the nation.
―In terms of quantity, coal resources and reserves in Mongolia are very attractive,‖ he said over the
weekend.
Djoko added that the coal industries in Indonesia and Mongolia had similar characteristics as mines
in both countries were generally open-pit and produced steelmaking coking coal. Export markets
will be widely available should United Tractors decide to invest in the Mongolian coal industry,
Djoko said.
―The distance between Mongolia and two [major] coal-consuming nations, China and Russia, is
small,‖ he said.

6. However, Djoko said United Tractors is focusing current efforts on expanding its business in
Indonesia. United Tractors currently owns nine coal mining concessions across the country with
combined estimated reserves of around 424 million metric tons.
Source: Jakarta Globe
HITACHI, SMBC INK MONGOLIA ACCORD
Hitachi Ltd. and Sumitomo Mitsui Banking Corp. (SMBC) announced on Tuesday that they had
reached a comprehensive accord with the Mongolian Ministry of Energy on power-related projects.
Under the agreement Hitachi will consider assisting the construction of power transmission lines and
generation facilities in Mongolia. SMBC, the core bank of Sumitomo Mitsui Financial Group Inc., will
meanwhile examine possible financing schemes for possible projects through consultations with
Hitachi and the ministry.
Source: Japan Times
GOVERNMENT REMAINS SILENT ON CENTERRA‟S GATSUURT PROJECT
Centerra Gold Inc.‘s Boroo gold mine approaches closure.
Centerra has had to hold off on beginning operations at its Gatsuurt project after legislation
prohibiting exploration at particular areas of forestry and headwaters resulted in the suspension of
activity there. The original plan was to mine ore at Gatsuurt with transport to Boroo for processing,
but Centerra is still waiting on a final decision from government regarding the mine.
Centerra purchased a license from Koje Govi, a subsidiary of Areva, for the Altan Tsagaan Ovoo
(ATO) deposit, which was first discovered in May 2010 with the agreement to pay 1.75 percent of
net profits gained from this deposit to Areva.
In addition to the ATO deposit are four licenses for nearby land covering 77,000 hectares, where the
environmental legislation does not currently take effect.
Source: Zindaa.mn
SKYTEL EXPANDS MOBILE ACCESS AND PLANS 4G ROLL-OUT
Holding a quarter of Mongolia's telecom market and the largest CDMA 3G network in the country,
Skytel Group is one of the industry's leaders and going to great lengths to get Mongolians connected.
According to Chief Executive D. Bolor, the Skytel is focusing on rolling out 4G technology as part of
its strategy to lead mobile communications in Mongolia.
―Along with our emphasis on the latest technology, we are also placing greater attention on
customer service, opening new customer service branches, revamping our customer service
training, and communicating our marketing messages that are simple and acceptable by the
market,‖ Bolor said.
The chief executive said that given its low-penetration rate over Mongolia's vast rural areas (just 20
percent, he said), Skytel plans to roll out a CDMA 3G technology network in all of Mongolia's
provincial capitals. It also hopes to begin launching 4G technology beginning from 2014.
Source: Worldfolio
NEARLY HALF OF ALL CHICKENS DIE AT MAJOR POULTRY, EGG PRODUCER'S FARM
Thousands of chickens died at the Tumen Shuvuut chicken farm on 5 May, reported the General
Agency for Specialized Inspection.
According to the company director, J. Bold, a fan at the chicken facility had failed that night,
which caused the death of 18,000 chickens. That was nearly half of the 37,000 chickens at the
facility and has cost the company MNT 400 million, he said.
A final analysis has shown that the disease was not a factor in the cause of death. The company
plans to resume the sale of its poultry meats and eggs soon.
Tumen Shuvuut has a 30 percent market share in egg production in Mongolia.
Source: Unuudur

7. ALASKA PROFESSORS TO HELP CREATE AUM'S ENGINEERING SCHOOL
A team of professors from the University of Alaska Fairbanks (UAF) will spend the next several years
working with the newly formed American University of Mongolia (AUM) to create an engineering
school.
UAF recently signed a contract with AUM, which is under development in Ulaanbaatar. Under the
terms of the contract, a team of seven engineering professors, led by mining and geological
engineering chairman Rajive Ganguli, will create a comprehensive design for the school. Their work
will include creating curricula, identifying faculty and staff needs, exploring accreditation
requirements and designing space for classrooms and laboratories. Their work will also include
planning for a cold weather engineering research and training center.
―Though a research-intensive university, the teaching mission is taken seriously at UAF. This is
reflected in the fact that we place our graduates not only with Alaska employers, but also with
large, international companies such as BP, Freeport, McMoRan and BHP Billiton,‖ Ganguli said.
―With AUM emphasizing good quality education above everything else, I was very happy to
participate. Just like Alaska kids, Mongolians will have access to great engineering education in
their own backyard.‖
The new engineering program at AUM will be designed to be able to receive accreditation from the
Accreditation Board for Engineering and Technology. Through its four commissions ABET accredits
3,100 engineering, science and technology programs in 600 colleges worldwide.
Source: UAF Corner
TULGA DELISTED BY FRC FROM MSE
The Financial Regulatory Commission announced the delisting of Tulga JSC from the Mongolian
Stock Exchange (MSE). Tulga delisted a total of 131,620 shares from the MSE list, reorganizing itself
into a limited liability company (LLC).
Source: Mongolian Stock Exchange
BERKH UUL MAKES APPOINTMENTS AS IT RELAUNCHES DELGERKHAAN MINE
Berkh Uul JSC announced the appointments of Jimmie Wilde as chief operating officer and Jim
Flores as chief financial officer as the company aims to enhance the executive team and advances
the restart of operations at the former producing Delgerkhaan fluorspar mine.
―We are excited to quickly advance planning of the rehabilitation of our Mongolian fluorspar mine,‖
said Mendsaikhan Bold, chief executive officer. ―The appointments of Mr. Wilde to oversee the
rehabilitation program and Mr. Flores to oversee the company's accounts will greatly increase the
strength and depth of our management team.‖
Wilde has over 35 years experience in open-cut and underground mining around the world. He
began his career with Rio Tinto PLC in Zimbabwe before moving to deep level underground mines in
South Africa. He has participated in mining projects in Africa, the Middle East, and Russia. In 2012
Wilde was appointed as a board member of Berkh Uul.
Flores has over 30 years' experience in financial services including 18 years in the energy industry.
Immediately prior to joining Berkh Uul he was chief financial officer of Colombia Energy Resources
Inc.
The Delgerkhaan deposit has a stated resource of 9.6 million tons of fluorspar having an average
grade of 33.7 percent.
Source: BDSec JSC
GUILDFORD APPOINTS NON-EXECUTIVE DIRECTOR
Guildford Coal Ltd. announced the resignation of Craig Ransley as non-executive director with Kon
Tsiakis to replace him.
With Guildford making the transition from explorer to producer and seller with a new team in place
for management, it was Ransley's belief his energies were better directed at other opportunities,
said the Source.
―Without Craig's vision, leadership, entrepreneurial skills and perseverance Guildford would not be

8. on the verge of imminent coal production in Mongolia...‖ said Guildford Chairman Peter Lindsay.
Tsiakis, a commercial litigation partner with HWL Ebsworth, has wide experience advising directors
and companies on regulatory compliance and statutory corporate obligations as a commercial
litigator. He also spent a number of years as a senior enforcement analyst with the Australian
Securities and Investments Commission.
Source: Guildford Coal Ltd.
GE ADDS ENERGY STORAGE TO ITS BRILLIANT WIND ENERGY TURBINE
After premiering its 2.5-megawatt, 120-meter rotor Brilliant wind turbine in February, General
Electric Co. is now announcing the commercial installation of the first three models that will
integrate energy storage capability. General Electric is the supplier of wind turbines to Newcom
LLC's Salkhit wind farm.
General Electric's engineering advances have long been moving toward two broad objectives:
achieving a more rapid and comprehensive automated response by the turbine's multiple on-board
computer systems to the enormous amounts of data the machine's network of sensors can deliver,
and allowing its centralized operations centers to wirelessly control variables that the turbine's
automated response fails to manage. The variables range from a change in wind or local grid
conditions to a lightning strike. The new height, rotor length and data analytics makes the Brilliant
turbine 25 percent more efficient than its previous 2.5-megawatt machine, according to General
Electric.
General Electric also announced that Brilliant turbines will be installed by Invenergy at a Texas
wind project by the end of 2013. Each will integrate 50 kilowatt hours of battery storage, allowing
the individual turbines to add a set of three possible functions. The batteries, situated on a nearby
ground pad, are integrated by the turbine's intelligent operating system.
The Invenergy turbines' storage will be used for three applications. The first, labeled ―predictable
power‖ is short-term storage to ―sure‖ the delivery of committed output, explained General
Electric Wind Product Line General Manager Keith Longtin. Stored electricity can also be sold to
grid operators to regulate frequency variations that can disrupt service. Selling into frequency
regulation markets adds a revenue stream for a wind developer, Longtin said. Third, storage allows
―ramp control.‖ Electricity generated when the blowing wind allows production but the grid is not
buying can be sold when it is needed, Longtin said, increasing developers' returns on investment.
Source: The Energy Collective
ECONOMY
TUGRUG TUMBLES AS CONFIDENCE IN MONGOLIAN ECONOMY WAVERS
The Mongolian tugrug has flagged against the U.S. dollar due to increasing demand for the latter
currency.
On 2 May the central bank posted an exchange rate of 1,433.84, compared with MNT 1,426 from a
week prior, while the Naiman Sharga exchange market traded at MNT 1,438. The tugrug is expected
to depreciate further, while some economists warn that inflation is expected to rise once again,
too. This would be likely due to increased construction activity with the warmer months and a lack
of confidence in the tugrug.
The Bank of Mongolia has hosted its currency swap auction, at the request of commercial banks, in
a bid to strengthen the Mongolian currency. A request for a yuan currency swap was denied,
however, by the central bank.
Source: Udriin Sonin
MEAT PRICES REMAIN HIGH DESPITE FALL IN INFLATION
Meat prices have remained stable yet high, ranging between MNT 9,500 to MNT 10,000 a kilogram
for beef.
Horse meat prices are the lowest among meats at MNT 5,500, with goat meat just a little higher at

9. MNT 6,000 a kilogram. Mutton prices ranged from MNT 11,000 to 12,000.
Source: Undesnii Shuudan
74 FOREST FIRES REPORTED IN 2013
Mongolia has seen 74 forest fires reported in 47 towns in 15 provinces in the first five months of
2013. Almost 80 percent of high-risk provinces to fire are too dry or at dangerous levels of dryness.
The National Emergency Management Agency (NEMA) is giving warnings to prevent possible forest
fires during this particularly dry period of the year. The warnings included avoiding ash leakages
and making open fires, leaving small children with caretakers or prohibiting them to play with fire
and avoiding any picnics or tours in the forest.
Over 100 people including NEMA staff and local residents in Khutag-Undur Soum in Bulgan Aimag
were struggling to extinguish a fire. The battle had been going on for days at the time of this
report. Over 60 NEMA staff and 167 local residents cut off a forest fire at Bat-Uul of Bulgan Soum,
Dornod Aimag. There were also fires in Tenkhleg of Dadal Soum, Khentii Aimag, Kharzad of
Dashbalbar Soum, Dornod Aimag, and Bayandelger Soum, Tuv Aimag. Fire spread from a garbage
dump in Kherlen Soum, Dornod Aimag, and a fire from Russia blew over to Dashbalbar Soum, Dornod
Aimag. Residents and emergency officials helped extinguish fires reported in Khalzan Soum,
Sukhbaatar Aimag as well as Maldvai, Doctor and Zeregeen of Chuluunkhoroot Soum, Dornod Aimag.
Source: News.mn
MONGOLIA SEEKS TO REBUILD AGRICULTURE TO COMBAT MALNUTRITION TRENDS
Most Mongolians dismiss fruits, vegetables and cultivation as ―unmanly,‖ according to Marissa
Markowitz, a food security consultant with the Ministry of Industry and Agriculture (MIA), creating a
malnutrition epidemic in the country.
Less than 1 percent of the country's land is used for production. Mongolians rely on livestock for
their food needs, guiding massive herds across the vast grasslands of the Central Asian Steppes.
One-third of households in Ulaanbaatar were found to be food insecure in 2009, according to Mercy
Corps. The standard diet here is comprised of wheat, meat and rice, said Markowitz, citing reports
by the United Nations Food and Agriculture Organization (FAO). Research released by the Ministry of
Health in 2008 and 2010 revealed that a full third of the country's population of nearly three million
eat no fruits or vegetables at all.
Vegetables and fruits are expensive compared to the monthly minimum wage of about USD 100
dollars. Spring is a particularly difficult period, when national food stores are depleted and prices
skyrocket—during this time, local sea buckthorn berries sell for about USD 3 to 4 dollars a kilogram;
carrots for roughly USD 2 a kilogram and tomatoes for nearly USD 4 a kilogram.
In light of these alarming trends, the country has recently embarked on the slow process of
rebuilding its agriculture sector. The Mongolian Women Farmers Association (MWFA) is a volunteer-
led non-government organization (NGO) that works in all 21 of Mongolia's provinces to promote
vegetable and fruit cultivation among poor families. MWFA has worked with 4,500 families on
establishing vegetable gardens as well as cooking and preserving vegetables by canning.
Source: Inter Press Service
COMMODITIES HEDGE FUND INDUSTRY IS BLEEDING MONEY
The average fund lost 0.8 percent in the first quarter of the year, according to a closely watched
index compiled by brokerage Newedge. The losses came after commodities hedge funds lost 3.7
percent in 2012, the biggest decline in more than a decade, according to the Newedge Commodity
Trading Index. The average commodities hedge fund already lost 1.4 percent in 2011, a significant
change from the typical gains of 20 to 40 percent per year from 2000 to 2008.
―We are witnessing the implosion of a large chunk of the commodities hedge fund industry,‖ said
the chief executive of one of the world's largest commodities trading house, echoing a widely held
view across the natural resources sector. ―The sector is, on average, performing badly and investors
are taking note,‖ the executive said.
Commodities hedge funds surrendered at least 20 percent of their assets last year after investors

10. pulled out large sums following the sector's worst annual performance in more than a decade,
according to fund managers and investors.
The withdrawals of roughly USD 5 billion last year are the largest since the commodities hedge fund
sector became fashionable in the early 2000s. The trend of falling assets under management is
worsening this year as some investors used the end of the previous year to withdraw assets and
others plan to do so after losses in the sector continued in the first quarter.
Source: Financial Times
CHINA COKING COAL PRICE DROPS
Weakening prices ended a three-day flat streak as the price of Chinese coking coal fell 4.7 percent
on Tuesday, 7 May. After two changeless days, the price of Chinese slab fell 0.3 percent. Chinese
HRC stayed flat. The price of iron ore 58 percent fines from India drifted a tiny bit lower, but still
held above the USD 136-per-dry-metric ton mark. The cash price of steel billet studied at USD 130
per metric ton following two-days of increased on the London Metals Exchange (LME).
On the LME, the steel billet three-month price held steady around USD 150 per metric ton. The U.S.
HRC futures contract three-month price was unchanged at USD 607 per short ton. The U.S. HRC
futures contract spot price saw little change in its process on 7 May at USD 595 per ton.
Source: AG Metal Miner
CHINA‟S ECONOMY UNEXPECTEDLY STUMBLES AGAIN ON WEAK EXPORT DATA
After a powerful recovery through the autumn and winter from a V-shaped downturn last summer,
China‘s economy—which is a direct driver for Mongolia‘s own—is unexpectedly faltering once again.
Exports are weak. The country‘s domestic economy is still growing mostly because of huge increases
in lending by state-controlled banks and a surge in off-balance sheet lending. Consumer spending is
rising, but not fast enough to offset weakness in other sectors. That combination has promoted
growing concerns among economists and business executives about the sustainability of even 7.5
percent growth in China in the coming years, the government‘s current goal after three decades of
double-digit growth with only a few interruptions.
Over the last few years, economists have tended to pay less attention to China‘s exports because
they were declining as a share of the country‘s total economic output, because of weak overseas
demand. But newer research suggests that China may still be dependent on exports. Louis Kuijis, an
economist in the Hong Kong office of the Royal Bank of Scotland, estimated that 20.7 percent of
China‘s economic output came from exports last year, a figure that had bottomed out in 2009 at
19.7 percent. Foreign investment in China has also begun to level off, while surging in lower-wage
countries in the region, such as Cambodia and Vietnam.
What has kept the economy running is the huge volume of cash pumped into it. Total social
financing—a measure of all non-government borrowing from banks, bond markets, trusts and other
sources—surged 58 percent in the first quarter of this year from the same period last year.
Borrowing is increasingly a concern. It has already climbed roughly 200 percent now from 120
percent in 2007. China‘s current economic model, with its swift buildup of debt to stave off a
steeper decline in economic growth rates ―can probably go on for a while, certainly through this
year and into 2014, but the potential stress in this is clearly going to rise,‖ said George Magnus, a
senior economic adviser to UBS.
Source: New York Times
KAZAKHSTAN LEADS CENTRAL ASIA IN TRADE TO CHINA
Kazakhstan is China's main commercial partner in the Central Asian region, China's Minister of
Commerce Gao Hucheng said 7 May.
At a meeting with Kazakhstan's minister of economy and budget planning, Erbolat Dossayev in
Beijing, Gao said that commercial and economic relations between the two countries were making
―headway in all spheres.‖
China and Kazakhstan agreed to increase trade ties during Kazakh President Nursultan Nazarbayev's
visit to Beijing in April, and the issue is due to be discussed during Chinese President Xi Jinping's

11. upcoming visit to Kazakhstan, Kazinform reports.
The two countries expect to increase mutual trade from USD 24 billion in 2012 to USD 40 billion by
2015.
Source: BNE
REGIONAL ECONOMIC OUTLOOK FOR ASIA AND PACIFIC, APRIL 2013
The global economy shows signs of improving as major tail risks emanating from advanced
economies have receded. Asia also faces better prospects. After a year of subdued economic
performance, growth in Asia is set to pick up gradually in the course of 2013, to about 5.75 percent,
on strengthening external demand and continued robust domestic demand.
Consumption and private investment are expected to be supported by favorable labor market
conditions—unemployment is at multi-year lows in several economies—and relatively easy financial
conditions. The latter reflects a combination of accommodation monetary policies; rapid credit
growth, particularly in China and some ASEAN economies; and the rebound of capital inflows since
the summer of 2012. Asia is also expected to benefit from intraregional demand spillovers; they
mainly reflect growing Chinese demand and the near-term fiscal stimulus in Japan but also
integration incurred by the ASEAN network.
In emerging Asia, macro-prudential measures will have to play an important role where credit
growth remains too rapid and could pose problems for financial stability, especially if accompanies
by persistently strong capital inflows. In general, Asia has buffers to cope with such risks, as
banking and corporate sector balance sheets remain generally sound, but these imbalances require
careful monitoring and adequate supervision.
In many Asian economies, structural deficits that are higher than pre-crisis levels imply the need for
greater efforts to rebuild fiscal space, especially as projected improvements in structural fiscal
balances remain small on currently policy. There is growing need to make revenue and expenditure
policies more growth-friendly, make growth more resilient through automatic stabilizers, and
ensure that Asia's growing prosperity is shared across all income groups.
Furthermore, emerging Asia is potentially susceptible to the ―middle-income trap,‖ a phenomenon
whereby economies risk stagnation at middle-income levels and fail to graduate into the ranks of
advanced economies. To sustain high rates of per capita income growth across the region, the
policy agenda will have to vary by jurisdiction across a range of priorities, including economic re-
balancing, strengthening infrastructure investment, reforms in goods and labor markets, and
meeting the challenges from rapid demographic change.
Source: International Monetary Foundation
POLITICS
ELBEGDORJ LEADS IN RE-ELECTION BID, POLL SHOWS
President Tsakhia Elbegdorj leads his nearest rival by 13 percentage points heading into June 26
elections, according to a new poll from the Sant Maral Foundation, making it unlikely that he will
face a serious challenge as he seeks a second terms.
Asked whom they would choose as president, 19.2 percent of respondents named Elbegdorj, the
Sant Maral Foundation poll said. In second with 6.2 percent was Nambar Enkhbayar, the head of the
Mongolian People's Party, who serves a two-and-a-half-year jail term on corruption charges. No one
else received more than 3.2 percent.
A win for Elbegdorj, president since 2009, may ensure continuity as Mongolian leaders debate the
role of foreign investors in exploiting the country's mineral resources. While Elbegdorj has made
conflicting statements on whether the government should take greater control of strategic mines,
he is seen as a known quantity, consultant Dale Choi said.
―Elbegdorj has shown himself to be a very inconsistent,‖ Choi, founder of Ulaanbaatar-based
Independent Mongolian Metals and Mining Research, said in an email. ―Even in view of these
shortcomings, it would be good if he were re-elected because it would mean the government

12. authorities can continue functioning as they are.‖
The Sant Maral poll, which did not give a margin for error, said 53.2 percent of respondents were
fairly satisfied or very satisfied with the current government.
―Elbegdorj has no rival and it will be quite problematic for anyone to stand against him in the time
remaining,‖ Sant Maral Foundation Director Luvsandendev Sumati said. ―If he does not make some
major mistake, he should get through.‖
For the complete Sant Maral April 2013 Politbarometer, see BCM website Mongolia Reports section.
Source: Bloomberg
DP BACKS ELBEGDORJ'S RE-ELECTION CANDIDACY
President Tsakhia Elbegdorj received 100 percent confirmation from his Democratic Party for the
president's candidacy to run for re-election in the 2013 presidential election. The president
received confirmation at a party meeting on Tuesday.
Source: Montsame
MPP NAMES WRESTLING CHAMPION AS PRESIDENTIAL CANDIDATE
The Mongolian People's Party (MPP) has nominated a former champion wrestler as its standard-
bearer for the June presidential election.
Party members voted at a weekend conference to name Bat-Erdene Badmaanyambuu as presidential
candidate to challenge incumbent president Tsahkia Elbegdorj from the ruling Democratic Party in
the 26 June vote.
As a lawmaker, Badmaanyambuu was instrumental in the passing of a controversial law to ban
mining along river and water basins in 2009 and demanded revision of the multi-billion U.S. dollar
investment with Anglo-Australian mining giant Rio Tinto PLC.
Source: Xinhuanet
MNDP POISED TO NOMINATE ENKHSAIKHAN AS PRESIDENTIAL CANDIDATE
The Mongolian National Democratic Party (MNDP), the partner to the Mongolian People's
Revolutionary Party (MPRP) to form the Justice Coalition, is poised to nominate M. Enkhsaikhan as
its candidate for the presidential election.
The Administrative board of the MNDP consists of 11 members who agreed to discuss the issue at an
assembly meeting on Friday, 10 May, said MP D. Battsogt.
Source: News.mn
CW-GP MEMBERS ABANDON SHIP
All 40 of the Civil Will-Green Party's members have left the party, saying that there was no internal
democracy in the party.
Party Deputy Chairman Kh. Bat-Yalalt led the mass exit, saying that the party's decisions were
dictated by a single person's will and that there was a lack of transparency regarding the party's
inner workings. Members of the CW-GP, which has two of its members sitting in Parliament, said
fraudulent methods were being utilized within the party.
Bat-Yalalt said the party members would start a new movement called Neg Mongol, which translates
to one Mongolia in English, to represent their interests.
Source: Unuudur
MONGOLIANS LIVING ABROAD TO VOTE 14-16 JUNE
Mongolian citizens living in foreign countries will be able to vote for the 2013 election from 14 to 16
June, announced the Working Group on Elections.
An election committee made up of 39 Mongolian diplomatic representatives has been formed to
register citizens living in foreign countries in person or by fax, email or phone.
The state registration committee has submitted a list of 39,800 Mongolian citizens living abroad to
the election committee.
Source: Udriin Sonin

13. SMES TO RECEIVE TAX BREAKS FOR COMPUTER PARTS
The Cabinet of Ministers approved a motion on 3 May to provide exemptions for small business from
customs taxes for computer hardware parts and equipment. In 1999 Parliament voted in favor in
providing tax exemptions for computers, but did not for parts.
Source: Zuunii Medee
MONGOLIA TAKES STEP TOWARDS U.S. FTA WITH TRANSPARENCY INITIATIVE
A majority in Parliament supported a transparency initiative for trade between the United States
and Mongolia.
Mongolia proposed to the United States a free trade agreement during the third conference for the
American Trade and Investments Council held in Ulaanbaatar in March 2007. The United States,
however, said Mongolia needed major reform in terms of trade orders, legal structure, and the
labor environment. However, this initiative would be a check mark next to one of the points the
United States said would be necessary to move forward with this aim.
Source: Udriin Sonin
MONGOLIA TO LEASE LAND IN TIANJIN FREE-TRADE ZONE
The Cabinet of Ministers has ordered the 50-year lease of 10 hectares of land in the Tianjin free-
trade zone.
During a regular meeting on 27 April, the Cabinet approved the motion to lease the land through
Mongolian Railway JSC as part of its logistics project. Financial matters concerning the lease will be
managed by the Bank of Mongolia and Ministry of Roads and Transportation.
The Cabinet also ordered the minister of road and transportation to negotiate with Chinese
authorities for increased capacity for freight transport via road and rail between the Mongolian
border port and the Tianjin port. Tianjin is Mongolia's nearest sea outlet and is where over 70
percent of Mongolia's import-export goods are transferred.
Source: Info Mongolia
MONGOLIA SIGNS PARTNERSHIP AGREEMENT WITH EU
European Commission Vice President Catherine Ashton signed the Agreement of Partnership and
Cooperation for boosted bilateral cooperation between Mongolia and Europe.
Ashton met with Foreign Minister Luvsanvandan Bold to discuss cooperation and the values of
democracy on 30 April during the Community of Democracies' seventh ministerial meeting. Also
signed was the Efforts for Cultivation of Mongolia Standardization memorandum.
Source: News.mn
IRISH MINISTER VISITS MONGOLIA TO DISCUSS BUSINESS OPPORTUNITIES
Ireland's trade and development minister, Joe Costello, became the first Irish minister to visit
Mongolia during his attendance at the seventh ministerial conference of the Community of
Democracies in Ulaanbaatar as part of an Asian tour.
―There is a great sense of excitement about development and how to maximize newfound wealth
from mineral extraction. It's a country very much in transition,‖ said Costello, who used the
opportunity to discuss business opportunities for Ireland with Mongolia's foreign minister,
Luvsanvandan Bold.
―We discussed various commercial opportunities between the two countries, in areas including
pharmaceuticals and education. We looked at how we might develop relations in term of the state
sector and the private sector. They are in need of expertise and they see us as a friendly country.‖
Source: Irish Times
CHINA-MONGOLIA FRIENDSHIP SCHOOL BECOMES BRIDGE: EDUCATOR
The China-Mongolia Friendship School has become a social bridge between China and Mongolia, a
Chinese educator said on Friday.

14. The school has trained students for 50 years and has laid a solid foundation for their lives, said
Principal Jiang Ximanmei. Jiang, speaking at the graduation ceremony for 11th-grade students, also
said that the students were an honor to the school and their presence in the classroom would be
remembered forever.
Wang Xiaolong, the Chinese ambassador to Mongolia, said at the ceremony that he hoped the new
graduates would continue to strive to learn, increase their abilities, become talents of the national
and social development, become friendly messengers of China and Mongolia, and make a positive
contribution to the friendship between the two countries.
Source: Xinuanet
NUM TO ESTABLISH INDONESIA STUDY CENTER
The National University of Mongolia (NUM) plans to set up a study center to introduce Indonesia to
the Mongolian public, said the university's vice president, Gerelt Od Lkhagvasuren.
He gave the news to Indonesian Ambassador to China and Mongolia Imron Cotan in Ulaanbaatar on
the sidelines of the seventh conference of the Community of Democracies on 30 April. The
university has prepared the building, lecturers and other facilities for the study center, the
Indonesian Embassy in Beijing said in a press statement on Friday.
Lkhagvasuren has asked for the ambassador's support for the establishment of the study center.
Ambassador Cotan said he was prepared to facilitate student-lecturer exchange programs between
Indonesia and Mongolia as well as offering the latest reference books to the university. The
Indonesian Embassy and NUM plan to organize seminars on the bilateral relationship between
Indonesia and Mongolia in June and September of this year. In return, NUM students will be offered
scholarships to study in Indonesia under the Developing Countries' Technical Cooperation program.
Source: Jarkata Post
WORLD PRESS FREEDOM DAY IN MONGOLIA
Globe International Centre, a Mongolian free expression NGO, and the Mongolian Journalists
Association with support from the Open Society Forum (OSF), Mongolia, marked World Press
Freedom Day 2013 on 1 May 2013 at the OSF Conference Hall. More than 75 politicians, officials,
international organizations, NGOs, journalists and media practitioners gathered at the event.
G. Jargalsaikhan, secretary general of the Mongolian National Commission for UNESCO, stressed in
his speech that Mongolia is in 98th place in the free press index of Reporters without Borders. He
introduced UNESCO's 2013 WPFD concept note ―Safe to Speak: Securing Freedom of Expression in All
Media‖ which focused on three sub-themes: Ensuring the Safety of Journalists and Media Workers,
Combating Impunity of Crimes against Press Freedom, and Online Safety.
Naranjargal Khashshkuu, president of Globe International, made a presentation on the present
media freedom situation and she highlighted, ―We are marking this year's WPFD with a number of
threats against media freedom.‖
Thirty-seven websites were closed and the licenses of 44 cable television stations terminated after
an inspection by the Communications Regulatory Commission (CRC). The government decided to
establish a United System of Comments on Websites on 5 January 2013 at its Cabinet meeting. This
decision obliges website owners ―to introduce software to stop comments containing slander or
threats, so the main websites operate under the Unified System of prohibited words introduced by
the CRD...‖
Global International registered in total 45 cases of free-expression violations, including assaults,
intimidation, threatening, detention and criminal defamation. The most sensational criminal
defamation case ended with an MNT 8.5 million fine imposed against female journalist D. Bolormaa
from the daily newspaper Zuunii Medee who wrote an article about human trafficking. The judicial
process was carried out very quickly after the plaintiff B. Narankhuu, a rich businessman who
became an MP, made the complaint.
Participants endorsed the Call to Parliament and Government of Mongolia to dissolve the decision,
to ensure the independence of the CRC, enact legislation for the protection of confidential sources
and to recognize the community media at policy, legal and regulatory levels.

15. Source: IFEX
OFFICIALS CONSIDER ENKHBAYAR'S PLEA
Former president Enkhbayar may yet attain release from prison due to his worsening health
conditions.
The Agency for the Enforcement of Court Orders reviewed a request from Enkhbayar for permission
to leave prison to seek medical help abroad.
Source: Zuunii Medee
DINOSAUR SKELETON TO BE RETURNED TO MONGOLIA
After a little detour through the American criminal justice system, Mongolia's celebrity dinosaur,
Tyrannosaurus bataar, is heading home, the most recent stage in a journey spanning some 70
million years.
At a ceremony last week on Monday near the United Nations, U.S. Homeland Security officials were
scheduled to turn over to Mongolian representatives the unusually complete skeleton of the giant
raptor, eight-feet high and 24-feet long. It was seized last year from a confessed looter and
commercial paleontologist, Eric Prokopi, who smuggled in the bones and sold the reassembled
creature at auction for just over USD 1 million. The sale was later canceled.
―In this business I hesitate to identify any particular return as the most unusual,‖ said John Morton,
director of U.S. Immigration and Customs Enforcement. Morton recalled in an interview that there
had been saber-toothed tiger fossils, Hitler's bookmark and Saddam Hussein's AK-47. ―But this is
clearly one of the most exceptional, if not the most exceptional, we've ever returned.‖
Prokopi, whose age was given as 38, is free on bail recently reduced to USD 100,000 from USD
250,000 and is awaiting sentencing, now rescheduled for 30 August. He faces up to 17 years in
prison and hundreds of thousands of dollars in fines. As part of his guilty plea on 27 December, he
agreed to forfeit the Tyrannosaurus skeleton; a second, slightly smaller T. bataar; and two
Saurolophus and two Oviraptor skeletons, among others he acknowledged illegally importing.
Morton said agents were pursuing other aspects of the smuggling.
―Think about it,‖ Morton said. ―Here's something that's been in the ground for 70 million years. This
was the last of the great living dinosaurs right before extinction, roaming the plains of what is now
Mongolia at the very end of the period of the dinosaurs. And here you have looters and black
marketeers exercising the level of arrogance that is unbelievable, that they're going to engage in
personal profit on something that has literally witnessed this span of time. It is shocking.‖
Source: New York Times
MONGOLIAN CONTORTIONIST BREAKS GUINNESS WORLD RECORD
Mongolian dancer Tsatsral Erdenebileg set a new Guinness World Record for ―longest time to hold
the Marinelli bend position.‖
Erdenbileg achieved the record in the theater of the Circus Maximus in Budapest, Hungary on 9
April. She attained the new record by holding the position for two minutes and 34 seconds.
The record was previously held by another Mongolian woman, Oyungerel Luvsandorj, who set the
Guinness record for 33 seconds, breaking the prior record by 11 seconds, in Great Britain in 2008.
Oyungerel then broke her own record, setting it at 50 seconds, in Italy.
Erdenbileg is an accomplished gymnastics competitor who took third place in a competition among
young circus artists in Paris, France in 2006.
Source: News.mn
SETTING THE STAGE FOR A PRESIDENTIAL ELECTION
The stage for this year's presidential election is set by a public battle between the government and
the private investors of the Oyu Tolgoi copper-gold project and widespread notions of prejudice
towards foreign investors. Now with a few candidates named, speculations can be made how the
election will ensue.
President Elbegdorj will likely be nominated for a re-election campaign by his Democratic Party

16. (DP), which currently also holds the posts of prime minister, chairman of parliament, and mayor of
Ulaanbaatar. [Elbegdorj has since the writing of this article been nominated -ed]. The opposition
Mongolian People's Party has selected B. Bat-Erdene as its nominee. Bat-Erdene has been a three-
term member of Parliament and continues to be personally famous for his status as one of the most
dominant Mongolian wrestlers.
While Bat-Erdene has not been a very active legislator, his most prominent initiative was the 2009
―Law with the Long Name,‖ which prohibited mineral exploration in certain waterways and
forestry. The law was intended to restrict mining licenses in areas of ecological fragility, but has
been controversial for the implied expropriation of previously granted licenses and the risk of an
uneven application of restrictions.
Bat-Erdene will likely use his role in the passage of this law to bolster his appeal to Mongolian
values and personal integrity as a potential president. While Elbegdorj has been an active politician
for much longer than Bat-Erdene, there are few specific policies that are directly associated with
him. He is thus likely to emphasize his personal charisma and lay claim to the DP's clean
government credentials that have been tarnished recently by the publication of information about
offshore accounts held by Sangajav Bayartsogt, who recently resigned as deputy speaker of
Parliament. Bat-Erdene and Elbegdorj thus look set to square off largely over personality rather
than specific policy proposals.
The Justice Coalition, the junior partner in the current government, may nominate M. Enkhsaikhan
who preceded Elbegdorj as prime minister in the mid-1990s. It is not clear what leverage the
Justice Coalition might expect from his candidacy and the threat of a nomination might also be a
bargaining chip in negotiations with the DP, but Enkhsaikhan would be likely to try to appeal to
voters who continue to be somewhat loyal to former president N. Enkhbayar who is serving a
corruption sentence in jail. Part of the appeal may be accusations against Elbegdorj and the DP
that they are not claiming enough benefits for Mongolians under the Oyu Tolgoi investment
agreement.
The Mongolian People's Revolutionary Party, the other half in the Justice Coalition, may not
nominate a candidate and throw their support behind the MPP's Bat-Erdene, though a decision has
not been announced.
The final announcement of candidates by the General Election Commission will come on 23 May. At
this early point, it is unclear whether an Enkhsaikhan candidacy is likely to have a disproportionate
impact on potential Elbegdorj or Bat-Erdene voters and thus lead to a more contested election than
is expected now. The election could turn into a three-way race. If no candidate wins more than 50
percent of the votes, a run-off election between the two candidates who received the most votes
will be held two weeks after the initial election.
Author Julian Dierkes is an associate professor and the coordinator of the program on Inner Asia at
the University of British Columbia's Institute of Asian Research. He is one of the principal authors
of the Mongolia Today blog.
Source: Mining.com
NEW MONGOLIAN LAW
The following amendment to a law was published in the latest weekly Government bulletin. Unless
otherwise decided by Parliament, it will take effect ten (10) days after publication.
Date Amendment to Law
06.05.2013 Amendment to Law on Regulation of Foreign Investment in Entities Operating in
Sector of Strategic Importance (SEFIL)
Please visit BCM's website, Legislative Working Group, for a summary of new 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.

17. ANNOUNCEMENTS
MONGOLIA RENEWABLE ENERGY FUTURES & GREEN DEVELOPMENT, JUNE 4, UB
Mongolia Renewable Energy Futures & Green Development will be held on 4 June in Ulaanbaatar.
BCM is supporting this conference and its members will receive a 10 percent discount for admission.
Selected to be part of the United Nations Environment Program‘s events to promote the 2013 World
Environment Day, Mongolia Renewable Energy Futures & Green Development will demonstrate to
the world Mongolia‘s commitment to the environment and clean, renewable energy. Keynote
addresses from distinguished local government officials, senior industry executives and noteworthy
speakers from throughout the region will reveal and promote emerging green energy development
opportunities. This one day event on June 4th will take place at Salkhit wind farm, Blue Sky Tower
and the Mongolia State House, with a limited attendance to invited VIP diplomats, government
officials and partners of ORRO.CO.
Contact chris@orro.co for more information and remember to let him know that you are a member
of the Business Council Mongolia to get a special 10% discount.
___________________________________________
MINING FOR NON-MINERS COURSE, 13-14 MAY, ULAANBAATAR
The next Mining for Non-Miners course will be held on 13-14 May. The aim of this course is to
provide those from a non-mining background with a comprehensive introductory understanding of
the mining industry. RPM is offering this two-day course for USD 1,000 for BCM members and
USD1,200 for non-members.
RungePincockMinarco(RPM), is a world class mining consulting, software and training company with
an established office in Ulaanbaatar. RPM has been successfully conducting Mining for Non-Miners
Training courses in Mongolia since 2011. The course will be delivered in Mongolian language. Please
click here to see the agenda.
The course duration is two days, with the first day focused on ―Coal Mining‖ and the second day on
―Metal Mining‖.
The number of participants is limited. Please send your expression of interest via return email if
you are interested in attending this course to me at saruul@bcmongolia.org, 317027.
___________________________________________
2nd MONGOLIA TRADE & COMMODITY FINANCE CONFERENCE, 14 MAY, ULAANBAATAR
Exporta's second Mongolia Trade & Commodity Finance Conference will be held at the Chinggis Khan
Hotel in Ulaanbaatar on 14 May. The Business Council of Mongolia (BCM) is acting as an institutional
partner for the event and has negotiated a 15 percent discount for its members to attend.
The Mongolia Trade & Commodity Finance Conference is the only specifically organized event for
the Mongolian trade and commodity finance community. It provides an unrivaled platform for
discussion and networking for leading local businesses and institutions, as well as those
international practitioners looking to tap into the huge potential of this rapidly developing market.
Speakers include Chuluunbat Orchirbat, vice minister of the Ministry of Economic Development,
Battsengel Gotov, chief executive of Mongolian Mining Corp., and Jim Dwyer, executive director of
BCM.
To receive the discount quote BCM15 when booking. Click here for more information and booking
___________________________________________
COAL PROCESSING & MINING TECHNOLOGY EXPO, 4-5 JUNE, ULAANBAATAR
The Coal Processing & Mining Technology Expo will be held in Ulaanbaatar from 4 to 5 June 2013.
The expo is co-located with the Transportation & Logistics Expo, and because of this co-location you
will be able to meet with a more diverse and broader group of attendees. With many international
as well as local Mongolian companies already signed up to exhibit, you will be a part of what is
becoming the premier event for the mining and transportation industries serving Mongolia.

18. BCM members will receive a special 10 percent discount. To register and receive your discount
email Saruul at saruul@bcmongolia.org. For more information about the exhibition, contact Glenn
Scott atgscott@uexpos.com or visit the website coalexpomongolia.com.
___________________________________________
COALTRANS MONGOLIA, 19-20 JUNE, ULAANBAATAR
The Coaltrans Mongolia conference will be held at the Blue Sky Tower from 19 to 20 June. BCM
members will receive a 15% discount to attend the event, please use the discount code BCM.
Coaltrans Mongolia will explore the development of coal projects in the country and offer an insight
into what level of influence Mongolia will have over future international coal prices. Join us as we
return to this exciting market for the third year, to have an impact on how this new coal frontier
evolves and cement your position as a leading player in the market.
Speakers will include Batsuuri Yaichil, chief executive officer of Erdenes Tavan Tolgoi LLC, Graeme
Hancock, president and chief representative of Anglo American Development, and Bayanjargal
Byambasaikhan, chairman of the Business Council of Mongolia.
For more information, email coaltrans@euromoneyplc.com.
___________________________________________
FUTURE MONGOLIA, 19-22 JUNE, ULAANBAATAR
The Future Mongolia international trade fair will be held at the Buyant Ukhaa Sport Palace in
Ulaanbaatar, near the Chinggis Khaan International Airport, from 19 to 22 June, 2013.
After the successful premier with nearly 100 exhibitors from 14 nations and some 4,200 visitors, we
cordially invite you to the second Future Mongolia. This international trade fair offers the
opportunity on an enlarged exhibition space to present modern and sustainable solutions and
responses to the present needs of Mongolia and its population.
BCM members will get 5% discount on raw space. Please contact Saruul at saruul@bcmongolia.org
to get a special discount code. For more information, visit Future-Mongolia.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‟S MINING SUPPLY CHAIN DATABASE
The new version of BCM‘s Mining Supply Chain Database is in use. Following the initiative of Oyu
Tolgoi LLC, the BCM has maintained the Mining Supply Chain Database since March 2009. It is an
honor to introduce you to the new version of the database which is totally upgraded as to its
content and use of information technology opportunities.
As of December 31, 2012 suppliers registered on the database totaled 1,405. During 2012, 251 new
supplier entities joined the Database and 236 prior supplier registrants updated their company
profiles. In addition, 22 buyers were also registered and 82 tender announcements were posted.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration—FREE!
If you have any questions regarding the database, please contact 317027.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.

19. As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks
and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the
Business Council of Mongolia (BCM) and UB Risk Management Consulting:
•Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн
засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,
ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын
19
•Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,
Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ
ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага
хурал, 2013 оны 4 дүгээр сарын 19
•Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,
Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын
албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,
СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4
дүгээр сарын 19
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available.
• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting Apr
22, 2013
• Brian White, Editor, The Mongolist – ―Analyzing Mongolian Politics from the "Middle Layer", at the
BCM Monthly meeting Apr 22, 2013
• Ch. Otgochuluu, Head of Strategic Policy and Planning Department, Ministry of Mining, ―Brief
introduction on mining policy‖ at the BCM monthly meeting Apr 22, 2013
• ―The current flow of investment into Mongolia‖, S. Bold, Chief Economist, Central Bank, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• ―About regulation on FDI‖, S. Javkhlanbaatar, Foreign Investment Regulations and Registration
Department Head, Ministry of Economic Development of Mongolia, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• ―Legal issues of regulation of foreign investment‖, B. Amarsanaa, Academic Secretary of National
Legal Institute, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference
on April 19, 2013 at the Kempinski Hotel.
• ―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, D. Gan-Ochir, Head
of Financial Stability Council, Advisor to President of Central Bank, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• ―On current state of equities foreign investment‖, D. Achit-Erdene, CEO, MICC, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• ―Market Update‖ by Mandal General Insurance LLC
• ―Annual Report 2012‖ by International Monetary Fund
• Ruth Pulaski, Director Marketing & Development, American University of Mongolia – ―American
University of Mongolia: Integrating a Liberal Education Approach to Learning‖ at the BCM monthly
meeting, March 25, 2013
• B. Bayar, Managing Director, ELC LLC – ―Update on Legal Developments Regarding Foreign
Investment‖ at the BCM monthly meeting, March 25, 2013
• Tony Burchill, Australian Consul-General & Trade Commissioner, Austrade – ―The Business of Being
a Third Neighbour‖ at the BCM monthly meeting, March 25, 2013

20. Other recently added presentations:
• Dr. Brian Fisher, Managing Director, BAEconomics, "Economic Impact of draft Minerals Law" at the
Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Dr. Ch. Khashchuluun, CEO of UBRM Consulting, ―Mongolia and Mining, The policy evolution:
What's the next?‖ at the Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Martin Pow, Partner, Enterprise Risk Services and Learning Leader, Deloitte Onch LLC, ―Black
Swans: Fact or Fiction,‖ A different risk management philosophy at the BCM Risk Management
Working Group meeting, March 14, 2013
The following 3 presentations were added from Coal Mongolia, 21-22 February:
• ―Current state of coal sector of Mongolia and future trends‖ by Minister of Mining D. Gankhuyag at
the Coal Mongolia 2013, Feb 21, SS Convention Center, Ulaanbaatar;
• ―Economic Reform Objectives‖ by Vice Minister, Economic Development, H.E. Mr. O. Chuluunbat
at the Coal Mongolia 2013, Feb 21, SS Convention center, Ulaanbaatar;
• ―Presentation for Coal Mongolia 2013‖, Norihiko Kato, CEO of Khan Bank, Feb 21 at the SS
Convention Center, Ulaanbaatar, Mongolia.
• Presentation by Bold Baatar, CEO of Altan Dornod Mongol, ―Mongolian Mining Investment
Environment‖ at the Mining Industry Open Discussion, February 1, 2013, at Kempinski Khan Palace
Hotel.
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes ―Regional Economic Outlook: Asia and Pacific‖, April 2013
by International Monetary Fund; ―Highlights of 2012, Mongolia‖ by European Bank for
Reconstruction and Development (EBRD); the ―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‖; ―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.
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.
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.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
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.

21. Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,126 fans on our Facebook fans page, 1,219 connections on LinkedIn network, and
673 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 MEETING:
BCM's Legislative Working Group met on Wednesday, May 8, with 21 members attending.
New members: Pierre-Oliver Guy from Audier Partners, David Bekcstead andAmarbayasgalan
Dorjderem from Lehman Le&Xu, Anastasiya Zherbakhanova from Anderson and Anderson were
welcomed.
Co-chairs Bayar B, ELC LLC, and James Liotta, MahoneyLiotta, moderated the session.
Meeting discussion was on the following topic:
- Update of draft National Policy of the Minerals Development - Algaa O, Executive director of
MNMA.
- Amendment to the SEFIL and the approved Regulations and Application - James Liotta, Mahoney
Liotta
- Discussion on 108 license revocation - Bayar B, ELC LLC and Algaa O, MNMA
Note: Draft National Policy of Minerals Development will be put on BCM`s Legislative Working group
web page soon in Mongolian and English version.
Please contact erka@bcmongolia.org
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
March 31, 2013 *9.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 9.4% y-o-y, Ulaanbaatar city, March 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]

22. CURRENCY RATES – MAY 9, 2013
Currency Name Currency Rate
US dollar USD 1,436.87
Euro EUR 1,891.28
Japanese yen JPY 14.53
British pound GBP 2,234.69
Hong Kong dollar HKD 185.07
Chinese Yuan CNY 234.26
Russian Ruble RUB 46.18
South Korean won KRW 1.32
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.