The Business Council of Mongolia (BCM) was formed as a non-government organization to advocate for business issues and improve Mongolia's business climate. The BCM will hold its first monthly meeting on October 29th featuring an "Ambassadors Panel". Additionally, a local company won the rights to launch a new TV channel, and significant copper and gold deposits were discovered that could have huge potential for partners Ivanhoe Mines and Entree Gold. Mongolia's Parliament will consider important decisions around mining agreements and legislation around social issues, the economy, and the environment during its fall session.

1. BCM NewsWire
BUSINESS COUNCIL of MONGOLIA
www.bcmmongolia.org
October 12 2007
NEWS HIGHLIGHTS:
__Business: Business Council opens doors; Company wins bid for new TV
channel; New copper gold discovery’s huge potential for joint partners.
__Economy: US's biggest single aid grant to Mongolia means more private
investment; Ninja mining disputes.
__Politics: Politicians face wide gamut of decision-making in fall session of
Parliament _
BCM Monthly Meeting
The first monthly meeting under the auspices of the newly formed BCM will
be held on Monday, October 29, at 5 PM in the Open Society Forum.
Featured presentation will be an "Ambassadors Panel”.
BUSINESS COUNCIL OPENS DOORS FOR INVESTORS
WELCOME to Issue One of the Business Council of Mongolia’s – BCM
NewsWire. The newswire will provide on-the-ground information about
Mongolia’s business climate, business activities and the Government in Mongolia
and links to relevant sites.
The BCM has been set up as a non-government organization and will provide
improved advocacy for business issues in Mongolia focusing on taxation,
investment, regulation, business climate, employment and the environment.
The BCM will lobby specific business legal and regulatory issues in the interests
of local and foreign investors in Mongolia's rapid economic growth to a free
market economy.
BCM’s structure includes a Board experienced in Mongolian business with Khan
Bank CEO, Pete Morrow as Chair and former NAMBC Vice President and Chief
Operating Officer in Mongolia, Jim Dwyer, as Executive Director, to provide
management of the Council. Mr. Morrow and Mr. Dwyer have 13 years
experience in the Mongolian business environment between them, at a time of
volatility, economic reform and social change.
Membership is open to all Mongolian and foreign companies.

2. COMPANY WINS BID FOR NEW TV CHANNEL
A domestic company specializing in road construction; property construction and
foreign trade has won the rights through auction to launch a new TV channel for
Mongolian viewers.
In winning from 14 competitors, Fonema Company will diversify into
communications with its successful Tgs810 million bid for the channel. The
channel broadcasts using an analogue system but company officials said they
plan to introduce a digital system.
By Law, they must start broadcasting within one year of the purchase of the
channel.
NEW COPPER GOLD DISCOVERY’S HUGE POTENTIAL FOR JOINT
PARTNERS
JOINT MINING Companies, Ivanhoe Mines and Entree Gold announced a
potentially huge copper and gold discovery along the Oyu Tolgoi Project in
Mongolia’s Gobi region.
The site along the southern rim of Ivanhoe’s Oyu Tolgoi Project initially indicated
a 1,100-meter zone of copper and gold deposits. Previously named ‘Javkhlant
Deposit’ it has been renamed ‘Heruga Deposit' as suggested by Buddhist Hambo
Lama of Mongolia.
Nineteen drill holes at Heruga Deposit have been completed or are in progress,
totaling 21,000 meters on six sections at the discovery site, spaced at 200 to 300
m intervals along a 1,400-meter stretch.
Significant copper, gold and molybdenum deposits have been found in drill holes
on five contiguous sections, representing 1,100 meters of continuous strike
length.
Read more:
http://www.montsame.mn/newsdetail.php
US's BIGGEST SINGLE AID GRANT TO MONGOLIA MEANS
MORE PRIVATE INVESTMENT
INVESTORS looking to Mongolia should keep their eye on an agreement to be
signed between the US and Mongolia in mid-October.
President N. Enkhbayar will visit the US to meet US President, George Bush and

3. sign the ‘Millennium Challenge Account Compact’ (MCC) worth US $285 million
in development over five years.
The grant will fund improvements to the railway system; healthcare; vocational
training and land registration. It will be a catalyst to stimulate greater private
sector success in Mongolia and is expected to lead to increased revenues and
provide efficient sustainable services based on a market economy model
US Ambassador to Mongolia, Mark Minton, told media at a press conference
October 7, the completion of the MCC projects was expected to attract private
investment for further development. He said, “For example, the US$188 million
funded railway project will strengthen the company and attract private investment
to develop the railway further.” It is the largest single aid grant ever given to
Mongolia by the US.
THE GUARDIAN ARTICLE ON 'NINJA' MINING DISPUTES.
The UK's leading paper, The Guardian, has written there is a dark side to
Mongolia's much-feted economic boom. If left to fester, writes the paper's
journalist, Jonathan Watts, it could make investors reconsider doing business in
the country's rapidly growing economy.
Disputes, sparked in Ogomoor Town in the remote Zamaar Valley, a seven-hour
drive west from Ulaanbaatar, between mining companies and illegal miners
called "ninjas," have led to deplorable conditions raised in The Guardian on
Wednesday October 10, 2007 article. The report described the ninjas claim the
government is victimizing them because it cares more about foreign investment
and lucrative concession deals than its own people.
Read more:
http//www.guardian.co.uk/international/story/0,,2187212,00.html.
POLITICIANS FACE GAMUT OF DECISION-MAKING IN FALL SESSION OF
PARLIAMENT
Parliament’s fall session (October) is expected to determine a new policy in
Mongolia’s development and produce decisions that will play a historical role in
strengthening the country’s economy and social renaissance.
Central to the decisions for investors will be the mining sector draft investment
agreements for Mongolia's two largest deposits - Oyu Tolgoi and Tavan Tolgoi
deposits. After five years of negotiations, Parliament is expected to consider and
approve the agreement for Oyu Tolgoi with two companies at the heart of the

4. agreement, Ivanhoe Mines Mongolia Inc. and Rio Tinto to consider their position
in light of conditions approved in the agreements.
At the opening of the fall session on October 1, Parliamentary Speaker, D.
Lundeejantsan said, “Amendments to be made to the law on social welfare, the
package of social insurance law, the law on population and housing census, the
building law, programs to ensure population with apartment houses and to
increase the workforce in the building section, would facilitate solutions to
important social issues and create favorable conditions for sustainable urban
development."
As well as these, and the draft investment agreements, the session would also
deal with the 2008 state budget, the main guidelines for Mongolia’s economic
and social development, the monetary policy, issues facing plant protection, the
animal hereditary fund, health protection, natural resources and the environment,
agricultural sector issues and others.
MPs were expected to debate over 40 draft laws related to free access to
information, freedom and liberty and to the legal status of production and
Technology Park.
Read more: _http://www.mongolmessenger.mn/
MONGOLIA STOCK EXCHANGE
FROM October 1 to 5, 2007, trading activity on the Mongolian Stock Exchange
(MSE) totaled 1.5 million shares. Total market value of transactions was 4.9
million MNT. __The "Top 20" index increased by 314.7 points (2.6%) over the
prior week and closed at 11,499.69. __Share prices rose for: APU. UID, Talkh
Chiher, BD Securities, and Mongolian Tsahilgaan Kholboo. __Most active stocks
traded were: Gobi Sumber (798,500 shares); Genko Tour Bureau (228,900
shares); Tegsh (161,900 shares); Monojbar (66,400 shares); UID (63,300
shares) __Total market capitalization of 361 companies listed on the MSE
reached 727.1 billion MNT.
BUSINESS COUNCIL of Mongolia
CONTACT DETAILS:
Seoul Street, PO Box 492
Ulaanbaatar, Mongolia
Tel + 976 9191 3321
Email: Jim@bcmmongolia.org
Website:
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