September 13 2013

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 291 – September 13, 2013
NEWS HIGHLIGHTS:
Business
 Oyu Tolgoi appoints new CEO;
 Mongolian representatives to talk with Rio Tinto investors in London;
 Board can't solve all issues at OT, says Erdenes OT executive director;
 Oyu Tolgoi appeals illegal firing case;
 Erdenes TT plans for coal washing plant commissioning in 2014;
 Shenhua expects cross-border railway to start operating in 2014;
 Sentosa confirms large copper-gold porphyry potential OT;
 Newera reports readily washable coal at Shanagan East;
 Belarusian miner to partner with government for fluorspar, brown coal;
 Belarus' MTZ to ship 300 tractors to Mongolia;
 Chinese company to build "Beijing Street" in UB;
 DBRB, XacBank sign agreement on export finance;
 New digital cable platform to debut in Mongolia;
 Mobicom appoints CEO;
 Announcement of deal to sell Russian gas to China lacked one important detail.
Economy
 Rating and outlook rest on economic stability and investment climate, says Moody’s;
 Finance Ministry to cut spending due to growing deficit;
 Mongolia looks to gold to lift up tugrug;
 Household income, average salary on the rise;
 Japan prepares to cut aid to Mongolia due to rapid development;
 Mongolia is set to export 20 Saker falcons to Kuwait and Qatar;
 Over 4,000 Mongolians living in S. Korea illegally;
 Securities Law to introduce over-the-counter trading and custodial services;
 Mongolia joins shale revolution, but at what cost?
 Ninja miners and rural change in Mongolia;
 UB to install sewage water treatment technology at schools;
 Overgrazing turning parts of Mongolian Steppe into desert;
 The return to socialism;
 China agrees to build new Silk Road;
 China surplus at highest levels since December;
 Australia election boosts business confidence;
 Optimism grows for developed economies.
Politics
 Parliament to discuss five pieces of legislation during extraordinary session;
 MP proposes stricter terms for Law on Conflicts of Interests;
 Mongolians receive visa-free travel to Belarus;
 Turkey signals support for urban-planning project;
 France pushes for energy generation cooperation;
 Mongolian delegation to visit North Korea for intergovernmental meeting;
 Blair visits Mongolia;

2.  Mongolian representative makes appeal to UN against capital punishment;
 GIA reopens espionage case against former ambassador;
 Mongolians bend over backwards to be world's top contortionists;
 The overlooked Khaan;
 Rainbow coalition: Australia’s colorful candidates.
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
BUSINESS
OYU TOLGOI APPOINTS NEW CEO
The top copper marketing executive at Rio Tinto Group will take over as the head of the Oyu Tolgoi
copper mine, said the mining unit on Wednesday.
Oyu Tolgoi's board, including three new Mongolian members, approved the appointment of Craig
Kinnell as president and chief executive, replacing Cameron McRae from 1 October. McRae is
leaving Rio Tinto. Kinnell takes over at a tricky time as Rio Tinto is trying to resolve disputes with
the Mongolian government over terms for USD 4.2 billion in project financing to fund an expansion
at Oyu Tolgoi, which is crucial to Rio and Mongolia's growth. Rio put the USD 5 billion expansion
project on hold in August and said it would have to cut up to 1,700 jobs due to the project financing
dispute.
"Craig's years of experience running mines and selling minerals at international market prices make

3. him the perfect choice to successfully lead the project in the coming years," Oyu Tolgoi Chairman
Batsukh Galsan said in a statement.
Source: Reuters
MONGOLIAN REPRESENTATIVES TO TALK WITH RIO TINTO INVESTORS IN LONDON
Mongolia-appointed new board members of a joint venture with mining giant Rio Tinto Group will
soon head to London for talks with the investors of the Anglo-Australian company.
The Mongolian government replaced domestic board members of the Oyu Tolgoi open pit and mining
project with younger, fresher and English-speaking people about a week ago. The new board
meeting will be held this week. As the stand-off between Rio Tinto and the Mongolian government
continues, the Asian country's foreign direct investment fell by 41 percent and Rio Tinto announced
a halt to the development of an underground mine estimated to hold 80 percent of Oyu Tolgoi's
value.
Facing deteriorating economic condition and a shortage of hard currency, the Mongolian
government is pushing Rio Tinto to resume the underground mine development and continue its
investment in the country. Rio Tinto has tried to get approval from the Mongolian government for
its USD 4 billion project financing proposal to fund development of the underground mine since last
winter. However, the government did not respond and its position remains unclear.
Source: Xinhua
BOARD CAN'T SOLVE ALL ISSUES AT OT, SAYS ERDENES OT EXECUTIVE DIRECTOR
The issues surrounding the Oyu Tolgoi copper gold mine will require work at both the board and
shareholders levels, said Erdenes Oyu Tolgoi Executive Director Da. Ganbold at the 2013 Discover
Mongolia forum last week.
Ganbold said the next board meeting for Oyu Tolgoi would be held next week, but it would not be
able to resolve the issues at every level. The executive director said resolving these issues were his
main priority.
Source: Undesnii Shuudan
OYU TOLGOI APPEALS ILLEGAL FIRING CASE
An Oyu Tolgoi LLC representative is appealing to the Supreme Court to rule against the Sukhbaatar
District Court's decision in favor of employee discrimination.
Former Oyu Tolgoi employee Sainkhuu Gantuya, who sued the copper miner last year on the
grounds that Mongolian employees were unfairly receiving less pay than their foreign counterparts,
stood in court again on 12 September against a labor relations officer from Oyu Tolgoi. If the court
rules in her favor again, Gantuya has promised to return to work at Oyu Tolgoi with its labor union
to appeal for reform. She is also requesting salary due to her since she was fired last year, which
the Sukhbaatar Court ruled as illegal.
Gantuya is the sister of the prominent MP Sainkhuu Ganbaatar, who has been one of Oyu Tolgoi's
most vocal critics.
Source: Zuunii Medee
ERDENES TT PLANS FOR COAL WASHING PLANT COMMISSIONING IN 2014
Erdenes Tavan Tolgoi LLC is prepared to begin construction of a coal-washing plant in 2014.
Erdenes TT first submitted plans for the project last June before receiving approval from the
Ministry of Mining and the Professional Committee on Mineral Resources. The plans call for two
years, five months of construction.
With the added coal production from the West Tsankhi, Erdenes TT expects to export between 3
million and 3.5 million tons of coal for the year. Exports have been made more efficient with
customs clearance being made at the mine site rather than the border.
Source: Zuunii Medee

4. SHENHUA EXPECTS CROSS-BORDER RAILWAY TO START OPERATING IN 2014
Shenhua Group Corp. Ltd., the world's largest coal distributor, is accelerating the pace of
construction of a cross-border railway project as an independent transportation passageway to run
through Mongolia to further explore international resource opportunities.
"Constructed by Shenhua Group, the Ganquan railway linking the Sino-Mongolian border port to
Baotou city in the Inner Mongolia autonomous region will start operating in January 2014," Wang
Xingzhong, president of Shenhua's Baoshen Railway Co Ltd, told China Daily.
Total investment in the Ganquan railway by Shenhua is around 7.5 billion yuan (USD 1.22 billion).
The project was defined as one of main drivers of economic and trade cooperation between China
and Mongolia.
Source: China Daily
SENTOSA CONFIRMS LARGE COPPER-GOLD PORPHYRY POTENTIAL OT
Sentosa Mining Ltd. has received two independent technical reviews of a recently completed
aeromagnetic survey over the north-western sector of the Darvii Naruu project in Mongolia.
Each confirmed the significant potential for large scale copper-gold, within that sector of the
project. The first review was conducted by Ozex Consulting, a firm of independent geological
consultants, which focused on the geology and geochemistry of the Darvii Naruu Project. The
second review, by Southern Geoscience Consultants, focused on the airborne and magnetic
radiometric data itself. At Darvii Naruu, 1,620 line kilometers of aeromagnetic-radiometric data
was collected, confirming a tectonic setting in a known porphyry mineral belt that hosts Rio Tinto
PLC's giant Oyu Tolgoi copper deposit.
Relative age of host stratigraphy is consistent with other known porphyry systems within the belt,
including Oyu Tolgoi; strengthened by ore-grade mineralization up to 5.8 percent copper and 34.4
grams per ton gold found in outcrop over the Mushroom Reef prospect. A large circular magnetic
low feature immediately north of Mushroom Reef is possibly indicative of a large intrusion at depth.
Geochemistry confirms a suite of anomalous pathfinder elements including zinc and lead, which are
a reliable porphyry system signature.
Several drill-ready magnetic and potasic targets, from 37 in total, have been identified with drilling
preparations underway. Sentosa intends to exercise its option to acquire 100 percent of the
Mongolian project, subject to the company being satisfied with final due diligence inquiries.
Source: Proactive Investors
NEWERA REPORTS READILY WASHABLE COAL AT SHANAGAN EAST
Newera Resources Ltd. reported results received of coal washability tests from bulk samples
conducted on its Shanagan East Project in Mongolia.
Detailed washability tests under a coal quality and test work plan supervised by Sedgman Ltd.
demonstrated the coal to be washable through a standard and common coal handling and processing
plant. Coal quality analysis confirms previous results indicating a semi-anthracite, low-volatile, low
moisture bituminous coal, with high calorific and ash values.
Shanagan coal could be mined to produce a lower energy product without washing, and if used for
power generation would be considered a ―clean coal.‖ High ash deformation temperatures of over
1,400 degrees Celsius allow high temperature boiler operations, delivering greater efficiency and
lower capital cost in future power plant construction. The range of potential uses for both as-mined
and washed coal allows flexibility in resource development, as the products will be suitable for
multiple potential customers.
Source: Proactive Investors
BELARUSIAN MINER TO PARTNER WITH GOVERNMENT FOR FLUORSPAR, BROWN COAL
A Belarusian company will participate in the mining of fluorspar and brown coal in Mongolia,
Belarus' Environment and Natural Resources Minister Vladimir Tsalko told media.
The agreement was reached during the official visit of the Belarusian delegation headed by Premier
Mikhail Myasnikovich to Mongolia on 3 to 5 September. During the talks with their Mongolian

5. counterparts, representatives of the Belarusian Environment and Natural Resources Ministry
touched upon the issues of exploration and excavation of minerals, which are in abundance in
Mongolia. According to Vladimir Tsalko, the meetings resulted in an agreement on granting Belarus
exploration concessions in Mongolia.
―Our companies will have the right to mine all minerals they explore and sell them jointly with the
Mongolian side,‖ said Tsalko. ―We have agreed that our company would begin mining operations in
Mongolia in late 2013. The sides will sign agreements on the establishment of a joint venture to
mine fluorspar, a spar which is imported by Belarus.‖
Tsalko said Mongolia suggested transferring to the Belarusian partners a brown coal deposit which
has not been mined. The minister said several businessmen and some Belarusian companies,
including BelAZ, have taken interest in the project. Belarus hopes to start mining operations in
early 2014.
Source: Belarusian Telegraph Agency
BELARUS' MTZ TO SHIP 300 TRACTORS TO MONGOLIA
Minsk Tractor Works (MTZ) will deliver 300 tractors to Mongolia, director general of the company
Vladimir Volchek told reporters.
The contract to supply the machines is estimated at over USD 7.83 million. The contract was signed
during the official visit of the Belarusian governmental delegation led by Prime Minister Mikhail
Myasnikovich to Mongolia. Volchek said that the first tractors will be shipped this month;
subsequent deliveries will take place in 2014. The company chief noted that this is not the only
contract signed during the visit. Soon a joint venture to produce energy-efficient farm machines
will be established in Mongolia.
―Now we are discussing its capacities. We are deciding what kind of tractors will be manufactured
there,‖ Volchek said. He suggested that the company might be based in Erdenet, the second-largest
city in Mongolia, or its suburbs. ―Most of our customers live in this area. Most of agricultural
companies are located there and these companies use Belarusian tractors,‖ he said.
The project to set up the joint venture will be launched in 2013. Task groups will be set up, a
business plan will be developed spelling out economic parameters of the project.
Source: Belarus Telegraph Agency
CHINESE COMPANY TO BUILD "BEIJING STREET" IN UB
The municipal office of Ulaanbaatar city signed a memorandum of understanding with a Chinese
construction company here on Tuesday to launch the "Beijing street" project.
Gantomor Nyamdavaa, deputy mayor of Ulaanbaatar in charge of road, transportation and
infrastructure, and China's Mongolia branch of the Beijing Corporation Engineering Group signed the
document, according to a press release. Funded by the Chinese government with CNY 60 million
(about USD 10 million), the project will update a bridge in the city and build a four-lane road in the
city, which will be named after China's capital of Beijing.
Source: People's Daily
DBRB, XACBANK SIGN AGREEMENT ON EXPORT FINANCE
The Development Bank of the Republic of Belarus (DBRB) and XacBank LLC signed a framework
agreement on export finance on 5 September.
During the first Belarusian-Mongolian business forum in Ulaanbaatar, representatives of DBRB held
talks with Mongolia‘s major financial institutions. Following these talks the framework agreement
was signed with XacBank. On behalf of Belarus the document was signed by DBRB Chairman Bank
Sergei Rumas and XacBank President Jambal Ganbaatar signing for Mongolia. The agreement
contains the arrangements on the general terms of the issue of export loans by the DBRB to XacBank
to finance the acquisition of goods, works and services from residents of Belarus with the insurance
to be provided by Exmigarant of Belarus.
"The agreement will contribute to the strengthening of trade and economic relations between
Belarus and Mongolia, including exports of Belarusian goods, works, services to Mongolia," the Bank

6. said.
Source: Belarusian Telegraph Agency
NEW DIGITAL CABLE PLATFORM TO DEBUT IN MONGOLIA
A digital television business and an independent content provider will debut a new turnkey platform
for pay-TV service providers in Mongolia. The platform from NAGRA enables quick deployment of
new services with an engaging user experience.
Cable operator Sansar HD and satellite provider DDishTV will launch the fully pre-integrated
solution this month giving subscribers secure access to premium entertainment as well as to a
variety of advanced and interactive services.
―NAGRA‘s pre-integrated solution gives us the opportunity to securely monetize our content
investments while offering the best user experience on the market,‖ said Zorigt Ulaankhuu, chief
executive for Sansar HD LLC. ―NAGRA has a strong reputation for offering robust technologies in the
areas of content protection and advanced services and deeply understands our market needs. It was
the right choice for both our cable and satellite services because it allowed us to deploy a best-of-
class solution to our subscribers, and in record time.‖
The NAGRA turnkey solution is a feature-rich broadcast platform designed to be brought to market
in less than three months while still providing service operators the ability to customize the solution
to their own requirements. Sansar HD is the largest cable TV operator in Mongolia. DDishTV is a
satellite and Internet provider with the mission of serving rural areas of Mongolia. Both service
providers are owned by GEM International.
Source: Satnews
MOBICOM APPOINTS CEO
Mobicom Corp. announced the appointment of David Hooliday as chief executive, effective 2
September.
Holliday has international experience establishing mobile telecommunications companies. He served
as managing director of Uganda Telecom for the past year. Prior to Uganda Telecom, Holliday was
managing director of Goldstream for two years. His prior experience includes the role of chief
strategy office and advisor to the chairman and chief executive officer at LAP-GreenN, member of
the Business Advisory board at VoxGen and chief executive of Zain in Zambia.
Source: News.mn
ANNOUNCEMENT OF DEAL TO SELL RUSSIAN GAS TO CHINA LACKED ONE IMPORTANT DETAIL
The agony of choice is familiar to anyone with too many options. In Gazprom‘s case, the agony
stems from other people‘s choices.
There was some pain relief on Thursday, when amid the fanfare of the Group of 20 summit in St.
Petersburg, the Russian giant announced a new agreement to sell gas to China. Gazprom‘s stock
jumped 6 percent. The excitement is understandable—to a point. After years of negotiations and
other breakthroughs being announced, this is at least called ―legally binding‖ and establishes that
the price paid will not be linked to exceptionally low U.S. wholesale gas prices. That is positive. But
the more important issue—what the price actually is—remains elusive.
China has little incentive to lock itself into high prices for Russian gas for the long-term because it
has competing choices. The U.S. shale revolution has upended global gas-market expectations.
China can buy gas from a growing number of sources, ranging from Australia to Turkmenistan, the
latter having been visited (pointedly?) by Chinese President Xi Jinping before he reached Russia this
week.
The Chinese announced another deal Thursday to take a stake in a Russian gas project run by
Gazprom‘s domestic rival, Novatek. James Henderson, a senior research fellow at the Oxford
Institute for Energy Studies, says the Chinese are doing what any sensible buyer would: ―play one
supplier off against another.‖ It is notable the market value of upstart Novatek has gone from one-
tenth that of its larger rival to more than one-third in the past five years. Gazprom was built for a
world where gas markets were isolated and state-backed suppliers could dictate terms. The world

7. has moved on.
Source: Wall Street Journal
ECONOMY
RATING AND OUTLOOK REST ON ECONOMIC STABILITY AND INVESTMENT CLIMATE, SAYS
MOODY‟S
Moody's Investors Service said that Mongolia's B1 sovereign bond rating and stable outlook hinges on
the absence of significant fiscal pressures, relative macroeconomic stability, and the maintenance
of a favorable investment climate in the mining sector.
Moody's assessment was contained in its just-released "Credit Analysis Mongolia" which serves as an
update to investors and is not a rating action. Moody's looks at four, overall methodological factors
and scores them as follows for Mongolia: economic strength—low; institutional strength—low;
government financial strength—low; and susceptibility to event risk—high. Moody's noted that the
country's credit strengths include its strong growth, which is based on rich natural resources, but
also underscores credit challenges, stemming from a narrowly-diversified economy, pro-cyclical
fiscal policy, and an unpredictable investment regime.
Source: Moody‘s Investors Services
FINANCE MINISTRY TO CUT SPENDING DUE TO GROWING DEFICIT
Mongolia is facing a budget deficit of MNT 222 billion before spending of MNT 830 billion remaining
in budget expenditures, said Finance Minister Ch. Ulaan in a budgetary update to foreign
representatives in Mongolia.
Mongolia is likely to see a revenue shortfall of MNT 950 billion to MNT 1 trillion for the year, said
Ulaan. He said Mongolia would likely decline on the option for MNT 500 billion in foreign loans. The
Finance Ministry is also prepared to cut some MNT 170 billion in expenses and reduce spending in
other areas by MNT 300 billion.
Source: Info Mongolia
MONGOLIA LOOKS TO GOLD TO LIFT UP TUGRUG
With the Mongolian tugrug down by approximately 25 percent so far this year, the government is
turning to the only currency in the world that does not carry counterparty risk: gold. Last week
during a Cabinet meeting, officials proposed a new law that would underpin transparent gold
trading in Mongolia.
In 2006, Parliament introduced the Windfall Profits Tax across a range of commodities produced in
Mongolia. Mining license holders were required to pay a royalty calculated on the total sales value
of the minerals extracted. At the time the royalty applied to gold production was set at 5 percent.
This proposed law would see that royalty of 5 percent cut in half to 2.5 percent.
The government's decision to rely on domestic hard assets such as gold is encouraging given the
local currency's depreciation and weakening commodities prices. However, an immediate impact on
the currency is unlikely, and strengthening of the tugrug will only occur after legislative reform is
enacted, said the Source.
Source: Mongolian Investment Banking Group
HOUSEHOLD INCOME, AVERAGE SALARY ON THE RISE
Average household income grew 12 percent for the year until August from the same period in 2012,
reported the National Statistical Office.
The number of registered unemployed for the same period grew 8.2 percent year-on-year to some
88,900. About 1.3 million people, or 40 percent of the total population, are employed. The average
salary is MNT 841,000, a 14 percent increase year-on-year.
Household spending was up 18 percent, with 30 percent of household expenditures going to
groceries.

8. Source: Zuunii Medee
JAPAN PREPARES TO CUT AID TO MONGOLIA DUE TO RAPID DEVELOPMENT
Japan announced that it was preparing to wind down aid to Mongolia after over two decades of
financial support.
Japan, the largest donor of aid to Mongolia, said it would no longer provide aid to Mongolia because
of the rapid development experienced in the country, which is indicated by the growth of gross
domestic product (GDP) to USD 3,300. In observance of this achievement, Japan is committing to
the construction of a new hospital equipped with the latest medical equipment as its final project.
Japan is preparing to send to Mongolia professors and qualified specialists to train local staff, said
Japanese Ambassador Takenori Shimizu.
Source: Unuudur
MONGOLIA IS SET TO EXPORT 20 SAKER FALCONS TO KUWAIT AND QATAR.
The transaction falls in line with a quota set by an agreement signed this year. Mongolia has
participated in the falcon trade since the mid-1990s, with the majority of the birds caught in the
wild sent to the Middle East. Mongolia initially banned the trade after naming the Saker falcon its
national bird in 2012. Despite the decline in population elsewhere in the world, Mongolia remains
one of the few countries still housing a significant wild population.
Although falcon hunters in Kuwait have already begun their work in Mongolia, those from Qatar are
still waiting on permissions. Hunters will be searching for falcons in Tuv and Khentii Aimags until
the season's end on 25 October.
Some who oppose the falcon trade have criticized the traditional practice of hunters capturing 200
birds to keep the 20 best specimens.
Source: News.mn
OVER 4,000 MONGOLIANS LIVING IN S. KOREA ILLEGALLY
South Korea reported a total of 4,098 illegal Mongolian citizens living there.
Korea‘s Immigration Services released data showing a total of 79,617 foreigners living in the country
illegally. In addition to the Mongolians, Korea has 34,852 illegal Chinese, 15,448 Thai, and 3,937
Filipinos.
Source: Unuudur
SECURITIES LAW TO INTRODUCE OVER-THE-COUNTER TRADING AND CUSTODIAL SERVICES
The Mongolian Stock Exchange (MSE) has a released an account of key features to be introduced
when the Securities Law takes effect on 1 January 2014.
The revised Securities Law aims to create a legal framework which develops the local capital
market in line with international standards, enhances regulation of market participants, increases
market transparency, protects and investors' rights interests, increases state authority in
regulating, monitoring, and ensuring the sound operation of the securities market, said the Source.
A key feature is over-the-counter trading of securities, meaning licensed persons entering into
agreements directly related to the purchasing and selling of financial instruments not otherwise
prohibited are authorized by the owners of trade. The law provides detailed provisions for the
payment system, stating that trade settlements shall be made within three business days of the
transaction.
The law also details the role of custodial services, or the deposit of securities and services related
to the rights of ownership of securities. The Bank of Mongolia and Financial Regulatory Commission
shall together approve procedures for conducting custodial services.
Source: Mongolian Stock Exchange
MONGOLIA JOINS SHALE REVOLUTION, BUT AT WHAT COST?
This spring, Genie Energy signed an agreement with the government of Mongolia, under which its
subsidiary will explore oil shale over a five-year period. Statements to the press have spun the

9. agreement as a way for the country to achieve energy independence from Russia, as Mongolia
currently imports 90 percent of its petroleum needs from its neighbor. Estimates have put
Mongolia‘s oil shale reserves at 800 billion tons or more.
However, critics of oil shale contend that the costs of extracting the oil from the shale will not
produce a satisfactory energy return on investment .While shale oil and shale gas currently
dominate global energy news as the ―shale oil revolution,‖ oil shale is its poorer relative. It‘s more
costly to extract, and in that respect has been likened to tar sands in Canada. Richard Heinberg,
senior fellow at the Post Carbon Institute, a think tank that specializes in energy initiatives
explained: ―Oil shale is even worse than the tight oil [shale oil] extracted with fracking. The
resource has a very low energy density, so much energy and effort have to be expended in
extraction and upgrading each unit of output. The tar sands of Canada offer an analogy, but oil
shale is an even lower-grade resource.‖
David Hughes, a geoscientist with the Post Carbon Institute, explained that the project was not
―commercially viable using in-situ technology at this point‖. Published reports on Genie‘s
explorations in Mongolia have been hard to find. Herders along the Orkhon River in the Selenge
province in May who said that pastures along the river were becoming over-exploited as new herder
families and their livestock displaced by Genie arrive. By the end of May, media had reported that
Genie was exploring in the Lun and Erdenesant Soums by the Tuul River in Tuv Aimag.
Source: The Diplomat
NINJA MINERS AND RURAL CHANGE IN MONGOLIA
There are an estimated 100,000 artisanal miners in Mongolia; in a population of less than three
million people, they represent 20 percent of the rural workforce. Artisanal mining occurs in 19 of
the 21 provinces in Mongolia. Artisanal miners are called "ninja miners" due to their clandestine
activities (causing many to mine at night), and because they often carry their sieves or pans on
their backs, which resembles the ninja turtles of the U.S. television and comic book series. Most
Mongolian ninja miners (80 to 90 percent) mine gold while the rest mine for fluorspar and coal.
Climate change, diminishing agricultural returns, dramatic economic change, and the high gold
prices of the last decade (pre-2012) contributed to ASM's dramatic rise in the country. As a result,
many Mongolian ninja miners are ex-farmers, herdsman, ex-factory workers, and potentially even
ex-bureaucrats.
Both men and women mine. Between 35 to 40 percent of Mongolian ninja miners are women. Of
those that mine alluvial deposits, 80 percent of women miners are between 35 and 39 years old and
nearly 40 percent of women miners have completed secondary education. This has led some to
speculate that the rise in artisanal for women may be result of a lack of available skilled jobs in the
formal sector.
"Normally we want people moving from mining into sustainable livelihoods. Right now the opposite
is happening,‖ said International conservation leader attending a Sustainable Artisanal Mining
Project Conference.
Acknowledging the large rise in artisanal mining, the ggovernment passed a temporary law in 2008
to regulate the informal mining sector that gave artisanal miners legal rights to mine and limited
land rights. Mercury has been outlawed but it is still available and in use. Ninja miners also face
social isolation; predominant beliefs in Mongolia are that the land is sacred and that mining it is a
spiritual offense. As a result, public opinion is fiercely against the ninja miners, though it is
gradually changing with increased understanding on who the miners are and what drove them to
mine.
Source: ASM-PACE
UB TO INSTALL WATER SEWAGE TREATMENT TECHNOLOGY AT SCHOOLS
The Mongolian water entity Mongol Us announced that it would be introducing ―gray‖ water
treatment technology using aid from South Korea.
The use of gray water treatment is to improve water management in Mongolia. Research for the
project has been carried out since 1 January this year. Before that, in May 2012, a pilot project was

10. held at Ulaanbaatar's School No. 58, where water treatment equipment was installed. School No. 58
is able to treat 24 tons of water a day using a chlorine station, sand filter, and an ultraviolet ray
neutralizer to reduce bacterial contamination.
―We are monitoring the water treatment system with the capability of removing high levels of
minerals and will install systems at UB schools, kindergartens, orphanages, and hospitals to treat
thousands of tons of water from eroded water pipelines to better manage water,‖ said Mongol Us
chief Ts. Sosorbaram.
He added that there were plans to install these systems outside the city, in Mongolia's provinces.
Source: UB Post
OVERGRAZING TURNING PARTS OF MONGOLIAN STEPPE INTO DESERT
Overgrazing by millions of sheep and goats is the primary cause of degraded land in the Mongolian
Steppe, one of the largest remaining grassland ecosystems in the world, Oregon State University
researchers say in a new report.
Using a new satellite-based vegetation monitoring system, researchers found that about 12 percent
of the biomass has disappeared in this country, more than twice the size of Texas. They also found
that 70 percent of the grassland ecosystem is now considered degraded. Overgrazing accounts for
about 80 percent of the vegetation loss in recent years, researchers concluded in the report
published in Global Change Biology, and reduced precipitation as a result of climatic change
accounted for most of the rest. These combined forces have led to desertification as once-
productive grasslands are overtaken by the Gobi Desert, expanding rapidly from the south.
Since 1990 livestock numbers have almost doubled to 45 million animals, caused in part by the
socioeconomic changes linked to the breakup of the former Soviet Union, the report said. High
unemployment led many people back to domestic herding. The problem poses serious threats to this
ecosystem, researchers say, including soil and water loss, but it may contribute to global climate
change as well. Grasslands, depending on their status, can act as either a significant sink or source
for atmospheric carbon dioxide.
"This is a pretty serious issue," said Thomas Hilker, an assistant professor in the OSU College of
Forestry. "Regionally, this is a huge area in which the land is being degraded and the food supply for
local people is being reduced. He added, "Globally, however, all ecosystems have a distinct
function in world climate," he said. "Vegetation cools the landscape and plays an important role for
the water and carbon balance, including greenhouse gases."
Even though it was clear that major problems were occurring in Mongolia in the past 20 years,
researchers were uncertain whether the underlying cause was overgrazing, climate change or
something else. This report indicates that overgrazing is the predominant concern.
Source: Science Daily
THE RETURN TO SOCIALISM
It is often discussed how Mongolia spent 20 years transitioning from a centrally planned economy to
a market economy. However, it might cross your mind that Mongolia has traveled in a circle, only to
arrive right back where it started.
According to D. Tsogtbaatar, the elected chairman of the State Property Committee, Mongolia has
94 state-owned enterprises that are expected to be privatized. Of those, 37 ran deficits last year,
and, further, 14 of those deficit-ridden companies had shortfalls of more than MNT 1 billion. The
final tally is a total deficit for state-owned companies of MNT 50 billion.
The heads of state-owned companies are politically appointed, and there is little accountability for
running deficits because the losses are usually simply made up for with money from the state
budget. When filing taxes, those companies can make deductions for depreciation, and that money
usually falls into the pockets of those chief executives. Similar shenanigans occur as the heads of
state-owned companies deal exclusively with the goods and services of their own private
companies. Those companies will then drag their feet to ensure long-term payment.
The government has taken control of too much of the economy, with politicians seizing full control
of those assets—no matter how well they can manage them. Simply replacing a few ministers or

11. making a few new appointments will not solve anything. Instead, state assets must be sold off and
the rules have to be changed so the politicians are not given so much leverage. MPs have been
called back early to parliament for an extraordinary session, and it needs to focus on the underlying
causes of the economic decline. In addition to the agenda, Parliament should focus on the issue of
state assets and passing the law that would prohibit members of Parliament from taking
appointments into the Cabinet. Unless the economic situation and these inherent flaws are taken
seriously, the September session will be another useless spectacle.
Author Dambadarjaa “De Facto” Jargalsaikhan is an independent media representative: a
columnist and television host of “defacto” on NTV Mongolia.
Source: UB Post
CHINA AGREES TO BUILD NEW SILK ROAD
China will enhance partnerships with its neighbors to the west, aiming to build an integrated
regional communications network that will include Mongolia, a top Chinese official said on Monday.
Vice Minister of Industry and Information Technology Shang Bing said that this network will help
China, Central Asian nations, Russia and Mongolia to accelerate their economic recoveries and
promote multilateral trade. Communications services have become one of the most dynamic and
fastest-growing industries for developed nations, creating jobs in sectors such as e-commerce and
logistics. A number of developing countries have also realized that this industry can be an aid to
their economies.
"Developing information services will not only help countries in the Eurasian corridor reduce their
heavy dependence on trade in natural resources –they will also find new ways to diversify their
development modes," Shang said.
At the Third China-Eurasia Expo held in Urumqi on Monday, China Telecom Corp. Ltd., China Unicom
Hong Kong Ltd. and China Mobile Hong Kong Co. Ltd. signed seven cooperative agreements and
business memoranda with the governments of Kazakhstan, Tajikistan, Russia and Mongolia, and
companies in those countries, to build communication facilities.
The Silk Road came into being some 2,000 years ago. Running for 7,000 kilometers, the ancient
trade route was forged by camel-driving merchants who carried silk and porcelain to Western
Europe and spices to the Far East. The road lost its significance as the age of seaborne commerce
dawned.
"The New Silk Road consists of highways, logistics centers, manufacturing facilities, new towns and
gas and oil pipelines.
Source: ECNS.cn
CHINA SURPLUS AT HIGHEST LEVELS SINCE DECEMBER
The trade surplus of China, Mongolia's number-one trading partner for commodities, rose in August
to its highest level this year, in the latest sign of how China has emerged largely unscathed from
the currency declines and stocks market setbacks seen in many emerging markets this summer.
The General Administration of Customs in Beijing said on Sunday that China's surplus reached USD
28.52 billion last month, the highest level since December. As foreign-exchange money poured in
from around the world to buy Chinese goods, China's central bank allowed the yuan to inch up 0.1
percent against the dollar last month.
―The market turbulence in emerging economies, especially in India and Indonesia, has made RMB a
center of stability,‖ Liu Li-Gang, the chief economist for greater China at the Australian and New
Zealand Banking Group,‖ said in a research note, using a common short form of the Chinese
currency's name.
While the yuan's gain last month may have been tiny, it contrasted with declines among most
emerging market currencies as investors fretted that U.S. Federal Reserve policy makers would
decide at a meeting on 18 September to begin reducing the pace of the American central bank's
asset purchases. That could cause interest rates in the United States to climb further, making
investments there more attractive and reducing the appeal of emerging markets. The losers among
emerging market currencies last month tended to be those of countries struggling to attract enough

12. foreign investment to pay for their trade deficits. The biggest loser last month was the Indian
rupee, which fell 8.2 percent.
China's exports last month were particularly strong to Southeast Asia, South Korea and Taiwan. But
China's trade surplus also increased because imports were virtually unchanged for the huge category
of reprocessing goods—everything from high-end plastics to computer chips that are imported by
China for use in products that are then exported. Excluding reprocessed goods, China's other
imports grew strongly in August as officials in Beijing have authorized state-controlled banks to step
up lending.
Source: New York Times
AUSTRALIA ELECTION BOOSTS BUSINESS CONFIDENCE
Business confidence surged in August as firms hoped Australia‘s federal election would put an end
to political uncertainty, but actual conditions remain weak. Confidence in Australia, a main
competitor for coal deliveries to China, rose across all states and sectors, with mining firms leading
the charge, according to the National Australia Bank's (NAB's) monthly business survey released on
10 September.
―Mining firms may have been gaining some confidence about the minerals and resource rents tax
being scrapped under a new government,‖ said the NAB.
Record-low interest rates and a falling Australian dollar also played a role in improving confidence,
but they were not enough to explain the sixth largest jump in the survey's month history,‖ said NAB.
The survey's main measure of business confidence shot up to 6 from -3 in July, the highest reading
since May 2011 and the sixth largest monthly increase in the series' history. The swing came despite
a tough trading background, with the survey's measure of business conditions improving only
marginally to -6 in August, from -7 in July.
Confidence was still weak in the mining sector, after a jump from -24 to -3 on the survey index.
Finance, business and property were the strongest sectors with a reading of 12. But the surge in
conditions were ―unchanged at soggy levels,‖ with retail recording its weakest reading in more than
five years. The June quarter gross domestic product numbers showed Australia is growing below
trend and NAB's forecast remains unchanged. NAB forecasts GDP growth to soften 2.3 percent in
2013 before gradually rising to 2.5 percent in 2014 and 2.9 percent in 2015. Unemployment will
exceed 6 percent by end 2013 and peak at 6.75 percent by end 2014, NAB said.
Source: Sydney Morning Herald
OPTIMISM GROWS FOR DEVELOPED ECONOMIES
Government borrowing costs in the United States and Europe‘s surges as investors became more
optimistic now that the developed world has embarked on a period of sustainable and rapid growth
and anticipated that central banks will increase interest rates earlier than previously thought.
Yields on sovereign debt, which moves inversely to prices, broke above key levels in Europe and the
United States, even after Mario Draghi, the European Central Bank president, warned about the
fragility of the euro zone‘s nascent economic recovery. The rising confidence in advanced
economies has altered the dynamic of the Group of 20 (G20) summit compared with recent years.
Leaders of the developed world were relieved to be out of the markets‘ spotlight, while leading
emerging economies announced they would collaborate to build a defensive fund to counter a
capital flight after a torrid summer in currency markets. Global stock markets were also buoyed by
signs that economic growth may be gathering pace. The FTSE World index rose for a fourth
consecutive day, its longest positive streak since late July.
The positive signals from advanced economies contrasted with continued turmoil in emerging
economies, where borrowing costs climbed to the highest since October 2011 as investors continued
to fret that the end of the U.S. monetary stimulus would exacerbate sluggish economic growth in
the developing world. Most emerging market currencies fell further against the U.S. dollar on
Thursday, with the Indonesia rupiah leading the decline, falling to a fresh-four-year low. At the G20
summit, the BRICS countries—Brazil, Russia, India, China and South Africa—announced they would
contribute USD 100 billion to a fund to stabilize currency markets, although details of its operations

13. were still to be established.
Source: Financial Times
POLITICS
PARLIAMENT TO DISCUSS FIVE PIECES OF LEGISLATION DURING EXTRAORDINARY SESSION
Five pieces of legislation are scheduled for discussion at the extraordinary session of Parliament
scheduled for 16 to 27 September. Parliament will discuss the Law on Investments, the Law on
Investment Funds, the Law to Establish Transparent Gold Trading, the Amendment to the
Regulation of Water and Forest Act, and the Law on Abundant Minerals.
―MIBG has reviewed the Investment Law and believes that the legislation will create a significantly
positive legal environment for existing and prospective foreign investors,‖ said the Source.
―Similarly, abolishing the SEFIL legislation that was introduced in 2012 to regulate foreign
investment into sectors of strategic importance will add to the strengthening climate.‖
The amendments to the Water and Forest Act will likely exclude some mining companies from the
law. That might include Centerra Gold for its 1.2 million-ounce gold deposit.
Source: Mongolian Investment Banking Group
MP PROPOSES STRICTER TERMS FOR LAW ON CONFLICTS OF INTERESTS
MP J. Batzandan has submitted a proposal to amend the Law on Conflicts of Interest to prohibit civil
servants from establishing offshore companies.
The amendment would make it illegal for public and appointed officials from establishing offshore
companies during their service and two years after their service ends. It would also block officials
from circumventing the law by putting companies under the names of their parents, and underage
children still living with the family. The law goes further to ban them from opening accounts at
banks and non-banking financial institutions in foreign countries and the purchase of real estate
outside of Mongolia.
The proposal stresses the need to cover any possible loopholes that would allow officials to obscure
their ownership of assets, their incomes, or tax exemptions and reductions.
Source: Unuudur
MONGOLIANS RECEIVE VISA-FREE TRAVEL TO BELARUS
Mongolia has negotiated 90-day visa-free entrance to Belarus for its citizens, effective 4 October.
An agreement for the new visa conditions was signed on 4 September by Foreign Affairs Minister
Luvsanvandan Bold and Belarusian Foreign Minister V. Rybakov. Mongolia has thus far established
visa-free travel agreements with 16 countries in the world.
Source: UB Post
TURKEY SIGNALS SUPPORT FOR URBAN-PLANNING PROJECT
Turkish President Abdullah Gul expressed interest in providing Turkish government support for a
5,000-home apartment complex during a meeting with the minister of construction and urban
planning in Istanbul on 5 September.
Minister Ts. Bayarsaikhan brought up the issue while discussing opportunities to cooperate in
construction and urban development. Gul expressed satisfaction with the development of bilateral
ties and promised to show support for the proposal for the apartment complex project. The
proposal has Turkey providing financing to the project via low-interest, long-term loans.
Also during his visit, Bayarsaikhan and State Secretary R. Erdeneburen met with authorities from
Turk Eximbank to discuss a possible USD 300 million soft loan from the government of Turkey.
Source: UB Post
FRANCE PUSHES FOR ENERGY GENERATION COOPERATION
Delegates from Mongolia and France discussed cooperation in the development of renewable energy

14. and nuclear energy during an intergovernmental working group meeting in Paris, France on 2
September.
The meeting was Mongolia and France's first intergovernmental meeting. Delegates discussed
opportunities to cooperate in agriculture and infrastructure, in addition to energy, while Mongolia
raised the more specific issues of soil degradation, deforestation, and water management.
Also acknowledged during the meeting was the selection for the Power Plant No. 5 project of a
consortium that includes France's GDF Suez SA.
Source: Info Mongolia
MONGOLIAN DELEGATION TO VISIT NORTH KOREA FOR INTERGOVERNMENTAL MEETING
Mongolian delegates will travel to Pyongyang, North Korea from 22 to 26 September for the ninth
Intergovernmental Consultative Committee meeting.
During the meeting Mongolian and North Korean delegates will observe the 65th anniversary of the
establishment of their diplomatic relations. The meeting will also include broad bilateral talks for
cooperation. Also, the Mongolian National Chamber of Commerce and Industry will enter into a
memorandum of understanding with North Korea's Ministry of Foreign Trade.
Source: News.mn
BLAIR VISITS MONGOLIA
Former British Prime Minister Tony Blair pitched his Government Advisory Practices services to
Mongolia during a visit to Mongolia on 7 and 8 September.
Blair arrived in Mongolia to see the progress of five projects launched by a year-long contract for
advisory in education, health, employment, and legal assistance. The Tony Blair Foundation has
suggested a cooperative effort with the government led by former Prime Minister S. Batbold, and
has three members of his staff working on the ground in Mongolia. Blair has previously entered into
contract agreements to provide advisory to Central Asian governments via his Government Advisory
Practice. He provides advisory services to the Vietnamese government, and has held talks with the
leaders of Hong Kong and Thailand in recent months, raising the prospect that he could land further
business in the Far East by the end of the year. Other contracts for advisory include the
governments of Peru, for public sector reform, as well as Kazakhstan, Kuwait, and Colombia.
Source: News.mn
MONGOLIAN REPRESENTATIVE MAKES APPEAL TO UN AGAINST CAPITAL PUNISHMENT
Mongolia‘s permanent representative to the United Nations Office at Geneva and international
organizations, L. Orgil, gave a speech at the 24th Session of the Human Rights Council on 9
September for an appeal against the use of capital punishment.
Orgil said Mongolia ratified the Second Optional Protocol to the International Covenant on Civil and
Political Rights, aiming for the abolition of the death penalty, which was introduced at the seventh
Ministerial Conference of the Community of Democracies.
He also expressed regret for the deaths of many civilians, including children and women, in Syria
due to the worsening violence there, urging the international community to take measures to end
the violence. If it is confirmed that any side in Syria used a chemical weapon, he said, it would be
proof of a severe crime against humanity.
Source: Montsame
GIA REOPENS ESPIONAGE CASE AGAINST FORMER AMBASSADOR
The General Intelligence Agency has reopened its case against former Ambassador to Kuwait Kadir
Sairaan for high treason.
The case was originally suspended due to Sairaan‘s poor health conditions, after the case was
opened in May. Sairaan is accused of espionage when he was named as a ―secret agent‖ for
Kazakhstan by a Russian website. The headline on the website reads: ―Profiles of Secret Agents of
Balrou Secret Service in Kazakhstan.‖ The website connected Sairaan him with the alias ―Altai‖,
and his function in public relations along with his ―high level of communication in the country.‖

15. If found guilty, Sairaan would be facing between 16 to 25 years in jail.
Source: News.mn
MONGOLIANS BEND OVER BACKWARDS TO BE WORLD'S TOP CONTORTIONISTS
The bright lights of Las Vegas are a long way from the plains of Mongolia, but in the last 70 years,
Mongolia has become a breeding ground for the world's top contortionists, who have performed
everywhere from Russia's Bolshoi Theater to the Monte Carlo International Festival.
While Mongolian contortion has some similarities to ancient folk dances and yoga poses, it was the
launch of the State Circus in the 1940s that saw it really take off as a professional art form. When
the contortion school's first official trainer, the now legendary Tsend-Ayush, began performing
across the country, she quickly inspired a generation of girls hoping to quite literally mold
themselves in her likeness.
―My homework was 300 push-ups a day,‖ said 29-year old Nomintuya Baasankhuu, former
contortionist and Arts Program director at the Arts Council of Mongolia. ―It was intense. But by
eight years old I could do most of the technical moves—I was considered a professional.‖
But for many youngsters in Mongolia, contortion is sees as more than simply a hobby—it's a golden
ticket to the world.
―Mongolian contortion is globally competitive—today many performers work for Cirque du Soleil and
other international circus companies,‖ said Baasankhuu, who also researched the history of
Mongolian contortion at the National University of Mongolia. ―That is why so many girls would like
to become contortionists and travel around world and make living from it.‖
Source: CNN
THE OVERLOOKED KHAAN
As competing researchers race to locate Chinggis Khaan's tomb, discoveries by German and
Mongolian archaeologists are shedding light on his son Ogodei's equally impressive accomplishments.
After Chinggis' death, a procession of slaves and warriors escorted the ruler's body, wrapped in a
white felt blanket, to its final resting place. Today expeditions with high-tech equipment are racing
to make the find. But virtually unbeknownst to the general public, German and Mongolian
archaeologists have made a sensational discovery 320 kilometers west of Ulaanbaatar, where they
have apparently found the remnants of the palace Ogodei Khaan built in the middle of the steppes.
Tragically for the researchers, hardly anyone has ever heard of Ogodei Khan.
Historians see the youngest son as an ingenious reformer. He introduced paper currency and even
established a postal system. But Ogodei's great accomplishment was building a city on the steppes
that could be used to administrate his ostensibly ungovernable kingdom of nomads. Geomagnetic
surveys have shown researchers that the northwest part of the city had no permanent buildings.
This was presumably an early sort of camping ground, where the Mongolian city-dwellers pitched
their tents. The tent residents were not driven to pursue a trade or work in the fields—two
activities that help develop a fledgling community. Instead, the nomads-turned-city-dwellers
transitioned into a leadership clique that surrounded the ruler of the city, Ogodei.
Experts now agree that Ogodei was at least as important as his father because it was Ogodei who
first succeeded in stabilizing this complex political entity by establishing a central administration.
Source: ABC News
RAINBOW COALITION: AUSTRALIA‟S COLORFUL CANDIDATES
Tony Abbot's Liberal-National coalition on 8 September won a commanding lower house majority,
ending six years of Labor party rule. However, the makeup of the senate is yet to be decided.
Senate votes take days, if not weeks, to tally, but early figures from the Australian Electoral
commission suggest that several new minority parties might hold the balance of power. In this case,
the Australian senate could look decidedly more colorful in July 2014, when the newly elected
senators would take their seats.
Glenn Lazarus, a Palmer United senate candidate, was nicknamed ―the brick with eyes‖ when he
played rugby, and once posed naked with only a brick to promote a brick company.

16. Clive Palmer, who started the Palmer United party, has himself claimed a seat in the House of
Representatives. He is the multimillionaire owner of coal, iron ore, and nickel assets, with plans to
build a working replica of the Titanic and put mechanical dinosaurs on a luxury golf resort.
David Leyonhjelm, a Liberal Democrat and former veterinarian, may get a seat by virtue of
appearing first on the ballot paper and thus winning the donkey vote, where voters fill in the
preferences from top to bottom, without regard to their actual inclination. He has campaigned
against Australia's heavy regulation of gun ownership.
Independent Nick Xenophon succeeded in registering as a party to achieve listing ―above the line‖
on the ballot paper. He took a goat into Australian Parliament on election day in 2006, to promote
his slogan: ―Don't 'kid' around on election day.‖
Ricky Muir, leader of the Australian Motoring Enthusiast party, was filmed taking part in a backyard
fight with friends using kangaroo droppings. The party lists ―mateship‖ and lower taxation as its
core values. He is not the only single-issue party out there: the Australian Sports Party could be
represented in the senate by Wayne Dropulich, a gridiron-playing engineer. The group focuses on
―helping Australian live a healthy well balanced lifestyle through sport and recreations.
Source: Financial Times
ANNOUNCEMENTS
UK ALUMNI ASSOCIATION LAUNCH EVENT AT KEMPINKSKI HOTEL, 19 SEPTEMBER
The UK Alumni Association in Mongolia will host a launch event at Kempinski Hotel Khan Palace in
Ulaanbaatar on Thursday, 19 September, from 5 to 8:30 pm. The visiting Lord Mayor of the City of
London will be a special guest for the event.
In addition to the mayor, speakers include Her Majesty‘s Ambassador to Mongolia Christopher
Charles Stuart and Bayan-Altai Luvsandorj, chairman of the board of the UK Alumni Association.
RSVP to attend the reception, please register to the UK Alumni Association in Mongolia by 16 Sep
2013 at ukalumni.mn@gmail.com (Tel: 9910 9887).
___________________________________________
JOB FAIR -2013: “START YOUR CAREER!“, 17-18 SEPTEMBER, ULAANBAATAR
The 6th ―Job Fair 2013‖ will take a place in ―BlueMon‖ building from 17 to 18 September 2013.The
main purposes of ―Job Fair 2013‖ is to evaluate current development of the Mongolian Job Market
and its prospective, determining supply and needs, promoting employers and in other hand
providing workplace to overseas graduates.
The ―Job Fair 2013‖ will be hosted by Mongolian-German Bridge in cooperation with the
Employment Information and Service Center of Mongolia, the Mongolian Employer‘s Federation, the
Mongolian Youth Federation and the Centre for International Migration and Development of Federal
Republic of Germany.
Over 30 well-known national and international companies, organizations, and joint ventures will
participate to offer attractive jobs with great career opportunities. About 500 middle-high level
positions will be offered.
___________________________________________
MINING MONGOLIA AND POWER AND RENEWABLE ENERGY MONGOLIA, 19-21 SEPTEMBER, UB
Mining Mongolia and Power and Renewable Energy Mongolia will be held from 19 to 21 September at
the Buyant-Ukhaa Sports Complex in Ulaanbaatar.
120 companies from 18 countries including pavilions from Australia, Canada, Korea and Germany
will display a wide range of technology, supplies and services for the mining and electric power
generation and transmission sector; on a scale never before seen in Mongolia. Inside and outside
displays, providing a first opportunity for buyers to see technology and learn about new mining and
electric engineering service from industry experts.
BCM is a supporting organization. Register at miningandconstructionmongolia.com or for priority

17. booking email mongolia@chinaallworld.com.
___________________________________________
TOP GOVERNMENT OFFICIALS TO ATTEND NAMBC INVESTORS CONFERENCE, 24-26 SEPTEMBER,
UB.
Minister of Environment and Green Development Sanjaasuren Oyun and Ulaanbaatar Mayor Erdene
Bat-Uul will be featured speakers at the North American Business Council's (NAMBC's) 16th Annual
Investors Conference, to be held from 24 to 26 September at the Kempinski Khan Palace Hotel in
Ulaanbaatar. Registration deadline is September 6
The investors conference will celebrate the 40th anniversary of Mongolia-Canada diplomatic
relations this year. Full simultaneous interpretation will be provided. This conference is the
longest-running international investors forum in or about Mongolia, held annually in Ulaanbaatar
since 1998.
Non-members from any country are welcome. For more information visit nambc.org. Find a
registration form here.
___________________________________________
MONGOLIAN MINING SUMMIT 2013, 29-31 OCTOBER, PERTH, AUSTRALIA
Mining IQ's Mongolian Mining Summit will be held at from 30 to 31 October at Crown Perth, Western
Australia, Australia.
The Mongolian Mining Summit is the perfect forum to bring together senior level executives from
Mongolia and Australia to further business relationships in the resources sector. Send your senior
executives to attend this summit to meet with CEOs, executive directors, MDs, VP, and GMs, and
heads of investment from Australian organizations interested in entering the Mongolian mining
industry.
Speakers include:
- Graeme Hancock, President and chief representative of Anglo American in Mongolia,
- Dr. Battsengel Gotov, Executive director and CEO of Mongolian Mining Corporation.
- Jim Dwyer, Executive director of the Business Council of Mongolia.
BCM is a supporting organization of this event. Register now and pay only AUD $999 for Mining and
Government Companies—register by 23 August 2013.
To register call +61 2 9229 1000 or email registration@iqpc.com.au.
___________________________________________
“DOING BUSINESS IN MONGOLIA” AND BUSINESS TOUR, 12-18 NOVEMBER, LONDON
The Business Council of Mongolia (www.bcmongolia.org) and the Mongolia-British Chamber of
Commerce with support of the Embassy of the Great Britain and Northern Ireland in Mongolia will
host a Mongolian Business Mission to "Doing Business in Mongolia" Workshop with UK, London based
investors and business tour in London, from 12 to 18 Nov 2013. The business tour programme will
include the visits to "Ideal home show at Christmas" Trade fair, UK Parliament House and some
major business institution and companies in the city of London
Benefits available to delegation members are:
- Matchmaking - B2B meeting with UK or UK based Investors at HQ of Anglo American.
- Assistance in arranging and scheduling appointments with UK exhibitors and companies before and
during the programme.
- Travel arrangements and hotel bookings
- Assistance with all logistics at the business and some London sightseeing programme
Please call BCM at 976-70114442 or e mail to erka@bcmongolia.org for registration or related
inquiries.
Registration deadline: 7 October, 2013.
___________________________________________

18. MONGOLIA INVESTMENT SUMMIT HONG KONG 2013, 18-20 NOVEMBER, HONG KONG
Bringing the best of Mongolia‘s investment opportunities to Asia‘s leading investment hub.
Featuring a line-up of Government representatives, business leaders and international investors, the
4th Annual Mongolia Investment Summit provides investors and companies seeking to do business in
Mongolia with a thorough update of Mongolia‘s investment and business climate and showcases its
actual investment opportunities. Key sectors covered include Mining and Mining Services,
Infrastructure, Energy, Financial Services, Retail, Real Estate, Construction and Agribusiness.
Mongolian companies and Mongolia-focused funds seeking to meet with investors and potential
business partners, should make attendance at Mongolia Investment Summit Hong Kong 2013 their
number one priority. Click here to download the latest brochure.
BCM is a supporting partner organization. BCM members will enjoy 15% discount; please quote
Priority Code 695BCM15D during registration.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAY, 19:05-19:15
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 19:05 to 19:15 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013
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
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ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟

19. On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available:
• Joshua Sunga, Internship Program Director, AIESEC- "Youth Leadership Decvelopment" 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
• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting
April 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
• S. Bold, Chief Economist, Central Bank, ―The current flow of investment into Mongolia‖, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• S. Javkhlanbaatar, Foreign Investment Regulations and Registration Department Head, Ministry of
Economic Development of Mongolia, ―About regulation on FDI‖, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• B. Amarsanaa, Academic Secretary of National Legal Institute, ―Legal issues of regulation of
foreign investment‖, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions"
conference on April 19, 2013 at the Kempinski Hotel.
• D. Gan-Ochir, Head of Financial Stability Council, Advisor to President of Central Bank,
―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• D. Achit-Erdene, CEO, MICC, ―On current state of equities foreign investment‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• 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 Neighbor‖ at the BCM monthly meeting, March 25, 2013
Other 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

20. Working Group meeting, March 14, 2013
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―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 – ―2013discussed 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.
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 1,352 fans on our Facebook fans page, 1,336 connections on LinkedIn network, and
745 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.

21. BCM RISK WORKING GROUP
The BCM Risk working group met on Tuesday, September 10, with 8 members attending.
Moderator: Ganzorig U, Mandal General Insurance, Co-chair of BCM`s Risk working group.
New member: Russell Mackenzie-Wave International was welcomed.
Meeting discussion was on the following topics:
- Macro economic risks in Mongolia and respective responses
- Entrepreneur risks in farm area.
Mandal General Insurance published its Purple Book. The Book is jointly written by independent
expert dedicated to decision makers. www.purplebook.mn in Mongolian/
Please contact; erka@bcmongolia.org
ECONOMIC INDICATORS

22. 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]
August 31, 2013 *9.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 8.4% y-o-y, Ulaanbaatar city, August 31, 2013
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50%[source: Mongol Bank]

23. CURRENCY RATES – SEPTEMBER 12, 2013
Currency Name Currency Rate
US dollar USD 1,717.29
Euro EUR 2,276.01
Japanese yen JPY 17.12
British pound GBP 2,700.52
Hong Kong dollar HKD 221.44
Chinese Yuan CNY 280.64
Russian Ruble RUB 52.18
South Korean won KRW 1.58
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.