- Mongolia's Commodities Exchange plans to partner with the Toronto Stock Exchange to receive technical assistance and training as it establishes a mineral exchange. - Mövenpick Hotels & Resorts announced new hotels in Mongolia, Turkey and Morocco, including a 250-room hotel in Ulaanbaatar slated to open in 2018. - A fire at a PetroChina oil tanker facility in Dornod Aimag, Mongolia killed two Chinese workers and hospitalized one Mongolian, halting operations at the site.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 316 – March 14, 2014
NEWS HIGHLIGHTS:
Business
 Rio apparently mulls Turquoise Hill buyout;
 MMC sees weakness ahead for coking coal prices;
 MMC reports profit growth amid financial losses for 2013;
 Denison could explore agreement with government for uranium assets;
 Wolf Petroleum poised to reveal initial oil estimate on SB Block;
 Kincora Copper to raise up to USD 4.5 million for exploration;
 Mongolia’s Commodities Exchange to partner with Toronto Stock Exchange;
 Slodych plans for new exports to China, Mongolia;
 Mövenpick Hotels & Resorts expands to Mongolia;
 Fire causes oil tanker to explode at PetroChina;
 Hunnu Air appoints APG as GSA in 17 countries;
 Transport Ministry inspects new buses for public transportation use;
 Mongolia named official partner country of 2015 ITB Berlin;
 The Miner & Supplier 2014 commences on March 13, 2014;
 Ulaanbaatar to host Asian Fashion Week;
 Mining Minister emphasizes cooperation at PDAC convention;
 State-backed Indian firms hope to buy foreign coal mines soon.
Economy
 Inflation at 12.2% year-over-year for February;
 Foreign trade balance deficit narrows;
 Government spending on the rise;
 Mongol Bank: FX auctions, 1-week bills, securities;
 Moody's: Outlook for Mongolia's banking system remains negative;
 Mongolia readies for USD 30 billion brown coal gasification plant;
 IMF warns against 'unsustainably loose' macroeconomic policies;
 Ulaanbaatar Railway expects 18% increase in cargo for 2014;
 Mining Ministry to develop new coal rubric;
 Taiwan greenlights sea buckthorn for production;
 Mongolia to back loans for upgraded tech in public transport;
 Chinggis Khan's secret weapon was rain;
 Copper slumps on worries over China's economy;
 Global miners dismiss iron ore price slump;
 Australia’s mineral tax falls far short of estimated revenue.
Politics
 Irregular session of Parliament scheduled for 24 March;
 Prime Minister delivers speech at FAO conference;
 Mongolia to introduce new immigration management system;
 President receives ambassadors' credentials;
 40th anniversary of Mongolian-Thailand diplomatic relations;
 World Bank country director to exit Mongolia;
 BCM chairman named as Young Global Leader;

2.  U.S. Ambassador and Mongolian officials meet with translators;
 Journalists receive investigative journalism training;
 Courts rule against MPP claim of ownership over Lenin Museum;
 Government cracks down on corporate tax evasion;
 Mayor introduces three-strike policy for city officials;
 Perth man, Paul Weeks, among the missing on Malaysian Airlines plane;
 Mongolian athlete takes 14th place in Paralympics.
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
Mongolian National Broadcasting Oxford Business Group
BUSINESS
RIO APPARENTLY MULLS TURQUOISE HILL BUYOUT
Canada has not been a happy hunting ground for mining giant Rio Tinto PLC. Investors must still
remember its disastrous GBP 23 billion (USD 38 billion) acquisition of aluminum giant Alcan in 2007,
a bruising top-of-the-market deal when Rio Tinto itself was under pressure from industry rivals to
either get bigger or be bought. It effectively led to the sacking of boss Tom Albanese, who made
way for Sam Walsh. He has bided his time before considering venturing back into the country, but
apparently is now lining up a bid for the outstanding 49.2 per cent stake in Vancouver-based
mineral exploration and development company Turquoise Hill Resources Ltd., formally known as
Ivanhoe Mines, it does not already own.
Up more than 10 percent in the previous two sessions amid growing speculation a deal could be on
the cards, Turquoise‘ shares advanced 0.13 per cent more to USD 4.09 on talk Rio is ready to
pounce with a cash offer of around USD 8 a share. Rio owns 50.8 percent of Turquoise, which holds

3. 66 percent of the huge Oyu Tolgoi copper and gold mine. Progress on the USD 5 billion second stage
of Oyu Tolgoi has been frozen because of Rio‘s inability to strike an agreement with the Mongolian
government. But sources now suggest a deal could be announced within the next few weeks and
could coincide with Rio swallowing the rest of Turquoise.
Billionaire entrepreneur Robert Friedland, a major player in the junior mining industry, holds 3
percent of Turquoise and has thus far been against selling out to Rio.
Source: Daily Mail
MMC SEES WEAKNESS AHEAD FOR COKING COAL PRICES
Oversupply will keep prices low, says Mongolian Mining Corp. (MMC), as the firm posts a USD 58.1
million annual loss.
MMC, the nation's largest miner of coking coal sold primarily to China, expects the steel smelting
ingredient's price to remain weak this year due to oversupply, although it has gained market share
from rivals by expanding processing and logistics operations.
"I don't expect prices to fall below current levels, but I don't see meaningful price gain either, until
demand and supply equilibrium is restored," Chief Executive Battsengel Gotov told a press
conference. He said prices of seaborne coking coal—mainly from Australia and Brazil—have been
trading around the USD 85 per ton mark since the start of the year. MMC's average selling price of
its mainstay product, hard coking coal, fell 15 percent last year to USD 92.10 a ton from USD 108.40
in 2012, owing to an estimated excess supply of over 30 million tons. The excess is expected to fall
to between 10 million and 15 million tons this year, helped partly by higher steel output in Europe
and the United States, Gotov said.
The mainland's steel production growth is expected to slow to 4 percent from 7.5 percent last year
as Beijing seeks to shift the economic growth driver from fixed-asset investment to consumption
and services, according to the China Iron and Steel Association. Mongolian Mining yesterday posted
a net loss of USD 58.1 million for last year, from USD 2.5 million in 2012 as finance costs almost
doubled to USD 95.1 million. Revenue fell 7.8 percent to USD 437.3 million as the 15 percent fall in
the average selling price offset a 26 percent jump in hard coking coal sales volume to 4.3 million
tons. The firm aims to sell 6 million tons this year.
Land-locked Mongolia's competitiveness is expected to be constrained until a government-built
railway is completed next year or later, while Australian miners ramp up output to lower per-ton
fixed costs.
Source: South China Morning Press
MMC REPORTS PROFIT GROWTH AMID FINANCIAL LOSSES FOR 2013
Mongolian Mining Corp. (MMC) reported a 40.3 percent profit growth for 2013 compared with the
year before, despite tough market conditions that saw shareholder losses 23 times greater in 2013
from the year before.
MMC‘s production increased to record levels of output in its mining, processing, transportation and
sales activities for the year ended 31 December 2013. Key highlights being that its total processed
run-of-mine coal volume reached 10.7 million tons representing an increase of 44.5 percent year-
on-year, and export of 4.3 million tons of washed hard coking coal products in 2013, up by 26.5
percent year-on-year.
MMC's revenue derived from total export sales of 5.7 million tons of coal products amounted to USD
437.3 million for the year ended 31 December 2013 compared with USD 474.5 the year before, due
to a 15 percent decrease in the average selling price of hard coking coal. Despite demanding market
conditions, the MMC demonstrated improved financial performance in 2013. Although prices for
hard coking coal sold decreased, MMC generated gross profit of USD 75.9 million, representing 40.3
percent growth year-on-year, as a result of actions taken to control costs and boost productivities.
The loss attributable to MMC's equity shareholders for the year ended 31 December 2013 was USD
58.1 million compared to a loss of USD 2.5 million for the year ended 31 December 2012. The basic
loss per share attributable to the equity shareholders of the company amounted to USD 1.57 cents
for the year ended 31 December 2013, as compared to basic loss per share of USD 0.07 cents for the

4. year ended 31 December 2012.
The major contributing factor toward MMC's net loss position, aside from decrease in prices was an
increase in its finance costs. Finance costs were a result of reductions in interest expenses,
negative change in the net fair value related to senior notes, and foreign exchange losses due to
depreciation of the Mongolian tugrug against the U.S. dollar, bringing total net finance cost to USD
85.5 million.
MMC's board of directors did not recommend dividend payments for the year.
Source: Mongolia Mining Corp.
DENISON COULD EXPLORE AGREEMENT WITH GOVERNMENT FOR URANIUM ASSETS
Denison Mines Corp. on 6 March said in its 2013 year-end results that it might be interested in
pursuing a strategic agreement with the Mongolian government for its uranium assets in the
country.
Denison's reported USD 550,000 for exploration at the Gurvan Saikhan joint venture with the
Mongolian government in 2013 compared with USD 3.156 million for 2012. Denison curtailed
exploration activities in 2013 so it could focus on completing the field programs and studies
necessary to convert its exploration licenses to mining licenses. In addition, the company has
started exploring strategic alternatives regarding its ownership interest in Gurvan Saikhan.
Denison has 85 percent interest in Gurvan Saikhan, with state-owned Mon-Atom LLC holding the
remaining 15 percent interest.
Source: Denison Mines Corp.
WOLF PETROLEUM POISED TO REVEAL INITIAL OIL ESTIMATE ON SB BLOCK
Wolf Petroleum Ltd. is preparing to divulge an initial oil estimate on its SB Block.
The block is in a proven and producing region, and covers 23,000 square kilometers, and is one of
the first identified petroleum blocks in Mongolia. Around 60 percent, or 12,000 square kilometers of
the block, is interpreted as Cretaceous in age with a high potential for oil source reservoir rocks at
depth. Wolf is looking for farm-in opportunities. In total Wolf has interests in over 74,000 square
kilometers in Mongolia, which equates to over 18 million acres.
Source: Proactive Investors
KINCORA COPPER TO RAISE UP TO USD 4.5 MILLION FOR EXPLORATION
Kincora Copper Ltd. is raising CAD 5 million (USD 4.5 million) to fund exploration work at its flagship
Bronze Fox copper project.
Kincora is issuing 100 million units, comprising one new share and one share warrant, priced at CAD
0.05 per unit, via a non-brokered private placing. Warrants will be exercisable for two years at CAD
0.105.
Last month, Kincora revealed highly encouraging results at Bronze Fox, which is situated
approximately 250 kilometers from the Chinese border and about 1 40 kilometers northeast of Rio
Tinto PLC's Oyu Tolgoi.
Investors participating in the placement will have a four month ―hold period.‖
Source: Proactive Investors
MONGOLIA‟S COMMODITIES EXCHANGE TO PARTNER WITH TORONTO STOCK EXCHANGE
Minister of Mining Davaajav Gankhuyag negotiated with a Toronto Stock Exchange (TSX) official last
week for a partnership for Mongolia's proposed minerals exchange for the local bourse.
Gankhuyag met with the TSX senior vice president, Ungad Chadda, while in Toronto to lead a
delegation at the 2014 Prospectors & Developers Association of Canada (PDAC) International
Convention last week. Chadda agreed to establish a memorandum of understanding to support the
planned mineral exchange in Mongolia's stock market. The agreement would see the TSX offer
Mongolia technical assistance and train the Mongolian staff.
―Mongolia created a long term understandable and sustainable environment in its mining sector; we
offer to our investors great opportunity to take part in enduring state, flourishing economy with

5. stable legal frameworks,‖ said Davaajav to an audience during PDAC.
Source: Info Mongolia
SLODYCH PLANS FOR NEW EXPORTS TO CHINA, MONGOLIA
Slodych Confectionery Factory JSC plans to launch the exports of its food products to Mongolia and
China.
Expanded exports are among the company‘s top priorities to fund the modernization of its facilities.
Slodych has boosted exports to its traditional markets and introduced its products to the five new
markets of Latvia, Azerbaijan, Tajikistan, Lebanon and Vietnam. This year the factory started
exporting to Serbia, with future plans to begin shipping to China and Mongolia.
In all, Slodych sells to 12 markets, with the largest being Russia, Kazakhstan, Germany, the USA,
and Ukraine.
Source: Belarusian Telegraph Agency
MÖVENPICK HOTELS & RESORTS EXPANDS TO MONGOLIA
Mövenpick Hotels & Resorts has announced new hotels in Mongolia, Turkey and Morocco.
Mövenpick announced it is to manage a new hotel in the capital of Mongolia from 2018. The
Ulaanbaatar hotel will have 250 rooms and 124 residences based in the upmarket area of
Bayanzurkh District, just 3.5 kilometers from the historic center of Sukhbaatar Square.
"Considered organic growth has become a hallmark of Mövenpick Hotels & Resorts and these
stunning new projects illustrate this philosophy perfectly," said the company's president and chief
executive officer, Jean Gabriel Pérès.
Source: Mövenpick Hotels & Resorts
FIRE CAUSES OIL TANKER TO EXPLODE AT PETROCHINA
A fire that broke out at the at Matad Soum, Dornod Aimag facilities of PetroChina Daqing Tamsag
has suspended operations there, reported The National Emergency Management Agency (NEMA) and
the Petroleum Authority Tuesday.
Two Chinese workers were killed and a 40-year old driver on Petro China's staff was put in a
hospital in China because of the fire, which took place 20:48 on Monday while oil was being pumped
for shipping. At the scene of the fire were 10 vehicles arrived for the sixth shift for oil export from
the Toson Uul XIX oil field. One of the 10 vehicles caught fire and exploded, destroying 8 other
vehicles.
The fire was extinguished at around 02:30 the next day, but the situation at the site was still
reportedly needing emergency management. Further damage was reportedly averted after the shift
operator shut off the shipping pump to prevent oil from leaking. Officials said that the fire was
contained before it could spread any further through to nearby buildings.
Source: News.mn
HUNNU AIR APPOINTS APG AS GSA IN 17 COUNTRIES
Mongolia‘s Hunnu Air has appointed APG Network as its general service administrator (GSA) in 17
countries in Europe, North America and the Far East (Belgium & Luxembourg, Canada, Czech Rep &
Slovakia, Denmark, France, Germany, Italy, Netherlands, Norway, Philippines, Russia, Spain,
Sweden, Switzerland, Turkey, UK and USA).
APG will be providing full sales and marketing services as well as call center and ticketing facilities.
Hunnu Air has also signed up for APG‘s IBCS program which offers airlines pay-as-you-go access to
BSPs. The program is now used by over 160 airlines.
Hunnu Air‘s international network will be augmented by a new twice-weekly service to Paris CDG
which is due to commence in June 2014. A further new route to Singapore, scheduled for 2015, will
coincide with delivery of Hunnu Air‘s first Airbus A330-200.
Source: AsiaTravelTips.com

6. TRANSPORT MINISTRY INSPECTS NEW BUSES FOR PUBLIC TRANSPORTATION USE
Atibus LLC introduced its new line of passenger vehicles to the Road and Transportation Ministry.
Atibus presented 10 new vehicles able to service trips from Ulaanbaatar to distant provinces and
one vehicle for travel between cities in Mongolia and China. The inter-city vehicle sits 53
passengers and comes equipped with a television, toilets, heating and air condition, in addition to
GPS.
Mongolia has exempted large buses from value-added and custom taxes to encourage the import of
safer vehicles for public transportation.
Separately, bus drivers who drive routes between Erdenet and Ulaanbaatar have declared a strike
against their employers.
Source: Undesnii Shuudan
MONGOLIA NAMED OFFICIAL PARTNER COUNTRY OF 2015 ITB BERLIN
Mongolia on 5 March agreed to be the official partner country of ITB Berlin next year.
―In its role as the Partner Country of ITB Berlin 2015 Mongolia will be sending out a clear signal as
an emergent tourism destination,‖ said Christian Göke, chief executive officer of Messe Berlin. ―We
are confident that Mongolia with its wealth of cultural and natural attractions and its eventful
history will successfully present itself to the international market and that it will attract keen
interest from both trade visitors and the general public.‖
Altangerel Purev, state secretary at the Ministry of Culture, Sports and Tourism of Mongolia, and
Göke both signed the agreement for the partnership.
Source: 4 Hoteliers
THE MINER & SUPPLIER 2014 COMMENCES ON MARCH 13, 2014
The fourth annual Miner & Supplier Conference and Exhibition is held at the Chinggis Khaan Hotel in
Ulaanbaatar on 13 and 14 March.
This year‘s event has the slogan "Let's Move to the New Stage of Development," and focuses on
expanding the use of environmentally friendly technology and increasing business coordination
between mine suppliers and mine managers. Organizing this year's event are the Ministry of
Economic Development and the Mongolian Mining Exchange.
Source: Info Mongolia
ULAANBAATAR TO HOST ASIAN FASHION WEEK
Ulaanbaatar will host the 2014 Asian Fashion Week from 15 to 18 August.
The event will gather fashion designers and models from 30 Asian countries, including Bhutan,
Brunei, Cambodia and China. Countries such as Georgia, Australia and Switzerland will be
represented at the events by some of their best designers.
The first stage for the selection of Mongolian models is currently underway at the Citi Institute.
Source: Montsame
MINING MINISTER EMPHASIZES COOPERATION AT PDAC CONVENTION
Mining Minister Davaajav Gankhuyag warmly welcomed foreign investment at Mongolia@PDAC
conference in Toronto on 4 March, promising that Mongolia would ―never repeat‖ its mistakes.
The minister noted that ―discrepancies‖ in laws would be addressed by Parliament and that
Mongolia‘s goal was to offer investors ―firm sustainability of politics, economics and legal
environment.‖ The Minister candidly admitted Mongolia had made mistakes that impacted foreign
investment in the past but that it would "never repeat" them.
Gankhuayg also said that the moratorium on new mining exploration licenses, first imposed in June
2010, might end as a result of the Minerals Law amendments and other legislation to be taken up
during the spring session of Parliament. He also mentioned the so-called ―Long Name Law‖ that
bans mining at areas near rivers and forests, saying resolution may be forthcoming, but did not
directly address the issue of the 106 exploration licenses annulled last year as part of an
investigation into corruption at the Mineral Resources Authority of Mongolia (MRAM).

7. When asked about Oyu Tolgoi LLC, the Minister several times said that all matters regarding the
copper-gold mine would be resolved by its board of directors, which includes three Mongolian
directors, without involvement by the Cabinet or Parliament.
Source: NAMBC
STATE-BACKED INDIAN FIRMS HOPE TO BUY FOREIGN COAL MINES SOON
A consortium led by Steel Authority of India Ltd. (SAIL), which in 2012 signed a memorandum of
understanding in Ulaanbaatar to study possibilities for downstream iron ore production, hopes to
buy coal mines overseas in the next few months when it has completed due diligence on facilities in
Indonesia, Mozambique and the United States.
Most steel producers in India, the world's number-three coal importer, depend on overseas coal
shipments and have been trying to buy mines in Africa and Europe. SAIL is India's second largest
steel producer, and third-largest steel maker JSW Steel Ltd has already bought U.S. mines that
produce the coal used in steelmaking. Some other private companies have also acquired mines in
Australia. India's demand for steel making coal is expected to triple by 2020-21, with about 90
percent of that coming from abroad.
"We're doing due diligence in three to four geographies such as Indonesia, Mozambique and the
United States," said Ajay Mathur, chief executive of International Coal Ventures Ltd., the
consortium led by SAIL.
Mozambique is logistically quite well suited for India, Mathur told reporters on the sidelines of a
conference in the state of Goa. "Whatever has come out of Vale and Rio's (operations) from
Mozambique looks to be of good quality," he said, referring to the commodity giants' mines in the
African nation. Mathur declined to say by when or where a deal would be sealed. When asked
whether the group was close to buying coal assets in Poland as earlier reported by media, C. S.
Verma, chairperson of SAIL and ICVL, said "yes,‖ and that a deal should appear ―in the next few
months.‖
Separately, Verma said SAIL would raise coal imports by 6 million tons to 18 million tons in the next
two and a half years as it boosts its steel making capacity to 24-million tons from 17.5-million tons.
Ahmed Firoz, an economist with India's Ministry of Steel, said public-private partnerships were very
important in ensuring sufficient coal was available in India, whose imports according to research
firm OreTeam rose 21 percent to 152-million tons last year.
Source: Mining Weekly
ECONOMY
INFLATION AT 12.2 % NATIONWIDE YEAR-OVER-YEAR FOR FEBRUARY
The National Statistical Office reported inflation year-over-year at the end of February of 12.2%
nationwide and 12.0% in Ulaanbaatar.
Inflation rose 0.9 percent inflation in February from January and was driven by price growth in food
products and beverages. Inflation in Ulaanbaatar fell from 1.2 percent to 1 percent the year before,
partly due to growth in meat prices of 45 percent this year compared with 73.2 percent the year
before, said E. Erdenesan, deputy head of the macroeconomic statistics department.
The average monthly family income increased 14 percent to MNT 893,500 in February year-on-year.
Source: Zuunii Medee
FOREIGN TRADE BALANCE DEFICIT NARROWS
Mongolia traded with 92 countries for total external trade turnover of USD 1,208.5 million in the
first two months of 2014, reported the Bank of Mongolia.
Exports made up USD 594.6 million while imports were USD 613.9 million, with a foreign trade
balance deficit of USD 305.1 million. The balance of payments was in deficit of USD 19.3 million in
the year up to March.
Compared to same period of the previous year, the deficit fell 93.7 percent by USD 285.8 million.

8. Total external trade turnover fell 8.3 percent by USD 108.8 million, and imports were down 24.3
percent by USD 197.3 million, while exports grew by USD 88.5 million or 17.5 percent, compared to
the same period of the previous year.
Source: Montsame
GOVERNMENT SPENDING ON THE RISE
Government revenue totaled 709.4 billion for the first two months of 2014.
Total expenditure and net lending was MNT 799.7 billion, representing a deficit of MNT 90.4 billion.
Tax revenue grew 1.6 percent by MNT 10.1 billion from the same period in 2013, which has been
attributed to a 32.4 percent increase by MNT 16.1 billion in additional tax revenue from social
security and tax on foreign trade. Income tax collected fell 11.8 percent by 21.8 billion.
Total expenditure and net lending by the government grew 30 percent by MNT 184.4 billion to MNT
799.7 billion in the year to March, compared with the same period from the year before. Capital
expenditure grew 4.7 times by MNT 83.1 billion from the year before, subsidies and account
transfers grew 22.6 percent by MNT 63.9 billion, spending on goods and services grew 8 percent by
24.7 billion, and interest payments grew 3.2 times by MNT 21.7 billion. Lending minus repayments,
however, fell by MNT 9 billion.
Source: Montsame
MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS, SECURITIES
The Bank of Mongolia on 11 March sold USD 5.6 million at auction for a closing rate of MNT 1,778
and CNY 4 million for rate of MNT 289.55. Total bid offers to the central bank were USD 29 million
and CNY 26.5 million. On the same day, the Bank of Mongolia received an equivalent of USD 36.5
million from currency swap transactions with local banks.
On 13 March the central bank rejected bid offers of USD 20 million and CNY 26 million from local
commercial banks, as well as requests for USD 4.9 million and CNY 3.6 million. On the same day,
the central bank received an equivalent of USD 70.3 million from currency swap transactions.
Also on 13 March, the central bank auctioned one-week bills worth MNT 297.4 billion at a weighted
interest rate of 10.5 percent a year.
Source: Bank of Mongolia
MOODY'S: OUTLOOK FOR MONGOLIA'S BANKING SYSTEM REMAINS NEGATIVE
Moody's Investors Service said that the outlook on the Mongolia banking system remains negative,
reflecting the expectation of continued weakness in Mongolia's key commodity exports, namely coal
and copper, which account for 88 percent of its exports and 20 percent of its gross domestic
product (GDP).
"While oversupply and weak global prices in the steel and coal sectors constitute a primary and
external pressure point, our outlook also takes into account the Mongolian government's aggressive
macroeconomic measures to support the economy against the resultant growth headwinds," says
Hyun Hee Park, a Moody's analyst.
Current cyclical headwinds have exacerbated the system's vulnerability. The liquidity and capital
conditions of Mongolian banks have continued to tighten—despite liquidity injections by the Bank of
Mongolia in 2013—as loan growth has exceeded both growth in deposits and expansion in internal
capital sources. The foreign currency loan-to-deposit ratio jumped to a record high of 112 percent
in late 2013. In a system where foreign currency deposits account for 23 percent of total deposits,
this development highlights the risks faced by the system, especially in the context of a sharp
depreciation in the tugrug.
Yet, the banks are also vulnerable to potential changes in economic policy, given the instrumental
role that the Bank of Mongolia has played in the past year to support both the banks and economy.
If the central bank withdraws from its current policy lending role, it will leave a re-financing gap
equivalent to as much as 22 percent of banking system liabilities as of end-2013. The Source
expects the government to support deposits at those banks considered to be of high systemic
importance to the economy. However, potential government support to bank non-deposit creditors

9. is less predictable given the experience of bank resolutions in Mongolia.
The negative outlook on the banking system is in contrast to Mongolia's stable sovereign outlook.
The sovereign outlook places more emphasis on the country's strong growth potential and its
abundant mineral resources, despite Moody's negative outlook for the banking system.
Source: Moody's Investors Services
MONGOLIA READIES FOR USD 30 BILLION BROWN COAL GASIFICATION PLANT
The Cabinet of Ministers has established a working group at the Mining Ministry for the
establishment of a coal to liquid (CTL) fuel plant expected for commissioning in 2018.
The construction of four production plants with the capacity to produce 16 billion cubic meters of
gasoline [Source does not specify over what period] will require USD 30 billion. The government
ordered that a feasibility study be ready by September, which would be followed by negotiations
between China and Mongolia. Construction is planned to begin in 2015 and complete in 2018.
Project preparation and building will require a temporary workforce of 40,000, and the plant is
expected to provide 10,000 permanent positions. Training must begin soon, ordered the Cabinet.
Prime Minister Norov Altankhuyag signed a Memorandum of Understanding between Mongolia's
Mining Ministry and Sinopec Corp. while visiting China in October 2013 for the gasification of brown
coal (lignite) produced from mines in Mongolia. Mongolia's plans are to have the liquefied fuel
transported to China via pipelines from Ulaanbaatar.
The government intends to increase domestic production with the plant and also cut down on air
pollution. The process of coal gasification was first introduced in the United States. China currently
has one plant operational and 12 complexes under construction.
Source: Zuunii Medee
IMF WARNS AGAINST 'UNSUSTAINABLY LOOSE' MACROECONOMIC POLICIES
Mongolia has made impressive progress in developing its economy over the past decade but has
serious issues to address to maintain the trajectory, said the International Monetary Fund (IMF) in
its latest country report.
―Medium-term prospects remain promising given Mongolia‘s large natural resource endowment,‖
said the Source, ―but macroeconomic policies have become unsustainably loose. The resulting
balance of payments (BOP) pressures have been compounded by negative shocks to FDI [foreign
direct investment] and coal exports. While the Source reported expected growth of 12 percent in
2013 and 9.5 percent in 2014, it noted uncertain external environment. While international reserves
remain adequate, the government has done so through external borrowing. Declining net
international reserves this year is not sustainable.
―Securing sustainable growth while addressing macroeconomic risks requires a package of fiscal
adjustment, unwinding of the monetary stimulus provided this year, and continued exchange rate
flexibility,‖ reads the Source. ―Banking sector vulnerabilities and weaknesses in the business
climate also need to be addressed.
The Source lauded the steps taken to tighten fiscal policy at the end of last year, but warned that
continued off-budget spending by the Development Bank of Mongolia put the overall fiscal deficit in
2013 likely at 10 percent of GDP. ―Implementation of the Fiscal Stability Law (FSL) is an urgent
priority,‖ reads the Source.
One point of weakness was a housing ownership and construction incentive program that the Source
says should be phased out. The government's Price Stabilization Program, which introduced the
government-backed mortgage program and injected cash into the construction industry, ―distorts
markets,‖ it warned, ―and is bound to ratchet up inflation.‖ The source also recommended that the
central bank not intervene on the depreciating tugrug, and continue its efforts to try and ease
access for foreign investment in the country.
Read the full report here.
Source: International Monetary Fund

10. ULAANBAATAR RAILWAY EXPECTS 18% INCREASE IN CARGO FOR 2014
Ulaanbaatar Railway JSC reported an expectation of up to 23 million tons of cargo this year at a
annual meeting of rail officials from around the region held in Ulaanbaatar this year.
Representatives from Mongolia, China, Russia, North Korea and Vietnam met last week, where they
decided on the likely volume of rail freight for each country. Ulaanbaatar Railway shareholders said
they would likely see 13 million tons of export-import cargo, 2.2 million tons of transit cargo, and
six to 7.8 tons of in-country cargo shipped. Realized exports shipped would grow 2.7 million tons
and transit cargo by 760,000 ton from 2013.
Ulaanbaatar Railway has launched a USD 256 million project aimed to increase rail capacity by 60
percent that is expected to complete in 2015. The added capacity would allow for the transport of
an additional 30 million ton of cargo, which would allow Mongolia to reduce transportation fees,
better manage shipment arrivals, and provide a one-stop service office, said Y. Manlaibayar, head
of the Railway and Sea Transportation Department at the Ministry of Roads and Transportation.
Source: Unuudur
MINING MINISTRY TO DEVELOP NEW COAL RUBRIC
A working group within the Ministry of Mining is working to develop new standards for coal
classification.
―Mongolia needs its own national classification for setting coal prices,‖ said adviser to the Mining
Minister D. Bat-Erdene. ―Tax and customs organizations had problems because they did not have
national classifications. Payments for current mineral reserves are calculated based on a price that
includes Chinese VAT and transportation cost, which is causing a burden to coal exporters.‖
The new system would better align with international standards and replace the existing
classification rubric that was first introduced in the Soviet era, said Bat-Erdene. The working group
has so far divided coal into the classifications of raw coal, which includes anthracite, stone coal and
brown coal (lignite), and downstream coal, which would include coking coal, semi coking coal,
weak coking coal and thermal coal, he said.
Source: Unuudur
TAIWAN GREENLIGHTS SEA BUCKTHORN FOR PRODUCTION
Taiwan has approved oil extracted from sea buckthorn grown in Uvs Aimag for international sale.
Last year Uvs' governor signed a cooperation agreement for production using locally grown sea
buckthorn and timber.
Source: Zuunii Medee
MONGOLIA TO BACK LOANS FOR UPGRADED TECH IN PUBLIC TRANSPORT
The government has promised to guarantee MNT 13.3 billion in loans from Trade and Development
Bank of Mongolia LLC for the introduction of technology such GPS and online payment to public
transportation services.
The project will be led by the information technology, postal service and communication
departments of the state government, in partnership with Slide Co. and 24 public transportation
companies with a sum total 1,000 large and 700 small buses. The government provides MNT 50
billion annually to those 24 companies to subsidize free transportation for senior citizens, students,
military and the disabled.
The new system would allow individuals to register passengers and obtain reduced fees. The
government plans to make bus schedules available on mobile phones and at bus stops, as well as
provide the option for online payment.
Source: Undesnii Shuudan
CHINGGIS KHAN'S SECRET WEAPON WAS RAIN
Some 800 years ago, ancestors of modern Mongolians conquered the world on horseback. A period
of unusually mild weather may have helped propel them by making them rich in livestock.
New research by a team of tree-ring scientists from Columbia University's Lamont-Doherty Earth

11. Observatory may have uncovered the reason why an obscure band of nomadic Mongol horsemen
were able to sweep through much of Asia in a few meteoric decades 800 years ago: They enjoyed
an unprecedented, and yet-to-be-repeated, 15-year run of bountiful rains and mild weather on the
normally cold and arid steppes. By sampling tree rings in the gnarled and twisted Siberian pines in
the Khangai Mountains in central Mongolia, the team pieced together a chronology of local climatic
conditions stretching between 900 A.D. to the present. The study, published in this week's
Proceedings of the National Academy of Sciences, offers a new interpretation of why the Mongols
suddenly went on the move.
"What makes our new record distinctive is that we can see 15 straight years of above-average
moisture," says the study's lead author, Neil Pedersen, a tree-ring scientist with the Lamond-
Doherty Earth Observatory. "It falls during an important period in Mongol history and is singular in
terms of persistently wet conditions."
The climate chronology compiled by the Lamont-Doherty team reveals that the dawn of the 21st
century has seen some of the hottest weather and most severe droughts in centuries—hotter and
drier than even the severe drought years of the 1180s and 1190s. It also suggests that climate may
play a role in a modern Mongol invasion—from the arid steppes to the crowded cities. The recent
drought years have followed a string of fairly wet years toward the end of the 20th century. That's a
double whammy, says Pedersen, since the relative abundance of rainfall in the 1990s could have
made herdsmen less prepared for the harsh conditions of a severe drought. The hard years, coupled
with sweeping changes in Mongolia's post-communist society, have sparked a mass exodus from the
steppes into the country's capital, Ulaanbataar, where roughly half of Mongolia's 3-million-strong
population now lives.
Source: National Geographic
COPPER SLUMPS ON WORRIES OVER CHINA'S ECONOMY
The price of copper Monday slumped to its lowest level in more than eight months as concerns
mounted about demand from top consumer China.
Three-month copper on the London Metal Exchange fell to its lowest price since June 2013, trading
at USD 6,608 per metric ton. It is down 10 percent in 2014. The red metal, which had been shaken
Friday by the first default in China's corporate-bond market, fell further after an industry report
showed Chinese manufacturing-sector activity fell to a seven-month low.
Any uncertainty about Chinese economic growth could potentially weigh on demand for copper.
There are also concerns that many Chinese companies are turning to a risky type of funding which
involves importing copper and using it as collateral for bank loans. If the price of copper falls,
borrowers will be forced to dump the metal to help cover losses. China accounts for 40 percent of
the world's global consumption of copper and is the main buyer of Mongolian copper ore from Oyu
Tolgoi.
The high levels of copper imports in the first two months of the year have raised worries about a
supply overhang. Data over the weekend showed China's copper and copper-product imports rose
27.5 percent in February from a year earlier, to 380,000 tons, but were down 29 percent from
January. Copper financing activity has put a "cloud" over the total supply overhang at the moment,
Australia & New Zealand Banking Group said in a report. However, imports could still hover above
the levels seen in the first six months of 2013 in the next month or two, as Chinese buyers likely
booked more term imports this year and financing demand is still alive, just weaker, according to
Sijin Cheng, an analyst with Barclays. She expects copper prices to be under pressure in the short
term.
Daniel Belchers, commodities fund manager at Threadneedle Investments, said he has been
"increasingly worried" about the price of copper. He said his firm has been reducing its copper
holdings since the start of the year, and that if copper's current move continues, they could reduce
holdings further.
Source: Wall Street Journal

12. GLOBAL MINERS DISMISS IRON ORE PRICE SLUMP
BHP Billiton Ltd. and Rio Tinto PLC have dismissed concerns over slowing demand for steel from
China and a slump in iron ore prices as temporary, saying they anticipate continued strong steel
demand growth over the next 10 years.
―Our view that Chinese crude steel production is expected to peak at 1.1 billion tons, around 2025,
is unchanged,‖ Jimmy Wilson, BHP‘s iron ore president, said on Tuesday. ―We remain confident that
global demand for iron ore will continue to grow, though at a more moderate rate, driven by
urbanization and industrialization.‖
Rio described the sharp price fall this week as ―short-term volatility‖.
The upbeat message from BHP, the world‘s largest mining company by market capitalization, and
rival Rio came as iron ore prices hit an 18-month low on Monday, wiping billions of dollars off the
market value of the world‘s biggest mining companies. Benchmark iron ore delivered into China
sank 8.3 percent to USD 104.70 a ton on Monday—the second-biggest one-day percentage fall on
record—according to the Steel Index price reporting agency. On Tuesday, iron ore futures were up
0.8 percent.
Wilson told a conference in Perth that prices were likely to fall as growth in the supply of iron ore
exceeded demand over the next five years, but that they would then come back up and stabilize.
Rio Tinto also downplayed the slump in iron ore prices, saying it was the lowest unit cost producer
in the Pilbara region of Western Australia in 2013 with a cost of USD 20.80 per ton.
Nevertheless, Citi Research sounded a bearish note on iron ore: ―The dramatic fall in prices came
despite CISA reporting steel production for the last 10 days of February at by far the highest level so
far this year,‖ said Citi analysts in a note. ―This brings into serious question the ability of higher
steel production to stabilize prices in the face of rising Australian exports during a mild cyclone
season.‖
Source: Financial Times
AUSTRALIA‟S MINERAL TAX FALLS FAR SHORT OF ESTIMATED REVENUE
Momentum continues to gather for the repeal of Australia‘s Mineral Resource Rent Tax as revenue
falls far short of estimates. Australia is a direct competitor with Mongolia for coal exports to China.
An analysis by the Weekend Australian newspaper has determined that Australia‘s Mineral Resource
Rent Tax (MRRT) has raised only AUD 232 million (USD 207.78 million) this financial year, down
substantially from the AUD 4 billion originally forecast. Although Rio Tinto PLC, BHP Billiton Ltd.
and Fortescue Metals Group posted combined profits of more than USD 14 billion, The Weekend
Australian noted that ―BHP was the only big iron ore miner to pay the minerals resources rent tax in
the six months to December 31.‖
The analysis by the newspapers showed earnings from Rio Tinto‘s iron ore operations increased 80
percent to USD 6.38 billion in the first half of the 2013-2014 fiscal year, yet Rio did not pay any
MRRT. The Weekend Australian also estimated that Fortescue almost tripled its iron ore profits to
USD 1.7 billion, ―but still did not pay any MRRT.‖
Source: Mine Web
POLITICS
IRREGULAR SESSION OF PARLIAMENT SCHEDULED FOR 24 MARCH
Parliament has approved an initiative to convene for an irregular session on 24 March.
Parliament is expected to discuss the 2014 budget, the agenda for the spring session of Parliament,
and results from the audits of frozen construction projects included in the 2014 budget. The audits
are reportedly a top priority for law makers. Funding was frozen to these projects so Parliament
could reassess spending in the 2014 budget. The agenda is also important because parliamentarians
did not make time to discuss the agenda within their parties before the close of the fall session.
The regular spring session could start as early as 5 April, reported the Source.
Source: Montsame

13. PRIME MINISTER DELIVERS SPEECH AT FAO CONFERENCE
Prime Minister Norov Altankhuyag spoke of the contributions Mongolia could make toward the global
food supply in a speech 10 March on the third day of the 32nd session of the FAO Regional
Conference for Asia and the Pacific in Ulaanbaatar.
―[Countries] see us as a country based on mining, with high economic growth, but Mongolia has the
great opportunity to reach high development with its agriculture, including through animal
husbandry," he said to an audience of representatives of agriculture, forestry and fisheries from 40
countries in the Pacific region.
Altankhuyag said Mongolia could help provide food around the world ―through its 43 million heads of
livestock.‖ He added, "A combination of our thousand-year-old traditional methods of raising
livestock and modern technologies can make Mongolia a model exporter for the world reserve of
organic foods.‖
Source: Montsame
MONGOLIA TO INTRODUCE NEW IMMIGRATION MANAGEMENT SYSTEM
The Immigration Agency of Mongolia has partnered with the Korean International Cooperation
Agency (KOICA) for reforms in immigration management on Wednesday.
The project aims to introduce an online system to regulate citizenship and migration matters in
2016. Funded by KOICA, the project would enable the accurate monitoring of migration, provide
better protection of the rights of Mongolians living abroad and provide them with legal assistance.
The project will also include the creation of a database for supervision over foreign nationals,
international organizations, and foreign invested companies in Mongolia.
The database will be used for registration at Mongolia's border points.
Source: Montsame
PRESIDENT RECEIVES AMBASSADORS' CREDENTIALS
The non-residential ambassadors of Sudan and Finland to Mongolia presented their diplomatic
credentials to President Tsakhia Elbegdorj 13 March.
Sudanese Ambassador Omer Eiza Ahmed told the president that by the end of last year the fourth
contingency of Mongolian troops were serving in the peacekeeping mission in Darfur.
Finnish Ambassador Jari Gustafsson said he would do his best to widen the friendly relations
between Mongolia and Finland within his office term. The president noted that last year marked the
50th anniversary of diplomatic relations and that their countries were cooperating in reforming
Mongolia's courts system.
Mongolia established diplomatic relations with Sudan on 7 July 1970 and with Finland on 15 July
1963.
Source: Montsame
40TH ANNIVERSARY OF MONGOLIAN-THAILAND DIPLOMATIC RELATIONS
Officials from Mongolia and Thailand's Foreign Affairs ministries observed the 40th anniversary of
diplomatic relations between their two nations 10 March.
―Mongolian-Thailand diplomatic relations and cooperation have widened in various fields in the past
40 years and mutual high level visits were successfully conducted. Moreover, opportunities to boost
cooperation on mining, tourism and culture have been found,‖ said Foreign Minister Luvsanvadan
Bold.
Also in attendance were senior state officials, representatives of the diplomatic corps in
Ulaanbaatar, U.N. representative officials, senior officials of the Mongolian-Thai Friendship
Association and the honorary consul from the Kingdom of Thailand in Mongolia. Thai Ambassador
Wiboon Khusakul recalled that Princess Maha Chakri Sirindhorn twice visited Mongolia, contributing
to the prominent efforts to grow bilateral relations and cooperation between Mongolia and
Thailand.
Source: News.mn

14. WORLD BANK COUNTRY DIRECTOR TO EXIT MONGOLIA
Coralie Gevers next month is due to step down as country director of the World Bank to Mongolia.
Gevers, who has had a 20-year career with the World Bank, finishes her term April to move on to
her next assignment in Madagascar after three years in her position. During her role with the bank,
she oversaw the disbursement of USD 115 million in loans and financial assistance, and the
implementation of projects for renewable energy and education in rural Mongolia, as well as
sustainable mineral resource consumption.
Gevers in 2011 replaced Arshad Sayed, who currently serves as president of Peabody Energy's Corp.'s
Mongolia operations.
Source: Unuudur
BCM CHAIRMAN NAMED AS YOUNG GLOBAL LEADER
The Forum of Young Global Leaders named two Mongolians on this year's roster: Business Council of
Mongolia (BCM) Chairman and Nova Terra LLC Managing Partner Bayanjargal Byambasaikhan, and
Shunkhlai Group President and Director of Strategic Planning Ganzorig Vanchig.
Young Global Leaders come from 66 countries across seven regions, and equally represent the
public and private sector. The Forum of Young Global Leaders is a multi-stakeholder community of
more than 900 young leaders.
―Bold, brave, action-oriented and entrepreneurial, these individuals commit both their time and
talent to make the world a better place,‖ said the Source. ―They have committed their energy and
knowledge to the most critical issues facing humankind. The community is made up of leaders from
all walks of life, from every region of the world and every stakeholder group in society.‖
Source: Forum of Young Global Leaders
U.S. AMBASSADOR AND MONGOLIAN OFFICIALS MEET WITH TRANSLATORS
U.S. Ambassador to Mongolia Piper Campbell 6 March visited a training course funded by the
embassy for English legal translation.
The course is meant to prepare Mongolian translators so they can properly translate bills. Legal
translation is necessary for the Transparency Agreement which Mongolia and the United States
signed September 2013. Although the agreement has not yet been ratified, the U.S. Embassy has
launched the technical assistance promised under the agreement in the expectation that it will be.
The agreement requires that Mongolia publish in English bills that will impact business in Mongolia.
The U.S. Embassy has partnered with the American University of Mongolia's English Language
Institute to provide legal translations for select members of staff from the Ministry of Justice and
National Legal Institute.
Source: Montsame
JOURNALISTS RECEIVE INVESTIGATIVE JOURNALISM TRAINING
The Society of Investigative Journalists conducted a two-day training on methodology in
investigative journalism 13 and 14 March at the Corporate Hotel.
The Mongolian chapter of Transparency International, the British Embassy to Mongolia and the
Thomson Foundation organized the two-day training to help raise the standards of investigative
reporting in Mongolia. The event included speeches from development officer at the Thomson
Foundation, Bettina Peters and President and Chief Executive Officer of Globe International, Kh.
Naranjargal. Topics were to include improving technical skills for information gathering, developing
teamwork, dialogue training.
Source: News.mn
COURTS RULE AGAINST MPP CLAIM OF OWNERSHIP OVER LENIN MUSEUM
A third Mongolian court has ruled against the Mongolian People's Party's (MPP) claim of ownership
over the Lenin Museum a year since the Ministry of Culture, Sports and Tourism announced it would
use the building for a proposed dinosaur museum.
Culture Minister Ts. Oyungerel and State Property Committee Chairman D. Tsogtbaatar announced

15. the decision 12 March, adding that an open tender bid for the redevelopment and repair work for
the conversion to a dinosaur museum would be held. The museum will be converted into a dinosaur
museum that will house the Tyrannosaurus bataar that was returned to Mongolia last year after
almost being illegally auctioned in the United States.
The MPP 11 times delayed the courts from announcing a decision on the case. In the end, however,
the courts ruled that the building did not belong to the party because it was built using funds from
the state budget in 1974. The MPP, which once ruled Mongolia as a single-party state under the title
the Mongolian People's Revolutionary Party, had been using the building as its own commercial
property.
Source: News.mn
GOVERNMENT CRACKS DOWN ON CORPORATE TAX EVASION
The economic crimes investigation division of the Agency for Combating Organized Crime has
investigated 3,313 administrators and accountants (with double counting) from various companies
for illegal reporting on taxes.
Authorities said the companies they have investigated owed a sum total MNT 608 billion in back
taxes. Some companies were also guilty of placing the names of dead individuals, foreign citizens,
and students studying abroad on the titles of company registration, in addition to forged invoices
for value-added tax (VAT).
The government is allowing that criminal investigations be canceled if the sum owed was below
MNT 177.55 million and was paid. Authorities reported that the 251 entities that paid a total MNT
15.5 billion in back taxes by 14 February saw their criminal cases canceled.
Source: Undesnii Shuudan
MAYOR INTRODUCES THREE-STRIKE POLICY FOR CITY OFFICIALS
Ulaanbaatar Mayor Erdene Bat-Uul introduced a new three-strike plan to encouraged better
performance from city officials.
In light of cases brought to his attention where there were long delays before action was taken by
the city, the mayor said any government authorities performing poorly in their positions would
receive yellow slips to serve as warnings for their misconduct. Any official to receive three
warnings, he said, would be dismissed from their position.
Source: Undesnii Shuudan
PERTH MAN, PAUL WEEKS, AMONG THE MISSING ON MALAYSIAN AIRLINES PLANE
Two of the passengers on the Malaysian Airlines plane that reportedly crashed into the sea off the
Vietnamese island of Phu Quoc early Saturday were traveling to Mongolia. Nothing is as yet known
about the fate of the 239 persons on board.
Paul Weeks, a 38-year-old New Zealander who relocated to Perth, Australia, was on board Malaysian
Airlines Flight 370 en route to Mongolia for a new job in the mining industry.
''He had just taken on a new role; that's why he was heading to Mongolia,'' Weeks' sister, Sara
Weeks, said. ''He was going to be based there for a month on [at a time]. It was a really good job
and he was going to be paid very well.‖
Weeks' sister said she spoke to her brother's wife in Perth about 02:00 on Sunday and ''she is very,
very upset—naturally. She is of the understanding that it's looking like the plane has crashed. 'She is
bracing herself for the worst.''
Chandrika Sharma was also traveling to Mongolia via the Malaysian Airlines flight MH370 from
Malaysia to Beijing. Sharma was the executive secretary of the International Collective in Support
of Fish Workers, based in Chennai. An expert in fisheries sector and issues related to fishermen,
Sharma, a resident of Velachery, was heading to Ulaanbaatar, Mongolia, to attend a regional
conference for Asia and the Pacific hosted by Food and Agriculture Organization of the United
Nations. Her husband is a consultant based in Chennai and their only daughter is pursuing studies
English literature in Ambedkar University, Delhi.
M.J. Vijayan of National Fish Workers Forum, who has worked closely with Ms. Chandrika, expressed

16. shock over the reports of her flight crashing. ―She was a very modest, silent person, less visible…
but when she is in a conference you realize that she makes a substantive contribution to the cause.
She would make very specific interventions,‖ he said. ―For the past one year, she has been flying
frequently due to all the negotiations going on with the FAO and ILO… in fact we used to joke about
her globetrotting,‖ he added.
Source: The Hindu, Sydney Morning Herald
MONGOLIAN ATHLETE TAKES 14TH PLACE IN PARALYMPICS
Mongolian cross country skier B. Ganbold took 14th place at the 2014 Sochi 2014 Winter Paralympics
in Russia.
Ganbold finished at 1:04:01 in the men`s 20-kilometer cross country skiing event. Russian
competitor Rushan Minnegulov won the gold medal, while Finland‘s Ilkka Tuomisto won silver, and
Russia‘s Vladislav Lekomtsev won bronze. Eighteen athletes out of 20 from 12 countries made it to
the finish line. The two remaining Chinese athletes could not finish the event.
Mongolian athlete B. Ganbold was scheduled to next run in the men‘s 1,000-meter sprint on 12
March and the men`s 10-kilometer classic on 16 March.
Source: News.mn
ANNOUNCEMENTS
MONGOLIA ECONOMIC FORUM 2014, ULAANBAATAR, 24-25 MARCH
The fifth annual meeting of Mongolia Economic Forum will be held on 24 and 25 March at the State
Palace in Ulaanbaatar.
During this two day event participants will discuss topics related to future of Mongolia and many
more social and economical hot topics. The World Economic Forum project team will also present
‗The Scenarios for Mongolia‘ during the meeting.
BCM members will receive an exclusive 10 percent discount.
For enquiries regarding participation and press, please call 976-11-321051 or email
info@meforum.mn or visit www.meforum.mn. Please register at http://meforum.mn/registration/.
Registration will be closed 5 pm, 21 March.
___________________________________________
BCM MEMBERS RECEIVE 15% DISCOUNT FOR OIL AND OIL SHALE MONGOLIA, UB, 9-10 APRIL
The Oil and Oil Shale Mongolia 2014 international investment conference, hosted by the Petroleum
Authority of Mongolia, will be held in Ulaanbaatar from 9 to 10 April 2014.
The event will be attended by international investors, oil, gas, and oil shale companies, service
providers, consultancies, equipment suppliers, and traders.
Delegates will have a unique opportunity to network with industry's key contacts at the country's
first international investment conference on oil, gas, and oil shale. They will have the opportunity
to obtain vital information on legislation and policies on oil, gas, and oil shale exploration and
production regulations from the officials of the Ministry of Mining and Petroleum Authority of
Mongolia. Moreover, projects on oil refinery, exploration, production, plus oil shale projects will be
presented.
BCM members will receive an exclusive 15 percent discount. For more information call +976 9909-
1765 or 9910-5877, email info@oilmongolia.com or logon to OilMongolia.com.
___________________________________________
MONGOLIA INVESTMENT SUMMIT, LONDON, 29 APRIL-2 MAY
The second annual Mongolia Investment Summit in London will be 29 April to 2 May.
An additional post-summit workshop will be held, giving participants four whole days of
presentations, discussions, panels and networking opportunities. Keynote speakers include Ochirbat
Chuluunbat, vice minister for economic development, Dorjpurev Dulamsuren, vice minister for

17. energy, and Clemente Cappello, chief investment officer at Sturgeon Capital
All BCM members can take advantage of a special 25 percent discount by using the offer code
UL912BCM when registering. Register online at mongoliainvestmentsummit.com/London, call +44
(0) 207 216 6056, or email cs@resourcefulevents.com
___________________________________________
3RD ANNUAL MONGOLIA TRADE & COMMODITY FINANCE CONFERENCE, BLUE SKY HOTEL, 13 MAY
Exporta announces that the Mongolia Trade & Commodity Finance Conference will return to
Ulaanbaatar on May 13, 2014 for the third edition of this annual series
The Mongolia Trade & Commodity Finance Conference is the only event of its kind. Building on the
success of the 2013 conference, which welcomed 175 delegates from 13 different countries, the
2014 event will once again provide an unrivaled platform for discussion and debate with the
region‘s leading local businesses and trade finance practitioners.
With its focus on Mongolia‘s mining, minerals and vast commodity-led growth, this will be the key
trade gathering for the country‘s senior business leaders, providing timely insight on the challenges
facing the local banking and private sectors, as well as offering perspectives from the industry‘s key
supporting actors.
BCM members will receive a 10% discount at registration. Please contact saruul@bcmongolia.org to
get a special discount code. Click here to register, or visit exportagroup.com for more information.
___________________________________________
PPP HANDBOOK FOR PUBLIC AND PRIVATE STAKEHOLDERS LAUNCHED
Mongolia‘s Ministry of Economic Development launched the PPP manual on 19 February 2014.
Prepared with ADB support, the manual guides public and private stakeholders in the preparation of
PPPs. ADB Principal PPP Specialist, Craig Sugden, stressed that Mongolian PPP environment has
three strengths now: the Concession Law, the PPP implementing unit, and the handbook. In
addition, the first in a series of Public Private Partnership Stakeholders Consultative Meetings to be
organized quarterly by MOED was held on 21 Feb in Best Western Tuushin Hotel. Contact Innovation
and PPP Department, MOED, Tel: 264726 for the manual.
ADB has supported Mongolia‘s PPP work since 2009 and was appointed as the mandated advisor to
the PPP for Combined Heat and Power Plant 5.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAY, 19:00 TO 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 WORKING GROUPS
BCM LAUNCHES LOGISTICS WORKING GROUP.
The following statement was made at Coal Mongolia by O. Chuluunbat, Vice Minister of Economic
Development -- "Transport is the most pressing issue in Mongolia!" There appears to be an urgent
need for greater focus on logistics. This need is at all levels from the university up through
vocational job training to business and government policies and strategies.
Given the makeup of BCM's membership, we welcome individual volunteers from our logistics,
mining, transport, university and other interested members to join our new Logistics Working
Group. This BCM Working Group (WG) can lead private sector input and recommendations in this
critical area for Mongolia and make a real and meaningful impact..
Members should please contact Erdenetsetseg at erka@bcmongolia.org; to join this WG or for more
information.

18. ___________________________________________
BCM TAX WORKING GROUP REQUEST TO GOVERNMENT
BCM`s Tax Working Group on March 11 requested an "open discussion" of proposed tax law changes
in an official letter to MP Ch. Saikanbileg, chief of the Mongolian cabinet secretariat.
Please see following link to Dr. Khashchuluun, Execcutive Director of the National Council of
Private Sector Support (NCPSS), and the NCPSS’s “Taxation Impact Research” presentation to the
BCM Tax Working Group on February 19, 2014 in Mongolian -
http://bcmongolia.org/images/files/mn/Iltgeluud/Khashchuluun.pdf.
English translation - "Change of the package of Taxation Laws private sector" posted to BCM English
website.
If you have any comments on the proposed tax laws, please send to erka@bcmongolia.org
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.
•―Anti Corruption legislation and State Policy‖ (Mongolian) by D.Munkhjargal, Prevention and Public
Awareness Department, Senior Commissioner, Independent Authority Against Corruption (IAAC)
Mongolia at the ―ANTI-CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON
TRANSPARENCY‖ Training seminar, Mar 06, 2014
The presentation below was made at Mongolian National University as part of the ―BCM in the
University Classroom series‖ on February 27, 2014:
• Ser-Od Inchinkhorloo, Vice Director, BCM, ―Investment environment: Past, Present, Future‖
The presentation below is from the February 24 BCM monthly meeting by Nick Cousyn, COO, BD Sec:
• О. Зоригт, Гүйцэтгэх захирал, Майн Инфо "Майн Инфо ХХК-ний товч танилцуулга", МБЗ-ийн 2
сарын 24-ний сарын хурал
Dr. Khashchuluun, Executive Director, National Council of Private Sector Support, ―Taxation Impact
Research‖ to BCM Tax Working Group, February 19, 2014
• ТАТВАРЫН БАГЦ ХУУЛИЙН ӨӨРЧЛӨЛТ: ХУВИЙН ХЭВШИЛД, Ч. Хашчулуун, Хувийн хэвшлийг
дэмжих үндэсний зөвлөлийн гүйцэтгэх захирал 2014.02.19
20 Presentations from Coal Mongolia, 20-21 February, 2014:
• Уул уурхайн сайд Д. Ганхуяг, Төрөөс Эрдэс Баялгийн Салбарт Баримтлах Бодлого, Нүүрсний
Салбарыг Хөгжүүлэх Стратегийн Чиг Хандлага, Коал Монголиа 2014, 2 сарын 20-21.
• Сангийн сайд Ч.Улаан, МОНГОЛ УЛСЫН САНГИЙН ЯАМ, Улсын төсөвт нүүрсний салбарын
үзүүлэх нөлөө, татварын орчин шинэчлэл, Коал Монголиа 2014, 2 сарын 20-21.
• Монгол орны нүүрсний салбар дахь байгаль орчны асуудал, Байгаль орчин, ногоон хөгжлийн
яам, ХБОБНГ-ын дарга Д.Энхбат Коал Монголиа 2014, 2 сарын 20-21.
• НҮҮРСНИЙ АЖ ҮЙЛДВЭРЛЭЛИЙГ ХӨГЖҮҮЛЭХ ТЭЭВЭР ЛОЖИСТИКИЙН АСУУДЛУУД:
Л.ПҮРЭВБААТАР ТӨМӨР ЗАМЫН ИНЖЕНЕРҮҮДИЙН ХОЛБООНЫ ЕРӨНХИЙЛӨГЧ, ―УУЛ УУРХАЙН
БҮТЭЭГДЭХҮҮНИЙ ТЭЭВЭРЛЭЛТ‖ Коал Монголиа 2014, 2 сарын 20-21.
• МОНГОЛ УЛСЫН НҮҮРСНИЙ САЛБАР ДАХЬ ХӨРӨНГӨ ОРУУЛАЛТ, ХУДАЛДААНЫ ТААТАЙ ОРЧИН
БҮРДҮҮЛЭХ НЬ,ЭДИЙН ЗАСГИЙН ХӨГЖЛИЙН ДЭД САЙД О.ЧУЛУУНБАТ Коал Монголиа 2014, 2

19. сарын 20-21.
• Уул уурхайн дэд сайд О. Эрдэнэбулган, Олон улсын нүүрсний зах зээл дэх Монгол улсын
өрсөлдөх чадварыг нэмэгдүүлэхэд төрийн оролцоо Коал Монголиа 2014, 2 сарын 20-21.
• Ж. Батцэнгэл, Монголын Уул Уурхайн Корпорацийн дарга, МОНГОЛЫН НҮҮРСНИЙ САЛБАРЫН
ӨНӨӨГИЙН НӨХЦӨЛ БАЙДАЛ, Тулгарч буй бэрхшээл ба шийдэх боломж Коал Монголиа 2014, 2
сарын 20-21.
• Аршад Саеид, Пийбоди Энержи компанийн Монгол ба Энэтхэг улсыг хариуцсан Ерөнхийлөгч,
Дэлхийн нүүрсний зах зээл, Монгол улсад үзүүлэх нөлөөлөл, Коал Монголиа 2014, 2 сарын 20-
21.
• МОЗА гүйцэтгэх захирал Ч. Хашчулуун, Занарын дэлхийн хувьсгал ба Монголын эдийн засагт
үр нөлөө, Коал Монголиа 2014, 2 сарын 20-21.
• Багануур Энержи Корпорэйшн ХХК, Нүүрс хийжүүлэх, шингэрүүлэх цогцолбор парк төслийн
товч танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.
• АДУУНЧУЛУУНЫ ЦАХИЛГААН СТАНЦ, БЕНЗИНИЙ ҮЙЛДВЭРИЙН ТӨСӨЛ, Ж.Золжаргал –
Төслийн удирдагч, Коал Монголиа 2014, 2 сарын 20-21.
• Ц.Ганцог, Жени Ойл Шэйл Монголиа ХХК Гүйцэтгэх захирал, ШАТДАГ ЗАНАРЫГ АШИГЛАХ
БОЛОМЖ, Коал Монголиа 2014, 2 сарын 20-21.
• Фэн Вэй эрчим хүчний зөвлөгөө өгөх компани, 2014 оны хятадын нүүрсний зах зээлийн
шинжилгээ болон үнийн таамаглал, Коал Монголиа 2014, 2 сарын 20-21.
• Я. Батсуурь, Эрдэнэс Таван Толгой ХК, Танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.
• Хишиг Арвин Индустриал ХХК, ҮНДЭСНИЙ КОМПАНИУДЫН ТӨЛӨВШИЛ, ӨРСӨЛДӨХ ЧАДВАР,
Коал Монголиа 2014, 2 сарын 20-21.
• Виртген Групп, МОНГОЛЫН НҮҮРСНИЙ ЗАХ ЗЭЭЛ ДЭХ WIRTGEN БРЭНДИЙН SURFACE MINER
БУЮУ АНГИЛАН ОЛБОРЛОГЧИЙН ТЕХНОЛОГИ БОЛОН АШИГЛАХ БОЛОМЖУУД, Коал Монголиа
2014, 2 сарын 20-21.
• ―Тавантолгой‖ ХК-ийн Гүйцэтгэх захирал Р.Сэддорж, Дэвшилтэт технологи ба инновацийг
нутагшуулах нь, Коал Монголиа 2014, 2 сарын 20-21.
• ―УУЛ УУРХАЙН ДЭД БҮТЦИЙН ХӨРӨНГӨ ОРУУЛАЛТЫГ ДЭМЖИХ ТӨСӨЛ‖ Төслийн Зохицуулагч
Б.Энхбаатар,Коал Монголиа 2014, 2 сарын 20-21.
• ДЭД САЙД Д.ДОРЖПҮРЭВ, Эрчим Хүчний Яам, 2014 ОНД ЭРЧИМ ХҮЧНИЙ САЛБАРЫН
ХИЙГДЭХЭЭР ТӨЛӨВЛӨСӨН АЖЛУУД БОЛОН ТӨРӨӨС БАРИМТАЛЖ БУЙ БОДЛОГО, Коал
Монголиа 2014, 2 сарын 20-21.
• Ай Эм Си Монтан Компани, Нүүрс баяжуулах талаар, Коал Монголиа 2014, 2 сарын 20-21.
The below presentation is from the January 27 BCM monthly meeting:
• ОЙ ХАМГААЛАЛД СУУРИЛСАН БИЗНЕС, Цэсэдийн БАНЗРАГЧ /Ph.D/, БОНЯ- ны ОЙ
ХАМГААЛАЛ, ОЙЖУУЛАЛТЫГ ЗОХИЦУУЛАХ ХЭЛТЭСИЙН ДАРГА, МБЗ-ийн 1 сарын 27-ны
гишүүдийн сарын хурал дээр
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „INTERVIEWS„, MONGOLIAN
BUSINESS NEWS‟, „PHOTO GALLERY‟
•―Impact of Corruption in Mongolia‖ by L.Sumati, Director of Sant Maral Foundation at the ―ANTI-
CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY‖ Training
seminar, Mar 06, 2014;
•―Anglo American Business Integrity policy and its application within the Business Globally‖ , Dr.
Graeme Hancock, President and Chief Representative Mongolia of Anglo American at the ―ANTI-
CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY‖ Training
seminar, Mar 06, 2014;
•Change of the package of taxation laws: private sector, Dr. Ch. Khashchuluun, Executive Director,
National Council for Private Sector Support, at the BCM`s Tax working group's meeting Feb 19,
2014;
•Economic and Capital Markets Update, Nick Cousyn, Chief Operating Officer, BDSec at the BCM

20. Monthly Meeting, Feb 24, 2014
15 Presentations at Coal Mongolia, February 20-21:
•Impact of Coal Sector on Government's Budget and the Taxation Regime , Ch. Ulaan, Minister of
Finance, MINISTRY OF FINANCE OF MONGOLIA
•Environmental issues in Mongolian coal mining sector, D.Enkhbat Ministry of Environment and
Green Development, Head of Environment and Natural Resources Department
•COAL INDUSTRIAL DEVELOPMENT, TRANSPORT AND LOGISTICS ISSUES: PRESENTATION TOPIC:
TRANSPORTATION OF THE MINING PRODUCT" Purevbaatar Luvsandagva, Head, Association of Railway
Engineering of Mongolia
•INVESTMENT INTO MONGOLIAN COAL MINING SECTOR AND CREATING AN ATTRACTIVE ENVIRONMENT
FOR INTERNATIONAL TRADE, VICE MINISTER OF ECONOMIC DEVELOPMENT, O. Chuluunbat, Vice
Minister, Ministry of Economic Development
•Government Involvement and Support to Enhance the Mongolian Competitiveness in Coal Sector,
O. Erdenebulgan, Vice Minister of Mining
•MONGOLIAN COAL INDUSTRY, Overcoming challenges in volatile market conditions, G.Battsengel,
Director, Mongolian Mining Corporation
•Global Coal Markets and Implications for Mongolia , Arshad Sayed, President of Mongolia & India,
Peabody Energy
• Introduction of CTL Plant Project, T. Munkhtur, Baganuur Energy Corporation
• ADUUNCHULUUN POWER AND CTL PROJECT, J.Zoljargal, Project Manager, MAK
• OIL SHALE OPPORTUNITIES IN MONGOLIA, Ts.Gantsog, Executive Director, Genie Oil Shale
Mongolia
• China Coal Market Lookout 2014, Fenwei Energy Consulting
• Erdenes Tavan Tolgoi JSC, Y. Batsuuri, CEO
• WIRTGEN SURFACE MINING TECHNOLOGY AND CHALLENGES IN COAL IN MONGOLIA by Wirtgen
Group
• "MINING INFRASTRUCTURE INVESTMENT SUPPORT PROJECT", Project Coordinator, B. Enkhbaatar at
the Coal Mongolia 2014, Feb 20-21.
• Coal Processing by IMC Montan.
The following presentations are from the January 27 BCM monthly meeting:
- "The year 2014 starts with new IPO on the Mongolian Stock Exchange", Richard Kobayashi, CEO,
Standard Investment LLC
- "IMA Consultancy Services for Investors and Account Manager's Role" D. Irmuun, Director of Division
for Promotion and Consultancy Services, Invest Mongolia Agency
The following have been added to Interview Section:
• Jim Dwyer, Executive Director, BCM: ―Minerals Policy‖;
• D. Bayasgalan, Director of Golomt Bank: ―Golomt has no problem‖;
• From the Oxford Business Group, Mongolia Reports 2013 book;
• B. Byambasaikhan, Chairman, Business Council of Mongolia: ―Talk is cheap‖;
• President Ts. Elbegdorj: ―Diversifying for growth‖;
• Jim Dwyer, Executive Director, BCM: ―Non-mining sectors budding‖;
• Peter Morrow, Chairman, American University of Mongolia: ―Filling in the blanks‖;
• N. Zoljargal, Governor, Bank of Mongolia: ―Sustainable vision‖;
• Gansukh, Minister of Roads and Transportation: ―Accessing new markets‖;
• J. Od, President, MCS Group: ―Building interest‖;
• Cameron McRae, President and CEO, Oyu Tolgoi: ―Sitting on a copper mine‖.
BCM's English website includes the ―Mongolia Business News‖ section.
Mongolia Reports section:

21. • 2014 Article IV staff report for Mongolia by International Monetary Fund;
• BCM comments on draft Amendments to the Minerals Law made to Mr. D.Gankhuyag, the Minister
of Mining, February, 2014;
• BCM 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 6th Anniversary BCM Renewal dinner on November
11, 2013.
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
BCM LAUNCHES NEW LINKED-IN COMPANY PAGE
The Business Council of Mongolia has launched a new company page on the social networking
website LinkedIn to network its members and followers including small-medium enterprises (SMEs).
The new page will allow BCM to alert followers to the latest news and information critical to their
businesses. Members‘ businesses will be promoted. Additionally, BCM plans to deliver monthly
infographics on the latest data as well as videos and other media content as they come. The bulk of
the content on the new page will be in Mongolian language to better cater to BCM's Mongolian-
speaking audience and members. The following link can direct you to the new BCM's Linked-in page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo
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 https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
SOCIAL STATS:
BCM now has 4,758 fans on our Facebook fans page, 1,611 connections on LinkedIn network, and
959 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at http://bcmongolia.org/en/
BCM IN THE UNIVERSITY CLASSROOM NEWS
Business Council of Mongolia (BCM) has been progressing with its BCM in the University Classroom
series since March 2012. Led by BCM‘s Education Working Group, the program provides lectures at
universities to help inspire students and give them direction for their future careers. The series has
grown to include an average of 10 lectures per academic year. Now 1,213 students and teachers
have participated with BCM in the University Classroom Project.
Next BCM in the University Classroom series will be held on 18 March at the Institute of Finance &

22. Economics. Ms. Zaya B., consultant at World Bank, has been invited to speak. Presentation title:
―Insurance Market in Mongolia‖.
ECONOMIC INDICATORS

24. 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]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
February 28, 2014 *12.2% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 12.0% y-o-y, Ulaanbaatar city, February 28, 2014
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]
CURRENCY RATES – 14 MARCH 2014
Currency Name Currency Rate
US dollar USD 1,767.94
Euro EUR 2,467.07
Japanese yen JPY 17.23
British pound GBP 2,945.74
Hong Kong dollar HKD 227.71
Chinese Yuan CNY 288.05
Russian Ruble RUB 48.46
South Korean won KRW 1.65
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.