The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. In the business section, it summarizes that Ivanhoe Mines began trading rights for its $1.8 billion rights offering, Singapore's wealth fund acquired a 5.5% stake in Ivanhoe Mines, and Altan Rio intersected high grades of gold at its exploration project. It also mentions officials planning to inspect Areva's uranium project and Khan Bank obtaining $94 million in financing.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 226 – June 15, 2012
NEWS HIGHLIGHTS:
Business:
 Ivanhoe Mines rights offering trading began on 14 June;
 Ivanhoe files final prospectus for USD 1.8 billion rights offering;
 Singapore’s wealth fund buys 5.5 percent of Ivanhoe;
 Altan Rio intersects high grades of gold;
 Officials to inspect Areva's Dulaan Uul project;
 Khan Bank obtains USD 94 million from international financial institutions;
 New fund targets Mongolia to outperform correlated returns;
 Boroo Gold continues reclamation activity;
 Wagner Asia demonstrates Powerscreen capabilities for road construction;
 Chinese, Mongolian firms congregate;
 Vale and Cliffs look to capitalize on China's steel industry;
 Areva closes stake sale in Canadian mining project.
Economy:
 Peace Bridge to be expanded;
 Government to audit licensed areas within protected boundaries;
 Crime on the rise;
 Mongolia ranks ninth among developing countries for retail expansion;
 Ulaanbaatar among region’s least expensive cities;
 Mongolia looms further on Australia's share of Asian coal market;
 Mongolia may be a model to others;
 Will investors stay the course?;
 Agencies train with GIS for disasters;
 Commodity prices in “no man's land,” says Barclays;
 BHP cuts outlook for commodity prices;
 Copper hits six-month low amid China concerns;
 Miners set to return to hedging;
 Selling abroad, China eases slump at home;
 IMF forecasts 4 percent growth for Russia in 2012, 2013.
Politics:
 President urges global support of anti-corruption efforts;
 President defends actions against Enkhbayar;
 Enkhbayar's trial postponed to 21 June;
 Government releases full list of candidates;
 Justice Coalition reveals party platform;
 Mongolians living abroad cast their votes for first time;
 Tyrannosaur is truly Mongolian, experts declare;
 Hu and Elbegdorj exchange courtesies;
 India looks to tap into Central Asian markets;
 Nuclear Energy Agency revokes 21 illegally issued licenses;
 Ministry provides update on protected land;
 Court sentences police officers for deaths in July 2008 riots;

2.  Officers learn to respect human rights in public disorders;
 Environmental activists to stand trial;
 Partnership of convenience.
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.
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BUSINESS
IVANHOE MINES RIGHTS OFFERING TRADING BEGAN ON 14 JUNE
Trading of Ivanhoe Mines Ltd.‘s rights offering began on 14 June.
Each of Ivanhoe Mines‘ shareholders will receive one transferable right for each share of common
stock owned as of 19 June. Every 20 rights will entitle the holder to purchase seven common shares
of Ivanhoe Mines. Each holder may choose a subscription price of USD 7 a share, a 32 percent
discount. Approximately 260 million common shares are expected to be issued under the rights
offering, which would represent approximately 35 percent of Ivanhoe Mines' current outstanding
shares.
The rights-offering will be open for exercise for 21 days from the date of mailing to shareholders
and will expire on 19 July. Shareholders who do not exercise all of their rights will have their
present ownership interests in Ivanhoe Mines reduced, as a percentage of the total outstanding
shares, as a result of the rights offering.
Source: Ivanhoe Mines Ltd.

3. IVANHOE FILES FINAL PROSPECTUS FOR USD 1.8 BILLION RIGHTS OFFERING
New York and Toronto-listed Ivanhoe Mines Ltd. filed its final prospectus for a USD 1.8 billion rights
offering last week to complete development of its Oyu Tolgoi copper-gold project in Mongolia. The
company said the offering was open to all existing shareholders on an equal and proportional basis
to buy additional common shares.
The rights offering is part of the comprehensive financing plan to continue the development of the
Oyu Tolgoi project, and was the subject of a memorandum of agreement with majority shareholder
Rio Tinto PLC on 18 April.
"The final prospectus has been filed with securities regulators in Canada and the U.S. and the rights
had been admitted for trading on the TSX, the NYSE and the NASDAQ stock markets, which would
list the shares issued when the rights are exercised.‖
Rio Tinto has committed to take up its full basic subscription privilege under the rights offering with
respect to its 51 percent shareholding in Ivanhoe, subject to certain conditions. Rio Tinto will also
provide a standby commitment for the full USD 1.8 billion rights offering, subject to certain
conditions including the price of Ivanhoe's common shares on the NYSE not falling down the
subscription price at any time on or after the fifth business day before the expiry of the rights. Rio
Tinto is required by the standby commitment to buy shares not taken up under the rights offering.
Source: Mining Weekly
SINGAPORE‟S WEALTH FUND BUYS 5.5 PERCENT OF IVANHOE
Singapore state investor Temasek Holdings has taken a 5.5 percent stake in Canada's Ivanhoe Mines
Ltd., valued at USD 426 million, according to a regulatory filing.
Temasek bought 40.86 million shares of the Vancouver-based firm, the Singapore investor said in a
filing of the U.S. Securities and Exchange Commission on 8 June. Ivanhoe Mines is an affiliate of
mining giant Rio Tinto PLC, and owns 66 percent of Oyu Tolgoi LLC.
Temasek, which has about 36 percent of its assets in financials, has been slowly increasing its
investments in resource firms. In April it bought shares of Petro China's Kunlun Energy.
Source: Mine Web
ALTAN RIO INTERSECTS HIGH GRADES OF GOLD
Altan Rio Minerals Ltd. intersected high grades of gold at its Khavchuu gold exploration project.
Altan Rio's exploration team uncovered 11.49 grams per ton of over a meter rat Hole KH-05. The
high grade is of particulate importance as it represents a single mineralized hole in area of high
promise, reported the company. The new gold discovery zone has the added benefit of its strategic
location near Centerra Gold Inc.'s Boroo mill complex, warranting follow-up drilling.
Future drilling will target further test zone of known mineralization and the most promising
geophysical anomalies.
Source: Altan Rio Minerals Ltd.
OFFICIALS TO INSPECT AREVA'S DULAAN UUL PROJECT
Officials will investigate the exploration operations of Areva SA's Mongolia subsidiary, Kojegobi Co.,
for the effect uranium extraction operations is having in the surrounding area.
The governor of Ulaanbadrakh Soum requested an investigation into the Dulaan Uul mine for its
environmental impact. The Central Nature Laboratory and the Department of Water and
Meteorology will carry out the investigation. Officials warned that if the investigation results show a
negative impact to the environment, it would have to suspend operations.
Kojegobi plans to build a uranium processing factory from 2015 to 2017. Until then, it plans to send
up to 2,500 tons of uranium for concentration to Kazakhstan and France.
Areva has explored for uranium in Mongolian since 1997.
Source: Undesnii Shuudan
KHAN BANK OBTAINS USD 94 MILLION FROM INTERNATIONAL FINANCIAL INSTITUTIONS
Khan Bank has added USD 94 million of syndicated loans to its funding and capital base. FMO (the

4. Netherlands Development Finance Company) has arranged the financing, which is being provided by
FMO and three other European development finance institutions.
The syndication includes USD 62 million in senior five-year debt to support its small-medium
enterprises and corporate lending, and USD 32 million in five-year subordinated debt, which will be
added to the bank's second tier capital.
"FMO is proud to have arranged this groundbreaking loan facility for Khan Bank. This long-term
commitment is a boost for the Mongolian economy and a clear vote of confidence for the Mongolian
financial sector in general," said FMO Chief Investment Officer Jurgen Rigterink.
Khan Bank has a long term standing relationship with FMO and the European Bank of Reconstruction
and Development, which is providing USD 25 million under a parallel loan agreement.
Source: Khan Bank
NEW FUND TARGETS MONGOLIA TO OUTPERFORM CORRELATED RETURNS
The Cube Asia Frontier Fund (CAFF), a closed-end fund, aims at investing "opportunistically" in
"inefficient" frontier markets' real estate, starting with Mongolia, Vietnam, and Myanmar. The fund
has a reported capacity of USD 150 million.
"Our philosophy is to seek uncrowded investment opportunities, and we are confident that
exploiting these still insufficiently explored markets will generate attractive returns," said Thomas
Holland of the firm.
The uncrowded aspect is the chief allure: Relatively untrodden markets should produce less
correlated returns versus tightly linked global stocks in Europe, East Asia, and the United States. It
would seem that the method can sometimes disappoint, however. The most popular frontier-
markets ETF, the USD 135 million Guggenheim Frontier Markets ETF, is up 5.4 percent year-to-day,
or half a percentage point ahead of the S&P 500. Last year, its uncorrelated returns plunged 24
percent.
Indeed, FRN may highlight some of the arguments in favor of highly specialized frontier-market
exposures like Cube's latest offering. FRN has had a 96 percent correlation over the last three years
to the iShares MSCI Singapore Free Index Fund and the iShares MSCI Chile Investable Market Index
Fund, two countries with deep ties to the global economy. It would seem that one risk in frontier
markets is that they sometimes behave like emerging markets on steroids.
Source: Barron‘s
BOROO GOLD CONTINUES RECLAMATION ACTIVITY
Boroo Gold Inc. aims to rehabilitate 44.7 hectares of land this year.
The company began its restoration efforts on 15 April and plans to conclude them on 11 July, at the
start of the annual Naadam festival. Additional work, however, will continue up until fall.
As per tradition, local residents participated in the efforts, with 40 to 60 men from the nearby
communities of Bayangol Baruunkharaa, Zuunkharaa, and Mandal Soums in Selenge Aimag, where
the Boroo gold mine is located, lending a helping hand.
Boroo Gold has plans to complete its reclamation in 2016 with the closing of the mine. In total, the
miner has spent MNT 40 billion on rehabilitation.
Source: Undesnii Shuudan
WAGNER ASIA DEMONSTRATES POWERSCREEN CAPABILITIES FOR ROAD CONSTRUCTION
The Powerscreen dealer for Mongolia, Wagner Asia Equipment LLC, held an official launch event in
Ulaanbaatar showcasing solutions for the Mongolian Road and Construction Industry in May 2012.
The two-day event included seminars, discussion groups and a working demonstration of its
Powerscreen equipment as well as other product lines the company offers.
―2012 is a crucial time for Mongolia as the country now needs to build large tunnels, bridges and
construct more than 6,000 kilometers of highways and road network nationally,‖ said Allen Smith,
Powerscreen mining development manager.
At the event, Smith presented a seminar entitled ―Mobile Crushing and Screening Solutions,‖ which
was attended by government ministers, construction experts and professionals from across

5. Mongolia. Smith demonstrated the importance of selecting high-quality crushing and screening
equipment for road construction and having reliable customer support from a strong local dealer.
Day two of the event provided an opportunity for invited guests to see a demonstration of how the
Powerscreen XA400s, 1000 Maxtrak and Chieftain 1700, in combination with equipment from other
manufacturers could be used to create 100 meters of road in 40 minutes.
Source: Materials Handling World Magazine
CHINESE, MONGOLIAN FIRMS CONGREGATE
A China-Mongolia economic and trade conference opened on Friday to promote bilateral economic
cooperation.
The event, organized jointly by the Mongolian National Chamber of Commerce and Industry (MNCCI)
and China's Inner Mongolia International Trade Promotion Association (MITPA), aimed to provide a
platform for cooperation between Chinese and Mongolian enterprises.
Present at the gathering were representatives from dozens of large state-owned companies from
Inner Mongolia, including Baotou Iron and Steel Group Co. and Inner Mongolia Electric Power Group.
Both companies introduced their development plans and the programs they intended to implement
in cooperation with Mongolian enterprises.
Trade between the two neighbors totaled USD 6.3 billion in 2011, accounting for 56 percent of
Mongolia's total foreign trade.
Source: China Daily
VALE AND CLIFFS LOOK TO CAPITALIZE ON CHINA'S STEEL INDUSTRY
Iron-ore producers have struggled as a slowdown in the Chinese economy was expected to dampen
demand for the commodity, but neither Cliffs Natural Resources Inc. nor Vale SA have shown signs
of scaling down operations, according to the Paragon Report.
According to analysts' estimates, the commodity in the second half of 2012 will rise to USD 152 a
metric ton, Prices earlier this week fell to USD 130.60, close to the year's low seen on 23 May
numbers from the Steel Index Ltd. showed. New plants for Baosteel Group Corp. and Wuhan Iron &
Steel Group were among the projects approved by China's main planning agency.
"Commodity prices are already close to the bottom and are set to rebound," Henry Liu, analyst at
Mirae Assets Securities Co., said. "Prices will get a boost in the short term on speculation China will
stimulate the economy. Real demand for steel depends on what incentives the government gives to
drive investments."
Cliffs' strategy is to continually achieve greater scale and diversification in the mining industry
through a focus on serving the world's largest and fastest growing steel markets. First-quarter Asia
Pacific iron-ore sales volume increased 25 percent to a record 2.8 million tons from 2.2 million in
2011's comparable quarter. Vale recently announced plans to sell its thermal coal operation in
Colombia.
Source: Paragon Financial Limited
AREVA CLOSES STAKE STALE IN CANADIAN MINING PROJECT
Areva SA closed the sale of its 27.9 percent state in the Millennium mining project to Cameco Corp.
for about EUR 115 million (USD 143.4 million), the French state-controlled nuclear group said in a
statement on Monday. Both firms have exploration activities in Mongolia.
The stake sale to Cameco, which will subsequently own a stake of nearly 70 percent in the
Millennium project, will help cut Areva's net debt and finance its strategic and safety investment
program. Areva said it would, however, benefit from royalties if new uranium resources were
discovered for the mine, which is located north of the Canadian province of Saskatchewan.
Source: Reuters

6. ECONOMY
PEACE BRIDGE TO BE EXPANDED
The government is planning for a three-phase project that would expand Peace Bridge to reduce
automobile traffic coming into the city center.
Due to the growing population and car ownership, traffic into the city center has grown worse with
each passing year. Using financing from the Asian Development Bank, the government plans to
employ this project to reduce traffic and create the environment for a safe railroad system.
An economic study for the expansion to the bridge will be ready by August, with construction to
begin in spring 2013. The project includes plans for a special lane designated for buses on the 42.5
kilometers of road to be built. The project is a part of the larger Investment for Ulaanbaatar's
Public Transportation initiative.
Source: Undesnii Shuudan
GOVERNMENT TO AUDIT LICENSED AREAS WITHIN PROTECTED BOUNDARIES
The finance and mineral resources ministries will lead audits over the special-licensed areas within
the bounds set by the law banning mining activity at environmentally protected areas.
At a cabinet meeting it was decided that Minister of Finance D. Khayankhyarvaa and Minister of
Mineral Resources and Energy D. Zorigt would be handed the responsibility for conducting arbitrary
audits over the select areas. The areas comprise 124 special licenses owners for the exploitation of
gold deposits. The government expects to obtain MNT 102.3 billion from special license holders for
the environmental damage inflicted by mining operations.
Source: Montsame
CRIME ON THE RISE
Crime has increased 12.1 percent from a year ago. Mongolia experienced 9,613 crimes nationwide
from January to May, an increase of 1,066 reported crimes.
The increase is comprised of growth in crimes related to ownership rights, traffic and motor
vehicle, violence, and the environment. This year 3,539 people were injured and 456 died from
crimes. The number of injured people increased by 226 people, or 6.8 percent, while the number of
deaths fell by 80 people, or 14.9 percent.
Source: Montsame
MONGOLIA RANKS NINTH AMONG DEVELOPING COUNTRIES FOR RETAIL EXPANSION
Mongolia ranked ninth on A.T. Kearney's Global Consumer Institute, a ranking of the top 30
developing countries for global retail expansion.
Brazil placed first for the second year in a row, driven by a growing middle class economy, high
consumption rates, a large, urban population, and reduced political and financial risk. The index
analyzes 25 macroeconomic and retail-specific variables to help retailers devise successful global
strategies and to identify emerging market investment opportunities.
"Given the accelerated growth rates of developing countries compared to the anemic growth in
European and North American markets, global retailers must have a strategy for expansion into
developing markets," said Michael Moriarty, A.T. Kearney partner and study co-leader, said.
While the world's largest developing markets—particularly the BRIC nations of Brazil, Russia, India,
and China—still tempt the largest global retailers, and show no signs of slowing down as a source of
growth, many smaller untapped markets are providing new growth opportunities. New countries in
the 2012 index include "small gems," such as Georgia (sixth), Oman (eighth), Mongolia (ninth), and
Azerbaijan (17th) that are showing progress as attractive destinations for global retailers,
particularly specialty and luxury players. These markets, though small in total retail-market size,
have strong fundamentals that appeal to retailers targeting a concentration of wealth and seeking
to be the first movers in fast-growing markets.
One of the key lessons learned over the 11 years of analyzing international retail expansion is the
importance of finding and developing local talent to make global expansion a success. New markets

7. are only as effective as their workforces, and harnessing the local talent pool is critical for reaching
customers.
Source: A.T. Kearney
ULAANBAATAR AMONG REGION‟S LEAST EXPENSIVE CITIES
Ulaanbaatar ranks 39th on an index of 210 cities that measure their living expense levels.
Tokyo tops the ranking, regionally and globally. The Japanese yen has remained strong and Tokyo
remains the most expensive location in the region. Singapore, which has moved rapidly up the
global ranking to 31st place in recent years, has firmly secured its position among Asia‘s top ten,
moving from eighth to sixth place. The most expensive locations in Mainland China are Beijing, at
35th place, and Shanghai, at 41st.
Locations in Pakistan come at the bottom of the regional ranking, with Karachi ranked 237th
globally.
Source: News.mn
MONGOLIA LOOMS FURTHER ON AUSTRALIA'S SHARE OF ASIAN COAL MARKET
Mongolia is looming as a serious competitor to Australian mineral exports to northern Asia. Already
it supplies 44 percent of the coking coal imported by China, compared with Australia's 22 percent
market share.
But there is also the looming threat that a new railway could mean Mongolian coal can be supplied
more cheaply and quickly to Australia's large markets in Japan and South Korea. It takes a built
carrier up to 17 days to haul coal from Newcastle to a South Korean port. Once a proposed new
Mongolian rail line is built, it will take just three days to transport coal to ports in Siberia and just a
few days sailing across the Sea of Japan.
The biggest of all the projects in the plan to built a 1,100-kilometer railway from the Tavan Tolgoi
deposit to the Siberian coast to access the Japanese and South Korean markets. Meanwhile,
Australia's Aspire Mining Ltd., which claims to have the third largest coking coal resource in
Mongolia, is to benefit from a new 406-kilometer Erdenet-Moron railway.
The top 10 deposits in Mongolia are said have a combined minerals value of USD 2.75 trillion. But
even smaller projects have been of interest in the big foreign players. The Japanese, for example,
have been very active in trying to nail down rare-earths projects in the country.
Source: The Australian
MONGOLIA MAY BE A MODEL TO OTHERS
As the newly anointed "über-optimist" cited by David Pilling in his article "Whoa there: Mongolia is
not yet the new Qatar,‖ (31 May) may I first amplify the rationale underpinning the validity of my
comparison of the pace and nature of the respective economic development of both counties: an
analysis he refutes in somewhat caustic fashion.
In the past five years, notwithstanding the global financial crisis, Mongolia's gross domestic product
has grown by 128 percent rising in dollar terms from USD 4.03 billion to USD 7.88 billion, an
achievement worthy of some recognition. Second, in addressing your Asia editor's pervasive theme
of underlying negativity, Mongolia is indeed a young democracy still striving to emerge from relative
poverty, which faces many of the development challenges he identifies. These are currently
exacerbated by the slowdown in the (perhaps misnamed?) advanced economies. Nonetheless, prior
negative experiences elsewhere should be viewed merely as prologue not destiny.
Mongolia's political leaders (both in government and on both sides of the political spectrum engaged
in this month's parliamentary elections) remain cognizant of those combined elements of challenge
and opportunity. They and others tangentially involved in supporting their endeavor are, for the
most part, guided by an unstinting commitment to do their best to achieve material progress as a
model of regional development while eliminating poverty, improving welfare and striving to
eradicate rent-seeking and corruption.
Our leaders are sublimated neither by fear against which your writer cautions nor the apparent
hubris he propounds from his initial transitory exposure to our nation and its governance. Should

8. Mongolia successfully achieve the positive social and economic transformation that its citizens
merit, then, rather than striving for other contemporary national comparatives, future assessments
of the country's progress may perhaps echo Pericles' encomium to Athens (in somewhat more
propitious times) 2,600 years ago in declaring: "We shall be as a model to others and a follower of
none.
John P. Finigan is chief executive of Golomt Bank of Mongolia. He is responding to the Financial
Times article "Whoa There: Mongolia is not yet the new Qatar.‖
Source: Financial Times
WILL INVESTORS STAY THE COURSE?
Recent headlines from Mongolia have reminded investors that the country is still a young
democracy, barely 20 years old, and discovering what it means to have global investors and media
watching its every move.
At the beginning of the year, the Economic Intelligence Unit forecast Mongolia to be the second
fastest growing economy in the world in 2012 with a 14.8 percent gross domestic product (GDP)
growth rate. Growth in the first quarter outperformed that forecast with real GDP expanding 16.7
percent year-on-year (nominal expansion over 30 percent),
On 28 June, Mongolia will undergo its sixth national election since the withdrawal of Soviet rule.
The ferocious competition among political counterparties could not be more intense. The stakes are
high for politicians seeking to participate in Mongolia's next four years of growth with the country
forecasted to be the fastest growing economy globally. And while turbulence facing investors in the
pre-election lead up has tested even the strongest of nerves, the conviction to stay the "investment
course" despite continued electioneering over the next 18 days may well prove to be a very wise
investment decision for the next 18 months (and 18 years) in a highly promising investment
destination.
Source: Resource Investment Capital
AGENCIES TRAIN WITH GIS FOR DISASTERS
Whether it be quickly rising waters, freezing temperatures, or earthquakes, the intensity and
frequency of disasters in the world, and Mongolia is no exception. With all this uncertainty, disaster
officials and scientists are taking advantage of new technology that will help decision makers
embed quick and effective response mechanisms.
The Geographic Information System (GIS) is a computer-based application that utilizes location
information. Its use before, during, and after an emergency can greatly enhance the government's
ability to respond more effectively during and after and emergency.
The U.S. Army Corps of Engineers (USACE) brought three GIS specialists to Ulaanbaatar in May to
share their knowledge and skills with Mongolian government agencies. Representatives from the
Mongolian Armed Forces, Border Forces, the National Emergency Management Agency (NEMA), the
Ulaanbaatar city government, and the Weather Forecast Institute worked side-by-side to train with
the equipment and enhance their response to a variety of hazards Mongolians face. The training
focused on deriving quick and accurate results that can be visualized on a map.
―Having an opportunity to learn the skills featured in this workshop will help me in my everyday
job,‖ said S. Tumurchudur from the Mongolian Water Authority. ―GIS can assist in so many ways,
and I am thankful for the opportunity to learn more about the technology and its use in emergency
management.‖
Over the course of three days, participants in the GIS workshop got the opportunity to practice
their skills with the software and analyze various types of remotely-sensed data, and employ
disaster models. The workshop also featured the use of the Global Positioning System (GPS) and
how it can be used in real time with GIS.
Source: News.mn
COMMODITY PRICES IN “NO MAN'S LAND,” SAYS BARCLAYS
Commodity prices are currently situated in ―no man's land‖ with the prices not yet low enough to

9. reflect near recessionary conditions, while being too low for producers to continue growth, said
Barclays PLC researcher MD Kevin Norrish.
Much volatility was being seen in the commodities market, with a fast and hard fall in prices—
possibly the fastest since the 2008 global financial crisis—as markets price commodities with a
pessimistic outlook for the global economy. Speaking at a commodities outlook media briefing in
Sandton, he noted that the copper price had fallen about USD 1,500 a ton over the past few
months, while oil fell USD 25 a barrel and gold dropped USD 200 an ounce.
Norrish believed that the price action was impacted as many industry players were anticipating a
bleak economic outlook on the back of nervousness surrounding the euro zone, a possible dip back
into recession and Chinese data reigniting fears of a ―hard landing.‖ However, he suggested it was
difficult to see any signs that the fundamentals of the commodity industry were as bad as the price
action suggested.
Norrish stated that the current prices were ―just not sustainable‖ and would start a slow rise during
the third quarter of 2012, with base and precious metals showing the largest gains.
Source: Mining Weekly
BHP CUTS OUTLOOK FOR COMMODITY PRICES
In its latest review of the international forecasts, BHP Billiton Ltd. reduced its medium-term
outlook for commodities prices, according to people familiar with the matter, who added the cuts
were small and did not affect the longer-term view of the market.
The London Metal Exchange index, a basket of six metals, has dropped nearly 30 percent from its
most recent peak reached in April 2011. The price of copper, aluminum, lead and nickel is down
year-to-date. Tin and zinc prices are up.
Investors look to raw materials for clues about oil, mining, agribusiness and trading companies'
internal outlooks, to anticipate changes in the cycle. The downgrade by BHP Billiton is likely to
cement the view that the decade-long commodities supercycle on the back of China's
industrialization has peaked. Internal commodities forecasts are important because natural
resource companies use them to assess the profitability of their pipeline to investment projects.
The mining industry is unlikely to step back from any big project entirely, but developments could
be reduced in scope or proceed more slowly, executives said.
Rio Tinto PLC, which together with BHP Billiton accounts for about a third of the industry's capital
investment, has also said it is reevaluating spending plans. Glencore International PLC and Xtstrata
Ltd. have indicated they will focus on expanding current mines rather than build new ones.
Source: Financial Times
COPPER HITS SIX-MONTH LOW AMID CHINA CONCERNS
Copper tumbled to its lowest since December on Friday after China's surprise rate cut stoked fears
of a slowdown in the world's second largest economy, and as the United States appeared to rule out
any imminent stimulus measures. The metal, seen as a barometer of global economic health and a
major export to Mongolia, is on track to extend its losing streak to a sixth week, it‘s longest in two
years.
"China eased yesterday, which has set off more of a panic that the data coming out at the weekend
could be pretty grim. Markets would like a coordinated round of policy and cuts, but so far it is only
China and it's more of a token offering that anything else," analyst Robin Bhar of Societe General
said.
China surprised investors on Thursday with its first interest rate cut since late 2008 that initially
buoyed financial markets, until worries emerged that the move may be aimed at preempting a slew
of gloomy economic data for May. Reuters polls published earlier in the week suggest the world's
second-largest economy probably showed signs of stabilizing last month from a surprisingly weak
April, but now those expectations are in doubt.
China accounts for around 40 percent of refined copper consumption, although as much as 80
percent of imports are not used immediately by industry, but by investors as collateral to secure
cheaper loans.

10. Source: Mining Weekly
MINERS SET TO RETURN TO HEDGING
As the mining industry looks to debt markets from equity funding to meet its financing needs, it is
likely to return to commodity hedging.
Small and medium-sized mining companies are turning to the debt markets for funds, as volatile
equity markets stem traditional sources of funding for the industry. The interests of equity holders
and bondholders differ strongly: shareholders prefer unobstructed exposure to the commodities
cycle, while investors in bonds want secure cash flows to guarantee repayments.
Over the last decade, shareholders have held the upper hand, convincing mining executives to
abandon or, at the very least, minimize hedging. Only a handful of miners have continued the
practice, and mostly of by-products—for example, gold in a copper-gold mine, as is Oyu Tolgoi LLC's
strategy for its own mine. The pressure from equity investors has been so intense since 2005 that
even the gold miners all but stopped the practice in recent years.
The shift is likely to affect the big five—BHP Billiton Ltd., Vale SA, Rio Tinto PLC, Anglo American
PLC, and Xstrata Ltd.—which have multiple options to tap liquidity. These five miners have sold
more debt recently but mostly to lock in low interest rates, rather than because of a lack of access
to other sources of liquidity.
But medium-and small-sized miners listed in London, Toronto, Johannesburg and Sydney could soon
feel the pressure from bondholders to lock in prices to secure cash flows—particularly in
commodities whose prices are still well above marginal costs, such as two of Mongolia's major
export commodities, copper and iron ore.
Source: Financial Times
SELLING ABROAD, CHINA EASES SLUMP AT HOME
China's General Administration of Customs announced on Sunday that exports had surged 15.3
percent in May from a year earlier, twice as fast as economists had expected and vaulting May past
last December as the biggest month ever for Chinese exports. The news comes amid concerns that
the country, whose consumption is largely responsible for Mongolia's growth, is edging towards a
"hard landing."
China's renewed success relies heavily on the American market, with Chinese exports to the United
States soaring 23 percent in May from a year earlier, the data on Sunday showed. Chinese exports to
the European Union rose only 3.2 percent.
Underpinning China's export success is a combination of long-term investments in automation and
short-term depreciation of the currency. Rising Chinese labor costs have no yet meant relief for
China's rivals in other developing countries, Japan and the West, partly because automation is
offsetting an erosion in Chinese competitiveness.
As the domestic Chinese economy slows, the government is also counteracting some of the pain by
taking currency actions to help exporters, allowing the renminbi to fall nearly 1 percent against the
dollar last month. Tightly controlled by the government, that fall was the largest drop since Beijing
officials unpegged the currency from the dollar in July 2005. The weaker renminbi makes Chinese
goods cheaper abroad and imports less affordable in China. The fundamental shift in inflation has
given a competitive advantage, as producer price increases fall to below that of the United States.
The biggest question mark is the extent to which manufacturers can continue to offset rising labor
costs with investments in automation and the reorganization of often-inefficient work practices.
China's current Five-Year Plan calls for industrial wages to rise 13 percent a year through 2015, and
some cities have been raising their minimum wages even faster. By contrast, productivity per
worker is rising only half as fast as wages. Many mainland Chinese and Hong Kong companies have
started diversifying production by opening factories in Southeast Asia, where wages are now lower
than China. But many others compare the infrastructure and bureaucracies there unfavorably to
China's.
Source: New York Times

11. IMF FORECASTS 4 PERCENT GROWTH FOR RUSSIA IN 2012, 2013
The International Monetary Fund has forecasted for continued economic growth in Russia, along
with underlying inflation. Russia has traditionally been Mongolia's favored trading partner, although
the majority of trade is now with China, as well as an important political ally.
―The outlook is for continued moderate growth and a rebound in inflation,‖ reported the IMF.
―Under unchanged policies, we project growth of about 4 percent both in 2012 and 2013.‖ It added
that underlying inflation would remain above 6 percent.
Since its recovery from the 2008-09 crisis, Russia is now running close to its potential. High oil
prices, strong wage growth, and robust consumption have supported demand. However, continued
turbulence in the global markets is affection Russia mostly through oil prices. Its reliance on oil
exports exposes Russia to declining oil prices.
Russia is advised to promptly reinstate a ―fiscal anchor‖ that would guide medium-term fiscal
policy, decoupling the fiscal stance from short term variations in oil prices and ensuring
intergenerational equity. Monetary policy should aim to secure low and stable inflation and a
stronger supervisory framework is key to facilitating sound financial intermediation.
Source: International Monetary Fund
POLITICS
PRESIDENT URGES GLOBAL SUPPORT OF ANTI-CORRUPTION EFFORTS
President Ts. Elbegdorj has made a call to the United Nations, European Union, United States, and
other global allies to support Mongolia's efforts to clamp down on public corruption.
Earlier this spring, following widespread public reports of misdeeds, the Independent Authority
Against Corruption (IAAC) called for the arrest of Enkhbayar after he refused to receive subpoenas,
which detailed numerous corruption-related violations of the Mongolian Criminal Code. Since the
IAAC's first subpoenas were issued to Enkhbayar over one year ago, in May 2011, the IAAC initiated
27 separate investigations, ranging from embezzlement to extortion and bribery.
Since his 13 April arrest, Enkhbayar has had unfettered access to legal counsel as well as both
domestic and international news media. He has been treated with respect and accorded his full
human rights and protections afforded to any criminal defendant under Mongolia's Constitution.
Now out on bail, Enkhbayar's trial was to begin on 12 June.
The independent General Election Commission (GEC) ruled on 6 June, after an eight to one vote,
that Enkhbayar was ineligible to run for a seat in Parliament due to the pending criminal allegations
against him. The GEC is an autonomous body with a head appointed and members approved by
Parliament. In the meantime, much of the international coverage of this case has been wildly
inaccurate, distorted by a sophisticated public relations campaign on Enkhbayar's behalf.
"Mongolia's growth into a mature democracy requires continued work to eliminate the scourge of
corruption that otherwise will hinder the progress of our democratic system," said President Ts.
Elbegdorj. "Mr. Enkhbayar's case is one of nearly 20 high profile corruption cases. Freedom and
corruption cannot co-exist together."
The IAAC was established in 2006, during the presidency of Enkhbayar, and is headed by a former
police officer. Today, the IAAC stands to ensure transparency and accountability in government,
and advance the goals of the U.N. Convention against Corruption (UNCAC). The authority has a
chairman and deputy appointed by Parliament, which is controlled by the Mongolian People's Party,
which Enkhbayar previously lead.
Source: The Office of the President of Mongolia
PRESIDENT DEFENDS ACTIONS AGAINST ENKHBAYAR
President Ts. Elbegdorj said efforts to prosecute his predecessor for alleged graft are not politically
motivated and instead are part of a ―hard fight‖ against corruption.
In a telephone interview, Elbegdorj said Mongolia would remain a ―beacon of freedom in our
region‖ that welcomes foreign investment. The comments follow a law passed last month capping

12. future foreign participation in some industries, as well as international criticism of the case against
his predecessor and rival on the eve of a crucial parliamentary election.
Analysts say corruption is a threat for Mongolia, especially as they see policy-making grow
increasingly nationalistic. A law passed last month, for instance, is designed to limit foreign
investment by requiring special approvals for majority stakes in sectors including resources,
finance, telecommunications and media. Elbegdorj suggested the investment cap in the law would
be felt mostly by government-backed companies, such as those based in China, and that the policy
has broad support.
―If they come to Mongolia, if they would like to buy some shares, there are some limits,‖ he said.
―For other foreign investments or other sectors, there is a big open door,‖ he said.
The president said he worries the corruption case against his predecessor is beginning to damage
Mongolia's ―high image‖ as a nation that shares values with the United States. He said international
opinion on the Enkhbayar case has been shaped too much by Enkhbayar's media-savvy family and
the accused‘s ―sideshow in order to avoid justice.‖
Enkhbayar, who remains a popular figure, denies allegations he profited in office and says his arrest
in April and the relatively limited scope of charges against him suggest prosecutors found little
problematic from his years as president, prime minister and speaker of Parliament. Outsiders say
whatever the facts are about Enkhbayar's actions, they are critical of the process.
―You can't build an anti-corruption process on a bunch of politically driven and flawed steps,‖ said
Mark Minton, who served as U.S. Ambassador to Mongolia from 2006 to 2009. ―The way they handle
this case is important. It's an indicator of how they will proceed.‖
Source: Wall Street Journal
ENKHBAYAR'S TRIAL POSTPONED TO 21 JUNE
Mongolia's former leader N. Enkhbayar said Tuesday the decision barring him from running upcoming
elections was ―illegal,‖ as his corruption trial was postponed for the third time.
Enkhbayar—who had planned to run in parliamentary polls on 28 June before being barred from
doing so last week—faces five counts of graft dating back to his time as prime minister and
president of the impoverished country. But on Tuesday his hearing was postponed for the third time
after he complained of not having enough time to go over the case files, and because his lawyer had
left the city
―The election committee denied my application to be a candidate. That was illegal so I gave a
letter to the Constitutional Court to reconsider my candidacy for the election,‖ said Enkhbayar.
The country's election committee last week denied Enkhbayar's application to run in the polls on the
grounds that he did not meet the necessary qualifications to become a candidate. The former
president—who is the head of the Mongolian People's Revolutionary Party—was rejected based on an
election law that states that a candidate must display proper experience, education and
commitment to the country.
Enkhbayar had been attempting a political comeback but was arrested in April at the order of the
Independent Authority Against Corruption. His trial has already been postponed twice, and on
Tuesday the head judge said it would be rescheduled again to 21 June.
Enkhbayar argued that his lawyer was a candidate for the upcoming election and would be in the
Gobi then. The judge, however, said the trial would go ahead with or without his lawyer.
Source: Michael Kohn
GOVERNMENT RELEASES A FULL LIST OF CANDIDATES
A total of 544 candidates from 11 political parties and two coalitions will run in the 28 June
parliamentary election. A full list of the candidates was released on 14 June.
The majoritarian method will be used for 354 of the candidates running in 26 election
constituencies, while 190 candidates will be subject to the proportional method by lists suggested
by the political parties. Additionally, 26 independent candidates will run via the majoritarian
constituencies.
This year's election includes 174 female candidates. The oldest candidate is 70 years old, while the

13. youngest is 26.
Source: News.mn
JUSTICE COALITION REVEALS PARTY PLATFORM
The Justice Coalition unveiled its political platform to reform the nation and cast out oligarchies
this week in a press conference. The coalition is a political pact between the Mongolian People's
Revolutionary Party (MPRP) and the Republican Party.
The party focused on the failings of the current constitution, calling for a new fifth constitution
that would address promises left unfulfilled and the so-called oligarchy regime that it says hinders
human development and serves only the few. The coalition representatives promised to distribute
even more of the wealth gained from the Tavan Tolgoi coal mine. They proposed to distribute to
the population 100 percent of shares of Erdenes-Tavan Tolgoi JSC, the state-owned firm operating
the mine's eastern block, rather than the 20 percent already distributed. It also vowed for changes
to the Oyu Tolgoi agreement that would be more favorable to Mongolia and its citizens.
MPRP Secretary Ch. Ulaan said that denying Enkhbayar his candidacy on the account that he does
not meet the requirements outlined by the election law was unconstitutional. Enkhbayar has called
his arrest and upcoming trial ploys to keep him from returning to power. At the press conference he
implied that his recent arrest following his decision to release information on the July 2008 riots
was no coincidence.
―I have not much information about the police officers whose cases were recently finalized in
court,‖ said Enkhbayar. ―I wasn't called as a witness. This is a political farce trying to cover up the
mess from the last election.‖
Enkhbayar held current president Ts. Elbegdorj and MPP member S. Bayar as directly responsible for
the 2008 tragedy that left five dead after riots broke out following news that the election had been
fixed.
In addition to additional stocks in Erdenes-TT, Enkhbayar promised, on behalf of the MPRP, to open
savings accounts for every citizen, and to establish a 400-member governing board to the company
that would be comprised of representatives of Mongolia's 330 residential districts. He also criticized
Elbegdorj for the current government's failure to fulfill its promise of distributing MNT 2.5 million to
each citizen.
Source: Zuunii Medee
MONGOLIANS LIVING ABROAD CAST THEIR VOTES FOR FIRST TIME
Mongolian citizens living abroad have voted for this year's election this week. This is the first time
Mongolians living outside the country have been given the opportunity to participate in elections.
According to unofficial figures from the Ministry of Foreign Relations, of the 33,000 Mongolian
citizens living abroad eligible to vote, 2,777 voted in the election. Citizens were able to vote at the
39 diplomatic missions in 19 different countries from 7 a.m. To 8 p.m. on 10 June.
The greatest participation in the election from abroad came from Russia. Representatives from the
Mongolian People's Party (MPP) and the Democratic Party (DP) traveled as observers to Irkutsk,
Seoul, Beijing, and London. Ballots arrived in Mongolia in specially sealed containers that were sent
directly to the General Election Committee. The votes will be counted on election day, 28 June,
along with all other ballots from around the country.
Source: Undesnii Shuudan
TYRANNOSAUR IS TRULY MONGOLIAN, EXPERTS DECLARE
The dinosaur skeleton auctioned in May but then protested by President Ts. Elbegdorj has been
confirmed to have been taken out of Mongolia, most likely within the past 10 years.
"We have pulled a lot of them out of the ground and seen a lot of others come out of the ground,
and in our professional opinion it is from Mongolia," said Mark Norell, a paleontologist at the
American Museum of Natural History, who began working in Mongolia in 1990.
Norell and fellow investigator Philip Currie, a paleontologist at the University of Alberta, first
announced their findings to reporters last Wednesday, 6 June. Two Mongolian paleontologists also

14. assessed the fossils and came to the same conclusion.
It is not yet clear how this conclusion will affect the sale of the specimen. The 75 percent complete
skeleton of the Tarbosaurus, or the Tyrannosaur baatar, was sold on 20 May to an anonymous bidder
for USD 1.1 million on condition that the sale receives court approval. Heritage Auctions, which
handled the sale, has cooperated with the Mongolian investigation into its origins. It allowed
paleontologists and representatives of the Mongolian government access to its facility, where it
found 12 specific characteristics of the bones that indicate it belonged to a Mongolian Tarbosaurus.
Remains of this species have only been found in the Nemegt Formation in Mongolia's portion of the
Gobi Desert.
"I have no doubt that the Tarbosaurus baatar will be returned to Mongolia," said P. Tsagaan, senior
adviser to President Ts. Elbegdorj.
The conclusion did not come as a surprise as the poaching of fossils in Mongolia has intensified over
the years, according to paleontologists. Unskilled poachers often will take the teeth and claws off a
specimen, leaving or destroying the rest, said Currie. This Tarbosaurus is missing most of its claws
and teeth. The rest of the specimen was removed by excavators with more skill, but even so the job
was not well done, he added.
Source: Fox News
HU AND ELBEGDORJ EXCHANGE COURTESIES
President Ts. Elbegdorj met with Chinese President Hu Jintao at the Shanghai Cooperation
Organization (SCO). Both state heads expressed gratitude towards one another for their continued
partnerships in this event and in general. Each agreed they had a desire to strengthen ties,
economically and politically, between their respective nations.
―Developing long-term, sustainable friendly relations and cooperation with the PRC is one of the
priorities of Mongolia's foreign policy,‖ said Elbegdorj. ―I am confident that a new cabinet to be
formed after parliamentary elections will continue and keep this policy.‖
The Mongolian president in his comments emphasized the importance of bilateral relations, and
that his nation was keen on maintaining high-level visits from both sides while deepening
collaborations between their legislative bodies and political parties in the interest of political
relations and mutual trust.
Hu thanked Elbegdorj and his nation for imparting great importance on their ties. He said China
would like to have a role in Mongolia's development, and hopefully the two nations could develop
side by side.
Source: Montsame
INDIA LOOKS TO TAP INTO CENTRAL ASIAN MARKETS
After finally managing to give some teeth to its Look East Policy, India has now embarked on a
Connect Central Asia Policy to tap the energy-rich region which is dominated by China and Russia.
India has shown interest in Mongolia for its uranium and coking coal deposits.
India is still struggling to become a member of the Shanghai Cooperation Organization, a forum to
which Mongolia is an observer, but it is looking at increasing its engagement with the region through
this policy based on pro-active political, economic and people-to-people engagement with Central
Asian countries, both individually and collectively.
India is struggling to build economic links that match its political and cultural interaction with its
trade with the whole region, which is at a relatively low level of around USD 500 million.
―We face some natural obstacles like limited land connectivity and the limited size of the Central
Asian markets. India has thus not seen the sort of commercial interaction in Central Asia which we
saw in Southeast Asia, East Asia, and West Asia,‖ said Minister of State for Foreign Affairs E. Ahmed.
Source: Times of India
NUCLEAR ENERGY AGENCY REVOKES 21 ILLEGALLY ISSUED LICENSES
The Nuclear Energy Agency has canceled 21 licenses issued on 13 January that it claims were
illegally approved.

15. The agency claims former head of the agency S. Enkhbat illegally issued 21 licenses to eight
companies on 13 January between 4 and 6 p.m., just before his dismissal. The agency calls the
alleged act a serious breach of the President's decision and Mongolian law which prohibit the
issuance of any new special mining licenses.
The companies that had received those licenses have filed their grievances with the court.
Meanwhile, the Ulaanbaatar City Office ruled last week that the special licenses given to Prime
Energy Nadar Resource, National Uranium Resources, Monnuclear, Mongol 3000, and Tom Zam were
illegally issued.
Source: Zuunii Medee
MINISTRY PROVIDES UPDATE ON PROTECTED LAND
The Ministry of Energy and Minerals reported to government its enforcement of the law banning
mining operations at select areas for environmental protection.
The law, which prohibits mining activity at areas nearby forestry and bodies of water, has resulted
in the cancellation of 242 mining licenses, reported Minister D. Zorigt. Sixty-nine of those licenses
have been completely terminated, while 36 have been only partially so. The law establishes borders
to the 1,400 licensed areas with exception for gold deposits. Licenses have been issued for 14
percent of Mongolia's territory, with some 20 percent of that now being preserved. Protected land
will undergo geological study, with 40 percent of that land classified as state reserve.
Zorigt has stated that he believes that the ban on the issuance of new licenses will likely be upheld
for at least the next five years.
Source: Zuunii Medee
COURT SENTENCES POLICE OFFICERS FOR DEATHS IN JULY 2008 RIOTS
Former authorities from the General Police Department have been sentenced for their involvement
in the deaths during the July 2008 riots.
Last Thursday was the end of the long trial of the officers accused of firing live ammunition into a
crowd after a protest became violent. The protest erupted on 1 July following news that the 2008
election was fixed to favor the Mongolian People's Party. The riot resulted in the death of five
individuals, four of which were related to gunshot wounds, and many injuries.
Major-General Ch. Amarbold, a former acting head of the General Police Department (GDP), and
Colonel Sh. Batsukh, a former head of the Patrol and Security Department, were sentenced to six
and a half years for the incident. The court sentenced Lieutenant-Colonel G. Ganbaatar, a former
head of the Order Section, to two years and Colonel O. Zorigt, a former head of the city's police
department, to five and a half years.
After the sentencing was announced, J. Yarinpil, Amarbold's lawyer, said he would appeal the
decision.
Source: Montsame
OFFICERS LEARN TO RESPECT HUMAN RIGHTS IN PUBLIC DISORDERS
The General Police Department and the Human Rights Council held a training on human rights for
law enforcement.
The training included participation from directors and vice directors of local police departments as
well as the director of criminal offenses and representatives from police units for the training,
entitled ―Public Order and Human Rights.‖ The training instructed officers how to respect human
rights during cases of public disorder.
Source: Udriin Sonin
ENVIRONMENTAL ACTIVISTS TO STAND TRIAL
A trial for environmental activists for violent acts committed against mining firms began this week.
Head of the United Moved for Rivers and Lakes, Ts. Munkhbayar, and members of the associated
organization stood trial this week for allegedly shooting at equipment belonging to Puraam and
Centerra Gold Inc., which both operate near Tunkhel Soum in Selenge Aimag, on 2 September. If

16. found guilty, those charged could be sentenced between 5 to 10 years in prison, forced to perform
public services, or pay a fine.
Source: News.mn
PARTNERSHIP OF CONVENIENCE
President Vladimir Putin's latest visit to Beijing comes at a time when relations between Russia and
China appear to have reached new heights.
Russian and China differ fundamentally in their views of the world and what they want from each
other. For Moscow, partnership with China serves as a counterbalance to dominance by the United
States, it sets a "success by association" that helps legitimize Putin's regime, and gives added
leverage to Moscow with the West. With China by its side, Russia feels able to promote itself as a
global great power, one of the "winners" in a post-America century.
China's Russia agenda is preventative. It was to ensure a good neighbor and avoid a spoiling and
destabilizing presence in Northeast Asia. It seeks a like-minded state that won't oppose its economic
and security interests in Central Asia. Yet, it has no interest in revolutionizing an international
system from which it has benefited greatly, or of supplanting U.S. global leadership.
Although the Sino-Russian partnership functions on mutual convenience for now, this
accommodation will come under real pressure over the next decade. The biggest weakness is the
widening gap between a dynamic China and a non-modernizing, politically sclerotic Russia. For all
the talk in Moscow about the decline of the West, it is Russia that could be the greatest casualty of
the "global shift in power to the East" as it fails to adapt to the demands of a post-industrial age.
The time will come when the differences between Russia and China cannot be so easily fudged.
Within the next 10 to 15 years, China will be the world's largest economy, a much more confident
international player, and almost certainly the leading power in Northeast Asia and Central Asia. Will
Russia, in reaction, become a niche provider of natural resources or finally abandon the constraints
of anachronistic strategic culture and gravitate toward the West again?
Bobo Lo is an independent analyst and author of "Axis of Convenience: Moscow, Beijing, and the
New Geopolitics."
Source: New York Times
NEW MONGOLIAN LAWS
The following laws and amendments, addenda and annulments of/to laws were published in the
latest weekly Government bulletin. Unless otherwise decided by Parliament, they will take effect
ten (10) days after publication.
Date Laws
12.06.2012 Amendments to Law on Environmental Protection
Law on Fee for Natural Reserves Use /revised version/
Addendum to Law on Fee for State Sign
Annulment of Law on Fee for Natural Plant Use
Annulment of Law on Fee for Consumable Tree, Firewood Made from the Forest
Annulment of Law on Percentage of Capital Spent on Environmental Protection
and Rehabilitation of Natural Reserve from Natural Reserve Use Fee Income
Annulment of Law on Fee for Hunting Reserve Use, Fee for Permit for Animal
Hunting, Catching
Annulment of Law on Fee for Water, Spring Water Reserve Use
Law on Assessment of Environmental Impact
Amendments to Law on Mineral Resources
Amendments to Law on Land
Law on Soil Protection, Prevention from Desertification
Law on Waste

17. Annulment of Law on Domestic and Industrial Waste
Annulment of Law on Prohibition on Dangerous Waste Import, Transportation,
Export
Annulment of Law on Prohibition on Use of Some Plastic Bags
Law on Forest /revised version/
Annulment of Law on Protection of Forest, Land from Fire
Annulment of Law on Forest
Amendments to Law on Fire Safety
Amendments to Law on Protection from Disaster
Law on Air /revised version/
Annulment of Law on Air
Annulment of Law on Decreasing Capital City's Air Pollution
Amendments to Law on Air Pollution Fee
Law on Animals
Annulment of Law on Hunting
Annulment of Law on Animal Species
Amendments to Law on Special Permits for Business Activity
Law on Water /revised version/
Annulment of Law on Spring Water
Annulment of Law on Water
Addendum to Law on Corporate Income Tax
Addendum to Law on Government's Special Fund
Law on Water Pollution Fee
Addendum to Law on Budget
Amendments to Law on General Taxation
Please visit BCM's website, Legislative Working Group, for a summary of new Mongolian laws. BCM
members who wish to access complete versions of the laws and regulations in Mongolian language
are welcome to email the BCM office: info@bcmongolia.org.
ANNOUNCEMENTS
MINExpo INTERNATIONAL 2012, LAS VEGAS, 24-26 SEPTEMBER
The Business Council of Mongolia (BCM) with the support of the U.S. Embassy‘s Commercial Section
in Ulaanbaatar is now registering a Mongolian business delegation to participate in ―MinExpo
International 2012‖ which will be organized at the Las Vegas Convention Center on September 24-
26, 2012.
MinExpo International 2012 is the world's largest and most comprehensive exposition dedicated to
mining equipment, products and services. More than 1,400 exhibitors in eleven exhibit halls will
display the latest technology, equipment, components, parts and services for exploration,
extraction, safety, environmental remediation and preparation and processing of metallic ores,
coal, industrial minerals and more!
Registration deadline is 5 pm, 15 July. Please contact BCM at 70114442, tugi@bcmongolia.org for
registration and additional information about the event.
___________________________________________
REGISTER NOW FOR MONGOLIAN MINING DIRECTORY-2013
Mongolian Mining Directory-2013 which provides information database for Mining companies,
investors, suppliers, service companies, government and non government organizations will be
published for the fourth year to commemorate the 90th anniversary of the Mongolian mining
industry. The MMD is distributed free of charge to international and domestic mining companies,
international conferences and exhibition, embassy offices in Mongolia and foreign countries to

18. investors.
BCM is a Supporting Organization of the MMD and welcomes Mongolian mining industry participants
who are interested in advertising their products and services in Mongolian Mining Directory-2013.
For more information please visit: www.mining.mn, www.mongolianminingdirectory.mn or call
+976-7011 5590.
___________________________________________
REGISTER FOR BCM‟S MINING SUPPLY CHAIN DATABASE AT NO COST
The new version of BCM‘s Mining Supply Chain Database is ready for use. Following the initiative of
Oyu Tolgoi LLC, the BCM has maintained the Mining supply chain database since March 2009. It is
honor to introduce you to the new version of the database which is totally upgraded as to its
content and use of information technology opportunities.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration.
If you have any questions regarding the database, please contact Undral
at undral@bcmongolia.org or 317027.
___________________________________________
“MM TODAY” on MNB-TV, Fridays at 18:30 [TONIGHT]
BCM is pleased to announce 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 for
18:30 tonight! Tune in to watch this program that reports stories from today‘s BCM NewsWire.
___________________________________________
POSTINGS ON MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The new ‗Presentations‘ section on BCM‘s Mongolian website can be reached via link to
bcm.mn/itgeluud. Several presentations already posted include 11 from the 2nd Coaltrans on May
23-24 in UB.
As a key component of BCM‘s Mongolian website ‗News‘ section, articles from the Government‘s
―Open-Government.mn‖ site are regularly posted.
___________________________________________
POSTINGS ON ENGLISH WEBSITE 'PRESENTATIONS', 'MONGOLIA REPORTS' AND „MONGOLIAN
BUSINESS NEWS‟
On BCM‘s English website, ‗Resource, Presentations‘ section, for your review are 12 presentations
from the 2nd Coaltrans on May 23-24 in UB; 5 presentations from BCM‘s May 28 monthly meeting; 3
speeches from ―Corporate Governance Training for Directors‖ on April 27-28; 12 presentations on
Mongolian entities at Mines and Money Hong Kong 2012 on March 21-23; 11 presentations from Coal
Mongolia 2012 on February 9-10; and speeches from all BCM‘s monthly meetings in 2011-12.
Also on BCM‘s English website, ‗Resource, Mongolia Reports‘ section, please note the Polit
Barometer, April 2012 by Sant Maral Foundation (Mongolian and English versions); ―Preliminary
estimates of staggering costs of inefficient trade regulation in Mongolia‖ by Olin McGill, consultant
to USAID BPI; ADB‘s Asian Development Outlook, April 2012; detailed results of BCM‘s NewsWire
survey of March 2012; World Bank‘s Mongolia Quarterly Economic Update, February 2012; and
Executive Summary of the Mongolian Real Estate Report 2012 by M.A.D. Investment Solutions.
We are now posting some news stories and analyses relevant to Mongolia to BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until each Friday to put them all
together in the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday,
and will incorporate items that are already on the home page, so that it presents a consolidated
account of the week‘s events.
___________________________________________

19. SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
Of course for news information, interviews, and announcements regarding our organization, visit
the official BCM website at www.bcmongolia.org and www.bcm.mn.
ECONOMIC INDICATORS

20. 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]
May 31, 2012 *15.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 16.6% y-o-y, Ulaanbaatar city, May 31, 2012
CENTRAL BANK POLICY 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]

21. CURRENCY RATES – June 14, 2012
Currency Name Currency Rate
U.S. dollar USD 1,320.03
Euro EUR 1,653.87
Japanese yen JPY 16.59
British pound GBP 2,055.55
Hong Kong dollar HKD 170.16
Chinese yuan CNY 207.19
South Korean won KRW 1.13
Russian ruble RUB 40.43
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