The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia. Some of the key stories covered include: - Rio Tinto securing a power deal for its Oyu Tolgoi copper mine in Mongolia ahead of a September 30th deadline. - Turquoise Hill Resources working to resolve a tax dispute with Mongolia's government before funding commitments expire for the underground expansion of the Oyu Tolgoi mine. - SouthGobi Resources reporting a narrower loss in Q2 2014 due to higher coal sales volumes, despite significantly lower coal prices.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 338 – August 15, 2014
NEWS HIGHLIGHTS:
Business
 Rio secures power deal for Mongolian copper mine;
 Turquoise Hill aims to end Mongolia tax dispute before deadline;
 SouthGobi narrows Q2 loss on higher sales despite low prices;
 Xanadu intersects 665.7m of copper-gold mineralization;
 MEC announces further extensions of debt repayment moratorium;
 Japan to help launch shrimp farm;
 VIP Taxi launches in August;
 Redundancies expected at MSE as it cuts down on costs;
 MGG reports 32.3 percent growth in same-store rentals for June;
 Mongolian Economy partners with Global Water Partnership;
 Medical equipment exhibition in UB;
 Mongolia-Japan Business Forum concludes;
 Mongolia-Korea Economic Forum convenes;
 Luxury brand Tengri inspires environmental change in Mongolia;
 OT building sports center in Manlai Soum;
 Rio Tinto opens Galba public park in Khanbogd;
 Rio Tinto's cuts are the deepest;
 Centerra's Kumtor mine produces 5.6 tons of gold H1 2014.
Economy
 Mongol Bank: FX auction, swap agreements, 1-week bills, treasury notes;
 USAID’s BPI supports Mongolian tax administration’s new tax e-pay system;
 Mongolia expects a good harvest of crops in 2014;
 Nationwide roads project to complete this year;
 Births, infant mortality on the rise;
 Real household income declines while expenses increase;
 New apartments to replace 21 derelict buildings;
 UB receives online applications from 84,000 for land requests;
 Swine flu outbreak in Bulgan;
 Golden Eagle Festival held in Nalaikh;
 Operation Pacific Angel brings over 70 medical specialists to Mongolia;
 Copper slumps on Chinese demand concern.
Politics
 MPs called out on poor attendance records;
 Cabinet forms copper development team;
 Cabinet approves program to support the arts;
 Minister of Road visits Russia;
 Russian army arrives in Mongolia for joint military exercise;
 Peacekeepers pay tribute to military banner;
 Mongolia to celebrate Chinese culture in August;
 Mongolia awards Kyakhta border service of Russia in Buryatia;
 UB to charge fees for driving in UB city center;

2.  Groups speak out for residents against a Chinese gold miner;
 Case against the Prime Minister`s daughter is dismissed;
 Mongolia deports 427 foreign illegals;
 Cybercrime raises concerns for local businesses;
 Light ahead for Mongolia’s LGBT youth;
 Mongolian-Japanese EPA: Counterbalancing China and Russia – EDITORIAL;
 Is Xi serious about cracking down on corruption? - EDITORIAL.
Others
 Announcements;
 BCM Updates - Working Groups; Websites; Social Networks; Photo Gallery.
ECONOMIC INDICATORS
 Weekly Market Indicators from MIBG;
 Inflation;
 Central bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank International SOS
Wagner Asia Automotive Invest Mongolia Agency
BUSINESS
RIO SECURES POWER DEAL FOR MONGOLIAN COPPER MINE
Rio Tinto PLC on Thursday secured an agreement with the Mongolian government for the
construction of a power generation plant to feed the USD 6.5 billion Oyu Tolgoi copper project,
ahead of a September 30 deadline for a decision on project financing.
The Oyu Tolgoi LLC mining unit will be the primary consumer of energy generated from the power
station, which is expected to be built near Mongolia's state-owned Tavan Tolgoi coal mine. Mongolia
will hold an international tender to select a private company to fund construction and then own and
operate the power plant, said Oyu Tolgoi in a 14 August statement. Mongolia's prime minister,
Norov Altankhuyag, signed the Power Sector Cooperation Agreement (PSCA) alongside the country's
minister of energy, and Oyu Tolgoi's Rio Tinto president and chief executive officer, Craig Kinnell.
Currently the project is sourcing power from China's state-owned Inner Mongolia Power Corp.

3. region. The investment agreement Rio has with the government for the project stipulates that it
must secure a local power source by 2017.
"The PSCA is a positive development for Oyu Tolgoi," said Rio Tinto Copper chief executive Jean-
Sebastien Jacques, in the statement. "It demonstrates how the Government and we can work
together to achieve shared objectives - in this case, developing a long-term, economically
competitive, and reliable power supply in the South Gobi."
Source: Reuters
TURQUOISE HILL AIMS TO END MONGOLIA TAX DISPUTE BEFORE DEADLINE
Turquoise Hill Resources is working to resolve a tax dispute with the Mongolian government before
an extension runs out on funding commitments for the underground expansion of its Oyu Tolgoi gold
and copper mine, the company's chief executive officer said on Tuesday.
"We are all aware of the September 30 date and we are all working toward that deadline," Chief
Executive Officer Kay Priestly said on a conference call with investors, referring to the expiration of
a six-month extension on bank commitments to fund the project. "Clearly the underground is a
significant part of the value of this mine, and right now we're focused on progressing the
underground."
The underground development of Oyu Tolgoi, which is one of the world's largest undeveloped
copper deposits, was put on hold last year when the Mongolian government became concerned that
cost overruns would delay the flow of the government's share of profits from the mine. In May, a
group of banks agreed to extend their commitment to fund the project, but efforts to restart
development work hit a snag in June, when the Canadian company filed a notice of dispute with the
government of Mongolia, after tax authorities claimed unpaid taxes and penalties related to the
project.
Priestly said development work on the Oyu Tolgoi expansion project would resume once the
outstanding shareholder issues, including tax claims, are resolved and all parties have agreed on a
comprehensive funding plan. The underground expansion must also be approved by Turquoise Hill
and the Mongolian government. The Vancouver-based company said a feasibility study, originally
expected in June, is nearly complete.
Source: Reuters
SOUTHGOBI NARROWS Q2 LOSS ON HIGHER SALES DESPITE LOW PRICES
Toronto-and Hong Kong-listed SouthGobi Resources Ltd. on Monday reported a narrower net loss in
the second quarter ended June 30, propped up by higher coal sales, which was offset by
significantly lower coal prices.
The Hong Kong-based miner reported a net loss of USD 23.17 million, or USD 0.12 a share, compared
with a loss of USD 33.14 million in the same quarter a year earlier. Two Bay Street analysts
expected a loss of USD 0.073 a share on revenue of USD 17.6 million. SouthGobi reported revenue of
USD 6.7 million, marginally higher compared with USD 6.13 million in the same quarter last year,
despite total coal sales nearly doubling to 630,000 tons. This was offset by the average realized coal
price falling 52 percent to USD 12.52 a ton in the period, compared with USD 26.26 a ton a year
earlier.
During the second quarter, the company shipped 910,000 tons of coal from its Mongolia-based
flagship Ovoot Tolgoi coal mine that sells coal to Chinese customers, but only recognized revenue
for 630,000 tons, with the remaining 280,000 tons expected to meet revenue recognition
requirements in the second half of the year.
―The company continues to operate under difficult market conditions. Coal prices in China declined
further in the second quarter compared to the first quarter of 2014 in response to excess seaborne
and Chinese domestic supply,‖ SouthGobi said in a statement.
Output in the quarter decreased to 550,000 tons of raw coal, compared with 640,000 in the first
quarter of this year. This decrease was owing to the company‘s decision in June to reduce its
production and place about half of its workforce on furlough, which was expected to remain until

4. the end of August, depending on market conditions. During the quarter, the company obtained a
CAD 10 million revolving credit facility from Turquoise Hill to meet its short-term working capital
requirements with a maturity date of 30 August. At 30 June, the company had drawn down CAD 3.8
million under this facility.
SouthGobi also during the quarter completed the sale of its Tsagaan Tolgoi mining license for net
proceeds of CAD 1.3 million.
Source: Mining Weekly
XANADU INTERSECTS 665.7M OF COPPER-GOLD MINERALIZATION
Xanadu Mines Ltd. has confirmed the presence of a significant mineralized tourmaline breccia
system east of the high-grade Altan Tolgoi prospect at the Kharmagtai project.
Drill hole KHDDH344 assays are: 665.7 meters at 0.37 percent copper and 0.28 grams per ton of gold
from surface including 312 meters at 0.49 percent copper and 0.40 grams per ton of gold from 274
meters. Xanadu said that the geophysical signature of the tourmaline breccia can be traced for at
least 3.5 kilometers under shallow cover.
Drilling continues along the new discovery zone with step out drill hole KHDDH346 intersecting
significant visible copper sulphide mineralization between 140 meters and the 670 meters, the
current depth. Xanadu has now extended the strike length of the Altan Tolgoi system to over 600
meters and mineralization remains open to the west, east and at depth.
Source: Proactive Investors
MEC ANNOUNCES FURTHER EXTENSIONS OF DEBT REPAYMENT MORATORIUM
Mongolia Energy Corporation (MEC) Ltd. on 12 August announced that it had negotiated an extension
until 12 September for repayment to corporate bond holders. MEC will extend the deadline for its
SF convertible note, a 3.5 percent GI convertible note, and a 3 percent CTF convertible note while
it restructures its debt with all convertible noteholders.
Source: Mongolia Energy Corp.
JAPAN TO HELP LAUNCH SHRIMP FARM
Mongolia-Japan joint venture ISAK and Japanese firm IMT plan to launch an aquaculture business for
shrimp farming.
The company plans to launch sales in February 2015 to produce an initial eight tons a year, said
ISAK Chief Executive Officer G. Aranzal. Mongolia consumes about 10 tons of shrimp a year, he
added, and 99 percent comes from China. ―Chinese shrimp have a bad taste and its place of origin
is unknown,‖ said Aranzal.
If sales are strong, the company is prepared to expand production to 40 tons a year.
Source: Unuudur
VIP TAXI LAUNCHES IN AUGUST
VIP Taxi launched its luxury taxi service in Ulaanbaatar on 1 August.
The company provides various services geared toward luxury for weddings and special diplomatic
visits and safe travel with its fleet of black Sonata 7 cars. The ―VIP Taxi‖ is its luxury service, the
―Pink taxi‖ cars are driven by women for female passengers, and the ―Kids taxi‖ service due to
launch in September will allow parents to hire specific drivers while monitoring their route via
mobile phone. The company is geared toward providing luxury transport services.
Source: Unuudur
REDUNDANCIES EXPECTED AT MSE AS IT CUTS DOWN ON COSTS
The Mongolian Stock Exchange (MSE) on 7 August announced it had begun making cost cuts on 5
August.
The local exchange will take several measures, including cuts in expenditures, a 30 percent cut in
wages, redundancies, and the streamlining of its organizational structure. The MSE said it expects

5. to begin announcing redundancies soon and that it would not make any major procurements for the
remainder of the year.
Source: MSE, Cover Mongolia
MGG REPORTS 32.3 PERCENT GROWTH IN SAME-STORE RENTALS FOR JUNE
Real-estate developer Mongolia Growth Group Ltd. (MGG) reported that its core commercial
property portfolio saw a 32.3 percent increase in same-store rentals for June compared with the
same month in 2013.
―During the month of June, we continued to implement our strategy of shifting MGG‘s asset mix
away from smaller properties that cost more to maintain and manage, towards larger institutional-
quality assets that are easier to scale, as we continue to build MGG into Mongolia‘s leading
commercial real estate concern,‖ said Chairman Harris Kupperman. He added that MGG had
disposed of six properties for CAD 1.06 million (USD 0.97 million) in June, making a total of USD
1.45 million for the 12 properties sold this year. Proceeds from the sales will be used for the
renovation of a planned retail center.
Source: Mongolia Growth Group Ltd.
MONGOLIAN ECONOMY PARTNERS WITH GLOBAL WATER PARTNERSHIP
The magazine Mongolian Economy has announced its official partnership with the Global Water
Partnership (GWP), a network of organizations collaborating together to ensure the sustainability of
global water resources. GWP promotes responsible water management with strong governance and
seeks out solutions to the greatest threats to water reserves. The groups advocates for water issues
to be taken to the highest levels of priorities for government and more dialogues on related
matters.
Source: Mongolian Economy
MEDICAL EQUIPMENT EXHIBITION IN UB
An international exhibition of medical equipment and facilities will be held from 27 to 29 August at
the Misheel Expo Center in Ulaanbaatar.
Some of the world's biggest medical equipment providers will arrive for the exhibition including GE
Healthcare, Medtronic, Covidien, Pentax, Nihon Kohden, Belimed AG, ERBE, Kangda, KHB,
Microport, KDL, Boxun, Siling, Sanyou, General Care and Medi Land. Guests for the exhibition's
opening will include staff from the Health Ministry, resident Chinese diplomats, and health
authorities from international organizations.
The organizers of the event are the Ministry of Health, the Misheel Expo Group, Monolab LLC,
China‘s SCIS LLC, and the Society of Medical Engineers.
Source: Montsame
MONGOLIA-JAPAN BUSINESS FORUM CONCLUDES
The Ministry of Industry and Agriculture has continued its partnership with the Shizuoka Prefecture
of Japan to cooperate in agriculture with the Mongolia-Japan Business Forum held last week in
Ulaanbaatar.
Mongolia and the Japanese locality launched their partnership last May with the signing of a
memorandum of understanding. Japanese government officials and businesspeople from the
Shizuoka Prefecture arrived in Mongolia seeking closer collaboration opportunities for business with
Mongolia. Mongolian manufacturers expressed interest in exporting Mongolian products to Japan,
such as Mongolia's khalkh green tea. Meanwhile, the visiting government officials offered
opportunities for Mongolian engineers to participate in long-term training at the Central Region
Power Plants in Shizuoka.
Source: News.mn
MONGOLIA-KOREA ECONOMIC FORUM CONVENES
The Mongolia-Korea Economic Forum was held 12 August with the objective of providing the

6. opportunity for the expansion of bilateral political and business relations.
Forum representatives toured Mongolia's largest projects, including the Tavan Tolgoi and Oyu Tolgoi
mine sites, as well as Korean operations in Mongolia. The forum also provided a framework for
Mongolia to express interest in establishing a free trade agreement with Korea, bring high-tech
Korea resources to Mongolia, and train qualified personnel in Korea.
In attendance were Mongolia-Korea NGO Chair G. Batkhuu, Korea-Mongolia Cooperation Forum Head
Jung Jang Son, Erdenes Tavan Tolgoi LLC Chief Executive Officer Ya. Batsuuri, Korean Air Lines
President Chi Chang Hun, and Mongolian Ambassador to Korea B. Ganbold.
Source: News.mn
LUXURY BRAND TENGRI INSPIRES ENVIRONMENTAL CHANGE IN MONGOLIA
This weekend luxury fashion brand Tengri will stage the Tsetserleg Festival in one of the world‘s
most enchanting and unfrequented regions in Mongolia. The Tengri festival, in partnership with
RockCorp, will gather 100 volunteers to help clean up the nearby Tamir River and do community
work to help improve the beautiful, natural surroundings that have suffered due to pollution and
the harmful mining industry.
Award-winning Hip-Hop artist Quiza is the headline act at the event. Heavily involved in cultural
developments in Mongolia through his work as Head of the Cultural Department of Ulaanbaatar,
Quiza said: ―To inspire young Mongolians to promote cultural and natural heritages to the world and
support development of our beautiful country is extremely important to me. Tengri is also
passionate about this message, so I am delighted to be able to show my support and perform at the
festival.‖
The London-based ―fairshare‖ pioneer behind Mongolian-inspired clothing brand Tengri, the
Tsetserleg Festival has been developed to support the nomadic herder families living in the region
by creating an innovative event. One highlight will be a fashion show, which will take place in
Zayain-Khuree on the steps of a Buddhist temple serving as a runway like no other. The local models
will take to the steps to showcase the first ever collection by Tengri—a stylish knitwear brand for
men and women, specializing in garments made of 100 percent Mongolian yak wool—which officially
launches in September 2014.
―By putting volunteering and music at the heart of the platform from the start,‖ said Stephen
Greene, the co-founder and chief executive officer of RockCorp, a partner for the event. ―[Tengri]
is not only creating a successful design business in partnership with the yak herders, but is also
celebrating their work and culture... By using the festival to engage youth in the project, we can
help preserve the beautiful environment.‖
Source: Travel News Asia
OT BUILDING SPORTS CENTER IN MANLAI SOUM
Oyu Tolgoi LLC and local government representatives on 31 July broke ground and laid a foundation
stone for a new sports center in Manlai Soum, Umnugobi Aimag, the company's website reported
Friday.
―This sports center will play an important role in providing our community with opportunities to
enjoy healthy lifestyles and enable children and young people to spend their leisure time in sports
activities." Chairman of Manlai's Citizens Representatives Khural, O. Bat-Erdene, said at the
ceremony.
The sports centre will have 250 seats and be fully equipped with modern sports equipment and
facilities to promote the health, safety, and comfort of athletes and the public.
Source: Montsame
RIO TINTO OPENS GALBA PUBLIC PARK IN KHANBOGD
Oyu Tolgoi LLC saw the opening of the Galba Public Park it helped finance last weekend while
residents celebrated its 90th anniversary.
―As Khanbogd residents celebrate 90th anniversary of our county, one of 90 developments to mark
this event is opening of this Galba Public Park, which will provide opportunities for children and

7. adults to spend time in a pleasant and comfortable environment,‖ said Khanbogd Governor T.
Buyan-Ulzii.
A member of Oyu Tolgoi's board, executives of the state-owned shareholder of the Oyu Tolgoi mines
Erdenes Oyu Tolgoi LLC, and representatives of the project leader Rio Tinto PLC were in attendance
for the festivities. The five-hectare park was built by a Mongolian company that installed fountains,
lawns, parking for 300 cars, restrooms and lighting. It gets its name from an older name for the
county in Khanbogd's history.
Source: Oyu Tolgoi LLC
RIO TINTO’S CUTS ARE THE DEEPEST
Shares in Anglo-Australian giant Rio Tinto PLC were trading up in London after the firm said its first-
half profit more than doubled, boosted by deep cost cuts and a jump in iron ore production.
Net profit at the company totaled USD 4.4 billion in the six months through June, compared with
USD 1.72 billion in 2013. During the first half Rio upped underlying earnings 21 percent to USD 5.1
billion versus USD 4.7 billion consensus forecast, helping it to cut net debt by USD 1.9 billion in the
first half to USD 16.1 billion. Rio Tinto said it hit cost-cutting targets of USD 3 billion are six months
ahead of the target date, trimming USD 3.2 billion of operating cash costs since 2012. Further cost
reductions are expected to realize a further USD 1 billion of savings by the end of next year. Chief
Executive Sam Walsh took the top position early in 2013 after leading the company's iron ore
division and has been the most aggressive among the top diversified miners to cut costs, dispose of
assets and overhaul capital expenditure programs.
Source: Mining.com
CENTERRA'S KUMTOR MINE PRODUCES 5.6 TONS OF GOLD FOR SIX MONTHS OF 2014
Centerra Gold Inc. announced production of 180,793 ounces (5,623 kilograms) of gold in the first six
months of 2014 from the Kumtor mine in Kyrgyzstan.
Gold production for only the second quarter was 77,860 ounces (2,422 kilograms) compared with
72,365 ounces (2,251 kilograms) in the same quarter in 2013. Gold sales in the second quarter of
2014 were 77,743 ounces, or approximately 2.4 tons. Total revenue from gold sales in the second
quarter of 2013 was USD 99.8 million.
Centerra said it had contributed more than 3 billion soms (USD 57 million) in taxes and mandatory
payments.
Source: Centerra Gold Inc.
SPONSORS
Oxford Business Group Mongolian Economy Magazine
ECONOMY
MONGOL BANK: FX AUCTION, SWAP AGREEMENTS, 1-WEEK BILLS, TREASURY NOTES
The Bank of Mongolia on 14 August auctioned USD 38.5 million and CNY 68 million to commercial
banks for closing rates of MNT 1,896.00 and MNT 308.30, respectively. The central bank also
reported that it had received an equivalent of USD 39.5 million from swap agreements and
accepted a swap agreement ask offer of USD 45 million with commercial banks.

8. The central bank reported on 13 August the issue of one-week bills worth MNT 112.4 billion at a
weighted interest of 12 percent a year.
The central bank reported on 13 August MNT 10 billion in bids for the auction for 52-week treasury
notes with a face value of MNT 10 billion. The bills were sold at a discounted price with an average
yield of 15.5 percent. The central bank also reported on 13 August that it cancelled the auction of
three-year treasury notes with a face value of MNT 10 billion due to the ―absence of both
competitive and non-competitive bids.‖
Source: Bank of Mongolia
USAID’S BPI SUPPORTS MONGOLIAN TAX ADMINISTRATION’S NEW TAX E-PAY SYSTEM
The General Department of Taxation (GDT) launched its new E-Payment System on 1 August, with
support from the USAID-funded Business Plus Initiative Project (BPI).
GDT upgraded and launched its new e-tax filing system in early 2014, which now reaches more than
70 percent of taxpayers. In order to facilitate payment of taxes, USAID supported the GDT in
developing an e-payment system with two user-friendly options. The first option allows taxpayers to
visit the GDT e-filing website and make payments using a debit or credit card. With the second
option taxpayers can pay taxes directly from their personal banking system. Golomt Bank LLC, Khan
Bank LLC, and State Bank LLC partnered with the GDT to pilot the latter option. Their cooperation
provides e-payment access through banks to more than 80 percent of the taxpayer base. GDT plans
to expand its service via all commercial banks in Mongolia.
Before the e-payment system, taxpayers needed to make tax payments at their bank and then visit
the GDT office, where a tax inspector would enter payment information to the system based on the
bank payment slip. The new e-payment makes paying taxes easier, cheaper, safer and faster by
connecting GDT and banks electronically with just a few clicks, eliminating physical visits to banks
and the tax office.
―Improved information technology support is an important enabler for the implementation of tax
administration reforms and for the enhanced performance of the GDT,‖ said T. Batmagnai, GDT's
commissioner. ―We also recognize that partnerships with leading commercial banks are key to
accelerating the migration of our taxpayers to a ‗cashless society‘ throughout Mongolia.‖
E-payment is part of USAID‘s broader collaboration through technical assistance, capacity-building
for more than 500 tax officers and 3,000 taxpayers and tax preparers. Since 1991, USAID has
provided over USD 230 million worth of technical and humanitarian assistance in support of
Mongolia‘s democratic, economic and social transition.
Source: Montsame
MONGOLIA EXPECTS A GOOD HARVEST OF CROPS IN 2014
With yet another bump in the harvest of crops, Mongolia‘s agricultural production is expected to
exceed domestic demand.
Preparation for autumn harvest is now underway, agriculture authorities said. Moreover, the
Agriculture Production Support Fund is making efforts to support agrarian companies with soft loans
and agricultural equipment sold at discounted prices.
The Ministry of Industry and Agriculture reported that in 2014 cereal grains were planted on 293,000
hectares of land, potatoes on 13,000 hectares, various vegetables on 7,900 hectares, fodder on
12,000 hectares, oil plants on 78,100 hectares, fruits on 495,000 hectares, and medicinal herbs on
950,000. In 2013 Mongolia harvested 387,000 tons of cereal grains, 191,600 tons of potatoes,
101,800 tons of vegetables, 1,169,300 tons of gross hay and 36,600 tons of handmade fodder.
In 2008, Mongolia launched its third land reclamation campaign. The country‘s grain production has
increased greatly since then. Over the past five years, governments have had considerable success
in achieving this objective. Favorable conditions in 2010 and 2012 allowed Mongolia to meet 100
percent of domestic potatoes and wheat demand, and between 50 to 70 percent of domestic
vegetables and flour demand.
Source: Montsame

9. NATIONWIDE ROADS PROJECT TO COMPLETE THIS YEAR
Mongolia is expected to see the completion of its roads projects to connect each of Mongolia's 21
provinces with the capital.
Last year Mongolia began to connect Ulaanbaatar via paved roads with Dornod, Dornogobi,
Khuvsgul, Bayankhongor, Dundgobi and Umnugobi Aimags. Roads to Dornogobi, Bayankhongor, and
Dundgobi finished last year while the roads to the remaining provinces are to finish this year.
Construction for roads to Gobi-Altai, Sukhbaatar and Zavkhan Aimags are to take place this year—a
year later than scheduled—branching off from roads to Dornod, Khuvsgul and Umnugovi.
Source: Udriin Sonin
BIRTHS, INFANT MORTALITY ON THE RISE
The birthrate and infant mortality rate are both on the rise this year, according to statistics from
the National Statistical Office.
The birthrate grew 3.1 percent with 47,279 mothers giving birth in the first seven months of 2014.
July saw mothers give birth to 7,170 babies, or 63 more from the same period last year. Meanwhile,
the number of infant mortalities tallied 728 since January this year, or 66 more than the same
period in 2013. The numbers of deaths to children under five years old also grew this year by 72
deaths for a total of 884 children. The number of infant mortalities for only July grew by 11 this
year from last for a total of 96 cases, while the number deaths to children under five years old grew
by 24 cases to 124 deaths.
Source: Unuudur
REAL HOUSEHOLD INCOME DECLINES WHILE EXPENSES INCREASE
Households in 2014 have seen aggregate incomes slightly decline while the burden from expenses
continues to pile higher.
The nominal household income average for the second quarter of this year grew 8.9 percent to MNT
1,014 million. The average for individual salaries grew by MNT 70,600 while income from the sale of
agricultural products grew by MNT 19,200. But it was the real household income average (calculated
after inflation) that took a hit. Figures for the second quarter declined 4.3 percent to MNT 806,400
from the same period last year while expenses compared with the same periods grew 16 percent to
MNT 920.3.
Price growth for products and services such as food were responsible for an additional MNT 136,900
to the household expenses average. The real household expenses average for the second quarter
was MNT 803,000, or 4 percent more from the year before.
Source: Unuudur
NEW APARTMENTS TO REPLACE 21 DERELICT BUILDINGS
Ulaanbaatar will demolish 21 degraded buildings to make way for the construction of new ones able
to withstand earthquakes.
Ulaanbaatar City Mayor Erdene Bat-Uul has delivered a city ordinance for the demolition of
buildings in Bayangol and Khan-Uul Districts after inspections concluded that they were not capable
of withstanding earthquakes. The 21 apartments are now closed off to prevent accidents.
Demolition and construction of the new apartments will begin shortly after contractors are selected
through a tender bidding process.
The government will lead negotiations with the residents of the apartments and the executor
companies to form a trilateral contract.
Source: UB Post
UB RECEIVES ONLINE APPLICATIONS FROM 84,000 FOR LAND REQUESTS
Ulaanbaatar as of 11 August had received applications from 84,000 citizens for land ownership
requests since opening up online registration on 1 August.
The Ulaanbaatar City Council has allowed for the distribution of 1,524 hectares of land at five
locations in Songinokhairkhan, Bayanzurkh, Khan-Uul, Baganuur and Bagakhangai Districts. The large

10. traffic to the website resulted in multiple crashes and slow load times for many visitors, reported
officials. Ulaanbaatar City Property Relations Agency‘s official Ts. Shijir said that land grants would
be given to those who do have not already acquired land from the government.
Submissions closed today, 15 August, at 12:00.
Source: UB Post
SWINE FLU OUTBREAK IN BULGAN
Health authorities put down 328 pigs with swine flu in Tariakhtai Soum, Bulgan Aimag. The county
was put under quarantine on 31 July. The Specialized Emergency Department and Veterinary
Service has sent 24 officials to the town to control the spread of infection and prevent a further
outbreak.
Source: Unuudur
GOLDEN EAGLE FESTIVAL HELD IN NALAIKH
The annual Golden Eagle Festival was held near Nalaikh district on 9 and 10 August, where
spectators witnessed eagle hunting with eagles specially trained by Kazakh hunters from Bayan Ulgii
Aimag,
The Golden Eagle Festival promotes diversity by sharing different the forms of cultural expressions
and traditions from Mongolia's Kazakh minority group. The Golden Eagle Festival features
ceremonies, dance performances, a parade and a Kazakh play that is made in honor of the hunters
and their eagles.
The small Kazakh community residing in the central region of Mongolia hosted the first Golden Eagle
Festival in Darkhan-Uul in 2006. The Annual Golden Eagle Festival is organized by community
council of Bayan-Ulgii, sponsors, the Ministry of Culture, Sport and Tourism, and the Nalaikh District
Governor's Office.
Source: News.mn
OPERATION PACIFIC ANGEL BRINGS OVER 70 MEDICAL SPECIALISTS TO MONGOLIA
The "Operation Pacific Angel" humanitarian assistance exercises will bring some 70 military
personnel from the U.S. Air Force Pacific Command to Ulaanbaatar, Orkhon Aimag and Bulgan
Aimag from 4 to 18 August.
This year is the first time that such exercises will be held, and will include medical, dental,
optometry, and engineering programs among other subject matter related to health care. Local
medical specialists and staff from Mongolia's Defense Ministry, the medical center from the Law
Enforcement University, and National Trauma Orthopedic Research Center will participate in
humanitarian assistance exercises for providing medical care.
Source: News.mn
COPPER SLUMPS ON CHINESE DEMAND CONCERN
Copper, Mongolia's number-one export commodity, has sunk to its lowest level since June after
weak economic data fueled concerns about the prospects for demand in China, the main consumer
of Mongolia's exports.
Copper, used in electronics and construction, traded as low as USD 6,873 a ton for delivery in three
months on the London Metal Exchange on Wednesday after figures showed the amount of money
flowing into China‘s economy slowed sharply in July.
―When people look at bad data from China and decided to do something about it in metals, then
they are going to look at copper first,‖ said Vivienne Lloyd, base metals analyst at Macquarie. The
bank estimates China accounts for around 45 per cent of refined copper consumption worldwide.
A combination of short covering by investors, who had taken bearish bets following allegations of
fraud against a Chinese metals company in Qingdao, and renewed investor interest in base metals,
helped drive copper to a five-month high of USD 7,172 in July. But sentiment has shifted in recent
weeks as data showed another decline in Chinese cathode imports, which fell 8 percent, or 10,000
tons, month-on-month in July, as well as an increase in refined copper production in China.

11. Problems and maintenance shut downs at smelters in China limited refined production in the first
half of the year, but that has started to change. Lloyd said copper market fundamentals were likely
to weaken in the remainder of the year. ―We have got a situation of weaker construction in China,
some softening in the European market and increased mine production,‖ she said.
Macquarie expects the refined market to swing from a 166,000 ton deficit in the first half of the
year to a 229,000 ton surplus in the second half because of headwinds facing the property market in
China and outflows of refined copper from bonded warehouses in the aftermath of the Qingdao port
scandal. As wiring is one the last stages of the construction process, Lloyd said weak Chinese
housing starts in the first half of the year would start to affect cable orders through the third and
fourth quarter.
Source: Financial Times
POLITICS
MPS CALLED OUT ON POOR ATTENDANCE RECORDS
Members of parliament were called out for excessive absences at the release of a report from the
Parliament Secretariat.
For 29 spring sessions spanning 139 hours, J. Erdenebat and Kh. Temuujin were the most active
members with the best attendance, followed by A. Bekei, Chultem Ulaan and Zandaaukhuu
Enkhbold. Meanwhile, L. Enkh-Amgalan and Ch. Khurelbaatar were noted as to have spoken the
most during sessions. According to the report, the most active members of Parliament with the best
attendance were members of the opposition Mongolian People's Party.
Meanwhile, Parliament members with ministerial posts were noted as those with the worst
attendance. O. Sodbileg was named as the parliament member with the lowest attendance record.
R. Amarjargal, Kh. Battulga, and B. Narankhuu failed to attend half of the sessions, according to
the report, with mention also made of the poor attendance by Kh. Bolorchuluun, Ts. Dashdorj, and
Ts. Oyunbaatar.
Foreign Minister Luvsanvandan Bold defended his absences, explaining that his role as Mongolia's top
diplomat required that he travel as Mongolia's top diplomat. Meanwhile, M. Zorigt beat out Bold as
the parliamentarian with the most absences due to travel. Prime Minister Norov Altankhuyag was
also criticized for his attendance record. [the Sources notes only ―excuses‖ were given in his
defense, without elaborating what they were or how often he failed to attend sessions of
Parliament]
Source: Unuudur
CABINET FORMS COPPER DEVELOPMENT TEAM
The Cabinet Secretariat on 31 July ordered the formation of a team responsible for leading the
development of the country's copper processing capabilities. The project team will direct initiatives
with the goal of constructing a copper smelter and copper concentrator.
Source: News.mn
CABINET APPROVES PROGRAM TO SUPPORT THE ARTS
The Cabinet on 31 July approved the Culture, Sports and Tourism Minister Ts. Oyungerel's initiative
for an annual program to support the arts in Mongolia. The program will be used to facilitate the
production of films, novels, music, and art and allow for digital distribution worldwide.
Source: Montsame
MINISTER OF ROAD VISITS RUSSIA
Mongolia‘s Minister of Road and Transportation A. Gansukh discussed bilateral cooperation
opportunities with Russia's transportation minister while on a working visit in Russia from 6 to 9
August. Gansukh and Russian Minister M. Sokolov discussed possibilities for railway transit, technical
renovation for the Russian-Mongolian joint venture Ulaanbaatar Railways LLC, and a possible

12. partnership between MIAT Mongolian Airlines LLC and Aeroflot.
Source: Montsame
RUSSIAN ARMY ARRIVES IN MONGOLIA FOR JOINT MILITARY EXERCISE
Two military units from the Eastern Military District arrived in Mongolia on 12 August to participate
in the bilateral military exercise Selenga 2014 due to begin 15 August, Alexander Gordeyev, the
district's representative said.
Gordeyev said that ―once the weaponry and military equipment are unloaded at the Bayan-Tumen
station, the troops will go on a 15 kilometer [9 mile] march‖ to the military range in Choibalsan.
The exercise will see the participation of Eastern Military District troops and 100 hardware units.
According to Gordeyev, the exercise for the first time will see the use of the Mi-24 helicopters from
the air base located in the Zabaikalye Territory. The Akatsiya artillery system, Grad multiple launch
rocket system and Shilka anti-aircraft system will also be deployed for the first time.
Selenga 2013 also took place in Mongolia and saw 300 soldiers from the Eastern Military District, 250
members of the Mongolian Armed Forces and about 100 military hardware units from both countries
in attendance.
Source: RIA Novosti
PEACEKEEPERS PAY TRIBUTE TO MILITARY BANNER
Mongolian troops of the fourth contingent of the Mongolian Armed Forces—to serve with the U.N.
Missions in Sudan (UNMIS) operation in South Sudan—paid tribute to the military banner on
Thursday. Lieutenant-Colonel M. Batchuluun will lead 850 troops for the objective of supporting
South Sudan while ensuring peace and security.
Mongolia has been participating in the UNMIS since 2012.
Source: Montsame
MONGOLIA TO CELEBRATE CHINESE CULTURE IN AUGUST
Mongolia will observe the 65th anniversary of Sino-Mongolian relations along with celebrations for
Chinese culture in line with a visit by Chinese President Xi Jinping on 18 August. Mongolia will
celebrate Chinese culture from 20 to 30 August. The celebration will include artist exhibitions and a
ceremonial performance by performers of the Jilin province of China on 27 August.
Source: News.mn
MONGOLIA AWARDS KYAKHTA BORDER SERVICE OF RUSSIA IN BURYATIA
President Tsakhia Elbegdorj on 8 August bestowed the Mongolian Order of Military Glory upon the
Kyakhta border service.
Kyakhta, the administrative center of the Kyakhtinsky District in Russia's Buryatia Republic, was
recognized for its part in protecting Mongolia's independence on the eve of the 75th anniversary of
Russia and Mongolia's victory in the World War II Khalkh Gol River Battle. The city is located near
the Mongolia-Russia border and stands directly opposite the Mongolian border town Altanbulag.
―Today I had a great honor to reward the Kyakhta Border service of the Border Patrol Directorate of
the Russian Federal Security Service in Buryatia with the Mongolian Order of the Military Glory, at
the decree of the Mongolian President and Commander-in-chief Elbegdorj Tsakhia,‖ said P.
Tsagaan, the president's chief advisor. He added that the award ―is the recognition of the huge
merit of the Russian Border Troops and Armed Forces in a protection of the independence and
sovereignty of Mongolia, in the maintenance of peace on the borders of both countries, and in the
cooperation between our two peoples‖.
Source: Montsame
UB TO CHARGE FEES FOR DRIVING IN UB CITY CENTER
Ulaanbaatar residents are opposing a new city ordinance that would charge motorists up to MNT
50,000 a month to drive through the city center.
A working group appointed by the Ulaanbaatar government tasked with seeking out ways of

13. reducing traffic congestion has introduced a bill that would charge motorists MNT 40,000 to MNT
50,000 in monthly fees for traveling through the city center. The fee would apply to drivers
travelling within the area between Baruun Durev to the main intersection on Peace Avenue at the
13th District, across to the Geser church and Sansar tunnel and from Beijing Street to Peace
Avenue. The fee will only be necessary for drivers traveling within that area between 07:00 and
22:00.
Source: Undesnii Shuudan
GROUPS SPEAK OUT FOR RESIDENTS AGAINST A CHINESE GOLD MINER
The environmental group World Mongolia Green Development and the nationalist group Bosoo Khukh
Mongol have spoken out against a gold mining operation they said is upsetting local residents and
has caused the death of some livestock.
The groups claimed that local residents reached out for the help after about 20 livestock have died
since the gold miner Tserenbadam began its gold exploration campaign near the Martsad River. The
Mineral Resources Authority approved a 30-year mining license to expire in 2043 to the Chinese-
invested company, said the groups, with endorsement from agencies such as the General Agency for
Specialized Inspection and Ministry of the Environment and Green Development, said P.
Shinjeeravdan, chairman of Bosoo Khukh Mongol. He said local government had supported the
Chinese company's right to operate despite a petition with signatures of local residents opposing the
establishment of such a gold mine.
Source: Zuunii Medee
CASE AGAINST THE PRIME MINISTER’S DAUGHTER IS DISMISSED
The State Prosecutor has dropped the case against Prime Minister Norov Altankhuyag's daughter for
alleged corruption related to the city's Clear Air Program.
Altankhuyag`s daughter, A. Saranzaya, was under investigation by the Independent Agency Against
Corruption (IAAC) due to the suspicion that she transferred large sums of money from the Clean Air
Fund account to another account using forged documents while working at the Settlement Division
of the Ministry of Finance. However, District Prosecutor No. 1 dropped the case just a few days
after receiving it by transfer from IAAC on the grounds that, ―the corpus delicti had not been
proven.‖
A close advisor to the prime minister, G. Khurelsukh, is currently incarcerated for alleged crimes
related to the same program.
Source: Udriin Sonin
MONGOLIA DEPORTS 427 FOREIGN ILLEGALS
Mongolia had deported 427 foreigners as of 1 August, while another 4,700 foreigners were given
notice to leave the country within ten days, reported the Mongolian Immigration Authority.
―We control every single foreigner who receives a visa from our organization, until they leave,‖ said
the head of the Deportation Department Kh. Bekhbat. ―There is a misunderstanding that the
Authority of Civic Movement is the only place that gives visas to foreigners and solves their
problems. Foreigners who get working visas from our organization should pay the appropriate taxes
to Mongolia.‖
However, he added, the Mongolian Immigration Authority does not have authority over visas issued
by Mongolian Embassies in foreign countries.
Source: UB Post
CYBERCRIME RAISES CONCERNS FOR LOCAL BUSINESSES
The General Intelligence Agency's Cyber Security Agency (CSA) has advised the public to strengthen
their online security following a rising number of complaints regarding hackers and fraud.
Several organizations and individuals conducting with international offices and partners have had
their emails hacked or become victims of fraud by online predators. The agency said that many
have fallen victim to these scams because they were not familiar with the most common scamming

14. techniques.
CSA advised businesses, especially those with international relations, to closely check the email
addresses when they correspond, check the web address and confirm where they enter private
data, and confirm the name of business partners, bank accounts and bank names via phone calls
with international partners. The agency also advised that companies reset their passwords to
stronger, more difficult to replicate ones. They recommended using digits, capitalized letters, and
regularly changing passwords as best ways to protect data.
Source: UB Post
LIGHT AHEAD FOR MONGOLIA’S LGBT YOUTH
Where do you see Mongolia‘s lesbian, gay, bi-sexual, and trans-gendered (LGBT) community five
years from now? This was the first question that came to mind at the first Mongolian LGBT Forum
last weekend. Over the weekend, approximately 70 community members gathered to discuss LGBT
rights and exchange ideas in a judgment-free environment.
―I have rarely heard of trans-gendered individuals in the workplace, even when they have a really
good education,‖ G. Nyampurev, program officer at the Together Centre said. ―Usually they work
for NGOs and many have to turn to sex work.‖
While Mongolia's marriage law opposes homosexual unions, some youth believe there can be change
for Mongolia. For the past several years, trade unions have been battling for greater equality and a
safer work environment for women— a fight that could greatly benefit LGBT workers in Mongolia.
Alongside these efforts, reforms and amendments are being pushed by both women and LGBT NGOs
for changes to the Constitution and Labor Law to include ―sexual orientation‖ and ―gender identity‖
to the list of criteria upon which employers cannot discriminate. A number of community-based
initiatives have also been engaged to improve the quality of life for LGBT individuals.
Mugi, a trans-gendered woman from Ulaanbaatar, started a business venture to employ trans-
gendered individuals, but economic and social support from outside the community has been very
difficult to acquire and she is still searching for investors.
Source: UB Post
MONGOLIAN-JAPANESE EPA: COUNTERBALANCING CHINA AND RUSSIA - EDITORIAL
On the 40th anniversary of establishing bilateral diplomatic relations, President Tsakhia Elbegdorj
and Japan‘s Prime Minister Shinzo Abe met in Tokyo on 22 July to sign a joint statement on
affirming the final roadmap toward instituting an Economic Partnership Agreement (EPA). Aimed at
promoting mutual trade and investment, the agreement could be ratified by the parliaments of
both nations in the first quarter of 2015—the first such agreement for Mongolia and the 15th for
Japan.
The EPA exempts all Mongolian exports to Japan, including meat and raw minerals, and 96 percent
of Japanese exports to Mongolia from tariffs in the coming decade. Japan pledged to support
policies to grow Mongolia‘s exports. The joint statement is based on three principles: (1) The EPA is
key to elevating bilateral economic relations to higher levels and promoting mutually
complementary cooperation; (2) The two sides agreed on recommendations of how to proceed with
Abe‘s previously announced ERCH Plus initiative, proposed during his March 2013 Mongolian visit; (3)
The most intriguing element was that Japan proposed appointing an economic adviser for the
Mongolians to work on mid- and long-term economic policy development.
Although this trip focused on Mongolian-Japanese economic relations, other issues were discussed
by Prime Minister Abe and the Mongolian president. One topic discussed was Mongolian assistance in
the ongoing negotiations between North Korea and Japan for the daughter of Japanese abductee
Megumi Yokota to visit Japan in November. Tokyo believes that Ulaanbaatar could serve as a bridge
to resolving the ongoing case of Japanese citizens abducted by North Korea and be a constructive
influence in the region.
Regardless of the wider agenda, Elbegdorj‘s trip revealed that Japan sees economic cooperation as
the key to its future relationship with Mongolia. Even Japanese-Mongolian military cooperation has
an economic component. Japanese Army officials, led by General Kiyofumi Iwata, Chief of Staff of

15. the Japan Ground Self Defense Forces, conducted a working visit to Mongolia from 25 to 28 June.
Japanese military engineers discussed road construction plans with elements of the Mongolian
Armed Forces and professors at the Mongolian University of Defense. General Iwata attended the
ground-breaking ceremony for a 15-kilometer paved road to Mongolia‘s Five Hills Military Training
Center, which will be built by Mongolian and Japanese military engineers before the end of 2016.
The agreement is expected to increase investment in Mongolia and lessen Mongolia‘s dependence
on China. For Japan, the agreement can greatly benefit the export of automobiles and import of
Mongolian minerals.
Alicia Campi has a Ph.D. in Mongolian Studies, was involved in the preliminary negotiations to
establish bilateral relations in the 1980s, and served as a diplomat in Ulaanbaatar. She has a
Mongolian consultancy company (U.S.-Mongolia Advisory Group), and writes and speaks extensively
on Mongolian issues.
Source: Jamestown Foundation
IS XI SERIOUS ABOUT CRACKING DOWN ON CORRUPTION? - EDITORIAL
There are many signs that Chinese President Xi Jinping‘s unprecedented anti-corruption drive is
serious. In recent weeks, an investigation was launched into former security chief and Politburo
Standing Committee member Zhou Yongkang, while former top General Xu Caihou was expelled
from the Communist Party. Nearly 200,000 party members of all levels have reportedly been
disciplined for corruption over the last two years. But if this top down approach is not matched by a
bottom-up empowerment of the people being most harmed by China‘s corruption pandemic, it will
have little chance of success.
Xi has promised that the anti-corruption campaign will snare ―tigers‖ as well as ―flies,‖ senior
leaders as well as smaller fry, and he has been true to his word. But because corruption is so
pervasive, it‘s difficult not to see political and public relations motives. When Chinese media
reports critically on the vast wealth accrued by the families of former Chongqing leader Bo Xilai,
Zhou Yongkang, and others, it‘s easy to remember the Bloomberg and New York Times reports on
the millions of dollars held by Xi‘s and former Premier Wen Jiabao‘s families. And no one believes
that China‘s government leaders, among the wealthiest in the world, are getting rich from their
salaries alone.
This corruption passes from the top down. Officials in senior positions receive bribes from
businessmen they then use to secure their own promotions and strengthen their essential patronage
networks according to qian gui ze, the ―hidden rules‖ of the road. It doesn‘t end there. Parents in
schools across China are expected to pay teachers to ensure fair treatment for their children,
journalists require envelopes of cash for attending press conferences, doctors in public hospitals
demand payment for providing care. Nearly everyone with something to offer can expect additional
payments under the table.
While it might be conceptually possible for China to address its corruption problem with a
Singapore-like good governance approach if its leaders were willing to take vows of chastity and
poverty, the far likelier bet is that it can‘t because the party itself is the problem. Problems will
remain as long as the party stays above the law with zero transparency or public accountability,
leaders like Zhou are expelled while others have amassed far greater spoils are exempt, and
Chinese citizens are sent to jail for protesting official corruption or advocating that China live up to
its own constitution. If, on the other hand, Xi is serious about addressing corruption, he will need to
push the kinds of political reforms required to facilitate bottom-up pressure for accountability and
good governance—rule of law, sunshine and disclosure legislation, a free press, conflict of interest
rules, supporting non-governmental watchdog groups, empowering the public, etcetera. Ultimately,
but not necessarily immediately, the Chinese Communist Party will need a mandate by the people
conferred through meaningful elections.
Since taking over two years ago, Xi has moved steadily to consolidate power and isolate his rivals.
Up to this point, the anti-corruption campaign can only be seen as part of this process. And if Xi
does not push for political reforms, the campaign will simply look like a risky political and public
relations maneuver to get rid of rivals, an approach that won‘t get China out of its morass.

16. I hope it‘s the former, but the jury is still out.
Jamie Metzl is a Senior Fellow at the Asia Society.
Source: CNN
ANNOUNCEMENTS
MONGOLIA PROJECTS & INVESTMENT SUMMIT, HONG KONG, 17-19 NOVEMBER
The Mongolia Projects & Investment Summit will be held in Hong Kong from 17 to 19 November,
where Prime Minister Norovyn Altankhuyag will present his vision to sustain Mongolia‘s growth.
The context of the Summit will be a constructive, productive and sincere appraisal of Mongolia as a
place for FDI, given the current circumstances, and what is being done to strengthen its
attractiveness to the international investment community. The Mongolia Projects & Investment
Summit Hong Kong will bring together leading business, investment and governmental figureheads
in an environment of progressive discussion and action.
The implementation of the new Investment Law, amendments made to the Mining Law, a realized
dedication to PPP and more do show that the government is moving in the right direction. The
question on investors‘ minds is what tangible progress has been made since last November which
would warrant a return of FDI?
BCM members will be eligible for a 15 percent early bird special that lasts until 12 September.
Download the brochure for the conference agenda here. For registration logon here, or for more
information email info@beaconevents.com or call: +852 2219 0111.
___________________________________________
INVEST MONGOLIA, 2-3 SEPTEMBER, ULAANBAATAR
Frontier Securities' eighth annual Invest Mongolia conference is scheduled for 2 and 3 September in
Ulaanbaatar
This year, the conference will be held over two days for presentations and discussions on ―smart‖
governance, a roadmap for Mongolia to come out of its economic crisis, and industries such as
mining, infrastructure, tourism, real estate and oil.
BCM members will receive a 15 percent discount at registration. Register online at frontier-
conference.com. For more information call 976-7011-9999 or email: conference@frontier.mn
___________________________________________
2014 DISCOVER MONGOLIA, 4-5 SEPTEMBER, ULAANBAATAR
The 12th Discover Mongolia International Mining Investors Forum (IMIF) will be held in Ulaanbaatar,
Mongolia on 4 and 5 September at the Children's Palace of Mongolia— the location of the conference
for the past 11 years.
The forum will have two days of intensive minerals and mining discourse and exhibition for
companies. Although the Mongolian economy is undergoing serious challenges and difficulties, some
decisions and resolutions adopted at the law-making and executive branches of the government
help us restore confidence and trust. Parliament‘s decision to harness the country‘s economic and
business environment makes long-term steps to nurture investor confidence and trust in Mongolia.
The 12th annual Discover Mongolia-2014 IMIF is pleased to announce its Platinum Sponsors are
Xanadu Mines and Mongol Metals and its Gold Sponsor is Anglo American.
Business Council of Mongolia is again supporting Discover Mongolia 2014 International Mining. BCM
members will receive an early bird rate to attend the forum. For Exhibition, Sponsorship and
Delegates information visit discovermongolaiforum.com. For more information call 976-7014-9762,
fax 976-7014-9762, or email info@discovermongoliaforum.com.
___________________________________________
OIL & OIL SHALE MONGOLIA 2014, 10-11 SEPTEMBER, UB
The international investment conference Oil & Oil Shale Mongolia 2014 is back with a new scheduled

17. date on 10 and 11 September.
The Ministry of Mining and Petroleum Authority and Minex Mongolia LLC have decided to host the
event after the passage of the long-awaited new Petroleum Law. This will be the country's first
international investment conference on oil, gas, and oil shale. The event will be attended by
international investors, oil, gas, and oil shale companies, service providers, consultancies,
equipment suppliers, and traders. Delegates will have the opportunity to network with key industry
contacts and obtain vital information on legislation and policies on oil, gas, and oil shale
exploration and production regulations from government authorities.
BCM members will receive a 15 percent discount to attend the conference. For more information or
to register email Chimednyam at chimednyam@minex.mn or call +976 344488, or +976 9910-5877.
BCM WORKING GROUP NEWS
The BCM Environmental Working Group met on 26 June with 15 members attending.
Bayarmaa A, Vice Director, BCM, moderated the session.
New members: Shinetsetseg-Breakthrough PR, Ariunaa Norovsambuu–The Asia Foundation.
New Participants: Tirza Theunissen-The Asia Foundation, Binderya Oyunbaatar, Dolzmaa
Davaasuren-The Nature Conservancy,
Guests: Batima Puntsagmaa-Mongolian Water Forum, Kevin Trzcinski-Mongolian National University,
Tsenguun Tumurkhuyag, Munkhjargal Bayarlkhagva-Sustainability East Asia, Altai Onkhor–Water
Resources Group.
Speakers and topics were:
Introduction of Urban Services Program by Tirza Theunissen, TAF Deputy Country Representative,
Asia Foundation;
Impact of Climate Change on Water Resources by P. Batima, Director, Mongolia Water Forum;
Application and Use of Solar Thermal and Energy Efficient Technologies in Mongolia by Kevin
Trzcinski, Vice President of International Relations, Mongolian National University.
If you have any questions, please contact Erdenetsetseg at erka@bcmongolia.org.
___________________________________________
The BCM Logistics Working Group met on 10 June with 7 members attending.
Mattias Ahlin-Scania, Chairman, moderated the session.
New members: D Enkhbat CEO-Mongolian Express; Rentsendorj Yondon, Mongolian Opportunities
Fund; Buyanderler Tsogt-Ochir, Logistics Supervisor, Cummins Mongolia; Nobuo Okada, General
Manager, Mitsui Co.
Tengis Garamgaibaatar, Chief Executive Officer, Monroad, was elected as WG chairman.
Congratulations to him for his new role as BCM`s Logistics Working Group Chairman! We thank
Mattias Ahlin for his groundbreaking efforts in launching the Working Group. Mattias is returning to
Scania‘s headquarters in Sweden.
Speakers and topics were:
1. Follow up from last meeting‘s discussion
a. Main challenges for the Mongolian Logistic sector
2. Discussion about BCM Logistics Working group role and focus areas
(Mission Statement)
a. Transport modes; road, rail, air
b. Customs efficiency
c. Legal framework; Loads and dimension, safety, standards
d. Stakeholders: Ministries, customs, transport organizations, vehicle manufacturer association
e. Transport efficiency
3. Discussion about meeting intensity and organization
4. Other business

18. Next meeting was scheduled on 7 August. If you have any interest joining the new and growing
Logistics Working Group, please contact Erdenetsetseg at erka@bcmongolia.org
___________________________________________
The BCM Capital Markets Working Group met on 29 May with 11 members attending.
Howard Lambert /ING Bank/ and Nick Cousyn /BDSec/, Co-chairmen, moderated the session.
Guest: Michael O`Malley-Executive Director at ISG MineElect.
Speakers and topics were:
Facilitating foreign direct investment (FDI) and Capital Markets update - by Byambaa Losolsuren,
Leader of FDI Capital Markets group of 100 Day Revitalization Council, and Partner of Mandal
Capital LLC.
If you have any recommendations on Capital Markets for the Revitalization Council, please contact:
erka@bcmongolia.org
___________________________________________
The BCM Tax Working Group met on 22 May, with 12 members attending.
Onch D. - Co-chair, BCM‘s Tax WG and Deloitte Onch a moderated the session.
Attending were representatives from the following BCM member entities - Deloitte Onch, PwC,
Ernst & Young, KPMG Tax, OT, Terra Energy, Petro Matad, MahoneyLiotta, TMZ and BCM.
New members: Amarbayasgalan and Tuvshinbayar from Terra Energy.
Meeting agenda:
• Overview - B. Byambasaikhan, Secretariat, 100 Day Revitalization Program; Chairman, BCM;
• Initial new tax policy thoughts from WG members.
On May 29 BCM‘s Tax Working Group sent a detailed study of the current value added tax (VAT)
deficiencies and recommendations for efficiencies to result in greater tax revenue to the 100 Days
Revitalization Council.
Please contact T.Erdenetsetseg, BCM Working Group Coordinator, erka@bcmongolia.org .
___________________________________________
The BCM ‗expanded‘ Legislative Working Group (LWG) met on 20 May with 42 members attending at
Corporate Hotel meeting room.
This was the third expanded WG meeting on the draft Amendments to the Minerals Law. The 2 ½
hour session included BCM members from mining companies, embassies and the MNMA. Special
guests were 5 members of Parliament and others from the Mining Ministry, Geological Society and
Export Society.
LWG Co-chair, James Liotta, Mahoney Liotta, moderated the session.
The following 11 presentations were made:
- A healthy Private Sector Driven Industry (1997 and 2006 Minerals Law / Amendments / what to
look for. By Doug McGay – longtime resident in the Minerals and petroleum industry;
- Investor views and concerns about making investments in Mongolia and its mining sector. By
Randolph Koppa – Vice Chairman, BCM and President, TDB;
- A view from the Mining Majors by Sunjidmaa Jamba from Peabody Energy;
- A supply side view by Stephen Potter, Wagner Asia;
- Tax Issues impacting the Minerals Industry by D. Onchinsuren – Co-chair BCM Tax Working
Group and Deloitte Onch Audit;
- Use of MSE for State Privatizations by Nick Cousyn – Co-chair, BCM Capital Markets Working
Group and BDSec;
- Views from within the Industry by N. Algaa – Executive Director, MNMA;
- Transparency and Public Comment by David Wyche – Economic/Commercial Section Chief,
Embassy of the United States of America
- International Agreements that attract bi-lateral investment, and views on the State ownership
of assets by Maxim Berdichevsky – Counselor & Senior Trade Commissioner, Embassy of Canada
- Some specific thoughts on the Amendments by James Liotta – Co-chair, BCM LWG and

19. MahoneyLiotta Law Firm; Bayar Budragchaa - Co-chair, BCM LWG and ELC Law Firm.
As MP Garamgaibaatar, Chair of the Standing Committee on Economic Affairs and Head of the
Parliamentary Working Group on the Draft Amendments to the Minerals Law, commented at the
meeting's conclusion - "We should not really change general structure and core contents of the draft
Amendments."
Also MP Garamgaibaatar welcomed BCM sending any additional comments directly to his Working
Group which was accomplished by the BCM Legislative Working Group.
Note: Amendments to the Minerals Law were passed by Parliament on 1 July 2014.
BCM WEBSITES
MONGOLIAN WEBSITE: ‘PRESENTATIONS’
The following statistics and reports posted on Presentations section in Mongolian:
http://bcmongolia.org/mn/илтгэлүүд
• Монгол улсын нийгэм эдийн засгийн байдал, 2014 оны 4 сарын байдлаар, Үндэсний
статистикийн хороо
• Мандал Женерал Даатгал тайлан, 2014 оны 5 сар
• Сант марал сангаас гаргасан УЛС ТӨРИЙН БАРОМЕТР №13(47), 2014 ОН 3 САР
• Монгол улсын нийгэм эдийн засгийн байдал, 2014 оны 3 сарын байдлаар, Үндэсний
статистикийн хороо
•―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
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', ‘INTERVIEWS‘, MONGOLIAN
BUSINESS NEWS’, ‘PHOTO GALLERY’
2 presentations from BCM monthly meeting on June 23, 2014:
• T. Gansuld, Executive Director, Outotec Mongolia – ―Outotec Mineral Processing Solutions and
Experience in Mongolia‖
• Lisa Gardner, Journalist & Media Trainer – ―Mongolia‘s Media Laws: Defamation, Libel and
Threats to Press Freedom‖
3 presentations from BCM monthly meeting on May 26, 2014:
• B. Lakshmi, Director, Mongolia Economic Forum – ―Why Mongolia Business Summit?‖
• Nick Cousyn, Co-chair, BCM Capital Markets Working Group – ―Use of MSE for State Privatizations‖
• Peter Benson, VicRoads Team Leader, ADB Capacity Building Project – ―Mongolia Roads –
Achievements and Challenges‖
• China Metals & Mining Thermal Coal, Coking Coal, Copper, Gold, Steel by Macquarie Capital
Securities Limited
Mongolia Reports: http://bcmongolia.org/en/mongolia-reports
• Mongolia Economic Report by BCM, August 2014;
• World Investment Report 2014 by United Nations Conference on Trade and Development ;
• Social and economic situation of Mongolia as of May 2014 by National Statistical Office of
Mongolia; (available in Mongolian language - Монгол улсын нийгэм эдийн засгийн байдал 2014
оны 3 сарын байдлаар, Үндэсний статистикийн хороо);

20. • Real Estate Report 2014 by Mongolia Properties;
• ASIA Reaching for the Top by International Monetary Fund, June 2014;
• ASIA Achieving Its Potential by International Monetary Fund, June 2014;
• Mongolia: Economy outlook 2014, by Asian Development Bank;
• Polit Barometer by Sant Maral Foundation, March 2014.
Interview Section: http://bcmongolia.org/en/interviews
• Talking to United World, the Executive Director of the Mongolian Drilling Association (MDA)
Professor J. Tseveenjav. Source: http://www.worldfolio.co.uk/;
• Jim Dwyer, Executive Director, BCM – ―Business need more business‖;
• Damshnamjil Tsogtbaatar, Chairman of the SPC: ―Privatizing Mongolia‖;
• Jan Hansen, Economist, ADB: ―The depreciation should help to increase the competitiveness and
to develop the non-mining industrial sector‖.
BCM's English website includes the ―Mongolia Business News‖ section. 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.
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at 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.
The bulk of the content on BCM‘s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo
Social stats: BCM now has 5,930 fans on our Facebook fans page, 642 connections on LinkedIn
network, and 1,136 followers on Twitter.
Of course for news information, interviews, event photos, VIDEOS and announcements regarding our
organization, visit the official BCM website at http://bcmongolia.org/en/

22. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
July 31, 2014 *14.9% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 15.4% y-o-y, Ulaanbaatar city, July 31, 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]
July 30, 2014 12.00% {source: Mongol Bank}
CURRENCY RATES – 14 AUGUST 2014
Currency Name Currency Rate
US Dollar USD 1,897.73
Euro EUR 2,535.46
Japanese yen JPY 18.52
British pound GBP 3,162.66
Hong Kong dollar HKD 244.84
Chinese Yuan CNY 308.49
Russian Ruble RUB 52.61
South Korean won KRW 1.86
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.