The document is a newsletter from the Business Council of Mongolia covering business and economic news highlights from Mongolia. Some of the key points from the document include: - The Mongolian Prime Minister expressed support for project financing to restart construction of the underground expansion of the Oyu Tolgoi mine, signaling that Mongolia is ready to finalize the funding agreement. - Exports of copper concentrate from Mongolia increased 53% in the first quarter thanks to production starting at Oyu Tolgoi. - The CEO of Erdenes Tavan Tolgoi said the company's debt to Chalco has fallen to $130 million but it is still struggling financially and operating at a loss. -

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 321 – April 18, 2014
NEWS HIGHLIGHTS:
Business
 Leaked letter shows premier ready to accept OT phase II financing;
 Turquoise Hill gains as premier gives support for OT project financing;
 Rio’s Turquoise Hill says parties to seek OT funding extension;
 OT helps boost Mongolia copper concentrate exports by 53%;
 Erdenes TT debt at $130m, says CEO, amid struggles to remain afloat;
 New railway project suspended by Khanbogd authorities;
 Korea Coal to sell Khotgor coal mine;
 МIАТ plans IPO;
 Merex IPO raises MNT2.6bn;
 Viking Ashanti takeover offer reaches 56.62% acceptance;
 Erdene announces private placement;
 Melia Hotels International to open Gran Melia Ulaanbaatar;
 Chicken farm to open in Uvurkhangai;
 Erdenet Factory partners with Orkhon for development;
 Mongolia Mining 2014 Expo in UB;
 OT employee receives Rumsfeld Fellowship;
 GE rethinks the 20-year CEO.
Economy
 Mongol Bank: FX auctions, treasury bills, 1-and 28-week bills;
 Mongolia Q1 trade surplus as consumption is dramatically cut;
 MIBG 2014 Country Outlook report;
 Mongolia to conduct population census in 2015;
 Mongolia to transfer to digital TV in July;
 NEMA reports 66 forest fires;
 Hunting quotas released;
 Taxonomy proves Mazaalai to be independent subspecies;
 Copper miners look past present pain to future gain;
 Coal slump turns Inner Mongolia's Ordos into ghost town;
 Giving credit for China's slowdown.
Politics
 Altankhuyag submits economic stimulus bill;
 Standing Committee backs “Glass Accounts” transparency bill;
 Sant Maral releases March 2014 Politbarometer;
 Abe meets Mongolian president possibly over N. Korea abductions;
 U.S., Russian ambassadors face off on Crimea;
 Mongolia initiates direct flights to Kazakhstan;
 State, international organizations partner for anti-corruption;
 Russian Embassy to accept online visa applications;
 India offers aid to Okhon, Bulgan;
 Ulaanbaatar mayor given JICA President Award;
 Taking steppes: Mongolian civil society leads the way on EITI.

2. ECONOMIC INDICATORS
 Infographic – Mongolian inflation rate 2013-2014;
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
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Invest Mongolia Agency Mongolian Economy Magazine
Oxford Business Group Milestone GRP
BUSINESS
LEAKED LETTER SHOWS PREMIER READY TO ACCEPT OT PHASE II FINANCING
The Mongolian government has blinked and taken a step to resolve the impasse over the second
phase of the Oyu Tolgoi project. Expressing the hope that this will ―open a new chapter in our
relationship,‖ Prime Minister Altankhuyag wrote a letter to Rio Tinto Chief Executive Officer Sam
Walsh on 27 March, saying talks on financing the mine‘s further development can be resumed
without waiting for the completion of the feasibility study.
The Letter appears as follows:
Dear Mr. Walsh,
I, as Prime Minister of Mongolia, would like to note that the Government of Mongolia is making solid
endeavors to move our joint Oyu Tolgoi project to next stage with the introduction of new team
and new approaches for the last one and half years. Even though we are making progresses through
our mutual efforts, there are further accomplishments still needed for a successful Oyu Tolgoi.

3. Thus I am addressing you directly as we are reaching a significant stage to strengthen the
relationship between your company and Mongolia. While the start of production of Oyu Tolgoi in
2013 was a great achievement and an important milestone, it is of the utmost importance for my
Government and for Mongolian people that Oyu Tolgoi proceed as soon as possible with the
underground mine development. We are thus most supportive of the Project Financing needed for
next stage of this most important project.
Through the both parties‘ constructive discussions, there are only a very limited number of issues
that remain outstanding between the Rio Tinto (RT) and Erdenes Oyu Tolgoi (EOT). We are
confident that these issues can be readily solved in accordance with normal international business
practices as was stated in the EOT letter to RT of 19 February, 2014.
We stressed the importance of RT maintaining positive stance in addressing public, but instead of
that we have received a press release proposal from Mr. Jean Sebastian Jacques, which was
insisting for request to extend lenders‘ commitment to 31st December 2014. It is unfortunate that
we are acknowledged the doubtful approach for finalizing the project financing in such extended
period of time.
Even though the updated feasibility study will be delivered in Q2 2014, we are willing to complete
the discussions immediately in Ulaanbaatar or London, with the full mandate to finalize the project
financing before the lenders‘ commitment deadline of March 31, 2014.
The Government of Mongolia remains fully committed to the continued and successful operation of
the open pit mine, the financing and development of the underground mine.
The Oyu Tolgoi project is of utmost importance to Mongolia and so is our partnership with Rio Tinto.
I believe that now is the time to open a new chapter in our relationship and work in harmony to
develop the Oyu Tolgoi project for the benefit of all stakeholders and for the Mongolian people.
Yours sincerely,
ALTANKHUYAG Norov
Source: Mongolia Mining Journal
TURQUOISE HILL GAINS AS PREMIER GIVES SUPPORT FOR OT PROJECT FINANCING
Turquoise Hill Resources Ltd. rose to a one-month high after Mongolian Prime Minister Norov
Altankhuyag said his government fully supports project financing to restart construction on the
second phase of the Oyu Tolgoi mine.
The four or five issues holding up the financing agreement are not connected to the government,
Altankhuyag yesterday told a group of foreign investors, adding that his government has signaled to
partner Rio Tinto Group that Mongolia is ready to wrap up the funding.
Mongolia and Rio, the world‘s second-largest mining company, have been negotiating on a raft of
disputes related to the mine and its financing. In August, Rio halted development on the
underground portion of the mine as the talks stalled.
―We need funding for the project as soon as possible,‖ Altankhuyag said at a meeting of the
American Chamber of Commerce in Ulaanbaatar. ―On March 31, we expressed our position to the
potential funders of the second phase that the Mongolian government is ready to get the loan.‖
Shares of Turquoise Hill rose 4.9 percent to close at USD 3.66 yesterday in New York.
Source: Bloomberg
RIO‟S TURQUOISE HILL SAYS PARTIES TO SEEK OT FUNDING EXTENSION
Turquoise Hill Resources Ltd., the miner controlled by Rio Tinto Group, said all parties in the Oyu
Tolgoi copper mine agreed to seek a funding extension for the underground expansion amid talks
with the government.
Requests to extend the funding commitments to 30 September will be sent to lenders, Kay Priestly,
chief executive officer of Vancouver-based Turquoise Hill, said in a statement yesterday. Mongolia‘s
government and Rio Tinto have been in talks over disputes related to the mine including cost
overruns and the financing conditions. Rio laid off 1,700 workers and put the underground tunneling
on care and maintenance mode in August.
―All parties remain committed to the underground development of Oyu Tolgoi and to resolving the

4. outstanding shareholder issues,‖ Turquoise Hill‘s Priestly said. ―Constructive discussions between all
parties have resulted in significant progress being made in resolving the issues, and those
discussions are continuing.‖
Source: Bloomberg
OT HELPS BOOST MONGOLIA COPPER CONCENTRATE EXPORTS BY 53%
Mongolia‘s copper concentrate exports increased to 214,100 tons from 140,000 tons a year earlier,
the National Statistical Office said on its website. The Oyu Tolgoi mine began commercial
production of copper concentrate in July.
Mongolia exported 3.74 million tons of coal in the first three months compared to 3.44 million tons
a year earlier, according to the agency. Mongolia exported 908,600 tons of iron ore in first three
months compared to 1.12m tons a year earlier, according to the agency. Gold exports rose to 2.2
tons in the first three months compared to one ton in the same period a year earlier, according to
the statement. Total exports reached USD 986.9 million in the first three months compared to USD
809.1 a year earlier, according to the agency.
Source: Bloomberg, Cover Mongolia
ERDENES TT DEBT AT $130M, SAYS CEO, AMID STRUGGLES TO REMAIN AFLOAT
Erdenes Tavan Tolgoi LLC's debt to Aluminum Corp. of China has fallen to 37 percent of its original
total to USD 130 million, said Chief Executive Officer Yaichil Batsuuri, in a summary of company
activities for 2014 to the Economic Standing Committee.
―Global economic conditions and the decrease of coal price caused problems for Tavan Tolgoi coal
sales. Now we are working under a temporary recovery plan, and 850,000 tons of coal have been
exported since January 2014 and more than 50 percent of it was shipped to Chalco to pay down our
debt.‖
Batsuuri said Erdenes Tavan Tolgoi had 30 contracted companies operating at the West Tsankhi and
700 trucks delivering coal to China. One of the companies mining at West Tsankhi, Khishig Arvin
Industrial, has not been paid by the state-owned miner since the start of this year because of
financial constraints, he said. Khishig Arvin continues to mine, however, despite numerous notices
that it should suspend its operations, he said.
―As result, their workers demonstrated outside of our company, yesterday. It is a misunderstanding
between our two companies.‖
Erdenes TT saw a loss of MNT 70 billion last year. ―Also, the company account is insolvent,‖ he said,
adding that Erdenes TT owes MNT 50 billion to operators. He said the completion of the Gashuun
Sukhait railway would save between USD 5 and USD 6 per ton of coal exports to bring down
transportation costs to about USD 3 per ton, he said. The savings are crucial, he said because of the
softening coal market.
‖The first TT contract signed by the MPP [Mongolian People's Party] was able to sell [coal] at USD 90
per ton in the market, but the MPP officials brought it to USD 70. Since then, our coal price has
fallen to USD 37 to USD 38 today.‖
Erdenes TT has struck a deal with Mongolia Mining Corp.'s Energy Resources to use its coal-washing
facilities, he said. The state-owned miner has also agreed to deliver one billion tons of washed coal
to China's Shenhua Group over the next two decades.
Source: Zuunii Medee, Udriin Sonin
NEW RAILWAY PROJECT SUSPENDED BY KHANBOGD AUTHORITIES
Work on the 217 kilometers of rail being led by Samsung C&T is on suspension due to a claim by the
governor of Khanbogd Soum that MNT 1 billion is owed to them for the use of gravel sourced from
Khanbogd.
Governor D. Munkh-Erdene has halted work based his claim that Samsung owes them money on the
Law on Common Minerals, according to a website for the community. The governor sent a local task
force under his control to take away their equipment to prevent any further work.
―The local economy is in difficulty as the budget is too low. Since last year debt has grown to MNT 1

5. billion,‖ said Munkh-Erdene. ―A joint task force from the local governor's office and environment
specialists decided to halt the construction by sealing the company's equipment last week.‖
Samsung C&T is leading 13 Mongolian contractors for the construction of rail between Energy
Resources LLC's Ukhaa Khudag coal mine and the Gashuun Sukhait border port. Embankment work is
70 percent complete.
Source: News.mn
KOREA COAL TO SELL KHOTGOR COAL MINE
South Korean state-run Korea Coal Corp. will sell its Khotgor coal mine in Bukhmurun Soum, Uvs
Aimag, website Edaily reported.
The decision to divest the Khotgor mine, the Korean miner's first mine purchase from abroad, is
linked with a state decision to reform state-owned organizations. The corporation bought 51
percent of the brown coal mine for USD 10 million in 2010. The estimated reserves of the mine
were 109 million tons and were expecting to be mined for 70 years. The corporation operated at
the mine from June 2011 to September 2013 and excavated 101,800 tons, of which only 8,000 tons
was sold for a total KRW 53 million (USD 51,035) compared with projected profits of KRW 1.3 billion
in 2011, KRW 6.4 billion in 2012, and KRW 10.7 billion in 2013.
Korea Coal saw a total loss of KRW 1.5 billion in 2011 from the Khotgor coal mine.
Source: Unuudur
МIАТ PLANS IPO
MIAT Mongolian Airlines is reportedly pursuing an economic evaluation ahead of a planned public
offering for this year. MIAT will sell 49 percent interest later this year on the Hong Kong Exchange,
according to a government privatization plan.
Source: News.mn
MEREX IPO RAISES MNT 2.6BN
Merex JSC 10 April launched its public offering on the Mongolian Stock Exchange through electronic
trading system according resolution of FRC.
Merex JSC sold 26 million shares to the public at MNT 100 per share. Founded in 2012, Merex is a
foreign trade and construction materials producer that is currently leading construction of a
concrete mixture factory in Ulaanbaatar. The factory will come with a mark TW-2500 from Korea
with the capacity to produce 150 cubic meters of concrete per hour.
Merex is the 14th company to release a public offering since 2005. Merex retained Standard
Investment LLC as its underwriter.
Source: Mongolian Stock Exchange
VIKING ASHANTI TAKEOVER OFFER REACHES 56.62% ACCEPTANCE
Viking Ashanti Ltd. has reported that acceptance for its off-market takeover offer for unlisted
Mongolian thermal and coking coal company Auminco Mines has reached 56.62 percent.
The acceptance puts Viking Ashanti on track to secure a package of advanced coal assets including
the lead Berkh Uul in northern Mongolia next to a rail link that connects with Russian markets.
Under the terms of the offer, which was launched earlier this month, accepting Auminco
shareholders will receive 60.6 Viking shares and 20.2 Viking options for every 100 Auminco shares
held. Auminco shareholders will emerge with a 47 percent stake in Viking, and play a major role in
the evolution of Viking as a participant in the Mongolian thermal and coking coal markets. The
combined entity could become a producer of thermal coal within the next 12 to 18 months.
"We look forward to moving to the 90% acceptance level as soon as possible, and concluding our
planned capital raising,‖ said Jack Gardner, Viking's chairman.
Viking‘s lead project, Berkh Uul, is located in northern Mongolia next to a rail link that connects
with Russian markets, and provides quick access to domestic power plants and industrial users at
Darkhan and Ulaanbaatar. Near term, low cost production is forecast, with a JORC resource of 38.3
million tons of high quality, open pittable unwashed bituminous coal.

6. Development risk is considered lower than for most Mongolian coal companies as overall capex for
Berkh Uul is low by most standards; start-up mining rate will not be large, with flexibility to build
over time with simple and proven mining and processing technology, thus reducing funding and
execution risk.
Source: Proactive Investors
ERDENE ANNOUNCES PRIVATE PLACEMENT
Erdene Resource Development Corp. announced its intent to issue a non-brokered private
placement for two million shares to Teck Resources Ltd. at a price of USD 0.175 per share for gross
proceeds of USD 350,000.
This deal fulfills Teck's equity investment obligation pursuant to the strategic alliance between
Erdene and Teck announced by Erdene on 11 April last year. The placement is expected to close on
or before 18 April, and is subject to certain conditions, including the receipt of all necessary
approvals such as the approval and acceptance by the Toronto Stock Exchange. All securities to be
issued pursuant to the private placement will be subject to a four-month hold period from the
closing date.
Net proceeds of the private placement will be used for exploration of Erdene's Teck-Alliance
projects in Mongolia, including the Khuvyn Khar copper porphyry project where additional
geophysical and geologic mapping programs will be completed during the second quarter.
Source: Erdene Resource Development Corp.
MELIA HOTELS INTERNATIONAL TO OPEN GRAN MELIA ULAANBAATAR
Baz International and Melia Hotels International signed an agreement for management of the newly
built Gran Melia Ulaanbaatar. The 150-room hotel will be the 13th hotel in the Gran Melia Hotels &
Resorts luxury portfolio and is scheduled to open in 2017.
Located on the top 12 floors of the newest skyscraper in Ulaanbaatar, it will have a rooftop
restaurant and helipad, and the signature Yhi Spa, Red Level and Red Glove Service concepts. The
hotel is located in the epicenter of the financial and government sector of the city, the most
convenient location for both business and leisure travelers alike.
Source: Travel Weekly Web
CHICKEN FARM TO OPEN IN UVURKHANGAI
A new chicken farm in Uvurkhangai Aimag has transported 1,000 chickens from Ulaanbaatar for
production to launch in August.
Uvurkhangai currently produces just 10 percent of the eggs consumed in the province. This project,
financed by the local SME Development Fund and a Japanese cultural organization cooperating with
the province, had four acres of land approved for the farm by the provincial government.
Source: Zuunii Medee
ERDENET FACTORY PARTNERS WITH ORKHON FOR DEVELOPMENT
Erdenet Factory LLC has partnered with Orkhon Aimag for social investments into local communities
this year.
The local administration for Orkhon plans to cooperate in multiple construction projects, such as a
waste facility. Target areas for development include the environment, ecology, urban development,
landscaping, infrastructure, and education.
Source: Montsame
MONGOLIA MINING 2014 EXPO IN UB
The fourth Mongolia Mining Expo to be held at the Buyant Ukhaa Sports Palace from 10 to 12 April is
expected to be the largest ever, with 120 registered exhibitors from 16 different countries.
Representatives of the Ministry of Mining of Mongolia, Mineral Resource Authority, and Nuclear
Energy Agency will deliver presentations on Mongolia's mining development. Minex Co. Ltd. is
hosting the event while the Association of British Mining Equipment Companies will host a

7. networking event for the conference.
Source: News.mn
OT EMPLOYEE RECEIVES RUMSFELD FELLOWSHIP
An Oyu Tolgoi LLC strategist has received a Rumsfeld Fellowship from the United States.
The recipient is Ochirbat Shijir, a senior strategy and policy analyst at Oyu Tolgoi. The Rumsfeld
Fellowship is awarded each year to young leaders and experts from Central Asia, the Caucasus,
Afghanistan, and Mongolia to participate in a six-week research program at the Johns Hopkins
School of Advanced International Studies in Washington, D.C.
The fellowship program provides a unique opportunity for Shijir to meet with colleagues working in
related fields in the United States. Shijir will have the opportunity of meeting Ambassador John
Bolton, former U.S. Ambassador to the United Nations (2005-2006), Zbigniew Brzezinski, former
National Security Adviser to President Jimmy Carter, and former U.S. Defense Secretary Donald
Rumsfeld. Shijir will also meet experts related to her work on geopolitics and foreign investment,
as well as think tanks on China-Russia relationships, trade, and infrastructure projects.
Shijir is the second person from Oyu Tolgoi to receive this fellowship. In 2010 Baasantseren
Tumurbat, Oyu Tolgoi board secretariat specialist, received this fellowship.
Source: Oyu Tolgoi LLC
GE RETHINKS THE 20-YEAR CEO
Jeff Immelt may give up leadership of Salkhit wind farm turbine supplier General Electric Co. (GE)
sooner than his expected 20-year tenure, as he and fellow directors re-evaluate the right term for
its chief executive, people familiar with GE's thinking said.
The chief executive, who has run the industrial conglomerate for nearly 13 years, has led several
board discussions about shortening the expected tenure for GE's next chief executive to between 10
and 15 years, the people said. And while Mr. Immelt maintains strong support on the board,
directors increasingly expect that he will step down before reaching the two-decade mark in 2021,
the people said.
Immelt, who turned 58 in February, hasn't said he is ready to go, and would likely give directors
notice well ahead of time, the people said. But directors now realize that it is too taxing for any
person to spend two decades managing the USD 258 billion company whose businesses include
incubators, jet engines, light bulbs and loans in more than 170 countries.
Some at GE say the idea of a 20-year term has been overplayed by people outside the company and
that there was never a set duration for Immelt, who succeeded Jack Welch, a 20-year chief
executive. Over Immelt's tenure, the stock price has lagged behind the more than 65 percent gain
for the S&P 500 index of the country's biggest companies and, as of Monday's close, was 37 percent
below where it was when he took over. That is starting to turn around. Last year GE's shares rose
more than 30 percent. Immelt is in the process of shrinking GE's finance operation—which is
profitable, but unloved by investors—as well as slashing operating costs to improve industrial profit
margins.
GE has long leaned toward long-serving chief executive officers. Five of the conglomerate's past 11
chiefs have held the job longer than 13 years. The board now believes the company has outgrown
those expectations.
Source: Wall Street Journal
ECONOMY
MONGOL BANK: FX AUCTIONS, TREASURY BILLS, 1-AND 28-WEEK BILLS
The Bank of Mongolia on 17 April reported the sale of USD 10 million from total bids of USD 18
million for closing rates of MNT 1,779.01 and MNT 285.75, respectively. On the same day, the Bank
of Mongolia received an equivalent of USD 82.3 million.
The central bank on 16 April reported earnings from its regular auction for one-week government

8. worth MNT 459.6 billion. The bank on 17 April reported a regular auction for 12-week treasury bills
at a face value of MNT 40 billion worth MNT 1 million each. The central bank received MNT 94
billion in bids for the bills at a discounted price for a weighted average yield of 9.84 percent.
Source: Bank of Mongolia
MONGOLIA Q1 TRADE SURPLUS AS CONSUMPTION IS DRAMATICALLY CUT
A trade surplus of USD 9.1 million in the first quarter of 2014 compares to trade deficit of USD 395.8
million a year earlier, the National Statistical Office says today in statement. Mongolian people are
dramatically cutting consumption.
Mongolia‘s exports increased 22 percent year-on-year to USD 986.9 million for the first three
months of this year, according to a release from the National Statistics Office. Imports decreased
17.3 percent to USD 996 million in the first three months, according to the agency. In March, the
consumer price index increased 0.8 percent compared with the previous month and 12.4 percent
compared to the same period a year earlier, according to the agency.
Outstanding loans at the end of March reached MNT 11.3 trillion, an increase of 2 percent compared
to the previous month and 54.1 percent compared to the same period a year earlier, according to
the agency. Non-performing loans in the banking sector reached MNT 594.5 billion, a 92.6 percent
increase compared to the same period a year earlier, according to the agency.
Source: Bloomberg, Cover Mongolia
MIBG 2014 COUNTRY OUTLOOK REPORT
Mongolian Investment Banking Group released its Mongolia-Country Outlook 2014 report for
Mongolia that provides an overview of the legislative, regulatory, and business environment while
highlighting the important changes that have taken place over the past six months.
2013 saw USD 1.5 billion spent through the Chinggis bond offering, which has set forth an ambitious
plan to connect every provincial center to Ulaanbaatar by paved road. That would in turn put
greater controls on petroleum prices as well as other consumables. Recent changes in the
legislative environment—such as the Investment Law, Securities Market Law, and Investment Funds
Law—suggest that government finally realizes the importance of foreign direct investment (FDI),
which accounts for 40 percent of Mongolia‘s annual gross domestic product (GDP). Furthermore, it
would appear that they share the Source's view that the resurgence in FDI is needed in order to
stabilize the economy and provide the necessary foundation for continued expansion.
―The fundamentals of Mongolia are as strong as they have ever been,‖ reads the report. ―The
country is resource rich, sitting on the doorstep of China—the most populous and the second largest
economy in the world. The somewhat rocky political landscape of Mongolia is reminiscent of any
democratic nation. Political instability does present challenges, however the country‘s policymakers
have remained true to its development platform—which has relied on its free market economy,
private sector, and foreign investors during its 24 years of democratic history.‖
To read the full report click here.
Source: Mongolian Investment Banking Group
MONGOLIA TO CONDUCT POPULATION CENSUS IN 2015
The National Statistical Office will run a population census nationwide five years ahead of schedule,
in 2015.
This will be the first-ever intermediate census – normally, the national census to occurs once a
decade. In addition to population size, the census measures education, literacy, religion, economic
activities, employment, household composition and living conditions.
The last census, taken in 2010, showed a population size of 2.755 million. That year's census also
collected data online from Mongolians living abroad. The census found that Mongolia had 107,410
citizens living abroad for more than six months. It also found 16,428 foreign citizens and stateless
people living for more than six months in Mongolia.
Source: Montsame

9. MONGOLIA TO TRANSFER TO DIGITAL TV IN JULY
Mongolia will transfer its television broadcasts from analogue to digital by July 31, said a
broadcasting authority at last week‘s weekly ―Development Hour‖ meeting.
Chairman of the Information Technology, Post and Telecommunication Authority Ts. Jadambaa gave
the announcement during a summary of activities since 2012. He also updated on the government
initiative to launch two satellites into space by 2016. He said the first would be for observation
while the second would be for communications.
Source: Undesnii Shuudan
NEMA REPORTS 66 FOREST FIRES
The National Emergency Management Agency (NEMA) reported that the number of forest fires had
grown 10 fold this year from the year before.
NEMA reported 66 forest fires in 48 counties throughout 14 different provinces since the start of
2014. The agency explained that the main reasons for the increase was the small snowfall during
winter, the early warming from spring and drier than usual conditions. Mongolia saw moisture levels
reach dangerously low levels this year, with conditions expected to extend through April and May.
Authorities have cautioned against building fires during this time.
Last weekend alone had fire fighters extinguish fires in 8 counties in 3 provinces.
Source: Zuunii Medee
HUNTING QUOTAS RELEASED
Mongolia has released the hunting quotas for 2014.
The hunting quota for 2014 has been set at 28 wild sheep, 41 wild goats, 20 red deer, 20 gray
wolves, 20 roe deer and 200 Mongolian gazelle. The quota for the capture of saker falcons has been
set at 20. The government is allowing for the capture and release of 310 taimen fish for later this
year.
In 2013, 15 wild sheep, 32 wild goats, 10 red deer, 4 gray wolves, 4 roe deer, and 4 wild boar were
hunted for sport in 28 counties. The fees collected for hunting permissions produced MNT 520
million for the local and central governments last year. Mongolia's countryside has 3 active local
community unions that act for environmental protection, in addition to 6 partnerships, 4 NGOs and
2 community groups for herders.
Source: News.mn
TAXONOMY PROVES MAZAALAI TO BE INDEPENDENT SUBSPECIES
A genetic study by Mongolian researcher T. Odbayar at Idaho University in the United States has
proven that the Gobi bears (known in Mongolia as Mazaalai) are genetically different from
Himalayan bears.
Odbayar announced the results of her study on Mazaalai at a press conference at the Ministry of
Environment and Green Development on Tuesday. While previous studies have determined that
Mazaalai is a genetically separate species from brown bear, this latest finding shows that the
genetic information collected is different from the Himalayan and Tenger mountain bears.
Mazaalai, or Ursus arctos gobiensis, is a subspecies of the brown bear, Ursus arctos, which is found
in the Gobi Desert. The bear is currently listed as "very rare" in Mongolia's Red Book, a document
listing Mongolia's endangered species, and may represent a threatened subspecies because of the
small population. A recent population estimate published in a 2012 report found that there are
between 22 and 31 individual bears living in the Gobi desert.
Mazaalai is sometimes classified as being of the same subspecies as the Tibetan blue bear because
of morphological similarities and the belief that the desert-dwelling Gobi bear represents a relict
population of the blue bear. However, the Mazaalai is also sometimes classified as its own
subspecies. The Gobi bear closely resembles other Asian brown bears.
Source: Montsame

10. COPPER MINERS LOOK PAST PRESENT PAIN TO FUTURE GAIN
These are tough times in the copper world. Prices have fallen nearly 10 percent in 2014, testing 4-
year lows. Meanwhile, the long-awaited global surplus of refined metal is mounting. So why is the
gloom lifting among miners?
―Short-term pain, long-term gain?‖—the title of one of the main presentations at the annual copper
conference in Chile—offered a hint: better days surely lie ahead. Several key reasons to be positive
emerged from Cesco week in Santiago. First, the plunge in prices is no disaster. Some small, high-
cost producers may be struggling, but the industry‘s healthy margins mean larger miners and
producers remain comfortable.
Perspective is also needed about the surplus. Thanks to the commissioning of new projects and
mine expansions, the refined copper market is oversupplied. But the size of the forecast surplus—
less than 500,000 ton at its peak in 2016—is small, representing only about 2 percent of current
global consumption. And it will be short lived. Towards the end of the decade, the market will
swing back into deficit, with the supply gap quickly widening.
The influence of China on the copper market is another hot topic. For the next decade, the
increase in Chinese demand could average 3.5 percent a year, according to CRU, the commodity
consultants, compared with 11 percent annually over the past 10 years. This may sound worrying for
producers, given that China accounts for more than 40 percent of global demand, but it should not
be, said Vanessa Davidson, CRU‘s group manager for copper. ―In terms of consumption, China has
reached a critical mass where even a slower growth rate is going to generate a decent volume
increase.‖
However, the contrasting performances of copper and aluminum over the past decade—the red
metal is up 319 percent versus 40 percent for the light metal—means increasing numbers of
companies and governments are looking more favorably at aluminum for cabling, says Christophe
Allain, corporate purchasing director at Nexans, the French cable manufacturer.
―Be sure, there will be substitution and it will have an impact on overall copper demand in the
world.‖
Source: Financial Times
COAL SLUMP TURNS INNER MONGOLIA'S ORDOS INTO GHOST TOWN
A slump in the coal market has dealt a devastating blow to the economy of Ordos in Inner Mongolia,
which has also affected the local hotel and realty industries as hotels go vacant and residential
developments go unoccupied. The situation presents a possibility for Mongolia if coal price
weakness and disputes with miners continue.
The slump in Ordos has almost paralyzed the economy of the city, once dubbed the "little Hong
Kong" of northern China, since coal production was the mainstay of its economy. Faced with
mountainous inventories, many coal mines have suspended operation, which has had consequences
including scant business for truck drivers, a less than 30 percent occupancy rate for hotels, the
closure of restaurants in the neighborhood of the mines and large numbers of unfinished realty
projects. Municipal financial income has plummeted by 90 percent.
Man Shi Group, a leading local coal producer, is now selling less than 100 40-ton truckloads of coal a
day, one-tenth of the 1,000 truckloads seen in the past. Traffic jams used to be a major headache
for the city but are no longer a problem. The wide empty streets are full of empty houses. Steel
and cement factories have also suspended or scaled down their operations as part of the ripple
effect of the slump and few ships dock at the local harbor. Due to sluggish demand, the local car
freight rate has dropped to CNY 240 (USD 38.55) per ton, a little over one third of last year's level.
The Beijing-based Securities Daily cited the president of the coal transaction center in Inner
Mongolia, Shi Qiuming, as saying that in their heyday coal-mine owners with pockets full of cash
invested heavily in the local realty market, but they have largely withdrawn from the second half of
2012 onward. The phenomenon has seriously affected local finances. Tax payments by Gungjiata
coal mine, for instance, have plunged to CNY 20 million yuan a month, a tenth of the 200 million
yuan (USD 32.1 million) a month seen last year.
Source: Want China Times

11. GIVING CREDIT FOR CHINA'S SLOWDOWN
There was a time when credit didn't much matter to the Chinese economy. These days, it seems to
be everything.
While the official gross domestic product (GDP) numbers don't come out until Wednesday, China's
economy likely grew at an anemic pace in the first quarter. And it's increasingly clear why: a
Beijing-directed credit drought. Overall lending in the economy, known as total social financing,
grew in March at the slowest pace compared with a year earlier since 2005. Traditional bank
lending carried most of the credit-creation burden, yet there was only a 13.9 percent increase in
loans outstanding in March. That's low given that companies often front-load borrowing in the first
part of the year. Growth in trust-company loans has evaporated so far this year as high-profile
defaults rocked the shadow-banking industry. It was a similar scene for China's corporate-bond
market, which suffered its first default in March.
Policy makers don't target total social financing per se, but they do keep close watch on a measure
of money supply known as M2, which tends to rise in tandem with lending. It grew 12 percent in
March from the year before. That's faster than nominal GDP, indicating there is still excess cash
sloshing around the economy. But it's the slowest money-supply growth since 2001, when credit
wasn't so important as grease for the economic wheel. Back then, cheap labor, market reforms and
surging exports drove the boom.
China's growth since 2009 has been driven by debt-fueled investment spending, especially on real
estate and transportation. Authorities are aware of the risk this creates for the economy and for
now seem to be doing something about it by squeezing some reckless lending. Beijing will tackle the
debt situation gradually, with no sudden closing of the credit taps. Its hope is that new drivers of
growth, such as reforms to state-owned enterprises, financial liberalization and rising consumption
in urban areas, will make weaning the economy off its credit dependence easier.
In the meantime, though, a modest rebound in lending to sooth growth pains in the coming quarters
is likely. Without it, China's economy could go into withdrawal.
Source: Wall Street Journal
POLITICS
ALTANKHUYAG SUBMITS ECONOMIC STIMULUS BILL
Prime Minister Norov Altankhuyag presented a new economic stimulus bill that would streamline
projects deemed essential to the economy.
This week the government will have to revise the parliamentary decree to stimulate the economy
and create a strategy for how to best complete projects with significance to the economy in a
timely fashion.
The Mongolian People's Party (MPP) meanwhile is filing new complaints against Altankhuyag's
government, with direct criticisms of his economic stimulus bill. The MPP has partnered with
bankers and other representatives of the private sector to revise Altankhuyag's bill. Representatives
of commercial banks criticized the bill for its encouragement of the entrance of foreign banks into
the market, saying it would bring risks to Mongolia's banking sector. Those representatives now
stand behind parliamentarian S. Byambatsogt in his belief that the bill will only exacerbate
economic conditions.
The government found last week during a recess taken to investigate the stimulus bill that the
government had violated Mongolian law in the drafting of the 2014 budget, said parliamentarian D.
Oyunkhorol. The MPP found the government in breach of Parliamentary Decree No. 60, issued 8
November 2012, that included the need for parliamentary approval of a four-year development
program in the state budget and that the Standing Committee on budget had overstepped its bound
in the implementation of the budget. The MPP also claims that the government was in violation of
another decree by parliament, No. 63 that required the government to provide an explanation by 1
April as to why some projects had discrepancies in budget allotments and why some projects were
never completed.

12. ―We have the right to hold officials who brought the economy to such conditions accountable,‖ said
Byambatsogt. ―Many members of Parliament from other parties are involved on one, or even two or
three standing committees; the question is if there should be a parliament that cannot control
government authorities.‖
Source: Undesnii Shuudan
STANDING COMMITTEE BACKS “GLASS ACCOUNTS” TRANSPARENCY BILL
Standing Committee members have backed Tsakhia Elbegdorj's ―Glass Accounts‖ transparency bill.
The bill aims to introduce greater transparency into public spending. Information would be made
public on budget income, expenditures, cash flows, account balances, and debt. Those who support
the law say a public monitoring system would be installed as well as a ―smart‖ tax system.
Source: News.mn
SANT MARAL RELEASES MARCH 2014 POLITBAROMETER
The Sant Maral Foundation has posted the results of the March 2014 Politbarometer survey, which
measures the political attitudes of Mongolian voters.
The survey, conducted from 17 to 30 March, took a sample of 1,200 respondents in Ulaanbaatar as
well as Bayankhongor, Bulgan, Zavkhan, Selenge, Umnugobi, and Sukhbaatar Aimags (split
proportionally by four regional divisions and Ulaanbaatar). Tabulations are sorted by ―capital,‖
"countryside" and ―nationwide‖ when relevant.
Read the full report here.
Source: Sant Maral Foundation
ABE MEETS MONGOLIAN PRESIDENT POSSIBLY OVER N. KOREA ABDUCTIONS
Prime Minister Shinzo Abe met with Mongolian President Tsakhia Elbegdorj on Wednesday, in an
unscheduled meeting that suggests Japan has been asking for help from Mongolia to address the
past abductions of Japanese citizens by North Korea.
Mongolia has diplomatic ties with North Korea, while the abductions by the country's agents in the
1970s and 1980s have prevented Japan and the North from normalizing bilateral relations.
"We discussed various issues," Abe told reporters after having lunch with Elbegdorj at the prime
minister's official residence in Tokyo, declining to comment in detail.
It is thought that Abe may have asked for Mongolia's support as Japan has recently resumed
intergovernmental talks with North Korea that are also aimed at addressing Pyongyang's nuclear and
missile development programs. Abe expressed his appreciation to Elbegdorj for Mongolia's
cooperation in enabling a meeting in Ulaanbaatar in March between the parents of one of the
abductees, Megumi Yokota, and her daughter who lives in North Korea, a Japanese government
source said. Chief Cabinet Secretary Yoshihide Suga said the two leaders "exchanged views on
regional situations" during the 75-minute talks.
As for why the meeting had not been included in the day's official schedule of the prime minister,
the top government spokesman said Elbegdorj wanted a meeting in a quiet environment with only a
few people present. The summit talks followed a similar event in September, when the premier
invited the president to his private residence, leading to the secret meeting between Yokota's
parents and their granddaughter.
Source: Global Post
U.S., RUSSIAN AMBASSADORS FACE OFF ON CRIMEA
Both the U.S. and Russian ambassadors have made public statements on Russia's actions in Ukraine,
trying to rally support for their respective causes among local citizens.
U.S. Ambassador Piper Campbell began the debate with a statement released to newspaper Udriin
Sonin titled "Stand together, united for Ukraine." She asked the Mongolian public to join the
international community in the demand for respect of ―Ukraine's sovereignty and territorial
integrity‖ in response to the deployment of Russian troops into Ukraine and the return of Crimea to
Russia. She persuaded readers to stand up against what she called the illegal actions of Russia.

13. ―This is not just about Ukraine. It is about basic principles that govern relations among nations in
the 21st century,‖ wrote Piper. She added, ―Just because Russia has a deep history with Ukraine
does not mean it should be able to dictate Ukraine‘s future.‖
Russian Ambassador Iskander Azizov responded to those remarks with a statement on 16 April,
asking that Mongolia listen to Russian President Vladimir Putin's side of events on 17 April in a
question-and-answer radio transmission. ―Russia‘s real concern is over the developments in Ukraine
and some Governments‘ grand standings are on principles that are lofty but as of late very often
neglected by the West itself,‖ he said.
Source: Info Mongolia
MONGOLIA INITIATES DIRECT FLIGHTS TO KAZAKHSTAN
Mongolia and Kazakhstan have inked a memorandum for the implementation of a intergovernmental
agreement that would allow for direct flights between Mongolia and Kazakhstan, said the Kazakh
Ministry of Transport and Communications on 11 April.
"The memorandum is expected to be signed as part of the sixth meeting of the Kazakh-Mongolian
intergovernmental commission on trade, economic, scientific, technical and cultural cooperation,
to be held in the capital of Mongolia in May 2014," according to a statement.
The agreement was made during the first intergovernmental working group meeting for air traffic.
Mongolia and Kazakhstan have agreed to expedite the signing of a cooperation agreement for
aviation search and rescue operations as well as a memorandum of understanding between their
respective investigative agencies for investigations into air travel incidents.
Source: Cihan
STATE, INTERNATIONAL ORGANIZATIONS PARTNER FOR ANTI-CORRUPTION
The Independent Agency Against Corruption, Asia Foundation and Ulaanbaatar Mayor's Office have
partnered for their ‗Together‘ initiative to build good governance and transparency while
preventing corruption.
Training was held on internal audit matters for the Procurement Agency, National Audit Authority,
and Professional Inspection Authority. Later, discussion was held among staff city agencies for
urban planning, education, health, and property.
A website has been made for the dissemination of information regarding public services for the aim
of greater transparency.
Source: Montsame
RUSSIAN EMBASSY TO ACCEPT ONLINE VISA APPLICATIONS
The Consular Department of the Russian Embassy in Ulaanbaatar will begin to accept online visa
applications beginning 1 June.
Travelers make apply for visas at the website visa.kdmis.ru, which offers its service in Russian and
English. After 1 June the Consular will no longer accept paper applications.
Source: Montsame
INDIA OFFERS AID TO OKHON, BULGAN
The Second Secretary and head of chancery at the Indian Embassy, Shailesh Lakhtakia, has paid
official visits to Bulgan and Orkhon Aimag to offer services from the Indian government.
Lakhtakia met with Bulgan Governor D. Erdenebat l1 April, where he proposed to have locals
participate in short- and long-term scholarship program backed by the Indian government.
Applicants would have to possess English language skills and major in business management,
information technology, statistics or a foreign language. Lakhtakia next visited Orkhon on the
following Monday to seek cooperation opportunities with Erdenet in health, copper production,
education and information technology spheres.
Members of the Indian Department of Commerce to Mongolia are expected to visit this June where
a cooperation proposal is to be discussed officials.
Source: Montsame

14. ULAANBAATAR MAYOR GIVEN JICA PRESIDENT AWARD
The president of the Japan International Cooperation Agency (JICA) presented Ulaanbaatar Mayor
Erdene Bat-Uul with the JICA President Award on 17 April in Ulaanbaatar.
JICA President Akihiko Tanaka said Bat-Uul received the award for his efforts to improve the socio-
economic conditions in the city as well as its infrastructure. Ulaanbaatar partnered with JICA to
develop a master plan for the redevelopment of Ulaanbaatar's ger districts from 2007 to 2009. A
project proposal for the redevelopment of the ger districts for the years up to 2020 and 2030 was
later submitted to and approved by Parliament.
Source: News.mn
TAKING STEPPES: MONGOLIAN CIVIL SOCIETY LEADS THE WAY ON EITI
Since the massive Oyu Tolgoi gold and copper mine opened in the Gobi Desert in 2010, billions of
Mongolian tugrug have poured into the government‘s coffers in Ulaanbaatar. Rio Tinto, the Anglo-
Australian majority owner of the mine, provides grants and donations to communities in the
surrounding Khanbogd district, as well as year-round assistance to local camel and goat herders.
But some citizens have criticized these companies rather than praise them. A team of Mongolian
civil society representatives who participated in last year‘s global conference of the Extractive
Industries Transparency Initiative (EITI) in Sydney expressed concerns that such contributions from
mining companies, though recognized and appreciated, are not enough. At a September discussion
organized by Mongolia‘s Publish What You Pay coalition (PWYP), in partnership with the Revenue
Watch Institute, participants agreed that compliance with the new EITI Standard is even more
important. And for the districts at the heart of Mongolia‘s transformative mining boom, that begins
with community-level engagement.
Rural citizens now demand very specific information about the mining operations within their
borders. For example, herders want to know the names of license-holding companies, their ID
numbers and owners, so as to hold them accountable from day one. More importantly, they want to
know which mountains and hills are affected and how close their homes and winter houses sit to the
licensed acreage. Mongolian laws require that local citizens and elected assemblies formally
consent to the issuance of mining licenses, but residents and especially herders are too often left
out of the process, while contracts signed with the mining companies are often far from public
scrutiny.
Local authorities can help monitor and inspect progress, now and in the future, through district
resources and financing. The work to implement the new EITI Standard in rural Mongolia is just
beginning. Local efforts in Khanbogd and Tsogttsetsii are a start, and they offer hope to other
districts that seek to benefit from Mongolia‘s wealth of natural resources.
Author Tserenjav Demberel is the executive director of Transparency Foundation, PWYP Mongolia
member. Dorjdari Namkhaijantsan is the Mongolia country coordinator for Revenue Watch.
Source: Revenue Watch

15. ANNOUNCEMENTS
CSR FORUM, KEMPINSKY HOTEL, 21 APRIL
The U.S. Embassy and the Business Council of Mongolia will host the Corporate Social Responsibility
(CSR) Forum on 21 April from 09:00 to 12:00 at the Kempinski Hotel.
The Forum will include presentations on CSR practices at leading U.S. companies working in
Mongolia followed by Q&A and discussion. This CSR event is free of charge.
For more information or to attend, please RSVP with the U.S. Embassy by contacting Daria
Purevsuren at DarisurenP@state.gov or calling 7007-6105.
___________________________________________
MONGOLIA INVESTMENT SUMMIT, LONDON, 30 APRIL-1 MAY
The second annual Mongolia Investment Summit in London will be 30 April and 1 May.
An additional post-summit workshop will be held, giving participants presentations, discussions,
panels and networking opportunities. Keynote speakers include Ochirbat Chuluunbat, vice minister
for economic development, Dorjpurev Dulamsuren, vice minister for energy, and Clemente
Cappello, chief investment officer at Sturgeon Capital. Looking forward towards the summit, Mines
and Money conducted an interview with Erdenebulgan Oyun, Deputy Minister of Mining, and James
Passin from Firebird and Travis Hamilton from Khan Management to share their views on the
Mongolian investment market. Visit mongoliainvestmentsummit.com to read the interviews.
BCM members can take advantage of a special 25 percent discount by using the offer code
UL912BCM when registering. Register online at mongoliainvestmentsummit.com/London, call +44
(0) 207 216 6056, or email cs@resourcefulevents.com
___________________________________________

16. GTR‟S 3RD ANNUAL MONGOLIA TRADE & COMMODITY FINANCE CONFERENCE, BLUE SKY HOTEL,
13 MAY
The Business Council of Mongolia is offering members a limited number of free corporate passes
available (reserved for exporters, traders, manufacturers and producers of physical goods) and a 10
percent discount to GTR's 3rd Annual Mongolia Trade & Commodity Finance Conference 13 May at
the Blue Sky Hotel
With its focus on Mongolia‘s mining, minerals and vast commodity-led growth, this will be the key
trade gathering for the country‘s senior business leaders, providing timely insight on the challenges
facing the local banking and private sectors, as well as offering perspectives from the industry‘s key
supporting actors.
BCM is an institutional partner for the event, and so is offering members a 10 percent discount
when they enter the code BCM10. Contact Grant Naughton at gnaughton@exportagroup.com for
more information.
___________________________________________
BCM MEMBERS RECEIVE 15% DISCOUNT FOR OIL AND OIL SHALE MONGOLIA , 14-15 MAY
The Oil and Oil Shale Mongolia 2014 international investment conference, hosted by the Petroleum
Authority of Mongolia, will be held in Ulaanbaatar on 14 and 15 May.
The event will be attended by international investors, oil, gas, and oil shale companies, service
providers, consultancies, equipment suppliers, and traders.
Delegates will have a unique opportunity to network with industry's key contacts at the country's
first international investment conference on oil, gas, and oil shale. They will have the opportunity
to obtain vital information on legislation and policies on oil, gas, and oil shale exploration and
production regulations from the officials of the Ministry of Mining and Petroleum Authority of
Mongolia. Moreover, projects on oil refinery, exploration, production, plus oil shale projects will be
presented.
BCM members will receive an exclusive 15 percent discount. For more information call +976 9909-
1765 or 9910-5877, email info@oilmongolia.com or logon to OilMongolia.com.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAY, 19:00 TO 19:10
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:00 to 19:10 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM WORKING GROUP NEWS
The BCM Logistics Working Group`s first meeting was held on Wednesday, 16 April with 12 members
attending.
Jim Dwyer, Executive Director of BCM moderated the session.
Members attending: Frank Goeddeke-IF&E, Iderbat A-Aurum Partners, Mattias Ahlin-Scania, Nergui
Ch-QMC, Odkhuu Myagmar-OT, Oliver Thirlwall-Arec Mortgage Corporation, Tengis G-Monroad,
Nicole Puntsag-Schneider Electric, Otgonjargal G-Mongolian National University.
BCM`s Logistics working group members elected Mattias Ahlim from Scania as WG chairman.
Congratulations to the BCM`s new working group chairman.
Speakers and topics were:
-Major problems in the Mongolian logistics sector.
Next Meeting scheduled on Tuesday 10 June. If you have interest joining the Logistics working
group, please contact Erdenetsetseg at erka@bcmongolia.org.
___________________________________________

17. BCM IN THE UNIVERSITY CLASSROOM NEWS
Business Council of Mongolia (BCM) has been progressing with its ‗BCM in the University Classroom‘
series since March 2012. Led by BCM‘s Education Working Group, the program provides lectures at
universities to help inspire students and give them direction for their future careers. The series has
grown to include an average of 10 lectures per academic year. As of now, 1,416 students and
teachers have participated to BCM in the University Classroom Project.
On 16 April Mr. Nick Cousyn, COO of BDSec, gave a presentation entitled ―BCM Economic and
Capital Markets Update, the Good and the Not So Good‖ to an audience of 63 students in the 4th
term undergraduate Economy and Banking class at the Institute of Finance & Economics (IF&E).
Nick‘s presentation was very open and full of Q&A.
The IF&E named Nick an honorary member of the Specialized Council of the Finance Management
program. Congratulations to Nick on his new role in the education sector of Mongolian youth.
BCM notes with huge thanks that Nick has now spoken 4 times in ‗BCM in the University Classroom‘
series!
The next ‗BCM in the University Classroom‘ series will be held on 25 April at the Mongolian
University of the Humanities with approximately 600 students attending. A Mongolian Talent
Network team has been invited to speak.
If you like to share your experience on some specific topic, you can discuss with us for the next
school term. Please contact:erka@bcmongolia.org.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
• ―Anti-Corruption legislation and State Policy‖ (Mongolian) by D. Munkhjargal, Prevention and
Public Awareness Department, Senior Commissioner, Independent Authority Against Corruption
(IAAC) Mongolia at the ―ANTI-CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE
ON TRANSPARENCY‖ Training seminar, Mar 06, 2014
The presentation below was made at Mongolian National University as part of the ―BCM in the

18. University Classroom series‖ on February 27, 2014:
• Ser-Od Inchinkhorloo, Vice Director, BCM, ―Investment environment: Past, Present, Future‖
(Mongolian)
The presentation below is from the February 24 BCM monthly meeting:
• О. Зоригт, Гүйцэтгэх захирал, Майн Инфо "Майн Инфо ХХК-ний товч танилцуулга", МБЗ-ийн 2
сарын 24-ний сарын хурал
Dr. Khashchuluun, Executive Director, National Council of Private Sector Support, ―Taxation Impact
Research‖ to BCM Tax Working Group, February 19, 2014
• ТАТВАРЫН БАГЦ ХУУЛИЙН ӨӨРЧЛӨЛТ: ХУВИЙН ХЭВШИЛД, Ч. Хашчулуун, Хувийн хэвшлийг
дэмжих үндэсний зөвлөлийн гүйцэтгэх захирал 2014.02.19
20 Presentations from Coal Mongolia, 20-21 February, 2014:
• Уул уурхайн сайд Д. Ганхуяг, Төрөөс Эрдэс Баялгийн Салбарт Баримтлах Бодлого, Нүүрсний
Салбарыг Хөгжүүлэх Стратегийн Чиг Хандлага, Коал Монголиа 2014, 2 сарын 20-21.
• Сангийн сайд Ч.Улаан, МОНГОЛ УЛСЫН САНГИЙН ЯАМ, Улсын төсөвт нүүрсний салбарын
үзүүлэх нөлөө, татварын орчин шинэчлэл, Коал Монголиа 2014, 2 сарын 20-21.
• Монгол орны нүүрсний салбар дахь байгаль орчны асуудал, Байгаль орчин, ногоон хөгжлийн
яам, ХБОБНГ-ын дарга Д.Энхбат Коал Монголиа 2014, 2 сарын 20-21.
• НҮҮРСНИЙ АЖ ҮЙЛДВЭРЛЭЛИЙГ ХӨГЖҮҮЛЭХ ТЭЭВЭР ЛОЖИСТИКИЙН АСУУДЛУУД:
Л.ПҮРЭВБААТАР ТӨМӨР ЗАМЫН ИНЖЕНЕРҮҮДИЙН ХОЛБООНЫ ЕРӨНХИЙЛӨГЧ, ―УУЛ УУРХАЙН
БҮТЭЭГДЭХҮҮНИЙ ТЭЭВЭРЛЭЛТ‖ Коал Монголиа 2014, 2 сарын 20-21.
• МОНГОЛ УЛСЫН НҮҮРСНИЙ САЛБАР ДАХЬ ХӨРӨНГӨ ОРУУЛАЛТ, ХУДАЛДААНЫ ТААТАЙ ОРЧИН
БҮРДҮҮЛЭХ НЬ,ЭДИЙН ЗАСГИЙН ХӨГЖЛИЙН ДЭД САЙД О.ЧУЛУУНБАТ Коал Монголиа 2014, 2
сарын 20-21.
• Уул уурхайн дэд сайд О. Эрдэнэбулган, Олон улсын нүүрсний зах зээл дэх Монгол улсын
өрсөлдөх чадварыг нэмэгдүүлэхэд төрийн оролцоо Коал Монголиа 2014, 2 сарын 20-21.
• Ж. Батцэнгэл, Монголын Уул Уурхайн Корпорацийн дарга, МОНГОЛЫН НҮҮРСНИЙ САЛБАРЫН
ӨНӨӨГИЙН НӨХЦӨЛ БАЙДАЛ, Тулгарч буй бэрхшээл ба шийдэх боломж Коал Монголиа 2014, 2
сарын 20-21.
• Аршад Саеид, Пийбоди Энержи компанийн Монгол ба Энэтхэг улсыг хариуцсан Ерөнхийлөгч,
Дэлхийн нүүрсний зах зээл, Монгол улсад үзүүлэх нөлөөлөл, Коал Монголиа 2014, 2 сарын 20-
21.
• МОЗА гүйцэтгэх захирал Ч. Хашчулуун, Занарын дэлхийн хувьсгал ба Монголын эдийн засагт
үр нөлөө, Коал Монголиа 2014, 2 сарын 20-21.
• Багануур Энержи Корпорэйшн ХХК, Нүүрс хийжүүлэх, шингэрүүлэх цогцолбор парк төслийн
товч танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.
• АДУУНЧУЛУУНЫ ЦАХИЛГААН СТАНЦ, БЕНЗИНИЙ ҮЙЛДВЭРИЙН ТӨСӨЛ, Ж.Золжаргал –
Төслийн удирдагч, Коал Монголиа 2014, 2 сарын 20-21.
• Ц.Ганцог, Жени Ойл Шэйл Монголиа ХХК Гүйцэтгэх захирал, ШАТДАГ ЗАНАРЫГ АШИГЛАХ
БОЛОМЖ, Коал Монголиа 2014, 2 сарын 20-21.
• Фэн Вэй эрчим хүчний зөвлөгөө өгөх компани, 2014 оны хятадын нүүрсний зах зээлийн
шинжилгээ болон үнийн таамаглал, Коал Монголиа 2014, 2 сарын 20-21.
• Я. Батсуурь, Эрдэнэс Таван Толгой ХК, Танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.
• Хишиг Арвин Индустриал ХХК, ҮНДЭСНИЙ КОМПАНИУДЫН ТӨЛӨВШИЛ, ӨРСӨЛДӨХ ЧАДВАР,
Коал Монголиа 2014, 2 сарын 20-21.
• Виртген Групп, МОНГОЛЫН НҮҮРСНИЙ ЗАХ ЗЭЭЛ ДЭХ WIRTGEN БРЭНДИЙН SURFACE MINER
БУЮУ АНГИЛАН ОЛБОРЛОГЧИЙН ТЕХНОЛОГИ БОЛОН АШИГЛАХ БОЛОМЖУУД, Коал Монголиа
2014, 2 сарын 20-21.
• ―Тавантолгой‖ ХК-ийн Гүйцэтгэх захирал Р.Сэддорж, Дэвшилтэт технологи ба инновацийг
нутагшуулах нь, Коал Монголиа 2014, 2 сарын 20-21.
• ―УУЛ УУРХАЙН ДЭД БҮТЦИЙН ХӨРӨНГӨ ОРУУЛАЛТЫГ ДЭМЖИХ ТӨСӨЛ‖ Төслийн Зохицуулагч

19. Б.Энхбаатар,Коал Монголиа 2014, 2 сарын 20-21.
• ДЭД САЙД Д.ДОРЖПҮРЭВ, Эрчим Хүчний Яам, 2014 ОНД ЭРЧИМ ХҮЧНИЙ САЛБАРЫН
ХИЙГДЭХЭЭР ТӨЛӨВЛӨСӨН АЖЛУУД БОЛОН ТӨРӨӨС БАРИМТАЛЖ БУЙ БОДЛОГО, Коал
Монголиа 2014, 2 сарын 20-21.
• Ай Эм Си Монтан Компани, Нүүрс баяжуулах талаар, Коал Монголиа 2014, 2 сарын 20-21.
The below presentation is from the January 27 BCM monthly meeting:
• ОЙ ХАМГААЛАЛД СУУРИЛСАН БИЗНЕС, Цэсэдийн БАНЗРАГЧ /Ph.D/, БОНЯ- ны ОЙ
ХАМГААЛАЛ, ОЙЖУУЛАЛТЫГ ЗОХИЦУУЛАХ ХЭЛТЭСИЙН ДАРГА, МБЗ-ийн 1 сарын 27-ны
гишүүдийн сарын хурал дээр
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „INTERVIEWS„, MONGOLIAN
BUSINESS NEWS‟, „PHOTO GALLERY‟
• ―Public-Private Partnership in Mongolia: Now and Future Prospects‖, E. Enerelt, Investment
Officer, ADB and Ts. Batbayar, Director of Concession Division, Ministry of Economic Development
at BCM monthly meeting, March 24, 2014;
• ―Areva in Mongolia: 15 years of presence – New perspectives in uranium mining‖, Thierry Plaisant,
General Director, Areva Mongol at BCM monthly meeting, March 24, 2014;
•―Impact of Corruption in Mongolia‖ by L. Sumati, Director of Sant Maral Foundation at the ―ANTI-
CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY‖ Training
seminar, Mar 06, 2014;
•―Anglo American Business Integrity policy and its application within the Business Globally‖ , Dr.
Graeme Hancock, President and Chief Representative Mongolia of Anglo American at the ―ANTI-
CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY‖ Training
seminar, Mar 06, 2014;
•Change of the package of taxation laws: private sector, Dr. Ch. Khashchuluun, Executive Director,
National Council for Private Sector Support, at the BCM`s Tax working group's meeting Feb 19,
2014;
•Economic and Capital Markets Update, Nick Cousyn, Chief Operating Officer, BDSec at the BCM
Monthly Meeting, Feb 24, 2014
15 Presentations at Coal Mongolia, February 20-21:
•Impact of Coal Sector on Government's Budget and the Taxation Regime , Ch. Ulaan, Minister of
Finance, MINISTRY OF FINANCE OF MONGOLIA
•Environmental issues in Mongolian coal mining sector, D.Enkhbat Ministry of Environment and
Green Development, Head of Environment and Natural Resources Department
•COAL INDUSTRIAL DEVELOPMENT, TRANSPORT AND LOGISTICS ISSUES: PRESENTATION TOPIC:
TRANSPORTATION OF THE MINING PRODUCT" Purevbaatar Luvsandagva, Head, Association of Railway
Engineering of Mongolia
•INVESTMENT INTO MONGOLIAN COAL MINING SECTOR AND CREATING AN ATTRACTIVE ENVIRONMENT
FOR INTERNATIONAL TRADE, VICE MINISTER OF ECONOMIC DEVELOPMENT, O. Chuluunbat, Vice
Minister, Ministry of Economic Development
•Government Involvement and Support to Enhance the Mongolian Competitiveness in Coal Sector,
O. Erdenebulgan, Vice Minister of Mining
•MONGOLIAN COAL INDUSTRY, Overcoming challenges in volatile market conditions, G.Battsengel,
Director, Mongolian Mining Corporation
•Global Coal Markets and Implications for Mongolia , Arshad Sayed, President of Mongolia & India,
Peabody Energy
• Introduction of CTL Plant Project, T. Munkhtur, Baganuur Energy Corporation
• ADUUNCHULUUN POWER AND CTL PROJECT, J.Zoljargal, Project Manager, MAK
• OIL SHALE OPPORTUNITIES IN MONGOLIA, Ts.Gantsog, Executive Director, Genie Oil Shale
Mongolia

20. • China Coal Market Lookout 2014, Fenwei Energy Consulting
• Erdenes Tavan Tolgoi JSC, Y. Batsuuri, CEO
• WIRTGEN SURFACE MINING TECHNOLOGY AND CHALLENGES IN COAL IN MONGOLIA by Wirtgen
Group
• "MINING INFRASTRUCTURE INVESTMENT SUPPORT PROJECT", Project Coordinator, B. Enkhbaatar at
the Coal Mongolia 2014, Feb 20-21.
• Coal Processing by IMC Montan.
The following presentations are from the January 27 BCM monthly meeting:
- "The year 2014 starts with new IPO on the Mongolian Stock Exchange", Richard Kobayashi, CEO,
Standard Investment LLC
- "IMA Consultancy Services for Investors and Account Manager's Role", D. Irmuun, Director of
Division for Promotion and Consultancy Services, Invest Mongolia Agency
Mongolia reports: http://bcmongolia.org/en/mongolia-reports
• Social and economic situation of Mongolia as of March 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)
• Polit Barometer, March 2014, by Sant Maral Foundation
Interview Section: http://bcmongolia.org/en/interviews
• 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‖;
• Jim Dwyer, Executive Director, BCM: ―Minerals Policy‖;
• D. Bayasgalan, Director of Golomt Bank: ―Golomt has no problem‖;
• From the Oxford Business Group, Mongolia Reports 2013 book;
• B. Byambasaikhan, Chairman, BCM: ―Talk is cheap‖;
• President Ts. Elbegdorj: ―Diversifying for growth‖;
• Jim Dwyer, Executive Director, BCM: ―Non-mining sectors budding‖;
• Peter Morrow, Chairman, American University of Mongolia: ―Filling in the blanks‖;
• N. Zoljargal, Governor, Bank of Mongolia: ―Sustainable vision‖;
• Gansukh, Minister of Roads and Transportation: ―Accessing new markets‖;
• J. Od, President, MCS Group: ―Building interest‖.
BCM's English website includes the ―Mongolia Business News‖ section.
• 2014 Article IV staff report for Mongolia by International Monetary Fund;
• BCM comments on draft Amendments to the Minerals Law made to Mr. D. Gankhuyag, the Minister
of Mining, February, 2014;
• BCM Open Letter to Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 6th Anniversary BCM Renewal dinner on November
11, 2013.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.

21. 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.
BCM is closing our old LinkedIn account from May 1, 2014. The new page allows BCM to alert
followers to the latest news and information critical to their businesses. Members‘ businesses will
be promoted. Additionally, BCM is delivering monthly info graphics on the latest data as well as
videos and other media content as they come.
The bulk of the content on the new page will be in Mongolian language to better cater to BCM's
Mongolian-speaking audience and members.
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 5,322 fans on our Facebook fans page, 1,654 connections on LinkedIn
network, and 1,017 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/
ECONOMIC INDICATORS
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]
March 31, 2014 *12.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 11.9% y-o-y, Ulaanbaatar city, March 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]

22. April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
CURRENCY RATES – 17 APRIL 2014
Currency Name Currency Rate
US dollar USD 1,778.40
Euro EUR 2,462.19
Japanese yen JPY 17.40
British pound GBP 2,981.13
Hong Kong dollar HKD 229.34
Chinese Yuan CNY 49.28
Russian Ruble RUB 285.80
South Korean won KRW 1.71
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.