The document summarizes news from the Business Council of Mongolia newsletter dated September 19, 2014. It covers several topics: 1) The tax dispute between Rio Tinto and the Mongolian government over the Oyu Tolgoi copper mine has been resolved, with taxes owed reduced to $30 million from $130 million. 2) Exploration drilling has started at Aspire Mining's Nuurstei coal project, which could lead to a pre-feasibility study. 3) Genie Energy has signed an agreement to explore an additional 25,000 square kilometers in Mongolia for oil shale, bringing its total exploration area to 60,000 square kilometers.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 343 – September 19, 2014
NEWS HIGHLIGHTS:
Business
 Mongolian official says Rio Tinto copper mine tax dispute resolved;
 Rio chairman seeks negotiation of Oyu Tolgoi issues;
 Aspire Mining, Noble Group start Nuurstei drilling;
 Genie Energy signs agreement for additional oil shale exploration in Mongolia;
 Nikken Sekkei to showcase USD 12 bn worth of projects at Cityscape Dubai;
 Auminco launches environmental study in Mongolia;
 MIAT to start direct flights to Singapore;
 MSE requests assistance from EBRD;
 Russian Railways head discourages premier from using Chinese gauge for rails;
 MNU, UC Merced partner for cost-effective solar in Mongolia's harsh climate;
 Erdenet directors consider future for mine as water park and sports complex;
 President declares new era for Mongolia's agriculture;
 Ulaanbaatar mayor to test drive Mitsubishi electric car;
 Apex Mining to buy Razon’s Monte Oro;
 MEC further extends moratorium on repayment of convertible notes;
 MGG sees 22.3% same-store rental growth;
 Mongolia Holdings recruits BCM executive director to advisory board;
 Research group spotlights Rio as takeover candidate for Glencore.
Economy
 Mongol Bank: FX auction, swap agreements, 1-week bills, treasury notes;
 Mongolia to end moratorium on exploration licenses this month;
 Mongolia downsizes spending plans for energy imports amid hikes from Russia;
 Unemployment declines, social welfare payments increase;
 Apartment prices on the rise;
 Repairs continue on Sonsgolon Road;
 Premier visits Uvs to unveil new roads;
 UB replaces congested roundabout with new intersection;
 Health ministry quarantines Uvurkhangai town to prevent plague outbreak;
 Mongolia: the must-see tourist destination no-one is visiting;
 Education market snapshot;
 Mongolia has huge potential in non-traditional energy, says premier;
 Mongolia: the next Asian tiger?;
 China seeks cleaner coal imports;
 Australia’s iron ore producers steel themselves for casualties.
Politics
 Xi calls for economic links with Russia, Mongolia;
 Russia and China back Mongolia's bid to join APEC;
 Elbegdorj denies rumors Mongolia will join SCO;
 China, Mongolia and Russia jointly strengthen TADs control;
 Mongolia establishes diplomatic relations with Gabon;
 Mongolian, DPRK government news agencies partner for information sharing;
 DPRK, Mongolia sign MOU on science cooperation;
 WikiLeaks names Mongolia as No. 1 buyer of surveillance spyware;
 Blogger released on bail;
 Court case reveals secret owner of Lenin Museum;
 Gansukh's attorney accuses IAAC of planting evidence;

2.  Regaining credibility – 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
BCM MEETING NOTICE
BCM’s monthly meeting for members will be on Monday, September 22 at 5PM at the BLUE SKY
HOTEL, 3rd floor, “Crystal” conference room.
The bilingual meeting will feature the following presentations:
- Call to Order/Business Council of Mongolia: B. Byambasaikhan, Chairman, BCM
- BCM Report: Jim Dwyer, Executive Director, BCM
- Kh. Dorjpalam, Officer Treasury, Oyu Tolgoi - "Overview of the Risk Management and Insurance
Conference in October in UB"
- Peter A Markey, Managing Partner, Ernst & Young Mongolia – “Business Risks in the Mining and
Metal sector”
- Ehab Eltayeb, CEO, 3E Solutions LLC - "Mongolian Business Accelerator"
- Murat Karagöz, Ambassador of the Republic of Turkey - "Mongolia Turkey Relations, Challenges
and Opportunities"
New Members:

3. 1. Advanced Facilities Management Mongolia - part of the BIN BUTTI International Holdings Group
based out of the United Arab Emirates, the AFMM’s services are the full facility service (Catering,
Laundry, Environmental and Waste control, Camp management, Commercial facilities management
including cleaning, construction and technical support for universities, factories, shopping malls,
hotels and basically any industry area that needs a support element).
2. Akiolumos – a young local company with diversified businesses in finance, tourism and business
consultancy for potential foreign investors offering investment regulatory, tax/auditing advices,
business setting-up and connecting with local partners.
3. BDO Advisory LLC – a member of BDO International, the world’s fifth largest accountancy and
advisory network.
4. Ms. Khulan Lkhagvasuren, Honorary Consul of the Republic of Estonia in Mongolia
5. Observe Consulting – a management consulting company with main activity is consultancy and
training service of System and Certification Standards by ISO
6. The Cycling World – exclusive distributor in Mongolia of the USA Bicycle brand TREK and
Bontrager accessories
A networking reception will be held for all attendees immediately following the business portion of
the meeting in the “Topaz” room on the 3rd floor, Blue Sky Hotel.
BUSINESS
MONGOLIAN OFFICIAL SAYS RIO TINTO COPPER MINE TAX DISPUTE RESOLVED
A tax dispute that threatened to delay the giant Oyu Tolgoi copper mine being developed in
Mongolia by Rio Tinto PLC has been resolved, a government official said on Monday.
The USD 6.5 billion Oyu Tolgoi project will produce more than 300,000 tons of copper concentrate a
year once construction is fully completed. It is expected to boost Mongolia's economy by a third by
2020. But the development has been embroiled in a series of disputes between its two owners, Rio
Tinto-subsidiary Turquoise Hill Resources and the Mongolian government.
Mongolia's vice-minister of mining, Oyun Erdenebulgan, said the two sides have agreed to cut an
outstanding tax bill on the project to USD 30 million. The authorities had delivered a USD 130
million bill in June. "I understand both parties are now working closely and effectively and nobody
wants to delay because of this tax issue," he said, adding that the project would resume
construction in the first quarter of 2015.
The first open-pit phase of the project went into operation in July 2013, and the mine produced
76,700 tons of copper concentrate by the end of that year. However, the second phase, which
involves the underground expansion of the mine, has been subject to a series of delays. The
Mongolian government expressed concern about financing terms and cost overruns, and also
ordered Turquoise Hill to draw up a new feasibility study. Oyun said all remaining disputes on the
project had been settled, and both sides were waiting for the completion of the new feasibility
study.
"When it has been received, we will appoint a committee to approve it," he said.
Source: Reuters
RIO CHAIRMAN SEEKS NEGOTIATION OF OYU TOLGOI ISSUES
Rio Tinto PLC Chairman Jan du Plessis plans to come to Mongolia later this month to meet with
government officials concerning the USD 6.5 billion Oyu Tolgoi copper mine. Discussion would likely
include the statement Rio received from Mongolia's Tax Authority, which has reportedly reduced
the company's taxes owed from USD 130 million to USD 30 million, and a feasibility study needed to
allow for the launch of construction for a USD 5 billion underground mining complex.
Source: News.mn
ASPIRE MINING, NOBLE GROUP START NUURSTEI DRILLING

4. Aspire Mining Ltd. has commenced exploration drilling at their Nuurstei coal project in northern
Mongolia that could lead to a pre-feasibility study for a mining operation.
The program will consist of geographically reclogging of 2011 drill holes, reverse circulation and
diamond drill holes completed at an average 100 meter depth. These holes are focused mostly in
the southern part of the main tenement and the program has been designed to confirm resource
continuity. Drilling is expected to be completed by the end of October 2014, with laboratory
analysis expected to be received in the December quarter.
The Nuurstei project is currently 60 percent owned by the Ekhgoviin Chuluu Joint Venture (ECJV),
of which Aspire and the Noble Group each hold a 50 percent interest. ECJV has a right to increase
its interest in the Nuurstei Project to 90 percent. Drill holes will build on the 2011 drilling program
conducted by Xanadu Mines.
Source: Proactive Investors
GENIE ENERGY SIGNS AGREEMENT FOR ADDITIONAL OIL SHALE EXPLORATION IN MONGOLIA
Genie Energy Ltd. on 16 September said its Mongolia unit had signed an agreement with the
government that brings its total license area for exploration to 60,000 square kilometers.
Genie Oil Shale Mongolia LLC has signed a prospecting agreement with the Petroleum Authority for
a new exploration block that covers an area of 25,000 square kilometers in central Mongolia that
lies southeast of Ulaanbaatar. The agreement, the first to be signed under the recently passed
Petroleum Law, also provides a framework under which the company can request a commercial
production agreement once a specific suitable resource and location are identified.
“Our analysis of the available geological evidence suggests that this license area may contain world
class deposits of thick and rich oil shale well-suited for our in-situ extraction technology,” said
Yuval Bartov, chief geologist of Genie Oil and Gas.
Source: Genie Energy Ltd.
NIKKEN SEKKEI TO SHOWCASE USD 12 BN WORTH OF PROJECTS AT CITYSCAPE DUBAI
Leading Japanese architect Nikken Sekkei, will showcase projects from Mongolia, amongst others,
at this year's Cityscape Global exhibition, taking place 21 to 23 September 2014 at the Dubai
International Convention & Exhibition Centre (DICEC).
"Nikken Sekkei is one of the great idiosyncratic architecture firms of its time, our ability to
incorporate distinguishing design features and unique cultural references in keeping with the local
environment ensures our creativity stands out from anything the world has ever seen," said
Nakamura Mitsuo, Chairman of Nikken Sekkei.
Ulaanbaatar will be transformed when designs created by Nikken are completed. The Mongol Tower
and WOO City developments, both to be unveiled during the exhibition, will symbolize a modern
day Mongolia and reflect the burgeoning economic prosperity. Located in the downtown area of the
city, the design of the tower has been created to give the impression of rising from the ground and
melting into the sky because of the ratio of glass to concrete on the exterior; which increases
gradually on higher floors. WOO City will mark Mongolia's first world-class resort benefiting the
country's tourism industry and overall economy.
Source: Nikken Sekkei
AUMINCO LAUNCHES ENVIRONMENTAL STUDY IN MONGOLIA
Unlisted takeover target Auminco Mines LLC has launched its environmental baseline studies for the
Berkh Uul coal project, Australia-listed Viking Mines Ltd. reported on Thursday.
The environmental study was a required component of the application process for a mining license.
Viking Ashanti said the results from the study would also provide baseline environmental and social
data for the planned feasibility study over the Berkh Uul project. The baseline environmental study
would be completed within two months.
Auminco was the takeover target of Viking Ashanti, which was offering 61.2 of its own shares, and
20.4 of its options, for every 100 Auminco shares held. Viking Ashanti has so far secured a 97
percent shareholding in the unlisted coal developer.

5. The Berkh Uul project currently contains a resource of about 38.3 million tons, of which 21.4
million tons is classified as indicated and 16.9 million tons as inferred.
Source: Mining Weekly
MIAT TO START DIRECT FLIGHTS TO SINGAPORE
MIAT Mongolian Airlines will launch direct flights to Singapore on 24 September. MIAT currently
operates regular international flights to Beijing, Hong Kong, Erlian, Seoul, Tokyo, and Moscow. It
also performs charter flights to Sanya, Osaka, Pyongyang, Jeju, Singapore, Bangkok, Hanoi and
Dubai.
Source: Montsame
MSE REQUESTS ASSISTANCE FROM EBRD
The head of the Mongolian Stock Exchange (MSE) on 16 September delivered an official request to
the European Bank for Reconstruction and Development (EBRD) for assistance in its capital market.
MSE Acting Chief Executive D. Angar delivered the request on behalf of Finance Minister Chultem
Ulaan to EBRD Mongolia head Matthieu Le Blan. The letter is addressed to the EBRD's president,
Suma Chakrabarti.
Source: Montsame
RUSSIAN RAILWAYS HEAD DISCOURAGES PREMIER FROM USING CHINESE GAUGE FOR RAILS
The head of Russian Railways (RTZ) implored Prime Minister Norov Altankhuyag not to discontinue
its exclusive use of Russian gauge railway, according to a leaked letter addressed to the prime
minister dated 14 June.
“To create railway with narrow gauge is an incorrect decision,” RTZ Chief Executive Officer V.
Yakunin wrote to the prime minister. He acknowledged reports in Mongolian media that favored the
use of the Russian gauge, and that it was in the best interest of Russia and Mongolia's joint venture
rail system that it not use Chinese gauge. RTZ is a 50 percent stakeholder in Ulaanbaatar Railways
(UBTZ).
“...there needs to be emphasis that the decision to build a narrow gauge in Mongolia was a mistake
in principle since Ulaanbaatar Railways JSC represents Russian interests as well as Mongolia in
terms of the railway.”
Source: Udriin Sonin
MNU, UC MERCED PARTNER FOR COST-EFFECTIVE SOLAR IN MONGOLIA'S HARSH CLIMATE
Ulaanbaatar is considered to be the coldest capital and also the worse for air pollution. But
Mongolia is also known as the “Land of the Blue Sky” due to its more than 250 sunny days per year,
setting up solar thermal systems seems to be an ideal measure to combat the high air pollution
levels.
Ordinary solar water heaters would hardly be able withstand the extremely cold winter weather
with daily temperatures of between minus 10 and 40°C. “Mongolia is a most demanding
environment for solar energy, but also with a critical need to replace the burning of coal and
improve air quality.
“If a solar system works in Mongolia, it will work anywhere,” Professor Roland Winston, director of
the Advanced Solar Technologies Institute at the University of California Merced (UC Merced), said.
Winston is cooperating with Mongolian colleagues from the engineering faculty at the Mongolian
National University (MNU) in Ulaanbaatar in designing, installing and testing solar thermal collectors
which can withstand the harsh Mongolian weather conditions.
The country needs cost-effective solar thermal collectors which can produce heat between 200°C
and 250°C, according to MNU’s Solar Project Director, Kevin Trzcinski. By using designs available
from UC Merced, Trzcinski and his team have developed the so-called External Compound Parabolic
Concentrator (XCPC), a non-tracking, high-temperature 2.5 kilowatt solar thermal collector system.
In order to test the system, the first demonstration project came into operation on the roof of an

6. MNU building in February 2014. Trzcinski is convinced that the XCPC system can replace coal
heating, reduce air pollutants and minimize the health risk to Mongolians.
“This is also proving that scientific research can be conducted in Mongolia. Mongolia is a cost-
effective destination for research, perfect for environmentally friendly research,” said Trzcinski
“We want to show that there's so much more potential than mining.”
Source: Solar Thermal World
ERDENET DIRECTORS CONSIDER FUTURE FOR MINE AS WATER PARK AND SPORTS COMPLEX
Erdenet Mining Corp. is considering the value of an artificial lake as it considers plans for what to
do with its copper mine once its resources are depleted, according to its director.
The 36-year old mine will have further use after reserves run dry, said director Ts. Davaatseren.
Once the company begins drawing down the mine's operations, it will have to focus on
rehabilitation and what to do with the machinery before turning the pit into creating an artificial
lake. He suggested the lake could be used as a water park during summers and a sports complex
during winters. A team is already working to assess what is needed for complex to cater to
international tournaments, including for auto rallies
Another options is to convert the mine into a national mining institute and laboratory, said
Davaatseren.
Source: Montsame
PRESIDENT DECLARES NEW ERA FOR MONGOLIA'S AGRICULTURE
Mongolia is embarking on a new era for agriculture production, said President Tsakhia Elbegdorj on
15 September during his nationwide tour of agricultural operations in Selenge Aimag.
“The economic independence of Mongolia must improve, not only through mining but also through
projects in agriculture and the provision for our own needs delivered from domestic production,”
said Elbegdorj.
The president visited Mind Tech LLC's food processing plant in Bayangol Soum planned for the
production of cooking oil and animal fodder. The company plans to triple the plant's processing
capacity from 100,000 tons of seed a day to 300,000 by 2016, company officials told the president,
which would allow the company to meet full domestic demand.
Elbegdorj also visited a vegetable field in Shaamar Soum owned by the individual B. Gansukh. The
county has dedicated 3,600 hectares to the production of vegetables and 21,000 heads of livestock.
The president, however, waved off requests from local farmers for government support on the
distribution and marketing of their crops and technical assistance for greenhouse farming, advising
that farmers learn from the example of herders who have started their own professional licensing
and marketing.
In Zuunburen Soum, Elbegdorj visited the facilities of Arvin Khur LLC, where there is the production
of vegetable oil, fodder and processed honey. Also made there are pillows stuffed with buckwheat
shells and mutton and potatoes specially prepared for KFC restaurants in Mongolia.
“Mongolia is the least-densely populated country in the world, and has two great neighbors. Our
neighbor to the south has the biggest consumer market in the world,” said the president.
Accompanying the president to Bayangol, Shaamar, Zuunburen, and Tsagaanuur Soums was Minister
of Industry and Agriculture Sh.Tuvdendorj, a state secretary of the Ministry Kh. Zoljargal and his
chief of staff P. Tsagaan.
Source: Montsame
ULAANBAATAR MAYOR TO TEST DRIVE MITSUBISHI ELECTRIC CAR
Ulaanbaatar's mayor plans to drive an electric car donated by Mitsubishi this winter to personally
test how well it drives in Ulaanbaatar in temperatures that regularly fall below -30C.
“If the test sees successful results, the Ulaanbaatar City Administration will provide all agencies
with electric cars,” said Mayor Erdene Bat-Uul this week while formally accepting the donated
vehicle. “I believe we will save much taxpayer money. I want to say that I will drive this car
personally.”

7. Bat-Uul's car is the third donated to Ulaanbaatar City Administration after two were donated last
June for trial use in Ulaanbaatar. The cost for charging the electric cars during the trial was MNT
60,000 a month.
Source: News.mn
APEX MINING TO BUY RAZON’S MONTE ORO
Apex Mining Co. on Friday said it is buying all of Monte Oro Resources and Energy Inc., a company
controlled by billionaire Enrique Razon.
The company said in its disclosure to the Philippine Stock Exchange that it is buying in cash Monte
Oro’s shares consisting of 5.12-billion shares. Monte Oro’s assets include 100-percent shareholdings
in Mongolian firm Minas de Oro Mongol LLC., which owns 51 percent of the joint venture company
Erdenejas LLC. The joint venture holds a mining license in Khar At Uul in Mongolia; 90 percent
shareholdings in Monte Oro Mining Company Ltd. Erdenejas is also engaged in mining and
exploration operations in Sierra Leone and Myanmar. Selling shareholders include Prime Metroline
Holdings Inc., Lakeland Village Holdings Inc., Devoncourt Estates Inc., A. Brown Co. Inc. and Wealth
Securities Inc.
“The acquisition will expand the business of the corporation [Apex], allow it to have another
mineral processing plant and expand its operations in Jose Panganiban, in Camarines Norte, and
allow it to have a healthier balance sheet with an increase in its asset base and equity,” Apex said.
Source: Business Mirror
MEC FURTHER EXTENDS MORATORIUM ON REPAYMENT OF CONVERTIBLE NOTES
Mongolia Energy Corp. (MEC) Ltd. has extended repayment on its convertible notes by seven days to
make time to comply with listing regulations.
“Although the principal terms of the proposed subscription for new convertible notes have been
agreed upon by all these parties, technical issue for the issue on the public float requirement under
the Listing Rules were required to be solved by the Company upon conversion of the proposed new
convertible notes,” reads the Source. “In this connection, all of these existing convertible note
holders have agreed to grant the Company a further moratorium extension to 19 September 2014.”
MEC first extended repayment on its SF convertible note, 3.5 percent GI convertible note, and 3
percent CTF convertible note to 12 September and halted the trade of its shares on 4 September.
Source: Mongolia Energy Corp. Ltd.
MGG SEES 22.3% SAME-STORE RENTAL GROWTH
Mongolia Growth Group Ltd. reported growth in its same-store rentals with a slight uptick in growth
in its July 2014 shareholder letter.
MGG’s core commercial property portfolio experienced a same-store rental increase of 22.3
percent relative to July 2013 on properties owned 12 months or longer. Total billed revenue for
July 2014 was MNT 222.7 million, as compared to MNT 219.3 million in July of 2013 or a 1.6 percent
increase. The occupancy rate for the core portfolio in July of 2014 was 94.7 percent including an
occupancy rate of 94 percent for core retail properties and an occupancy rate of 95.2 percent for
core office properties.
Source: Mongolia Growth Group Ltd.
MONGOLIA HOLDINGS RECRUITS BCM EXECUTIVE DIRECTOR TO ADVISORY BOARD
Mongolia Holdings, Inc. on 15 September announced the appointment of long-time Mongolia
resident and investment banking expert, Jim Dwyer, to its advisory board.
Dwyer was a New York-based investment banker for 30 years, completing over 100 transactions. He
founded and managed the M&A departments for Shearson Loeb Rhoades and UBS-North America,
where he served as head of cross-border M&A. Before that he served as deputy head of M&A at
Kidder Peabody and was a senior vice president of investment banking at Donaldson, Lufkin &
Jenrette. Starting in 2001, Dwyer represented the government of Mongolia as lead investment
banker for the privatization of Trade and Development Bank of Mongolia LLC and then for the

8. privatization of Khan Bank LLC, the largest retail bank in Mongolia. From 2003 to 2007, Dwyer was
chief operating officer of the Mongolian branch of the North America-Mongolia Business Council.
Subsequently, he has served as executive director of the Business Council of Mongolia (BCM) since
its inception in 2007.
"We appreciate Jim Dwyer's generosity with his time, expertise and contacts, throughout the
development of our Hertz Equipment Rental business opportunity for Mongolia,” said former U.S.
Ambassador E. Michael Ussery, the company's chairman. “We applaud his thirteen-year commitment
to advancing the cohesiveness of the business community there and value his new, more formal
relationship with Mongolia Holdings, Inc."
Source: Mongolia Holdings, Inc.
RESEARCH GROUP SPOTLIGHTS RIO AS TAKEOVER CANDIDATE FOR GLENCORE
Anglo American PLC has been widely speculated to be Glencore’s next target. But the time for
Glencore to bid for Anglo may have passed, Bernstein Research said, as investors are recognizing
the progress made by chief executive Mark Cutifani in turning round the business operationally.
A better option may be to buy Rio Tinto PLC, which would turn Glencore into “the biggest and most
diversified mining company on the planet,” the broker told clients. “The combination would deliver
an entity that would marry the world’s most important set of mining assets to the most
sophisticated commodities trading business.”
Iron ore’s 37 percent drop this year threatens to undermine Rio’s strategy of prioritizing volume
growth over price, Bernstein said. Without a recovery by the end of the year, Rio will be shown to
have failed and a new approach based on capital discipline will be needed, it argued, adding: “If
ever there was a market crying out for leadership it is iron ore. Rather than worrying about the
mainly illusory threat of new entrants, market incumbents should be instead looking at how to
maximize their own value.”
Rio shareholders would be swapping an ex-growth commodity mix for Glencore’s strong growth,
Bernstein said. They could also be offered cash, given Glencore might fund the takeover premium
using Rio’s own balance sheet. Raising debt secured against Rio’s world-class Pilbara mines in
Western Australia would release about USD 50 billion, it argued.
Source: Financial Times
SPONSORS
Oxford Business Group Mongolian Economy Magazine
ECONOMY
MONGOL BANK: FX AUCTION, SWAP AGREEMENTS, 1-WEEK BILLS, TREASURY NOTES;
The Bank of Mongolia on 18 September accepted bid offers of CNY 18 million for an average
exchange rate of MNT 299.08. The central bank also received an equivalent of USD 3.5 million in
swap agreement transactions from commercial banks and USD 60 million from swap agreement ask
offers.
The central bank reported on 17 September the issue of one-week bills worth MNT 157 billion at a
weighted interest of 12 percent a year.

9. The central bank reported on 17 September MNT 46.05 billion in bids for the auction for 12-week
treasury notes with a face value of MNT 40 billion. The bills were sold at a discounted price with an
average yield of 15.576 percent.
Source: Bank of Mongolia
MONGOLIA TO END MORATORIUM ON EXPLORATION LICENSES THIS MONTH
Mongolia will begin issuing mining license for the first time in four years, said Minister of Mining
Davaajav Gankhuyag and the chairman of Authority for Minerals D. Uuriintuya in a 15 September
press conference.
Mongolia hopes to better manage licensed land by including geographical coordinates in registration
data and the introduction of an online application to update applicants on the status of their
applications. Mongolia is set to license up to 31.09 mn hectares of land, or 19.88 percent of
Mongolian territory, for exploration. The government is putting up 10.15 mn hectares for tender
auction while the remaining 20.94 mn will come from applications.
Source: Montsame
MONGOLIA DOWNSIZES SPENDING PLANS FOR ENERGY IMPORTS AMID HIKES FROM RUSSIA
Mongolia is planning to reduce its imports of energy from Russia due to price hikes from its neighbor
to the north.
“Mongolia was planning to import 300 megawatts of electricity this year from Russia,” said Ts.
Erdenebaatar, head of the policy implementation department at the Ministry of Energy. “However
Russia increased its price of electric power again, so we are forced to reduce the volume of power
electricity because we haven't increased the cost for the electric power.”
Mongolia's energy supply has fallen from a 30 percent surplus to barely meeting demand at all, he
said. Mongolia currently pays MNT 140 per kilowatt of energy from Russia while paying MNT 180 to
MNT 300 from China. That compares with up to MNT 80 per kilowatt generated in Mongolia.
Source: Undesnii Shuudan
UNEMPLOYMENT DECLINES, SOCIAL WELFARE PAYMENTS INCREASE
Mongolia saw unemployment fall while social welfare spending grew in the first eight months of the
year compared with the previous year.
The number of unemployed contracted 11.7 percent for the same periods to 32,900. Meanwhile
spending from the Social Insurance Fund grew 21.2 percent in August compared with the year
before to MNT 841.9 billion, while revenue increased just 4.4 percent to MNT 854.9 billion. The
Social Welfare Fund paid out some MNT 93.2 billion in pensions and welfare, with 8 percent more
recipients during the same period. The Human Development Fund paid out cash benefits of MNT
157.8 billion to 978,900 thousand children aged below 18 years old.
Source: Montsame, 2
APARTMENT PRICES ON THE RISE
Apartment prices are on the rise still, growing 1.45 percent from July to August and 23 percent in
the first half of the year, according to an August reported from the Bank of Mongolia.
Apartment prices have grown steadily since October last year because construction companies
cannot build new homes fast enough, according to a researcher from the Economic Research
Institute, N. Gansuld. Currently, only about 18 percent of the Mongolian population lives in
apartments, according to data from construction companies, which puts potential demand well
beyond the supply of currently available apartment housing. Between 700 to 1,000 new and old
apartments are sold in Ulaanbaatar each year.
Usually housing prices climb and fall along with the economy, said Gansuld, so several months of
price growth for apartment would suggest economic recovery. However, it may be more likely that
other factors are at work, such as higher costs for imported construction materials brought on by
the depreciation of the tugrug. Last year's state-backed 8 percent mortgage program also spurred
demand as credit became more available to middle-income households.

10. The central bank apartment prices index is compiled in partnership with Tenkhleg Zuuch, Aktiv
Zuuch, and Mongolian Properties.
Source: Undesnii Shuudan
REPAIRS CONTINUE ON SONSGOLON ROAD
The companies Arts Suvarga and Badrakh Oil LLC are renovating 5.5 kilometers of the Sonsgolon
Road, located in western Ulaanbaatar.
The road project, which is located at the Monos intersection that leads to the Buyant Ukhaa sport
complex, is part of the Development Bank-funded Streets program to build and repair roads
throughout the country. The Sonsgolon road is now 16 meters wide and 26 centimeters thick.
Construction included repairs to a 280-meter bridge built by Russia in 1971 and installation of a
bicycle and pedestrian path.
Workers are using brands of machinery such as Germany's WIRTGEN SP500 and the U.S. brand
GOMACO. "We can give a 60-year guarantee for the concrete road because we are using good
technology," said Arts Suvarga Field Engineer B. Boldkhuyag.
The cost for construction was MNT 16 billion while development was MNT 7 billion.
Source: Udriin Sonin
PREMIER VISITS UVS TO UNVEIL NEW ROADS
Prime Minister Norov Altankhuyag during an official visit to the Uvs Aimag attended a ribbon-cutting
that is expected to boost tourism.
Uvs commissioned a 190 kilometer paved road that runs between the provincial capital, Ulaangom
Soum, to Khyargas Lake. Construction began in 2008 for an initial cost of MNT 7.5 billion, but was
never completed. The project relaunched in 2012 with MNT 87 billion in financing from government
using proceeds from the 2012 Chinggis bond.
The premier also inspected the progress made on a new road under construction in the capital and
a government housing program to create 1,000 new homes. This year will see the completion of 105
apartments and a 9.5-kilometer paved road running through the provincial capital. Work has also
begun on ancillary work such as the construction of drainage lines.
Source: Montsame
UB REPLACES CONGESTED ROUNDABOUT WITH NEW INTERSECTION
A notoriously traffic-congested roundabout at the Akhui Uilchiglee intersection in the 3rd
Microdistrict was recommissioned as a four-way intersection on 11 September.
Construction costs for the new intersection, which bus and trolleybus drivers found particularly
problematic to navigate while a roundabout, was MNT 4.5 billion. The street received an additional
28,318 square meters of paved roads and 7,565 square meters of sidewalk along with 5,584 square
meters of greenery planted. “The previous circle was congested all the time and saw many traffic
accidents. I am sure that the intersection’s congestion will decline remarkably, especially in the
morning and evening, when business hours start and end,” said a driver while waiting for a light to
change at the new intersection.
Work included replacing two underground heating pipes, installing streetlights, applying protective
layers for 220 meters of water pipeline, and building a 1,200-meter water drainage system and
overhead trolleybus wires. The intersection was only partially closed to traffic during construction,
as work took place mostly at night to avoid congestion.
“Now, more than 500 cars pass through the intersection per hour, compared with 200 per hour
before the roundabout received its upgrade,” said Colonel B. Batbold, chief of the Bayangol District
Traffic Police Division.
The project to build the intersection is a part of the Streets program funded by the Development
Bank of Mongolia. Also planned for the program are a new line of street kiosks for the sale of small
goods to replace existing ones found throughout Ulaanbaatar. The first one opened on 11
September at Love Garden located at the Western Central Intersection. The new kiosks includes a

11. bio-toilet for employees, electric heating and bears a modern design to match the new image
planned for the city.
What is left for the intersection project is for workers to relocate a memorial that was placed at
the center of the traffic circle for the late L. Enebish, a prominent state figure. The new
intersection was built with the consent of Enebish's grandson, E. Munkh-Ochir.
Source: UB Post
HEALTH MINISTRY QUARANTINES UVURKHANGAI TOWN TO PREVENT PLAGUE OUTBREAK
The Ministry of Health on 16 September lifted the quarantine on Sant Soum, Uvurkhangai Aimag
that was set because of fears of an outbreak of bubonic plague.
Uvurkhangai authorities spent MNT 56.7 million on the quarantine and hospitalized 62 people who
had direct contact with the boy with the first reported case. A 15-year-old boy was diagnosed with
a respiratory infection caused by the plague, according to a laboratory exam. The 15-year-old
complained of a fever the day after his parents served marmot meat for dinner on 3 September..
No further symptoms of the disease have been detected since. The quarantine was lifted on 16
September.
Source: Zuunii Medee
MONGOLIA: THE MUST-SEE TOURIST DESTINATION NO-ONE IS VISITING
Known to many as the land of the Blue Sky and the birthplace of Genghis Khan, Mongolia, the
world's least densely populated country, has been named a must-visit location by publications such
as The New York Times, The Guardian, and National Geographic. But despite the exotic appeal of
the Gobi desert and vast steppe, tourism still remains a blip on Mongolia’s economic charts.
Tsedevdamba Oyungerel, Mongolia's minister of tourism, sport and culture, believes that tourism is
down from past years: “So, according to this year's observation, July was quite a successful month.
But only July. June wasn't successful and August was not good either.”
The lack of attention tourism receives from the government is unfortunate given that the industry
can have such wide economic impact compared with mining— the main driver of Mongolia's
economic growth—which tends to benefit only a small portion of the population. Too much reliance
on resources typically results in appreciations of the local currency and deteriorating
competitiveness in other sectors—a phenomenon known as “Dutch” disease. Sustainable tourism, on
the other hand, provides jobs in local communities and encourages more spending there. It also
provides an economic incentive to help preserve cherished vanishing cultures, such as Mongolia's
nomadic traditions.
Unfortunately, Mongolian tourist services leave many travelers frustrated. A lack of roads makes
travel laborious and sometimes perilous at night when there is little-to-no visibility. Although the
government plans to build paved roads between the capital and every province next year, there
still will not always be good routes between provinces. Oyungerel thinks tourist companies must
find ways to boost marketing and promotion. That is why the Tourism Ministry has spent most of
this year's budget on its partnership with the ITB Berlin trade show to help build up a network with
travel companies around the world.
Minister Oyungerel is now hoping to legalize gambling to create new attractions for tourists. She
expects Parliament to vote on a law that would allow for a horse racing track. She is also preparing
a second bill that would allow for a casino.
“The legalization of gambling, if done in a responsible way, would be a major positive for
Mongolia's economic growth and create an industry that is larger than the current mining based
economy,” said Harris Kupperman, executive chairman of the TSX Venture-listed Mongolia Growth
Group. “With over one billion potential customers in China alone, the legalization of gambling
would allow Mongolia's tourist sector to mirror Macao's growth over the past decade.”
Source: BNE
EDUCATION MARKET SNAPSHOT

12. Mongolia is increasingly on the radar for international recruiters as an emerging market in the
region, fueled both by strong economic growth and by the aspirations of its people.
The 2013/14 Global Competitiveness Index offers a set of figures concerning Mongolian higher
education. Ranked alongside 148 other countries, Mongolia scores: 43rd in gross tertiary
enrollment; 68th in quality of math and science education; 73rd in extent of staff training; 83rd in
Internet access in schools; 136th in quality of management of schools; and 137th in overall quality
of the education system. Students entering the Mongolian tertiary sector have a choice of 178
colleges, universities, and teacher training colleges, of which 42 are public.
While university enrollments are high, the country’s higher education graduates are not sufficiently
competitive in international markets. The number of graduates surpasses the available employment
opportunities, and because demand for skills in the mining-dominated economy is not matched by
supply, graduates of Mongolian universities face difficulties finding employment. A World Bank
study from 2010 showed that only one-third of university graduates found jobs, compared with two-
thirds of technical and vocational graduates.
A 2011 UNESCO analysis seems to confirm the World Bank’s conclusions, suggesting that Mongolian
curriculum is not well aligned with modern education standards. In addition, concerns abound
regarding whether degrees bestowed by Mongolian higher education institutions meet global
standards. The major subject areas in demand within Mongolia, as estimated by the Economic
Research Institute (ERI) and the National University of Mongolia, are: Business administration
(22.7%); Marketing management (15.6%); Accounting (12.1%); Finance and economics (11.9%); and
Computer science (7.2%). In other words, the vast majority of Mongolian higher education students
are interested in studying business.
With 21% of the population aged 15 to 24 years, almost universal literacy, high enrollment in
tertiary education, and growing access to communication technology, Mongolia’s international
education market appears poised for growth in the years ahead. But government policy and
national economics will have to continue to combine in a positive way for that growth to be
sustained.
Read the full report here.
Source: ICEF Monitor
MONGOLIA HAS HUGE POTENTIAL IN NON-TRADITIONAL ENERGY, SAYS PREMIER
Mongolian Prime Minister Norov Altankhuyag has said that his country owns huge potential in non-
traditional energy resources, such as oil shale and methane.
"Mongolia has huge potential in nontraditional oil. Recently, a new reserve of coal bed methane gas
was discovered... and the chemical compound of the methane is the same as Russian natural gas,"
Altankhuyag told an international investment conference on Wednesday.
Altankhuyag said Mongolia has a favorable legal environment for the energy sector and the
government supports contractors in research, extraction and processing phases through exemption
of value-added tax and customs tax.
Source: Shanghai Daily
MONGOLIA: THE NEXT ASIAN TIGER?
A new Free Trade Agreement with Japan is a good sign. But more action will be needed to jump-
start Mongolia's economy.
The news of a foreign trade agreement (FTA) with Japan—a significant source of regional (foreign
direct investment) FDI—is a good sign for kick-starting Mongolia’s drive to improve its investment
appeal. But FTAs won’t be the only solution here. The government continues to try to repair
Mongolia’s international image after it rounded circles on its mining investment regulations over
the past couple years. The new investment law has been more transparent and less restrictive than
previous legislation which curtailed large investments in key projects, such as the multibillion-
dollar Oyu Tolgoi copper mine.
Mongolia must address its FDI gap with a full-court press on international investors and a more
transparent environment to court multinational companies. Ulaanbaatar also needs to recognize

13. the limits of its “third neighbor” policy—which focuses on diversifying Mongolia’s strategic
partnerships beyond Russia and China. While the policy has been, in general, a success story,
Mongolia must work harder towards also pushing for stronger economic and investment ties with
Beijing and Moscow. Mongolia’s recent history as a landlocked vassal to these superpowers has
understandably cautioned Ulaanbaatar’s appetite for stronger ties. But despite historical
resentment, most acutely focused at China, Mongolia must remain pragmatic in order to maintain
its economic success of the past decade.
Ties with Russia also remain vital to Mongolia’s prosperity and Elbegdorj has looked to enhance the
relationship with Moscow, despite strong international pressure against Russia due to its actions in
the Ukraine. At the recent Shanghai Cooperation Organization (SCO) summit in Tajikistan, Elbegdorj
took part in a trilateral summit meeting with Xi and Russian president Vladimir Putin. During the
meeting, Xi proposed the three countries create a trilateral “economic corridor” that would serve
as a modern-day Silk Road. But while the prospects of large FDI numbers from Beijing and Moscow
are appealing, Mongolia will have to tap-dance around the geopolitical pressure from both. This
maneuvering is becoming increasingly more difficult as both Moscow and Beijing seem adverse to
U.S. and Japanese efforts to strengthen partnerships in the region.
Source: NationalInterests.org
CHINA SEEKS CLEANER COAL IMPORTS
China will ban the import and local sale of coal with high ash and sulfur content starting from 2015
in a bid to tackle air pollution, with tough requirements in major coastal cities set to hit Australian
miners.
The National Development and Reform Commission (NDRC) policy comes as prices on the
GlobalCOAL Newcastle index slump to a five-year low amid a supply glut and slowing demand from
China, the world's top importer. Under the new regulations, due to come into effect in January, the
government has set different levels of requirements on coal grades for mining, local sales and
imports. The most stringent requirements are for cities in the southern Pearl River Delta, the
eastern Yangtze River Delta and three northern cities including Beijing, Tianjin and Hebei. These
will be banned from burning coal that has more than 16 percent ash and 1 percent sulfur, according
to a statement on the NDRC website. Since the coastal regions such as Guangdong and Zhejiang
province are some of China's top coal importers, the regulations are set to block a sizeable amount
of imports.
“Coal that does not meet these requirements must not be imported, sold, nor transported for long
distances," the NDRC said, adding that the customs authority will check the quality of coal imports.
China will also implement a blanket ban on domestic mining, sale, transportation and imports of
coal with ash and sulfur content exceeding 40 percent and 3 percent respectively. For coal that will
be transported more than 600 kilometers (373 miles) from the production site or receiving ports,
the minimum energy requirement was set at 3,940 kilocalories per kilogram, with a maximum ash
and sulfur content of 20 percent and 1 percent respectively. When the regulation is implemented,
Australian and South African coal with a heating value of 5,500 kilocalories per kilogram will be
worst hit, since their ash content hovers around 23 to 25 percent and they contain sulfur of 0.8 to
1.0 percent, traders have said. Top steam coal exporter Indonesia, which largely ships fuel with low
heating value, sulfur and ash content, could be the least affected.
Source: Reuters
AUSTRALIA’S IRON ORE PRODUCERS STEEL THEMSELVES FOR CASUALTIES
Australia’s iron ore industry, a competitor with Mongolia for the Chinese market, is bracing itself
for further casualties following the collapse of two junior miners because of a slump in prices that
has put pressure on high-cost producers and raised question marks over some new projects backed
by Chinese investors.
Iron ore prices fell to five-year lows of AUD 82.20 this week—a decline of almost 40 percent this
year—which is alarming investors, who have invested hundreds of billions of dollars in new mines to
capitalize on a decade of historically high prices. Australian production of the reddish brown ore—

14. the main ingredient in steel—increased 40 percent between 2010 and the end of 2013 and the
country now supplies half of global exports. But just as supply is growing to record levels, concerns
about the health of China’s property market are slowing demand.
The sharp drop in iron ore prices is discouraging many Chinese steel mills from buying, and traders
have also curtailed purchases thanks to difficulty obtaining credit and the fear that in a falling
market they would have to sell at a loss. That is contributing to the tumble in prices to levels last
seen in 2009. High-cost iron ore producers now face a fight for survival, with Goldman Sachs this
week forecasting an “end to the iron ore age”.
There is no sign of a let-up. Rio Tinto PLC and BHP Billiton Ltd. plan to bolster their iron ore
production 12 percent and 11 percent respectively in 2015, as they seek to grab market share and
force high-cost producers in China and elsewhere to withdraw from the market. The global supply
glut is forecast to grow in the years ahead, with Vale also planning to expand annual production
from 310 million tons to 450 million tons by 2018. The industry shakeout is prompting junior miners
to slash costs, divest operations and consolidate. In China, some higher-cost iron ore producers are
leaving the market, although not as rapidly as Australia’s big miners had expected, which is
compounding the oversupply problem.
Source: Financial Times
POLITICS
XI CALLS FOR ECONOMIC LINKS WITH RUSSIA, MONGOLIA
The top leaders of China, Russia and Mongolia launched a three-party summit, during which Chinese
President Xi Jinping proposed a three-way economic corridor featuring cross-border infrastructure
and trade development.
Xi called for an economic corridor linking Beijing’s proposed Silk Road economic belt, Russia’s
Trans-Eurasia railway and Mongolia’s passage to grassland initiative. “They should also beef up
interconnectivity by railway and road, facilitate customs clearance and study the construction of
cross-border power grids,” Xi said at the meeting on the sidelines of the Shanghai Cooperation
Organization summit in Dushanbe, Tajikistan. President Tsakhia Elbegdorj said the country hopes to
boost infrastructure and cross-border transportation through cooperation with the other two.
Observers said the summit highlighted the countries’ eagerness for close ties to fuel their
economies and firm up their strength in the region. They have seen challenges in economic growth
and world affairs, which makes working together the best choice, observers said.
Cooperation will mean more security along China’s northern border and a broader market, which
will be a key for China’s Silk Road economic belt plan, said analysts. It will be difficult for Mongolia
to revive its sluggish economy and improve its international status if it continues sticking to its
third neighbor policy, said Chen Yurong, a senior researcher at the China Institute of International
Studies. Mongolia has long upheld a third neighbor policy to strengthen cooperation with Western
countries and international bodies. The mineral-rich country is experiencing its weakest growth in
four years. Foreign investment plummeted 70 percent in the first half, Bloomberg reported.
Source: The Star
RUSSIA AND CHINA BACK MONGOLIA'S BID TO JOIN APEC
The first meeting between Mongolia, Russia and China's current leaders was held in Dushanbe,
Tajikistan, on 11 September, where they supported Mongolia's bid to join the Asian-Pacific
Economic Cooperation (APEC) union.
The leaders agreed that during the last six months foreign relations between the three countries
had turned to a new, more specific direction. Elbegdorj proposed that Mongolia host the
Ulaanbaatar Dialogue every three years to give the three nations an opportunity to openly discuss
issues such as transit and regional infrastructure, particularly for the rail network running through
their countries. He suggested that meetings between their foreign affairs ministers be held every
two years in preparation for the event.

15. The president also asked for support from his two neighbors for Mongolia to join APEC at a summit
in Beijing scheduled for November, to which the two heads of state agreed. Elbegdorj first
proposed holding the three-party meeting between Mongolia, Russia and China, last May.
Source: News.mn
ELBEGDORJ DENIES RUMORS MONGOLIA WILL JOIN SCO
President Tsakhia Elbegdorj has put to bed rumors that Mongolia may join the Shanghai Cooperation
Organization, saying that the landlocked nation would maintain its status as an observer nation.
Elbegdorj denied rumors that Mongolia would raise its participation in the group during an interview
with media during an SCO summit held last week. SCO's members are Russia, China, Kazakhstan,
Kyrgyzstan, Tajikistan and Uzbekistan. Its top priorities are issues concerning regional security,
building up joint capabilities to combat terrorism, extremism, and drug trafficking.
The next Summit will be held in 2015 in Ufa, the capital city of Russia's Republic of Bashkortostan.
Source: Montsame
CHINA, MONGOLIA AND RUSSIA JOINTLY STRENGTHEN TADS CONTROL
As Transboundary Animal Diseases (TADs) increasingly threaten global public and animal health,
coordination between countries and regions has become essential. China, Mongolia and the Russian
Federation have been cooperating to control TADs since FAO implemented the project “Cross
Border Trade and TADs Risk Reduction with a special focus on foot-and-mouth disease (FMD)” in
2011.
The aim of the project is to strengthen relationships and trust among the three countries by sharing
information on cross-border animal movement, TADs and emerging infectious diseases via annual
international workshops. From 2011 to 2014 meetings were held each year in one of the nations. At
this year's meeting, held last August in Erguna, Inner Mongolia, delegates from the three countries
discussed the developments of avian influenza (AI), FMD, brucellosis, African Swine fever (ASF) and
other TADs and zoonotic diseases.
Delegates drafted recommendations for the future after visiting the Erguna wetlands and to an area
where China, Mongolia and Russia intersect to meet with local veterinary staff and learn about the
processes at border posts and in livestock production sites. Suggestions included the need to
formalize arrangements and the management structure amongst collaborating partners.
Participants also proposed a more direct exchange of information in project areas as well as joint
training, study tours and technical exchange among laboratory and field staff. The potential for
bilateral regional cooperation between the Russian Federation and China would also facilitate joint
surveillance in border areas and mutual recognition of specified disease-free zones.
Pending funding, the three countries agreed to collaborate on two joint project proposals to further
develop surveillance in the area over the next two years. The Food and Agriculture Organization
(FAO) stresses the need to continue these meetings which encourage communication and
collaboration in the region.
Source: Food and Agriculture Organization
MONGOLIA ESTABLISHES DIPLOMATIC RELATIONS WITH GABON
Gabon officially opened diplomatic relations with Mongolia on 15 September at the U.N.
Headquarters in New York City.
O. Och, Mongolia's permanent representative to the United Nations, and his Gabonese counterpart,
Marianne Odette Bibalou, signed the agreement, where they both promised to uphold the U.N.
Charter and international law. Establishing diplomatic ties furthers Mongolia's goal to do so with
every U.N. member nation.
Source: Montsame
MONGOLIAN, DPRK GOVERNMENT NEWS AGENCIES PARTNER FOR INFORMATION SHARING
The Montsame news agency has signed a partnership agreement to share information with North
Korea's Korean Central News Agency.

16. Presidential Chief of Staff P. Tsagaan on 12 September received a delegation from the Korean
Central News Agency of North Korea, led by Director General Kim Chang Gwang, upon invitation of
the Montsame news agency.
The 2013 visit to North Korea by President Tsakhia Elbegdorj played an important role in bringing
mutual relations to the next stage, said Kim. He added that he was happy with relations between
their two nations. Kim said collaboration between mass media plays an important role in enhancing
mutual relations.
Also during their visit, the delegation visited the Citizen Hall at the Government Palace and learned
what it has done since being introduced in 2009. Those duties include collecting feedback from
citizens concerning policy and decisions made by the president, and fostering consensus among
political factions.
Source: InfoMongolia.com
DPRK, MONGOLIA SIGN MOU ON SCIENCE COOPERATION
The Democratic People's Republic of Korea (DPRK) and Mongolia on Thursday signed a memorandum
of understanding here on cooperation in science and technology, the official KCNA news agency
reported.
The memorandum was signed between the DPRK's State Science and Technology Commission and
Mongolia's Ministry of Education and Science, according to the KCNA. Also, a delegation led by Kang
Sok Ju, a member of the Political Bureau of the Central Committee of the ruling Workers' Party,
left Saturday to visit Mongolia and four European countries—Germany, Belgium, Switzerland and
Italy, the KCNA said.
Source: Shanghai Daily
WIKILEAKS NAMES MONGOLIA AS NO. 1 BUYER OF SURVEILLANCE SPYWARE
Looking to highlight what it says is ongoing government surveillance globally, WikiLeaks has
released previously unseen copies of weaponized German surveillance malware. The group claims
that the FinFisher malware is being used by intelligence agencies around the world, including
Mongolia, to spy on journalists, political dissidents and others—and that new variants are making
their way to market.
The largest customer to date, according to the WikiLeaks report, is Mongolia, “which has been
recently selected as new Chair of the Freedom Online Coalition.” WikiLeaks has been posting on the
issue of FinFisher (formerly part of the UK-based Gamma Group International until late 2013) for
several years. It is made by a German company that produces and sells computer intrusion systems,
software exploits and remote monitoring systems that are capable of intercepting communications
and data from OS X, Windows, and Linux computers, as well as Android, iOS, BlackBerry, Symbian
and Windows Mobile devices. It’s widely implicated in the kind of state-based spying that WikiLeaks
is claiming.
About a year ago, Citizen Lab and the Canada Center for Global Security Studies published a series
of reports on FinFisher, including a description of a Malaysian incident: “We discovered a booby-
trapped document that contained a candidate list for the 5 May 2013 Malaysian General Elections.”
It then added, “The booby-trapped document embeds a copy of FinSpy that masquerades as
legitimate Mozilla Firefox software...” And not for the first time. “Samples from the FinSpy
campaign targeting Bahraini activists last year used an assembly manifest that impersonated
Mozilla’s Firefox browser.” That impersonation actually prompted Mozilla to send a cease and
desist letter to Gamma for the unauthorized use of its browser name and characteristics.
But, despite the publicity, the spy kit is only gathering steam, WikiLeaks said—prompting the move
to make it available as a free download to, well, everyone. WikiLeaks also published previously
unreleased copies of the FinFisher, FinSpy PC spyware for Windows that is designed to be covertly
installed on a Windows computer and to silently intercept files and communications. WikiLeaks said
that it conservatively estimates FinFisher's revenue from sales to governments amount to around
€50 million (USD 82 million).
Source: Info Security Magazine

17. BLOGGER RELEASED ON BAIL
Aviation engineer and blogger Tsedevdamba Bat was released on bail on 9 September due to an
appeals court decision after being sentenced to 100 days in a penitentiary on defamation charges
against Transport Minister Amarjargal Gansukh on 19 August.
“His lawyer just gave me the good news. He said that the case will be reinvestigated and that [Bat]
has been released on bail,” said Bat's sister, Culture and Sports Minister Tsedevdamba Oyungerel.
Bat, after his release, on Twitter criticized the decision made by the officials who sent him to jail
because they could not tolerate criticism, comparing Mongolia's behavior to that of North Korea.
Bat also thanked the preliminary court for enabling a reversing of its decision which he said was a
threat to democracy. “Thank you preliminary court. Through your mistake, Mongolians were able to
see and evaluate the threat to democracy,” he tweeted.
Oyungerel has been outspoken about her opposition to her brother's conviction. She has told media
that imprisonment for defamation and libel are a serious threat to democracy and freedom of
expression. “In 2011, the U.N.’s human rights commission advised Mongolia to retract defamation
and libel cases from Mongolia’s Criminal Code. We are firmly against the case being tried in
criminal court,” Kh. Naranjargal, head of Globe International in Mongolia, said.
Source: UB Post
COURT CASE REVEALS SECRET OWNER OF LENIN MUSEUM
Court information has revealed that the Mongolian People's Party (MPP) had secretly put up as
collateral the Lenin Museum that it was locked into a legal battle over with the government in 2013
and 2014.
Although the Mongolian People Party have historically held ownership of the Lenin Museum, they
had hidden the fact that they had put the building up as collateral before the 2012 election for a
USD 1 million loan from G. Altan, the owner of Altjin Group.
Last year the MPP fought a court battle with the government for ownership rights of the building
because the government wanted to use the museum as a venue for its new dinosaur museum. Altan
allegedly collaborated with the party in their legal suit.
Source: Zuunii Medee
GANSUKH’S ATTORNEY ACCUSES IAAC OF PLANTING EVIDENCE
The lawyer of incarcerated former advisor to the prime minister, L. Gansukh, has presented a new
legal defense that accuses the Independent Agency Against Corruption (IAAC) of forcing an auditor
to falsify documents.
Gansukh's attorney, Ts. Baasandorj, claimed that an auditor from the National Audit Office
identified as “Ichinkhorloo” was threatened by IAAC officials to submit a false report that the
agency used to launch their investigation into Prime Minister Norov Altankhuyag's advisor. The
auditor said she was told to list the price for coal from Baganuur at MNT 39,000 a ton instead of
MNT 27,500.
Ichinkhorloo was also told to follow the investigators' instructions so sum totals would tally to an
amount desired by investigators to incriminate Gansukh, said Baasandorj. According to the contract
signed for the coal program, coal was to be weighed after being packed into sacks. Baasandorj said
Ichinkhorloo was told by an IAAC accountant to write a false report that showed that weight had
been calculated after being loaded on trucks instead. When calculated, the difference was
between MNT 2 billion to MNT 3 billion per truck. The company Oyu-Erdem-Audit also submitted
reports with the same figures, under the IAAC's instruction, said Baasandorj.
Ichinkhorloo is currently under investigation by the Chingeltei District police, while Oyu-Erdem-
Audit is being investigated by Sukhbaatar District police.
Source: Undesnii Shuudan
REGAINING CREDIBILITY - EDITORIAL

18. Mongolia’s ability to attract third neighbor investors and financiers to support funding of its huge
development agenda has deteriorated. Providers of capital are seeking answers to two basic
questions while considering lending or investing in Mongolia. (1) Is the government of Mongolia
supportive of an empowered private sector and is it proactively resolving business disputes? (2)
What is the winning strategy that will turbocharge the economy?
Cameron McRae in “A six-point action plan for Mongolia: Enabling business to create employment
and growth” (August 2012):
“In the Democratic transition, Mongolia committed to three fundamental reforms: respect for
human rights; open, democratic government; and an economy led by the private sector, not
dominated by domestic or foreign state-owned companies. Mongolia’s support for human rights and
political participation is beyond question. Where Mongolia has struggled is in the third reform:
developing an independent, private-sector economy. Our Six-Point Plan will advance Mongolia
rapidly to this goal of developing competitive industries that create jobs. With government’s
focused leadership, we are confident that business will create the growth and employment that
Mongolia needs.”
The six-point action plan (6PAP) thesis was that with government creating an enabling environment
and proactively supporting private sector businesses, both domestic and international, then
business would attract international finance and investors-partners for high quality projects which
would fuel sustainable growth. From a strategic perspective 6PAP recognized the continuing
importance of agriculture, the upside from tourism, some potential viable areas of downstream
processing, the potential for exporting power and the prospects for a mining service sector. The
pillars of 6PAP are stabilizing the economy; creating policy and regulatory stability; reducing
government's role in business and streamline bureaucracy; and developing a prioritized and
fundable infrastructure plan PLUS delivering critical infrastructure projects; and stabilizing and
strengthening the mining sector
Finalization of a competitive and world-class mining policy and the ensuring legal changes is critical
and long overdue. This is work in progress and it is imperative that the Mongolian government gets
this 100 percent right.
This is a summary of a more detailed report by the Institute of National Strategy. Read the full
report here.
Source: Institute for National Strategy
___________________________________________________________
ANNOUNCEMENTS
MONGOLIA LONDON BUSINESS FORUM 2014, 26 SEPTEMBER, LONDON
The Mongolia London Business Forum 2014 will be held Friday, 26 September at Clyde & Co's London
office auditorium.
The focus of the event will be on the development of Ulaanbaatar. Opening remarks will be
delivered by Chairman of the Mongolian British Chamber of Commerce, John Grogan. Subsequent
speakers include Ulaanbaatar Mayor Erdene Bat-Uul and Bayanjargal Byambasaikhan, managing
partner of NovaTerra LLC and chairman of the Business Council of Mongolia.
Attendance is free. To register, email Altansuvd.Brewin@clydeco.com.
________________________________________________________
NAMBC 17th ANNUAL INVESTORS CONFERENCE 2014, 7-8 OCTOBER, BEST WESTERN
Registration is still open for the 17th Annual Investors Conference organized by the North America-
Mongolia Business Council (NAMBC). Venue is the Best Western Tuushin Hotel. Speakers include
State Great Khural Chairman Z. Enkhbold, former President P. Ochirbat, Principal Deputy Assistant
Secretary of Commerce John Andersen, senior government officials from Mongolia, the U.S. and
Canada and leading experts on the Mongolian economy. Program segments include the “Future of
Mining,” “Trade, Investment and the Third Neighbor Policy,” and “Reigniting Economic Growth.”
This is the oldest, continuously held conference on Mongolian business in the world. The BCM is a

19. sponsor and BCM members are treated the same as NAMBC members for registration. Non-members
are welcome. For more information and registration forms, visit www.nambc.org. If you have any
questions, contact nambc@mobemail.mn or hqinfo@nambc.org, or call UB Office Director Bolor at
9918-4372.
_____________________________________________________________________
RISK MANAGEMENT AND INSURANCE SOLUTIONS CONFERENCE, 15 OCTOBER, BLUE SKY TOWER
Session 1: Risk Management and Insurance Solutions Conference for Mongolian Industries. Mining
Sector
Morning session (08:00 – 14:00)
Type of event: conference
Description:
The first sesession of the Risk Management and Insurance Solutions Conference for Mongolian
Industries, arranged by Aon in cooperation with BCM.
Organizers will bring together professionals from the leading Reinsurance and Insurance markets of
Europe, as well as other risks specialists in order to present a full-cycle overview for the mining
industry with a major focus on real cases and applicable specifics. Companies operating in this field
and the ones investing into such business are invited as well as local insurance companies and
financial institutions.
_________________________________________________________
Session 2: Risk Management and Insurance Solutions Conference for Mongolian Industries: Trade
Credit and Political Risks Workshop
Afternoon session (14:00 – 21:00)
Type of event: workshop
Description:
The second session of the Risk Management and Insurance Solutions Conference for Mongolian
Industries, arranged by Aon in cooperation with BCM.
Political Risks and Trade Credit Risks will be in focus for this workshop. In its course participants
will be provided with a comprehensive overview on the competitive and effective solutions to
protect interest of investors into Mongolian business (Political Risks), as well as Mongolian
companies that have trading operations (Trade Credit). Both groups of risks are quite universal and
will be of interest for wider audience of BCM members.
Participation in both sessions is free of charge and is subject to preliminary reservation. Email
saruul@bcmongolia.org by 30 September for registration or call 11 317027.
____________________________________________________________________
MONGOLIA PROJECTS & INVESTMENT SUMMIT, 17-19 NOVEMBER, HONG KONG
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 are eligible for a 15 percent early bird special. 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.
_____________________________________________________________________

20. BCM IN THE UNIVERSITY CLASSROOM’ NEWS
BCM has been pushing forward 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, 1,800 students and teachers have
participated with BCM in the University Classroom Project.
Most recently Mongolkhuu G, Executive Director at National Life Insurance, gave a presentation
entitled “Life insurance and other types of insurance policies that are expected to be developed on
Mongolia” to an audience of 56 teachers and students at Mongolian National University on 16
September.
The next BCM in the University`s Classroom series will be held on 8 October at the Institute of
Finance & Economics. GTs Advocates LLP has been invited to speak. The presentation’s title:
“Corporate Business Law in Mongolia, an overview”.
BCM WORKING GROUP MEETINGS
The BCM Capital Markets Working Group met on Thursday, 18t September with 10 members
attending.
Nick Cousin /BDSec/, Co-Chair of the Working Group, moderated the session.
New Members: Alexander Bachuwa from Lehman Lee & Xu and Amarbayasgalan Enkhsaikhan from
Golomt Bank.
Participants: Ryan Calvert and Noah Elbot from XacBank.
The Working Group meeting discussed current developments in capital markets including:
• Last week’s meeting in London between the MSE and the LSE. The LSE agreed to extend its
partnership with the MSE;
• Plans to privatize the MSE in 2015;
• Potential meetings later this month in UB on OT’s underground mine financing.
BCM will soon be establishing its Energy and Construction Working Group. If you’re interested in
joining this new working group, please contact Erdenetsetseg at erka@bcmongolia.org.
______________________________________________________________________________________

21. 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 – August 2014 by BCM;
• 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);
• 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”;

22. • 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 6,060 fans on our Facebook fans page, 1,726 connections on LinkedIn
network, and 1,217 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/
________________________________________________

23. 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]

24. Year 2013 *12.5% [source: NSOM]
August 31, 2014 *13.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 13.6% y-o-y, Ulaanbaatar city, August 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 – 18 SEPTEMBER 2014
Currency Name Currency Rate
US Dollar USD 1,838.75
Euro EUR 2,369.69
Japanese yen JPY 16.94
British pound GBP 2,996.61
Hong Kong dollar HKD 237.22
Chinese Yuan CNY 299.27
Russian Ruble RUB 47.85
South Korean won KRW 1.76
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.
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