May 20 2011

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 168, May 20 2011
NEWS HIGHLIGHTS:
Business:
 Petro Matad finds hydrocarbons at DT-4 well;
 Ready for slowing Chinese coal demand: SouthGobi CEO;
 Eznis and largest Japanese airline sign agreement;
 OT construction 15% complete, Ivanhoe posts USD492.5 million loss;
 Import of Chinese labor in Oyu Tolgoi to be reviewed;
 Meet obligations or stop work, PM tells Petro China;
 Entree Gold announces Q1 2011 results;
 SouthGobi Resources Q1 loss narrows on higher prices;
 Ivanhoe Energy Q1 loss widens on higher costs;
 Denison Mines reports Q1 net loss of USD7.1 million;
 Manas to use fresh seismic data to improve technical database;
 Boroo Gold again among leading taxpayers;
 National Life Insurance appoints new CEO;
 Gobi declares dividend at shareholders’ meeting;
 Khan Resources unlikely ever to come in from the Mongolian cold;
 Rio Tinto raises USD2 billion through bonds in the U.S.
Economy:
 Coal hauling resumes after repairs to gravel road;
 Economic data released;
 Government wants power plant in Gobi region ahead of schedule;
 Development Bank bonds to be sold in phases until September;
 SMEs have created 18,000 jobs, claims MP;
 Enough diesel from Russia to meet all needs this month;
 President meets with businessmen before Russian visit;
 Mongolia more booby prize than trophy for the LSE;
 “MSE should be where Mongolians make money”, says MICC president;
 U.S. exports to Mongolia surge;
 New priorities for Australia's Trade Commission include office in Mongolia;
 CNNC finishes exploration work, seeks uranium mining licenses in Mongolia;
 ING privately places USD6 million of Khan Bank notes;
 Selenge factory to make sugar from beet;
 Soaring coal prices force China to ration electricity;
 China blunts Germany's edge;
 Logistics improvements would deliver big in China.
Politics:
 Prosecutors forward Davaa’s charges to ACA;
 MPs want consideration for those forced to pay bribes;
 ACA officials’ appeal to be heard on May 24;
 MPP council rejects demand for resignation of Minister Zorigt;
 People’s Assemblymen take a break;
 Standing Committee approves three new consulates;

2.  Foreign Ministry wants more staff, higher salaries;
 Hearing of Khurts’s appeal postponed to June 21;
 Sulfuric acid issue holding back decision on copper smelter;
 Mongolians lap up the novelty of luxury;
 Clean water a difficult challenge in Mongolia;
 180,000 toilets to be disinfected with MCF funds;
 Ger districts show need to better distribute nation’s wealth;
 No legal guarantee exists for media freedom, says NGO leader.
*Click on titles above to link to articles.
BCM MONTHLY MEETING NOTICE
BCM‘s next monthly meeting for members will be Monday, May 23, at 5 PM at the KEMPINSKI HOTEL
KHAN PALACE, 2nd floor, Altai Ballroom. Parking will be reserved in front of the hotel for BCM
members.
The bilingual meeting will feature the following presentations:
- N.Algaa, Executive Director, MNMA: Update on the Mining Sector
- G.Badruun & B.Onon, Project officers, Zorig Foundation: Introduction to Zorig Foundation
- D.Bat-oktyabri, Founder, Startup Weekend Mongolia/Nu-idee LLC: Startup Weekend Mongolia
- Stephen Ujvarosy, President, Telchar Systems: Case Study in Legislative Efficiency
- B.Byambasaikhan, Managing Director, Newcom Group: Strategic Partnerships.
A networking reception will be held for all attendees immediately following the business portion of
the meeting. The City Club wine bar membership cards will be available at the meeting for all paid
individual BCM members.
BUSINESS
PETRO MATAD FINDS HYDROCARBONS AT DT-4 WELL
Oil explorer Petro Matad has found hydrocarbons at one of its wells in Eastern Mongolia, almost a
year after it discovered oil at the first well it drilled in the region. Initial analysis at its Davsan-
Tolgoi-4 (DT-4) well pointed to an oil interval containing a minimum of 6 meters of net pay -- the
zone of a reservoir that contains economically producible oil.
Petro Matad said the deeper regions of the reservoir also exhibited the presence of hydrocarbons
and further analysis was being carried out at the site. Last month, the company restarted drilling at
the DT-4 well, after it had been shut down due to harsh winter conditions. This is the fourth well of
its drilling campaign. The rig will now be moved to drill its fifth well, Petro Matad said.
Source: Reuters
READY FOR SLOWING CHINESE COAL DEMAND: SOUTHGOBI CEO
China‘s slowing growth in industrial output will not lead to softening demand for coal, according to
Mr. Alexander Molyneux, CEO of China-focused coal miner SouthGobi Resources. But the company is
nonetheless prepared for a demand pull back and has been cautious in its estimates. ―We actually
project a roughly 7 percent increase in China's coking coal needs every year, which for the last
decade has been running at 12 percent,‖ Mr. Molyneux said. ―So in our whole business model, we
are considering a slower growth outlook for China and for industrial production. But they don't have
enough good quality coking coal resources left to meet whatever growth they have.‖
SouthGobi sells metallurgical and thermal coal to customers in China, and owns the Ovoot Tolgoi
Mine and two development projects in Mongolia. It has posted a first-quarter net loss of USD46.6
million despite a 44.8 percent jump in revenue, which Mr. Molyneux says was due to accounting
rules, rather than operational causes. ―The bulk of our losses come from a technical loss. We have a
convertible debenture as part of our financing structure, and every quarter we have to mark to
market under accounting rules,‖ he said.
Mr. Molyneux brushed off concerns about the impact of fuel shortages in Russia, following the

3. country‘s recent move to curb fuel exports. Earlier, SouthGobi announced that it had to secure
alternative fuel sources after its supplier claimed force majeure due to the limits on exports. ―We
were lucky in that we immediately went to secure alternative fuel supplies so we had 45 days
continuous mining fuel supply. Most people carry about 2 weeks, we are now at 45 days,‖ he said.
Fuel makes up about 25 percent of SouthGobi's costs. ―I think we are pretty good shape to see this
crisis (through),‖ he added.
Source: CNBC.com
EZNIS AND LARGEST JAPANESE AIRLINE SIGN AGREEMENT
Eznis Airways and All Nippon Airways (ANA) have signed a long term agreement of cooperation and
strategic partnership. A ceremony at the Eznis office last Thursday to mark the signing was
attended by, among others, Prime Minister S.Batbold, Minister for Foreign Affairs G.Zandanshatar
and ANA Executive Vice President Keisuke Okada. Newcom Group is the parent company of Eznis
Airways.
The airlines have agreed to explore bilateral cooperation in a broad range of areas such as
management, operations, and charter flight services between Mongolia and Japan to aid the long
term development of air transportation between two countries and beyond. The airlines will discuss
further details of the partnership in the coming days.
Mr. Okada said in a brief speech that the strategic partnership between the two companies will
allow ―the aviation industry to play its role in the development of the Mongolia-Japan relationship‖,
and will also ―allow ANA to retain its competitive advantage in the Asian market‖. All Nippon
Airways is the eighth largest airline in the world by revenue and the largest in Japan by passenger
number. Mr. S. Munkhsukh, Eznis CEO, added, ―I am very excited about the changes and progress
we will be able to make following this partnership. Furthermore our partnership will create
fantastic opportunities for other sectors of Mongolia‘s economy.‖
Source: News.mn, ANA Public Relations
OT CONSTRUCTION 15% COMPLETE, IVANHOE POSTS USD492.5 MILLION LOSS
Ivanhoe Mines reported a USD492.5 million net loss in the first quarter, primarily due to the
revaluation of a derivative security as it worked on building the huge Oyu Tolgoi copper-gold-silver
complex. The company, which owns two-thirds of Oyu Tolgoi, last week said that overall
construction was about 15 per cent complete at the end of March — slightly ahead of schedule.
Exploration expenses were USD46.2 million, down from USD71.4 million in the first quarter of 2010.
Only about USD13.5 million of the exploration expenses were in Mongolia, while USD30.4 million
was incurred by Ivanhoe Australia. Revenue from coal sales by Ivanhoe's publicly traded subsidiary
SouthGobi Resources was USD20.2 million. That was up from USD13.9 million in the first quarter of
2010, but down from USD41.6 million in the fourth quarter of 2010.
During the quarter, Ivanhoe generated USD1.18 billion from a rights offering to shareholders. At the
end of the quarter, Ivanhoe had USD1.9 billion of cash and as of May 13 its cash position was USD1.6
billion.
Source: www.winnipegfreepress.com
IMPORT OF CHINESE LABOR IN OYU TOLGOI TO BE REVIEWED
The Confederation of Trade Unions (CTU) will study the employment situation in Oyu Tolgoi over
the weekend and recommend terms for an agreement expected to be signed by representatives of
the Government, the CTU, the Union of Employers and Oyu Tolgoi LLC before June 15.
The company needs a large number of workers at the present stage of its development. Since the
required number of skilled workers is not available locally, the Government has decided to allow
6,949 Chinese workers to be brought in. As the official agreement stipulates that 60% of the
workforce should at all times be Mongolian, employing 6,949 Chinese workers would mean
employing more than 11,000 Mongolian workers.
Source: Ardiin Erkh
MEET OBLIGATIONS OR STOP WORK, PM TELLS PETRO CHINA
After an on-site visit, Prime Minister S.Batbold has said Petro China will be asked to stop operations
if it did not fulfill its contractual obligations. Mr. Batbold, accompanied by Minister of Food,
Agriculture and Light Industry T.Badamjunai, the State Secretary of the Road, Transportation,
Construction and Urban Development Ministry, and several Members of Parliament, visited some
areas where Petro China operated, and found the roads badly damaged by the oil transportation
traffic. Not merely has no reclamation work been done, but industrial waste was being buried

4. underground, against all environmental guidelines. Enquiry following complaints from local citizens
revealed that the company did not have an environmental reclamation fund.
The Government has now reminded Petro China that it is expected to build a hard covered road,
pay oil exploitation fees, conclude a proper product share agreement, build an oil exploitation
plant and set aside money for environmental rehabilitation. The Prime Minister made it clear that
the company‘s operation in Mongolia will be suspended if sufficient progress is not seen to have
been made in all these directions.
Source: Undesnii Shuudan
ENTRÉE GOLD ANNOUNCES Q1 2011 RESULTS
The following are among the highlights listed by Entrée Gold Inc. in its interim operational and
financial results for the first quarter ended March 31, 2011:
Appointment of Mr. Bruce Colwill as the Chief Financial Officer;
Extension of Oyu Tolgoi-type mineralization three kilometers to the north of Ulaan Khud;
Announcement of joint venture budget of USD7 million for the Entrée-OT LLC joint venture work
programs, including USD2 million for development related work on the Shivee Tolgoi license; and
Net loss of USD5,342,265 for the period.
Mr. Greg Crowe, President and CEO, has said ―substantial exploration and development work is
under way on our properties in Mongolia".
Source: Entrée Gold Inc.
SOUTHGOBI RESOURCES Q1 LOSS NARROWS ON HIGHER PRICES
SouthGobi Resources Ltd. has posted a narrower quarterly loss, helped by an increase in selling
price for coal. The company, which owns the Ovoot Tolgoi Mine and two development projects in
Mongolia, sees sales volumes of 0.6-1.3 million tons in the current quarter. It expects selling prices
to remain the same sequentially.
SouthGobi Resources sells metallurgical and thermal coal to customers in China, and shipped 0.45
million tons at an average realized price of USD50 per ton in the quarter, up from 0.43 million tons
at USD36 per ton last year.
For the January-March quarter, the company posted a net loss of USD46.6 million, against last year's
USD168.3 million. Revenue jumped 44.8 percent to USD20.2 million.
Source: Reuters
IVANHOE ENERGY Q1 LOSS WIDENS ON HIGHER COSTS
Canadian heavy oil producer Ivanhoe Energy Inc. posted a wider quarterly loss hurt by higher costs.
The company, which has operations in Canada, Ecuador, China and Mongolia, said January-March
net loss was USD11.1 million, compared with a loss of USD6.8 million a year ago. Revenue rose 55
percent to USD8.2 million. It had cash and cash equivalents of USD80.8 million at March 31.
Source: Reuters
DENISON MINES REPORTS Q1 NET LOSS OF USD7.1 MILLION
Denison Mines Corp. had a net loss of USD7.1 million for the first quarter. The company lost the
same amount in the first quarter of 2010, but has narrowed a loss of USD9.4 million in the fourth
quarter of 2010. Denison is engaged in uranium exploration on properties in Canada, the U.S.,
Mongolia and Zambia, and it saw its first quarter exploration costs nearly double to USD3.18 million
from the USD1.6 million in the comparable period a year in 2010.
Source: The Canadian Press
MANAS TO USE FRESH SEISMIC DATA TO IMPROVE TECHNICAL DATABASE
Manas Petroleum Corp. has published its report for the first quarter of 2011, in which it says that it
intends to use the additional 300 km of 2D seismic data for blocks XIII and XIV to improve its
technical database and chance of drilling a successful exploration well. After interpretation of the
full dataset, the company intends to decide regarding additional seismic to be acquired in 2011.
Drilling for the first well is planned for the first half of 2012.
Net loss for the three-month period ended March 31, 2011 was USD9,876,323 as compared to net
income of USD83,011,315 for the same period in 2010. This decrease is mainly related to the
company‘s investment in Petromanas. Cash balance as of March 31, 2011 was USD399,931.
Shareholders' equity as of March 31, 2011 was USD64,487,643. On May 6, the company completed a
public offering of units, raising gross proceeds of USD22,225,250.
Source: Manas Petroleum

5. BOROO GOLD AGAIN AMONG LEADING TAXPAYERS
Boroo Gold Company is on the list of leading taxpayers in 2010 published by the General Tax
Department on May 13. This is for the second year in a row that the company has been so honored.
The recognition underscores not just the amount of taxes the selected companies have paid, but
also their compliance with tax legislation.
Since 2004, Boroo Gold has paid over MNT 209.4 billion in taxes to the state and local budgets. In
terms of the amount of taxes paid, Boroo was 2nd
in the country in 2007 (MNT 43.8 billion), 3rd
in
2008 (MNT 41.5 billion), 1st
in 2009 (MNT 40.7 billion) and 3rd
in 2010 (MNT 47.4 billion). Mr. Ian
McNeil, Senior Operations Manager, says, ―We have been submitting our financial and operational
reports to the Extractive Industries‘ Transparency Initiative (EITI) every year since this organization
established its branch here. We believe that transparency of operations will play the main role in
developing responsible mining in Mongolia.‖
Source: Boroo Gold
NATIONAL LIFE INSURANCE APPOINTS NEW CEO
Mr. G. Mongolkhuu has been appointed CEO of National Life Insurance Company in succession to Ms.
B. Enhtungalag who resigned on personal grounds. She has, however, agreed to remain associated
with the company to assist the new CEO in its day to day running. In a statement the Board of
Directors appreciated the ―great diligence and professional integrity‖ Ms. Enkhtungalag displayed
since the company was established in 2007 and her ―exceptional work‖ in laying the foundation of
the company.
Mr. Mongolkhuu is 32 years old and studied business administration at Gadsden State Community
College (USA), and finance in Jacksonville State University (USA). He also held jobs in the financial
sector in the USA. He was the head of the finance department of National Life Insurance from 2007
to 2009, and CEO of MIBG Investment Brokerage Company under FSCo. Group until he took leave of
absence to go to the USA in 2010 for personal reasons. The Board of Directors of National Life has
expressed its confidence that he is the right candidate for the job.
Source: National Life Insurance
GOBI DECLARES DIVIDEND AT SHAREHOLDERS’ MEETING
Gobi LC, the leading manufacturer of cashmere and wool products in Mongolia, held a general
meeting of shareholders on April 22. It reviewed the financial report, the profit and loss account,
sales details, raw material stocks in 2010 and the target plan for 2011. This includes, executives
told shareholders, a plan to double the capacity of the company‘s knitwear manufacturing plant, a
goal to be achieved by purchase of new equipment, and increasing the number of workers.
The Board of Directors had decided at a meeting on February 24 to declare a dividend of MNT100
per share. In another development, Gobi launched its new Summer/Spring collection called GOBI by
SAVERIO PALATELLA on April 25 at its Factory Store. The cooperation between Gobi and the well
known Italian designer, Mr. Saverio Palatella, began last year.
Source: Gobi LC
KHAN RESOURCES UNLIKELY EVER TO COME IN FROM THE MONGOLIAN COLD
Underneath the endless brown steppe in the remote northeastern corner of Mongolia, known as
Dornod, lies a vast store of uranium. It‘s a four-hour drive on a dirt track from Ulaanbaatar to what
is now just a collection of yurts. Six security guards, employees of Canadian junior miner Khan
Resources Inc., are stationed there. ―If you stand on the hill that‘s right beside the deposit, you
look one way, you can see China,‖ said Mr. Grant Edey, Khan‘s Chief Executive Officer. ―You look
the other way, you see Russia.‖
That proximity to Russia has come to haunt Mr. Edey‘s company. In 2009, Mongolia revoked Khan‘s
mining licenses and announced a joint venture with Russian state-owned uranium miner
Atomredmetzoloto JSC (ARMZ) to develop the Dornod site. Khan, which says it is has spent up to
USD40-million since 2005 on feasibility studies and exploration, was left out in the bitter Mongolian
cold. The dispute has sparked legal battles in Ontario and Mongolian courts, and is headed for
international arbitration. Legal experts call it a cautionary tale for companies doing business in
Mongolia or other developing countries, or with large state-owned enterprises. Mongolia is a
popular place with Canadian mining firms, with scores setting up shop there in recent years and
Ivanhoe Mines involved in a massive copper-gold joint venture.
Last September, Khan launched a lawsuit in Ontario against ARMZ, one of the world‘s largest
uranium miners. In a statement of claim for USD700 million in damages, Khan alleges that the
Russian firm wrongly excluded the Canadian company from the Dornod project and waged a

6. campaign to discredit it. Earlier this year, Mr. Edey said, ARMZ, as an arm of the Russian
government, refused to be served with the Ontario lawsuit, invoking the Hague Convention and
calling it an issue of ―national security‖, raising questions about whether such entities can try to
use sovereign immunity as a tactic to delay or avoid Canadian courts.
A court date last month to hear the issue was postponed for settlement talks between the two sides
in London, but no agreement was reached. Mr. Edey expects a judge to hear the issue some time in
June. Mr. Larry Herman, a former diplomat and a lawyer who specializes in international
arbitration, said the dispute shows how vulnerable Canadian investors are in countries without an
investment-protection treaty with Canada.
Mr. Edey said he doesn‘t believe Khan can ever reclaim the Dornod mine, but he is trying to get
some compensation for his shareholders, and has shifted his sights to a stake in a uranium venture
in Peru. He said Khan‘s trials should be a warning to other Canadian firms and investors. ―Political
risk is real in a lot of countries. And it is alive and well in Mongolia.‖
Read more…
Such treaties, similar to a provision in the North American free-trade agreement, allow disputes
between investors and foreign countries to be referred to international arbitration directly, without
first having to duke it out in the country‘s local courts. (Canada and Mongolia have such a treaty in
the works but it has not been finalized.) ―When there is no bilateral investment-protection
agreement, companies don‘t get access to all of the safeguards,‖ said Mr. Herman, who is not
involved in the case.
Another lawyer and veteran of international arbitration said stories such as that of Khan Resources
are a warning for Canadian companies operating in developing countries. More companies need to
plan strategically, he said, perhaps by setting up a company in a third country with a strong
investment-protection treaty with the country where the investment is going. ―When you‘re a
company that‘s going to invest in these sorts of places in the world, you want to think in advance:
How do we set this up to give us the maximum protection if something goes wrong?‖ he said.
Mongolia has a long history of Russian, and Chinese, domination. The Dornod project once belonged
to Russia, in the 1990s. With uranium prices in the basement, the Russians abandoned it, Mr. Edey
said. But they still retained a 21-per-cent interest in the dormant venture. Mongolia also
maintained a 21-per-cent interest.
Uranium prices started to rise as the world began to look again to nuclear power as a cleaner
energy source. In 2005, Khan – listed on the Toronto Stock Exchange and set up to develop the site –
bought the remaining 58-percent stake, and also acquired the property next door. As a result, Mr.
Edey said, his company held about 70 per cent of the estimated uranium believed to be
underground, with the total cache worth up to USD2.5 billion at today‘s prices.
The plan was to develop the site as a joint venture. Mr. Edey said the Russians showed little
interest until early 2009, when President Dmitry Medvedev paid a visit to the remote site, along
with Mongolia‘s then Prime Minister, Mr. S. Bayar.
Meanwhile, Mongolia was reconsidering the rules of the game. In 2009, it issued a new nuclear
energy law that demanded an up-front, 51-per-cent government stake in most major uranium
projects. It also suspended Khan‘s mining licenses and said the company had failed to submit its
reserve estimates, which Khan denies. Russia and Mongolia then announced their joint venture to
develop Dornod, leaving Khan out of the picture.
In late 2009, ARMZ launched a hostile takeover bid for Khan, whose share price had plummeted
because of the uncertainty about the Mongolian project. Khan sought a white-knight investor in the
form of CNNC Overseas Uranium Holding Ltd., a Chinese state-owned company, and ARMZ then
withdrew its bid. In its statement of claim, Khan accuses ARMZ of interfering with the Chinese bid
and making ―misstatements‖ about the company. The Chinese bid ultimately fell through when the
Chinese government failed to approve it.
Source: The Toronto Globe and Mail
RIO TINTO RAISES USD2 BILLION THROUGH BONDS IN THE U.S.
Rio Tinto has raised a total of USD2 billion in long-term debt bonds. The offer, registered in the
U.S. Securities Exchange Commission, consisted of USD700 million in 5-year notes with a coupon of
2.5 percent, USD1 billion in 10-year bonds with a 4.125 percent coupon and USD300 million in 30-
year bonds paying a 5.2 percent coupon. The 30-year issue was an increase to an existing offer.
Source: Reuters

7. SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Mongolian Star Melchers
ECONOMY
COAL HAULING RESUMES AFTER REPAIRS TO GRAVEL ROAD
The Mongolian Mining Corporation (MMC) has revealed that the South Gobi Province Professional
Inspection Agency has lifted the temporary suspension of coal hauling on the gravel road from the
Tavan Tolgoi area to Tsagaan Khad. The suspension had been enforced on April 21, and lifted on
May 14, after an inspection was satisfied with the improvements effected. The inspecting
commission comprised experts from the General Agency for Specialized Inspection, the Ministry of
Environment and Tourism, the Ministry of Energy and Mineral Resources, the South Gobi Province
Professional Inspection Agency, and officials of Tsogttsetsii, Khanbogd, and Bayan-Ovoo districts,
through which the road passes.
Following the suspension, the MMC began work on improving the gravel road conditions, with help
from coal miners also using the road. The results were checked once on May 6, and then again on
May 13. On May 14, the company received a notification from the commission that users were free
to resume coal hauling.
Maintenance work of the gravel road will continue until construction of the paved road is complete.
This is expected to be by August this year and will enable uninterrupted and reliable coal logistics
and transportation link from the Tavan Tolgoi area to the border between Mongolia and China.
Mongolia halted deliveries from the South Gobi on April 20 in a tit-for-tat move after China had
technical problems with registering vehicles at the border, the chairman of the Mongolian Mining
Club had said at the time. MMC now did not say what impact the trucking ban had had on the coal
trade, although when the suspension was imposed, it said it had two weeks' worth of stockpiles that
could keep customers supplied while the road was closed.
Source: Mongolian Mining Corporation, Reuters
ECONOMIC DATA RELEASED
The following data and indicators are for April 2011 or for the first quarter of the year and the
comparisons are with the corresponding period, unless otherwise stated:
Economic growth
The first quarter of 2011 recorded an economic growth of 9.7% y-o-y at 2005 constant prices, and of
24.1% y-o-y at current prices.
Consumer price index
The consumer price index in April fell 0.2% m-o-m and 8.0% y-o-y. The y-o-y drop had been 5.5% in
March.

8. Money supply
Money supply (M2) in April expanded 8.0% m-o-m and 69.2% y-o-y. Currency in circulation increased
18.4% m-o-m and 41.3% y-o-y.
Banking assets, loans
Banking sector assets grew 6.6% m-o-m and 52.0% y-o-y at the end of April. Loans outstanding at
the end of the month were up by 6.5% m-o-m and by 43.7% y-o-y. Non-performing loans increased
2.5% m-o-m but fell 8.3% y-o-y.
Budget, taxes
The General Government Budget showed a surplus of MNT70.0 billion at the end of the first four
months, while the surplus in the current account amounted to MNT181.4 billion. Tax receipts rose
60.3% y-o-y.
Foreign trade
Total foreign trade turnover in the first four months increased 77.0% y-o-y, with exports and
imports rising 59.4% and 92.5% y-o-y respectively. The total foreign trade deficit in the first four
months amounted to USD421.4 million, with April accounting for USD75.7 million of it.
Industrial output
Total industrial output in April increased 8.4% y-o-y.
Source: The National Statistics Office
GOVERNMENT WANTS POWER PLANT IN GOBI REGION AHEAD OF SCHEDULE
The Government yesterday asked Minister of Mineral Resources and Energy D.Zorigt to submit by
June initial plans for constructing a power station in the Gobi region so that the Oyu Tolgoi project
can proceed on schedule, to enable extraction work to begin as planned. The first decision to be
taken is on the location of the planned plant. If this is clear by June, construction can start this
year. The plan so far was to build the power station between 2016 and 2018.
The choice at present is between Tavan Tolgoi and Oyu Tolgoi mines. If it falls on Tavan Tolgoi, a
source for long-term water supply will have to be found, and its environmental impact assessment
made. Oyu Tolgoi LLC has suggested building the power station on a specially licensed area in or
near its project. The company is at present making arrangements to import electricity from China
after receiving special permission from the Government to do so. It has sought Government
assistance in setting up transmission lines from the border and the whole thing is expected to be
discussed at a Mongolia-China consultative meeting on May 30-31 in Beijing. If a definite decision is
not taken, the project might be delayed.
Source: Montsame
DEVELOPMENT BANK BONDS TO BE SOLD IN PHASES UNTIL SEPTEMBER
The sale to raise USD700 million in MNT-denominated bonds due in five, 10, and 15 years will begin
this month and last in several phases around September. Mr. Ch. Khashchuluun, Chairman of the
Development Bank of Mongolia, has said they will have another meeting with investors ―in a week
or two to make more concrete plans‖ to set terms for the initial sale. The Central Bank and the
Finance Ministry are involved in ―extensive consultations‖ on the sales, he said.
The bonds will be offered via the stock exchange and the Central Bank, with a private placement
also possible, Mr. Khashchuluun said. The size of the offering may be adjusted to reflect market
demand and also bring in a wide range of investors with the number of sales not yet decided, he
said. Domestic banks and international investors have shown interest in the debt and yields are
being discussed.
Moody‘s Investors Service rates Mongolian sovereign debt B1, four levels below investment grade,
while Standard & Poor‘s rates it BB-, three levels below investment grade. Moody‘s rates Mongolia
the same as Sri Lanka, which sold 10-year bonds to yield 6.25 percent in September last year.
―The bank‘s lending can‘t be very costly, because it is policy-based financing,‖ Mr. Khashchuluun
said. However, rates have to be high enough to attract investors, he said, ―so it demands a
balance.‖
Read more…
The Government has tasked the Development Bank of Mongolia, which opened last week, to help
finance rail, road and other infrastructure projects as well as the building of an industrial park. The
bank is in a hurry to start the sales so that it can access funding before construction stops due to
freezing temperatures in the winter months, Mr. Khashchuluun said. Lack of infrastructure is
holding back economic development across the economy, he said.
Source: Bloomberg

9. SMEs HAVE CREATED 18,000 JOBS, CLAIMS MP
The head of the Standing Committee on the Economy, Mr. D.Zorigt, told media after a review of a
report by the Subcommittee for SME Development on Monday that the subcommittee has received
requests for loans totaling MNT900 billion and more are coming. As capital allocated from the state
budget is not enough to meet this demand, a working group has been set up to identify new capital
sources and the Government has been asked to consider selling bonds to raise money to be put into
the milk and the meat sectors.
Refuting allegations that the Government‘s SME policies achieve less than they promise, Mr. Zorigt
said that loans have been given to 3,300 SME organizations since 2008 and their projects have
generated 18,000 jobs. MNT14 billion of the total MNT28 billion lent has been repaid until the end
of April. The repaid amount has been issued as fresh loans to SMEs. The rate of interest on SME
loans was fixed at 1% monthly in 2009, but for some types of loan this was reduced to 0.8% last
year. He said the subcommittee feels loans can be given for five years at between 6% and 8% annual
interest.
There is no easy solution to the problem of collateral, particularly as banks insist on guarantees and
pledges according to their requirements. Some MPs have prepared a draft law to set up a loan
guarantee fund and will submit it to Parliament soon, Mr. Zorigt said. A break-up reveals that 24%
of SMEs are in the food sector, 15% in the service sector, 20% in light industry and 10% in building
material.
Source: Ardiin Erkh
ENOUGH DIESEL FROM RUSSIA TO MEET ALL NEEDS THIS MONTH
Russia has finally agreed to supply 80,000 tons of diesel in May, according to the Mineral Resources
and Petroleum Authority (MRPA). This will meet the normal monthly demand of 34,000 tons plus
this month‘s special needs for spring planting. The MRPA does not anticipate any rise in retail
prices. The higher price of USD1,250 per ton that TNK LLC is charging will be offset by the
Government‘s decision to reduce the special import tax. The Ministry of Minerals and Energy hopes
things to be normal in June when Russia will have lifted restrictions on diesel export.
Source: News.mn
PRESIDENT MEETS WITH BUSINESSMEN BEFORE RUSSIAN VISIT
President Ts.Elbegdorj will be visiting Russia from May 30 to June 3. He will hold talks with officials
in the economic and trade sectors in Khalimag and Tuva, while in St Petersburg the focus will be on
cultural relations. The President invited business leaders to a meeting on Tuesday to hear their
views on trade with Russia. Apart from Mongolian officials and Ministers, Russian Ambassador
V.V.Samoilenko was present at the meeting.
In his opening remarks, Mr. Elbegdorj said before 1990, 90 percent of Mongolian exports were to the
Russian market, but now the figure stands at 2.7 percent. Mongolian exports to Russia bring in
USD40 million, whereas its imports from Russia cost USD1.2 billion. He then asked for suggestions on
how this gross imbalance can be redressed.
Meat producers urged the President to seek Russian help in improving veterinary medical services
here that would allow Mongolia to export 100,000 tons of meat annually to Russia. Another
suggestion was to explore a wider market for Mongolian meat, taking it beyond Siberia to other
areas behind the Ural. Some felt Mongolian cashmere and leather products would find a good
market in Russia, but intensive commercial promotion was needed for this.
Source: Montsame
MONGOLIA MORE BOOBY PRIZE THAN TROPHY FOR LSE
Quite a lot has happened since the London Stock Exchange (LSE) in February announced a "merger" -
the term is in dispute - with the Canadian bourse operator TMX. A multibillion-dollar bidding war
has broken out between European and US exchanges over control of western financial markets; a
general election in Canada has returned the same conservative government that expressed concerns
about the LSE-Canadian plan a few weeks back; and a consortium of Canadian bankers has grouped
together to try to block the deal.
Oh, and the LSE has done a deal with the Mongolian Stock Exchange. You might have missed that
one in the blur of global markets activity, but the LSE announced it was going to help the people of
Mongolia to establish their very own bourse. Now, Mongolia is a fascinating place and - thanks to
soaring global commodity prices - will be able to boast high rates of economic growth for some time
to come. But for an organization such as the LSE, which likes to claim it is the leading financial
marketplace in the European time zone, to be even bothering about Ulaanbaatar while the future

10. of global exchanges is being decided in Frankfurt and New York is indicative of how the LSE's world
view has diminished.
It also recently signed deals with stock exchanges in India and Malaysia, but, interesting as these
places certainly are, they are not going to be the locations for the next major global financial
market. And nor is London, judging by the way things are going. The LSE's ambitions are not the
only thing that has diminished since the Canadian plan was announced. Its shares have also taken a
hammering. From about £930 in February, they had fallen 11 per cent to stand at £826 at the time
of writing.
Whether the LSE, under the relatively new chief executive Xavier Rolet, is bothered about the
concerns of Gulf investors is uncertain. We do know, however, that when the Canadian deal was
first announced there was some consternation, at least in Dubai. The emirate had been given only
the most perfunctory advance notice of the intended link-up, and some were not impressed with
what they heard.
The signs are not good that London will emerge from all this with a strengthened strategic position,
or very happy shareholders. Still, the LSE will always have Ulaanbaatar.
Source: The National, UAE
“MSE SHOULD BE WHERE MONGOLIANS MAKE MONEY,” SAYS MICC PRESIDENT
Mr. D.Achit-Erdene, President of the MICC investment bank, feels the increasing Mongolian
participation in foreign miners‘ work is a promising development. Earlier, ―they came, drilled, and
went home to raise capital,‖ but now companies listed in the Australia and Hong Kong Stock
Exchanges have shares owned by Mongolian companies, and more and more Mongolians are in their
management team. ―Indeed, 10 percent of the USD38 billion capital is in Mongolian hands,‖ he
says, calling it ―a good sign‖. Mongolians profiting from their shares in these companies will
―encourage more people here to invest similarly‖. Also, Mongolians being part of the management
team of a company makes it more trustworthy for Mongolians looking to buy shares.
Mr. Achit-Erdene hopes the anticipated restructuring by the London Stock Exchange will make the
Mongolian Stock Exchange more attractive to investors, and says, ―The MSE can be stronger only if
the companies listed there change their ways. Now 80-90 percent of shares in most good companies
are held by a few individuals or families. There is no real public participation. This is disappointing
as MSE should be where Mongolians make money by investing in Mongolian companies. International
investors will be attracted to MSE only when it becomes locally popular.‖
His experience has been that local companies ―do not value research and suspect our motives when
we ask for information‖, making it difficult for MICC to offer reliable advice about MSE-listed
companies. There are exceptions like APU and Gobi whose financial accounting meets international
standards, but investors cannot be encouraged in companies like Tavan Tolgoi LLC which cannot
give any clear idea of its resource reserves.
Source: The Mongolian Mining Journal
U.S. EXPORTS TO MONGOLIA SURGE
U.S. export of goods to Mongolia in the first three months of 2011 totaled USD68.2 million, and
imports USD5.8 million. The information paints a compelling picture of a surging export
relationship. The first quarter exports are about 60% of last year's total of USD114 million. The
composition of these exports is more diverse than expected. Of course, mining equipment is
important, but cars and materials handling equipment comprise key parts of the export portfolio.
The data sets also confirm that Mongolian exports to the U.S. have declined in the wake of the end
of the Multi-Fiber Agreement in 2005, dropping from nearly USD240 million in 2004 to less than
USD12 million in 2010, and to USD5.8 million in this year‘s first quarter, which shows a deficit of
USD62.4 million for Mongolia.
Source: U.S. Census Bureau, Foreign Trade
NEW PRIORITIES FOR AUSTRALIA’S TRADE COMMISSION INCLUDE OFFICE IN MONGOLIA
The Australian Trade Minister, Mr. Craig Emerson, says Australia's Trade Commission will close some
offices in North America and Europe and new ones will be opened in Mongolia and Central Asia. He
says the first review of Austrade in 20 years found it had taken on too many varied projects from
different governments. It is trying to do too much, and needs to refocus. "They were being spread
too thinly and trying to be all things to all people," Mr. Emerson said. "The review was designed to
refocus Austrade's activities, so that it is more effective in doing its job." The Government has set
the organization a new priority - to help Australian businesses deal with difficult and emerging
foreign markets.

11. Source: Radio Australia News
CNNC FINISHES EXPLORATION WORK, SEEKS URANIUM MINING LICENSES IN MONGOLIA
CNNC International has sold its metal casting business for HKD159 million and will use the proceeds
in exploration of mines and trade in uranium resources. The company says it will negotiate with the
Government of Mongolia on rights of mining uranium and will start a related project next year. The
project is expected to have a capacity of 500 tons by 2015.
In Mongolia, CNNCI acquired 100% equity of Western Prospector Group Ltd. in two phases in 2009,
thus taking control of several uranium exploration licenses. All the exploration work was completed
in 2010. The Group now expects to finalize negotiations with the Mongolian Government for the
issuance of mining licenses. Construction work is expected to commence in 2012. Trial runs for
production are expected to commence in 2014.
Source: Capital Vue
ING PRIVATELY PLACES USD6 MILLION OF KHAN BANK NOTES
ING sold USD6 million of three-year notes linked to Khan Bank LLC, Mongolia's largest bank, paying a
coupon of 8.3 percent. Investors in the privately placed deal are exposed to both exchange rate and
bank credit risks.
Credit-linked notes offer investors exposure to bonds that are normally difficult or costly to access.
Banks already active in these countries can source bonds more easily and pass the returns on to
investors at a lower cost.
Hedge funds are seeking credit-linked notes tied to bonds of the lowest-rated countries as yields on
other fixed-income assets remain near record lows. "We have had some hedge funds saying they
want some seriously exotic stuff," said Mr. Guy Thomas, the global head of emerging-market credit
structuring at ING Groep NV, who sold a credit-linked note on Mongolia last week. "The East
European and Latin American countries are pretty well exploited."
Banks issued notes linked to Egypt, Venezuela, Romania, Mongolia and Vietnam in the past two
weeks, offering coupons as high as 13.2 percent. Ten-year U.S. Treasury yields are currently at 3.22
percent, compared with the 10-year average of 4.1 percent. The difference between yields on
corporate debt and government bonds remains near record lows. Demand for notes which offer
access to illiquid securities has surged as investors seek the higher-yielding investments.
Source: CT Post
SELENGE FACTORY TO MAKE SUGAR FROM BEET
A factory built with money from the SME Support Fund to produce sugar from sugar beets has come
up in Bayanangol district in Selenge province and will begin working once the sugar beets are
harvested. The district Governor has said beet would this year be grown in 90 hectares. Apart from
meeting a part of the domestic demand for sugar, the factory would also encourage local residents
to grow sugar beets.
Source: News.mn
SOARING COAL PRICES FORCE CHINA TO RATION ELECTRICITY
Chinese provinces are rationing electricity as soaring coal prices squeeze power generation
companies, underlining the challenges facing the world‘s largest energy consumer as global fuel
prices rise. While China experiences power cuts each summer, some provinces have started
rationing earlier than usual this year. In recent days Hunan, Zhejiang, Jiangsu and Anhui provinces
have implemented cuts, alongside Shanghai and Chongqing.
Chinese officials have been warning for weeks that shortages would be more severe than usual this
year. On Tuesday, Ms. Xue Jing of the China Electricity Council, an industry body that reports to
state regulators, told state media that China would ―face its most severe electricity shortage since
2004‖. She said there could be a national shortage of 30m kilowatt hours this summer, which she
said would equate to the consumption of three Chongqings, referring to the southern city of 31
million.
Chinese electricity companies are facing financial pressure from the increase in global energy costs
as Beijing hesitates to increase state-controlled electricity prices because of concerns over
inflation. While the price of thermal coal – which fuels 70 per cent of China‘s power plants – has
risen by nearly one fifth since last year, Beijing has raised electricity tariffs by just 2 per cent
during the same period, and the price gap has prompted some stations to close or reduce
generation. ―Power plants promise industry regulators that they will generate power at full steam,
but privately they don‘t because of their financial losses,‖ explains Mr. Lin Boqiang, an energy

12. economics expert.
Read more…
Compounding the problem of rising energy costs, hydropower generation has also fallen after a dry
winter in southern China. In Changsha, the capital of Hunan province, which draws much of its
electricity from hydropower, roadside lights have been dimmed and city districts are experiencing
rotating one-hour power cuts, according to one resident, who first noticed the changes a few weeks
ago. The southern province of Guangdong – the most industrialized province in China – has issued
stern warnings about its power supply, saying the shortfall could reach 4m kW per hour during May,
June and July.
Power outages will prompt more manufacturers and businesses to rely on diesel generators for
electricity. The shortages are expected to boost demand for diesel, just days after China banned
exports of the fuel. Analysts forecast that if crude oil prices rise above USD130 per barrel – from
USD110 now – and state-mandated fuel prices remain unchanged, China will see shortfalls of
gasoline and diesel as refiners cut back on loss-making runs.
Energy is one of the few sectors in China dominated by state price controls, and analysts blamed
Beijing for mismanaging prices. ―China is using planned-economy methods to regulate a market
economy,‖ said one, citing the state controls on coal contract prices and electricity tariffs.
―Authorities are getting too heavily involved in the [coal and power] market,‖ he added.
Source: The Financial Times
CHINA BLUNTS GERMANY’S EDGE
Growing competition from China is spurring German machinery makers to reassess how to preserve
an edge that has made their industry a linchpin of the country's export-driven economy. Chinese
rivals are gaining ground in their home market, unnerving German producers about the
competitiveness of a sector that accounts for 7% of the German economy. The German companies
find themselves up against a state-driven industry growing in large measure through acquisitions
and inexpensive labor and building on lessons learned two decades ago in the textile industry.
Mr. Martin Herrenknecht says his tunneling-equipment company entered a joint venture in China,
rather than fight for intellectual-property rights. "Germany needs to focus on quality and innovation
because when it comes to mass-market machinery, China will soon have the upper hand," says Mr.
Bernd Reitmeier, a former member of the German Chamber of Commerce in China.
Many industry experts say Germany's reputation for engineering quality and reliability should help
the sector counter Chinese challenges for leadership in high-end machinery, such as drilling and
factory equipment, and other engineering sectors. Still, the momentum behind China's companies
underscores the long-term obstacles German companies face in maintaining an innovative edge as
the supply of home-grown engineers and other skilled workers dwindles.
German companies—mostly small, family-owned enterprises—continue to hold the largest share in
the Chinese market for high-end machinery, which is estimated at between roughly USD110 billion
and USD120 billion. German exports to China of high-end machinery reached USD21.79 billion last
year, up 34% from 2009, according to German government statistics. Though the Chinese and
German figures aren't strictly comparable, it appears China's companies are catching up.
Read more…
The growth of China's machinery industry recalls the country's approach in the 1990s to textiles, an
area China now dominates. Both sectors have benefited from governmental financial support.
President Hu Jintao in March announced a five-year plan to invest more than USD500 billion in key
industries, including machinery. Beijing two years ago unveiled an equipment-manufacturing
revitalization plan meant to increase its market share world-wide and to decrease dependence on
foreign-owned companies.
Chinese companies also pay lower salaries than their German counterparts, use less expensive parts
and receive government subsidies or tax rebates. As a result, Chinese products often cost 10% to
20% less than German ones, analysts say. Chinese programs give away land for free, buildings for
free. Many Chinese firms receive tax rebates.
German engineering companies long have worried about Chinese rivals violating intellectual-
property rights. Chinese companies also gain access to German expertise through acquisitions,
mostly of small, low-profile companies. The value of Chinese acquisitions in Germany rose to USD98
million last year from USD3.6 million in 2006. The total already is USD83.4 million this year, with
nearly all the deals involving engineering companies.
Source: The Wall Street Journal

13. LOGISTICS IMPROVEMENTS WOULD DELIVER BIG IN CHINA
China's e-commerce companies may yet turn a logistical nightmare into a dream business
opportunity. Massive government investment in road, rail and air infrastructure means that China's
transport network is approaching developed-world standards. But the cost of moving goods from A
to B remains high. Logistics costs as a percentage of GDP are around 21%, compared with 10% in the
U.S. and 13% in India. Part of that gap is explained by China's focus on manufacturing. But beyond
that, the country has a fragmented system, high tariffs for road transport and multiple providers
piling on fees. Even outside the manufacturing sector costs are high. A Chinese government
investigation found that two-thirds of the retail price of vegetables represents logistics costs.
And even though costs are high, service is often poor. Local logistics providers are famously slow
and unreliable. Assuring end-to-end delivery of products across provincial boundaries is a real
challenge. That's a particular problem for e-commerce companies such as Alibaba Group, 360buy
and Joyo Amazon, which rely on guaranteeing delivery of goods from supplier to customer.
The central government says it is committed to the development of a modern, efficient logistics
network. But ambitious goals set in Beijing are running up against a difficult reality at a local level.
Provincial governments benefit from local firms that contribute tax revenue, even if they are less
efficient than larger national players. State-owned firms often run their own in-house transport and
distribution services, reducing the size of the market for specialist logistics firms.
Read more…
For third-party logistics providers, working through the tangle of local regulation has proved
difficult, if not impossible. Mr. Jeffery Wong of global advisory firm KPMG says even the bigger
players remain mainly confined to provincial markets. But for e-commerce firms, the rapid growth
in online sales is providing both motive and opportunity to get to grips with the problem. For
Amazon in the U.S., efficient distribution has been the key to keeping prices low and gaining
market share. The aspiration for e-commerce firms in China is to do the same. Online retailer
Alibaba has invested in its own system of warehouses and is working with existing logistics providers
to stitch together a national system, and 360buy is partnering with Wal-Mart to build a network.
The rapid growth of e-commerce means that major players can take advantage of scale in their
operations. On a single day in November 2010, Taobao Mall, the business-to-consumer arm of
Alibaba's online empire, shipped 15 million packages. Building an efficient logistics system won't be
easy, especially for e-commerce firms whose core competences lie elsewhere. But the Chinese
market is wide open. For companies that can get it right, the solution to a business problem could
turn into a driver of future profitability.
Source: The Wall Street Journal
POLITICS
PROSECUTORS FORWARD DAVAA’S CHARGES TO ACA
The Ulaanbaatar Prosecutors‘ Office has forwarded to the Investigation Department of the Anti-
Corruption Authority (ACA) a letter Mr. N.Davaa, a member of the Representatives‘ Managing
Council of the erstwhile Anod Bank, sent it through his wife. This was his third letter from jail, all
of which have leveled corruption charges against important officials. This last letter claims that the
Chief of the Cabinet Secretariat, Mr. Ch.Khurelbaatar, has misused his official position to harm the
state‘s interests, and the Prosecutors‘ Office has asked the ACA to ascertain the facts of the case.
It is believed that Mr. Davaa has plans to ask for investigation of other officials who, he will claim,
has caused the state a loss of USD4 billion. Those likely to be named include Prime Minister
S.Batbold, Minister for Justice and Internal Affairs Ts. Nyamdorj, and the President of the Central
Bank, Mr. L.Purevdorj. Mr. Davaa‘s wife has said that he was arrested and sentenced to keep him
silent about many things he had learnt from his association with the Gal Undesten Union. Mr. Davaa
has written in his letter that he supports the civil movement for justice, democracy and peace.
―Officials corroded by corruption‖ pose a threat to all three ideals, he has added.
Source: English.News.mn
MPs WANT CONSIDERATION FOR THOSE FORCED TO PAY BRIBES
The Standing Committee on Justice has decided to discuss in Parliament the draft amendments on
the criminal law relating to some types of corruption. There was consensus that election-related
corruption must be curbed, if not totally removed, but members disagreed on what to do with those
who paid bribes under certain circumstances.
Speaker D.Demberel opposed a provision in the draft that protects someone pleading guilty from
being convicted of giving bribes. The head of the President‘s Office, Mr. D.Battulga, had supported

14. it as ―the present system put pressure on citizens and organizations to give bribes to state
officials‖. Mr. S.Erdene had agreed and added that it is common for officials to threaten and shout
at those who are unwilling to meet their demands for illegal gratification. ―That is why those who
give in should receive some lenience, but such consideration should not apply to those who bribe
officials to get irregularities condoned,‖ he said.
Source: Zuunii Medee
ACA OFFICIALS’ APPEAL TO BE HEARD ON MAY 24
The Ulaanbaatar Court has fixed May 24 for hearing the appeals of the Chief of the Anti-Corruption
Authority, Mr. Ch.Sangaragchaa, his Deputy, Mr. D.Sunduisuren, and the head of its administration,
Mr. U.Altangadas, against their conviction. The court has rejected their plea to be released on bail.
The same court will review on May 20 the decision to acquit another ACA official, Mr. G.Badarch.
Source: Undesnii Shuudan
MPP COUNCIL REJECTS DEMAND FOR RESIGNATION OF MINISTER ZORIGT
The demand by some DP MPs‘ for the resignation of Mr. D.Zorigt as Minister of Mineral Resources
and Energy received another punch last week when the Managing Council of the MPP discussed the
issue and issued a statement summarily rejecting the arguments put forward by those MPs. It said
the Minister had played an important role in finalizing the successful Oyu Tolgoi investment
agreement and also that he bears no individual responsibility for the unavoidable delay in reaching
a decision on the Tavan Tolgoi deposit. The council has forwarded its views to the MPP group in
Parliament.
Source: Unuudur
PEOPLE’S ASSEMBLYMEN TAKE A BREAK
The People‘s Assembly formed on April 22 has decided to take a ten-day recess. Its organizers say
that its 800 delegates -- 200 from Ulaanbaatar and 600 from all the 21 provinces -- left the capital
on Thursday after a final meeting of this phase of the assembly. This was held not in Sukhbaatar
Square, but in the square of the State Academic Drama Theater.
Source: News.mn
STANDING COMMITTEE APPROVES THREE NEW CONSULATES
The Standing Committee on Security and Foreign Policy approved on Tuesday a proposal to establish
consulates in San Francisco, Osaka, and Hong Kong. Earlier Foreign Minister G.Zandanshatar had
reported that MNT415 million would be needed annually to maintain the office in San Francisco,
MNT483 million in Osaka, and MNT363 million in Hong Kong, but everywhere, some 40% of the
expenses could be met from the consular revenue. Reacting to a demand to close down
Representative Offices in places where few Mongolians ever went, he said only two, in Laos and
Bulgaria, would qualify as such but they served Parliamentary and Government interests. The
income in both met their expenses, so there is no need to close them down.
Source: News.mn
FOREIGN MINISTRY WANTS MORE STAFF, HIGHER SALARIES
The Ministry of Foreign Affairs and Trade has asked the Standing Committee on Security and Foreign
Policy to sanction more staff for it, given the increase in its work in recent times. Minister
G.Zandanshatar detailed to the MPs all the international agreements and conventions Mongolia has
signed, the international organizations where Mongolia is an active member, and the laws and
protocols on foreign relations Parliament has passed, to show how the volume of work has grown
enormously bigger, but the ministry works with the same number of employees as it did in 1990.
Their salary also is not commensurate with their high level of education and considerable language
skills. The Ministry cannot function properly and discharge its responsibilities if it does not increase
its staff strength and also change its structure, including salary levels. Members of the committee
shared his concern and agreed to discuss further his proposals for more staff and higher salaries,
and also to bring the Institute of Foreign Relations under the Ministry.
Source: Udriin Sonin
HEARING OF KHURTS’S APPEAL POSTPONED TO JUNE 21
The hearing of the appeal of Mr. B.Khurts, head of Administration at the National Security Council,
has been postponed to June 21 as the judges in the London court found it will take more time to
get ready all the documents received from Mongolia. Mr. Khurts is appealing against his extradition

15. to Germany on a charge of kidnapping a Mongolian citizen from Europe in 2003.
Source: Unuduur
SULFURIC ACID ISSUE HOLDING BACK DECISION ON COPPER SMELTER
One reason for the lack of progress in setting up a copper smelter, as resolved by Parliament, is
that there has been no agreement among specialists on what to do with the sulfuric acid that is
released during the refining process. A working group of the Ministry of Mineral Resources and
Energy submitted two different proposals to the Government, but both were found unsatisfactory in
their approach to this environmentally sensitive issue.
Source: Ardiin Erkh
MONGOLIANS LAP UP THE NOVELTY OF LUXURY
In the 13th century, Mongol emperor Kublai Khan and his harem sported silk gowns, fur cloaks and
jewel-encrusted head ornaments at their home -- the legendary pleasure palace in Xanadu. Today,
latter-day khans are again stepping out in some of the world‘s finest luxury fashions as Mongolia‘s
minerals-fueled economy boosts disposable income for the country's nouveaux riches. Louis Vuitton,
Emporio Armani, Burberry and Hugo Boss have led the charge of high-end shops opening in the
sprawling capital Ulaanbaatar, the flashy stores jarring with the city's Soviet-era apartment blocks
and shantytowns.
"The domestic fashion industry is growing with the Mongolian economy and people have more
money to spend," Hugo Boss shop manager Siizhuugiin Nasantulga said. "They would rather spend it
here than go on overseas shopping trips." Landlocked Mongolia, one of Asia's poorest countries, has
seen its per capita GDP rise to USD3,300 as foreign mining giants have come calling to tap into its
vast deposits of everything from gold to coal. The economy is expected to grow at a healthy eight
percent this year and the country's currency advanced 10 percent against the dollar in 2010, making
imports cheaper.
With an influx of new money and the number of millionaires growing, members of the upper-income
set have sought to outdo each other with name-brand fashion and fancy cars. ―Mongolians have
great fashion sense and they are always looking for the highest quality products," says Nasantulga, a
strapping 28-year-old with fluent English he learned while studying business overseas. "People love
to show off their cars and they take pride in dressing as well as they possibly can." Luxury lifestyles
have been a foreign concept for most of Mongolia's modern history. It was a communist country for
nearly seven decades until a 1990 democratic revolution led to multiparty politics and a market
economy.
Most of the luxury shops in Ulaanbaatar are located in the Central Tower, a new office building
adjacent to Sukhbaatar Square, where the modern Mongolian state was established in 1921. In the
VIP room of the Louis Vuitton store, big spenders can lounge on white leather couches as they check
out USD1,100 shoes or USD800 sunglasses. Outside, luxury cars ply potholed streets. Flashy SUVs --
Toyota Land Cruisers, Hummers and Land Rovers -- stand snarled in traffic jams with models from
Mercedes-Benz, Lexus and BMW. Beyond the capital, a few Mongolians are taking to the roads in
custom-built Mercedes-Benz Zetros trucks, packed with ultra-modern features like flatscreen TVs,
bidets and even kitchens.
Read more…
While the upper crust flaunts its wealth, most working class Mongolians barely make ends meet by
toiling in mines, herding livestock, driving taxis or selling imported goods from China. The average
office-worker salary in the capital is around USD250 a month and the minimum wage just USD115
per month. Foot traffic in luxury shops is therefore understandably low -- but ready to spend. "We
have relatively few customers but those that shop buy a lot," explains Armani manager Batbekhiin
Batkhuu. "For now the most important part of our business plan is establishing brand awareness. We
need to educate people on fashion and which labels are the best."
The sizzling real estate market in Ulaanbaatar is helping to make these increasingly luxurious
lifestyles possible. When property markets were privatized in the late 1990s, flats were readily
available for around USD5,000, says Belgian real estate investor Chris De Gruben, Managing Partner
of M.A.D. Mongolia. Those same apartments now sell for around USD90,000. "These apartments
form an important part of the economy. Locals can sell their apartment and use the cash to start a
business and get a kick-start in life. It allows people to move forward," Mr. De Gruben said.
New apartments and penthouses are beginning to appear. In the prestigious Zaisan area in the south
of the city, modern units start at around USD2,000 per sq. m. The city's priciest digs are downtown
in the sail-shaped Blue Sky building, where penthouses are advertised at USD8,875 per sq. m. ―As
soon as people start getting money, they want to display their wealth," Mr. De Gruben said. "You

16. can see ostentatious displays of wealth anywhere in the world but in a place like Mongolia it's more
apparent because it's still surrounded by high levels of poverty."
Some Mongolian-made luxury goods are even making their way overseas. The best-known is Gobi
cashmere, which sells sweaters, scarves, hats and coats made from the soft fur of Mongolia‘s 20
million goats. "Demand for Mongolian cashmere is growing worldwide and we have a great
opportunity to market cashmere products," says Mr. Batkhuu, the Armani representative. "We can‘t
quite compete with Italy for the fashion king title but Mongolia can still make a name for itself."
Source: AFP
CLEAN WATER A DIFFICULT CHALLENGE IN MONGOLIA
Mongolia is a country of contrasts – in summer boiling hot, in winter freezing cold; in the north
damp, in the south bone dry. One million of its three million inhabitants live tightly packed
together in the capital Ulaanbaatar, while the rest of the huge country is largely populated by
nomads and their cattle. Providing a clean supply of drinking water across the entire country is a
difficult challenge – beginning with the need to lay freeze-proof water pipes over an area of 1.5
million square kilometers. The people in the countryside therefore use water from rivers, or from
wells that they dig themselves. But these traditional ways of obtaining water are reaching the limits
of their capacity.
In recent decades the periods of rain during the summer months which replenish the reserves of
groundwater have become infrequent. They have been replaced by heavy storms unleashing
torrents of rain that runs off rapidly without soaking into the ground. At the same time, demand for
water has risen with the rapid growth in the country's population. "Providing drinking water is
becoming more and more difficult. To create a reliable supply in the long term you have to take
many different factors into account and find out how they influence each other," explains Dr. Buren
Scharaw from the Fraunhofer Application Center System Technology AST in Ilmenau.
Born in Mongolia, he has been working for many years on the project entitled "Integrated Water
Resources Management for Central Asia: Model Region Mongolia", known also as MoMo. Project
partners include the universities of Heidelberg and Kassel, Bauhaus University Weimar, the
Helmholtz Center for Environmental Research, the Leibniz Institute for Freshwater Ecology and
Inland Fisheries and various private-sector enterprises. The model region under study by the
research scientists is the catchment area for the Kharaa River and Darkhan, a city of 100,000
inhabitants.
Read more…
Since the start of the project, in 2006, Mr. Scharaw has traveled back to his homeland several
times. He has examined the quality of the water from public and private wells along with the
distribution network, measured the energy consumption of pumps, and investigated the
effectiveness of the sewage system. All of the data he has meanwhile collected has been fed into
the computer models developed at Fraunhofer AST. "Our HydroDyn water management solution
makes it possible for the first time to visualize the quality as well as the quantity of water
resources and to model their future development," the scientist explains.
There is plenty of scope for improvement: the water pumps consume lots of energy, the water
pipes are in need of repair and nearly half of the drinking water is lost on its way to the consumer
because of leaks. Many gers have their own wells, but the water is often contaminated with
bacteria from latrines. What can be done? "Having collected data and produced models we are now
preparing proposals that make sense in economical and ecological terms", says Mr. Scharaw. His
team has developed a software program for the purpose which can determine how the water supply
can be sustainably secured using less energy.
The Fraunhofer research scientists have also developed a measuring system for locating leaks. Small
sensors detect any drop in pressure in the pipes, enabling leaks to be localized with relatively high
precision. Once the leak has been found, that section of the pipe can be repaired. To reduce
contamination in the water supply, and to increase the efficiency of the sewage system, the MoMo
scientists are now building a test sewage plant which contains microorganisms in high
concentration: "We expect this test facility to deliver good results also during the cold season when
the microorganisms are less active. The findings can then be transferred to a future full-scale
plant."
In three years' time, when the MoMo project has been completed, the experts intend to present the
government administration in Darkhan with a catalogue of measures which will show how the water
supply and sewage system can be efficiently and cost-effectively secured. Mr. Scharaw regards it as
one of his major successes that he prompted the Mongolian authorities to discontinue mining
operations in some regions of the Kharaa catchment area – an achievement that extends far beyond

17. improving the drinking water supply in Darkhan.
Source: Science Codex
180,000 TOILETS TO BE DISINFECTED WITH MCF FUNDS
MNT1.5 billion from the Millennium Challenge Foundation will be spent on a program to neutralize
soil pollution in Ulaanbaatar, to be implemented by the Mayor‘s Office throughout June. Surveys
have revealed that toilet waste has severely affected the soil quality in the city, especially in ger
districts where 60% of the people live. Some 180,000 ger district household toilets will be treated
with disinfectants in the program, with officials of the State Specialized Inspecting Agency, and
doctors and nurses from the district health centers monitoring the work.
Source: Unuudur
GER DISTRICTS SHOW NEED TO BETTER DISTRIBUTE NATION’S WEALTH
It is a supreme irony in a country once known as the land without fences. Stretching north from the
capital Ulaanbaatar, an endless succession of dilapidated boundary markers criss-cross away into
the distance. They demarcate a vast shantytown that sprawls for miles and is now estimated to be
home to a quarter of the entire population of Mongolia.
More than 700,000 people have crowded into the area in the past two decades. Many are ex-herders
and their families whose livelihoods have been destroyed by bitter winters that can last more than
half the year; many more are victims of desertification caused by global warming and overgrazing;
the United Nations Development Program estimates that up to 90% of the country is now fragile
dryland. With limited education, few transferable job skills and often no official documents, most
end up simply waiting, getting angry with the government and reminiscing about nomadic lives
past. Many take to alcohol.
"More and more people arrive every year and there are so few jobs available," said Davaasambuu
after queuing for 30 minutes to collect his family's daily drinking water from one of 500 water
stations that dot the slum. "Nothing has changed in my neighborhood since the last election [in May
2009]. There have been no new jobs or improvements. One little bridge has been added in the last
four years, that's it," he said.
The basic infrastructure is not in place to support such a large population, which expands by tens of
thousands of people a year. Many of them still live in a ger – the traditional round felt tent they
arrived with from the countryside and which gives the districts their name and also their sense of
impermanence.
Read more…
Davaasambuu's is not an easy life. The area around his home is falling into disrepair with rubbish
piling high. Nightly fights between drunks are getting worse. But at least he can take comfort in the
fact that he now has a job with which to support his family, unlike many of his neighbors. "Not
everyone in the ger district is dirt poor – some are doing OK – but it is a hard life," said Troy Tvrdik,
whose educational and vocational training NGO, Flourishing Future, is based in the district. "Even
when it is minus 40, you still have to go out to get water."
A World Bank report published last year highlighted the plight of ger district residents, most of
whom have limited access to electricity and no running water, sewage or central heating. The
report found that during the long winter, when temperatures plummet into the minuses for up to
eight months, poorer residents are forced to spend upwards of 40% of their income on wood or coal
for heating, which adds to their financial burden as well as to the heavy clouds of pollution that
hangs over the city. Roads are simple, unpaved mud paths and streets have no signs, streetlights or
even names but are merely the gaps naturally placed between two rows of tents or shacks set up by
newly arrived migrants without any input from the government.
"The quality of the infrastructure is a major problem," said Mesky Brhane, a senior urban specialist
with the World Bank, who helped produce last year's report. "[People] are clearly frustrated by the
lack of infrastructural improvements by the government.‖ Protesters, many from the ger districts,
have repeatedly descended on the parliament over the past few years, including a large protest last
April, demanding a better distribution of the country's mining wealth.
Despite the money pouring into the country from the mining of natural resources – Mongolia has a
population of just 2.7 million yet has the world's largest mining exploration project and, in Tavan
Tolgoi, the world's second largest coal deposit – little of that money makes its way to the residents
of the shantytown. Even in the more central ger areas, where many residents have lived for over a
decade and built more permanent wooden or brick houses, running water and central heating are
unavailable and the streets remain dark, mud roads with open sewage streams and rubbish piled
high.

18. Another big concern is the level of unemployment. While tens of thousands of rural migrants flood
the city every year looking for work, setting up their tents at the point where last year's migrants
stopped, unemployment remains a critical issue, especially in the ger districts where the
unemployment rate can be as high as 62%, compared with 21% in the more developed areas of the
capital.
The Mongolian Government has officially declared 2011 "employment support year" in an effort to
create 70,000 new jobs, but so far few signs of improvement have been visible. "One of the biggest
problems is that there is very little economic activity within the ger districts due to inadequate
infrastructure – everyone has to leave the area to work," said Brhane. "One new project the World
Bank is working on is looking at ways to generate local economic development so people can live
and work there. It would make a tremendous difference to people's lives," she said.
"We have 12 people in our family and only two have work," said Dashkhord, 50. She and her family
moved from the countryside five years ago after one harsh winter took away their entire herd of
100 animals. They arrived with next to nothing and simply pitched their tent on the outskirts of the
sprawling shantytown. "The first year was really difficult. It took me over a year to find my first job
– cleaning at a hotel. I spent the first few months simply collecting plastic bottles to sell," she said.
Today Dashkhord earns £60 a month as a cleaner at a supermarket, a far cry from her pastoral
background, while her eldest daughter looks after children for a wealthier family. "My other
daughter is also looking for a job helping look after kids but it is hard since there are so few jobs
and they are so far away – also, all the job ads now say you must be over 1.7 meters [5ft 6in],
beautiful and well educated," she said. "For me, I wish we stayed in the village, but for my
daughter and grandkids it is better here," said Baasankhuu, 63, who moved to a ger district three
years ago and whose £40 a month pension is barely enough for her and her family to live on. "My
grandchildren can get a better education in Ulaanbaatar and maybe have a chance at a real job and
future."
Source: The Guardian
NO LEGAL GUARANTEE FOR MEDIA FREEDOM, SAYS NGO LEADER
Mr. Kh.Naranjargal, Head of Globe International, has regretted how deliberate confusion has
hindered freedom of the media in Mongolia in recent years. The differences between citizens‘ right
to information and the media‘s freedom to operate without political pressure have been allowed to
be blurred. The first is almost a precondition for media to access information about state
organizations, but the Ministry of Justice is in no hurry to make it a legal right, insisting that a law
granting media adequate freedom is already there. In actual practice, however, journalists‘
professional work is governed by the criminal code which calls for imprisonment for ―providing false
information‖. Since two journalists were sent to jail, the media have been self-subdued, as their
capacity to unearth facts is impaired with no right to information. The inability to verify facts
makes them liable to be charged with publishing wrong information.
Source: Zuunii Medee
ANNOUNCEMENTS
GLOBAL ALLIANCE PARTNERS CONFERENCE, MONGOLIA INVESTMENT CONFERENCE,
ULAANBAATAR, MAY 24-26
Eurasia Capital is hosting the Global Alliance Partners Conference and the Mongolia Investment
Conference on May 24-26 in Ulaanbaatar. Through these back-to-back events, Eurasia Capital seeks
to draw attention of international and regional investors to Mongolia and its diverse range of
investment opportunities. Mongolia has recently experienced impressive economic growth, become
the best-performing stock market globally and received record levels of foreign investments. As a
result of pro-business reforms pursued by the Government, this resource-rich country has emerged
as an attractive investment destination for global strategic and portfolio investors. The two events
are intended to increase the awareness of the international investor community about emerging
opportunities in this new Asian resource powerhouse.
High level government officials, representatives of local business groups, international financial
institutions, CEOs of mining and non-resource companies will be among the speakers at the 2nd
Annual Mongolia Investment Conference on May 25. They will
 provide information on the current market environment and outlook for the Mongolian
economy
 offer insight into industries that are attracting growing interest

19.  assess the risks and rewards
 evaluate the comparative advantages of various business opportunities
 present a clear understanding of opportunities worth investing in.
To download the preliminary agenda please click here http://enews.eurasiac.com/cgi-
bin19/DM/t/hIEW0CUnT0Ddg0PLK60EM. For more information and applications please contact: Ms.
Zhyldyz Sadyralieva by email: zhyldyz.sadyralieva@eurasiac.com or phone: +976 9906 1673.
___________________________________________
TRADE MONGOLIA 2011, ULAANBAATAR, JUNE 3
The State Property Committee, the Mongolian Stock Exchange, the Financial Regulatory Commission
and Mongolian Mining Exchange NGO will be holding Trade Mongolia – 2011 on June 3 in
Ulaanbaatar. The aim of the forum on capital and securities markets is to attract more domestic
and foreign investors to the Mongolian capital market and to set up a platform where key players
will be able to network. Business Council of Mongolia is an official Supporting Organization for the
forum.
More information can be had by calling Tel/Fax: 976-70116009; Mobile: 976-99081050, 91927088,
88097675; E-mail: info@trademongolia.mn, buyanaa@trademongolia.mn; and at
www.trademongolia.mn.
___________________________________________
"MONGOLIA: CAPITAL RAISING AND INVESTMENT", ULAANBAATAR, JUNE 6-10
This annual Frontier Securities conference provides a perfect opportunity for those interested in
exploring the latest developments in Mongolia's business environment to receive direct information
from key sources. Investors will be able to discover lucrative opportunities and Mongolian
companies will learn of various methods of raising capital abroad. Senior managers from the Korea
Stock Exchange, the Hong Kong Stock Exchange, the Australian Securities Exchange, Deutsche Börse
AG and Tokyo AIM will share their knowledge and insights regarding capital raising with the
audience.
The other major theme at the event will be investment opportunities in Mongolian mining, real
estate and other expanding sectors. Confirmed participants include investment banks and investors
such as BOCI, CICC, Citigroup, J.P. Morgan, Quam Asset Management Fund, as well as professional
entities such as Hogan Lovells, American Appraisal, Moody's Investors Service and CRU International.
_________________________________________________
CORPORATE GOVERNANCE FORUM, ULAANBAATAR, JUNE 13
The Fourth Annual Corporate Governance Forum, organized by the Corporate Governance
Development Center, will bring together Mongolian business leaders and policy makers to identify
and stress the linkages between corporate governance and capital market development. It will also
present an open platform to discuss a number of topical issues relevant to the current state of
corporate governance reform, and to help reach a consensus on the necessary policy and corporate
level reform agenda. The forum will end with a resolution and an action statement by the
participating business leaders on policies and legal and regulatory frameworks to remedy the
current corporate governance challenges in Mongolia.
The key discussion points would be:
 Country experiences on the role of stock exchanges in corporate governance
 Corporate governance reform process: progress and challenges for State-owned enterprises
 Corporate governance in the banking sector: Impact of the new Banking Act, issues in CG
assessment.
Business Council of Mongolia is an Organizing Partner of the event. Requests for registration should
be made to Ms. Tsend-Ayush - Tel: 99105111, Email: tsendee51@yahoo.com or tsend-
ayush.t@cgdc.org.mn.
________________________________________________
COALTRANS MONGOLIA, ULAANBAATAR, JUNE 21-22
Coaltrans Mongolia will be a unique opportunity to see and understand at first hand the
development of one of the last remaining coal frontiers. It will address:
 Spectacular growth prospects for the Mongolian economy, coming on the back of the
development of the country‘s wealth of mineral assets with reserves estimated in value of USD1.3
trillion.

20.  Opportunities that many large scale coal investments offer – in particular the Tavan Tolgoi
coal deposit containing 6.4bt of coking and thermal coal which will be privatized.
 The prospects for exports of 25-40mt per annum of coal into China and in the longer term
through Russia to Pacific markets.
 The considerable challenges facing Mongolian transport infrastructure in delivering coal
exports across the border into China‘s burgeoning steel industry and power sector.
 The challenge of operating coal mines in extreme weather conditions as well as the scarcity
of water supply.
Among the speakers will be:
 D. Zorgit, Minister of Mineral Resources and Energy
 B.Enebish, Executive Director, Erdenes MGL
 D.Batkhuyag, Chairman, The Minerals Authority of Mongolia
 G.Battsengel, Chief Executive Officer, Mongolian Mining Corporation.
Business Council of Mongolia is a Supporting Organization of the event.
Enquiries about speaking opportunities are to be addressed to Gerard Strahan at
gstrahan@euromoneyplc.com, and about benefits available in relation to sponsorship opportunities
to David-Griffiths, at cdavid-griffiths@euromoneyplc.com.
________________________________________________
“MM TODAY” on MNB-TV, Fridays at 21:15
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 for 21:15 tonight. Tune in to watch this program that reports stories from today‘s BCM
NewsWire.
___________________________________________
“BSPOT” on B-TV, Monday to Friday at 21:30
BTV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every
evening from Monday to Friday at 21:30, taking most of the stories from the BCM NewsWire.
___________________________________________
NEW POSTINGS ON BCM WEBSITE'S 'PRESENTATIONS' AND 'MONGOLIA REPORTS'
‗Presentations‘ from BCM‘s 4 monthly meetings in 2011, from the very successful Mines and Money
Hong Kong‘s ‗Mongolia Investment Summit Morning‘ on March 25, and from Voyager Resources‘ CEO
in both English and Mongolian at a March 16 MICC-sponsored gathering as well as ‗Mongolia Reports‘
including the Polit Barometer-May 2011 from Sant Maral Foundation and the U.S. Embassy
Mongolia‘s Commercial Section‘s ―2011 Mongolia Investment Climate Statement‖ are among the
presentations posted on BCM's website (www.bcmongolia.org) in the "Resource, Presentations" and
―Resource, Mongolia Reports‖ sections for your review.
We are now posting some news stories and analyses relevant to Mongolia on the BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until Friday to put them all together in
the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will
incorporate items that are already on the home page, so that it presents a consolidated account of
the week‘s events.

21. ECONOMIC INDICATORS

22. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
April 30, 2011 *5.5% [source: NSOM]
*Year-over-year (y-o-y)
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]
CURRENCY RATES – May 19, 2011
Currency Name Currency Rate
US dollar USD 1,220.74
Euro EUR 1,738.09
Japanese yen JPY 14.91
British pound GBP 1,974.97
Hong Kong dollar HKD 157.02
Chinese Yuan CNY 187.68
Russian Ruble RUB 43.60
South Korean won KRW 1.12
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.