22.04.2011, NEWSWIRE, Issue 164

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 164, April 22 2011
NEWS HIGHLIGHTS:
Business:
 Prophecy Resource sees its fortunes inextricably linked with Mongolia’s;
 MIAT to fly twice a week to Hong Kong from June 2;
 Rio Tinto regains single 'A' status from major credit rating agencies;
 Erdene provides project updates and reports year-end financial results;
 Voyager Resources lists Khongor highlights;
 General Mining Corp. preparing for drilling at potash project;
 Kerry Gold Mines appoints new CEO and MD;
 Haranga Resources appoints Chief Operating Officer;
 Metals X acquires 17.1% interest in Alamar Resources;
 Origo in Kincora deal with Brazilian Diamonds for a reverse takeover;
 C @ Limited has option to acquire Mongolian coal asset;
 Khan Resources applies to Ontario court regarding ARMZ litigation;
 Bodi Group and Worley Parsons form alliance;
 Rosenblatt & Co. allies with Ulaanbaatar law firm;
 MCA team studies how Energy Resource is building its road;
 Eurasia Capital opens three new Mongolian branch offices.
Economy:
 Hong Kong firms explain securities market;
 SPC chief hints shares to businesses may not be sold immediately;
 Rush to own or buy companies to claim shares;
 PM among those blamed most by National Audit Office;
 Some social and economic data released;
 Success stories in Mongolian investment keep growing;
 Minister promises better use of Employment Support Fund;
 Official explains draft law on employment support;
 MPs do not want Government control over raw material exchange;
 Investors need to be bold to accept Mongolia’s challenge;
 Foreign firms find the times “exciting” in Mongolia;
 Mongolia targets global mining role as investments soar;
 Royal Bank of Scotland index taps Mongolian growth potential;
 Austrian business team coming in July to study investment opportunities;
 Master plan to introduce single window for foreign trade;
 Dorngobi to attract foreign investment, hopes forum;
 More foreigners coming to Mongolia;
 Mineral law amendments put human security, ecology before profit;
 Mining fatalities rise;
 HKEx's allure, and some quirks, for resource firms;
 Standard & Poor’s sounds alarm on U.S. debt;
 China's Wealth Fund chief warns on global growth;
 China imposes strict price controls on basic consumer items;
 China’s first-quarter GDP grows 9.7%, inflation 5.4%.

Politics:
 Mongolia halts coal movement, after China closes border post;
 Herders ride into capital to demand elections in protest over foreign miners;
 Prime Minister’s income rises, President loses car;
 Top bankers being investigated;
 8 senior appointments canceled because of irregularity;
 Communication services spread to hitherto unconnected areas;
 DP MP wants coalition dissolved to provide for “alert opposition”;
 Wide participation at National Forum on Judicial Reform and Justice;
 Khuvsgul Governor spends as he wants;
 Film made on man who duped President, and stole MNT90 million;
 Landlocked countries reaffirm right of access to and from sea;
 Uranium policy shows Mongolia's diplomatic savvy;
 China’s influence on car design for global sale accelerates.
*Click on titles above to link to articles.
BCM MONTHLY MEETING NOTICE
BCM‘s next monthly meeting for members will be Monday, April 25, 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:
- Ch.Otgochuluu, Director, Economic Policy and Competitiveness Research Center – ―Introduction of
Mongolia in World Competitiveness‖;
- G. Temuulin, Deputy Director, Erdenes Tavan Tolgoi - ―Briefing - Erdenes Tavan Tolgoi Project‖;
- Graeme Hancock, Senior Mining Sector Specialist, The World Bank – ―Mining in Mongolia:
Challenges and Opportunities‖.
A networking reception will be held for all attendees immediately following the business portion
of the meeting in rooms “Khuvsgul” and “Hustai”, also on the 2nd floor, Kempinski Hotel Khan
Palace.
The City Club bar membership cards will be handed out at the meeting for all paid individual
BCMers.
BUSINESS
PROPHECY RESOURCE SEES ITS FORTUNES INEXTRICABLY LINKED WITH MONGOLIA‟S
Mr. John Lee, CEO of Prophecy Resource Corp., has asserted that his company‘s fortunes and
Mongolia‘s are inextricably linked. ―We really care for Mongolia and think of Mongolians first,
simply because we know we cannot prosper if Mongolia itself does not prosper. We have to grow
together with this country,‖ he has said in an interview. Asked about conditions in the country, he
said ―infrastructure improvement takes time and cannot come overnight‖. In any case, Prophecy
Resource is ―very fortunate that it does not need to use the overloaded‖ Mongolian railway system
much to transport the coal from its Ulaan Ovoo deposit. As regards its other asset, ―our plans for
the Chandgana coal is not to sell it, but to use it in the power plant we expect to build at the mine
site. We shall need to build transmission lines, but not roads.‖
Commenting on the business environment in Mongolia, Mr. Lee said ―every country has its own risks
and rewards‖ and Mongolia is no exception. ―Investors do not mind risks that are understandable,
measurable and predictable‖, and in all this he thinks the legal framework in Mongolia is ―quite
sound‖, with some improvements needed in issues relating to investment agreement, and ―some of
the steps leading to commissioning are not so clearly defined‖. Foreign companies extracting
mineral resources always have ―some uncertainty about what the Government response would be‖.
Mr. Lee said, ―We‘ve made it very clear to the Mongolian Government that we want to be its

partner in growth and are committed to working for a successful Mongolia. We are subsidizing some
local production to shift to Erdenet and the power to be produced at Chandgana will first be given
to Mongolia before being exported. I think the initial hesitation and uncertainty have now passed,
and we are developing a professional rapport with people in the ministry. We are confident the
understanding will grow stronger, and the relationship will go forward. We have found that the
Government listens to our concerns and plans.‖
The company, he said, stresses local employment, and over 90 per cent of its staff are Mongolian,
including the chief geologist and all engineers. Apart from creating employment opportunities, ―we
try to improve the infrastructure, and have allocated over USD300,000 for community programs. We
support hospitals and schools in Selenge province, grant scholarships to university students, and
hire interns from universities. And we shall be paying 25 per cent tax on our profits as we go into
full steam,‖ he said. Also, the company ―plans to be listed on the MSE as quickly as possible, and
offer shares at a discount to Mongolians.
Source: The Mongolian Mining Journal
MIAT TO FLY TWICE A WEEK TO HONG KONG FROM JUNE 2
Mongolia just got a little bit closer to Hong Kong, partly thanks to the city‘s banking community.
MIAT Mongolian Airlines says it will start flying direct from Hong Kong to Ulaanbaatar. The new
schedule—with flights Thursday and Sunday—will go into effect June 2. MIAT, whose executives
have been talking about the possibility of a direct route for at least a year, says the decision was
driven by the growing business connections between Hong Kong and Mongolia. ―Emerging
development in the mining sector creates a huge interest of foreign investment and mining
associated trade in Mongolia,‖ a MIAT representative said. ―In this regard, there is a potential
demand on business travel between Mongolia and Hong Kong.‖
Hong Kong Exchanges and Clearing Ltd. has made a big push to lure resource firms onto the HKEx
recently, with executives touring resource-rich destinations, including Mongolia. With companies
such as Mongolian Mining Corp. and SouthGobi Resources now listed in Hong Kong, resource-sector
bankers from the city have been making regular trips north to Ulaanbaatar. And starting June 2,
they will be able to do that without having to change planes in Seoul or Beijing.
Source: The Wall Street Journal blogs
RIO TINTO REGAINS SINGLE „A‟ STATUS FROM MAJOR CREDIT RATING AGENCIES
International credit rating agency Standard & Poor‘s has raised its long-term corporate credit rating
on diversified giant Rio Tinto to A- from BBB+. At the same time, it affirmed the A-2 short-term
corporate credit rating, indicating that the outlook for Rio Tinto was now stable. Prior to this
upgrade, Rio Tinto‘s credit rating was assessed by S&P as BBB+ for long-term debt and A-2 for short-
term debt, with a positive outlook.
Rio Tinto‘s CFO Guy Elliott said the decision to upgrade Rio‘s credit rating acknowledged the
financial strength of the group. ―Rio Tinto has now regained single A status from all major
international credit rating agencies, thus achieving a key corporate target. We will retain a prudent
balance sheet, which will allow us to continue to invest, as appropriate, in our first-class growth
projects and in other opportunities as they arise,‖ Mr. Elliot said.
Source: Mining Weekly
ERDENE PROVIDES PROJECT UPDATES AND REPORTS YEAR-END FINANCIAL RESULTS
Erdene Resource Development Corp. has listed the following as highlights in its latest update on the
company's principal projects in conjunction with the release of its year-end financial results.
- Drilling commences on Khuvyn Khar copper discovery
- Zuun Mod resource report initiated by Runge (Minarco-MineConsult) incorporating new results
- Copper-gold drill targets established at Nomin
- Aggressive drill program underway by Xanadu on Galshar coal project; Xstrata Alliance coal
evaluations continue.
Following the recent drilling results indicating higher molybdenum and copper grades in the South
Racetrack deposit at Zuun Mod, a new NI 43-101 compliant resource estimate is now being
completed by Minarco Mine Consult. Anticipated to be delivered during the second quarter, this
new resource estimate and the recommended follow-up will be the basis for the next stage of
development.
Drilling commenced on April 5 at the Khuvyn Khar porphyry copper project as part of a 4,000-meter
exploration program. A geophysical program over the Nomin copper-gold prospect was successful in
identifying drill targets including anomalies coincident with the areas of mineralization on surface.

It is anticipated that the target will be drill tested during the second quarter.
Erdene is involved in a comprehensive coal generative and acquisition program in Mongolia that
evaluates numerous prospective metallurgical and high-quality thermal coal deposits. The program
is being fully funded by the company's partner, Xstrata Coal, with whom it is coordinating
operations. On March 8, Xanadu Mines Ltd. commenced an extensive drilling program at its Galshar
coal project. Erdene holds a royalty interest from any coal mined from the property.
Read more…
The Company recorded a loss of USD3,567,559 in fiscal 2010 compared with a loss of USD2,177,057
in fiscal 2009. At December 31, 2010, Erdene had approximately USD8.3 million in working capital,
including that of its controlled subsidiary APM, compared to USD14.0 million at December 31, 2009.
Source: Erdene Resource Development Corp.
VOYAGER RESOURCES LISTS KHONGOR HIGHLGHTS
Voyager Resources Limited has listed the following highlights in a presentation on its 100% owned
Khongor asset.
- Potential world class copper-gold property
- High grade surface oxide zone with 18m at 1.84% copper & 0.43 g/t gold in trenching
- Extensive drill intercepts including 50m at 1.0% copper and 0.3 g/t gold
- High Grade structural zones, including 14.1m at 2.4% copper & 0.64 g/t gold
- Geologically similar to Oyu Tolgoi (3.75 billion tons at 0.98% copper and 0.38 g/t gold).
Source: Voyager Resources
GENERAL MINING CORP. PREPARING FOR DRILLING AT POTASH PROJECT
General Mining Corporation has said in its March 2011 Quarterly Report that preparations are under
way for deep potash exploratory drilling at its 100% owned Uvs project in Mongolia. The project
comprises 5 granted exploration licenses covering more than 2,000 sq. km within the Uvs Nuur Basin
that is considered prospective for bedded and domal (salt diapir) potash deposits as well as for
lithium and potassium brines.
During the 2011 field season, the company plans to drill from 3 to 5 potash exploratory holes to an
average depth of 1,000 meters, targeting bedded potash as a primary exploration target as well as
lithium brines. Negotiations with drilling contractors are currently under way and the company is
also obtaining all necessary approvals to start drilling without delays.
Planning is also under way to continue exploration at the company‘s Khangai Project during the
2011 field season and to follow up on some known copper and nickel occurrences as well as to
investigate gold and lithium brine potential at the company‘s tenements.
Source: General Mining Corporation
KERRY GOLD MINES APPOINTS NEW CEO AND MD
Mongolia-focused exploration and development company, Kerry Gold Mines Limited (KGM) has
appointed Mr. Bill Colvin as CEO and Managing Director. KGM is a privately held company that has
been established by the Kuok Group of Hong Kong to explore and develop mineral resources in
Mongolia. The appointment of Mr. Colvin highlights the company‘s strategy to progress its open-cut
gold and underground copper-gold projects into production.
Source: Kerry Gold Mines Ltd.
HARANGA RESOURCES APPOINTS CHIEF OPERATING OFFICER
Haranga Resources Limited has appointed Mr. E. Tsengelbayar its Chief Operating Officer. A
Mongolian national, Mr. Tsengelbayar has more than 16 years‘ experience in mineral economics and
consulting, mineral asset assessment, mineral project finance and M&A advisory for both the public
and private sector in Mongolia. He joins Haranga Resources from a Mongolian investment bank, and
had earlier worked for both the Mineral Resource Authority of Mongolia and the former Ministry of
Industry and Trade. He previously acted in an advisory role for Haranga and assisted in the
acquisition of a number of the company‘s current projects. Mr. Tsengelbayar will also act as
Executive Director of the company‘s Mongolian subsidiaries.
Source: Haranga Resources Limited
METALS X ACQUIRES 17.1% INTEREST IN ALAMAR RESOURCES
Metals X Limited has increased its holding in Alamar Resources Limited to 17.1% from 3.5% following
its participation in Alamar‘s recent capital raising and acquisition of exciting gold assets in
Mongolia. Alamar has acquired all the issued capital and assets of MRCMGL LLC to make it a wholly

owned subsidiary. Alamar has advised its initial focus is to upgrade and increase production from its
gold assets located within the North Khentei gold belt of Mongolia. This gold belt includes several
historical mines and deposits including the Boroo and Gatsuurt gold mines, Bumbat, Erren, Khargant
and Sujigtei gold deposits.
Alamar‘s two key projects are: Kargana (Blue Eyes) Gold Project (85%), and the Sujigtei Gold
Project (90%). In addition to the gold prospects, MRC holds exploration permits covering the Barglit
Iron Ore Prospect and the Doshin Thermal Coal Prospect. No JORC compliant resources currently
exist at either of the projects. A detailed drilling and sampling program is planned to begin in the
near future to deﬁne JORC compliant resource estimates.
Metals X has said in a statement, ―Following a recent visit to the projects in Mongolia, Metals X
considers the projects to have outstanding potential for signiﬁcant gold discoveries and low cost
production. We are pleased to join with the majority Mongolian ownership in Alamar as a platform
to build a specialist Mongolian focused gold company.‖
Source: Metals X
ORIGO IN KINCORA DEAL WITH BRAZILIAN DIAMONDS FOR REVERSE TAKEOVER
Private equity investor Origo Partners plc has reached agreement with Toronto-listed Brazilian
Diamonds Limited for the acquisition of Origo's interest in Kincora Group. Kincora, a BVI-registered
copper and gold exploration company focused on Mongolia, owns a 100% stake in the Bronze Fox
copper-gold prospect through a Mongolian subsidiary.
Brazilian Diamonds will acquire Origo's 25% stake, the loan and option in return for shares
representing an equity interest in the company of 31-35%. BZD will also provide funding required to
exercise the option immediately on completion of the agreement. The transaction constitutes a
reverse takeover under Toronto Venture Exchange rules.
Origo CEO Chris Rynning said, ―We believe this proposed transaction will enable Kincora to establish
itself as a first-tier copper and gold explorer and consolidator in Mongolia, with Bronze Fox as its
flagship project. Bronze Fox is an advanced exploration project where the initial exploration focus
remains on a known and large copper-gold feature at the surface. The license is over 22,000
hectares and features numerous highly prospective target zones.‖
Source: StockMarketWire.com
C @ LIMITED HAS OPTION TO ACQUIRE MONGOLIAN COAL ASSET
C @ Limited (CEO) has entered into a binding and exclusive agreement with an international coal
developer that has a significant position in the coking and thermal coal industry in Mongolia,
providing CEO with an option to acquire eight highly prospective coal exploration licenses in the
South Gobi, near the Chinese border, and adjoining Ovorhangai province in southern Mongolia. The
licenses in Ovorhangai are close to existing mining operations. The option period commenced on
April 19, 2011 and will continue for a period of 10 weeks, during which time CEO will complete due
diligence on them.
Source: Reuters Key Development
KHAN RESOURCES APPLIES TO ONTARIO COURT REGARDING ARMZ LITIGATION
Khan Resources Inc. last week filed materials with the Ontario Superior Court of Justice on a motion
to dispense with or order substitute service on Atomredmetzoloto JSC (ARMZ) in respect of Khan's
USD300-million lawsuit for damages against ARMZ. The application to the Court follows Khan's
announcement on February 7 that the Russian Ministry of Justice refused to effect service on ARMZ.
The Ministry of Justice cited Article 13 of the Hague Convention that provides that "the State
addressed may refuse to comply only if it deems that compliance would infringe its sovereignty or
security".
Source: Khan Resources
BODI GROUP AND WORLEY PARSONS FORM ALLIANCE
Bodi Group and Worley Parsons of Australia have signed a Strategic Alliance Agreement to work
together on a preferential basis to utilize the strengths of both sides to pursue projects in energy,
infrastructure and construction sectors. Worley Parsons has been providing professional service in
the engineering, procurement, and construction management of various projects throughout the
world for many years.
Source: Bodi Group

ROSENBLATT & CO. ALLIES WITH ULAANBAATAR LAW FIRM
No longer known simply for its unique history and tourism, Mongolia is quickly becoming a magnet
for new investment with its strategic location next to Kazakhstan, Russia and China, substantial
natural resources reserves, and market reforms that puts it at number 73 on Word Bank‘s Doing
Business report, ahead of Greece, Vietnam, Egypt and China. In reaction to the rapid need,
Rosenblatt & Company has launched an office in Ulaanbaatar as of April 1, 2011.
―We are pleased to announce our alliance with the respected Zata Law Firm, and look forward to
assisting clients in our expanding cross-border transactional practice, with a focus on emerging
markets,‖ said Mr. Phillip Rosenblatt, Managing Partner. ―The addition of Batbileg and Yesudei,
leading Mongolian practitioners, to our team, will help us provide top-notch integrated
international advice to key foreign and Mongolian investors on in-bound and out-bound
transactions.‖
The alliance will help to meet the expanding needs of the natural resources, finance and capital
markets sectors. Additionally, as manufacturing and services sectors are expected to grow, the
Mongolian partners look to benefit from Rosenblatt & Company‘s long-term expertise in markets
such as Turkey and Emerging Europe, Egypt and the Middle East and Kazakhstan and Central Asia.
Source: Rosenblatt & Company
MCA TEAM STUDIES HOW ENERGY RESOURCE IS BUILDING ITS ROAD
Officials of the Road Project in the Millennium Challenge Account – Mongolia recently met with an
Energy Resource Company team to find out how they have managed to achieve such quick progress
in constructing a 245-km-long asphalt road from Ukhaa Khudag to Gashuun Sukhait. They asked
detailed questions on overall management of the project, particularly how material and equipment
were delivered to sites, how competent construction contractors were selected, and how their work
was monitored and supervised.
Source: Montsame
EURASIA CAPITAL OPENS THREE NEW MONGOLIAN BRANCH OFFICES
Eurasia Capital Mongolia has received approval from the Financial Regulatory Authority (FRA) to
open branch offices in Erdenet, Darkhan and Dalanzadgad which are capitals of Orkhon, Darkhan-
Uul and South Gobi provinces respectively. It thus becomes the first brokerage firm to launch a
branch network in Mongolia, covering three important regions along with its headquarters in
Ulaanbaatar. It believes that rapid economic growth in Mongolia will have a strong positive impact
on regions where companies and individuals will be increasingly seeking brokerage and investment
banking services.
Eurasia Capital intends to open more offices throughout Mongolia in 2011-2012. Its Chairman, Mr.
Alisher Ali, stressed, "We view it as our mission to bring international standard investment banking
and brokerage services to regions in Mongolia." Mrs. G. Oyunbold, Executive Director, stated, "We
are delighted to have an opportunity to provide access to capital for Mongolian regional companies
and contribute to emergence of an equity culture in Mongolia through our expanding nationwide
branch presence. We are committed to training our local staff in new branches to build their
professional skills and expertise."
Erdenet is the second largest city in Mongolia, with an estimated USD6,400 GDP per capita, the
highest in Mongolia. It is home to Erdenet Mining Corp., Mongolia's largest company, biggest
taxpayer and exporter, and accounts for 13% of the country's GDP. Darkhan is the country‘s third
largest city and home to many Mongolian companies in mining, manufacturing, construction
materials and agriculture products. Dalanzadgad is the fastest growing provincial capital in
Mongolia and by 2015 is expected to enjoy the highest GDP per capita in Mongolia.
Source: Eurasia Capital
SPONSORS
Khan Bank Eznis Airways

Kempinski Hotel Khan Palace Mongolian National Broadcasting
Mongolian Star Melchers
ECONOMY
HONG KONG FIRMS EXPLAIN SECURITIES MARKET
Two conferences organized last week by The Foreign Investment and Foreign Trade Agency (FIFTA)
in Ulaanbaatar generated considerable interest among officials, brokers and dealers. In the first,
Sentinel Group of Hong Kong explained on April 14 all aspects of selling securities at the Hong Kong
Stock Exchange. Next day, it was the turn of KPMG from Hong Kong to offer training on how to
prepare financial statements according to international standards.
Apart from about 200 organizations and entities interested to know more about trading in securities
at the Hong Kong Stock Exchange, the others present on Thursday included senior officials of the
Hong Kong Exchange, Мacquarie Capital Advisers, and the New York Mellon Bank.
Source: Montsame
SPC CHIEF HINTS SHARES TO BUSINESSES MAY NOT BE SOLD IMMEDIATELY
In a recent wide-ranging interview with the Mongolian National Broadcasting Channel, Mr. D.Sugar,
Chairman of the State Property Committee (SPC), has said each of the 53,336 local business entities
will get 28,123 shares in Erdenes Tavan Tolgoi, but ―sale of these shares may be held back, as our
consultants say 10% is too high a figure to be distributed that way‖. Their concern is that ―so many
shares put cheaply into the market could affect the general share value, as they can be privately
traded before offered on the secondary market‖, he said. He has heard that deals are being made
to acquire small companies so as to claim shares at a cheap price, and said, ―This is not how we
intend things to go and I warn companies acquiring small companies that they are taking a big risk.
Several authorities will check everything thoroughly. Any suspicious transaction will mean
cancellation of the shares issued.‖ He also advised the selling companies ―to be patient‖, as these
shares will be ―more profitable in the long run than opting for quick money now‖.
Mr. Sugar rejected any suggestion that politicians put pressure on the SPC. At one level it is true
that ―all decisions are in fact taken at the political level, as it is politicians who are in Parliament
and in government‖, and Mr. Sugar admitted it will be correct to say ―just 5 Ministers are involved
in taking all major decisions‖ on Tavan Tolgoi. ―That is the way it works and it has to be so as it is
not possible to call a Cabinet meeting every day,‖ he said, explaining that accordingly the
Government set up a working group of 5 Ministers headed by the Prime Minister to work on the job.
―We report to them, but the Ministers do not tell us what to report, and a charge of political
interference can be made only if someone pressures us to include or omit any specific candidate.
Nothing like that has happened so far, but I can‘t say what will happen in the future.‖
Source: The Mongolian Mining Journal
RUSH TO OWN OR BUY COMPANIES TO CLAIM SHARES
Ever since it has been clear that businesses fulfilling certain conditions will be eligible to buy cheap
shares in Erdenes Tavan Tolgoi, there has been a spate of advertisements in newspapers and on
radio and TV offering to arrange for registration certificates to show that a company was doing
business on the cut-off date. Usually this ―mediation service‖ costs anything up to MNT800,000.
Advertisements seeking to buy a company are also common. Offices that issue the relevant papers
are full of people and much money is changing hands to show that a company was registered on a
certain date and has no unpaid taxes.

Source: Zuunii Medee
PM AMONG THOSE BLAMED MOST BY NATIONAL AUDIT OFFICE
Prime Minister S.Batbold and Minister for Mineral Resources and Energy D.Zorigt are among those
the National Audit Office has blamed most for accounts irregularities and faulty reporting in
Ministries and Agencies under them. The audit has found many instances of incorrect reporting,
inflated expenses, failure to record income, diversion of budget money, unauthorized spending, and
issue of bad loans.
Among the others blamed for the way accounts have been kept in organizations under them are
Ministers for Foreign Affairs G.Zandanshatar, for Road, Transportation and Urban Development
Kh.Battulga, and for Food, Agriculture and Light Industry T.Badamjunai. The auditors have also
expressed displeasure at the way things functioned under the Chief of the Financial Regulatory
Authority, Mr. D.Bayarsaikhan, and the Secretary of the National Security Council, Mr.
Ts.Enkhtuvshin.
The audit was satisfied with the performance of organizations under Speaker D.Demberel, Ministers
for Defense L.Bold, and for Education, Culture and Science Yo.Otgonbayar, the Chief of the Human
Rights Commission, the Chief of the State Service Council and the Judge General of the Supreme
Court.
Source: Ardiin Erkh
SOME SOCIAL AND ECONOMIC DATA RELEASED
Unemployment:
The number of job seekers registered in Social Welfare and Labor Offices all over the nation
reached 40,800 in March. This was 3,649 or 9.8% more than in the same period in 2010. Of them,
53% had held a job before while 47% had no experience.
Altogether 11,600 citizens registered themselves in the first three months of 2011, while the names
of 2,600 were struck off for failing to show they were actively seeking jobs. Also, 6,500 got jobs
through the employment office. Of the total registered unemployed, 22,500 are between 16 and 34,
19.5% have post-school diplomas while 0.6% did not graduate from school.
Budget, foreign trade:
The figures indicate increased mineral resources exploitation has begun to show a positive impact
on the economy. The budget deficit has turned into a surplus at the end of March. Revenue,
including aid, stood at MNT925.4 billion, while expenses, including loan repayment, totaled
MNT821.5 billion, making for a surplus of MNT103.9 billion. Turnover of trade with 101 countries
reached USD1,830 million, with exports accounting for USD742.1 million and imports for USD1,087.8
million.
Source: News.mn
SUCCESS STORIES IN MONGOLIAN INVESTMENT KEEP GROWING
The Mongolian development profile is not without its challenges. Logistics, both rail and longer
term for pipelines, call for thousands of kilometers of infrastructure to be built. Maintaining
stability across a very young political system of only 20 years is paramount. And managing the
overwhelming dependence on a key customer – China – that last year accounted for 80% of exported
goods may not be without some volatility going forward.
Managing the risks is part of the Mongolian investment story and the success stories keep growing.
This week a company named Brazilian Diamonds on the TSX (renamed Kincora Copper) is acquiring
one of Ivanhoe‘s former top 3 high priority targets called Bronze Fox along the world-class Oyu
Tolgoi copper belt through an RTO. The known deposit is in the right location (along the Chinese
border and within proximity to existing rail), backed by the right team who understand the
Mongolian political landscape (international and on-the-ground experts in Ulaanbaatar), and in the
right commodity (copper, feeding China‘s insatiable appetite for infrastructure growth). Later in
the year, we expect to see a very large coking coal IPO, again along the Chinese border corridor
backed by a local and international team and within the right commodity group feeding insatiable
Chinese demand for steel. And finally Firebird Mongolia Fund continues to grab headlines as one of
the key consolidators in Mongolia smartly acquiring positions on the domestic Mongolian Stock
Exchange in well established long lasting domestic companies. Some of the challenges of Mongolia‘s
development only highlight the opportunities that are available for investors to ―play‖ now, in a
smart and tidy way.
Source: www.resource-cap.com

MINISTER PROMISES BETTER USE OF EMPLOYMENT SUPPORT FUND
Replying to members‘ allegations at a meeting of the Standing Committee on Social Policy,
Education, Culture, and Science that money in the Employment Support Fund was being misused in
a number of ways, Finance Minister S. Byambatsogt, himself a member of the committee, revealed
that various measures have been put in place to ensure fraudulent claims for payment were
detected early. All District Employment Support Agencies will submit a quarterly report, and people
claiming financial aid for attending training in areas which are not in demand will be identified.
There have been regular cases of employment providers receiving incentive for creating positions
that turned out to be temporary. The people employed were quickly laid off, then new people
taken in, and incentives claimed again. The Minister said from now on incentive will be paid only
after ascertaining that a position has been held for at least one year by the person newly employed.
The MPs urged the Minister to resolve the present anomalous situation where unemployed
Mongolians rush overseas while people have to be imported to work at projects in Mongolia. The
Minister said this happened because the vocational training institutes in the country did not offer
courses in the special skills demanded for the projects coming up and gave an assurance that ―this
distortion has to be rectified without delay‖.
Source: Unuudur
OFFICIAL EXPLAINS DRAFT LAW ON EMPLOYMENT SUPPORT
The Chief of Labor and Social Welfare Office, Mr. D.Bayarsaikhan, has told media that the present
law on employment support was passed in 2001 and the Government wants to update it in line with
the considerable changes that have taken place in society and the economy. The amendments it has
proposed seek to encourage more local initiative for programs and projects appropriate to that
area‘s particular conditions and resources. The present law is not very flexible in such matters. Also
the draft identifies certain sections of the population as having special difficulty to find jobs. They
are citizens between 35 and 60, ex-convicts, and those without any special skills. The state will
provide help to them to be valued in the job market.
Told of criticism that the draft supports unemployed citizens more than those who work, Mr.
Bayarsaikhan expressed wonder why people who already have a salaried job should feel the need
for any further special Government support. ―Unemployed citizens are the obvious target of a law
on employment support. We do not mean it for all citizens,‖ he said. He also said he did not
support some MPs‘ demand to raise the incentive for employers who give a job to those between 35
and 60 to 12 times the minimum salary from the present 5 times.
Source: Undesnii Shuudan
MPs DO NOT WANT GOVERNMENT CONTROL OVER RAW MATERIAL EXCHANGE
Representatives of the Ministry of Food, Agriculture and Light Industry and the National Chamber of
Commerce and Industry attended a discussion on the proposed raw material exchange on Monday,
organized by the Standing Committee on Nature, Environment, Food and Agriculture. There were
suggestions view that the Government should prepare a list of goods and semi-processed products
to be traded on the exchange. MPP MP N.Ganbyamba was quick to oppose this, saying the
Government should stay away from the exchange and allow trade there to follow the law of
demand and supply. DP MP Ts.Sedvanchig supported him, noting that the experience of other
countries showed that when a government regulated an exchange, trade there was limited to goods
that were not acceptable in any other market. This would surely lead to the failure of the proposed
market, he said.
Source: Undesnii Shuudan
INVESTORS NEED TO BE BOLD TO ACCEPT MONGOLIA‟S CHALLENGE
―The undeveloped mineral wealth in Mongolia is spectacular – this is a country that really is sitting
on a pot of gold. It has one of the largest undeveloped copper, gold and uranium deposits in the
world and is believed to have the largest untapped supply of coal,‖ says Edison Research in a
briefing on the country. ―Thanks to positive recent political and economic developments, Mongolia
is set for spectacular growth which is becoming noticed globally. And backed by its resource-rich
landscape of world class deposits, Mongolia has been coined the ‗Saudi Arabia of Coal‘ with strong
parallels to previous natural resource booms around the world,‖ it adds.
Getting all those minerals out of the ground and onto the Chinese and world markets is going to be
a major challenge. With no sea port and major infrastructure spending needed it could be years
before Mongolia can cash in on its untapped wealth. ―The challenge is going to be getting it out.
Funding the development of the mines and constructing the necessary infrastructure will take large

investment, which will have to come from outside the country,‖ says Edison Research. ―Mongolia
needs an upgrade – it needs new housing, new roads, new electricity and water processing networks
and all the support functions that massive investment in the country will require.‖
Mr. B. Bold is a former Wall Street banker and now the chairman of the Mongolian Stock Exchange.
He says the challenge for Mongolia is to use the country‘s huge natural resources to drive
sustainable development. ―The Mongolian people are now all watching the copper price and are
excited about cashing in on their country‘s new found wealth,‖ he said in an interview in London.
―Whilst Australia needs a rail road, a port, a ship and another port to get raw materials to China,
we can simply drive it into China over 300 kilometers of desert,‖ said Mr. Bold, who admits big
investment is needed to help get its huge natural resources to market. ―Access to ports in China
and Russia will be important to help us diversify our buyers,‖ he said. ―We want to target markets
like India, Japan and South Korea.‖
Read more…
Mongolia plans to create national champions equivalent to Brazil‘s Vale and predicts a national
champion with a market cap of between USD30-60 billion listed in London. ―In coal and copper and
gold we will be producing enough to be taken very seriously by the global markets. Outside of our
coal and copper reserves that are being developed we have 13 other major strategic reserves with
minerals like molybdenum, fluorspar, uranium, tin and tungsten. There is a huge opportunity for
Mongolia,‖ said Mr. Bold.
―Much progress has been made but it is still in transition to a market economy. This is evident both
from the debate between the ―new‖ breed of politicians that embrace globalization and the still-
strong nationalists that believe in protectionism and full state ownership of assets, and in the
underdeveloped legislative infrastructure to support a free market,‖ says Edison Research. Clearly
the nationalists are a risk to foreign investment, but if the so-called new breed can make the most
of its opportunity, higher standards of living and quality of life for the locals could help entrench
the rule of law and protection of foreign investors.
Source: CNBC.com
FOREIGN FIRMS FIND THE TIMES “EXCITING” IN MONGOLIA
Mongolian authorities are hoping the nascent mining industry -- and the deep-pocketed foreign
firms interested in it -- can help pull thousands of people out of poverty in the mineral-rich but still
undeveloped country. "It‘s an exciting time. It‘s like being in the beginning of the gold rush in the
Yukon in Canada," an industry analyst says. The government will announce the results of the bidding
on Tavan Tolgoi "as soon as possible, certainly this year", Mr. Ts. Tsenguun, head of investment at
state-run Erdenes MGL LCC, the parent of Erdenes Tavan Tolgoi (ETT), said.
ETT owns the rights to mine the Tsankhi block of Tavan Tolgoi, which contains 2.2 billion tons of
coal. It will be developed by a number of companies working in conjunction with the government.
Mr. D. Damba, president of the Mongolian National Mining Association, said it was "possible that
more than one of the mining companies would be selected, as choosing more than one is the best at
the moment".
"The fact that all the coal mining giants are here stresses what is going on. A lot has been learned
about the Government‘s approach to its resources and the way it is tackling this industry," an
analyst said.
An initial public offering of ETT slated for early next year is expected to raise up to USD2 billion
and includes a plan to distribute shares to every Mongolian. "The distribution of shares is a good
idea for Mongolia," Mr. Bold, chief executive of investment firm Newcom Group, told a recent coal
conference. "Mongolians like to share and we intend to share the wealth among all Mongolians.
From an economic point of view, it makes sense when you have thousands of shareholders standing
behind you."
Source: AFP
MONGOLIA TARGETS GLOBAL MINING ROLE AS INVESTMENTS SOAR
Mongolia's vast mineral resources are transforming the country into a global mining powerhouse.
The Gobi is now seeing a flood of geologists, miners, investors and speculators, all in search of the
enormous mineral wealth lying below its desolate surface.
"Mongolia has finally arrived on the global mining scene," investment banker B. Bold recently told a
delegation of coal mining executives attending a conference in Ulaanbaatar. "Over the next five to
10 years we are going to produce a world class mining industry that will rival Chile or Brazil."
Until recently, Mongolia's nascent mining industry had been based on artisanal gold mining, small-
scale oil joint ventures with China and a 50-year-old copper mine built by the Soviets. But a tidal

wave of bigger deals is transforming the entire industry. The supply chain is lining up to fill in gaps
in Mongolia's basic infrastructure. Power plants, coal washing plants and oil refineries are planned.
Banking, transport and service industries are all just waking up to the potential.
"Mongolia lags behind in many areas, but the government is striving to offer a favorable investment
environment. We are reducing bureaucracy, building up mining-related infrastructure and striving
to ensure transparency and international standards," Deputy Prime Minister N. Altankhuyag told the
conference delegates.
"There is no question that GDP will double in five years and triple in 10 years," says Mr. Bold, a one-
time Wall Street banker who recently returned to Mongolia to explore new opportunities here. He
predicts that in a decade per capita income could exceed USD10,000, well above the current per
capita GDP of about USD3,200.
Read more…
But as a developing country with entrenched graft and an inexperienced democracy, there are clear
obstacles ahead. Many fear the nation's wealth will remain in the hands of a small class of the
mega-rich. "Whether we end up as Norway or Nigeria remains an open question," says Mr. Bold,
referring to oil-based wealth distribution schemes developed by the Norwegian government.
The key, says Mr. Bold, is to avoid rash decisions. "It's not a slam dunk - but I think over the long
term as long as we are not rushing to develop these resources, I think the country will be
prosperous."
Source: BBC
ROYAL BANK OF SCOTLAND INDEX TAPS MONGOLIAN GROWTH POTENTIAL
Royal Bank of Scotland (RBS) has launched an index and a certificate listed on the Frankfurt,
Stuttgart, and the Six Swiss Exchange, that provide access to Mongolia, home to the world‘s
fourth-largest copper reserves and ninth-largest coal reserves, as well as substantial deposits of
gold, uranium, rare earths and zinc. The RBS Mongolia Opportunity (TR) Index targets companies
that conduct most of their business in Mongolia but are listed abroad. Constituents must generate
at least 50% of their revenue in Mongolia or focus at least 50% of their business activities on the
Mongolian commodities sector.
―Prices are quite high for commodities and the country itself is still very poorly developed. We are
trying to generate access to its economic development,‖ says Mr. Kemal Bagci, director of equity
derivatives and structured retail at RBS in Frankfurt. The equities initially included in the index are
listed on stock exchanges in Canada, Australia, Hong Kong and the UK, and denominated in
Canadian, Australian and Hong Kong dollars and UK sterling, respectively. ―We had to create a
concept that contains enough constituents to make it diversified and fulfill the liquidity criteria so
that we can market it and investors can get in and out as they please,‖ says Mr. Bagci.
The index is calculated by Standard & Poor‘s and comprises nine equities from the mining sector,
which are weighted initially according to their market capitalization at flotation, then re-weighted
twice a year. New companies can be added: ―if the local companies in Mongolia get bigger and
more liquid, we can include them,‖ says Mr. Bagci. The bank has seen demand for the index from
insurance companies and asset managers, as well as retail investors.
Mongolia‘s gross domestic product (GDP) of just USD5.8 billion and population of three million
translates into per-capita income of USD3,300, placing it in the poorest quarter of world
economies, according to RBS research.
Source: Risk.net
AUSTRIAN BUSINESS TEAM COMING IN JULY TO STUDY INVESTMENT OPPORTUNITIES
A representative team from the Austrian Chamber of Commerce will be in Mongolia from July 2 and
6 to make an on-the-spot study of investment opportunities. This was decided after Mongolian and
Austrian businessmen held a round table meeting in Vienna last week. The Mongolian Ambassador to
Austria, Mr. J.Enkhsaikhan, pointed out to participants that while mining was the major attraction
for foreign investors, Mongolia also offered opportunities in agriculture, light industry and tourism.
Source: English.News.mn
MASTER PLAN TO INTRODUCE SINGLE WINDOW FOR FOREIGN TRADE
Delegates from Ministries and Agencies that work in foreign trade, exporters, importers,
transportation operators, banks, and insurance providers recently attended a meeting with
representatives of foreign partners to discuss a master plan on how to set up a single-window
service to facilitate all work related to foreign trade of Mongolia at the Ministry of Foreign Affairs
and Trade. The meeting discussed how the single-window service would benefit importers and

exporters, by reducing the role of state officials in business, by helping find partners, and save
time.
The foreign partners included the UN Economic and Social Commission for Asia and the Pacific, the
Swiss Agency for Development and Cooperation, the World Bank, the Asian Development Bank,
JICA, the Japanese Embassy, and KOIKA.
Source: News.mn
DORNGOBI TO ATTRACT FOREIGN INVESTMENT, HOPES FORUM
Last week‘s two-day investment forum aimed at boosting development in Dornogobi province will
be a new start to attract investors to the nation, a senior Mongolian official has said. "Many
companies are interested in investing in our province as we are going to have a large infrastructure
project," Dornogobi governor P. Gankhuyag said at the forum. He was referring to the Mongolian
Government's plan to develop a heavy-industrial park in Sainshand that includes a cooking coal
plant, a copper smelter plant and an oil refinery.
Dornogobi, which borders China, has Mongolia's only railroad running through its provincial capital
Sainshand to China. Known for its rich mineral resources, the province has seen operations of many
international companies such as Dongsheng Petroleum of China and Areva Group of France. As
Mongolia is also going to build new railways from large mining sites in South Gobi region to the
eastern province, "Sainshand is going to be a key hub of railroad and motor-road," Mr. Gankhuyag
added.
Chinese Ambassador to Mongolia Wang Xiaolong, who also attended the forum, hailed Dornogobi's
rich natural resources, saying he believed the province would have a bright future. "Development of
the province not only contributes to Mongolian economy, but also to the development of China and
strengthening of friendly relations between China and Mongolia," Mr. Wang said. Cooperation
between the two sides goes beyond the mining sector, said the ambassador, adding it has also
covered humanitarian and other valued-added production fields.
Source: Xinhua
MORE FOREIGNERS COMING TO MONGOLIA
The first three months of the year are usually not the time when foreigners prefer to come to
Mongolia, but things are changing with so much international attention now focused on the
country‘s mineral resources and various aspects of their commercial exploitation. The number of
foreigners, including tourists, arriving between January and March was approximately 8,000 more
than in the first quarter of 2010. The number of people going from Mongolia to Asian and Pacific
countries has also increased, but there have been fewer travelers to Russia.
Source: Unuudur
MINERAL LAW AMENDMENTS PUT HUMAN SECURITY, ECOLOGY BEFORE PROFIT
A member of the working group that is preparing amendments to the law on mineral resources, MP
D.Gankhuyag, has said that the group wants the amended law to focus on mine workers‘ security
and health first, then on protection to nature and ecology, and only thereafter on profit. The group
has also discussed the role in mining of local authorities and concession claimants.
The new law should be adopted before April 30 when the term for suspension of granting mineral
resources exploration and exploitation licenses ends. The working group is coordinating with the
Office of the President and the Mineral Resources Authority to make this possible.
Source: Udriin Sonin
MINING FATALITIES RISE
The State Specialized Inspection Agency has found that fatalities from mining accidents have been
increasing every year. Altogether 1,223 industrial accidents were registered between 2008 and
2010, killing or injuring 1,479 people. The mining sector accounted for 302 of these accidents and
for 83 or 80% of the deaths.
The Agency also says working conditions in mines are getting worse and posing more long-term
dangers to miners‘ safety and health, making them especially vulnerable to respiratory diseases.
Source: News.mn
HKEx‟S ALLURE, AND SOME QUIRKS. FOR RESOURCE FIRMS
Resource companies are flocking to Hong Kong to raise capital. Are they coming to the right place?
One large deal Hong Kong would gladly add to its trophy wall is the IPO of the world's largest
coking-coal deposit in Mongolia, due in late 2011 or early 2012. The Mongolian Government is

expected to announce the listing venue for state-owned Erdenes Tavan Tolgoi Co., which controls a
giant coal deposit in the South Gobi desert, in the coming months and Hong Kong Exchanges &
Clearing Ltd. is a leading candidate.
HKEx, as it is known, is keen to attract resource companies away from other venues and increase its
own earnings from new listings. It is already a powerhouse in initial public offerings: It attracted
more of them than any other market last year for a second year running.
The drive for resource-related business has become a theme in consolidation of the global exchange
industry. Part of the rationale behind Singapore Exchange Ltd.'s USD8.88-billion bid for Australia's
ASX Ltd. was to make itself more attractive to mining companies of the kind that dominate
Australia's market. Australian regulators dashed Singapore's aspirations when they ruled recently
the purchase was against their nation's interest.
London Stock Exchange Group PLC, already the primary listing choice for many resource companies,
is looking to convince miners they will benefit from the extra liquidity if it succeeds in taking over
Toronto Stock Exchange owner TMX Group Inc., another market popular with the minerals and
metals sector.
Read more…
Resource companies have not traditionally thronged to HKEx, but the exchange is actively trying to
change that. Last June, it changed its listing rules to make it easier for mining companies to raise
capital for discoveries they have already made. A total of 82 metal and mining companies are listed
in Hong Kong, with a collective market capitalization of USD122 billion, the exchange said.
Weighing in Hong Kong's favor is its appeal for commodities companies as a gateway to China, a
dominant global consumer of energy, minerals, metals and foodstuffs.
"This is one of the major focuses for this year," said Mr. Eric Landheer, head of issuer marketing for
HKEx. He has gone on roadshows promoting Hong Kong in Canada, Australia, Indonesia, Europe,
Japan, Mongolia, Russia, Taiwan, Kazakhstan and the U.S. "We're seeing a lot of portfolio managers
coming here to be closer to the demand side of the equation, which is China," Mr. Landheer said,
noting for example that China now accounts for 50% of global iron-ore demand.
He points to the success of the October 2010 listing of Mongolian Mining Corp., which produces coal
used in steel production, that raised USD746 million). The stock has risen 35% since then. Not all of
the Hong Kong exchange's customers are happy. G-Resources Group Ltd., a Hong Kong-listed gold-
mining company that owns the Martabe gold and silver mine in Indonesia's Sumatra island, believes
it is undervalued. "We're slaving away as the pioneers," says company Chief Executive Owen
Hegarty. "We're taking the bullets for the rest."
It estimates its cash flow from Martabe will be USD300 million a year once production starts, based
on current gold prices. That means the company is now trading at roughly three times earnings—
about half of what a company in a comparable stage of development would trade in Toronto,
London or Australia, where investors are more familiar with how to value mining companies, Mr.
Hegarty says.
Bankers note that Hong Kong retail investors generally know little about exploration companies and
don't know how to analyze them. Some 35% of Hong Kong's stock market investors are retail
investors, compared with only 10% in the U.S. market. In mainland China, the reverse is true: Only
10% are professional institutional investors.
"There are some quirks in listing rules how reserves and resources are characterized, and Hong Kong
investors are not as familiar with resource stocks as, say, investors in Toronto, Johannesburg or
London have been," said Mr. Andrew Michelmore, chief executive of Minmetals Resources Ltd., the
Hong Kong-listed arm of a Chinese state-owned mining and metals company. "But in the long run we
have a very robust view of Hong Kong in the global market. It won't happen overnight by waving a
magic wand. People will get frustrated, but longer term we can see a very attractive market."
Source: The Wall Street Journal
STANDARD & POOR‟S SOUNDS ALARM ON U.S. DEBT
Standard & Poor‘s issued a stark warning to Washington on Monday, cutting its outlook on U.S.
sovereign debt for the first time and throwing more fuel on the raging debate over America‘s
swollen deficits. The agency kept America‘s credit rating at triple A but for the first time since it
started rating U.S. debt 70 years ago, cut its outlook from ―stable‖ to ―negative‖. A negative
outlook means there is a one-third chance of a downgrade in the next two years.
Doubts about U.S. creditworthiness could threaten the dollar‘s use as a global reserve currency
amid the rise of rivals such as China that have better growth prospects and fewer fiscal challenges.
The outlook cut highlights the damage to U.S. creditworthiness from a decade of unfunded tax cuts
and spending increases followed by massive fiscal stimulus during the recession. The U.S. will have

a deficit of 10.8 per cent of gross domestic product during 2011, according to the International
Monetary Fund, and net government debt will exceed 70 per cent of GDP. The cut also reflects
deep uncertainty about whether the polarized U.S. political system is capable of thrashing out a
deal to tackle the long-term fiscal costs of an ageing population.
Source: The Financial Times
CHINA‟S WEALTH FUND CHIEF WARNS ON GLOBAL GROWTH
The head of China's sovereign wealth fund, China Investment Corp., has said he sees gathering
clouds over the global economy, with the continuing debt crisis in Europe, no end in sight to the
U.S. property slump and natural disasters that have set back a nascent recovery in Japan. Mr. Lou
Jiwei's generally pessimistic outlook for the developed world summed up a broad theme of anxiety
at two high-level meetings on the Chinese tropical island of Hainan in recent days: the Boao Forum
for Asia, which brings together Asian business and political elites, and a summit of the Brics
economies of Brazil, Russia, India, China and South Africa.
Both sessions gave vent to growing resentments among emerging economies—the new engines of
global growth—that feel the rich world is imposing undue burdens on them, without giving them a
sufficient voice in global financial decision-making. Emerging economies are particularly concerned
about the effects of the loose monetary policy in developed economies that is driving capital to
their shores in search of higher returns, boosting inflation and creating volatility in commodities
markets. Policy makers in these economies are struggling to balance the need to propel domestic
growth amid an uncertain international environment against the dangers of mounting inflation.
Addressing the Boao Forum, Mr. Lou said that measures to combat inflation in emerging countries
will likely lead to a slowdown in their growth. Emerging markets would carry the global economy
along this year, but the momentum could slow in 2012. That could threaten growth in Europe in
particular, he said, because it is increasingly reliant on exports to emerging markets even as it
grapples with a sovereign debt crisis. The difficulties would be exacerbated if the U.S. started to
withdraw its fiscal stimulus at the same time, Mr. Lou said. "We are optimistic about the near-term
global economic situation, but over the long term we are a little pessimistic," Mr. Lou added.
CIC, established in 2007, has invested a chunk of China's enormous foreign-exchange reserves to try
to achieve higher returns than the sovereign debt China had traditionally bought with its hard
currency. According to the latest financial reports available, CIC had total assets of USD332 billion
at the end of 2009.
Source: The Wall Street Journal
CHINA IMPOSES STRICT PRICE CONTROLS ON BASIC CONSUMER ITEMS
China has imposed strict price controls on basic consumer items and is expected to allow faster
appreciation of its currency in the coming months after annual inflation in the country reached its
highest level in nearly three years in March. In a speech last week to the governing State Council,
Chinese Premier Wen Jiabao said Beijing would, along with other policy measures, ―further improve
the yuan exchange rate mechanism and increase yuan exchange rate flexibility to eliminate
inflationary monetary conditions‖.
Analysts said this was the first time Mr. Wen had publicly and explicitly mentioned the renminbi
exchange rate as a tool for fighting inflation, and this reference meant Beijing was likely to allow
faster appreciation to counter rising global prices of oil and other commodities. Chinese consumer
prices rose faster than at any time in the past 32 months in March, jumping 5.4 per cent from a
year earlier, compared with a 4.9 per cent increase in February.
The economy grew a faster-than-expected 9.7 per cent from a year earlier in the first quarter, only
fractionally slower than 9.8 per cent in the fourth quarter of 2010, suggesting that six months of
government efforts to cool growth have been largely ineffective. The price department of China‘s
powerful state planning agency – the National Development and Reform Commission – met earlier
this month with 17 industry associations and ordered them to delay or cancel planned price
increases. The quasi-government industry associations included those overseeing agriculture,
pharmaceuticals, fisheries, home appliances, cosmetics, meat, vegetables and many other basic
consumer items. In the past week or so the NDRC has also directly ordered flour and cooking oil
producers to delay price increases, according to state media reports, and has even applied price
controls to large global groups operating in China, such as Unilever.
Data released on Friday showed food prices jumped 11.7 per cent in March from a year earlier, up
from a rise of 11 per cent in February, 10.3 per cent in January and 9.6 per cent in December.

CHINA‟S FIRST-QUARTER GDP GROWS 9.7%, INFLATION 5.4%
The Chinese economy grew faster than expected in the first quarter and inflation rose to its highest
level in almost three years despite months of government attempts to slow surging growth. China‘s
gross domestic product increased 9.7 per cent in the first quarter from a year earlier, down slightly
from 9.8 per cent growth in the fourth quarter of 2010, but still faster than most economists had
predicted.
Meanwhile, benchmark consumer prices rose 5.4 per cent from the same period a year earlier in
March, a big increase over February‘s 4.9 per cent and the highest reading in 32 months. The
stronger than expected readings came despite six months of tightening efforts in which the
government has raised benchmark interest rates four times. Beijing has also increased the ratio of
deposits that banks must hold in reserve six times, to 20 per cent for China‘s largest lenders.
Many economists said the data showed that the economy had not slowed meaningfully, and that
Beijing would likely continue its tightening efforts to rein in excess liquidity and slow rapid price
rises that the Communist Party fears could damage social stability. High oil and commodity prices
are complicating the government‘s attempts to tackle inflation at home, where two years of
unprecedented growth in bank lending have left the economy awash with cash.
Last week, China also released its first ever official estimate of quarter-on-quarter growth, which
showed the economy expanded 2.1 per cent in the first quarter from the fourth quarter of last
year. Quarter-on-quarter growth is the preferred measure in most major economies but China‘s
statistics bureau did not specify whether its figure was seasonally adjusted.
POLITICS
MONGOLIA HALTS COAL MOVEMENT, AFTER CHINA CLOSES BORDER POST
Mongolia halted truck deliveries of coal from the South Gobi region to China on Tuesday, with the
ban expected to be a temporary measure, after China closed a part of the border citing a technical
glitch, a lobby group for the Mongolian mining sector said. The South Gobi region is the location of
the Tavan Tolgoi property, one of the world's biggest coal deposits. Mongolia has yet to build
railway infrastructure in the region and exporters continue to depend on trucks.
"The Chinese side said they had some problems (at the border crossing of Zamiin Uud) with their
computer software registering the vehicles," said Mr. B. Enkhbaatar, chairman of the Mongolian
Mining Club. "It affected all traders in Mongolia and so the Mongolian Government is taking
countermeasures."
Official Chinese news agency Xinhua said Mongolia suspended coal deliveries following a spate of
accidents on a dirt road running from Tavan Tolgoi. Citing local media, it said 23 people were killed
in 31 road accidents on the Tavan Tolgoi highway in 2010, with another three fatalities in the first
quarter of 2011.
The closure of work at the Chinese customs post at Ereen for an entire day put about 2,000
Mongolians to much difficulty. They were mostly traders who could not receive their import
consignments and many of them complained that the long wait was very inconvenient as there was
not even any drinking water available. Both the Mongolian Consul in Ereen and the First Secretary in
the Chinese Embassy in Ulaanbaatar said strong winds had disrupted power transmission and
brought operations at the Chinese customs point to a halt.
This being the official reason behind the Chinese action, the Mongolian decision to close the 245-km
road from Ukhaa Khudag to Gashuunsukhait is also being explained away as not being a
countermeasure, even though many saw it as a tit for tat, denying China the coal that 400 trucks
carry every day. More than 60% of these vehicles are driven by Chinese, who are legally employed,
with the Mongolian Government charging MNT210,000 every month for every non-Mongolian worker.
Read more…
"The Mongolian government does close off shipments for a day or two when there has been an
accident -- sometimes there is so much dust caused by the trucks and local herds or herdsmen are
hit," said Mr. Jim Reichert, senior infrastructure specialist with the World Bank in Ulaanbaatar.
―They need to build a railway as soon as possible to transport the coal -- there are any number of
reasons to do that," he said.
Private financing was available to build railways south to China, but the Mongolian Government
blocked construction in order to concentrate on a cross-country rail network that would link Tavan
Tolgoi with Russia and the Pacific coast.
The Mongolian Mining Corp. and South Gobi Resources also have mining operations in the South Gobi
region. Mr. David Bartel, Vice President in charge of Mongolian operations at South Gobi Resources,

said deliveries from the company's mine were not affected. "The block is just from the Tavan Tolgoi
area -- they have not stopped shipments from our mine," he said.
Source: Reuters, Unuudur
HERDERS RIDE INTO CAPITAL TO DEMAND ELECTIONS IN PROTEST OVER FOREIGN MINERS
About 200 Mongolian herders on horseback and horse-drawn carts set up camp in Ulaanbaatar with
environmental activists on Tuesday to protest international mining deals and demand elections. The
herders swept into the central Sukhbaatar Square abutting the Parliament building and erected gers
for what activists said would be a lengthy protest.
They say deals with international mine companies have spoiled grazing lands and political parties
have sacrificed the national interest to please the mining firms. Herders have become increasingly
hard-pressed in largely poor, landlocked Mongolia as overgrazing, rough winters and
industrialization degrade grasslands. ―More and more people are coming from rural areas of
Mongolia to support us,‖ said environmental activist Ts. Munkhbayar. ―We all want same thing:
dismissal of the Parliament and government and elections. We will camp here until our demands
are met. ―
Mining Mongolia‘s rich deposits of copper, gold and coal has been a source of growth in the
landlocked country where nearly a third of the people live in poverty. But herders are a powerful
constituency in a nation that traces its origins to Chinggis Khaan‘s uniting of nomadic tribes 800
years ago.
Source: The Washington Post
PRIME MINISTER‟S INCOME RISES, PRESIDENT LOSES CAR
The statement of income and assets submitted by high government officials to the Anti-Corruption
Agency makes interesting reading. Among the 242 who have this year filed the mandatory returns
are the President, the Parliament Speaker, the Prime Minister, Parliament and Cabinet members,
the Ulaanbaatar Mayor, Governors of provinces and heads of Agencies.
One MP‘s personal income was MNT40.8 million, while his family income was anther MNT116.8
million. The Prime Minister‘s personal income for 2010 was MNT193.3 million, more than what he
had earned in the previous year, but his family income fell to MNT96.2 million. The President
owned a Lexus-470 in 2009, but had no car in 2010.
TOP BANKERS BEING INVESTIGATED
Senior bankers are under interrogation by both the Anti-Corruption Agency and the State
Investigation Authority, local media have reported. Central Bank Governor L.Purevdorj and officials
under him are suspected of illegal transfer of funds from Zoos Bank, a private commercial bank that
went into liquidation, and is now under government management. Mr. N.Ariunbat, top managing
official of the newly named State Bank, is also reported to be connected with ―unauthorized‖
return of large sums of money to Mr. D.Batbayar, a former member of the Zoos Bank board of
directors. Assets worth more than MNT3.6 billion are believed to have been returned to Mr.
Batbayar, who held 51 percent shares of Zoos Bank.
Source: The UB Post
8 SENIOR APPOINTMENTS CANCELED BECAUSE OF IRREGULARITY
The State Service Council has canceled the appointment of eight senior officials at the Financial
Regulatory Authority as the proper selection process had not been followed. These include the
Deputy Chiefs of Finance, Cooperation and Bonds. The Council will issue advertisements to fill the
vacancies in May.
Source: News.mn
COMMUNICATION SERVICES SPREAD TO HITHERTO UNCONNECTED AREAS
The World Bank has been funding a project to improve the information and telecommunication
infrastructure in Mongolia, with the Communication Regulatory Office responsible for its
implementation. Mobile telephone service centers are now operating in 131 districts, and special
communication service centers for herders have been established in 184 small settlements in 82
districts. The national transmission network now runs over 3,200 km, connecting 40 district centers
with one another and with the bigger cities.
All provinces now have at least one automobile to run postal services so delivery of letters and
packets sent by mail is more timely and regular. Broadband internet service is available in 34

districts and cities. The coordination capacity in the communication sector has improved with the
spread of public-private partnership, with 290 enterprises now holding licenses to provide
communication services in the provinces. The number of mobile phone users jumped from 441,000
in 2004 to 2.5 million in 2010, which means 90.2% of the Mongolian population have a mobile
telephone, which is higher than in many countries much more developed.
Source: Udriin Sonin
DP MP WANTS COALITION DISSOLVED TO PROVIDE FOR “ALERT OPPOSITION”
Mr. E.Munkh-Ochir created a storm at this week‘s meeting of the DP group in Parliament by
demanding the Government‘s resignation. Later, he explained to journalists that this was his
personal view and he did not have any agenda to press for the dissolution of the coalition. He did
not regret that he had supported the idea of a coalition ―as that would expedite decisions on large
mineral deposits‖. But, with that achieved, ―we now need adequate monitoring of projects and an
alert opposition is essential‖ for this, he felt. ―The DP served the nation well by joining the
coalition when it was necessary, but now it is time to get out, again in the nation‘s and the
people‘s interest, so that we can act as a watchdog,‖ he added.
He was unhappy that with the two major parties sharing power, there is ―no effective monitoring
and criticism‖ of the Government in Parliament. ―Let the MPP rule and let us be a responsible
opposition,‖ he said. He called the prevailing atmosphere in Parliament ―very strange‖, and added,
―MPs are making deals with one another all the time on appointment of officials, on which draft
laws will be supported, and such things, instead of working to meet the needs of people. It‘s all
quid pro quo now under the coalition Government, with no thought of what the country needs.‖
Source: News.mn
WIDE PARTICIPATION AT NATIONAL FORUM ON JUDICIAL REFORM AND JUSTICE
Last week‘s two-day National Forum on Judicial Reform and Justice, both avowed priorities of
President Ts. Elbegdorj, was attended by around 1,000 delegates who discussed issues relating to
independence of courts, civil and administrative court procedures, the way prosecutors‘
organizations work, legal education, structure of courts, the role of police, selection of judges,
protection of the rights of victims, enforcement of court rulings etc. There were speeches from
various sections of society and panel discussions.
Among those who spoke were legal scholar Dr. B. Delgermaa; Mr. D.Naranchimeg, a member of the
Constitutional Court; Mr. B.Lkhagvajav, Head of National Soyombo movement; Mr. D.Ganzorig, a
lecturer at the Justice Institute of the National University of Mongolia; MPs; representatives of state
organizations and NGOs, courts, prosecutors, international organizations, scholars and citizens.
Advisor to the National Security Council Ch.Unurbayar traced how the Constitutional principle
safeguarding judges‘ independence has been diluted by administrative and procedural decisions.
The head of the Free Union of the Elderly, Ms. G.Baasan, said reforms should have been initiated
much earlier. She said honest lawyers are outnumbered and called for more judges to be appointed
as the work load is too much for the 400 judges at present. Reforms should start with the primary
courts, she said.
Source: Ardiin Erkh
URANIUM POLICY SHOWS MONGOLIA‟S DIPLOMATIC SAVVY
In March, a few international media outlets quietly reported that Mongolia and the U.S. had been
holding informal discussions on a proposal that would have Mongolia serve as a regional depository
of spent nuclear fuel. The arrangement would allow South Korea and Taiwan, which the U.S.
supplies with nuclear rods, to dispose of their spent fuel, resolving what has become an increasingly
thorny problem for the U.S.
News of the story spread quickly in the Mongolian press, and public opinion came out decidedly
against the proposal. The Japanese nuclear crisis in Fukushima has compounded opposition in
Mongolia to nuclear energy. Whether popular concerns are realistic or not is irrelevant to most
Mongolians.
The Mongolian Foreign Ministry officially denied the reports of the talks over the spent fuel
depository, claiming that it was inconsistent with the country's laws "prohibiting the import of
dangerous waste to Mongolian territory." However, while the Mongolian government remains
publicly adamant that it will reject such a depository, it has demonstrated its diplomatic savvy by
approaching the issue as a legal constraint rather than a strategic decision. By framing the
discussion around legal principles, the government has avoided disappointing its emerging strategic
partners in Washington and Moscow.

Read more…
The administration also made sure not to let its repudiation of the proposal cast any doubt on its
interest in the continued growth of its uranium exports. Mining is Mongolia's largest export sector,
accounting for nearly half its outgoing trade. While its most heralded industries are coal, copper
and gold, Mongolia also has a substantial investment and industrial vision attached to uranium
exploration. The country's most important uranium mine is located in Dornod province, in the
easternmost region of Mongolia. Despite its isolation from the capital, Dornod's population has
boomed as a result of economic opportunities attached to the mine. There are now several daily
flights between the national capital, Ulaanbaatar, and Dornod's capital, Choibalsan, to
accommodate investors and workers.
Uranium exploration is not a recent development in Mongolia. After the conclusion of World War II,
the Soviet Union carried out geological studies to determine and identify regions for uranium
extraction. The context of the Cold War and the nuclear arms race contributed to drive the hunt for
uranium in Mongolia. Subsequent tests in the 1960s and 1970s identified four provinces in northern
Mongolia, including Dornod, as having potential for future mining production. Ironically, it was not
until 1989, with the Soviet Union in its final days, that uranium production began in Dornod. It is
estimated that Russia spent more than USD500 million on developing Mongolia's uranium
infrastructure since its early involvement after World War II.
In mid-2009, the Russian-Mongolian partnership was codified when both governments signed a high-
level agreement to cooperate in identifying and developing Mongolia's uranium resources, with
special reference to Dornod. Russia's state nuclear energy corporation, Rosatom, continues to
maintain an exclusive and cozy relationship with the Mongolian Nuclear Energy Agency (MNEA),
despite the efforts and presence in the country of international suitors such as Canada, France,
Japan, South Korea and China.
In addition to MNEA, Mongolian state-owned uranium corporation Monatom LLC maintains a big
stake in the country's nuclear future and continues to express interest in finding global business
partners and investors. Nevertheless, further strengthening Moscow's hand is its friendly posture
toward Mongolia's declared intention to construct its first nuclear reactor by 2020. Despite this,
Rosatom will have to compete with international companies such as French nuclear giant Areva,
which recently signed an agreement authorizing it to explore and mine uranium in Mongolia. South
Korea has also demonstrated an interest in Mongolia's nuclear industry, as evidenced by a
memorandum of understanding on peaceful uses of nuclear energy, inked on March 25.
Mongolia's geostrategic location has prompted some observers to suggest that it might be interested
in developing a nuclear weapons program or in housing strategic warheads of allied nations.
However, this scenario seems highly unlikely considering that Mongolia has little capacity or desire
to project force outside of its borders. Mongolia unilaterally declared its territory a nuclear-
weapons-free zone in 1992, 14 years before the five Central Asian post-Soviet republics --
Kyrgyzstan, Uzbekistan, Turkmenistan, Tajikistan and Kazakhstan -- followed suit by formally
declaring their territories a nuclear-weapons-free zone in 2006. The treaty formalizing the Central
Asian Nuclear-Weapons-Free Zone was ratified in May 2009. While Mongolia has yet to
institutionalize its zone, it is clear that it intends to remain outside the nuclear fray.
Mongolia is also a strong proponent of the nonproliferation regime as a state party to the Nuclear
Non-Proliferation Treaty. Furthermore, the Additional Protocol to its safeguards agreement with
International Atomic Energy Agency (IAEA) -- ensuring more robust verification standards -- has
been in force since 2003. The Additional Protocol will also help to ensure that the construction of
any nuclear reactors in Mongolia is consistent with IAEA standards for safety and monitoring.
Through continued coordination with the IAEA and respected international investors, Mongolia can
successfully continue its march toward nuclear power. While the recent events in Japan are sure to
shape public opinion, this is unlikely to change the administration's calculus that nuclear energy will
enhance Mongolia's economic and energy security in the future. Moreover, debate surrounding
Mongolia's willingness to house spent fuel remains a peripheral issue in the context of its greater
strategic vision on nuclear energy. Attracting international investment in its nuclear sector will
continue to be a priority for Ulaanbaatar as it seeks to exploit its substantial uranium reserves.
Source: World Press Review
KHUVSGUL GOVERNOR SPENDS AS HE WANTS
Khuvsgul Governor L.Tserenjav has long run the province as a personal fiefdom and pays little heed
to what Ulaanbaatar officials say. The MPP, which appointed him, has been concerned at receiving
regular reports from the province on how citizens‘ interests are ignored and recently the party
Chairman, who is also the Prime Minister, called him for a meeting and instructed him to mend his

ways and to work more efficiently. However, the situation has not changed. Mr. Tserenjav has now
announced that he would spend MNT1 billion on celebrations to mark the 80th
anniversary of the
establishment of the province, even though the Government wants the expenses not to exceed
MNT10 million.
FILM MADE ON MAN WHO DUPED PRESIDENT, AND STOLE MNT90 MILLION
The life of one of Mongolia‘s most notorious con men has now been made into a film. Mr.
B.Gansukh was a sensation in 1992 when he duped then President P.Ochirbat and the President of
The Central Bank and stole MNT90 million of public money. He was sentenced to several years in
prison, but managed to escape. He was caught and his sentence was extended.
Since his release a few years ago he has worked for The Church of Jesus Christ of Latter-day Saints,
after expressing contrition for his actions. Journalist D.Turmunkh wrote a film story of Mr.
Gansukh‘s life and Mr. J.Sengedorj has now made it into a film called Thief. Mr. Turmunkh is well
known for his work on the film State of Dogs and for his translation of Movie Makers‘ Bible. Thief
will be shown in cinemas soon.
Source: Ardiin Erkh
LANDLOCKED COUNTRIES REAFFIRM RIGHT OF ACCESS TO AND FROM SEA
Landlocked developing countries (LLDCs) in the Asia-Pacific region pledged during a three-day UN-
backed meeting in Ulaanbaatar to promote greater cooperation and to reduce trade and transport
barriers in an effort to achieve mutual sustainable development. ―Landlocked developing countries,
made most vulnerable by their geographical isolation, are often the hardest hit by rapid global
economic swings,‖ said Ms. Noeleen Heyzer, Executive Secretary of the UN Economic and Social
Commission for Asia and the Pacific (ESCAP).
Ministers and senior government officials from Afghanistan, Armenia, Azerbaijan, Bhutan,
Kazakhstan, Kyrgyzstan, Laos, Mongolia, Nepal and Tajikistan met to review progress in
implementing the Almaty Program of Action and assess challenges arising from the severe socio-
economic impact of the food, fuel and financial crises on the LLDCs.
The eight-year-old program of action reaffirms the LLDCs‘ right of access to and from the sea,
urging cooperation between LLDCs and transit countries for that purpose. The high-level meeting
adopted an Ulaanbaatar Declaration and requested Dr. Heyzer to submit it to ESCAP Member States
to recommend necessary measures for its speedy implementation. The declaration recognized that
non-physical barriers such as customs clearance and border crossing procedures, as well as red
tape, were major impediments to efforts by LLDCs to reach their full potential for growth and
development.
Stressing that the interests of LLDCs should be taken fully into account to ensure that they have
free access to international waters, delegates at the meeting resolved to work together to establish
transit transport systems to benefit from the region‘s dynamism.
Source: UN News Center
CHINA‟S INFLUENCE ON CAR DESIGN FOR GLOBAL SALE ACCELERATES
At the Shanghai car show that opened on Tuesday, General Motors and PSA Peugeot Citroën both
launched global models for the first time in China, a symbol of how the car industry‘s center of
gravity continues to shift to the mainland, the largest car market. But it is not just about launching
the new-generation Chevrolet Malibu or Citroën DS-5 first in China, to attract more Chinese buyers.
The shift goes both ways.
When GM on Monday unveiled its Buick Envision SUV concept car, it revealed a car designed in
China, for the world. Chinese tastes are increasingly influencing the design of cars driven not just in
China, but around the world. And it is having the greatest influence on luxury cars. Demand for
premium cars is soaring in China, making it crucial for luxury carmakers to satisfy them first. When
Mercedes-Benz set out to design a new S-Class luxury saloon, to hit showrooms in 2014, Daimler
flew 100 Chinese consumers to customer clinics in Germany and the US to ensure they had input in
the car‘s design.
But the Chinese car boom is shaping the look of some mass-market cars too. When General Motors
designed its LaCrosse saloon, the brand, which is popular in China, devised a roomy and plush rear
seat of the kind that Chinese owners – many of whom have chauffeurs – prefer.
Read more…
Mr. Ed Welburn, GM head of global design, says, ―The trends here in China are having an influence
on the design of our brands, but it is not a case of China dictating what cars are driven in Detroit.

The influence is more subtle.‖ Mr. Welburn says one of the reasons Buick has become so successful
in China – where owning a Buick is a status symbol – is that its fluid lines are more oriental in feel
than the angular shapes of some other global auto models.
―China connected with Buick in a very positive way because ... Buicks have a lot of flow in their
design and Chinese artwork and calligraphy have a lot of flow,‖ he says. ―I‘ve encouraged the
design team here to ... continue to play that up, and they have used that aesthetic in every detail
[of the Envision SUV concept car], to give the same kind of feeling you get with a jade sculpture.‖
Beijing is intent on transforming China from the world‘s sweatshop to its design studio, with its
increasing focus on encouraging innovation rather than mere copying of Western products. Towards
that end, Beijing is pressing western carmakers such as GM to launch indigenous brands, with their
local joint venture partners. GM on Monday launched such a brand, the Baojun, or ―treasured
horse‖, with partners SAIC and Wuling. One joint venture official said the car‘s front end is meant
to look like a smile – perhaps another sign of the shape of cars to come.
ANNOUNCEMENTS
MONTPELIER GROUP‟S WEALTH MANAGEMENT EVENING, ULAANBAATAR, MAY 4
The Montpelier Group is holding a Wealth Management Evening on May 4 at The Corporate Hotel
between 6 pm and 8 pm. Mr. Peter Davies, Managing Director of the Group will present ―An
Introduction to Montpelier‖, outlining the Group‘s presence in Mongolia and how it can benefit
expatriates living here. Mr. Matthew White. Regional Sales Manager, Friends Provident
International, calls his presentation ―Saving for the Future – The Cost of Delay‖, and will cover
important and fundamental areas of financial planning for expatriates. Mr. Chris Ivinson, Area
Manager, Royal Skandia, will give ―A Global Account for Mobile Investors‖, explaining how investors
can avoid the currency trap and plan their taxation issues. Reservations
The numbers of seats for this event is limited. For reservations please email
jmeaburn@montpeliergroup.com or call +66 (0)2 661 5150. There is no charge for this event.
___________________________________________
RUNGE‟S COURSE ON „MINING FOR NON-MINERS‟, ULAANBAATAR, MAY 19-20
Runge is planning a course on ‗Mining for Non-Miners‘ in Ulaanbaatar, designed for people of a non-
mining background who interact with mining personnel. The tentative dates are May 19 and 20,
with one day focusing on coal mining and the other on metal mining. The course is aimed at
providing those from a non-mining background with a comprehensive understanding of the mining
industry. After attending it, participants will have a greater understanding of the operational
practices pivotal to the mining industry, and will be able to interpret essential terminology and feel
more comfortable interacting with core mining staff.
Runge is a world class mining consulting, software and training company with an office in
Ulaanbaatar with expat and local staff. The course fee for non-members is USD2,000, but Runge is
offering a massive 50% discount to BCM members who pay USD1,000. Initial response has been
extremely positive. The number of participants is limited. Please send your expression of interest
via return email by Monday, May 2, if you are interested in attending this course to
saruul@bcmongolia.org, or telephone 332345.
___________________________________________
GLOBAL ALLIANCE PARTNERS and 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
- 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
___________________________________________
“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 monthly meetings in the 2011 first quarter, several from the very
successful Mines and Money Hong Kong‘s ‗Mongolia Investment Summit Morning‘ on March 25, and
by Voyager Resources‘ CEO in both English and Mongolian at a March 16 MICC-sponsored gathering.
In addition Mongolia Reports including 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.

INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
March 31, 2011 *8.0% [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]
CURRENCY RATES - April 21, 2011
Currency Name Currency Rate
US dollar USD 1,230.42
Euro EUR 1,799.00
Japanese yen JPY 14.99
British pound GBP 2,029.45
Hong Kong dollar HKD 158.33
Chinese Yuan CNY 188.76
Russian Ruble RUB 44.12
South Korean won KRW 1.14
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.

22.04.2011, NEWSWIRE, Issue 164

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (19)

Similar to 22.04.2011, NEWSWIRE, Issue 164

Similar to 22.04.2011, NEWSWIRE, Issue 164 (20)

More from The Business Council of Mongolia

More from The Business Council of Mongolia (20)

Recently uploaded

Recently uploaded (14)

22.04.2011, NEWSWIRE, Issue 164