May 24 2013

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 275 – May 24, 2013
NEWS HIGHLIGHTS:
Business
 Ex-Im Bank authorizes USD 500 mn loan for U.S. exports for use at OT;
 State commission approves OT concentrator;
 Prophecy Coal shares surge on 25-year power tariff agreement;
 Modun sees greater coal quality results from Nuurst briquettes;
 Blue Wolf Mongolia to merge with Li3 Energy;
 DWI secures MIAT contract;
 China Eastern Airlines to provide services support to Hunnu Air;
 Sharyn Gol orders Komatsu equipment to revamp tech;
 Draig Resources greenlights 2013 exploration program;
 Golden Network speaks Mongolian;
 FMG Mongolia Fund lost 7.5% in April;
 Capital Bank joins IFC's corporate governance program;
 Mongolia to accept JCB cards;
 Oyu Tolgoi funds Nalaikh vocational school construction.
Economy
 Chinese gasoline imports enter Mongolian market;
 Poverty falls 6 percentage points in 2012;
 Government targets expanded airline capacities;
 Development Bank to fund housing project;
 Added competition from Mongol-93 fuel pushes down Rosneft’s prices;
 Two strong neighbors face off for the rails;
 A limping economy;
 Protecting the Saker falcon;
 Smuggled dinosaur's return may boost Mongolian paleontology;
 James Passin's story;
 Gold seen crushed as Credit Suisse forecasts USD 1, 000 in year;
 Don't panic, it's just the mining cycle;
 Surging Chinese steel exports put pressure on world prices;
 China Railway plans USD 3.25 bn bond auction;
 China tilts back to big spending;
 Japan copper buyers not seeking alternatives to closed Indonesia mine;
 LSE seeks partners, not acquisitions.
Politics
 MPP claims case against Elbegdorj;
 Former yokozuna joins DP;
 Bill to allow investigation into banking transactions above MNT 20 million;
 Premier summarizes planned spending for Chinggis bond;
 MNT 900 bn from Chinggis bond loaned to commercial banks;
 Cabinet appoints new General Intelligence Agency chairman;
 Elbegdorj meets Polish Senate Marshall;
 Former Kuwaiti ambassador accused of spying for Kazakhstan;

2.  Mongolian artist debuts in Thailand;
 IACA at the Community of Democracies meeting;
 How a Texas lawyer wrangled a Mongolian Tyrannosaurus.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Macroeconomic Overview – April 2013;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Major Drilling
International SOS
Wagner Asia Automotive
Wagner Asia Equipment Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BCM MONTHLY MEETING NOTICE
BCM‘s monthly meeting for members will be on Monday, May 27, 2013 at 5PM at the KEMPINSKI
HOTEL KHAN PALACE, 2nd floor, Altai Ballroom.
The bilingual meeting will feature the following presentations:
- Call to Order/Business Council of Mongolia: B. Byambasaikhan, Chairman, BCM
- BCM Report: Jim Dwyer, Executive Director, BCM

3. - Stephan A. Fischer, Managing Director, VF Messen GmbH – ―Future Mongolia 2013 Expo‖
- Jonathan Addleton, Former US Ambassador to Mongolia – Introduction of his book: ―Mongolia and
the United States: A Diplomatic History‖
- U. Ganzorig, President, Mandal Insurance – ―Risk Environment in Mongolia: 10 risks to look at‖
- B. Tulga, Vice Minister, Ministry of Environment and Green Development – ―Government Policy on
Clean Technology and Green Business‖
- E. Bat-Uul, Mayor of Ulaanbaatar City – ―Landscape Planning‖
A networking reception will be held for all attendees immediately following the business portion of
the meeting in the ―Tenger‖ restaurant, 1st floor, Kempinski Hotel Khan Palace.
BUSINESS
EX-IM BANK AUTHORIZES USD 500 MN LOAN FOR U.S. EXPORTS FOR USE AT OT
The board of the Export-Import Bank of the United States has voted to authorize an approximately
USD 500 million direct loan to finance the continued development of the Oyu Tolgoi copper-gold
mine.
―This transaction will not only support good jobs and bolster our economy here in America, it will
also provide a lift to the Mongolian economy and directly impact the country's GDP,‖ said Ex-Im
Bank Chairman and President Fred Hochberg.
Ex-Im Bank has worked closely with the other lenders and sponsors to ensure that the Oyu Tolgoi
project was planned to minimize the impacts on local residents and environment in compliance
with Ex-Im Bank's strict environmental procedures and guidelines and Mongolian law.
Source: Export-Import Bank
STATE COMMISSION APPROVES OT CONCENTRATOR
A state commission has given official approval to the copper concentrator at the Oyu Tolgoi copper-
gold mine.
Approval came on 9 May from a commission made up of representatives of the Mining Ministry,
Environment and Green Development Ministry, Industry and Agriculture Ministry, Economic
Development Ministry, Finance Ministry, and Mining Resources Department. The commission
requested from Oyu Tolgoi LLC an analysis on water resources, focus on more quickly finishing all
activity concerning the concentrator, and that work comply with the feasibility study for the
project. They also requested a report on the possible negative impact from industry on the
environment with a list of prevention activities.
Oyu Tolgoi‘s concentrator plant has the annual production capacity of 35 million tons of copper
concentrate.
Source: Unuudur
PROPHECY COAL SHARES SURGE ON 25-YEAR POWER TARIFF AGREEMENT
Shares of Prophecy Coal Corp. surged on Friday after the company announced the final terms of a
25-year tariff agreement for the Chandgana coal mine mouth power plant project in Mongolia.
The major terms of the agreement include an initial tariff for the first year of the power plant
operation, and a weighted average tariff for the remaining 24 years under the deal. The company
told investors Friday that the numbers are in line with its final proposal submission to the Mongolian
ministry of energy in February this year.
Shares jumped almost 24 percent to 13 cents on the main board of the Toronto stock exchange on
17 May. Prophecy said the deal is a major catalyst for the company that could lead to concluding
the power purchase agreement with the government in an ―expedited manner,‖ as well as to
finalizing joint venture discussions with power companies, and the selection of a turnkey contractor
for the project.
The Mongolian government assigned a ―working group‖ for the Chandgana project, which was made

4. up of 11 members, including officials from the ministry of energy, the energy regulatory commission
and private companies operating in the energy sector in the region. With all major construction,
environmental, mining, land use licenses and permissions already in place, Prophecy said it is
looking forward to possibly the country's first major thermal independent power plant project.
Source: Proactive Investors
MODUN SEES GREATER COAL QUALITY RESULTS FROM NUURST BRIQUETTES
Modun Resources Ltd. reported that the test results of briquettes created using coal from the
Nuurst project had resulted in a significant upgrade in coal energy.
A sample had shown a rise of calorific value from 4,178 kilocalories per kilogram to 5,648
kilocalories on an as received basis. Test results indicate that Nuurst coal in the briquette form now
reaches the benchmark 5,500 kilocalorie per kilogram Newcastle thermal coal energy level. The
test work was conducted at the request of the Mongolian government and carried out independently
by ALS Group LLC and the City Air Quality Agency laboratory in Ulaanbaatar.
―We are very excited about these test results and our ability to achieve significant improvements in
coal quality via a very cost-effective beneficiation process,‖ said Managing Director Rick Dalton. He
added, ―These results are significant as we seek to work with the Mongolian government to develop
a low-cost, high-energy and low-emission coal to help improve the air quality of Ulaanbaatar.
Modun hopes to use the Nuurst briquettes to help the Mongolian government achieve their targets
for pollution reduction in Ulaanbaatar, said Dalton.
Source: Modun Resources Ltd.
BLUE WOLF MONGOLIA TO MERGE WITH LI3 ENERGY
Li3 Energy Corp. has entered into an agreement with Blue Wolf Mongolia Holdings for a full merger.
Following the closing, Blue Wolf intends to change its name to Li3 Energy Corp and continue to list
its securities on the NASDAQ capital market, said a statement. Li3 Energy intends to apply to list its
securities on the TSX Venture Exchange, but there is no assurance of its listing or maintaining its
securities on either.
―We are very pleased to have entered into this agreement with Blue Wolf,‖ said Luis Sanenex, chief
executive officer and president of Li3 Energy.
Source: Resource Investing News
DWI SECURES MIAT CONTRACT
MIAT Mongolian airlines has selected DWI's GNSS RAIM/RNP prediction service web-based user
interface.
MIAT will be using the GRPS web UI to support its PBN operations including basic-rnp 1 as required
for Hong Kong international airport. The web service provides a user-friendly interface allowing
flight planners and dispatchers to perform pre-flight RAIM checks, store tail configurations,
aerodromes, waypoints, and entire routes to reduce workload and potential human error.
DWI said that due to ease of use, a short training course, given over Webex, was all that was
required for dispatchers to learn how to manage and operate the web-based user interface. MIAT
will continue to receive support from the DWI dedicated support help desk.
―MIAT is fully satisfied with DWI's GRPS web UI,‖ said U. Tamir, lead specialist in the MIAT flight
operations engineering department. ―Now we have a very simple tool for end-users to check RAIM
status with a professional customer support team.‖
Source: AirTrafficManagment.net
CHINA EASTERN AIRLINES TO PROVIDE SERVICES SUPPORT TO HUNNU AIR
Mongolian Airlines, which is soon to be renamed Hunnu Air, will apply for Skyteam membership
following the signing of a memorandum of understanding.
The agreement will see the Chinese carrier, China Eastern Airlines, aid Hunnu Air in bringing its
service delivery and corporate culture up to international standards. Under the memorandum
provisions, China Eastern will provide catering, ground support and maintenance service for Hunnu

5. Air at Shanghai Pudong International as well as providing comprehensive crew training. In return,
Hunnu Air stands to gain a codeshare deal on a possible Shanghai Pudong International-Ulaanbaatar
Chinggis Khaan rout, conditional on Hunnu Air passing its IATA Operational Safety Audit.
Additionally, Hunnu Air will provide ticket sales for China Eastern in Mongolia, while China Eastern
will help Hunnu Air gain market presence in China.
Source: Xinhua
SHARYN GOL ORDERS KOMATSU EQUIPMENT TO REVAMP TECH
Sharyn Gol JSC upgraded the technology capacities of its eponymous mine using Komatsu products
acquired through official distributor TransWest Mongolia LLC.
Sharyn Gol has been undergoing major change over the last three years, aimed at elevating the
company and improving the quality of its coal production. The miner's plan is to expand the open
pit mine to a newly discovered coal reserve for annual production of three million to four million
tons of coal. To reach this coal Sharyn Gol requested for purchase from TransWest four HD465-7R
dump trucks with 60-ton payloads each.
―We would like to pair high-performance modern equipment with our Russian technology equipment
to bring our overall production to a higher level,‖ said Erdenebat, general engineer of Sharyn Gol.
―The Japanese brand Komatsu's mining and earth-moving equipment has a high reputation in the
world and is proven for its high performance, latest technology, and reliability in the Mongolian
market.‖
Source: TransWest LLC
DRAIG RESOURCES GREENLIGHTS 2013 EXPLORATION PROGRAM
Draig Resources Ltd. and its joint venture partners have greenlighted the first stage of its 2013
exploration program at their coal exploration licensed land.
Work to be undertaken as part of stage one includes mapping, ground magnetic surveys and drilling
over anomalies identified from previous exploration work done in earlier programs. The exploration
plan is part of the overall exploration initiative to test out new areas of interest among the existing
eight licenses held by the Mongolian coal joint venture.
Four licenses are located in Uvurkhangai Aimag and four at Umnugobi Aimag. Exploration at
Uvurkhangai includes field mapping and trenching at the Teeg and Urtnii Am licensed sites, which
will be followed by a ground magnetic survey and rotary air blast drilling. Field mapping and
trenching will also be done at Khongor.
In Umnugobi, magnetic survey will be done over Zamt Uul, which will be studied to evaluate
previous resistivity data. Also, mapping will be done over Gurvantes licenses' northern area, while
drilling will be undertaken in the south of the license over anomalies identified from resistivity
work carried out in the previous program.
Source: Proactive Investors
GOLDEN NETWORK SPEAKS MONGOLIAN
Hong Kong-based sale agent Golden Network Asia has picked up international rights to historical
epic Queen Ahno – Spirit of a Warrior, which is one of the most expensive films ever produced in
Mongolia.
Based on the best-selling Mongolian novel, Legendary Queen Anu, written by B. Shuudertsetseg,
tells the story of a 17th century warrior princess who fought alongside her husband against
Manchurian troops invading her country. Filmed entirely in Mongolia with local cast and crew, the
privately produced film depicts the Battle of Zuunmod where Anu died protecting her husband and
sons. It became Mongolia's highest-ever grossing film when it was released earlier this year.
Source: Screen Daily
FMG MONGOLIA FUND LOST 7.5% IN APRIL
Stocks continued their lackluster path on the Mongolian Stock Exchange in April. However,
favorable news came out towards the end of the month pushing stocks higher.

6. Parliament passed an amendment to its controversial foreign investment law (SEFIL) which should
allow some pending investment deals in the country to now progress. This SEFIL caused foreign
investment to fall by 17 percent in 2012 and a whopping 58 percent in the first two months of this
year. Foreign investments into the mining sector are crucial for Mongolia‘s future, so it was much
welcomed news.
Source: FMG Mongolia Fund
CAPITAL BANK JOINS IFC'S CORPORATE GOVERNANCE PROGRAM
International Finance Corp. signed an agreement with Mongolia's Capital Bank LLC to improve its
corporate governance practices.
IFC, the lending, advisory, and asset management arm of the World Bank, will assess the bank's
existing corporate governance practices and help align them with international best practices. IFC
will also advise and train directors, managers, and major shareholders in the key areas of board
functions, internal control and disclosure.
―Good governance will increase Capital Bank's operational efficacy and transparency,‖ said
Ariunbold Agvaanjamba, the bank's executive director. ―As a member of Bishrelt Holding Co., one of
Mongolia's largest trading and services companies, we are committed to bringing our corporate
governance practices to the next level to support Bishrelt's and our future growth.
Capital Bank is the third bank to join IFC's Mongolia Corporate Governance program, following
XacBank LLC and Khan Bank LLC. In partnership with Japan and the Netherlands, IFC has organized
training and consultations for more than 300 Mongolian companies and banks since 2009.
Source: International Finance Corp.
MONGOLIA TO ACCEPT JCB CARDS
The Bank of Mongolia has entered an agreement with the JCB International (JCBI) Co. Ltd., the
Japan Credit Bureau, and Trade and Development Bank (TDB) of Mongolia LLC with the signing of a
master license agreement that enables all merchants in Mongolia to accept JCB cards.
The Central Bank started setting up a countrywide payment network in 2010 to cater to the rising
demand for international and domestic payment card acceptance. TDB has had a partnership with
JCBI since 1994 and offered to act as the gateway to the JCB network.
―As we are aware, the Central Bank's role in the payment system is to promote its primary function
of providing payment, clearing and settlement service; in this context cashless payments are one of
the important functions for the financial system and the economy as a whole,‖ said Enkhbayar
Batshugar. He added, ―We believe that JCB card acceptance in the country will expand both
economic and financial cooperation between Japan and Mongolia.‖
The new agreement between JCBI and the two Mongolian institutions will significantly improve the
payment environment for JCB card members visiting the country. With the card acceptance made
wider through this deal, JCB is looking to start the card issuance with banks in Mongolia in the near
future.
Source: Japan Credit Bureau
OYU TOLGOI FUNDS NALAIKH VOCATIONAL SCHOOL CONSTRUCTION
Oyu Tolgoi LLC is leading the construction of a new technical school in the Nalaikh District of
Ulaanbaatar.
The school is one of three vocational schools over the next five years that Oyu Tolgoi plans to fund.
The school includes a 6,000 square meter vocational training facility, student dormitories, teachers'
residences, sport grounds, and a 2,500 person speaking hall. Oyu Tolgoi contracted Bats-Urguu for
construction. The foundation was laid in April 2012.
―Since the foundation laying ceremony at the school, our company has worked for 380 days or
850,000 man-hours, without accident or injury,‖ said Bats-Urguu. ―This achievement is a result of
what we have learned from Oyu Tolgoi's experience with safe operations and standards.
Source: Oyu Tolgoi LLC

7. ECONOMY
CHINESE GASOLINE IMPORTS ENTER MONGOLIAN MARKET
The first batch of 5,000-ton Chinese gasoline imports entered the Mongolian market last week on
Thursday.
The imports known as ―Mongolia No. 93 gasoline,‖ were part of an agreement reached earlier in the
year by the Mongolian government and the China National Petroleum Group, Mongolian officials
said. Under the cooperative project launched at the end of March, Mongolia will import a monthly
total of 10,000 tons of gasoline from a refinery using crude oil extract from Mongolia in Hohhot, the
capital of China's Inner Mongolia Autonomous Region.
More than 10 companies are currently exploring for oil in Mongolia, which has an estimated 1.6
billion tons of petroleum reserves. Russia has long been Mongolia's major oil supplier. Having
suffered acute oil shortages in recent years, Mongolia began to seek imports from China.
Source: Xinhua
POVERTY FALLS 6 PERCENTAGE POINTS IN 2012
The National Statistical Office reported poverty fell to 27.4 percent in 2012 from 33.7 percent the
year before.
The Statistical Office has been actively cooperating with the World Bank towards strengthening the
capacity of the statistical staff, improving the methodology used to estimate living standards and
poverty of the population, defining the methodology that can realistically demonstrate changes in
the livelihood of the Mongolian population, and jointly estimating their outcomes. For this aim, it
has cooperated with the World Bank to compile annual data for side-by-side comparison.
Source: World Bank
GOVERNMENT TARGETS EXPANDED AIRLINE CAPACITIES
The purchase of three Boeing planes to add to the fleet of MIAT Mongolian airlines will launch ―the
start of a new development era for Mongolia's air transportation,‖ said A. Gansukh, Minister of
Roads and Transportation.
The minister said the three planes, to be purchased for USD 240 million, will help improve
Mongolia's competitiveness for air transport and would benefit tourism to Mongolia. He said the
planes would allow MIAT to provide non-stop long-distance flights to destinations such as Thailand,
Singapore, India, Frankfurt, London, and Paris.
―After the approval of the railway policy, the development of air transportation became an
important issue because the development of an appropriate infrastructure supporting the economy
is essential to economic growth, industrialization, as well as national security,‖ said Gansukh.
The government approved in January a development plan for air transportation that will run until
2020 that also plans for a new international airport. The new airport is scheduled for commissioning
in 2016. Also another two airplanes are expected in 2016.
Source: Udriin Sonin
DEVELOPMENT BANK TO FUND APARTMENT HOUSING PROJECT
The Development Bank of Mongolia is set to provide a third of total investment for an apartment
housing project from the proceeds of last year's USD 1.5 billion Chinggis bond.
The project developers plan to build 5,000 apartment a year for a total of USD 40 million. USD 14
million would come from the Development Banks' bond funds. Plans are to construct the buildings
using environmentally friendly materials bought at bulk to cut down on costs. The materials for
walls reportedly will save space, are fire resistant and are designed to withstand earthquakes of up
to magnitude 9 on the Richter scale.
Source: Unuudur
ADDED COMPETITION FROM MONGOL-93 FUEL PUSHES DOWN ROSNEFT‟S PRICES
The entrance of the Mongol-93 type oil has pushed Rosneft to export its fuel products at a cheaper

8. price, said Mining Minister Davaajav Gankhuyag.
Mongolians will see Rosneft fuel at MNT 50 cheaper at the pump than today, beginning in June, as
the company tries to compete after the emergence of the new fuel product from China. The
Mongol-93 fuels are made from oils extracted in Mongolia and refined in China, and has taken up 20
percent of the A-92 market since its emergence last week. Mongolia is set to import fuels from
Rosneft at prices between USD 150 and USD 260.
―Up to 10,000 tons of petrol will be exported from China a month,‖ said Gankhuyag.
The new fuel type came out of a deal made with Chinese oil refiners to use oil extracted from the
Matad oil fields to create a Euro-2 standard. The program is part of a larger government effort to
reduce its dependence on Russia for oil products, as it sometimes is given to sudden price hikes and
unstable supply.
Source: Udriin Sonin
TWO STRONG NEIGHBORS FACE OFF FOR THE RAILS
High-ranking officials from China and Russia visited Mongolia between 8 and 12 May, both trying to
persuade Mongolia into a partnership for the development of its rail network.
Although Mongolia is for the moment settled on Russia‘s broad gauge standard for its rails, many are
arguing in favor of China‘s narrow gauge, which is also the international standard. Although
Mongolia‘s state policy is to adopt the Russian standard, a resolution passed by Parliament allows
some leeway for debate.
With each passing government, Mongolia has sought the opportunity to update its agreement
regarding its joint venture Ulaanbaatar Railway with Russia, but until now Russia paid those
gestures little mind. Russia hopes to hold onto its 51 percent ownership and participate in the
construction of new rails. When meeting with Altankhuyag, Yakunin voiced his concerns over the
stagnating activity regarding the construction of another rail line running from Erdenet to Murun
Soum. He asked Altankhuyag to set aside the differences between Mongolia and Russia for now and
give extra attention to cooperative construction of both railways.
Meanwhile, Yang Jiechi made his own case for Mongolia to cooperate with China. In the last five
years, China has already spent USD 182 billion for the expansion of its own railway network. The
closest link to Mongolia is the 833-kilomter Jinbao railway located between Beijing and the city of
Baotao, Inner Mongolia. Yang said China would allow Mongolia to use this rail path to reach new
markets such as Japan and Korea. However, the agreement would be based on the condition that
China be allowed to participate in the construction of Mongolia‘s railways and roads.
Although on the surface it seemed these officials were merely discussing the details concerning the
construction of a new railway, what was really on everyone‘s minds was the valuable Tavan Tolgoi
coal deposit. Both neighbors have the chance to win a more favorable outcome for themselves, but
only once can succeed and take home their Tavan Tolgoi prize.
Source: Mongolian Economy
A LIMPING ECONOMY
When will loan rates at Mongolian banks be reduced to the single digits? When the economy can
stand on its own two feet.
The engine of the economy is fueled by money. To be more specific, it is the free flow of money;
but a missing fuel tank has the economy continually running on empty. In a healthy economy,
surplus funds are divided up and sent for lending. Yet Mongolia has not yet been able to reach this
point because of a lack of capital. Although the company is making headway with its capital
market, attention to the need for a money market is noticeably absent.
Experience has shown that Mongolia‘s banks cannot fund long-term investment because they
operate on short-term resources. Furthermore, those banks provide loans only when there is
sufficient collateral, making it impossible for hundreds of thousands of people who do not own
property to start a new business.
The biggest capital account in Mongolia is the social insurance and pension funds, paid into with 10
percent deductions from everyone‘s salaries. However, there are no longer any reports on how the

9. pension fund is used. International experience shows that this money could be placed into private
pension funds which would allow employers to raise capital. Some examples of companies using
private pension funds in Mongolia are XacBank LLC, Golomt Bank LLC, and Wagner Asia Equipment
LCC. Although the government has established more than 30 specialized funds, no reports on
revenue and expenditures have been made to the public.
Mongolia is taking the right step with its new Securities Law, which is expected to soon come into
passage, but it should not overlook the need for legislation to establish investment funds.
Author Dambadarjaa “De Facto” Jargalsaikhan is an economist specialized in banking and the stock
market. He is a management consultant to banking and financial organizations, in particular in
strategic planning and competitiveness.
Source: UB Post
PROTECTING THE SAKER FALCON
Among rich fauna and species found in Mongolia is the iconic Saker falcon, which through
conversation management techniques is being protected and bred sustainably. One such effort is a
project providing 5,000 artificial nests throughout two districts in the country.
The initiative began in 2005 by the then Mongolian Ministry of Nature, Environment and Tourism,
the Wildlife Science and Conservation Center of Mongolia, the Environment Agency Abu Dhabi and
the Abu Dhabi Global Environmental Data Initiative. The sustainable management of Saker falcons
enables the trade of the species while minimizing threats to their survival in the wild. The process
also contributes to their conservation while benefiting local communities. The breeding population
of Saker falcons is increased using artificial nests.
Other special wildlife species found in Mongolia include the Prezelwalski horse and Gobi bear.
Source: UNEP
SMUGGLED DINOSAUR'S RETURN MAY BOOST MONGOLIAN PALEONTOLOGY
When Mongolia's most famous dinosaur, a relative of T. rex, returned home, it returned to a
homeland rich in dinosaur fossils, but with scant resources to display and study them. But there are
signs this dinosaur celebrity status—the Tarbosaurus skeleton made headlines as the subject of a
custody battle and federal smuggling case here in the United States—may help change that.
―We didn't have a single star who can be a representation of the whole paleontological heritage
that we have,‖ Oyungerel Tsedevdama, minister of culture, sports and tourism, said at a
repatriation ceremony for the fossil. ―That's why [the dinosaur] became like a hero that fascinates
everyone and just awakened the Mongolian public to learn more about paleontological heritage of
the country.‖
The dinosaur returned to a country with no dedicated dinosaur museum, only three doctorate-level
paleontologists, and no university-level courses on paleontology. However, Mongolian officials have
plans to change all this. Currently one museum in Mongolia, the Natural History Museum, displays
dinosaur fossils, but is old and at risk of collapsing, Oyungerel said. One of Mongolia's three
paleontologists, the youngest and the only one trained in the United States, Bolortsetseg Minjin, has
been tapped as assistant director for a new museum and its chief paleontologists.
The new museum will register all Mongolian dinosaurs, including those sent abroad on loan.
Umnugobi Aimag is also interested in establishing a museum commemorating the expeditions by the
paleontologist Roy Chapman Andrews in the 1920s, and there is also discussion of a national
dinosaur park, she said.
Involving Mongolians, or any local people, in research based in their country is a moral imperative,
since the work is being done on their property, said Clyde Goulden by email. Goulden initiated the
Khuvsgul project and serves as director of the Academy's Asia Center. It also makes for better
science by deploying more researchers to explore and test hypotheses, he wrote. ―Who else can do
a better job of that than the scientists who live nearby and can continuously study and explore.‖
Source: LiveScience

10. JAMES PASSIN'S STORY
James Passin has at least USD 130 million in three funds that he oversees for his employer, Firebird
Management, a Manhattan firm that specializes in emerging markets. He controls four companies
listed on the Mongolian Stock Exchange—in coal, fluorite, and real estate—as well as an undisclosed
number of private enterprises. His placements make Firebird one of Mongolia's largest and most
diversified foreign private equity funds.
In the last year the Mongolian government decided to redraw its policies on mining and foreign
investment. That includes the Strategic Entities Foreign Investment Law (SEFIL), which barred
certain transactions initiated by foreign companies without government approval, and a draft
Minerals Law that would introduce tougher regulations and higher taxes while possibly giving the
government free stakes in many mines. Among Mongolians, the new laws and disputes over key
projects such as the Oyu Tolgoi copper-gold mine reflect a fateful debate: Are foreign companies
and investors grabbing too much, swiping the nation's birthright?
Yet Passin is predicting a boom: ―I think a multi-year bull market is starting.‖ Passin's successes
with companies such as Sharyn Gol, a major open-pit coal miner that he brought from a valuation of
USD 8 million to USD 280 million in 12 months, spoke for themselves. However, although Sharyn Gol
plans to ramp up production from 3,000 tons a day to 15,000, it's not clear how much it will earn
Sharyn Gol's investors. A depressed international coal market and a slowing economy in China,
Mongolia's main trade partners, have eroded Passin's portfolio. From a high of USD 280 million,
Sharyn Gol's market cap has fallen to USD 60 million in two years.
But Passin's abiding confidence in Mongolia continues to set him apart. He believes much of the
country's wealth remains untapped.
―I think there could be three, four OTs just waiting to be discovered in the desert.‖
Source: Bloomberg BusinessWeek
GOLD SEEN CRUSHED AS CREDIT SUISSE FORECASTS USD 1,000 IN YEAR
Gold, down 17 percent since January, is poised to lose 20 percent in a year as inflation fails to
accelerate and with the worst risks to the global economy waning, Credit Suisse Group AG said.
Gold will trade at USD 1,100 an ounce in a year and below USD 1,000 in five years, according to Ric
Deverell, head of commodities research at the bank. Lower prices are unlikely to lure more central-
bank buying, said Deverell, who worked at the Reserve Bank of Australia for 10 years before joining
Credit Suisse in 2010.
―Gold is going to get crushed,‖ Deverell told reporters in London today. ―The need to buy gold for
wealth preservation fell down and the probability of inflation on a one- to three-year horizon is
significantly diminished.‖
Combined gold reserves held by central banks have risen to an eight-year held high as nations from
Russia to Kazakhstan to Mongolia expanded holdings, the International Monetary Fund data show.
―When gold is going up, it looks like a great idea to buy more gold,‖ Deverell said. ―And when it‘s
going down, do you really think risk-averse central bankers are going to try and catch the knife?
No.‖
Gold has the worst 12-month outlook among commodities and will trade below $1,400 in a year,
according to investors polled by Credit Suisse in London on 15 May. Goldman Sachs Group Inc. said
23 April bullion may slide to $1,390 in 12 months, and Deutsche Bank AG predicts a drop to as low
as USD 1,050.
Source: Bloomberg
DON'T PANIC, IT'S JUST THE MINING CYCLE
It's not the end of the world, it's a mining cycle.‖ So said analysts of BMO Capital Markets in a
recent note that though it sought to soothe client fears, still warned of pressure in the industry
over the medium-term.
It‘s true: times are hard for mining investors. It's exactly why Mick Davis decided not to serve out
his six months as interim chief executive of the newly created Glencore Xstrata PLC. Much has been
made of how Davis, and his school chum, Ivan Glasenberg, of Glencore fell out over the USD 30

11. billion merger of Glencore Xstrata. The fact is, however, that Davis' departure tells more about the
mining cycle than his friendships. In 2002, Davis bought unloved coal assets out of Glencore for USD
2.5 billion in a transaction that formed the basis of Xstrata. History is repeating itself.
A study produced by United Kingdom-listed engineering group Fenner PLC highlights how the mining
cycle tends to work. According to Numis, another U.K. Broker, the mining world is currently at
stage one with falling commodity prices placing pressure on capital projects as well as operating
capex.
―Even a modest decline in GDP in industrial and manufacturing countries can often lead to double-
digit changes in industrial metal demand,‖ Numis said.
It is also borne out by the actions of the industry's shape shifters of which Davis is one. Robert
Friedland, who is largely responsible for the Oyu Tolgoi copper-gold project which is expected to
soon begin commercial export, is another. The Canadian entrepreneur last year listed his IvanPlats
Ltd. on the Toronto Stock Exchange where it will be used to raise the millions of dollars in funds to
develop a copper-cobalt mine in the Congo, and a platinum mine in South Africa.
Source: Mining MX
SURGING CHINESE STEEL EXPORTS PUT PRESSURE ON WORLD PRICES
A surge in Chinese steel production and a flood of exports are pressuring worldwide steel prices
despite Beijing's efforts to rein in the industry, in the latest example of the global impact of China's
massive industrial overcapacity.
Data from state-backed data provider Custeel showed Chinese steel output surged 8.4 percent in
April compared with a year earlier to 65.7 million metric tons, its second-highest level ever. China's
steel production reached its latest high in March at 66.3 million tons, rising 7.7 percent from the
year before. The rise comes despite softer-than-expected first-quarter economic growth in China
and other sluggish economic readings in recent months.
―It's creating a tsunami effect on the global steel industry that is pressing on prices everywhere,‖
said Chicago-based steel analyst Michelle Applebaum. ―I assume the Chinese are just waiting for
other regions to file trade suits, and they know they will simply have to stop at that point, because
if Beijing is doing anything to rein in the overproduction, they are doing it invisibly.‖
Global steel prices have fallen 3.5 percent since February to an average USD 710 a ton, according to
MEPS steel consultancy. As China is putting increasing public pressure on steelmakers, mills say they
are falling in line. State-controlled Baosteel Group Corp. ―is no longer chasing output but focusing
on raising value and innovation,‖ said Menge Haibiao, spokesman for the bellwether mill.
The government has been under rising pressure to control steel output since toxic smog triggered a
public outcry early this year. China's Ministry of Industry and Information Technology in January
vowed to step up the pace of mergers in polluting industries including steel. The country's bloated
steel sector, with slightly more than 1,000 mills, is a Mao-era legacy when China sought self
sufficiency in major industrial materials. But the fragmented industry has become subject to
frequent boom-bust cycles, churning out products during spells of higher prices that then bogs the
market down.
Source: Wall Street Journal
CHINA RAILWAY PLANS USD 3.25 BN BOND AUCTION
The newly formed China Railway Corporation will make its capital market debut with the sale of
RMB 20 billion (USD 3.25 billion) in bonds this week, raising funds that are needed to get the
country's ambitious railway plans back in gear. The issuance comes as Mongolia looks to put money
towards its own rail network that will link with rails in China.
The bonds are the first batch of the RMB 150 billion in notes that China Railway is expected to issue
this year as it forges ahead with a blueprint to lay about 30,000 kilometers of new tracks over the
next decade. The bonds are the first batch of the RMB 150 billion in notes that China Railway is
expected to issue this year as it forges ahead with a blueprint to lay about 30,000 kilometers of new
tracks over the next decade.
The issuance of Chinese rail bonds is a frequent and normally unremarkable event, but this is

12. different since it is the first bond sale by China Railway since its establishment earlier this year.
Beijing disbanded the country's once-powerful railway ministry in March after it was hit by a
succession of corruption and safety scandals, including a bullet train crash that killed 40 people in
2011. The government split the ministry's functions in two, one of which was China Railway, the
main national rail operator. China Railway is expected to function like a corporate entity,
publishing more detailed financial statements. It will eventually also face competition, but remains
state owned and the government has said it will fully backstop all its debt.
Lianhe Credit Rating rated China's Railway's bonds AAA, citing the company's dominant position in
the country's fast-growing rail industry. However, China Railway inherited all the liabilities of the
former rail ministry. Debt levels have steadily risen in recent years, from 57.4 percent of total
assets in 2010 to 62.3 percent at the end of the first quarter.
Nearly RMB 55 billion was spent on new rail lines in the first quarter, up 28 percent from a year
earlier. China Railway has budgeted RMB 650 billion overall for investment this year.
Source: Financial Times
CHINA TILTS BACK TO BIG SPENDING
A more detailed look at the economic performance of China, Mongolia's largest trade partner, in
2012 shows it tipped further off balance, relying more than ever on credit-fueled investment, a
trend it had tried to rein in.
A further tilt toward capital spending flies in the face of Beijing's goals to shift to a consumption-
driven economic model and threatens to add to a mounting debt problem, exacerbate industrial
overcapacity that is dragging down profits, and produce more empty ―ghost cities.‖ The share of
fixed investment in China's gross domestic product (GDP) rose to 46.1 percent in 2012, up from 45.6
percent in 2011. China's headline GDP data have been available for some time, but the detailed
breakdown between the shares of investment, consumption, and exports has only been published
this week
―Re-balancing the economy is the essential challenge facing the Chinese government, but they have
not made any progress over the last year,‖ said Mark Williams, China economist at Capital
Economics.
In the first four months of 2013, there were signs that the structure of the economy was moving in
the wrong direction. Growth in disposable income from urban households slowed while a
clampdown on official excess dented growth in retail sales. Economists say excess reliance on
investment as a driver of growth is a key risk from the world's second largest Economy. China's
leaders have pledged to expand consumption.
The signs of excess investment are evident in China's steel sector, where overcapacity has futures
prices on the Shanghai exchange near record lows. In the real estate sector, excess investment has
poured in, with ghost towns of unsold property springing up around the country.
―Investment has already slowed to around the same growth rate as the rest of the economy,‖ said
Dragonomics China analyst Andrew Batson. ―Investment growth will keep slowing, but the
government wants to avoid a sharp slowdown that would lead to a collapse in overall growth.
Source: Wall Street Journal
JAPAN COPPER BUYERS NOT SEEKING ALTERNATIVES TO CLOSED INDONESIA MINE
Japanese buyers of copper ore from Indonesia's Grasberg mine have stockpiles at the closed mine
and a port in the area, and have no immediate plans to buy from other suppliers, a mining industry
association in Japan said on Wednesday.
Freeport McMoRan Copper and Gold Inc. said on Wednesday it would not restart production at the
Grasberg mine, the world's second-largest copper mine, until it is convinced of the mine's safety.
The mine was closed a week ago after a tunnel collapse killed 28 workers. Hiroshi Yao, chairman of
Japan Mining Industry Association (JMIA), said the accident will have little impact on the semi-
annual talks with major miners on treatment and refining charges (TC/RJ) that are due to start in
June.
―I don't think the conditions of the TC/RC negotiations will worsen because of this incident as total

13. [global] production capacity is on the rise due to additional output coming from new mines such as
Caserones in Chile and one in Mongolia,‖ said Yao, who is also president of Mitsubishi Materials
Corp.
The copper market is expected to be in surplus in the second half of this year, swinging away from
several years of deficit supplies as top global miners boost output. Japan's JX Holdings is set to start
output of copper concentrate from the Caserones mine in Chile in the October-December period.
Indonesia accounted for about 7 percent of Japan's total copper ore imports last year. About half of
Japan's Indonesian supply comes from the Grasberg mine, according to JMIA.
Source: Reuters
LSE SEEKS PARTNERS, NOT ACQUISITIONS
The London Stock Exchange (LSE) said it was seeking partnerships with fast-growing exchanges such
as the Mongolian Stock Exchange to boost its revenue, shunning pressure to consolidate further.
Exchanges are looking to buy each other due to falling trading volume in an uncertain economic
climate and increased regulation, which are squeezing profits. The LSE, which earlier this month
acquired a majority stake in London clearing house LCH.Clearnet, is trying to diversify its revenue
and cut costs to protect profits. Earlier this month Turkey's deputy prime minister said his country
was in talks with the LSE and NASDAQ about a partnership which could involve it selling a stake in
return for technology support.
―We are always looking to build significant partnerships with fast-growing exchanges,‖ LSE Chief
Executive Xavier Rolet told reporters on a conference call, declining to comment specifically on any
talks with Istanbul.
Technology services are seen as one area, along with clearing and data, which will help exchanges
sustain profits if trading levels stay low, as expected.
The LSE already has several tie-ups in place worldwide. In January the LSE agreed to a technology
partnership with the Lima exchange, and is helping to develop the stock exchange and capital
markets infrastructure in resource-rich Mongolia. Its 2011 acquisition of index provider FTSE
International, which listed Mongolia's capital exchange on its ―markets watch list‖ for frontier
markets, helped the LSE increase revenue from information services in the year to 31 March by 40
percent.
―LSE's diversification strategy is showing its benefits,‖ Peter Lenardos, analyst at RBC Capital
markets said in a note.
Source: Reuters
POLITICS
MPP CLAIMS CASE AGAINST ELBEGDORJ
The Mongolian People's Party (MPP) has lodged a complaint against President Tsakhia Elbegdorj with
the Authority for Fair Competition and Consumer Protection for appearing on television before
Mongolian law allows for campaigning.
The MPP said Elbegdorj violated Mongolian law by appearing on a popular television program on 17
May, six days before national campaigns could commence. According to Article 33.1 of the Law on
the Election of the President, the official campaign season began on 22 May.
Source: News.mn
FORMER YOKOZUNA JOINS DP
Former sumo yokozuna Dolgorsuren Dagvadorj announced his entrance into politics with the
Democratic Party (DP). Dagvadorj, who is known throughout the world by his Japanese name
Asashoryu, received his membership certificate from Minister of Industry and Agriculture Khaltmaa
Battulga at the DP headquarters building.
―I have been in favor of democracy since a very young age,‖ Dagvadorj. ―I have personally
supported democratic efforts and DP policy since 2000.‖

14. Dagvadorj turned to business after retiring from wrestling. His brother, D. Sumiyabazar, was
elected as an MPP candidate for the Uvurkhangai Aimag electoral district, 11 months after election
due to a dispute over the results.
Source: News.mn
BILL TO ALLOW INVESTIGATION INTO BANKING TRANSACTIONS ABOVE MNT 20 MILLION
Parliament is discussing a bill that would expand government authorities to investigate possible
laundering scams.
The law would grant government officials the authority to investigate any transaction above MNT 20
million, which is reportedly a standard practice internationally. Additionally the Bank of Mongolia
can review previous transactions and report on any suspicious information found. The Central Bank
reported 1,148 suspicious transactions from between 2008 and 2013, 190 of which were sent to
legal authorities for review.
Source: Unuudur
PREMIER SUMMARIZES PLANNED SPENDING FOR CHINGGIS BOND
The government is still deciding on how to spend a remaining USD 347 million from the USD 1.5
billion Chinggis bond sold last year that has not been allotted toward any project, said Prime
Minister Norov Altankhuyag in a report on bond spending to Parliament on Friday.
The government has committed USD 50 million for the construction of a USD 450 megawatt power
station at the Tavan Tolgoi coking coal mine, USD 200 million for the renovation of roads, USD 200
million on the country's rail network, MNT 570 billion for the construction of paved roads to connect
Ulaanbaatar with 12 additional provincial capitals, USD 68.8 million for investment into the
cashmere industry, USD 200 million for a so-called ―New Development Project‖ [details no included
-ed], USD 27.7 for investment in the dairy industry, USD 45 million for investment in the wool
industry, USD 13.5 million for investment into the garments industry, and USD 14 million for an
apartment housing project.
MP Ch. Khurelbaatar, speaking on behalf of the Mongolian National Democratic Party, criticized the
government for raising the funds before having a detailed plan for spending. He added that the
government's practice of spending the funds off budget was in violation of Mongolian law. Finance
Minister Chultem Ulaan responded that the funds came after the 2013 budget was approved and it
would not have been possible to transfer that money from the Development Bank to the State
Budget account.
Altankhuyag also responded to criticisms, saying the spending on roads was a sound investment. He
added that a previously agreed upon sum that would have gone to the planned Sainshand industrial
park was rejected after it was determined that foreign investment would provide the necessary
funds.
Source: Udriin Sonin
MNT 900 BN FROM CHINGGIS BOND LOANED TO COMMERCIAL BANKS
An additional MNT 50 billion from the proceeds of last year's USD 1.5 billion Chinggis bond sale was
placed in an interest bearing back account on 10 May.
The additional funds makes it a total of MNT 900 billion loaned to commercial banks in Mongolia in
return for 7 percent interest to the Bank of Mongolia. The central bank said the cash injection
would help provide banks further liquidity for lending during this period of increased activity.
Source: Unuudur
CABINET APPOINTS NEW GENERAL INTELLIGENCE AGENCY CHAIRMAN
The Cabinet of Ministers appointed B. Ariunsan as the new chairman of the General Intelligence
Agency.
The Cabinet selection of Ariunsan replaced D. Gerel on 18 May. The new chairman is a former
director of the General Office of Social Welfare Service, deputy head of the General Department of
Taxation, deputy minister for the dissolved Mineral Resources and Energy and deputy chairman of

15. the General Intelligence Agency.
Source: Info Mongolia
ELBEGDORJ MEETS POLISH SENATE MARSHALL
President Tsakhia Elbegdorj met with Poland's Senate Marshall Bogdan Borusewicz on 20 May.
Borusewicz said Mongolia's democratic transition had been a success, noting that Poland had sent a
delegation for the seventh ministerial meeting of the Community of Democracies. He said Poland
was interested in learning from Mongolia's experiences and that his country was interested in
expanding both military and economic ties.
―...[W]e have experience participating together in peacekeeping missions,‖ said Borusewicz.
Elbegdorj said their two countries had the same aims and values, saying that he was glad to receive
in his Mongolian ger a friend who had contributed to the fight for democracy and liberty in Poland
as well as Europe. Elbegdorj said Mongolia was also interested in strengthening economic
cooperation, particularly to attract Polish business to Mongolia through a credit mechanism. He also
said it would be possible to strengthen military cooperation.
Source: Montsame
FORMER KUWAITI AMBASSADOR ACCUSED OF SPYING FOR KAZAKHSTAN
The General Intelligence Agency confirmed that a former Mongolian ambassador to Kuwait is being
investigated for high treason.
The investigation began following the publication of files from a web site published months ago that
showed former Ambassador K. Sairaan delivering information to Kazakhstan as the report identifies
a number of agents. Sairaan is suspected of reporting under the codename Altai.
The former ambassador is suspected to be an agent of Kazakhstan from the Barlau intelligence
agency. If found guilty, he could be imprisoned for 15 to 20 years.
Source: Unuudur
MONGOLIAN ARTIST DEBUTS IN THAILAND
One of Mongolia's distinguished painter's, Ch. Khurelbaatar, debuted in Thailand last week on
Thursday an oil painting exhibition at the Fine Art Gallery of Bangkok.
This exhibition is mounted with participation and support of the Mongolian Embassy in Thailand, the
Mongolian National Chamber of Commerce and Industry (MNCCI), the Thailand's Serindia Gallery and
companies such as APU, Khaan Khuns, and Thailand's Banpu.
The ambassador underlined that this exhibition is mounted before the 40th anniversary of the
Mongolia-Thailand diplomatic relations to be marked in 2014, and noted its importance to
propagate each other's cultures and arts.
The exhibition runs until 30 June.
Source: Montsame
IACA AT THE COMMUNITY OF DEMOCRACIES MEETING
The International Anti Corruption Academy's dean, Martin Kreutner, participated in the seventh
Ministerial Conference of the Community of Democracies in Ulaanbaatar in April.
That event witnessed widespread international participation from more than 100 countries,
including heads of government, foreign ministries, and civil society leaders. The fight against
corruption and the call for enhancing integrity was a prominent component of the conference itself.
During the Parliamentary Forum for Democracy, which focused on deliberating the effects of
corruption, Kreutner spoke of IACA's role in capacity building and strengthening democracy both as
a technical assistance provider and educational institutions. The participants developed a five-point
plant for parliamentarians to address corruption, also explicitly calling on governments to
strengthen their links of cooperation with IACA.
Kreutner was also the chair of the high-level thematic session, Corruption and Other Threats to
Democracy, which featured Mongolian Justice Minister Temuujin Khishigdemberel, Georgian Vice
Minister Tamar Beruchashvili, and Nobel Peace laureate Aung San Suu Kyi.

16. ―Democracy is all about fair prospects and participation, equity, justice, the rule of law and
governance,‖ said Kreutner, in summary of the presentations and interventions. ―Corruption is not
the only threat to socio-economic and democratic development and prosperity, but it is
undoubtedly among the most severe and devastating ones. It is simply a democracy killer.‖
Source: International Anti Corruption Academy
HOW A TEXAS LAWYER WRANGLED A MONGOLIAN TYRANNOSAURUS
A victory in civil and criminal litigation over the New York City auction of a smuggled Tyrannosaurus
baatar skeleton last year has taken Texas lawyer Robert Painter to Mongolia, where evidence was
collected in the Gobi desert, and from his Houston law office to a Dallas judge's home, on a
Saturday morning, where Painter filed an emergency civil suit and obtained an ex parte temporary
restraining order.
―To me, that was the hardest part of the whole case, getting a judge on the weekend,‖ said
Painter, explaining that he had been put in touch by friends of the judge after he reached out to
contacts in Dallas.
The auction company initially went ahead and sold the smuggled Mongolian fossil for a little over
USD 1 million, but Painter had gone to the auction in New York himself with a professional
photographer to publicly object to the sale and then videotaped it as it proceeded. This helped
spark extensive news coverage, which resulted in phone calls from the buyer, who no longer wanted
any part of the transaction, and the U.S. Attorney's office in Manhattan, which offered its help in
seeking the forfeiture of the Tyrannosaurus skeleton.
At one point, when it turned out that an individual suspected of smuggling the skeleton to the U.S.
was staying in the same hotel as a team of experts brought in to inspect it, during the forfeiture
proceeding, someone snapped a photo of the suspect who was later identified in Mongolia as
someone who had dug for dinosaurs in the Gobi Desert, Painter said.
A ceremony was held in New York earlier this month for the send off of the skeleton back to
Mongolia and Painter was awarded Mongolia's top civilian order, the Order of the Polar Star, for his
help in its return.
―Just a year ago, we started out to stop the sale of one smuggled Tyrannosaurus skeleton,‖ Painter
said in an email. "We ended up uncovering the largest dinosaur smuggling ring ever discovered, and
have helped to return over 30 significant dinosaur fossils to the people of Mongolia."
Source: ABA Journal
NEW MONGOLIAN LAW
The following law was published in the latest weekly Government bulletin. Unless otherwise
decided by Parliament, they will take effect ten (10) days after publication.
Date Law
20.05.2013 Law on Ratification of Amendments to Negotiation
Please visit BCM's website, Legislative Working Group, for a summary of new Mongolian laws. BCM
members who wish to access complete versions of the laws and regulations in Mongolian language
are welcome to email the BCM office: info@bcmongolia.org.
ANNOUNCEMENTS
MONGOLIA RENEWABLE ENERGY FUTURES & GREEN DEVELOPMENT, JUNE 4, UB
Mongolia Renewable Energy Futures & Green Development will be held on 4 June in Ulaanbaatar.
BCM is supporting this conference and its members will receive a 10 percent discount for admission.
Selected to be part of the United Nations Environment Program‘s events to promote the 2013 World
Environment Day, Mongolia Renewable Energy Futures & Green Development will demonstrate to

17. the world Mongolia‘s commitment to the environment and clean, renewable energy. Keynote
addresses from distinguished local government officials, senior industry executives and noteworthy
speakers from throughout the region will reveal and promote emerging green energy development
opportunities. This one day event on June 4th will take place at Salkhit wind farm, Blue Sky Tower
and the Mongolia State House, with a limited attendance to invited VIP diplomats, government
officials and partners of ORRO.CO.
Contact chris@orro.co for more information and remember to let him know that you are a member
of the Business Council Mongolia to get a special 10% discount.
___________________________________________
COAL PROCESSING & MINING TECHNOLOGY EXPO, 4-5 JUNE, ULAANBAATAR
The Coal Processing & Mining Technology Expo will be held in Ulaanbaatar from 4 to 5 June 2013.
The expo is co-located with the Transportation & Logistics Expo, and because of this co-location you
will be able to meet with a more diverse and broader group of attendees. With many international
as well as local Mongolian companies already signed up to exhibit, you will be a part of what is
becoming the premier event for the mining and transportation industries serving Mongolia.
BCM members will receive a special 10 percent discount. To register and receive your discount
email Saruul at saruul@bcmongolia.org. For more information about the exhibition, contact Glenn
Scott atgscott@uexpos.com or visit the website coalexpomongolia.com.
___________________________________________
COALTRANS MONGOLIA, 19-20 JUNE, ULAANBAATAR
The Coaltrans Mongolia conference will be held at the Blue Sky Tower from 19 to 20 June. BCM
members will receive a 15% discount to attend the event, please use the discount code BCM.
Coaltrans Mongolia will explore the development of coal projects in the country and offer an insight
into what level of influence Mongolia will have over future international coal prices. Join us as we
return to this exciting market for the third year, to have an impact on how this new coal frontier
evolves and cement your position as a leading player in the market.
Speakers will include Batsuuri Yaichil, chief executive officer of Erdenes Tavan Tolgoi LLC, Graeme
Hancock, president and chief representative of Anglo American Development, and Bayanjargal
Byambasaikhan, chairman of the Business Council of Mongolia.
For more information, email coaltrans@euromoneyplc.com.
___________________________________________
FUTURE MONGOLIA, 19-22 JUNE, ULAANBAATAR
The Future Mongolia international trade fair will be held at the Buyant Ukhaa Sport Palace in
Ulaanbaatar, near the Chinggis Khaan International Airport, from 19 to 22 June, 2013.
After the successful premier with nearly 100 exhibitors from 14 nations and some 4,200 visitors, we
cordially invite you to the second Future Mongolia. This international trade fair offers the
opportunity on an enlarged exhibition space to present modern and sustainable solutions and
responses to the present needs of Mongolia and its population.
BCM members will get 5% discount on raw space. Please contact Saruul at saruul@bcmongolia.org to
get a special discount code. For more information, visit Future-Mongolia.com.
___________________________________________
“MM TODAY” on MNB-TV, Friday, 19:00-19:10
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:00 to 19:10 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
___________________________________________

18. BCM‟S MINING SUPPLY CHAIN DATABASE
The new version of BCM‘s Mining Supply Chain Database is in use. Following the initiative of Oyu
Tolgoi LLC, the BCM has maintained the Mining Supply Chain Database since March 2009. It is an
honor to introduce you to the new version of the database which is totally upgraded as to its
content and use of information technology opportunities.
As of December 31, 2012 suppliers registered on the database totaled 1,405. During 2012, 251 new
supplier entities joined the Database and 236 prior supplier registrants updated their company
profiles. In addition, 22 buyers were also registered and 82 tender announcements were posted.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration—FREE!
If you have any questions regarding the database, please contact 317027.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks
and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the
Business Council of Mongolia (BCM) and UB Risk Management Consulting:
• Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн
засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,
ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын
19
• Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,
Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ
ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага
хурал, 2013 оны 4 дүгээр сарын 19
• Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,
Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын
албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,
СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4
дүгээр сарын 19
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available.
• The growing role of financing backed by Export Credit Agencies (ECA) within the Mongolian
market, Hakan Aksünger Senior Regional Manager at Financial Institutions Dept. and responsible for
Mongolia at the 2nd Mongolia Trade and Commodity Finance conference, May 14, 2013, Chinggis
Khan Hotel
• Mongolyn Alt Corporation, Tselmuun Nyamtaishir, Vice President of Trading & Investment
Department at the 2nd Mongolia Trade and Commodity Finance conference, May 14, 2013, Chinggis
Khan Hotel
• Introduction to Panel Discussion: The Role of Multilateral Institutions in Developing External
Trade, Marco Nindl, Associate Banker EBRD at the 2nd Mongolia Trade and Commodity Finance
conference, May 14, 2013, Chinggis Khan Hotel
• Global Trade & Supply Chain Solutions, International Finance Corporation at the 2nd Mongolia
Trade and Commodity Finance conference, May 14, 2013 Chinggis Khan Hotel
• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting
April 22, 2013
• Brian White, Editor, The Mongolist – ―Analyzing Mongolian Politics from the "Middle Layer", at the

19. BCM Monthly meeting Apr 22, 2013
• Ch. Otgochuluu, Head of Strategic Policy and Planning Department, Ministry of Mining, ―Brief
introduction on mining policy‖ at the BCM monthly meeting Apr 22, 2013
• ―The current flow of investment into Mongolia‖, S. Bold, Chief Economist, Central Bank, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• ―About regulation on FDI‖, S. Javkhlanbaatar, Foreign Investment Regulations and Registration
Department Head, Ministry of Economic Development of Mongolia, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• ―Legal issues of regulation of foreign investment‖, B. Amarsanaa, Academic Secretary of National
Legal Institute, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference
on April 19, 2013 at the Kempinski Hotel.
• ―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, D. Gan-Ochir, Head
of Financial Stability Council, Advisor to President of Central Bank, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• ―On current state of equities foreign investment‖, D. Achit-Erdene, CEO, MICC, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• ―Market Update‖ by Mandal General Insurance LLC
• ―Annual Report 2012‖ by International Monetary Fund
• Ruth Pulaski, Director Marketing & Development, American University of Mongolia – ―American
University of Mongolia: Integrating a Liberal Education Approach to Learning‖ at the BCM monthly
meeting, March 25, 2013
• B. Bayar, Managing Director, ELC LLC – ―Update on Legal Developments Regarding Foreign
Investment‖ at the BCM monthly meeting, March 25, 2013
• Tony Burchill, Australian Consul-General & Trade Commissioner, Austrade – ―The Business of Being
a Third Neighbor‖ at the BCM monthly meeting, March 25, 2013
Other recently added presentations:
• Dr. Brian Fisher, Managing Director, BAEconomics, "Economic Impact of draft Minerals Law" at the
Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Dr. Ch. Khashchuluun, CEO of UBRM Consulting, ―Mongolia and Mining, The policy evolution:
What's the next?‖ at the Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Martin Pow, Partner, Enterprise Risk Services and Learning Leader, Deloitte Onch LLC, ―Black
Swans: Fact or Fiction,‖ A different risk management philosophy at the BCM Risk Management
Working Group meeting, March 14, 2013
The following 3 presentations were added from Coal Mongolia, 21-22 February:
• ―Current state of coal sector of Mongolia and future trends‖ by Minister of Mining D. Gankhuyag at
the Coal Mongolia 2013, Feb 21, SS Convention Center, Ulaanbaatar;
• ―Economic Reform Objectives‖ by Vice Minister, Economic Development, H.E. Mr. O. Chuluunbat
at the Coal Mongolia 2013, Feb 21, SS Convention center, Ulaanbaatar;
• ―Presentation for Coal Mongolia 2013‖, Norihiko Kato, CEO of Khan Bank, Feb 21 at the SS
Convention Center, Ulaanbaatar, Mongolia.
• Presentation by Bold Baatar, CEO of Altan Dornod Mongol, ―Mongolian Mining Investment
Environment‖ at the Mining Industry Open Discussion, February 1, 2013, at Kempinski Khan Palace
Hotel.
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following: ―Polit Barometer April, 2013‖ by Sant Maral
Foundation; ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International Monetary
Fund; ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and Development
(EBRD); the ―Official statement of Oyu Tolgoi LLC in relation to information, data and facts related

20. to Oyu Tolgoi discussed during open session of the State Great Khural‖, dated 1 February, 2013‖;
―2013 Mongolia Investment Climate Statement‖, by the Economic and Commercial Section of the
U.S. Embassy; ―Mongolia Foreign Labor Force Ratio for 2013‖ by Hogan Lovells International LLP;
―How Mongolia will perform in 2013?‖ by Mandal Asset Management; ―Mongolia Business Owner and
CFO Survey result‖ by BDSec JSC; ―The fiscal regime for mining-a way forward‖ by IMF Fiscal Affairs
Department; ―Taxes for Expatriates in Mongolia‖ by PricewaterhouseCoopers.
BCM's English website includes the ―Mongolia Business News‖ section where the Open Letter to
Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 5th Anniversary BCM Gala dinner on November 5.
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
___________________________________________
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,152 fans on our Facebook fans page, 1,236 connections on LinkedIn network, and
689 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn.
BCM WORKING GROUP MEETING
The BCM Education Working Group met on Tuesday, May 23, with 19 members attending.
Moderator: Saha Meyanathan.
New Member: Jeanne Bartholomew, Sustainability East Asia, was welcomed.
Participants: Bolormaa G and Orkhon G from Ministry of Education, Tuya T from VETC NGO, Satsuki
Majima and Gerelyuya Ts from Save the Children.
Speakers and topics:
1. Inclusive Growth and Employability - Saha Meyanathan
2. Business Education & Career Guidance Program for high-school age children in Mongolia - Mituki
Toyada, Save the Children
3. International Finance Corporation - Tuyen D.Nguyen
4. Introduction of Wagner Asia Equipment Training Department - Battulga B.
5. SDC‘s interventions in support of inclusive growth, life skills, youth programs and employability -
Diepak Elmer
6. Mercy Corps activity - Jennifer Bielmen
7. Cooperative Vocational Training in the Mineral Resource Sector in Mongolia - Pascal Houben,GIZ
8. Building Mongolian Talent Pipeline - Enkhbaater D, OT LLC

21. 9. Skills for Employment Project Preparatory Technical Assistance - Melanie Stallen, ADB-PPTA
10 Update of VDMA - Klaus Stockmann
All presentations are available on BCM‘s Education Working Group web page.
Please contact:erka@bcmongolia.org
ECONOMIC INDICATORS

25. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
April 30, 2013 *10.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 9.8% y-o-y, Ulaanbaatar city, April 30, 2013
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
CURRENCY RATES – MAY 23, 2013
Currency Name Currency Rate
US dollar USD 1,440.38
Euro EUR 1,863.42
Japanese yen JPY 14.01
British pound GBP 2,181.10
Hong Kong dollar HKD 185.60
Chinese Yuan CNY 234.90
Russian Ruble RUB 46.16
South Korean won KRW 1.29
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.