The document provides news highlights from the Business Council of Mongolia covering business, economic, and political topics. It also announces an upcoming monthly meeting of the Business Council of Mongolia to feature presentations on vocational education training and a hospital in Bangkok, as well as an embassy update. The meeting will allow both in-person and teleconference attendance.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmmongolia.org
Email: info@bcmmongolia.org Issue 39, September 26, 2008
NEWS HIGHLIGHTS:
Business: Mongolia slips 3 places in corruption ranking; SouthGobi begins exporting coal to
China; Khan Bank support to distressed herders; Khan Resources to build power line
to Dornod mines; Trade teams to attend Ohio festival; Ivanhoe cash award for
Paralympics medalist; The art of marketing art; Another meeting on responsible
mining; Tour of uranium mine sites.
Economy: Mongolia moves up to be ranked the world’s 62nd
freest economy; Russia hints it
will lower petrol export tax; Tourist arrivals grow 35% in 7 years; Mongolia asks EU
to extend preferential status; ADB aid for 3-year food program; Central Bank head
signs agreements in Russia; Harvesting slower than usual; No decision on wage
raise.
Politics: New Cabinet takes office; Profile of D. Zorigt; Bayar’s task list for colleagues;
Ministers identify priorities; No mention of mining law in Parliament agenda; Bayar
on 10-day visit to the USA; MNT 1.5 billion to be spent on local election; Training
for local judges; No more troops for peacekeeping in Iraq.
NOTICE TO BCM MEMBERS
The next BCM monthly meeting for Members will be Monday, September 29, at 5 PM at the Open
Society Forum.
Featured will be presentations on a Vocational Education Training Institute by Randy Myers of
Wagner Asia Equipment as well as on the world-class Bumrungrad International Hospital in Bangkok,
Thailand by P. Tsagaan and his colleague, Oyuna, Directors of TMB.
An Embassy update will be presented by Mark Minton, Ambassador of the USA to Mongolia.
Teleconferencing will be available for Members not able to attend in person. Call number is (1-218)
486-1600, access code 760845 to be connected. Cost will be solely that of the long distance call to
the above US number.
Members who plan to attend the meeting in person or via teleconferencing with questions on these
presentations should Email them in advance to info@bcmmongolia.org.
BUSINESS
MONGOLIA SLIPS 3 PLACES IN CORRUPTION RANKING
Mongolia has slipped three places, from 99th
in 2007 to 102nd
, in this year‟s Corruption Perceptions
Index (CPI), launched by Transparency International (TI) in Berlin on Tuesday. The CPI score
indicates the degree of public-sector corruption in a given country as perceived by business people
and country analysts and is a composite index, drawing on different expert and business surveys.
The 2008 CPI scores 180 countries (the same number as the 2007 CPI) on a scale from zero (highly
corrupt) to ten (highly clean). Score changes in the Index are rarely rapid, and at 3.0 Mongolia‟s
score remains the same as in 2007, but its confidence range has expanded to 2.6 - 3.3 from last
year‟s 2.8 - 3.3.
Denmark, New Zealand and Sweden share the highest score at 9.3, followed immediately by
Singapore at 9.2. Bringing up the rear is Somalia at 1.0, slightly trailing Iraq and Myanmar at 1.3
and Haiti at 1.4. Countries that are behind Mongolia include Ukraine (134), Kazakhstan (145), Russia
(147), Tajikistan (151), Azerbaijan (156), and Uzbekistan (166).

2. Source: www.transparency.org/policy_research/surveys_indices/cpi
SOUTHGOBI BEGINS EXPORTING COAL TO CHINA
SouthGobi Energy Resources Ltd. has commenced deliveries of thermal coal from the Ovoot Tolgoi
mine in southern Mongolia to customers in China. "This is a major milestone in the evolution of the
company as a competitive Mongolian coal producer. With the initial market-link in China now
established, we can concentrate on increasing our production and diversifying our product and
customer base," said Peter Meredith, Chief Executive Officer, and Gene Wusaty, Chief Operating
Officer, Coal Division.
The first trucks carrying thermal coal, premium thermal coal and metallurgical coal crossed the
border into China on September 22. This initial shipment is part of a one-year contract, with 2008
tonnage set at 300,000 tons loaded at the Ovoot Tolgoi mine gate. A second sales contract also is in
place, for an additional 2008 tonnage set at 400,000 tons. SouthGobi Sands LLC, a wholly-owned
Mongolian subsidiary of SouthGobi Energy Resources, has opened two offices in China -- one in
Beijing and another in Ceke at the China-Mongolia border -- to help facilitate the export.
The Ovoot Tolgoi coal mine is approximately 45 kilometers north of the Mongolia-China border. It is
operating 24 hours a day, with four production crews. The workforce has increased to 206
employees, including 198 Mongolians. Production up to September 17 was 471,215 tonnes of coal.
Source: Montsame
KHAN BANK SUPPORT TO DISTRESSED HERDERS
Khan Bank has taken several measures to help herders in the eastern provinces of Khentii, Dornod
and Sukhbaatar who suffered significant loss of livestock following unexpected inclement weather
earlier this year. A fund it set up with an initial donation of MNT 62 million received widespread
support from many sectors, and grew to be worth MNT 22.4 billion. A Bank working group led by
D.Batsaikhan visited the affected provinces earlier this month and distributed MNT 600,000 each to
111 families that had lost almost all their livestock, and a total of MNT 7.8 million to 52 families
where the male head had died.
The bank wrote off the entire amount of MNT 6 million, along with the interest on it, lent to four
herders who had died. Similarly, 15 herders who lost all their livestock were released from their
total debt of MNT 26 million, and the interest on it. Altogether MNT 170 million has been granted to
700 herder families from the fund.
Source: Zuunii medee
KHAN RESOURCES TO BUILD POWER LINE TO DORNOD MINES
Khan Resources Inc. (KRI) has plans to build a power line and sedimentation pond at its Dornod
Uranium Property site. The power line will run from the Xin Xin Mine to the site, a distance of
about 26 kilometers, and an electrical substation will also be built there. The Xin Xin Mine gets
electricity from the Choilbalsan generating plant, approximately 120 kilometers to the south. KRI
has signed an agreement with the Choilbalsan plant to receive 15 MW of electricity from there.
The proposed power line will carry this to the Dornod site, thereby eliminating the use of diesel-
powered generators. There will also be sufficient electricity for the planned drainage and
rehabilitation of the underground mines to be worked in the spring of 2009.
Source: Montsame, www.mongolia-web.com
TRADE TEAMS TO ATTEND OHIO FESTIVAL
A „Cultural Days of Mongolia‟ festival is to be organized from October 1-5 in Middletown, Ohio, USA,
at the joint initiative of Alfonso La Porto, a former US Ambassador to Mongolia, and the Mongolian
Embassy in the USA. During the festival Mongolian cultural performances, painting exhibitions, and
a series of lectures on Mongolian history and culture are to be presented. Businessmen,
representatives from tourism companies and officials from Ministries and the Foreign Investment
and Foreign Trade Agency (FIFTA) are to attend the festival, which will include many kinds of
activities, such as the introduction of Mongolian products and interests to boost economic

3. cooperation, with Mongolian folk groups, dancers and contortionists living in the USA, also
participating. Several Mongolian cashmere companies will display samples of their latest products
with many options in colors and styles.
FIFTA specialist G. Tsolmon says, “The Festival organizers will focus on sectors of interest to
Mongolian businessmen, select companies from Ohio, Kentucky and Indiana that have similar
interests and bring them together. US companies in these States have expressed considerable
interest in Mongolia‟s tourism, cashmere, wool, construction, banking and trade sectors and wish to
contact Mongolian companies in these fields.”
Source: The Mongol Messenger
IVANHOE CASH AWARD FOR PARALYMPICS MEDALIST
Ivanhoe Mines will give USD 7,640 as an award to D.Baatarjav, the first Mongolian Paralympics gold
medalist. This amount is the equivalent to the price of one ton of copper at the London Metal
Exchange (LME) on September 14, the day on which the archer achieved his feat in Beijing in the
13th Summer Paralympics. The staff at the Oyu Tolgoi project of Ivanhoe Mines has decided to
make it a regular practice to honor future Olympic medalists from Mongolia with such monetary
awards.
Source: Montsame
THE ART OF MARKETING ART
Some 110 administrative officials and managers of educational organizations from Ulaanbaatar and
the provinces attended a two-day training course earlier this week on how to improve the
marketing of culture and art. The main speaker, Kelly Twiddle, director of the Opera Theatre of
Seattle, USA, talked about various strategies that can be adopted in art marketing, in market
research, and in establishing connections with audiences and such facets of marketing and selling.
Other participants included Professor D.Dagvadorj, President of Mongolia's Marketing Union, and
representatives of Mongolian University of Art and Culture, as also of finance and economics.
Source: Montsame
ANOTHER MEETING ON RESPONSIBLE MINING
The latest meeting on responsible mining, jointly organized by the Asian Fund of the US, the
Ensuring the Future program, an NGO called Responsible Mining Initiative, and the National
University of Mongolia, was held on September 24. Such meetings have been held every month
since October 2007 to discuss how mining can and should respect and contribute to ecological
conservation, by using natural resources responsibly.
This month‟s meeting heard Erdenetuya, an environmental engineer with Boroo Gold,
S.Erdenetsetseg, a specialist at the Ministry of Nature and Enviroment, Prof. Ya.Gombosuren, and
Gerald Harper, vice president of the Western Prospector Company, exchange views on the most
effective ways of increasing citizens‟ knowledge and awareness of what mining operations entailed.
This, they felt, would have a positive impact on society‟s realistic expectations that mining
companies should follow the basic principles governing enlightened use of natural resources.
Source: Montsame
TOUR OF URANIUM MINE SITES
The Mongolian National Mining Association is planning to organize a tour of the mine sites of
Western Prospector and Khan Resources in Dornod aimag in the far east of Mongolia from October 3
to 6. The tour will focus on providing on-site information to organizations and individuals on the
companies‟ use of new technology, reclamation programs, and general mining operations.
Registration deadline: September 30, 2008.
Number of available seats: 13. If the number of signed-up individuals is less than five, the tour will
be cancelled. Administration fee: MNT 20,000 for members, and MNT 40,000 for non-members.
Visitors pay for their round trip air tickets. All other costs will be borne by the two companies.

4. For more details, intending visitors may please contact Dashdulam, Lawyer of the MNMA (Mobile:
88089391), or Tegshjargal, Membership Affairs Manager (Mobile: 55154648).
Source: www.miningmongolia.mn
ECONOMY
MONGOLIA MOVES UP TO BE RANKED THE WORLD’S 62ND
FREEST ECONOMY
Mongolia's economy is 62.8 percent free, according to The Heritage Foundation and the Wall Street
Journal 2008 assessment, which makes it the world's 62nd freest economy. Its overall score is 3
percentage points higher than last year, mainly reflecting improved scores in four of the 10
economic freedoms. Mongolia is ranked 10th out of 30 countries in the Asia-Pacific region, and its
overall score is slightly higher than the regional average. By implementing trade liberalization and
fiscal reforms that include lower tax rates, Mongolia showed the most improvement in the region,
moving up to "moderately free" from "mostly unfree" in the 2007 Index.
The 2008 Index of Economic Freedom covers 162 countries across 10 specific freedoms such as in
trade, business, investment, and in property rights. Mongolia enjoys high levels of fiscal freedom,
financial freedom, business freedom, investment freedom, and trade freedom. The top income and
corporate tax rates are moderate. The average tariff rate is also moderate, although non-tariff
barriers (such as customs corruption) have undermined the government's policy of liberalization.
Commercial registration and licensing are efficient, but closing a business takes longer than it
should. Inflation is fairly high, but the government has eliminated almost all of its price supports
and market distortions. Mongolia has very weak property rights, the Index finds. The judicial
protection of these rights is still weak, and judges often do not validate previously agreed
contracts. The judiciary is also hampered by corruption.
Mongolia‟s scores in the individual sectors are: Business Freedom - 71.1%; Trade Freedom - 81.4%;
Fiscal Freedom - 85%; Freedom from Government - 71.7%; Investment Freedom - 60%; Financial
Freedom - 60%; Property Rights - 30%; Freedom from Corruption - 28%; Labor Freedom - 62.4%.
Source: www.heritage.org/index
RUSSIA HINTS IT WILL LOWER PETROL EXPORT TAX
Petroleum prices fell last week, but not enough to satisfy consumers. Sod Mongol reduced its fuel
price by Tg 50 on Thursday. NIC, Petrovis and others followed suit on Friday, but in their case the
reduction was only by Tg 30 a liter. Most motorists claimed the small drop had not even registered.
The steady fall in global oil prices has not so far benefited Mongolian consumers. Petroleum
importing companies explain their helplessness by saying they have a stock bought at high prices
and cannot sell this cheaper. Also, there is not yet any marked fall in import prices. “If we pay less
for our imports in October, it might be possible to decrease the price at pumps,” says an official of
one company.
Russia has made petroleum cheaper for consumers within the country. Mongolia, which buys almost
all its oil from its northern neighbor, has not shared in the benefit as the raised tax on oil exports is
still in force. However, Russian Finance Minister Alexei Kudrin has recently indicated that the
export tariff would be revised downward soon, from the present US $486 a ton to US $372. The
official reason for raising the tax was that Russia wished to discourage exports during the harvest
season so that its domestic needs could be better met. With that season nearing an end, the
restriction can be eased.
Source: Ardiin Erkh
TOURIST ARRIVALS GROW 35% IN 7 YEARS
Altogether 454,576 foreign tourists spent time in Mongolia in 2007, an increase of 34.8 percent
against the 2000 figures. The number so far this year is 451,598. Between 2000 and 2007, there
were 28.2 percent more tourists from Africa, 23.5 percent more from East Asia and the Pacific
countries, and 19.6 percent more from South Asia, while the growth for America and Europe was
17.5 percent and 15.5 percent respectively. The highest growth of 38.3 percent was recorded by
arrivals from the “Near East and with no citizenship”. The countries that showed the largest

5. increase in the number of travelers to Mongolia were China, Great Britain, South Korea and
Germany.
Source: The Mongol Messenger
MONGOLIA ASKS EU TO EXTEND PREFERENTIAL STATUS
The 11th Mongolia-EC Joint Committee meeting in Ulaanbaatar on September 22 reviewed the
current status of bilateral development cooperation. Mongolia asked for an extension of its
involvement in the General System of Preferences (GSP) scheme. Mongolia‟s participation in
regional organizations such as the Asia-Europe Meeting, the ASEAN Regional Forum, the Shanghai
Cooperation Organization, and the Organization for Security and Co-operation in Europe was
discussed, and so was its National Development Strategy. The EU team presented an update on its
Mid-Term Review of Country Strategy Paper for 2007-2013.
Also on the agenda were the issues of tax exemption for EC-funded projects, and the registration of
the EC Technical Office in Ulaanbaatar, as well as the Partnership and Cooperation agreement to be
signed between Mongolia and the EU shortly.
The GSP agreement signed in 2006 allowed Mongolia to export 7,200 kinds of products to European
countries without paying any tax. How exactly has Mongolia utilized the privilege? According to
official data, exports to Europe have increased by 40 percent since 2006, reaching US $119.2
million. More important is that of the 7,200 items qualifying for tax exemption, Mongolia could
export only about 20. Their total export value was US $70 million. Gold, hide and leather, fabrics
and such traditional items were the major exports.
Source: Montsame, Ardiin Erkh
ADB AID FOR 3-YEAR FOOD PROGRAM
Asian Development Bank officials led by Vice President Lorenz Greenwood called on President
N.Enkhbayar on Friday. After the meeting, Mr. Greenwood said the President had given them
details of the National Development Strategy, developed and adopted at his personal initiative.
They told him that ADB was keen to help develop Mongolian cities, Darkhan in particular. “The
inflation rate in Mongolia is the highest in Asia. ADB has no program directly concerned with
controlling inflation”, but, said Mr. Greenwood, it would grant USD 9 million to help the Mongolian
Government implement a 3-year program to “render nutritional support to some vulnerable sections
of society” from January 1, 2009. The Government has allotted MNT1.3 billion of its own to run a
pilot project for three months from October, 2008.
According to an official of the Finance Ministry, “the plan is to reach the aid to 30,000 disabled
people first. The next recipients would be elderly people living alone. Pregnant mothers and single
women who head households will come next.” The money is most likely to be distributed in the
form of food tickets. Each beneficiary will get a daily ticket worth MNT 450, or monthly coupons for
MNT 13-14,000. The project will begin on January 1 and continue until 2012.
Source: Montsame, Onoodor, Ardiin Erkh
CENTRAL BANK HEAD SIGNS AGREEMENTS IN RUSSIA
During his two-day visit to Russia last week, the President of the Mongol Bank, Dr. A.Batsukh, met
with S.M.Ignatiev, Chairman of the Central Bank of Russia (CBR), and his senior colleagues, and with
A. Chihanchin, Head of the Financial Supervision Service of the Russian Federation. They discussed
ways in which the financial institutions and banks in the two countries could cooperate, and
stressed the need to widen collaboration between the two countries' central banks and financial
regulatory organizations. An agreement was later signed between the Mongol Bank and the CBR on
cooperating in bank supervision.
There was a separate agreement on exchanging information that relates to possible money
laundering and terrorism financing. Both agreements are expected to contribute to the stabilization
of the banking system in the two countries, and to keeping an eye on the activities of banks with
bilateral investments.
Source: Montsame

6. HARVESTING SLOWER THAN USUAL
The State Commission for Harvesting met on September 21 to hear reports from all over the country
on the progress of the harvest and the movement of the produce. There was no clear explanation
why this year‟s harvest is tardier than in previous years. Winter is not very far away, but so far only
15 percent of grains and 30 percent of potato have been harvested. Estimates of bumper production
have raised hopes that less will have to be imported in the coming months. Since this should help
curb inflation, the slow rate of the harvest is disconcerting.
Source: Onoodor
NO DECISION ON WAGE RAISE
The Employers‟ Association, the Federation of Trade Unions (FTU), and the Ministry of Social
Welfare and Labor could not reach any decision at a recent meeting to discuss the FTU demand for
increased wages. S.Ganbaatar, president of the FTU, said continuing price rise has meant “we
cannot survive today on what we earned yesterday”, and wondered how, with “the national
economy growing and growing, ordinary people‟s life was getting worse and worse”.
L.Nyamsambuu, Head of the Employers‟ Association, dismissed this “as playing a political game”.
The Deputy Minister suggested holding negotiations once a new government was formed. He also
revealed that various measures were under consideration “to limit imports and maintain the price
line”.
Source: www.sonin.mn, Onoodor
POLITICS
NEW CABINET TAKES OFFICE
A simple ceremony at the State Palace saw a 15-member Cabinet take office on Saturday. The
Prime Minister gave the new Ministers a certificate and a badge identifying them as a member of
the Government, and wished them success at their work. With that, the extended term of the old
government came to an end.
Besides Prime Minister S.Bayar, First Deputy Prime Minister Norovyn Altankhuyag (DP) and Deputy
Prime Minister Miegombyn Enkhbold (MPRP), the following are members of the Cabinet, with their
party affiliation and respective responsibility after their name:
Sukhbaataryn Batbold (MPRP) -- External Relations;
Sangajavyn Bayartsogt (DP) –- Finance;
Tsendiin Nyamdorj (MPRP) -- Justice and Internal Affairs;
Luimediin Gansukh (DP) -- Environment and Tourism;
Luvsanvandangiin Bold (DP) –- Defense;
Yondongiin Otgonbayar (MPRP) -- Education, Culture and Science;
Khaltmaagiin Battulga (DP) -- Roads, Transportation, Construction and Urban Development;
Mrs. Togsjargalyn Gandi (MPRP) -- Social Welfare and Labor;
Tunjingiin Badamjunai (MPRP) -- Food, Agriculture and Light Industry;
Sambuugiin Lambaa (DP) –- Health;
Dashdorjiin Zorigt (MPRP) -- Minerals and Energy;
Mrs Badraagiin Dolgor (MPRP) -- Cabinet Secretariat.
All but four of the above are members of the present Parliament.
Source: Montsame, Ardiin Erkh
PROFILE OF D. ZORIGT
The new Minerals and Energy Minister, D. Zorigt, was born in Ulaanbaatar in 1971 and is the
youngest of the Ministers at age 37. He earned degrees in International Relations in Moscow and
Australia, and in Law in Japan. He speaks Chinese, Russian and English. After working in the
Ministries of External Affairs, Finance, and Industry and Trade, in 2007 he became Executive
Director of Erdenes MGL, a 100% state-owned company.
Later, he worked as secretary of the working group that drafted the amendments to the Minerals
Law and the revised agreements for the Tavan Tolgoi and Oyu Tolgoi projects. Before the June
election he took over as campaign advisor to S.Bayar and Su.Batbold in Sukhbaatar district.

7. Married and with two daughters, Zorigt is also the guardian of the two daughters of his younger
brother D.Badraa, who was assassinated when he was chairman of the Financial Regulatory
Authority.
Source: Udriin Sonin
BAYAR’S TASK LIST FOR COLLEAGUES
Prime Minister S.Bayar reminded his Cabinet colleagues at their first meeting on Saturday after
formation of the new government that popular expectations ran high, “and all of you must work for
the general good of the Mongolian people and not do anything to lose their confidence". The Prime
Minister, who was to leave soon for a ten-day visit to the USA, gave them a few suggestions on how
to get down to business. Among these were:
- To start getting acquainted with their work from Sunday on;
- To set up working groups to deal with different activities;
- Not to carry out any unilateral personnel reshuffle;
- To begin drawing up policies on mining operations and foreign investments to be implemented by
the Ministry of Foreign Relations and the Ministry of Minerals and Energy in accordance with
guidelines set out in a document on "Mining-Foreign Policy";
- To identify the issues likely to arise from sharing among all the people wealth from mining
resources, and to ensure collaboration between the coalition partners in this matter;
- To prepare draft programs for all Ministries and to suggest the best ways of structuring the
administrative set-up for best results;
- To devise means of preparing a reserve stock of 100,000 tons of wheat;
- To prepare position papers on budgetary issues, and on fuel supply and prices.
Source: Montsame
MINISTERS IDENTIFY PRIORITIES
After taking charge of their portfolios on Saturday morning, some of the new ministers spoke briefly
about their priorities.
Yo.Otgonbayar: All the many employees in the education sector must be kept motivated and in
good training. Our literacy level and educational standards were things to be proud of but we have
been slipping in the last 10-15 years. This has to be arrested.
D.Zorigt: Both parties have pledged to give every Mongolian a share of the wealth from the
country‟s mining resources. People are waiting to see how the promise is implemented. We have to
start work in the strategic mining sector without delay. The first thing to do is to approve
amendments to the Mining Law.
Lu.Bold: Defense sector reforms were started in 1996 and these have to be continued. The army has
to be modernized and made more professional.
T.Badamjunai: I shall work hard to minimize food import. Mongolia should attain self-sufficiency in
vegetables and most other agricultural products within two years. We also have to create more jobs
in light industry, and the private sector must be encouraged to take up the challenge.
S.Lambaa; The health insurance system has to be overhauled in keeping with the forces of the
market economy. There is much scope for introducing modern technology in the health sector.
T.Gandi: My main job will be ensuring an equitable distribution of the mining wealth, after
ascertaining that it keeps flowing. Social insurance benefits have to be distributed correctly, so
that those who really need them can be identified and allowed easy access. We also have to
generate enough worthwhile employment so that young Mongolians do not have to go abroad to
work.
S.Bayartsogt: Inflation is the biggest challenge. My success will be measured by how well I can
control inflationary forces.
Kh.Battulga: The railway network has to be expanded to meet the increasing demands of trade and
industry. We should also develop other urban centers and dissipate the pressure, both of population
and facilities, on Ulaanbaatar.

8. Source: en.News.mn
NO MENTION OF MINING LAW IN PARLIAMENT AGENDA
The list of business to be transacted by Parliament in its Autumn session does not include any
specific mention of amendments to the Mining Law. However there are several broad descriptions
that could incorporate a discussion of them, or of much else. These include “a draft resolution on
the main directions of the Government activities”, and “a draft resolution on the main directions of
economic and social development in 2009”. Altogether 23 drafts of new laws or amendments to
existing laws will be discussed. Among the subjects are the 2009 state budget, VAT percentage,
customs duty on certain exports, and production, import, sale and service of alcoholic drinks.
Source: Onoodor
BAYAR ON 10-DAY VISIT TO THE USA
Prime Minister S.Bayar is in the USA to attend the 63rd Session of the United Nations General
Assembly in New York. He will address the Assembly and meet other world leaders, among them the
Prime Ministers of Australia, Austria, and Nepal. He is accompanied by G.Batkhuu, Deputy
Parliament Speaker; Yo.Otgonbayar, Minister of Education, Culture and Science; MPs D.Baldan-
Ochir, E.Monkh-Ochir, and Ts.Sedvaanchig; and a media team.
In New York, Bayar will meet with UN Secretary General Ban Ki-Moon, and Kemal Dervis, Head of
the United Nations Development Program (UNDP). He will also attend a ceremony jointly hosted by
President George W. Bush and President Jalal Talabani of Iraq for leaders of countries represented
in the international peace-keeping forces in Iraq.
Bayar‟s program in Washington DC includes talks with US Vice-President Dick Cheney, and Interior
Secretary Dirk Kempthorne. The Prime Minister returns to Mongolia on October 1.
Source: Montsame
MNT 1.5 BILLION TO BE SPENT ON LOCAL ELECTION
The General Election Commission has asked Parliament for MNT 1.5 billion to meet the costs of the
Local Election on October 12. This is three times more than what was spent in the last local
election. MNT 415 million of the money will be allocated from the State budget and MNT 11 million
from local budgets.
Source: Onoodor
TRAINING FOR LOCAL JUDGES
As part of a program jointly conducted by the Supreme Court of Mongolia and the German Agency
for Technical Cooperation (GTZ) to strengthen the legal environment in the country, a three-day
training was recently organized for local judges. They discussed ways on how best to implement a
system to monitor court practices all over the country and the consensus was to develop a software
program that can be installed in all court organizations.
This was the first project in the program. By the time it ends in 2011, it hopes to be able to
streamline court procedures, make them more transparent, and generally instill popular and
business confidence in the fairness of the judicial process. All this is meant to help in the
sustainable economic development of Mongolia.
Source: Montsame
NO MORE TROOPS FOR PEACEKEEPING IN IRAQ
Mongolia has so far sent 900 military personnel to Iraq to help in UN peacekeeping operations there
but its present contingent will be the last. Indeed the troops are likely to come back before the
scheduled end of their tour of duty. This is because Iraq feels it no longer needs such assistance.
The National Security Council of Mongolia has decided to call back its peacekeepers. Their first
group returned home on September 18.
Source: Odriin sonin

9. SPONSORS
ECONOMIC INDICATORS
MSE WEEKLY REVIEW
For the week ended September 19, 2008, trading activity on the Mongolian Stock Exchange (MSE)
totaled 1.46 million shares with 56 companies traded. Total market value of transactions was MNT
334.0 million.
Total market capitalization of the 358 stock companies listed on the MSE was MNT 679.34.3 million,
and decreased by MNT 8.9 million or 1.3% from the previous week. The Top-20 Index decreased by
4.05 points or 0.05% compared to the previous week closing at 8,303.93 points.
Most active stocks traded were: Naco tulsh (854,700 shares), Hermes (326,500 shares), Remicon
(101,300 shares), Khuh gan (48,500), and HB oil (40,600 shares).
Major share price percentage gainers were: Khereglee impex (15.0%), Altai (14.5%), Eermel (12.5%),
Apu (11.5%), and Tsagaan tolgoi (6.1%). Major share price percentage losers were: HB oil (17.9 %),
Guril tejeel Bulgan (15.0%), Bayalag shar gol (14.3%), Khangal (9.1%), and Hermes center (8.7%).
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 Avg. 9.0% [source: NSOM]
Year 2007 *15.1% [source: NSOM]
August 31, 2008 *34.2% [source: NSOM]
* year over year (yoy)

10. CURRENCY RATES – September 25, 2008
Currency name Currency Rate
US dollars US 1146.81
Euro EUR 1683.40
Japanese yen JPY 10.81
British pound GBP 2132.26
Hong Kong dollar HKD 147.75
Chinese yuan CNY 168.11
Russian ruble RUBS 45.77
South Korean won KRW 0.99
DIGITAL MOGNOLIA
The BCM is arranging a free, bi-lingual technology symposium for BCM members entitled „Digital
Mongolia‟ on Wednesday, October 22, from 2 PM to 6:30 PM at the Chinggis Khan Hotel.
Speakers will include officials from the workshop‟s lead sponsor, Intel Corporation, and from
Microsoft, MCS Electronics, Khan Bank, MobiCom and others. The detailed agenda can be seen on
the BCM website, Calendar of Events.
3RD GIANT STEPPES OF JAZZ FESTIVAL organized by the Giant Steppes of Jazz NGO is next week in
UB from September 30 to October 4. The Festival combines performances, workshops and
collaborative efforts between Mongolian and international musicians. Over 1,400 people were
involved in the 2nd Giant Steppes of Jazz Festival in October 2006.
The Festival schedule follows:
Tues, Sept 30 - Jam at Harry‟s Pub in Sunjin Grand Hotel featuring Nils Petter Molvaer Trio
(Norway)
Thurs, Oct 2 - Jam at River Sounds Club featuring Djabe (Hungary)
Fri, Oct 3 - GALA at Khan Bank Theater featuring Northern Lights (Canada) and Djabe
(Hungary)
Sat, Oct 4 - Jam at Khan Bank Theater featuring Northern Lights (Canada)
All concerts begin at 7 PM. Late night jams from Wednesday to Saturday, Oct 1-4 at the Grand
Khaan Irish Pub beginning each night at 10 PM. Tickets are MNT 15,000 for the GALA and MNT
10,000 for each of the 3 Jams and are available at HiFi Megastore and the Grand Khaan Irish Pub.
Contact Enkhmonkh (Kush) at 8883-8345 with any inquiries.
See www.jazzmongolia.com for additional information.