July 27 2012

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 232 – July 27, 2012
NEWS HIGHLIGHTS:
Business:
 Ivanhoe completes USD 1.8 billion rights offering for OT financing;
 Aspire appoints new director of Ovoot coking coal project;
 Altan Rio closes 90 percent earn-in for gold project;
 Newcom receives USD 85 million loan for Salkhit wind farm;
 Electricity deliveries from Russian supplier nearly double;
 Guildford Coal ups its stake in Terra;
 Voyager Resources receives 923 million option applications;
 FMG Mongolia Fund falls amid political uncertainty;
 Capital Bank to offer low-interest mortgages;
 Euromoney names Khan Bank Mongolia's best;
 Heineken offers USD 4.1 billion to double its stake in APB;
 MEC: Annual Report 2012;
 Rio deploys unmanned mining trucks in Australia;
 General Electric's profits beat estimates;
 Caterpillar's net soars on strong demand;
 ASX plans data center tie-up with SGX.
Economy:
 2013 Budget;
 Cereal prices stable while meat experiences spikes;
 Water filter installed in Kharkhorin hospital;
 Bilateral treaty may solve SouthGobi-Mongolia stalemate;
 NEMA acquires new aircraft;
 Is Mongolia heading for a real estate bubble?;
 Mongolia puts greater focus on tourism;
 Climate change, mining boom threaten national identity;
 Cost of the mining boom;
 Long-term bull market started in Mongolia in 2006, says Passin of Firebird;
 OT's Olympic medals boasted as most expensive;
 Olympic judo wrestler “mining” for more gold for Mongolia;
 Eurozone crisis spreads east to dampen Central Asian growth, says EBRD;
 A complicated relationship;
 Chinese economy to gain traction in second half of 2012;
 WTO to probe China's rare-earth policies.
Politics:
 Batbold steps down as MPP head;
 MPP names new chairman;
 Disgruntled MPP members establish new faction;
 Independent MPs gather for stronger voice in Parliament;
 Parliament elects new Speaker;
 MPP refutes Speaker-elect;
 Coalition takes over during crucial era for Mongolia's mineral wealth;
 Britain warns it will closely follow Enkhbayar's trial;
 Turkish Ambassador presents credentials;
 Ukraine signs environmental protection pact with Mongolia;
 Rock n' roll diplomacy;
 Dinosaur skeleton to be returned to Mongolia.

2. *Click on titles above to link to articles.
SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Breakthrough PR Oxford Business Group
BUSINESS
IVANHOE COMPLETES USD 1.8 BILLION RIGHTS OFFERING FOR OT FINANCING
New York-and Toronto-listed Ivanhoe Mines Ltd. said it had successfully completed its USD 1.8
billion rights offering which expired on 19 July. The rights offering was part of the comprehensive
financing plan to continue development of the Oyu Tolgoi project.
―The Ivanhoe Mines board extends its sincere appreciation to all shareholders who participated in,
and contributed to, the success of the rights offering,‖ Chairperson David Klinger said.
The company said preliminary results point to the rights offering being successful, and Rio Tinto
PLC, the majority stakeholder, exercised its rights issued to it under the offering. Ivanhoe Mines
said it expected to issue about 260 million new common shares through the rights offering, which
would represent about 100 percent of the maximum number of common shares available under the
rights offering.
Source: Mining Weekly
ASPIRE APPOINTS NEW DIRECTOR OF OVOOT COKING COAL PROJECT
Aspire Mining Ltd. has appointed James Benson to oversee the Ovoot coking coal project in Mongolia
through construction of the mine's infrastructure as well as management of the Erdenet-Murun rail
line.
Benson, who will become the project director, has over 30 years experience in engineering,
procurement, and construction management with a focus on providing leadership and constructive
solutions for large-scale bulk commodity projects in remote regions. These include the development
of an iron-ore mine in Ukraine and a coal mine and associated Russian rail infrastructure in
Kazakhstan.
―Jim's experience base provides an ideal fit for the significant challenges ahead in bringing the
Ovoot project into production,‖ said David Paull, Aspire‘s Managing Director.
Aspire Mining is planning to start the first stage of production in early 2016 at an initial rate of six
million tons a year of high quality coking coal, ramping up to 12 million tons a year in 2018.
Source: Proactive Investors

3. ALTAN RIO CLOSES 90 PERCENT EARN-IN FOR GOLD PROJECT
Altan Rio Minerals Ltd. has completed its 90 percent ownership earn-in for the Onon epithermal
gold project.
Altan Rio completed the earn-in with Erdenyn Erel LLC, a private Mongolian company, for 90
percent interest in the three Onon tenements with a final payment of 240,000 common shares (a
substitute for a final cash payment of USD 60,000) in Altan Rio.
Source: Altan Rio Minerals Ltd.
NEWCOM RECEIVES USD 85 MILLION LOAN FOR SALKHIT WIND FARM
The European Bank for Reconstruction and Development (EBRD) and the Netherlands Development
Finance Co. agreed to an USD 85 million loan for Mongolia's first wind farm.
The 50-megawatt Salkhit wind farm will be built southeast of Ulaanbaatar and is expected to start
operations later this year, according to an emailed statement from Norton Rose LLP, which has
advised on the financing of the project. It is expected to supply 5 percent of the country's
electricity.
The project is being developed by Newcom Group, and General Electric Co. is providing the
turbines. Newcom, an investment firm whose portfolio includes telecommunications, information
technology, airlines and financial services, is venturing into wind power as part of the government's
plan to raise the amount of energy from clean sources to as much as 25 percent by 2020.
Source: News.mn
ELECTRICITY DELIVERIES FROM RUSSIAN SUPPLIER NEARLY DOUBLE
Eastern Energy Co. increased electricity exports to Mongolia by 89 percent year-on-year to 166
million kilowatt-hours in the first of 2012, the exporter said in a statement.
Eastern Energy said its contract with Mongolian partners went into effect in 2011, due to the
expansion of its region of operations within its parent company, Inter RAO. More than 263 million
kilowatt-hours of electricity was exported to Mongolia in 2011, and exports are expected to
increase to 320 million kilowatt-hours in 2012. Mongolia uses Russian electricity primarily to cover
peaks in demand and to supply power to isolated border areas of the country.
Eastern Energy was set up specifically to supply electricity to China and is the only holder for a
contract to export Russian electricity to China. It boosted power deliveries to China by 57 percent
year-on-year to 984 million kilowatt-hours in the first half of 2012.
Source: Moscow Times
GUILDFORD COAL UPS ITS STAKE IN TERRA
Guildford Coal Ltd. has increased its stake to 74.76 percent ownership of its Mongolia-based
partnership with Terra Energy Ltd, the subsidiary of Brazil's Vale SA. Guildford increased its stake
by 4.76 percent in Terra Energy through a conversion of a loan facility into shares.
―This is a positive outcome for Guildford Coal leading into production from the South Gobi project
this year,‖ said Mick Avery, managing director. ―Guildford Coal and Terra Energy's partnership
remains strong and we look forward to working together to further develop our Mongolian assets.‖
The South Gobi project has a 70.4 million ton JORC indicated and inferred resource of coking coal
at the north pit. There is a further exploration target of 70 million tons to 893 million tons that has
been identified in another three conceptual pits (east, central, and west). Operations at the South
Gobi site are expected to begin during this quarter.
Source: Guildford Coal Ltd.
VOYAGER RESOURCES RECEIVES 923 MILLION OPTION APPLICATIONS
Voyager Resources Ltd. announced it had received applications for 923 million options to its
Entitlement Issue Prospectus of 21 June.
Voyager Resources entitled shareholders to one option at a price of AUD 0.01 for every three shares
held in an effort to raise some USD 4.464 million. The offer has been made to all shareholders. The
company said it had notified underwriter CPS Securities of the remaining 354 million options before
it proceeds with the allotment process and dispatches holding statements for the applications
received.
Source: Voyager Resources Ltd.
FMG MONGOLIA FUND FALLS AMID POLITICAL UNCERTAINTY
The FMG Mongolia Fund fell by 2.8 points in June amid June elections and a change of hands within

4. government as well as changes to the Mongolian Stock Exchange's (MSE's) regulations and
operations.
In May the fund lost 2.4 percent compared with the 3.7 percent loss of the MSE TOP 20. The FMG
fund's best performing stocks were a cement producer, with a 5.6 percent gain, while a mining
company was its biggest loser, falling 32 percent. Despite the fall, the company is still positive
about 2012,
―Nobody can compete with the cost-advantage Mongolia has of being located right next door to
China. The number one consumer of commodities,‖ said the company.
Economic growth in the first quarter is traditionally somewhat slow as the activities are subdued in
mining, construction, agriculture, and some other sectors. In 2011's first quarter, the economy
expanded 9.8 percent and accelerated to 17.3 percent y-o-y by the year end.
The FMG Fund's strategy is to buy up domestically listed stocks to establish positions among
attractive domestic growth stories before larger pools of foreign money can enter the market.
Source: FMG Mongolia Fund
CAPITAL BANK TO OFFER LOW-INTEREST MORTGAGES
Minister of Finance D. Khayankhayarvaa introduced Capital Bank's proposal to grant low-and
medium-income citizens with 6 percent mortgages at a meeting of the Cabinet.
Thus far, only the Bank of Mongolia and Capital Bank have submitted proposals to issue loans using
their own funding. Capital Bank suggested amendments to the cooperation agreement be added
that would grant loans between MNT 5 billion and MNT 10 billion from a bank's own resources.
The Cabinet opted to leave responsibility of taking the relevant measure that would allow the bank
to grant the loans to the Minister of Finance and the board of the Development Bank of Mongolia.
They would also have to decide whether Capital Bank would be permitted to lend using the
resources of the Development Bank as well as its own.
Source: Info Mongolia
EUROMONEY NAMES KHAN BANK MONGOLIA'S BEST
Khan Bank has been named the ―Best Bank‖ in Mongolia by the world-leading magazine Euromoney
in its Awards for Excellence 2012. This is the sixth year that the bank has won the award.
Euromoney offered the award based on the bank's financially strong balance sheet, success of the
year, commitment to economic development as well as newly introduced products and services.
This year Khan Bank received other prestigious awards such as the best bank award among the top
five commercial banks and ―Excellence in Corporate Social Responsibility.‖
Source: Khan Bank
HEINEKEN OFFERS USD 4.1 BILLION TO DOUBLE ITS STAKE IN APB
Heineken offered to pay more than USD 4 billion for a stake in Asia Pacific Breweries (APB) Ltd., a
large beer distributor to Mongolia, trumping an offer made by a rival this week and highlighting the
industry's intense appetite for assets in fast-growing emerging markets.
Heineken, the Dutch brewing giant, offered SGD 50 (USD 39.84) a share, for a 40 percent stake held
by Fraser and Neave Ltd., a Singapore-listed conglomerate and longstanding partner of Heineken's
in the region.
If the offer of SGD 4.1 billion (USD 4.1 billion) is accepted, it would considerably beef up Heineken's
existing 42 percent holding in APB.
Source: New York Times
MEC: ANNUAL REPORT 2012
Mongolian Energy Corp. (MEC) Ltd. reported the completion of the Khushuut road and the
commencement of production at the Khushuut mining site as milestones to the company's success in
its annual report.
―Although it is a new chapter for us, challenges continue to follow,‖ said the company.
Because commercial production began near the close of the financial year, the company could only
report small sales figures. It also reported massive impairment loss due to its inability to obtain a
water permit for the construction of a coal processing plant. The company is now planning to build
a plant in Xinjiang and has engaged a coal trading company with a washing plant for the immediate
term. The impairment loss reportedly had no financial impact.
The company has also worked to develop relationships with Darvi and Tsetseg Soums to enhance
cooperation between the local governments and provide successful implementation of its projects
and investment.

5. This year MEC also saw the retirement of James Schaeffer, the former chief executive officer, in
June. Yvette Ong now directs the company's team of technical experts as the appointed managing
director.
Source: Mongolian Energy Corp. Ltd.
RIO DEPLOYS UNMANNED MINING TRUCKS IN AUSTRALIA
Diversified mining giant Rio Tinto PLC has hauled its first iron-ore from the Yandicoogina mine in
Western Australia using driverless trucks. With infrastructure still lacking in Mongolia, much of the
minerals traveling for export to China is delivered by mining trucks.
―Autonomous haulage is an important component in our Mine of the Future program,‖ said Rio Tinto
Iron Ore Chief Executive Officer Sam Walsh. ―These new trucks will work with our pioneering
operations center that integrates and manages the logistics of 14 mines, three ports, and two
railways. They will be a critical part of our drive to outstanding safety and production efficiency as
we grow our business towards 353 million tons a year.‖
The Mine of the Future program, which was launched in 2008, aims to create next-generation
technology forming operations, resulting in a greater efficiency, lower production costs and
improved health, safety and environment performance.
Source: Mining Weekly
GENERAL ELECTRIC'S PROFITS BEAT ESTIMATES
The largest conglomerate by revenue in the United States and an important corporate contributor
to Mongolia's development of infrastructure stuck with its forecast for the remainder of 2012, saying
it would increase earnings at a double-digit percentage rate by pushing profit margins higher. In a
move intended in part to cut costs, General Electric Co. said it would break up its big energy
division into three separate units.
―GE had the perfect opportunity to bring expectations down and blame it on Europe and that would
have been the telltale move that would have said, 'Okay, GE is beginning to suffer here in this
environment.' And they didn't do that,‖ said Jack De Gan, chief investment officer at Harbor
Advisory Corp.
The division of the energy infrastructure unit, which would include the 50-megawatt Salkhit wind
farm that General Electric is providing turbines for, into three parts will cut annual expenses by
USD 200 million to USD 300 million a year once it is completed, executives said. The three separate
divisions will report directly to CEO Immelt.
The energy arm, General Electric's largest industrial unit, was one of its strongest performers in the
quarter, with profit jumping 13 percent on a 15 percent rise in sales. The company has stepped up
its presence in the energy sector over the last couple of years, making more than USD 11 billion in
acquisitions and expanding beyond its core of making electricity-producing turbines to offer more
equipment in oil and gas production.
The strongest revenue growth came at its transportation unit, which makes railroad locomotives of
which 17 are already in Mongolia, where sales rose 27 percent, to USD 1.6 billion.
Source: New York Times
CATERPILLAR'S NET SOARS ON STRONG DEMAND
Caterpillar Inc. is betting on continued strong demand for its construction and mining equipment
despite widespread fears that the global economy could worsen over the next year.
The heavy machinery maker that distributes through Wagner Asia Equipment LLC in Mongolia
reported a 67 percent increase in second-quarter profit and raised its forecast for full-year
earnings. Executives of Caterpillar tried to allay investors' concerns about its rising inventories and
heavy capital-spending plans.
―We're not playing for an implosion‖ of the economy, Chief Executive Doug Oberhelman said, but
for continued growth, though that could turn out to be ―anemic.‖ Caterpillar still plans for about
USD 4 billion of capital spending this year, up from USD 2.5 billion in 2011.
Caterpillar said the steep drop in demand for construction equipment in China over the past year
has left it with far too much inventory there and that it will have to offer attractive trade-in deals,
financing and other incentives to clear that out. Caterpillar is also delaying plans to increase
production capacity in China.
Operating profit from construction equipment surged 43 percent to USD 688 million. A 42 percent
increase in North American construction machinery sales offset lower sales in Latin America and
Asia and flat sales in Europe, Africa and the Middle East. For mining equipment, operating profit
was up 79 percent, partly because of last year's USD 8 billion acquisition of Bucyrus International.

6. Excluding Bucyrus, operating profit from mining machinery was up about 42 percent. Despite falls in
the prices of metals and coal, commodity prices generally remain high enough to spur continued
investment in mining, Caterpillar said.
The company said demand was particularly strong for equipment used in oil and gas production and
for its rail-locomotive unit, which competes with General Electric Co. After several large
acquisitions over the past few years, Caterpillar's current plan is to ―slow down, chew and digest,‖
said Ed Rapp, chief financial officer.
Source: Wall Street Journal
ASX PLANS DATA CENTER TIE-UP WITH SGX
Australia's dominant stock exchange is boosting its ties with its Singaporean counterpart more than
a year after a deal between the two fell apart. The Australian Securities Exchange (ASX) is the
bourse many Mongolian firms such as Aspire Mining, Haranga Resources and Xanadu Mines call home.
ASX Ltd. said it and Singapore Exchange (SGX) Ltd. will begin hosting hubs belonging to each other
in their own data centers in September, with an aim to increase the flow of activity in the futures
market.
David Raper, ASX's general manager of trade execution information services, said the deal should
make it easier and cheaper for offshore investors to access the Australian market and for local
traders to send money offshore. Should the new tie-up succeed in expanding ASX's global business,
the exchange operator could roll out the model to its other international hubs, he said.
The move comes as more consolidation is expected among exchange operators. Some proposed
deals have never made it to the finish line. Australia's government last year shot down an AUD 8.4
billion (USD 8.58 billion) takeover proposal for ASX from the Singapore Exchange, saying it was
against the national interest. Since then, SGX Chief Executive Officer Magnus Böcker has played
down the exchange's designs on growth through mergers and acquisitions and has instead stressed
organic growth through new products and increased connectivity with other exchanges.
Source: Wall Street Journal
ECONOMY
2013 BUDGET
The government adopted a maximum sum of MNT 6.88 trillion for expenditures to the 2013 budget.
Allocations throughout government are as follows:
The Office of the President MNT6.885 billion
Office of the Prime Minister MNT 180.78 billion
The Constitutional Court MNT 507 million
Ministry of Foreign Relations MNT 1.84 trillion
Ministry of Justice and Home Affairs MNT 292.71 billion
Ministry of Nature, Environment, and Tourism MNT 181.86 billion
Ministry of Defense MNT 176.99 billion
Ministry of Education, Culture and Science MNT 1.23 trillion
Ministry of Road, Construction, Transportation and Urban Development MNT 1.03 trillion
Ministry of Mineral Resource and Energy MNT 338.52 billion
Ministry of Social Welfare and Labor MNT 816.8 billion
Ministry of Food, Agriculture, and Light Industry MNT 279.3 billion
Ministry of Health MNT 529.35 billion
Independent Agency Against Corruption MNT 7.66 billion
National Statics Office MNT 6.27 billion
Central Election Committee MNT 14.62 billion
Source: Zuunii Medee
CEREAL PRICES STABLE WHILE MEAT EXPERIENCES SPIKES
2011 was a record year for cereal harvest with a 26 percent increase from the previous year's
production.
Wheat production in 2011 was officially estimated at a record level of 435,889 tons. Wheat and rice
are the two main cereals imported. Owing to the record wheat harvest in 2011, total cereal imports
for 2011 and 2012 are forecast at 16,000 tons, or 19 percent below the previous year's level.
Livestock numbers have partially recovered but still remain below that from before the 2009-2010
dzud, what Mongolia calls a particularly cold winter with great snow fall that results in mass animal
deaths.
The prices of rice and wheat flour have remained stable for several months, but overall inflation is

7. over 16 percent. The year-on-year consumer price inflation (CPI) in May 2012 was estimated at 15.4
percent. However, the price for wheat flour, the main food staple in the country, has remained
relatively stable since November 2011 and in May 2012 it was almost 4 percent below the same
month last year.
In May 2012, the prices for beef and mutton were 66 and 75 percent higher respectively than a year
earlier, due to increased demand and the livestock losses following the dzud in 2010. The prices in
Ulaanbaatar markets follow the usual seasonal lows from October to December and highs from May
to July.
Source: FAO Global
WATER FILTER INSTALLED IN KHARKHORIN HOSPITAL
A team deployed by Appropriate Projects has completed a project to purchase and install a four-
filter water purification system to provide safe water for the hospital in Kharkhorin, Uvurkhangai
Aimag. The clean water is primarily being used for drinking and secondarily used for cooking in the
kitchen.
The dispenser has two valves, one that dispenses hot water and one for cool water. A count of its
use reveals that the hot water is used 96 percent of the time and the cold only 4 percent. The
project developers believe that cold water will become more popular as people realize its
consumption is not dangerous.
A week after installation, Nicholas Swope, the leader of the project, gave maintenance training to
the two workers placed in charge of the dispenser as well as the office staff in charge of re-
supplying the filters. The next phase of the project is advertising the filter to the community.
Source: Appropriate Projects
BILATERAL TREATY MAY SOLVE SOUTHGOBI-MONGOLIA STALEMATE
A recent announcement by SouthGobi Resources Ltd. illustrates the possibility of relying upon a
bilateral investment treaty as a means of dispute resolution in Mongolia.
SouthGobi Resources announced to the Toronto and Hong Kong Stock Exchanges on 11 July that SGQ
Coal Investment Pte. Ltd. has filed a notice of investment dispute on the Mongolian government
subsidiary of SouthGobi Resources, which holds the subsidiary SouthGobi Sands LLC. The
announcement noted that the company management had determined that it had exhausted all
other possible means to resolve an ongoing investment dispute between SouthGobi Sands and the
Mongolian authorities. The notice of investment dispute consists of, but is not limited to, the failure
by the Mineral Resources Authority to execute the pre-mining agreements associated with certain
exploration licenses that include the area known as Zag Suuj and certain areas associated with the
broader Soumber Deposit. The notice of investment dispute triggered the dispute resolution
process, giving the Mongolian Government six months to give resolution. If negotiations between
SouthGobi Resources and the government are not successful, then the former will be entitled to
commence arbitration proceedings under the auspices of the International Centre for Settlement of
Investment Disputes.
A bilateral investment treat is an agreement between two states under which each undertakes to
promote and protect investments made in its territory by entities from the other state. Mongolia
has concluded that 43 BITs, of which some 37 have come into force, including one with Singapore
that came into force on 7 January 1996. The activities and operations of SouthGobi Sands may fall
within the scope of the Mongolia-Singapore BIT, and the inclusion of the Singapore Stock Exchange
(SGQ) may confer standing on SouthGobi Resources to rely up on the Mongolia-Singapore BIT.
Source: Allens
NEMA ACQUIRES NEW AIRCRAFT
The National Emergency Management Agency (NEMA) has acquired a specialized aircraft for use in
the protection against fires and spraying of pesticides.
Thomas Air's Air Tractor AT-602 is the latest model for protecting the environment and agriculture
and will be used in Mongolia. Since the beginning of 2012, the agency has recorded 140 fires
reported in about 100 counties in 16 provinces. Older model aircrafts used by the agency for
spraying pesticides have been retired.
Source: Unuudur
IS MONGOLIA HEADING FOR A REAL ESTATE BUBBLE?
Is Mongolia following a similar ―boom and bust‖ path as Kazakhstan? As a country, Mongolia shares
many commonalities with Kazakhstan: Both are resource economies, former Soviet satellites and

8. have similar cultural heritage. In a similar fashion to Kazakhstan, when the price of copper crashed
in late 2008 during the global financial crisis, Mongolia's government had to call in the International
Monetary Fund (IMF) for help.
The real estate market in Mongolia, especially in the central business district of Ulaanbaatar, has
already seen significant capital appreciation, but it is nowhere near the 30-fold increase in
Kazakhstan real estate prices prior to the Kazakhstan bubble bursting in 2008. More importantly,
mortgages for would-be apartment owners became accessible in Kazakhstan in 2002—the start of
their period of high growth. In Mongolia, however, mortgages are just now becoming accessible to
the general public and most commercial banks still require down payments of 30 percent or more
up front.
The financial industry in Kazakhstan played a large role in stimulating the property bubble by
enabling unqualified creditors to take out mortgages that they could not afford. The global financial
environment of cheap credit and competition among national banks encouraged dependence on
short-and medium term borrowing through the bond market, rather than dependence on banks' own
internal deposits and savings. The phenomenon of borrowing abroad and more lending at home at
the price of loan quality is one not yet observed in Mongolia.
Clearly, speculation about ―Dutch disease‖ contributed to Kazakhstan's real estate bubble. It was
not just one, but many factors, such as oil price fluctuations, inadequate risk management, and
currency devaluation that led to the unsustainable nature of Kazakhstan's real estate market and
economy as a whole. Even though the mining industry is certainly not free of risks, it is undeniable
that mining will bring a ramp up in gross domestic product (GDP) and wage growth, and
consequently induce higher real estate prices.
As Mongolia's property market heats up more, Mongolia must find the right balance between
enabling growth by lowering lending standards and encouraging new home ownership while also
managing risks across the mining and financial sectors in the long term.
Source: Mongolia Real Estate Blog
MONGOLIA PUTS GREATER FOCUS ON TOURISM
President Ts. Elbegdorj said that his country will make more efforts to develop the tourism
industry.
Elbegdorj made the remarks at a meeting with visiting Secretary General Taleb Rifai of the World
Tourism Organization of the United Nations. Elbegdorj said Mongolia has rich and diverse tourism
resources characterized by extraordinary natural landscape, abundant historical heritage as well as
unique ethnic customs.
The upcoming new government would not only develop Mongolia's mining industry, but also make
more efforts to boost the tourism sector as well as related infrastructure, the president added.
Rifai highlighted the key role played by tourism in creating jobs and promoting economic
development, saying the total number of tourists around the world had reached 1 billion at present
and one out of 10 places of work were created by tourism. He said Mongolia has great potential for
developing ecological tourism.
Over the last three years, the number of foreign visitors to Mongolia increased 11 percent, with
revenues up 32.5 percent during the same period. The Mongolian government is expected to adopt
more measures and channel more investment to help reach its goal of attracting 1 million foreign
visitors in a year by 2015.
Source: Xinhua
CLIMATE CHANGE, MINING BOOM THREATEN NATIONAL IDENTITY
Mongolia is nearing a familiar turning point for resource-rich but developmentally poor countries,
but a unique and dynamic set of environmental and cultural factors set it apart from places like the
Democratic Republic of Congo, Nigeria, Bolivia, and Afghanistan as it works to avoid the pitfalls of
the resource curse.
Mongolia's reverence for its nomadic roots extends all the way to its 20-year-old constitution, which
enshrines livestock as ―national wealth‖ to be protected by the state. But today the livelihoods of
families reliant on grazing livestock are under threat from a climate becoming increasingly harsh
and unpredictable.
The Tavan Tolgoi and Oyu Tolgoi projects have led Mongolia to ―the brink of an investment bonanza
that could see its economy double in size every three or four years,‖ according to the Financial
Times. In spite of that resource wealth, more than a third of the country lives in extreme poverty.
Larger herd sizes that came about after Soviet limits on herd sizes were limited and the loss of
production from Soviet factories are exacerbating environmental changes already underway, with

9. the annual temperature rising three times faster than the global average. And 90 percent of the
country is vulnerable to desertification. Climate change and overgrazing have degraded more than
two-thirds of pasture land.
Devastating winters and new opportunities drew many back to the city, where 60 percent of
residents live in ger districts. The city also has the world's worst air pollution during winter.
―Nowhere else in the world do so many people live as if they were refugees from a war or a natural
disaster,‖ wrote Dave Lawrence in the World Bank's East Asia and Pacific Blog.
Corruption makes implementation of new policies difficult. Still, lawmakers have taken noteworthy
strides to ensure the resource boom leads to healthy development. Parliament passed anti-
corruption legislation and established two funds with mining revenues for making payments to the
country's poorest residents and to subsidize prices for basic goods when markets are volatile.
While these measures offer hope for Mongolia's future, whether they can be successfully and
effectively implemented remains to be seen.
Source: New Security Beat
COST OF THE MINING BOOM
Some may call Mongolians lucky to live atop untold sums of mineral resources, but the challenges
ahead of the country and its society are enough to have some wonder if those resources are a
blessing or a curse.
Mongolia is in ―a race‖ to build its institutional, political and moral defenses ―before large-scale
revenues materialize,‖ according to a recent report by the European Bank for Reconstruction and
Development (EBRD). There are ―grounds for optimism‖ it found, but ―remaining challenges are
enormous.‖
While many Mongolians would prefer their resources remain in the ground and in country and
instead rely on herding and tourism to fuel the economy, this may not be a realistic option.
―‖Most people in the countryside do not want mining here,‖ said S. Oyun, a geologist and member
of the Civil Will-Green Party. ―But whether we want it or not,‖ she adds, ―we don't seem many
venues Mongolia can use except mining to expand our economy and integrate ourselves into the
world economy.‖
One economic aspect of the ―resource curse‖ is the way extractive industries crowd out other
sectors and stunt their growth—a phenomenon already evident here, where tourist agencies have
lost many of their English speakers to high-paying mining companies. President Elbegdorj has tried
to take some of the heat out of the mining industry by imposed a moratorium on exploration
licenses.
Though it is too early to predict how the country will turn out, Oyun said, she pointed to new laws
on corruption, conflicts of interest, freedom of information, campaign finance, judicial reform, and
environmental standards as hopeful signs.
Corruption seems to be worsening, however. The country's ranking in Transparency International's
table stands at 120th of 183 nations. But the Independent Agency Against Corruption (IAAC) has
picked up steam in recent months, taking on some high-profile cases; and citizens are speaking out
more, local observers say.
―People are less accepting of the sort of easy corruption that happened 10 years ago,‖ said
Jonathan Addleton, the outgoing U.S. ambassador. ―They freely express their concern.‖
Source: Christian Science Monitor
LONG-TERM BULL MARKET STARTED IN MONGOLIA IN 2006, SAYS PASSIN OF FIREBIRD
Although the European debt crisis has dampened mergers and acquisitions activity this year so far in
the minerals sector, there is still room for activity among small players, particularly in Mongolia,
said resource investor James Passin of Firebird Management LLC.
―The European sovereign crisis, which has raised questions about the liquidity and solvency of some
of the largest banks in the world, has delayed any merger wave,‖ said Passin.
While credit is tight and companies are on guard, interest rates remain low and larger companies
have access to credit through equity valuations. Passin saw ample opportunity for ―mid-and small-
cap oil companies‖ to merge with a rebound for coal in the waits with continued consolidation in
that sector. His feelings for this in Mongolia were particularly strong.
―It's very clear that a long-term secular bull market started in Mongolia in 2006. I believe that this
bull market will last for decades,‖ he said.
Regarding supposed risks of an unstable government as well as uncertain political and business
environments, Passin felt missing out on ―the great bull markets‖ was the bigger risk. He called
recent actions by the government ―theatrics‖ on display for the recent June election, noting ―We

10. think the relative political merits of Mongolia compared to other resource-rich frontier markets will
become even clearer over time.‖
Source: Resource Investor
OT'S OLYMPIC MEDALS BOASTED AS MOST EXPENSIVE
The eight tons of gold, silver, and copper unearthed from mines In Mongolia and Utah and now
under guard at the Tower of London is the largest ever haul used to make Olympic medals.
―The medals arrived at the tower on 2 July, and we will keep them under tight security,‖ Tracey
Sands spokeswoman for Historic Royal Palaces, told AFP.
The 4,700 Olympic and Paralympic medals will be guarded alongside Britain's own crown jewels
until they are presented on the podium. The winners' medals are certainly precious, even though
gold only makes up a tiny portion of their alloy. A gold medal weighing about 410 grams contains
only six grams of gold—1.34 percent of its weight—the remainder being silver compound (92.5
percent) and copper.
However, the recent gold and silver boom that have seen prices double since the 2008 games in
Beijing ensure that the medals are the most expensive in Olympics history. Added to this, the
dimensions make them the heaviest ever struck from the Summer Olympics. In Beijing the medals
were around half as heavy at 200 grams.
The coveted disks were each processed 15 times in a huge hydraulic press known as the Colossus.
The gold, silver and cooper was extracted by Anglo-Australian gold mining giant Rio Tinto PLC from
its Oyu Tolgoi plant in Mongolia and the Kennecott mine in Utah in the United States. The choice
was controversial as its extraction techniques in Utah are considered by some to be polluting.
Source: Bangkok Post
OLYMPIC JUDO WRESTLER “MINING” FOR MORE GOLD FOR MONGOLIA
Mongolian judoka N. Tuvshinbayar begins the day jogging through the glistening grasslands he says
helped make him the country's first Olympic gold medalist.
The media-friendly showman became a national hero when he earned the country's first-ever gold
medal in the men's 100 kilogram class at the Beijing Olympics 44 years after Mongolia first
competed in the games.
―Of course, we athletes are competing for our country. And I'm competing to be an Olympic
champion again, and have my country's name heard across the world,‖ he said.
But like many of Mongolia's nomadic herders raised on the vast steppe, he grew up wrestling, as a
young child with his family's livestock, and later in matches at traditional festivals. He even refers
to his chosen sport as ―judo wrestling‖ which may account for a certain heavy-handedness in his
style.
Almost 400 contenders from 134 countries, up from 96 in 2008, will battle it out in the seven weight
categories for men and women during seven days of competition at London's ExCel exhibition
centre.
Mongolia is also throwing its weight behind freestyle wrestling, boxing and shooting, all of which
involve the traditional combat and hunting skills that 800 years ago helped build an empire that
stretched as far as Europe.
Source: Reuters
EUROZONE CRISIS SPREADS EAST TO DAMPEN CENTRAL ASIAN GROWTH, SAYS EBRD
The 29 East European and Central Asian countries where the European Bank for Reconstruction and
Development (EBRD) invests will grow 2.7 percent in 2012, down from 5 percent last year, reported
the EBRD.
―The biggest downside risk for the transition region is a possible further deterioration of the
eurozone crisis,‖ said the EBRD, which was set up in 1991 to help transform the economies of
former communist countries. The situation ―is now impacting growth across emerging markets.‖
―A timely implementation‖ of measures agreed at a June summit, where leaders opened the way to
directly re-capitalizing banks using bailout funds, should mitigate risks to eastern Europe, the EBRD
said.
Gross domestic product (GDP) in East Europe and Central Asia will expand 3.1 percent in 2013, the
EBRD said, lowering May's 3.7 percent forecast.
Source: Bloomberg
A COMPLICATED RELATIONSHIP
In today's harsh economic climate, most countries are falling over themselves to attract Chinese

11. investment. Mongolia's government, however, has rushed a law through Parliament to make it
harder.
The law requires investments by foreign state-owned enterprises in strategic sectors, such as
mining, to get special government approval. And it has held up a deal by Canadian mining company
Ivanhoe Mines Ltd. to sell a majority stake in a Mongolian coal mine to the Aluminum Corp. of China
Ltd. (Chalco), a state-owned aluminum giant.
―We need a policy to stop all the [mining] licenses ending up in Chinese hands,‖ said Tsolmon, a
former deputy foreign minister. ―otherwise we could wake up one morning and most of our land
would be controlled by the Chinese. That would not be good.‖
But China is already Mongolia's largest foreign investor, and 85 percent of Mongolia's exports—be
they minerals, cashmere, wool, or milk products—go to China. Some Mongolians are worried that
the Oyu Tolgoi copper and gold project and Tavan Tolgoi coal project are also destined for China
once large-scale mining starts there will only deepen their country's uncomfortable dependence on
their giant southern neighbor.
The Mongolian authorities, while seeking the best possible relations with their neighbor, are also
trying to broaden their options. The government is planning for a new railroad, for example, that
would connect to their trans-Siberian track and offer a northern exit route for Mongolia's coal and
copper concentrate.
China is not popular in Mongolia because of its imperial past and also because ―when violations of
labor rights and environmental standards are spotted, they seem to happen usually in factories
linked to Chinese investors,‖ said Oyungerel, a human rights activist recently elected to Parliament.
The illegal influx of Chinese laborers is also a source of resentment, she added.
Source: Christian Science Monitor
CHINESE ECONOMY TO GAIN TRACTION IN SECOND HALF OF 2012
China's economic growth will likely pick up in the second half of 2012 as a raft of policies rolled out
to boost economic activity gain traction, the Ministry of Industry and Information Technology said.
Some economists and investors worry about the effect a ―hard landing‖ to China's economy would
have on Mongolia's export of raw materials to its southern neighbor.
Beijing has followed a program of policy ―fine-tuning‖ since the autumn of 2011, cutting interest
rates, easing rules on bank lending, fast-tracking fiscal spending, and cutting taxes and red tape for
business. The policy response has left the world's second biggest economy on course for a ―soft
landing,‖ according to a new report from the International Monetary Fund (IMF), but it is still facing
downside risks from stiffening global headwinds and potential spillover effects if Europe's debt crisis
deepens.
China's economy expanded at its slowest pace in more than three years in the second quarter of
2012, growing 7.6 percent from the same period a year earlier—just a whisker above the official
government target for the year of 7.5 percent. Quarter-on-quarter, the data showed a sequential
improvement as did a clutch of accompanying indicators, though the economy remains on course for
its lowest full year of growth since 1999.
Source: Reuters
WTO TO PROBE CHINA'S RARE-EARTH POLICIES
The World Trade Organization (WTO) has set up a panel to probe China's rare-earth export policies,
a widely expected move following requests by the U.S., the European Union, and Japan. The fear of
a dwindling supply of the rare-earths that are key elements to smart phones and green technology
equipment has made Mongolia a target source for some nations and mining firms.
The WTO Dispute Settlement Body's decision moves forward the request made in March to have the
agency probe China's export quotas, duties and other restrictions on rare-earths, as well as minor
metals molybdenum and tungsten. But since China set quotas to restrict its rare-earth exports,
global suppliers have made considerable headway in reducing dependence on Chinese supply, and
the findings of the trade body are expected to have limited impact on prices as the world relies less
on China for rare-earths.
Flagging global demand and rising private stockpiles, coming amid worries over China's control over
output have dented international trade. U.S.-based Molycorp Inc. has begun production at its
California mine, and Avalon Rare Metals is developing a deposit in Canada's Northwest Territories.
Japan also has a deal for a rare-earth development project in Quebec, and Australia's Lynas Corp. is
due to start mine production at its Mount Weld facility this year as well as potentially reopen a
mine in South Africa. The Lynas and Molycorp projects could together supply a third of the world's
demand.

12. Ahead of the new capacity getting full onstream, China still controls about 95 percent of global
production. In a changing market, China has struggled with plummeting rare-earth prices as demand
weakened in the past year. If found to contravene WTO rules, China may have to remove or amend
some of its policies and that could further free up the rare-earths market.
China has so far allowed its companies the right to export 21,226 tons of rare-earth metals this year
and has plans to maintain its 2012 quota.
Source: Wall Street Journal
POLITICS
BATBOLD STEPS DOWN AS MPP HEAD
Mongolian People's Party (MPP) Chairman and former Prime Minister S. Batbold has resigned from his
chairman position following his party's recent election loss, blaming a split as the main cause for
the defeat.
Batbold announced his decision at a party conference Tuesday afternoon, saying political and social
conditions at the election were the hardest for the party in the past 20 years. He accused former
party chairman N. Enkhbayar of splitting the party by using the old name, the Mongolian People's
Revolutionary Party (MPRP). Enkhbayar was supported by other political forces and some lawmakers
from the MPP who took part in this split for personal gain, Batbold said.
He said some people who illegally used the old name were the major cause for the election loss.
Voters had confused the name of the MPP and MPRP as one party. Batbold also said there was an
attempt to blame the whole party during the election campaign by arresting and threatening local
party leaders, officials and candidates under the name of fighting corruption.
―It seems we are losing the support of urban residents each year. We lost in all the districts of
Ulaanbaatar except the two disputed districts of Songinokhairkhan and Bayanzurkh. We need to
reach more urban residents,‖ Batbold warned.
Source: Global Times
MPP NAMES NEW CHAIRMAN
The Mongolian People's Party (MPP) has elected O. Enkhtuvshin as its new chairman and G.
Zandanshatar as secretary general.
Zandanshatar won his office with 115 members' votes in favor out of 207, while Enkhtuvshin took
almost 90 percent of the vote at the party's sixth conference, held Wednesday. Enkhtuvshin became
the party's 27th chairman.
Source: Montsame
DISGRUNTLED MPP MEMBERS ESTABLISH NEW FACTION
Leaders from within the Mongolian People's Party (MPP) upset at the poor turnout for their party in
the June election have gathered to form the ―First Wing of the People's Party.‖ Following the loss
of majority power in the last election to the Democratic Party (DP) and its coalition, MPP members
must vacate their leadership posts.
The Wing would like to commence a study to learn why the MPP's participation in the election ―was
so poor‖ with statements given on the involvement in pre-election activity of party members.
Afterwards they would reevaluate the party's organizational structure, policies and decisions.
Source: Montsame
INDEPENDENTS GATHER FOR STRONGER VOICE WITHIN PARLIAMENT
Three independent MPs directly elected in June's election plan to establish a commission of
independent candidates within Parliament. The three representatives are S. Ganbaatar, Ts.
Davaasuren, and Kh. Bolorchuluun.
―Electors voted for us because they supported our election platforms. The commission will work
actively to implement the election platform of each independent candidate,‖ said one of the MPs.
Source: News.mn
PARLIAMENT ELECTS NEW SPEAKER
Democratic Party (DP) nominee, Z. Enkhbold, was elected as Mongolia's new Parliamentary Speaker.
A former chairman of Parliament's standing committee on foreign policy and security, Enkhbold was
elected in a session of Parliament. Voting on the position took place in the absence of the
Mongolian People's Party (MPP), which boycotted the vote in protest at what it claimed was a lack
of consultation by the DP in nominating a candidate for the position on 16 July.
Source: CRI English

13. MPP REFUTES SPEAKER-ELECT
Representatives of the Mongolian People's Party (MPP) protested the election of Z. Enkhbold as
Parliamentary Speaker in a press conference.
―The procedure of electing a new speaker of Parliament violated several articles of the Law on the
Parliament of Mongolia and bylaws on parliamentary sessions,‖ said a party representative.
They complained that having the second eldest candidate of a party in the chair was in violation of
Mongolian law and since no party gained a 39-seat majority in the June election, the party with the
most seats should negotiate the decision with other parties in Parliament. The MPP invited Enkhbold
to attend an MPP meeting, but the nominee refused, said the opposition party representatives.
The party vowed to file a claim with the Constitutional Court.
Source: Info Mongolia
COALITION TAKES OVER DURING CRUCIAL ERA FOR MONGOLIA'S MINERAL WEALTH
Three weeks after winning 31 out of 76 seats in Mongolian parliamentary elections on 28 June, the
Democratic Party (DP) said it has formed a coalition with a number of small parties in order to
secure a majority.
The DP is known for its progressive pro-business stance, but has historically been the weaker of the
two major parties. The next biggest party in the coalition is the controversial Mongolian People's
Revolutionary Party (MPRP). The MPRP's aggressive policies on national ownership of the country's
coal, copper, uranium, gold, zinc and lead mines has worried some investors that the new
government may further lean away from luring foreign investment.
The MPRP is due to take four or five of the 18 ministries on offer, and analysts predict that a
member of this party could take the finance minister position. These two may seem like an unlikely
pair for coalition, but both can agree that the Mongolian People's Party (MPP) has had its turn and
must now make way.
Over the next four years the country's vast mineral wealth will be exploited and the state coffers
will begin to fill, putting the new government in a strong but testing position. Newly selected Prime
Minister N. Altankhuyag is an ex-physics professor-turned-revolutionary in 1989, and has been
fighting as an underdog ever since.
―In the last four years we have just started to use our mining resources, but the coming four years
is a tipping point,‖ said Altankhuyag.
As with all coalitions, there is a threat that the decision-making process will be fragmented. The DP
itself is comprised of many different factions, some more radical than others, and the coalition
partners could pose problems for Altankhuyag and his party. The opposition MPP, on the other
hand, enjoys a consolidated, experienced group of political veterans ready to pounce on the DP
should they falter over the next four years.
Source: Business News Europe
BRITAIN WARNS IT WILL CLOSELY FOLLOW ENKHBAYAR'S TRIAL
British Prime Minister David Cameron has sent a letter to former President N. Enkhbayar's wife, O.
Tsolmon, that his country will be following her husband's trial to ensure that it is line with ethical
standards and human rights, said the Mongolian People's Revolutionary Party (MPRP). N. Enkhbayar,
the leader of the MPRP, is due for trial by the end of this month on accusations of graft.
Cameron said his government has communicated its strong feelings clearly to both the Mongolian
Embassy in London and the Mongolian government. He added that the United Nations would also be
closely observing the court hearing in regard to human right violations.
Source: Zuunii Medee
TURKISH AMBASSADOR PRESENTS CREDENTIALS
Turkey's newly appointed ambassador extraordinary and plenipotentiary to Mongolia, Mustafa
Sarnic, presented his credentials to President Ts. Elbegdorj this week.
Elbegdorj accepted the newly appointed ambassador and congratulated him on reaching the high
diplomatic office. The president mentioned that during the 2010 Conference on Interaction and
Confidence Building Measures in Asia (CICA) held in Istanbul, Turkey he met with Turkish President
Abdullah Gu where he invited his Turkish counterpart to visit Mongolia.
―Our two countries are actively cooperating in the frames of the United Nations, the North Atlantic
Treaty Organization [NATO], the Organization for Security and Co-Operation in Europe [OSCE] and
other international organizations,‖ said Elbegdorj.
He thanks the Turkish government for its support for Mongolia's membership to the OSCE as a

14. participant country and its partnership for archaeological work to study their shared histories. He
also noted Turkish Airlines decision to open a flight route from Istanbul to Ulaanbaatar.
Source: Info Mongolia
UKRAINE SIGNS ENVIRONMENTAL PROTECTION PACT WITH MONGOLIA
Ukrainian President Viktor Yanukovych has signed into law the ratification of the agreement
between the Cabinet Ministers of Ukraine and the Mongolian government on the prevention of
emergencies and dealing with their consequences.
The agreement was signed in Kyiv on 29 June last year. It defines the cooperation as the joint
monitoring of the environment, predicting emergencies and estimating their consequences, and
risks of environmental damage and harm to people's health.
The agreement plans for various types of aid to help people, protect the environment, and
maintenance support by subdivisions for rendering urgent aid and providing medical services to
those injured in an accident. It also envisions an exchange of information to conduct search and
rescue operations to deal with the consequences of disaster caused by both nature and humans.
Source: News.mn
ROCK N' ROLL DIPLOMACY
History was made last week when a grunge rock quartet performed in Ulaanbaatar. Banana Monkey
only played two songs at a concert that opened Naadam, but was China's first band to ever play in
Sukhbaatar Square during the festival.
What might seem like a few small steps for the globalization of rock is actually a giant leap forward
for Mongolian-Chinese relations, otherwise fraught with tension almost since the beginning of time.
China gets little love in Ulaanbaatar, despite being Mongolia's largest trading partner and a catalyst
for a mining boom that has made Mongolia's economy one of the world's fastest growing. Anti-
Chinese graffiti is dabbed on the streets of Ulaanbaatar, and an alarming rise in neo-Nazi groups
and the anti-China violence they espouse has alarmed officials on both sides of the borders.
―Everybody warned us about the danger of going to Mongolia,‖ said Quiang Fan, a guitarist of
Banana Monkey, during a show in Beijing before the Mongolian tour. ―We've never played outside
China. We're a little excited and a little scared. A lot of people say the Mongolians hate the
Chinese, but we don't know.‖
His education came quickly and in shocking fashion. Soon after Banana Monkey finished its short set
at the square, Mongolia's most famous rapper Gee launched into ―Hujaa,‖ his fervent anti-China
diatribe. Hujaa is an extremely derogatory term for Chinese that has enormous currency in modern
Mongolia.
Jack Weatherford, an American cultural anthropologist, explained why this mistrust goes back a
thousand years. Some of the oldest carved stones in Mongolia ―basically warn against going to
China.‖ He added that a local insult is, ―you're not Mongolian. It can be worse, like, you are not
human, you are Chinese.‖
Nearly 90 percent of Mongolians have negative attitudes about China, according to a poll by the
Sant Maral Foundation. Some even fret that the Chinese will steal Naadam, also celebrated in
China's Inner Mongolia autonomous region. Last year a massive stadium opened for Naadam in
Orods, Inner Mongolia, at a reported cost of USD 100 million.
Source: Wall Street Journal
DINOSAUR SKELETON TO BE RETURNED TO MONGOLIA
The Tarbasaurus baatar auctioned in New York in June will be returned to Mongolia within the next
two to three months, said lawyer Robert Patner during a visit to Mongolia.
Patner visited Mongolia with his partners Larry Yurs and Adam Kaig where he congratulated the
Mongolian government for its efforts to prove that the dinosaur had come from Mongolia and have it
returned.
According to Patner, the skeleton was imported from England and declared as the ―skeleton of a
lizard‖ by U.S. citizen Eric Procoly and that Procoly has been involved in a smuggling case before.
He said another dinosaur skeleton up for auction in California had also been confiscated.
―The Mongolian police should do an immediate investigation into this case,‖ said MP Ts. Oyungerel,
who had originally informed the president of the dinosaur skeleton. ―First, they have to find that
Eric Procoly has entered into Mongolia, and if so how many times and how long he visited
Mongolia.‖
The president first objected to the sale of the dinosaur in New York during his visit to Chicago for a
NATO meeting. Shortly afterwards, the president moved for a court order to prohibit the sale by

15. Heritage Auctions, a Texas-based auction house.
Source: News.mn
__________________________________________________________________________________
ANNOUNCEMENTS
DISCOVER MONGOLIA-2012, AUGUST 30-31
The Discover Mongolia conference will be held on August 30-31 in Ulaanbaatar. The conference
venue will again be the Children's Palace. BCM is a supporting organization of Discover Mongolia
2012, and its members will have the opportunity for an early-bird rate for attendance.
Oyu Tolgoi LLC, Mongolia's largest copper and gold mining firm, will be the event's premier sponsor,
in addition to the forum's ―gold sponsors‖: Monnis International Inc., Xanadu Mines Ltd., Aspire
Mining Ltd., Micromine Mongolia LLC, and Mongolian Mining Corp. The conference agenda will
concentrate on recent developments that have taken place in Mongolia's mining and foreign
investment landscape.
For more information, call +976 7014 9762 or email info@discovermongoliaforum.com.
__________________________________________________________________________________
REGISTER NOW FOR MONGOLIAN MINING DIRECTORY-2013
Mongolian Mining Directory-2013 which provides information database for Mining companies,
investors, suppliers, service companies, government and non government organizations will be
published for the fourth year to commemorate the 90th anniversary of the Mongolian mining
industry. The MMD is distributed free of charge to international and domestic mining companies,
international conferences and exhibition, embassy offices in Mongolia and foreign countries to
investors.
BCM is a Supporting Organization of the MMD and welcomes Mongolian mining industry participants
who are interested in advertising their products and services in Mongolian Mining Directory-2013.
For more information please visit: www.mining.mn, www.mongolianminingdirectory.mn or call
+976-7011 5590.
__________________________________________________________________________________
REGISTER FOR BCM‟S MINING SUPPLY CHAIN DATABASE AT NO COST
The new version of BCM‘s Mining Supply Chain Database is ready for use. Following the initiative of
Oyu Tolgoi LLC, the BCM has maintained the Mining supply chain database since March 2009. It is
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.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration.
If you have any questions regarding the database, please contact Undral at undral@bcmongolia.org
or 317027.
__________________________________________________________________________________
“MM TODAY” on MNB-TV, Fridays at 19:00
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled for 19:00 tonight. Tune in to watch this program that reports stories from today‘s BCM
NewsWire.
_______________________________________________________________________________
POSTINGS ON MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The new ‗Presentations‘ section on BCM‘s Mongolian website can be reached via link to
bcm.mn/itgeluud. Several presentations already posted include World Bank‘s Mongolia Quarterly
Economic Update–June 2012; 11 speeches from the 2nd Coaltrans on May 23-24 in UB.
As a key component of BCM‘s Mongolian website ‗News‘ section, articles from the Government‘s
―Open-Government.mn‖ site are regularly posted.
___________________________________________________________
POSTINGS ON ENGLISH WEBSITE 'PRESENTATIONS', 'MONGOLIA REPORTS' AND „MONGOLIAN
BUSINESS NEWS‟
On BCM‘s English website, ‗Resource, Presentations‘ section, for your review are 4 presentations
from BCM‘s June 25 monthly meeting; 12 presentations from the 2nd Coaltrans on May 23-24 in UB;

16. 3 speeches from ―Corporate Governance Training for Directors‖ on April 27-28; 12 presentations on
Mongolian entities at Mines and Money Hong Kong 2012 on March 21-23; 11 presentations from Coal
Mongolia 2012 on February 9-10; and speeches from all BCM‘s monthly meetings in 2011-12.
Also on BCM‘s English website, ‗Resource, Mongolia Reports‘ section, please note the Polit
Barometer, June 2012, and the Polit Barometer, April 2012 by Sant Maral Foundation (Mongolian
and English versions); Risk Report for Mongolia 2012 by Mongolia Economic Forum; ―Preliminary
estimates of staggering costs of inefficient trade regulation in Mongolia‖ by Olin McGill, consultant
to USAID BPI; ADB‘s Asian Development Outlook, April 2012; detailed results of BCM‘s NewsWire
survey of March 2012; World Bank‘s Mongolia Quarterly Economic Update, February 2012; Executive
Summary of the Mongolian Real Estate Report 2012 by M.A.D. Investment Solutions; 2011 Mongolia
Investment Climate Statement by Economic and Commercial Section of U.S. Embassy, Ulaanbaatar,
Mongolia; and Transition Report 2011 (Mongolia data) by EBRD and the Economic Research Institute.
We are now posting some news stories and analyses relevant to Mongolia to BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until each Friday to put them all
together in the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday,
and will incorporate items that are already on the home page, so that it presents a consolidated
account of the week‘s events.
_____________________________________________________________
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.
Of course for news information, interviews, and announcements regarding our organization, visit
the official BCM website at www.bcmongolia.org and www.bcm.mn.
__________________________________________________________________________________
ECONOMIC INDICATORS

17. MICC MINING INDEX
As of July 25, 2012, the MICC Mining Index was at 86.83, down by 3.69 points or 4.07 percent from
last week. Since July 18, gold price increased to USD 1583.25 from USD 1575.25 per ounce, while
copper price (LME) decreased to USD 7413.25 from USD 7637.25 per tonne.

18. JUNE MACROECONOMIC OVERVIEW

20. 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]
June 30, 2012 *14.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 15.1% y-o-y, Ulaanbaatar city, June 30, 2012
CENTRAL BANK POLICY 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]
CURRENCY RATES – July 26, 2012
Currency Name Currency Rate
U.S. dollar USD 1,349.80
Euro EUR 1,634.34
Japanese yen JPY 17.26
British pound GBP 2,097.52
Hong Kong dollar HKD 174.00
Chinese yuan CNY 211.22
South Korean won KRW 1.17
Russian ruble RUB 41.11
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