29.06.2012, NEWSWIRE, Issue 228

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 228 – June 29, 2012
NEWS HIGHLIGHTS:
Business:
 OT reaches 90 percent completion;
 Rio hopes to have OT funding lined up by December;
 Chinatown rises on Mongolia's crown jewel, OT;
 Mongolia still open to foreign investment in TT western block;
 Citizens to receive Erdenes MGL preferred stock;
 SouthGobi suspends operations amid regulatory issues;
 SouthGobi says license worries dampened sales and pricing;
 Altan Rio finds “Boroo-type” deposit at Khavchuu;
 MobiNet looks to provide free Wi-Fi and IPTV services;
 Foreign Investment Law sends stock prices on downward trend;
 Haranga appoints Lippo Group nominee to board;
 APIP appoints chief operating officer;
 Apple opens App store in Mongolia;
 Rio invests more in iron-ore operations.
Economy:
 Resource nationalism to irk investors as Mongolia goes to polls;
 Government greenlights Sainshand complex;
 New town to surround planned international airport;
 Stabilization Fund in need of scrutiny;
 Cabinet bolsters reserves to prevent spikes in meat and fuel prices;
 Mongolian audit officers trained in Japan, South Korea;
 IDN ccTLD for Mongolia passes string evaluation;
 Officials agree to increase air traffic between China and Mongolia;
 Mongolia growth speeds ahead with sharp curves in the distance;
 Chinese immigrant population approaches maximum quota;
 Officials look to establish Mongolia-Tuva port;
 New road to reduce city traffic;
 Case study for microfinance;
 Custodians set up camp;
 FMG fund manger confident investment to pick up after elections;
 The uneven boom;
 Rio confident in copper outlook;
 Rio exec sees moderation in iron-ore prices.
Politics:
 DP takes slight lead in direct electorate vote;
 Observers prepare while GEC takes precautions for election;
 Female candidates vie for places in Parliament;
 Parties battle it out to slice up economic pie;
 Voters seek a bigger share of world-beating economy;
 Throwing stones;
 Rising inequality dominates Mongolia's polls;

 Constitutional Court denies Enkhbayar’s appeal;
 Enkhbayar barred from leaving Ulaanbaatar to campaign while on bail;
 Enkhbayar's trial set for after Naadam;
 Mongolia juggles its neighbors' interests;
 Mongolia braces for change;
 Gay Mongolians see flicker of progress amid fear and ostracism;
 U.S. attorney wants dinosaur returned;
 Fossil dealer speaks out.
ECONOMIC INDICATORS:
 MSE Top 20 Index by Market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central Bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
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BCM MONTHLY MEETING RECAP
The meeting on 25 June with Laurenz Melchers in the chair was attended by 90 members and
invited guests.
Melchers opened the event with the announcement that BCM would celebrate its five-year
anniversary with a football tournament, the BCM Football Cup, on 7 July at High School No. 5 in
Ulaanbaatar. A press campaign is being planned for the anniversary and a photo album history of
BCM will be compiled. Additionally, the BCM Membership Renewal dinner will be held on 5
November, with special commemoration of the five-year milestone.
BCM Executive Director Jim Dwyer reminded guests that July would not have a meeting and the

next meeting would be held on 27 August. He went on to report on the difficulties BCM members as
well as outside organizations within the private sector have had since the passage of the new
Foreign Investment Law.
―Some will definitely need parliamentary approval while others will need more clarifications in the
law,‖ said Dwyer speaking on the predicament some companies have found themselves in due to
the law's ambiguities and the fact that FIFTA is not allowing any share transfers for businesses in
sectors of strategic importance until they have regulations, most likely sometime after Naadam.
The executive director reported that one law firm has had seven projects delayed that might be
impacted by the law. One is on hold due to a lack of definition of the term ―invest‖ which makes it
unclear if a transaction must be approved. Another is an Australian firm with mining licenses in
Mongolia which has found itself at a standstill as it tries to restructure for tax reasons by inserting a
holding company without knowing if they need go through the entire approval process. A Canadian
company has the same issue. Another, a local bank is left unsure how to make a change for one of
its foreign shareholders since the FIL does not address ―collective‖, so it is unclear if this must be
approved. There is also the threat of high penalties if the government deems a company has been in
violation of the law.
BCM membership now stands at 227. The eight most recent members are:
1. ADEN Services Mongolia LLC was created in Mongolia as a majority Mongolian-owned joint venture
partnership representing a unique combination of local experience and international expertise to
provide International Standard Camp Management Services in Mongolia. As a minority partner in the
joint venture, ADEN Services provides significant expertise as an international leading provider of
Integrated Support Services worldwide. ADEN Services has developed a new approach to remote site
services focusing on the quality of life for employees and an innovative CSR policy in every country
in which it operates.
2. Aero Mongolia LLC was established in 2001 and launched its first flight on 3 June 2003. Currently
the airline employs over 190 employees, well equipped with up-to-date technologies and own three
Fokker-50 aircrafts. Aero Mongolia Airlines operates 10 daily domestic and two international flights
from Chinggis Khaan International Airport in Ulaanbaatar. In June 2007, Aero Mongolia was acquired
and became a subsidiary of Monnis International LLC.
It received prestigious ―White Gold Star‖ award from the World Quality Association.
3. The British School of Mongolia has the mission to provide its students with the National
Curriculum of the England and Wales. The subjects of the English National Curriculum of England
and Wales will be taught in English language, and the subjects of Mongolian language, literature,
and Mongolian history and culture will be taught in Mongolian language in conjunction with the
educational standards of Mongolia.
4. Genie Energy Ltd. believes that competition and ceaseless innovation are required to meet the
world's growing demand for affordable, environmentally sustainable and reliable sources of energy.
It is comprised of two divisions: IDT Energy and Genie Oil and Gas.
IDT Energy, founded in 2004, has grown to become the largest independent residential energy
service provider (REP) in New York State, and in 2010 it entered deregulated markets in New Jersey
and Pennsylvania. Genie Oil and Gas (GOGAS) is pioneering technologies to produce clean and
affordable transportation fuels from the world's abundant unconventional fuel resources such as
shale.
5. IMC Montan is an internationally-owned independent mining consultancy which operates in the
Former Soviet Union (FSU), principally through its Russian-registered company, OOO IEEC. It is
based in Moscow and has been delivering services to the mining industry in the FSU since 1992,
undertaking Scoping, Pre-Feasibility and Feasibility Studies, technical assignments, JORC Reserve
Valuations and Mineral Expert Reports.
6. International Technical College partnered with Box Hill Institute TAFE (Melbourne, Australia) and
Sustainability Pty. (Perth, Australia) to offer Australian nationally accredited training in Mongolia.
Its staff come from Australia, the United States and Mongolia with diverse industry experience and
acquired Australian accredited teaching certificate.

7. Industrial Construction Corp. was founded in January 2011 as a joint venture of Mongolian MIH
Group and Chinese NFC Co., Ltd. In 2012 ICC LLC has concluded contracts on Tsairt Mineral LLC‘s
employee‘s apartment complex and 10 km road construction in Baruun Urt city, Sukhbaatar
province. ICC LLC is planning to participate in the construction projects in mining sector,
infrastructure and cooperate with foreign and domestic companies.
8. Khan Lex Advocates LLC represent clients in their interactions with the legislative, executive and
judicial branches of the Mongolian Government. While a full-service law firm, the firm devotes
special focus to the Mongolian and foreign legislation related to securities, financial services,
merger and acquisition (M&A) in addition to a host of other legal needs.
Based in Ulaanbaatar, the partners in Khan Lex Advocates have vast prior experiences in diverse
fields of professional work. One of their strengths is the ability to mobilize international experience
and expertise in the form of its association with Clyde & Co international law firm.
G. Ariunkhishig, Managing Director of the British School of Ulaanbaatar introduced her school for
the first presentation of the evening. The British School's chief aims are to provide the national
curriculum of England with Mongolian content while providing a high-quality staff and a favorable
environment for learning.
The English curriculum is utilized by 30,000 schools in the United Kingdom and overseas. All
students will graduate with an IGSE and sit for A-level examination. Its core subjects are math,
English and science.
The school's facilities include four main buildings and a gym with an indoor swimming pool. This
September will mark the school's first year of operation, and it is currently accepting students
between the ages of 5 and 13 for enrollment. Class sizes will be a maximum of 20 pupils for year
one and 24 for all other years.
D. Bat-Ochir, Chief Executive Officer of XacBank, presented his bank to the audience, giving a
detailed description of its beginnings and current business model.
XacBank is one of Mongolia's top four banks and is the bank with the most balanced and diverse
shareholders, said Bat-Ochir. Its asset quality has been number 1 since 1998 and it can boast strong
corporate governance.
―Management has been with the bank since day one, and I have the privileged to have been with
the bank since the project was founded, before it was even a bank,‖ said Bat-Ochir.
Some of the bank's key strengths Bat-Ochir introduced to the audience include a solid credit rating,
a proven growth track record, and a strong capitalization.
L. Byambaa, Partner at UMC Holding, spoke about the importance of introducing corporate pension
plans. Pensions are crucial, she said, to provide added incentive to attract talented personnel,
develop a positive image for corporate social responsibility (CSR) and solve lingering social issues in
Mongolia.
―I think the time has come and we can see there is interest,‖ she said, ―It would be the solution to
many pressing problems,‖
Social insurance faces serious obstacles that it may not be able to overcome. The minimum pension
of MNT 105,300 is far below what an average person can live on, yet it is what 53 percent of the
Mongolian population receives. The population is beginning to age and with life expectancy on the
rise, social insurance is simply not sustainable.
UMC offers many solutions such as corporate pension plans. She urged companies take advantage of
these options for the benefit of the company as well as its workers.
―This is a good way to prove your company is here to stay, and that your company cares about the
lives of Mongolians,‖ said Byambaa.
L. Sumati, Director of the Sant Maral Foundation, gave an update on the political climate as
elections were approaching for his final presentation.
Sumati was quick to point out that there had been great change among the opinions of voters since

the last poll given in April. One month ago the Democratic Party (DP) and Mongolian People's Party
(MPP) were neck and neck, each receiving similar preference from voters. This time, however, the
DP was ahead by 14 points with 42.6%. There was also considerable attention brought to the
Mongolian People's Revolutionary Party (MPRP), which is largely seen as a protest vote option from
the two main parties. In any case, the party has been successful in attracting voters who might have
otherwise voted for the MPP, accounting for the DP's strong lead.
It is likely no small coincidence that the head of the MPRP, former president N. Enkhbayar, topped
the list of the country's most popular politicians. In April Enkhbayar was second behind
Confederation of Trade Unions President S. Ganbaatar. A section of the population has rallied
behind the former president since his arrest on charges of graft which many see as a politically
motivated.
Sumati concluded the presentation with two possible scenarios. The first gave the DP a majority
with a total of 49 seats. The second had the DP as the party with the most seats, with 40 seats, still
a majority and still just enough to form a government. In Sumati's opinion, the first scenario was
the more likely one.
BUSINESS
OT REACHES 90 PERCENT COMPLETION
Development of the Oyu Tolgoi copper and gold mine is 90 percent complete, said Cameron McRae,
Chief Executive Officer of Oyu Tolgoi LLC. McRae told journalists that extraction would begin in
mid-August.
McRae, who is also Rio Tinto PLC's Country Director in Mongolia, said the project will still need to
settle the issue of procuring a power source as well as construct an international airport and install
a 35-kilowatt power line. In addition to supplying power to Oyu Tolgoi's operations, it will provide
24-hour electricity to the resident of Khanbogd Soum, a nearby community.
Initially, Oyu Tolgoi is likely to import electricity from China in the first three to four years, but
negotiations are still on-going. Developers are also planning for the construction of their own power
plant, which would need three years for completion.
Source: Udriin Sonin
RIO HOPES TO HAVE OT FUNDING LINED UP BY DECEMBER
Financing to expand the USD 13 billion Oyu Tolgoi copper mine in Mongolia is likely to be locked in
by the end of the year, said an executive with the mine's operator Rio Tinto PLC.
Investment in Oyu Tolgoi helped drive growth in the central Asian Country to 16.7 percent in the
first quarter of 2012 and may already account for more than a third of Mongolia's economy.
―We are currently in the process of working with banks, and have been for a couple of years, to put
in place the world's largest ever project finance raising for the industry and hopefully in the next six
months we will conclude that,‖ Cameron McRae, Mongolia's Country Manager for Rio Tinto and Chief
Executive of Oyu Tolgoi LLC, said in an interview.
The project has already cost USD 7 billion in capital investment, and estimates in March said the
second phase may cost more than USD 5 billion, heaping pressure on the Anglo Australian mining
giant.
The project is on track to begin producing ore by the end of August, six months ahead of original
schedule, and it will go into commercial operation next year. But much still depends on securing
electricity from neighboring China. McRae said he expected commercial agreements with power
generators in the Chinese region of Inner Mongolia to be completed on time, but conceded that
geopolitical concerns between China and Mongolia had slowed the process.
Rio Tinto expects to be given the go-ahead to build its own on-site power plant within the next few
weeks. In an ideal world, it should have started sooner, McRae said, but it would have pushed
capital expenditure up by another USD 1 billion and put further pressure on the project's strained
foreign shareholders.

―The initial USD 7 billion was all being funded by foreign shareholders and we haven't gone to
external debt. I think the capacity of the shareholders was pretty well maxed out.‖
Source: Reuters
CHINATOWN RISES ON MONGOLIA'S CROWN JEWEL, OT
Mongolia nationalism has often meant a wariness of its uncomfortably large neighbor to the south.
Now, news that one of Mongolia's crown jewels—the Oyu Tolgoi copper-gold project—employs more
than a third of its workforce from China could set the stage for a surge in tensions between the two
countries.
Oyu Tolgoi is in the final stages of preparations for production due next year. It represents for
Mongolia not just the hope of leapfrogging the national development ladder, but also the chance to
create a truly Mongolian cash cow. Trouble is: Out of the roughly 15,000 employees and contract
workers currently on site, around a third are Chinese, as Masa Igata, the chief executive of
Ulaanbaatar-based investment firm Frontier Securities, said. Mongolian media, who latched on to
the story last month, have said the closer to half the work force is Chinese, prompting government
investigation last May.
China's increasing economic might and the growing presence of Chinese businessmen and laborers
has led to a surge of anti-Chinese sentiment in the country in recent years, and are the chief target
of nationalist group Blue Mongol. Chinese involvement in mining operations has occasionally led to
flare ups in other countries, most notably in Zambia, where Chinese managers of one mine elected
to try to contain labor unrest by shooting local employees last year.
A spokesperson from Rio Tinto PLC, the Anglo-Australian miner leading the project, David Luff, said
Oyu Tolgoi employs 12,921 Mongolian, or 63 percent of the current workforce. He said this was
slightly more than the 60 percent required by the company's agreement within the Mongolian
government. When the mine is fully operational, the local work force requirement will be bumped
up to 90 percent. Luff said Rio Tinto is involved in ―the largest training program ever undertaken in
Mongolia.
Still, the Chinese presence during this vulnerable time makes an uneasy courtship, and Oyu Tolgoi
may be the canary in the mineshaft.
Source: Wall Street Journal
MONGOLIA STILL OPEN TO FOREIGN INVESTMENT IN TT WESTERN BLOCK
Mongolia is still open to foreign investments in the western block of the giant Tavan Tolgoi coal
mine and has not yet decided on whether to go alone on developing its prized asset, President Ts.
Elbegdorj said.
Talks with foreign groups to develop Tavan Tolgoi have hit a snag since July last year after the
government withdrew a decision to hand mining rights to a consortium comprising China's Shenhua
Group, United States-based Peabody Energy, and Russian-Mongolian group headed by Russian
Railways.
An executive with the state-owned firm in charge of the Tavan Tolgoi project said in April that
Mongolian might develop the mine on its own.
―I think balancing investors, it is essential that it is in line with policies and in line with our national
security,‖ Elbegdorj said. "We have two big neighbors and we need investment. I think the door is
still open in the negotiations with big national investors."
Source: Reuters
EVERY CITIZEN TO RECEIVE ERDENES MGL PREFERRED STOCK
At a recent regular meeting of the Cabinet, officials decided to grant every citizen one share of
preferred stock of Erdenes MGL. Erdenes MGL is the holding company with ownership of Erdenes-
Tavan Tolgoi JSC and (34 percent) Oyu Tolgoi LLC as well as the Shivee Ovoo coal deposit.
―This is an expression of the cabinet to realize its policy of equally distributing benefits of the
natural resources to every person,‖ said Prime Minister S. Batbold.
An owner of a share of preferred stock of the holding company would hold special rights to a

dividend before the government and other shareholders. Erdenes MGL owns 100,000 units of
common stock and 3 million units of preferred stock, making it possible to distribute shares to each
person listed in the state registration.
Preferred stock comes will some limitations. Owners will not be able to sell their stock or present it
to others. It would also be illegal to inherit it or use as collateral.
Source: Montsame
SOUTHGOBI SUSPENDS OPERATIONS AMID REGULATORY ISSUES
SouthGobi Resources Ltd., which is at the center of a controversy over a Chinese acquisition bid,
said it would stop production this month.
Operations at the Ovoot Tolgoi mine ―will be entirely curtailed‖ as of the end of this quarter,
SouthGobi Resources said in a statement. It cited weak market conditions and regulatory issues. The
company said earlier that Mongolian authorities asked it to suspend production while they review a
plan by state-owned Aluminum Corp. of China Ltd. (Chalco) to acquire a majority stake in the miner
from a Canadian company.
Mongolia has profited selling coal, copper and other minerals to China's booming economy, but
some in the sparsely populated North Asian nation are uneasy about possible economic domination
by their giant neighbor.
Chalco's plan to buy a 57.6 percent stake in SouthGobi Resources from Canada Ivanhoe Mines Ltd.
triggered anxiety in Mongolia about Chinese ownership of a major resource producer. Last month,
Parliament passed a foreign investment law that appeared aimed at stopping Chalco. It requires
government approval for investments in mining or other strategic industries if the investors are
foreign state-owned companies or if foreign investment would exceed 49 percent of the venture
and total more than USD 76 million.
Chinese mining and energy companies have been investing abroad in hopes of capturing more of the
profits from global demand for resources. Mongolian leaders want to develop their economy by
creating industries to process minerals and other resources before they are exported. They worry
Chinese owners might undercut that by shipping raw ores and other materials across the border for
processing.
SouthGobi Resources said it has failed to receive regulatory approvals and permits due to the
uncertain situation. It said that included approval of an environmental report that is required to
move ahead with plans to operate a coal-handling facility. The company said it already has cut back
operations at Ovoot Tolgoi to avoid having too much unsold inventory on hand.
Source: Washington Post
SOUTHGOBI SAYS LICENSE WORRIES DAMPENED SALES AND PRICING
Coal miner SouthGobi Resources Ltd. said uncertainty over its licenses in Mongolia is making it
difficult to estimate sales volumes and pricing for the year.
The Canadian miner has been facing uncertainties over its licenses and its proposed takeover by
Aluminum Corp. of China Ltd. (Chalco). The Mineral Resources Authority of Mongolia in April
requested the suspension of exploration and mining activity on certain licenses but the company has
not received any official notification so far, SouthGobi Resources said.
―Many government bodies and regulatory authorities in Mongolia are reluctant to provide approvals
and permits due to the uncertain position,‖ the company said in a statement.
Lack of clarity has also dampened customer sentiment in the current quarter and many are
reluctant to enter into new purchase commitments, the company said.
Source: Reuters
ALTAN RIO FINDS “BOROO-TYPE” DEPOSIT AT KHAVCHUU
The most recent assays from Altan Rio Ltd.'s drill exploration program at Khavchuu gold exploration
project include a high grade intersection within ―Boroo-type‖ host rocks and alteration, referencing
Centerra Gold Inc.'s Boroo gold mine, located not far from Khavchuu.
―Our exploration team has successfully demonstrated its ability to target and explore the large

Khavchuu gold system, only 10 kilometers from Centerra Gold's Boroo mine and mill complex,‖ said
Evan Jones, president and chief executive officer. ―We are encouraged by these results and plan to
advance the gold discovery with a focused exploration program.
The 1,900 meter drilling program returned down-hole gold and arsenic anomalies over a four by six
kilometer. Khavchuu covers 714 square kilometers and is part of the Yeroogol Gold Belt of northern
Mongolia.
Source: Altan Rio Ltd.
MOBINET LOOKS TO PROVIDE FREE WI-FI AND IPTV SERVICES
First Mongolian Media Ltd. has entered into a memorandum of understanding (MOU) with MobiNet
LLC, the country's largest broadband telecommunications company.
MobiNet, a subsidiary of MobiCom, has in excess of 60 percent market share of Mongolia's mobile
phone subscribers. At approximately 64 percent, the current mobile phone penetration of Mongolia
is still well below that of the Western world but is expected to reach 100 percent penetration
within three years.
Over the next six months, they will work toward reaching the final agreement and to implement the
advertising-funded, free Wi-Fi media and IPTV services throughout Mongolia.
Source: GoConnect Ltd.
FOREIGN INVESTMENT LAW SENDS STOCK PRICES ON DOWNWARD TREND
Mongolian Mining Corp. (MMC) the nation's biggest coking coal exporter, slumped to a record low on
speculation investment rules will be tightened after this week's parliamentary elections.
The Hong Kong-listed coal producer fell 6.8 percent to HKD 4.66 (USD 0.60) at the close, the lowest
since the shares started trading in October 2010. Modun Resources Ltd., an Australian company
that's developing a thermal coal project in Mongolia, fell 6.7 percent in Sydney and Xanadu Mines
Ltd. dropped 15.9 percent. SouthGobi Resources Ltd. fell 25.2 percent in Hong Kong.
There is a growing concern among Mongolian citizens about the way politicians are handling the
country's mineral resources. Lawmakers, seeking to control ownership of assets, approved a law in
May requiring Parliament to approve deals in which overseas investors hold more than 49 percent of
the equity for transactions exceeding USD 75 million in strategic sectors, including mining.
―Whatever the results will be, there will be deterioration in the investment climate in Mongolia,‖
said Chris Mardon, managing director of Subiaco, Australia-based Modun Resources.
The passage of the law curbing foreign investment was accelerated after a public outcry following
moves in April by Aluminum Corp. of China Ltd (Chalco) to buy SouthGobi Resources. Parliamentary
elections are scheduled in Mongolia on 28 June.
Source: Bloomberg
HARANGA APPOINTS LIPPO GROUP NOMINEE TO BOARD
Haranga Resources Ltd. has appointed Marshall Cooper to the company's board as a non-executive
director.
Cooper joins the board as the representative of the Lippo Group, currently the company's largest
shareholder. Lippo currently holds 15.3 percent of Haranga Resource's share capital via its
subsidiary Gold Rain Holdings Ltd.
Cooper has been a director of Lippo Group since 1998 and has held various executive roles in their
mining, media, and telecommunications divisions. This includes chief financial officer and chief
executive officer of various business groups from the television and Internet services division, chief
executive of Globe Media, and director of Asia Now Resources Corp. He is currently the director and
chief operating officer of Lippo Energy where his primary role involves guiding the development of
the business unit and he is directly involved in acquisition activity.
Cooper has over 25 years' experience operating in Asia and Australia. Before Lippo he worked for
CRA (now Rio Tinto PLC), holding senior commercial roles in bauxite and precious metal operations
in Australia and Indonesia.
Source: Haranga Resources Ltd.

APIP APPOINTS CHIEF OPERATING OFFICER
Asia Pacific Investment Partners (APIP), a Mongolia-focused operating group primarily engaged in
property development and cement production, has today announced the appointment of its new
Chief Operating Officer of Infrastructure and Construction, Joshua Haines.
Haines will be chiefly responsible for the day-to-day operations of APIP's current real estate
developments and will also oversee Central Asian Cement‘s activities.
―Joshua will provide further strength to our rapidly growing executive team,‖ said Lee Cashell,
Chief Executive Officer. ―His extensive experience in Afghanistan should translate well into some of
the complexities that exist when operating in Mongolia.‖
Source: Asia Pacific Investment Partners
APPLE OPENS APP STORE IN MONGOLIA
Apple has extended the reach of its iTunes App store to 32 more countries, including Mongolia.
Tim Cook, Apple's chief executive officer, promised for the expansion during his keynote address at
the World Wide Developer's Conference, where he said the App Store is now available in a total of
155 countries. Other countries given access to downloadable content include Albania, Fiji,
Micronesia, Nepal, Swaziland, Tajikistan, Ukraine and Zimbabwe.
While these may not seem to be very large markets, together they bolster the App's Store's already
impressive breadth. There are currently about 400 million App Store accounts—with registered
credit cards.
Source: All Things D
RIO INVESTS MORE IN IRON-ORE OPERATIONS
Diversified miner and operator of the Oyu Tolgoi project Rio Tinto PLC announced that it would
commit USD 4.2 billion to its iron-ore operations in Australia and in Guinea.
Chief Executive Officer Tom Albanese said that the company was directing investment to projects
that would generate the most attractive returns for shareholders and were resilient under and
probable macroeconomic scenario.
―Our superior Pilbara iron-ore business has one of the highest margins in the industry, low capital
intensity of investment and a strong track record of completing projects on time and budget,
Albanese said.
The miner would spend some USD 3.7 billion on the expansion of its Pilbara iron-ore operations to
353 million tons a year and to extend the operation's life. A further USD 570 million will be sent on
a new gas-fired power station at Cape Lambert, and USD 1.7 billion on largely sustaining capital
expenditure to extend the life of the Yandicoogon mine. Albanese noted that the key component of
the project still requiring approval was further mine production capacity.
In Guinea, Rio would spend USD 510 million on further infrastructure development of the Simandou
iron-ore project. The investment brought Rio Tinto and its partners a step closer toward the phased
development and ramp up of the Simandou iron-ore resource.
Rio Tinto Iron Ore Chief Executive Officer Sam Walsh said that the company continued to see
positive prospects for medium-to long-term iron-ore demand, driven by ongoing growth in Chinese
consumption. BHP Billiton's chief executive, Marius Kloppers, last month cautioned on further iron-
ore investments, as Chairperson Jac Nasser said that the mining giant might by pulling back on some
projects.
Source: Mining Weekly
ECONOMY
RESOURCE NATIONALISM TO IRK INVESTORS AS MONGOLIA GOES TO POLLS
Resurgent nationalism in mineral-rich Mongolia, which voted for a new government this week, will
irk foreign investors, but it is unlikely to wreck sentiment, with politicians still desperate to keep
the dollars flowing in.

―We believe the [resource nationalism] is broadly bi-partisan and is to increase whichever party
wins,‖ said Ulaanbaatar-based Frontier Securities in a note to clients.
A shift to the left could end up saddling investors with higher tax bills and make it harder to win
approval for new projects. But the main players in the election remain broadly supportive of foreign
capital, which has turned the dusty former Soviet outpost of Ulaanbaatar into a bustling boomtown.
For many voters, the seventh parliamentary election is another chance to try to redress an
imbalance.
Since the end of Communism, which left the economy devastated, Ulaanbaatar's resource policies
have been notoriously laissez-faire as it sought to attract foreign investment on whatever terms
possible. The government has sought to redistribute wealth by creating social funds using mining
profits much like the way Norway has done with its oil money.
However, the mining boom has not improved conditions in large parts of the countryside or in
Ulaanbaatar's crowded migrant districts, shifting the rhetoric.
―I don't see any benefits [from mining],‖ said A. Laagansuren, a 29-year old mother of three living
in a crowded ger in one of the capital's sprawling makeshift suburbs. ―I don't see anything changing.
I think the people at the top are sharing and eating up the wealth.‖
The latest polls suggest the Democratic Party (DP) has now sneaked ahead of the center-left
Mongolian People's Party (MPP). Both parties formed a grand coalition after the 2008 election and
ushered through the Oyu Tolgoi deal in 2009. The alliance ended last January.
Meanwhile, former President and Prime Minister N. Enkhbayar campaigns on a largely left-wing
resource nationalist ticket for his Justice Coalition, although he cannot run himself due to an
impending trial for alleged graft. Enkhbayar said he was not opposed to foreign capital in industries
like manufacturing, but resources required a different approach.
Source: Reuters
GOVERNMENT GREENLIGHTS SAINSHAND COMPLEX
The government approved the master plan of the Sainshand Industrial Complex on 25 June.
It will be the responsibility of Sainshand, a company established by the government, to direct the
construction of the USD 9.3 billion industrial complex. The government plans to finance
construction in its annual state budget.
The master plan comprises 12 phases for the construction of factories for copper smelting, coking
coal processing, and cement production. Projections say the complex will produce 12 million tons of
raw and 7 million tons of processed materials a year.
Employment of the industrial complex is projected to create 2,400 new jobs and the creation of a
new town with 21,000 residents.
Source: News.mn
NEW TOWN TO SURROUND PLANNED INTERNATIONAL AIRPORT
A town will be established surrounding the now-planned international airport at Khoshigt Valley in
Tuv Aimag.
The Cabinet discussed details pertaining to the on-going projects on 25 June, including its
completion date now set for 2016.
The new airport will have the capacity to serve 1.65 million passengers a year and receive six
airplanes at one time. The town of 100,000 residents will be needed for the airport's staff.
Source: News.mn
STABILIZATION FUND IN NEED OF SCRUTINY
Finance Minister D. Khayankhyarvaa has reported that Mongolia's Stabilization Fund holds some MNT
249 billion, still far below its year-end goal of MNT 800 billion. The Fund is designed to protect the
Mongolian economy from large swings in commodity prices.
An additional MNT 340 billion will come as a result of exchange rate differences from selling gold
and copper on the international market, explained Khayankhyarvaa. According to a budget report
on the first five months of 2012, the private sector contributed MNT 25.5 billion to the fund, with

most of that money, some MNT 23.1 billion, derived from tax.
According to the Law on Budget Stabilization, 70 percent of all money going to the Stabilization
Fund should come from the minerals sector. However, the report includes no information of what
became of this money, other than that the source of income had fallen by MTN 32.9 billion.
The law mandates that if the Fund grows larger than 10 percent of the country's gross domestic
product (GDP), those additional funds could be used for investment. With government spending on
the rise there may be some cause for concern that government will tap into the Stabilization Fund
to compensate.
Source: Zuunii Medee
CABINET BOLSTERS RESERVES TO PREVENT SPIKES IN MEAT AND FUEL PRICES
The Cabinet familiarized itself with the implementation of it plans for the stabilization of food and
fuel prices last week.
According to reports from authorities of the Ministry of Mineral Resources and Energy and the Oil
Authority, the AI-80 and AI-92 type fuels will come to Mongolia soon, bringing the total reserves of
oil products enough to supply demand for two months. Authorities expect fuel prices to be stable as
a result of this action, as well as reduce prices by up to MNT 100.
Prices have already fallen by MNT 168 to MNT 159.3. To recover the losses from the public transport
sector and maintain prices, the cabinet has decided to provide subsidies of MNT 395,953.
The report claims that the rise in meat prices is a result of poor management of meat delivery. The
government plans to keep reserves of up to 15 tons of meat and establish a system for sale through
retailers.
Source: Montsame
MONGOLIAN AUDIT OFFICERS TRAINED IN JAPAN, SOUTH KOREA
A group of 12 officials from the National Audit Office, the Ministry of Finance, and the Japan
International Cooperation Agency (JICA) were trained on the structure of activities of the internal
audit offices of Japan and Korea.
During the training, held from 27 May to 9 June with the theme ―Strengthening Capability of
Internal Audit, Monitoring and Evaluation,‖ the participants learned the internal audit structures for
the governments of Japan and Korea, their legal environments and principles, methodologies, and
the difference between internal audits of the private sector and government. They were also given
reports on the implementation course of internal audits by governments, transparency of internal
audit actions, and a situation of monitoring over the realization of auditor recommendations.
The trainers were familiarized with activities and work by Japan's National Audit office, the Audit
Councils of the cities of Fujisawa and Osaka, the Audit Office of Tokyo, Ernst & Young, and the
department of accounting at Gakuin University, and then at Korea's the Ministry of Strategy of
Finance and its Council of Audit and Monitoring.
Source: Bernama
IDN CCTLD FOR MONGOLIA PASSES STRING EVALUATION
The Internet Corporation for Assigned Names and Numbers (ICANN) has successfully completed a
―string evaluation‖ on the proposed IDN ccTLD string of ―.Мон‖ and ―.МН‖ domains for Mongolia.
The International Domain Name (IDN) ccTLD Fast Track Process was approved by the ICANN Board at
its annual meeting in Seoul, South Korea on 30 October 2009. First requests were received starting
16 November 2009. The process enables countries and territories to submit requests to ICANN for
IDN ccTLDs representing their respective country or territory names in scripts other than Latin.
Source: AG-IP News
OFFICIALS AGREE TO INCREASE AIR TRAFFIC BETWEEN CHINA AND MONGOLIA
The administration of the Civil Aviation Authorities of Mongolia and the China held a meeting in
Ulaanbaatar on 18 June. At the meeting Mongolia was represented by the State Secretary of the
Ministry of Roads Transportation, Construction and Urban Development, J. Bat-Erdene, with Xia

Xinghua, Deputy Administrator of the Civil Aviation Administration of China.
With broadening social, political, and economic relations between Mongolia and China, the nations
have looked to expand and develop the air travel market for the routes between them. They have
agreed to increase the number of air carriers to fly the routes by two or three times, bringing the
number of flights in a week flying the route from Ulaanbaatar to Beijing from 14 flights to 21. The 7
flights a week to other parts of China has also been boosted to 21.
Mongolian has received permission to charter flights to a total of 10 destinations across China and to
Bangkok, Thailand and Singapore via stopovers in China at Shanghai and Tianjin.
Source: Info Mongolia
MONGOLIA GROWTH SPEEDS AHEAD WITH SHARP CURVES IN THE DISTANCE
The World Bank reported 16.7 percent economic growth year-on-year for the first quarter in its
Mongolia Quarterly Economic Update. While there is much to rejoice there, the World Bank cautions
that external factors and unwise management could spoil the situation.
Although growth is high, it is also fueling inflation, 16 percent in April, above the Bank of Mongolia's
10-percent inflation target. Increasing government spending for higher wages and cash handouts are
adding pressures while the slowing global economic outlook threatens the country with negatively
impacted export growth. ―Hold your horses,‖ advised the World Bank, to prevent further over-
heating of the economy.
The service sectors leads growth. The development of the Oyu Tolgoi is having strong spillovers in
the rest of the economy as well. Additionally, the agriculture sector is finally recovering from the
effects of the 2009-2010 dzud, growing by 13.6 percent in the first quarter. Although the poverty
headcount rate declined from 39.2 percent in 2010 to 29.8 percent in 2011, recent acceleration in
inflation is worrying since it will impact the poor disproportionally. Hikes in food prices are of
particular concern.
Government spending is outracing revenue growth, with nominal spending in April growing by 32
percent y-o-y and capital spending growing by more than 100 percent. Revenues rose only 21
percent bringing the fiscal deficit to 4.7 percent of gross domestic product in March, its highest in
two years. Inflation is also being pushed up by rising core inflation in the banking sector.
Read more…
Exports contracted by 2.8 percent y-o-y in April, the first fall in more than two years. Coal, the
largest export earner, is barely growing, while copper has performed poorly for some time now. The
tugrug has appreciated in recent months, in both nominal and in real terms, which will undermine
the competitiveness of Mongolia's non-mineral trading sectors.
Given the deteriorating global economic outlook, Mongolian policy makers must adopt a cautious
macro-economic stance. This includes marginalizing vulnerabilities in the banking sector, reigning in
government expenditures, minimizing off-budget financing activities, and keeping lending of the
Development Bank of Mongolia within the framework of the Law on Fiscal Stability.
Source: World Bank
CHINESE IMMIGRANT POPULATION APPROACHES MAXIMUM QUOTA
The number of Chinese immigrants living in Mongolia is nearing a quota established by government.
According to Mongolian law, the number of foreigners residing in Mongolia may not exceed 3
percent of the total population, while the number of foreigners from any one country shall not
exceed 1 percent. Currently Mongolia has a total population of 2,811,666 people, allowing a
maximum of 84,348 foreigners and 28,116 from any one country.
With the increased demand for professionals for the construction of roads and railroads as well as
skilled mining workers Mongolia has seen substantial growth in the number of Chinese workers. Of
the 27,496 Chinese in Mongolia, 23,591 are laborers, 1,871 are investors, 2,076 are nondescript
immigrants, and 256 are students.
Actions by the government have reportedly brought the number of aliens arriving with a tourist visa
and looking for work to nearly zero. To control the flow of migration, Mongolia has established 11
main and eight representative immigration offices operating at 26 border points at 10 bordering

provinces. Over the past six months, 1,299 foreigners from more than 30 countries have been
prohibited from entering the country, while the penalty fees have been increased to discourage
illegal immigration.
The government has administered penalties to 813 aliens and deported 300 more in the first half of
the year. It has employed a total of 103 investigations at 390 businesses that employ foreigners and
inspected the documents of 1,992 foreign residents.
This year the immigration office has reportedly not yet granted any immigration permits.
OFFICIALS LOOK TO ESTABLISH MONGOLIA-TUVA PORT
During a regular meeting of the Customs Offices of Mongolia and Siberia in Tuva, officials reported
on trade in 2010 and 2011 while discussing ways to develop relations. The Mongolian delegation
noted that trade with Russia, especially in the Siberian region, Kemerovo, Irkutsk and Buryatia,
comprised 30 percent of their nation's trade. Although trade is stable, both sides agreed increased
trade would be favorable.
Representatives from each nation negotiated terms for cooperation on border points using advanced
technology and information exchange. The Borshoo-Khandgait port at the Mongolia-Tuva border was
a point of particular concern.
―If the amount of commodities crossing through this port increases, we will plan for the restoration
of this port with the state budget of the Russian Federation,‖ said head of the Tuvan Customs
Office Vyacheslav Valkov.
In response, the Mongolian delegation stated that work was already underway to bring the Borshoo
port to international standards. This means increasing its daily capacity up to 250 vehicles.
The Borshoo port connects to the city of Ulaangom, which has a highway as well as another highway
currently under construction to connect Ulaangom, Uvs Aimag, and China.
A date for the next meeting of the customs offices will soon be announced, which will be held in
Mongolia.
Source: Info Mongolia
NEW ROAD TO REDUCE CITY TRAFFIC
A new road that is expected to cut traffic by nearly a third was commissioned last week in
Ulaanbaatar.
The half-kilometer road intersects Dunjingarav crossing and the railway. It connects Narni Zam, a
road running from Peace Bridge to Narantuul Market, with the Bayan Mongol District.
The road will reportedly reduce traffic at the railway crossing by 70 percent, and the road leading
to the city by 30 percent.
Dunjingarav LLC invested some MNT 1 billion for road construction. The road is expected to act as a
pilot project for another 21-meter, six-lane road under construction by a Korean firm.
CASE STUDY FOR MICROFINANCE
The European Bank for Reconstruction and Development (EBRD) launched a project in 40 Mongolian
villages from 2008 to 2009 to assess the impact of business startup microcredit lending.
Which loan structure is best is key because the microfinance industry is in transition, shifting from
the group loans pioneered by Grameen Bank to individual lending in a group loan. The borrowers
are liable for each other's payments, meaning that everyone goes into default if one member does
not repay. But there is scant data on the relative impact of the two models regarding business
creation, poverty reduction, and so on, the bank notes. So, in cooperation with Mongolia's XacBank,
it offered group loans to women in 15 villages and individual loans to women in another 15 villages.
Ten villages formed the control group.
The results support the growing body of evidence that microfinance does not make much of a dent
in poverty, as income remained static in both loan groups. It might just be too early to observe
significant changes, but more and more research suggests that microfinance is no poverty slayer. In

regard to business creation and household well being, the group loans were more effective.
Participants were 29 percent more likely than the control to operate a business, and provide more
food. No impact was observed for individual loan recipients. Finally, much of the lending did not go
toward small business creation. In fact, half of the money went to consumer items.
The bank concluded that group loans had more impact because borrowers in a collective are less
prone to risky investments or lending on to family or friends. On poverty reduction, the EBRD noted
that less-educated women in both groups seemed to benefit more, which is promising as education
is ―a proxy for long-term poverty.‖
Source: East of Center
CUSTODIANS SET UP CAMP
Custodians agree that Mongolia is one of the top picks for their clients, but finding a way to keep
their clients' Mongolian assets safe is less obvious.
In most markets outside their home base, custodians rely on sub-custodians to help them access the
local market infrastructure such as central securities depositories, and to aid settlement processes.
However, Mongolia is a special case. Custody does not exist there.
Although the country has a stock exchange, established in 1991, it does not have an interbank
messaging network such as Swift, which automates the payment and settlement messaging process.
Nor does it possess a ―delivery versus payment‖ mechanism to ensure securities and payments are
traded simultaneously. Counterparty risk is, therefore, a concern, and the onus could fall on the
custodian to provide an indemnification.
In February, BNP Paribas Securities Services became the first global custodian to take up the
challenge. It set up a bespoke custody offering for Harvest Global Investments, China's second-
largest asset manager. BNP Paribas was able to use the fact that foreign investors might hold
accounts directly, in their own name, at the local CSD, and that a third party might use those
accounts on their behalf.
Regulators in Mongolia are working to remove the barriers to entry for foreign investors, adapting
their regulations and asking global custodians for advice. BNP Paribas is involved in the working
group, advising on aligning the market's settlement system with international processes. JP Morgan
has also become involved.
But other say investors often become less interested when they hear about the work Mongolia
requires.
When talking to investors about new markets, he said, the custodian looks at a series of criteria,
including whether there is a concept of enforceable assets protection, a stock exchange, clearing
houses and tax structure.
―Most importantly, whether there are capable sub-custodians.‖ he said. ―If I get a ―no‖ in one of
the criteria, I have to tell investors we cannot help.
Nevertheless, custodians must consider new markets where clients may want to invest. A challenge
does not deter custodians either.
Source: MAD Investment Solutions, Financial News
FMG FUND MANAGER CONFIDENT INVESTMENT TO PICK UP AFTER ELECTIONS
Some onlookers are already dubbing the capital 'Ulaan-Qatar' in oblique reference to the Middle
Eastern nation that enjoyed a stellar rise off the back of a commodities-fueled boom in the 1990s,
but some worry resource nationalism ahead of elections will obscure that image.
―The stock market currently has shallow and sporadic trading,‖ said Arild Johansen, director of
FMG's Mongolia fund. ―Volumes are low and stocks can move dramatically. Stocks can be quite
cumbersome to purchase. What we look at as the catalyst for Mongolia is the work they are doing
with the London Stock Exchange, working to improve free float and delist companies that shouldn't
have been listed.‖
The estimated mineral wealth in Mongolia's 10 largest mines would make multi-millionaires out of
every one of its 2.8 million inhabitants, were it shared evenly. The majority of the country's mineral
wealth remains unexplored, but it is still well placed to supply China, whose insatiable appetite for

natural resources places it at the top of global commodities consumption tables.
FMG's recently launched USD 3 million fund is intended to capitalize on the country's booming
economy and its close economic links to China. FMG hopes the fund will grow to up to USD 20
million over the next few years.
However, the uncertainty surrounding the Erdenes-Tavan Tolgoi JSC initial public offering (IPO) and
the reactionary move by Parliament to put limitations over businesses operating within so-called
―strategic sectors‖ after the Aluminum Corporation of China Ltd. (Chalco) proposed the purchase of
a majority stake in coal miner SouthGobi Resource Ltd. has left some investors cold on the idea of
investing in the resource-rich nation.
However Johansen believes that this political risk will not prove serious: ―There is always tough talk
before the elections, but Mongolian politicians know that if they institute these laws, they will lose
foreign investment. I don't think they will institute laws that are so harsh that the Billitons and
Ivanhoes of the world will not step in.‖
Source: Investment Europe
THE UNEVEN BOOM
As Mongolia prepares for Parliamentary elections on 28 June, campaign activity is all abuzz. On a
sunny afternoon vans festooned with the banners and flags of the Democratic Party (DP) and
Mongolian People's Party careen through the potholed streets of Ulaanbaatar, loudspeakers blaring
out the candidates' virtues. Students march through the city wearing T-shirts bearing the images of
those vying for the 76 legislative seats.
―Right now Mongolia is rushing to give away its land and resources to foreigners, and it makes me
deeply angry,‖ said the resident of one of the capital's sprawling slums.
Endowed with some of the world's largest reserves of gold, iron ore, copper and coal, Mongolia has
become a magnet for foreign money. Yet anger is rising among the country's 2.8 million people,
close to one-third of whom sill live in poverty. In May lawmakers approved a new foreign
investment law that requires parliamentary approval for deals in which overseas investors hold
more than 49 percent of the equity and the transaction is worth more than USD 75 million.
Rising populism is making business executives anxious. They say the investment law's requirements
on parliamentary approval could delay projects.
―We have these possibly time-consuming hurdles that have to be crossed that could hurt the
prospects of deals getting done,‖ said Jim Dwyer, Executive Director of the Business Council of
Mongolia.
Mining companies are also alarmed by calls to renegotiate existing deals, including the Oyu Tolgoi
project, headed by Rio Tinto PLC. One big obstacle to a more equitable distribution of the proceeds
from Mongolia's mining boom is endemic corruption. Transparency International ranks Mongolia
120th out of 183 nations it surveys. Some 60 percent of Mongolians believe government policy is
characterized by either ―support for the rich‖ or ―lack of concern for society at large,‖ according to
a survey by the Sant Maral Foundation.
Source: Businessweek
RIO CONFIDENT IN COPPER OUTLOOK
Rio Tinto PLC, the developer of the Oyu Tolgoi copper and gold project, said the long-term outlook
for copper remains positive even though volatility in commodity prices is likely to persist in the near
term.
Demand for copper has ―plenty of growth potential,‖ Andrew Harding, chief executive of the Anglo-
Australian company's copper division, said. Mr. Harding said the Oyu Tolgoi project is now 85
percent complete and on track for first commercial production by 2013.
The first phase of the project's development will see the construction of an open-pit mining
operation and will in time be followed by underground development, expansion of the mill, and the
building of a power station.
Source: Wall Street Journal

RIO EXEC SEES MODERATION IN IRON-ORE PRICES
Rio Tinto PLC, the developer of the Oyu Tolgoi project, expects a moderation in iron-ore prices
going forward as additional supply comes on stream, and sees no going back to annual pricing, a
senior company executive said on Tuesday. Iron ore is one of Mongolia's major mineral exports and
has seen greater interest from foreign investors.
―The demand outlook is strong, but supply is responding well,‖ Alan Davies, president of
international operations for Rio Tinto said. ―Iron-ore prices are high from historic standards now,
but as supply comes on we would expect a moderation in the price in the medium term.‖
In response to recent comments by the chief executive officer of Posco and by that of competing
iron-ore miner Vale SA about a possible return to annual iron-ore pricing, Davies said he did not see
that happening. The big three iron-ore miners: Vale, Rio Tinto, and BHP Billiton Ltd. started to
price iron ore on a quarterly, monthly and spot market system after the 2008-2009 financial crisis,
when many steelmakers, especially in China, defaulted on annual contracts to take advantage of
falling spot market prices.
Source: Reuters
POLITICS
DP TAKES SLIGHT LEAD IN DIRECT ELECTORATE VOTE
The Democratic Party (DP) took the most seats from the direct electorate vote with 24 seats in
Parliament, according to results posted on News.mn, in yesterday's peaceful election. The
Mongolian People's Party (MPP) came second with 19 votes, giving neither party hopes for gathering
majority control in Parliament.
The DP came far short of the predictions to the direct electorate by the Sant Maral Foundation,
which projected the DP winning either 28 seats or 36 seats with a strong likelihood for majority
control. The MPP, however, took many more seats than expected, winning 9 more seats that Sant
Maral's most optimistic prediction for the party.
The poor showing by opposition parties seems to at the center of the upset. The Justice Coalition, a
political pact between N. Enkhbayar's Mongolian People's Revolutionary Party (MPRP) and the
Mongolian National Democratic Party (MNDP), took just two seats compared to Sant Maral's
prediction of 8 seats in its most optimistic outcome for that party. The Civil Will-Green Party did
not win any seats from the direct electoral vote.
L. Sumati, director of Sant Maral, told BCM that he attributed the poor outcome for the opposition
parties to the record low turnout of 65 percent, 10 percent less than 2008 and 17 percent less than
in 2004 and 2008. He said the DP and Justice Coalition suffered most from the poor turnout of
voters.
Results for the proportional electorate, where voters were asked to choose a party rather than an
individual, had not yet been released at the time of this report. Voters yesterday were asked to
vote for an individual who would represent their district and a party. The electorate structure
allows for 48 seats by direct vote and 28 by proportional vote, which would take candidates from
party lists. The election structure is based on the German electorate system.
The likelihood of either the MPP or DP taking majority control with 39 seats is slim based on Sant
Maral's projections. DP spokesperson Ch.Saikhanbileg told journalists that his party expected it
would end up with 36 seats in total.
The government has still yet to release any information on the outcome of the proportional party
vote. According to the government, official results will be released in 15 days.
Source: BCM
OBSERVERS PREPARE WHILE GEC TAKES PRECAUTIONS FOR ELECTION
Thirty observers from nine foreign organizations were present to monitor the parliamentary election
on Thursday, reported the General Election Committee (GEC).
N. Luvsanjav, Head of the GEC, said the election commission granted permission on Tuesday to the
heads of diplomatic missions and permanent representatives of international organizations in
Mongolia. These observers will be responsible for running the election with help from automatic
devices and assist to solve problems in case of disputes related to those devices.
The GEC has registered 354 candidates, 84 of which are female. There are 26 independent

candidates running for election for the electoral district, five of whom are women. The youngest
candidate is 26 years old, while the eldest is 71 years old, according to Speaker of Parliament, D.
Demberel. Luvsanjav said a total of 1.8 million people registered for the official list of voters for
1,904 parliamentary election sub-committees nationwide.
The GEC has retested the devices before bringing them to representatives of the political parties
and coalitions as well as observing NGOs for inspection.
Source: UB Post
FEMALE CANDIDATES VIE FOR PLACES IN PARLIAMENT
If all goes as envisioned on 28 June, Parliament will no longer be a male bastion.
Supported by recent revisions to Mongolia's election law, a record number of women are on the
ballot in parliamentary elections on 28 June. They are seeking seats in what has traditionally been a
male-dominated body. Of the 544 candidates running for the 76-seat Parliament, 174 are women—
well above a newly established 20 percent quota. But where their names appear on the lengthy
ballot may be a determining factor in whether this becomes a breakthrough occasion.
Currently Mongolia's Parliament ranks near the bottom of the list of countries surveyed for the
proportion of women in office. Activists say government policies and patriarchal attitudes have
discouraged women from entering politics. Data collected by Monfernet even shows a gradual
decline in the number of women elected, with 6.6 in 2004 falling to 3.9 in 2008.
―It's a paradox that women... hold 70 percent of the jobs in the health and education sectors, and
yet more than 90 percent of the people in positions of power are men,‖ said O. Jargal, a veteran
journalist and environmental activist who runs Nomad Green, a citizens' environment reporting
initiative.
Jargal is a Green Party candidate contesting a single seat electoral district in Sukhbaatar Aimag.
She says she never could have dreamed of being nominated by her party were it not for the female
quota.
Read more…
This election cycle is not the first time Mongolia has experimented with quotas to encourage female
candidacy. In 2005 political parties were told at least 30 percent of candidates must be women.
The law was suddenly revoked, however, just before the 2008 election, and never tested.
The proportional system allots 28 seats, meaning it is unlikely a party can win more than a dozen
seats. The Democratic Party (DP) and Mongolian People's Party (MPP) have nine and 11 women
respectively on their 28 member lists. But the DP's first woman is placed at number seven; the MPP's
at number 10.
The 48 remaining seats will be determined by contests between individuals. In these lists of
individual candidates, selected by district but often associated with a party, women stand out, said
N. Khashkhuu of Globe International, a Mongolian democracy watchdog, adding that, ―women are
seen as less corrupt.‖
Source: Eurasianet
PARTIES BATTLE IT OUT TO SLICE UP ECONOMIC PIE
While the two main parties in this year's election have similar election platforms—promising to
diversify the economy and improve people's lives—the outcome will help determine how Mongolia
divides the wealth from its vast mineral resources with its population and also with the foreign
companies that have been taken stakes in the mining projects.
The election pits the Mongolian People's Party (MPP), which has been in power for most of the past
60 years, against the Democratic Party (DP), its coalition partner until January. They also face a
challenge from the Mongolian People's Revolutionary Party, established in 2010 when former
president N. Enkhbayar split from the MPP.
According to the latest figures from the Sant Maral Foundation, a pollster, 28.6 percent of
respondents back the DP, 18.8 percent support the MPP, while 15 percent want the MPRP to win.
Roughly 23 percent were undecided. The MPRP has seen increased backing partly because it
advocates national ownership of the country's mines, which plays well with Mongolians who feel

they are not getting their far share of the wealth generated from the mining boom. It has also
gained from people who believe the corruption charges leveled by the government at Enkhbayar are
politically motivated.
Analysts say the new government—regardless of who takes power—will probably adopt policies that
give the Mongolian people and state a greater stake in future projects than at present. Since the
last parliamentary election in 2008, public dissatisfaction towards mining has risen because of
growing social inequality and environmental concerns.
Meanwhile, observers are quick to point out that the democratic process in Mongolia, which has
held regular, peaceful polls since it severed ties with the Soviet Union in 1990 is remarkably stable.
―One should not underestimate the sophistication of the electorate,‖ said Alphonse La Porta,
former U.S. Ambassador to Ulaanbaatar. ―Mongolians are very savvy.‖
Source: Financial Times
VOTERS SEEK A BIGGER SHARE OF WORLD-BEATING ECONOMY
Mongolian went to the polls yesterday to elect leaders who must address soaring inflation and rising
demands for a fairer distribution of more than USD 1.3 trillion in mineral wealth in the world's
fastest growing economy.
N. Altankhuyag, head of the Democratic Party (DP), is predicted to oust Prime Minister Sukhbaatar
Batbold's ruling Mongolian People's Party (MPP), according to a 14 June survey by the Sant Maral
Foundation, and may have to rule in coalition with some of the 11 parties in contention.
The new government must tackle how to use a jump in revenue from gold, copper, iron, and coal
projects to benefit its 3.1 million people, a third of whom live below the poverty line. The election
has already been marked by allegations of corruption after former President N. Enkhbayar was
arrested in April on charges of enriching himself while in office and is barred from standing as a
candidate.
―This is the most important election ever,‖ said Erdene-Ochir, an 84-year-old pensioner who voted
in Ulaanbaatar. ―This is a critical time for change and there needs to be a new government and a
new policy to improve all of our lives.‖
Public discontent centers around the distribution of wealth from the mineral boom, which boosted
the economy 17 percent last year. Another issue is resource nationalism, which Frontier Securities
said in a report is ―broadly bipartisan.‖
―They [the MPP and DP] are both made up of guys who've been in business primarily, some form of
mining probably,‖ said Jim Dwyer, head of the Business Council of Mongolia and former global
mergers and acquisition (M&A) chief at UBS AG. ―They basically are for foreign investment and
economic growth.‖
Source: Bloomberg Businessweek
THROWING STONES
N. Enkhbayar recently held a political rally just days before a crucial parliamentary election and
was greeted like a rock star.
Enkhbayar himself is barred from the election on 28 June. Yet he and his legal woes look central to
Mongolia's political and economic future. The dramatic arrest of the former president sparked fears
of open warfare among the political elite and concerns among foreign investors about stability in
the nation. The memory of the deadly violence that followed the previous parliamentary election,
in 2008, hangs over this poll.
Enkhbayar has said that he is a good Buddhist, a clean politician interested only in the welfare of
the people, and the victim of a smear campaign. But outside his own circle—that is, among
diplomats, local and foreign businessmen, other politicians and ordinary folk—the consensus is his
long political career has been tainted all along.
The wider issue for Mongolia is that all politicians, from all parties, are seen as no better. Allowing
corruption to fester, said President Ts. Elbegdorj, would only continue to corrode Mongolia's image
and the business environment more broadly. Yet attacking corruption risks drawing even more
attention to the problem, and calling into question the nation's political stability.

Elbegdorj has had to deny charges that the case against Enkhbayar is more to do with political
rivalry than with corruption. Whatever the motivation for the prosecution, Elbegdorj and his DP
seem poised to benefit from the kerfuffle. Polling suggests that Enkhbayar's Mongolian People's
Revolutionary Party (MPRP) is likely to take between seven and ten seats in the 76-seat Parliament.
Most support comes at the expense of the MPP, possibly allowing a change of hands in government
to the DP.
If it does take charge, the DP will have to grapple with issues such as pressure to restructure the
terms of the Oyu Tolgoi copper and gold mine investment agreement. Resource nationalism has
been a pet cause of Enkhbayar and others, but Elbegdorj and his DP colleagues insist that walking
away from previous agreements would be seen as another black mark against Mongolia's
international reputation.
Source: The Economist
RISING INEQUALITY DOMINATES MONGOLIA'S POLLS
Mongolians will vote on Thursday to elect a new Parliament tasked with distributing the spoils of a
mining boom that has brought rapid growth but also rising inequality to the resource-rich nation.
Mongolia's economy has exploded in recent years, as a relatively stable political environment has
drawn in foreign investors keen to exploit its vast untapped reserves of coal, copper, and gold.
Foreign investment quadrupled last year to nearly USD 5 billion, according to government data, but
little of that has trickled down to the poorest of Mongolia's 2.8 million people. The ruling Mongolian
People's Party (MPP) and the main opposition Democratic Party (DP) both say they want to ensure a
fairer distribution of wealth in the vast and remote nation, although neither has given any detailed
indication of how.
Before the last parliamentary election in 2008, voters were offered cash payments of up to MNT 1.5
million. The practice has been banned his year, but what politicians do with the proceeds of foreign
investment has become a major election issue.
The vast wealth pouring into Mongolia has also led to accusations of large-scale political graft—
including against former president N. Enkhbayar, who was charged with corruption earlier this year.
The MPP and the DP have spent much of the last decade in power together as part of a coalition.
Some see both parties as serving their own interests at the expense of an adversarial political
system. A range of new measures have been introduced in this year's election to boost
transparency, including an electronic voting system.
―Economically, it [Mongolia] is incredibly unequal,‖ said Kirk Olson, an environmentalist who has
worked in Mongolia for 12 years. ―You have guys renting the airport at night so they can drive their
sports car up and down the runway... but at the same time you have six-year-old kids, all sectors of
life, but all living on one street.‖
Source: Pakistan Daily Times, AFP
CONSTITUTIONAL COURT DENIES ENKHBAYAR‟S APPEAL
The Constitutional Court refused former president N. Enkhbayar's appeal for candidacy in this year's
parliamentary elections.
The court discussed the case of Enkhbayar, who leads the Mongolian People's Revolutionary Party
(MPRP), on 26 June. Enkhbayar made his appeal after the General Election Committee (GEC) denied
his application to run as a candidate for the parliamentary election held on Thursday.
Source: News.mn
ENKHBAYAR BARRED FROM LEAVING ULAANBAATAR TO CAMPAIGN WHILE ON BAIL
The Sukhbaatar District Court banned former president N. Enkhbayar from leaving Ulaanbaatar to
visit the provinces outside the city to campaign for his Justice Coalition. The coalition is a political
pact between Enkhbayar's own Mongolian People's Revolutionary Party (MPRP) and the Mongolian
National Democratic Party (MNDP).
Enkhbayar met with residents of Selenge, Arkhangai, Uvurkhangai, Selenge, Orkhon and Bulgan
Aimags as well as the city of Darkhan to introduce the MPRP's political platform and address past

events. Enkhbayar was warmly received by locals, evidence of the rapid growth in popularity of the
Justice Coalition.
In a recent poll by the Sant Maral Foundation, Enkhbayar was identified as the nation's most popular
politician.
Source: Zuunii Medee
ENKHBAYAR'S TRIAL SET FOR AFTER NADAAM
N. Enkhbayar's court hearing has been scheduled for 18 July, said Yo. Sagsai, Deputy of the
Metropolitan Prosecutor's Office.
The corruption case hearing for the former president and head of the Mongolian People's
Revolutionary Party (MPRP) had been postponed three times already. The first time (24 May) was
due to health conditions, the second (12 June) was because of an objection made by his lawyer, the
third (19 June) was for the absence of his lawyer, B. Oyunbileg, and the fourth was due to a change
in legal counsel.
Although Enkhbayar, whose trial date will be held after the Naadam festival, had his candidacy
rejected by the General Election Committee, he has campaigned for the Justice Coalition, a pact
between his party and the Mongolian National Democratic Party, by visiting Selenge, Darkhan-Uul,
Bulgan, Orkhon, Arkhangai, and Uvurkhangai Aimags despite a court order that prohibits him from
leaving Ulaanbaatar while on bail.
Source: Info Mongolia, News.mn
MONGOLIA JUGGLES ITS NEIGHBORS' INTERESTS
Coal may have lured foreigners to this stretch of the Gobi, but that is just part of the buried
treasure to be found now that this nation of livestock herders has started digging in earnest.
Landlocked between China and Russia, Mongolia's three million people face a geopolitical quandary.
Fearing China may gain undue political influence, the government has been careful to choose who
will get to develop Tavan Tolgoi's western tsankhi. The two main bidders are Shenhua Energy Co.
and Peabody Energy Corp., along with a Russian-Mongolian consortium and companies from Japan
and South Korea to fill out the mix.
―We're a small country sandwiched between two elephants,‖ said Puntsag Tsagaan, a presidential
adviser on mining. ―We can't go to war and fight, so we have to secure our economic growth
through diplomacy.‖
That kind of approach is a tough sell for Mongolia's rowdy nationalists. But without foreign help, the
mines will remain untapped. Mongolian officials say the deal on Oyu Tolgoi—which took six years of
negotiations with just one company—was simple compared with handling the hornet's nest of
competing agendas over Tavan Tolgoi.
Mongolians know they are vulnerable to Beijing's near monopoly over the country's exports,
accepting 30 percent less on average than the value on the open market. To offset reliance on
China, Mongolia has sought greater cooperation with the United States using its ―third neighbor‖
policy. The United States has provided hundreds of millions of dollars in aid to Mongolia and
thousands of visas to Mongolian students. But the United States, looking for a big return, insists
Peabody receive the lead role in developing the western block.
―Tavan Tolgoi is the only project in Mongolia in which the U.S. has a dog in the hunt,‖ said an
American executive based in Mongolia.
One reason Ulaanbaatar may be procrastinating is because any decision will undoubtedly leave
some feeling shortchanged. When it was revealed last year that Peabody and China were destined
to be the primary winners, Russia, Japan, and South Korea were outraged. As the complaints
mounted, the Mongolian government shut down negotiations until after the election.
Source: New York Times
MONGOLIA BRACES FOR CHANGE
With elections to be held this week, political candidates are scrambling to garner votes. Results
from a recent poll by the Sant Maral Foundation have the Democratic Party (DP) ahead in the polls.
The Mongolian People's Party (MPP), Mongolia's oldest political party, was known as the Mongolian

People's Revolutionary Party (MPRP) until 2010, when it reverted to the name by which it had been
known since 1924, three years after it was formed in 1921. But after an internal split, the MPRP
name was adopted by a breakaway faction, now led by former president N. Enkhbayar. The MPRP
currently portrays itself as a protest party for voters fed up with the establishment.
Locked in a fierce battle for votes with the opposition DP, the MPP trails by 14 points in the latest
polls. According to a survey conducted by the Sant Maral Foundation, 42 percent of voters support
the DP, while just 28 favor the MPP. These figures are in stark contrast to Sant Maral's April poll,
which showed both parties, the two biggest, running neck and neck.
―People see the Democrats as hip and eager to change the system, while the MPP is viewed as older
guys that are out of touch with the values and interests of ordinary voters,‖ said Dale Choi, chief
investment strategists at Ulaanbaatar-based Frontier Securities. ―The Democrats talk about
cleaning up government from inside out, while MPP wants to stay on the same track they've been on
for years.‖
While the DP and MPP duke it out on the campaign trail, the MPRP has been rising in the polls.
Under former president Enkhbayar's leadership, the MPRP and its coalition partner, the Mongolian
National Democratic Party (MNDP), won 24 percent of the votes cast in the latest Sant Maral poll,
significantly higher than the 12 percent turnout in April.
Enkhbayar himself is barred from running for office due to a ruling by the General Election
Committee, which declared him unfit to run because he did not meet a requirement that
candidates ―display proper education, experience and commitment to the state.‖ In April
Enkhbayar was arrested and charged with five counts of corruption that investigators say occurred
during his terms as president (June 2005 to June 2009) and as prime minister (July 2000 to August
2004). Rather than damage Enkhbayar's reputation, the incident seems to have galvanized a
segment of the population and boosted his popularity. Most of his support has been drained from
the MPP, a party he once led.
Read more…
The rise of a third political force is indicative of festering voter dissatisfaction about government
and politicians, often perceived as corrupt and self-serving. When Sant Maral asked voters if
lawmakers remain the true representatives of the people, 89 percent said ―no.‖ And when asked if
the wealth gap is too wide and could result in civil unrest, a similar percentage of voters said ―yes.‖
For Thursday's election, few people expect a repeat of the violence from the 2008 election, but
there is a sense of urgency about who should lead the country into a potentially bright future. The
party is voted into power will have huge expectations to fulfill, as voters have been promised their
fair slice of the economic pie.
Source: Michael Kohn
GAY MONGOLIANS SEE FLICKER OF PROGRESS AMID FEAR AND OSTRACISM
Mongolia is a tough place to be gay. Homosexuality was considered taboo from the 1920s until 1990,
when the country was under Soviet rule. Before 2002 it was technically illegal. But over the past
few years, a small group of human rights activists in Ulaanbaatar have braved ostracism,
intimidation and violence to forge a gay community.
In 2009 Mongolia's first gay rights organization—the Gay Lesbian, Bisexual and Transgender (LBGT)
Centre was established. Its members have engineered a high profile media campaign on television
and pushed for anti-discrimination legislation in Parliament.
―Basically, the situation is improving there,‖ said Robyn Garner, a co-founder of the LGBT center,
who now lives in the Philippines. ―But it's still a dangerous place to be LGBT.‖
While Mongolia is benefiting from its mineral wealth, the influx of foreign capital has also stirred a
rise in ultra-nationalist neo-Nazi groups who believe in using violence to keep foreign influence at
bay. Many gay Mongolians live in fear of these groups. In 2009 an ultra-nationalist gang beat and
raped three transgender women on the outskirts of the city. LGBT center staff members have
experienced death threats and attempted abductions.
Although Ulaanbaatar's LGBT community is growing quickly, activists say the country's legacy of
Soviet intolerance has been hard to shake.

Source: The Guardian
U.S. ATTORNEY WANTS DINOSAUR RETURNED
The United States is seeking to return a Tyrannosaurus baatar to Mongolia after officials there said
the dinosaur bones were smuggled in.
The skeleton, which spans 24 feet in length and is eight feet tall, had been shipped to the United
States from the United Kingdom via Florida and then to Texas before arriving in New York in 2010. It
was auctioned by Texas-based Heritage Auctions Inc. in New York in May for more than USD 1
million.
The auction proceeded even though the president of Mongolia obtained a restraining order in a
Texas court before it took place. Under Mongolian law, dinosaur fossils are considered property of
the Mongolian government and ―one-of-a-kind rare items‖ that are prohibited from being moved
abroad.
U.S. Attorney Preet Bharara alleges the customs documents for the dinosaur misstated the bones'
country of origin as Great Britain instead of Mongolia. The government's paleontologists concluded
the skeleton must have come from Mongolia because the dinosaur was native to that region and its
bones have only been discovered there.
They Tyrannosaurus baatar, which lived about 70 million years ago, was first discovered by
paleontologists in 1946, Bahara's office said. Since 1924, Mongolia enacted laws making any
dinosaurs discovered there to be government property.
The complaint also alleges the bones were priced too low in the customs documents, with the value
listed at USD 15,000 instead of USD 950,000 to USD 1.5 million listed in the Natural History Auction
catalog. The bones sold for USD 1,052,500.
The auction catalog describes the dinosaur as ―an incredible complete skeleton, painstakingly
excavated and prepared.‖ By contrast, the customs documents described the imports as ―two large
rough fossil reptile heads, six boxes of broken fossil bones, three rough fossil reptiles, one fossil
lizard, three rough fossil reptiles and one fossil reptile skull.
The final sale at the auction is contingent on the outcome of the case, Bharara's office said.
Source: Bloomberg
FOSSIL DEALER SPEAKS OUT
The Florida fossil dealer who prepared and attempted to sell at auction the skeleton of the
tyrannosaurus allegedly taken from Mongolia illegally questions the veracity of the claim and said
the dispute over its ownership has brought financial ruin on his family.
―Imagine watching your house burn down with everything you have in it and knowing you have no
insurance,‖ says Eric Prokopi, a commercial fossil dealer based in Gainesville, Florida in a lengthy
statement issued to reporters on 22 June. Prokopi, who has not responded to requests for
comment, said his statement is intended to clear up ―misconceptions‖ about the dinosaur fossils.
―I'm just a guy in Gainesville, Florida trying to support my family, not some international bone
smuggler like I have been portrayed by some in the media,‖ he wrote.
Prokopi questions the assertions by numerous paleontologists that supported the Mongolian claim
that the fossils have only been found in one rock formation, the Nemegt, in Mongolia's portion of
the Gobi Desert (Mongolian law makes vertebrate fossils found within its borders state property):
―It's certainly possible a new locality with complete specimens was discovered in another country.
Just because it is unknown to professional paleontologists now doesn't mean it is not impossible.‖
Prokopi alleged he purchased the bones without being certain of where they were collected. A
Facebook post, dated 3 June, suggests Prokopi has knowingly sold fossils from Mongolia. The post
for a charity auction to support a Florida Montessori school describes a donation by the Prokpis as
an ―80 million year-old Tyrannosaurus rib section found in Omnogov, Mongolia.‖
Read more…
Prokopi denies making false claims on customs forms, and specifically addresses the charge he
misrepresented the skeleton's value. According to the federal complaint, the customs forms state
the fossils have a value of USD 15,000, far below the USD 950,000 to USD 1.5 million estimated

value listed in Heritage Auctions' catalog.
―When I acquired the Tyrannosaurus baatar and it was imported to the United States, the value was
declared much lower than the auction value because, quite simply, it was loose, mostly broken
bones and rocks with embedded bones,‖ he wrote.
Source: Live Science
ANNOUNCEMENTS
DISCOVER MONGOLIA-2012 MOVES TO 30-31 AUGUST
The organizing committee of the Discover Mongolian International Forum has announced that the
conference date has changed to 30 to 31 August 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.
___________________________________________
MINExpo INTERNATIONAL 2012, LAS VEGAS, 24-26 SEPTEMBER
The Business Council of Mongolia (BCM) with the support of the U.S. Embassy‘s Commercial Section
in Ulaanbaatar is now registering a Mongolian business delegation to participate in ―MinExpo
International 2012‖ which will be organized at the Las Vegas Convention Center on September 24-
26, 2012.
MinExpo International 2012 is the world's largest and most comprehensive exposition dedicated to
mining equipment, products and services. More than 1,400 exhibitors in eleven exhibit halls will
display the latest technology, equipment, components, parts and services for exploration,
extraction, safety, environmental remediation and preparation and processing of metallic ores,
coal, industrial minerals and more!
Registration deadline is 5 pm, 15 July. Please contact BCM at 70114442, tugi@bcmongolia.org for
registration and additional information about the event.
___________________________________________
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;
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.
BCM WORKING GROUPS
The BCM Educational Working Group met on Tuesday, June 26 with 8 members attending. Saha
Meyanathan, DAS, and Robin Charpentier, American University of Mongolia (AUM), co-chairs,
moderated the session. Guests attended from the Ministry of Education, Culture and Science
(MECS), MNCCI, JICA, and Mongolian University of Science and Technology (MUST).
Agenda of the meeting:
1. Higher Education Sector Reform Project.
Itgel Lonjid, Social Sector Officer of ADB Mongolia Resident Mission
Naranzogt Chuluun, Project Coordinator of Loan2766: Higher Education Reform Project
2. GIZ project development on TVET system.
Jurgen Hartwing (PH.D) Coordinator for Sustainable Economic and Urban Development.
3. The Forum on Higher Education and possible BCM role.
Baterdene, AUM
4. Next meeting: Mr.Chinzorig, Head of the International Affairs Division of MECS, new member of
the WG agreed to review the specific plans of the Ministry.
ECONOMIC INDICATORS

INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
May 31, 2012 *15.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 16.6% y-o-y, Ulaanbaatar city, May 31, 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 – June 27, 2012
Currency Name Currency Rate
U.S. dollar USD 1,341.16
Euro EUR 1,676.25
Japanese yen JPY 16.84
British pound GBP 2,095.43
Hong Kong dollar HKD 172.85
Chinese yuan CNY 210.72
South Korean won KRW ` 1.16
Russian ruble RUB 40.76
Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.

29.06.2012, NEWSWIRE, Issue 228

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29.06.2012, NEWSWIRE, Issue 228