This document provides a summary of business and economic news from Mongolia in its NewsWire issue 420 dated March 25, 2016. It covers various topics including MMC loan non-payment triggering bond default, a new meat processing factory opening in Bayankhongor, TESO opening an office in China to export Mongolian foods, two airlines offering charter flights to western Mongolia, Khan Bank launching 5% state-backed mortgages, and aviation authorities looking into direct flights from Mongolia to the USA. It also lists upcoming events from the Business Council of Mongolia.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 420 – March 25, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each article is
kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full
article.
NEWS HIGHLIGHTS:
Business:
 MMC loan non-payment triggers cross-default on bonds;
 New meat processing factory opens in Bayankhongor;
 TESO opens new page in Mongolia-China trade;
 Hunnu Air, Aero Mongolia charter flights to western Mongolia;
 Khan Bank launches 5% state-backed mortgages;
 UB plans partnership with Belarus for bus factory;
 Hunnu Coal completes road for transport to China;
 Aviation authorities look into direct flights to USA;
 MercyCorps helps herders survive 'dzud' weather crisis;
 Save the Children promises MNT85 mn in aid for Sukhbaatar's herders;
 Legal suit delayed 6-month filings, says Wolf Petroleum;
 MMC denies arrest allegations;
 Finance Ministry cancels auditor's license;
 Aspire Mining Ltd appoints non-executive director;
 Entrée Gold announces appointment of president, CEO;
 Mongolian Business Database conducts trade mission to Sydney;
 Leonardo DiCaprio to stand with Chinggis Mongol horde;
 Rio Tinto's new CEO expected to grab bigger slice of OT copper;
 Peabody Energy warns of possible bankruptcy filing.
Economy:
 Mongol Bank: currency auctions, swaps, 1-week bills;
 Mongolia’s business activity declines further in February;
 Extreme weather kills 350,000 animals;
 Rubella claims lives of 10 babies;
 Mongolian Burgastai border point proposed for greater meat exports;
 Protectionist policy sees fewer imports;
 Russia, China and Mongolia to revive world's longest tourist route;
 NGOs take on monitoring responsibility for auditors, accountants;
 Families suffer as moms and dads travel abroad;
 GIZ to help develop occupational safety standards;
 Elderly, newly-weds apply for UB’s rent-controlled apartments;
 Mongolian Immigration Office opens at Dunjingarav center;
 UB to open city service centers at Misheel Expo, Dragon Center;
 Wild sheep population in Ikh Nart on the rise;

2.  Mongolia's livestock industry hit by harsh winter;
 Mongolia: Land of lost opportunity;
 Mongolia's huge potential to export renewable electricity across northeast Asia.
Politics:
 Parliament receives bill on joining nuclear safety convention;
 Saikhanbileg recruits Baabar as advisor;
 Uyanga, Tsog exit Justice Coalition;
 Supreme Court rejects leadership appointments that have split KhUN party;
 Mongolian condemns ‘mongoloid’ to U.N. audience;
 Enkhbayar ignores calls for questioning from anti-corruption authorities;
 While under investigation, Battulga sees assistants arrested;
 When collecting fossils does harm.
BCM Updates:
 Announcements;
 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News
 BCM in the University Classroom Series;
 Cooperation & Member discounts;
 Websites Update - Presentations, Mongolia Reports, Interviews;
 Social Networks;
 Member Vacancies.
Economic Indicators:
 Inflation;
 Central Bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Invest Mongolia Agency
Mongolian Business Database

3. BCM MEETING NOTICE
BCM’s monthly meeting for members will be on Monday, March 28 at 5PM at the BLUE SKY HOTEL,
3rd floor, “Diamond” conference room. The meeting will be in English only.
The meeting will feature the following presentations:
- Call to Order/Business Council of Mongolia: B. Byambasaikhan, Chairman, BCM
- BCM Report: Jim Dwyer, Executive Director, BCM
- Steve Rose, General Manager, Cummins Mongolia Investment – “Cummins – supporting Mongolian
customers”
- Barrie Evans, Director, Churchill’s - "The importance of FOOD SAFETY – “their life in your hands”"
- Jon Lyons, Country Representative Mongolia, GGGI & Thomas Papazov, Business Development
Manager, Engie Mongolia – “Energy Efficiency – Business opportunities for Energy Services”
New Members:
1. The Morning Star Land LLC - a Singaporean JV property developer company established in 2012.
2. Prosum LLC - a trading company operating in Food & Beverages and Promotional product
markets. Since 2014, they have grown steadily and today they represent more than 15 European
producers in the region.
A networking reception will be held for all attendees immediately following the business portion of
the meeting in the “Topaz” room on the 3rd floor, Blue Sky Hotel. Delicious samosas served at the
reception are provided by Namaste Indian Restaurant.
If you would like to sponsor BCM’s networking reception at monthly meetings to publicize your
activities, please contact Tuguldur at tugi@bcmongolia.org.
BUSINESS
MMC LOAN NONPAYMENT TRIGGERS CROSS-DEFAULT ON BONDS
Mongolian Mining Corp. didn’t make principal and interest payments on a USD200 million loan
facility and wasn’t able to get a temporary waiver from banks, triggering a cross-default on its
bonds. The miner failed to make the payments on the loan facility taken from BNP Paribas SA and
Industrial & Commercial Bank of China Ltd. in March 2014, and didn’t get a waiver from the
lenders, according to a stock exchange filing. The situation constitutes a cross-default event in the
terms of other indebtedness including its USD600 million of 8.875 percent notes, it said.
“The development is not surprising given the distressed state of the company,” said Trung Nguyen,
a credit analyst in Singapore at Lucror Analytics Pte. “It has been burning cash rather fast as coal
prices kept declining. We expect bondholders to take a big haircut when the company restructures
its debt.”
Source: Bloomberg
NEW MEAT PROCESSING FACTORY OPENS IN BAYANKHONGOR
Makh Market held an opening ceremony for a new meat-processing facility in Bayankhognor Aimag
that will add another 600 head of small cattle to the daily meat supply. Parliament Speaker
Zandaakhuu Enkhbold attended the festivities for the MNT2.3 billion factory.
Bayankhongor is one of five provinces shipping meat to China via the Burgastai border point to
China. Makh Market eventually hopes to expand its production to sausages, frozen meat storage and
meals made from bones.
Source: UB Post
TESO OPENS NEW PAGE IN MONGOLIA-CHINA TRADE
Mongolian food producer TESO Corp. opened its representative office in China on March 14 as it

4. looks to tap into the market at China's Inner Mongolia Autonomous Region. TESO is targeting
Khukhkhot, Jining and Xilingol for the trade of Mongolia's organic foods at major supermarkets in
China. “It is special that our office in China is opening a new page in trade between Mongolia and
China, as it launches the flow of Mongolia’s value-added final products to China’s market rather
than just being a supplier of raw materials,” said O. Tsogtgerel, president of TESO.
TESO began exporting its 100 wildberry drinks, VIP mineral water, Lapsha noodles and Golden Milk
powder to Kazakhstan, Kyrgyzstan and Uzbekistan in 2015.
Source: Montsame
HUNNU AIR, AERO MONGOLIA CHARTER FLIGHTS TO WESTERN MONGOLIA
Aero Mongolia LLC has leased a new aircraft to charter regular fights to western Mongolia under the
MIAT Mongolian Airlines flag. Private airlines Aero Mongolia and Hunnu Air LLC have brokered deals
with state-owned MIAT to run regular flights between Ulaanbaatar and Khovd, Ulaangom and Altai
Aimags twice a week as part of a government initiative to increase air traffic to the west to support
tourism in the west. Aero has leased the aircraft from Ireland's CIT Aerospace Corp. at a cost of
USD200,000 a month for five years with a possible extension of an additional two years.
Source: Unuudur
KHAN BANK LAUNCHES 5% STATE-BACKED MORTGAGES
Khan Bank LLC has begun lending state-backed 5 percent annual interest mortgages. Eligible
borrowers for the mortgages are those who will move into certain housing complexes planned for
the so-called ger districts where many live in informal housing such as traditional gers. Mortgages
are also available for homes outside Ulaanbaatar, including satellite districts such as Baganuur and
Bagakhangai.
The rollout on 15 March was accompanied by the resumed lending of 8 percent mortgages, which
was suspended after the Constitutional Court ruled the program was in violation of Mongolian law.
The Law on Mortgages was changed in February to make the program legal again. Future
homeowners looking at projects in Ulaanbaatar's more-developed districts are still eligible for the 8
percent mortgages.
Source: Khan Bank LLC
UB PLANS PARTNERSHIP WITH BELARUS FOR BUS FACTORY
Belarus' deputy prime minister has suggested cooperation with Ulaanbaatar to open a bus-
assembling factory. Belarus' deputy prime minister, V.I. Semashko, suggested partnering with the
city government to improve the country's public transportation during his visit to Ulaanbaatar on 18
March. “We have had talks with A.S. Ogorodnikov, the Industry Minister of Belarus, about
commissioning a bus-assembling factory, and we want to forward this business,” said Ulaanbaatar
Mayor Erdene Bat-Uul.
Source: Montsame
HUNNU COAL COMPLETES ROAD FOR TRANSPORT TO CHINA
Hunnu Coal Ltd. has completed construction of a new road connecting the Tsant-Uul coal mine with
a main route for transporting coal to China. The 36.8 kilometer road joins the mine located in
Bayan-Ovoo, Umnugovi province with the 71 kilometer road between the Tavan Tolgoi coal mine
and the Gashuun Sukhait border point to China.
Contracted for paving the road was local construction company RES LLC.
Source: Zuunii Medee
AVIATION AUTHORITIES LOOK INTO DIRECT FLIGHTS TO USA
Mongolia's aviation authorities are launching a study into the economics of regular flights by MIAT
Mongolian Airlines between Mongolia and the United States, according to a 22 March post on the
Civil Aviation Authority's (CAA's) website. MIAT is also looking to launch flights to Pusan, South
Korea; Astana, Kazakhstan; and Bangkok, Thailand.

5. Source: Montsame
MERCYCORPS HELPS HERDERS SURVIVE 'DZUD' WEATHER CRISIS
With heavy snows and temperatures in some parts of the country reaching as low as minus 67
Fahrenheit (minus 55 Celsius), the global organization MercyCorps is supporting Mongolians who are
enduring extreme winter conditions—known locally as "dzud." Through a grant from United States
Agency for International Development's Office of Foreign Disaster Assistance, team members are
providing coordination, logistics and transportation support to ensure that rural communities can
access the supplies necessary to survive the winter and protect livestock herds. The effort will
benefit nearly 14,000 people in rural areas.
“The livestock sector is the backbone of the Mongolian economy, accounting for roughly 30 percent
of all jobs in the country," says Jennifer Bielman, MercyCorps' country director in Mongolia.
"Because of dzud, thousands of people are facing severe damage to their livestock and household
assets as well as potentially crippling long-term economic setbacks.”
Source: MercyCorps
SAVE THE CHILDREN PROMISES MNT85 MN IN AID FOR SUKHBAATAR'S HERDERS
Save the Children Mongolia's office in Ulaanbaatar has promised MNT85 million in financial aid for
herders in Sukhbaatar Aimag suffering from harsh winter conditions. Although the government has
not declared this winter a dzud—a regular phenomenon of extremely cold winter conditions and
sometimes heavy snowfall that results in livestock deaths—many of the country's most vulnerable
herders struggle while unable to migrate or receive supplies. The NGO will provide approximately
800 herder households in Bayandelger, Ongon, Tuvshinshiree, Sukhbaatar, Asgat, Dariganga, and
Naran Soums with 125 tons of fodder and cash to 400 herder households with less than 100
livestock. The NGO is also allocating approximately MNT30 million to cover the cost of fuel required
for vaccination distribution and for emergency vehicle repairs in the province.
Save the Children, which conducts humanitarian projects across 120 countries, is supporting
Mongolian herders facing the dzud-like conditions after a call for help from Deputy Prime Minister
Ts. Oyunbaatar.
Source: UB Post
LEGAL SUIT DELAYED 6-MONTH FILINGS, SAYS WOLF PETROLEUM
A legal suit for more than USD100,000 kept Wolf Petroleum Ltd. from filing its half-year accounts on
time, resulting in its suspension on the Australian Securities Exchange, according to a 17 March
statement from the petroleum explorer. “The half year accounts could not be lodged due to the
company, as second defendant, being served with an originating process by Ngaanyatjarra Council
Aboriginal Corporation (NCAC) close to the due date for the winding up on the grounds of
insolvency,” said company secretary Jonathan Hart in a letter included in the statement. Hart
added that the exact amount of the suit was USD104,880.91.
Wolf Petroleum was seeking legal advisement on the matter, said Hart, which would delay its filing
of the accounts. “This is a one-off instance where the reporting obligations could not be met in a
timely manner due to the company being served with an originating process by NCAC right before
the due date of this reporting obligation,” said Hart.
Source: Wolf Petroleum Ltd.
MMC DENIES ARREST ALLEGATIONS
Mongolian Mining Corp. (MMC) has denied reports in the media that a member of its management
team has been arrested for allegedly defrauding the government, calling the statement slanderous.
An 18 March statement from the company denied allegations in the media that Deputy Chief
Executive Officer Lkhagvatsend Oyunbat had been arrested for stealing funds received from a
government contract to build a railway from MMC's Ukhaa Khudag mine and the Gashuun Sukhait
Chinese border point. “There has been no claim against the Company or any of its directors,” reads
the statement, although it later states Oyunbat had been questioned by investigators.

6. The project was originally awarded to MMC subsidiaries Energy Resources LLC and Energy Resources
Rail LLC. “Mr. Oyunbat is continuing to perform his duties at office and reports to the Company as
usual and has been fully collaborating with the Investigators.”
Source: Mongolian Mining Corp.
FINANCE MINISTRY CANCELS AUDITOR'S LICENSE
The auditor that helped send one of prime minister Norov Altankhuyag's advisors to jail has lost its
license following complaints about dubious evidence it provided. L. Gansukh was sentenced to four
and half years in prison after being found guilty of embezzling funds from a fund meant to provide
high-quality coal as part of the government's efforts to reduce coal emissions. The Finance Ministry
has revoked the license of the company that reported MNT3.6 billion in funds missing from it audit,
Oyu Erdem Audit LLC, after Gansukh's lawyers submitted complaints that the company could not
prove its conclusions and violated the country's auditing law.
An appeal hearing by the Supreme Court's is currently set for 23 March.
Source: Udriin Sonin
ASPIRE MINING LTD APPOINTS NON-EXECUTIVE DIRECTOR
Mongolian metallurgical coal explorer and infrastructure company, Aspire Mining Ltd., appointed
Gan-Ochir Zunduisuren as a non-executive director on 21 March. Zunduisuren has over 15 years’
experience in the resource sector of Mongolia and Canada. “With his extensive experience and
knowledge of the Mongolian resource industry and landscape, we are delighted to welcome back
Gan-Ochir to the board,” said David Paull, managing director.
Source: Proactive Investors
ENTRÉE GOLD ANNOUNCES APPOINTMENT OF PRESIDENT, CEO
Entrée Gold Inc. on 22 March announced the appointment of Stephen Scott as president and chief
executive officer, effective 1 April. Scott has been acting as the interim chief executive officer
since 16 November 2015. Concurrently with the appointment, Scott will be appointed to Entrée's
board of directors. “We are very pleased that Stephen has assumed this leadership role on a
permanent basis,” said Entrée's Chairman Lord Howard. Stephen brings with him over twenty-five
years of global experience in all mining industry sectors.
Prior to joining Entrée, Scott was the president of Minenet Advisors, a capital markets and
management advisory consultancy providing a broad range of advice and services to clients relating
to planning and execution of capital markets transactions, strategic planning, generation and
acquisition of projects, and business restructuring. Between 2000 and 2014, he held various global
executive positions with Rio Tinto Group.
Source: Entrée Gold Inc.
MONGOLIAN BUSINESS DATABASE CONDUCTS TRADE MISSION TO SYDNEY
Mongolian Business Database (MDB) has completed a mission it led to Sydney, Australia from 18 to
21 March. Supporting the visit by 17 Mongolian business professionals to sites such as the Australian
Securities Exchange was Mongolia's Honorary Consul in Sydney, Nigel Finch, who is also a director at
strategist firm Saki Partners. The group also visited the headquarters of law firm Minter Ellison,
which has an office in Ulaanbaatar.
MBD is planning to host future trade missions to destinations including a trip to Ottawa, Canada,
with support from the North America-Mongolia Business Council (NAMBC), for its 23rd Investors
Forum in May 2016. Also on the agenda are visits to Liverpool and London in June for the
International Festival for Business and to Stockholm, Sweden at the end of 2016 for a Doing Business
with Mongolia seminar.
Source: Mongolian Business Database
LEONARDO DI CAPRIO TO STAND WITH CHINGGIS MONGOL HORDE
Genco Tours Bureau JSC will immortalize the face of academy award winning actor Leonardo

7. DiCaprio as a Mongol horde soldier nearby the giant Chinggis Khaan statue at the Tsonjin Boldog
Complex. Sculptors from the group Tumen Khishigten announced they would carve the statue ahead
of a scheduled 10-day tour around Khuvsgul Lake by the actor. In total, they plan to carve 10,000
cavalry around the monument.
Source: Montsame
RIO TINTO'S NEW CEO EXPECTED TO GRAB BIGGER SLICE OF OT COPPER
Rio Tinto Group's incoming chief executive Jean-Sebastien Jacques has been tipped to boost the
miner's stake in the vast Oyu Tolgoi copper mine in Mongolia when he replaces incumbent Sam
Walsh in July. Jacques, the current chief of Rio's copper and coal division, has hinted he will
prioritize improving the company's balance sheet and cost base as the miner navigates a crunch in
the price of many of the key commodities it produces. But one London-based analyst says Rio will
almost certainly look to boost its 33 percent stake in the Oyu Tolgoi copper deposit (via its majority
shareholding of Oyu Tolgoi's 66 percent-owner Turquoise Hills Resources), considered the company's
most exciting growth project.
"Rio will be very interested in Tier 1 copper assets, but it's a crowded field," Investec mining analyst
Hunter Hillcoat said. "The only specific target would be consolidation of Oyu Tolgoi and I see it
buying out the balance of Turquoise Hill."
Source: Sydney Morning Herald
PEABODY ENERGY WARNS OF POSSIBLE BANKRUPTCY FILING
The world’s largest coal company, Peabody Energy Corp., warned on Wednesday that it might have
to file for bankruptcy protection as it struggles to keep up with its debt payments. In a securities
filing, Peabody said waning demand for coal around the world and stiffer regulations had raised
“substantial doubt” about whether the company could continue to operate outside bankruptcy.
Analysts have been warning for months that Peabody, which failed to win a strategic partnership
with Mongolia for the Tavan Tolgoi coal mine after four years of negotiations, could follow the
United States’ other large coal companies, like Arch Coal, Alpha Natural Resources and the Patriot
Coal Corporation, into bankruptcy. Peabody has been trying for weeks to negotiate a deal with its
creditors to ease some of its debt payments. But those talks have failed to produce a deal, leaving
Peabody with few options outside of a bankruptcy filing, analysts say.
Source: New York Times
SPONSORS
Oxford Business Group The New Media Group
Mongolian Economy Magazine

8. ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS
The Bank of Mongolia on 24 March sold CNY12 million and USD 7.2 million to commercial banks in
currency auctions for a closing exchange rates of MNT314.55 and USD2,050.05. Also that day, it
accepted tugrug swaps with commercial banks for an equivalent of USD9.9 million.
The Bank of Mongolia on 23 March issued one-week bills worth MNT139 billion at a weighted interest
rate of 12 percent.
Source: Bank of Mongolia
MONGOLIA’S BUSINESS ACTIVITY DECLINES FURTHER IN FEBRUARY
The World Economics Headline Sales Managers’ Index (SMI) for Mongolia posted 31.8 in February for
the Business Confidence Index, up from 31.4 in January, signaling a weaker but nevertheless a
strong decline in the level of business optimism. An index above 50 indicates growth, while an index
below 50 indicates contraction. The Market Growth Index, which reflects growth of the general
marketplace in panelists’ own industry sectors, continued to contract at a fast rate during February
albeit at a slightly slower rate compared to the last period. The Product Sales Index, which
represents sales made by panelists’ own companies, registered the steepest decline since April
2015.
“The latest SMI data for Mongolia pointed to a slightly faster deterioration in economic activity
across the country. The headline index registered the strongest contraction in the thirty-five
months of survey history.”
Source: World Economics
EXTREME WEATHER KILLS 350,000 ANIMALS
Hundreds of thousands of animals have died in Mongolia's extreme weather this year, but charities
say the crisis has gone almost unnoticed by the world. More than 350,000 goats, sheep and cows
have been killed by a natural phenomenon called "dzud"—a hot summer drought followed by a
severe winter. The combination means that animals can't graze enough during the warmer months
to build up the reserves they need to survive winter temperatures that regularly plunge to -
50Celsius. For a country where a third of the population relies on livestock to survive, many families
are quickly going from affluence to poverty due to the slow-moving disaster.
The International Federation of Red Cross and Red Crescent Societies (IFRC) launched an appeal for
more than USD800,000 (£552,000) two weeks ago hoping to help 25,000 vulnerable Mongolian
herders, but less than half of that target has been raised. IFRC's East Asia communications delegate
Hler Gudjonsson said the disaster was foreseen last November, but it was difficult to "raise funds
for something that hasn't happened yet".
Source: AFP
RUBELLA CLAIMS LIVES OF 10 BABIES
Ten babies in Mongolia have passed away from complications with rubella, also known as German
measles. The National Center for Infectious Diseases (NCID) has reported that about 60 percent of
the 571 rubella patients are children. The disease is most commonly found in patients between 19
and 30 years old, reported the NCID.
Source: News.mn
MONGOLIAN BURGASTAI BORDER POINT PROPOSED FOR GREATER MEAT EXPORTS
Mongolia expects to boost its trade of meat with China with a second delivery of meat through the
Burgastai border point in April. Mongolia launched its first and only export through the Burgastai
border point to China with a delivery of 16 tons in February, according to the Ministry of
Agriculture, because of snow blocking passage through the roads. The weather is expected to ease
in April, which would see the resumption of trade.
That border point is also only operating for a single day on even-numbered months. The Ministry of

9. Agriculture has proposed that it operate year-round for greater trade. The Cabinet Secretariat on
21 March ordered government funds be used to build apartments for workers at the border point
and to cover annual expenses of its operations. Last year, Mongolia delivered 4,714 tons of meat to
China compared with 420 tons so far this year.
Source: News.mn
PROTECTIONIST POLICY SEES FEWER IMPORTS
Mongolia has seen some success in its attempts to cut down on the volume of imports for certain
goods to make room for locally produced alternatives. Mongolia saw a 46 percent fall in imported
cement last year compared with the year before said Finance Ministry official E. Altanzul at an 18
March meeting of the Economic Council, following a 20 percent hike of construction materials
brought into the country. Honey imports are also down, by 16 percent, he said.
Proposed tax reforms, said Altanzul, would maintain the current tax rate on 12 areas of imported
goods.
Source: Montsame
RUSSIA, CHINA AND MONGOLIA TO REVIVE WORLD'S LONGEST TOURIST ROUTE
“The Great Tea Road” has been called the longest overland trade route in the world. Starting from
the Great Wall of China, it once wove its way to Europe via Mongolia and Russia. Now the three
countries Russia, China and Mongolia have joined hands in a tourism union, aiming to revive the
route to make it a great bucket list must-do for global travelers. Speaking at the economic forum of
tourism infrastructure, Deputy Head of the Federal Tourism Agency, Alexei Konyushkov, called the
project a positive example of cross-border and inter-regional tourism.
“This is a project of the widest geographical coverage, the longest of the existing land routes,
allowing the crossing of Eurasia and visiting countries such as Russia, China and Mongolia,”
Konyushkov said.
Source: Sputnick News
NGOS TAKE ON MONITORING RESPONSIBILITY FOR AUDITORS, ACCOUNTANTS
NGOs in Mongolia will be authorized to take on some of the services traditionally done by the
government in regulating accounting and auditing. Finance Minister B. Bolor at a 22 March Cabinet
Secretariat meeting received orders to a hand-over by government to groups that work to certify
professional accountants. Groups will also serve as the watch dog for the industry, monitoring
professional practices at firms.
Source: Montsame
FAMILIES SUFFER AS MOMS AND DADS TRAVEL ABROAD
A new study [Source does not include the authors -ed] has shown that families are suffering from
the growing number of Mongolians travelling abroad for work and study. Mongolia has 125,000
citizens living abroad, with the highest population of 25,000 in South Korea. That is having some
impact on the development of children they leave behind, who are usually put under the care of
grandparents or other relatives.
Source: News.mn
GIZ TO HELP DEVELOP OCCUPATIONAL SAFETY STANDARDS
The German Agency for International Development (GIZ) is lending its expertise in occupational
safety for Mongolia's regulations. GIZ on 17 March inked an agreement to work with the Ministry of
Labor for developing a plan to regulate occupational safety and hygiene this year. The program,
which is one of the aims from the Extractive Industries Transparency Initiative (EITI), will include
hosting trainings and raising standards.
Source: Montsame

10. ELDERLY, NEWLY-WEDS APPLY FOR UB'S RENT-CONTROLLED APARTMENTS
Government launched the registration for subsidized apartments in Ulaanbaatar this week, giving
elderly residents the first opportunity to sign up. Outside the State Apartment Corp. on 21 and 22
March, 471 elderly people were queued up to submit their applications for renting one of the low-
cost homes. But only 183 of them met the qualifications to rent, with the remaining 237 applicants
denied and invited to try again at a later date. Married couples of 35 years and older lined up for
registration on 23 March.
Both elderly and married applicants will have the opportunity for a second chance to submit
applications on 31 March and 1 April.
Source: News.mn
MONGOLIAN IMMIGRATION OFFICE OPENS AT DUNJINGARAV CENTER
An immigration office has opened at the Dunjingarav trade center (call the office at 62 260026).
Source: Mongolia.GoGo.mn
UB TO OPEN CITY SERVICE CENTERS AT MISHEEL EXPO, DRAGON CENTER
Two new public services centers will open at the Misheel Expo shopping mall and Dragon Center bus
depot.
Source: Mongolia.GoGo.mn
WILD SHEEP POPULATION IN IKH NART ON THE RISE
Mongolia's endangered wild sheep population at one of Mongolia's nature reserves has come back
from nearly being wiped out in the area to more than 1,000. The Argali sheep has more than tripled
its numbers at the reserve from 300 in the late 1990s. The sheep, which were put under special
protection in 1996, are a popular target for trophy hunting.
Source: Montsame
MONGOLIA'S LIVESTOCK INDUSTRY HIT BY HARSH WINTER
With a combination of extreme summer drought and severe winter chill taking its toll on Mongolia’s
livestock industry, the country is looking to financial incentives and targeted investment to bolster
regional exports. Mongolia’s livestock industry is falling victim to a climatic phenomenon known
locally as a dzud, which usually occurs when an especially dry summer is followed by an extreme
winter. Agriculture is a key contributor to Mongolia’s economic output, accounting for around 16
percent of GDP – only slightly less than the mining industry.
The country has aspirations to become a major meat exporter, eyeing consumer markets in China,
South Korea and Russia. However, while the Mongolian Meat Association estimates the country’s
export potential could rise to MNT600 million (USD293.2m) per year, with over 100,000 tons
exported to Russia alone, exports have averaged around 10 percent of the country’s potential in
recent years.
Source: Oxford Business Group
MONGOLIA: LAND OF LOST OPPORTUNITY
Ankhbayar Garamdagva travels with his wife once a month to a wholesale market in a town in China
to stock up on jeans, which he sells for USD10 each in Ulaanbaatar. But customers are scarce these
days. The boom times in Ulaanbaatar have come and gone with the rise and fall in commodities
prices. “My sheep, goats, cows, horses…I sold everything, I can’t go back,” he says. “I moved here
for a good life but, this year, we see no future.”
Few developing countries have seen their hopes dashed more by the slump in global commodity
prices than Mongolia. In packed district hospitals, for example, families sleep in the hallways and
lobbies. On a recent afternoon, Purevsuren Sergelen paced a corridor in Bayanzurkh District
Hospital, nursing her six-month-old son, Tumenbayar, who was admitted three days earlier suffering
from flu. She said she wished new medical facilities had been built when the economy was strong.
Source: Wall Street Journal

11. MONGOLIA'S HUGE POTENTIAL TO EXPORT RENEWABLE ELECTRICITY ACROSS NORTHEAST ASIA
Mongolia’s mostly untapped renewable resources could be used to kick-start a major cross-border
power corridor between Russia, Mongolia, China, South Korea and Japan, according to a new study.
Excellent solar and wind resources in the Gobi Desert mean that the country has a vast renewable
energy potential of 2.6 terawatt, claimed the report “Renewables Readiness Assessment: Mongolia”
from the International Renewable Energy Agency (IRENA) and Mongolia’s Ministry of Energy. The
government has set a target of 20 percent renewable by 2023 and 30 percent by 2030. Having had
to rely on Russian energy imports to cover short-term contingency needs and on China to power its
southern towns, Mongolia aims to use its huge renewable resources to become a net exporter of
energy in the future.
“Exporting renewable power from Mongolia to China is a long-term plan,” said Yong Chen, IRENA
regional officer for Asia and the Pacific.
Source: PV-Tech.org
POLITICS
PARLIAMENT RECEIVES BILL ON JOINING NUCLEAR SAFETY CONVENTION
Mongolia is updating its standards to join a 1994 convention for nuclear safety. Cabinet Minister S.
Bayartsogt on 21 March presented the bill to Parliament, saying amendments for regulating small
quantities of nuclear materials had been added on 10 March. The bill covers topics such as the
management of fuel supply and waste.
Source: Montsame
SAIKHANBILEG RECRUITS BAABAR AS ADVISOR
One of Mongolia's most renowned thinkers has joined Prime Minister Chimed Saikhanbileg's
advisorial staff. Bat-Erdene Batbayar, better known to readers as Baabar, will replace B.
Delgermaa, who is moving on to act as Mongolia's ambassador to Russia. He was once the head of
the Mongolian Social Democratic Party, and is a renowned author in Mongolia on topics ranging from
society and politics to history.
One of Baabar's chief focuses will be the Asia-Europe (ASEM) meeting scheduled for July in
Ulaanbaatar.
Source: Udriin Sonin
UYANGA, TSOG EXIT JUSTICE COALITION
Two members of the so-called Justice Union within Chimed Saikhanbileg's coalition government are
making their exit following disagreements with their peers. L. Tsog and G. Uyanga of the Mongolian
People's Revolutionary Party, which partnered with the Mongolian National Democratic Party to run
for election in 2012 as the Justice Coalition, said they will exit at a press conference on 22 March.
Uyanga's future with the MPRP itself, however, was uncertain.
“We will stay in the party for now,” she said.
Both members worked with fellow MPRP parliamentarian O. Baasankhuu to collect signatures to
open the floor to a no-confidence vote for the prime minister. The vote was controversial among
some members and may have been the reason for some discord in the group. Uyanga said she was
also unhappy with the coalition's weak efforts to lead an initiative titled “Five Revolutions to Save
Mongolia.” “I have been criticizing the Justice Coalition group recently,” said Uyanga about the
initiative.
Source: News.mn
SUPREME COURT REJECTS LEADERSHIP APPOINTMENTS THAT HAVE SPLIT KHUN PARTY
A Supreme Court decision has ruled against handing over leadership of the National Labor Party
(KhUN) to either S. Ganbaatar or G. Naidlaa, invalidating both appointments each was arguing in
favor of. Ganbaatar and Naidlaa were in a tug-o-war over the party's leadership that has split the

12. party into two factions. Former KhUN Chairman S. Borgil was awarded the chief position in the
ruling that the appointment of two officials simultaneously was in violation of the Law on Political
Parties, therefore invalidating both appointments.
Source: News.mn
MONGOLIAN CONDEMNS 'MONGOLOID' TO U.N. AUDIENCE
Mongolia hosted an event for U.N. delegates decrying the use the term ‘mongoloid’ to describe
patients suffering from Down Syndrome. The event was the first of an initiative to discourage the
use of the word and demonstrate it as offensive to Mongols around the world. “It is totally unfair to
call the people with Down Syndrome as mongoloid. This is not a scientific term,” said medical
doctor Nata Menabde.
Source: Montsame
ENKHBAYAR IGNORES CALLS FOR QUESTIONING FROM ANTI-CORRUPTION AUTHORITIES
Anti-corruption authorities have reported a lack of cooperation from Nambar Enkhbayar, the head
of the Mongolian People's Revolutionary Party, on their investigation of him for corruption.
Enkhbayar similarly refused questioning before being arrested in 2012 for corruption, of which he
was eventually found guilty. Investigators from the Independent Authority Against Corruption
attempted to corner the official while he was in a meeting with Deputy Prime Minister Ts.
Oyunbaatar after Enkhbayar failed to turn up for questioning after delivery of 5 separate notices
that he was needed for testimony.
“Four people burst into my room without showing any identification cards,” said Oyunbaatar. “The
burst is violating related laws of Mongolia. I will sue.”
Source: Udriin Sonin
WHILE UNDER INVESTIGATION, BATTULGA SEES ASSISTANTS ARRESTED
An assistant to former Agriculture and Industry Minister Khaltmaa Battulga has been arrested for
alleged crimes surrounding the elected official. Battulga and his associate former Minister of Road
and Transportation A. Gansukh are under investigation for an embezzlement case from a railway
construction project led by Samsung C&T. Sh. Erdentuya was arrested on 18 March [Source does not
include charges], while former ministry official G. Tuvshinjargal was arrested for fraud. A source
familiar with the investigation said one of the assistants had received USD6 million in a private
account that was withdrawn two days after the investigators believe Battulga deposited it.
Battulga, who also heads Genco Group, has accused newspapers of libeling him. Last November
Undesnii Shuudan and Udriin Sonin reported that Battulga and four others received USD42 million as
a corruption payoff. Battulga denies the report, saying the unaccounted funds were savings from an
estimated MNT98 billion in construction costs.
Source: Udriin Sonin
WHEN COLLECTING FOSSILS DOES HARM
Museums have a history of spending millions of dollars to outbid one another and secure spectacular
skeletons, but now they’re more often coming up against affluent individuals whose deep pockets
they can’t match. Although private enthusiasts who act responsibly are an integral part of the fossil
market, in some cases scientific breakthroughs go unstudied and unseen because of unscrupulous
actions on the dinosaur black market. Actor Nicolas Cage famously relinquished a rare tyrannosaur
skull—which Leonardo DiCaprio also bid for—when the U.S. attorney in Manhattan filed a civil
forfeiture complaint to return it to Mongolia.
Mongolia is not alone. Demand (and high prices) has led to a black market, where people in fossil-
rich nations raid excavation sites—a problem in U.S. public lands as well. Worse, sellers know that
certain fossils, like teeth, fetch a higher price on their own, so they will destroy fossils to extract
valuable parts.
Source: Barrons

13. BCM UPDATES:
ANNOUNCEMENTS
1ST ANNUAL BCM SUMMIT, 21 APRIL, BLUE SKY HOTEL
The Business Council of Mongolia (BCM) will host its 1st Annual BCM Summit on 21 April at Blue Sky
Hotel and Tower in Ulaanbaatar. The forum will provide a venue for a wide spectrum of
informative, meaningful and innovative topics important to Mongolia's business community. The
focus will be on business strategies to cope with survival in an economic downturn, mining and
industrial supply, capital markets, innovative business trends, the elections and issues and
recommendations targeted to political parties, and more.
BCM launched a request for members’ suggestions for common issues they would like to see
discussed at the event in June. Suggestions will be collected until 11 April. To submit, log on to
BCMongolia.org and click here, or send your response directly by filling out this form. Your feedback
should include answers to (1) What are the top issues and challenges of your business and sector in
relation to the regulatory environment that need to be addressed by the next government? (please
list a maximum of three issues) and (2) What are your recommendations on those issues?
Registration is MNT100,000 per head for BCM members, compared with the regular fee of
MNT120,000. For more information, email Saruul at saruul@bcmongolia.org.
_________________________________________
MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE
Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the
Government Palace on 30-31 March.
This year's two-day event will be held under the theme “Lessons learned, Facing challenges and
Solutions pending,” where participants will seek to define the country’s current national and global
context, as well as outline alternatives for the promotion of future economic and social prosperity
in Mongolia.
BCM members will have a 30 percent discount on registration. Register here, and send an email to
info@meforum.mn mentioning your BCM membership to receive your discount. For more
information email the same address or call 11 321051.
_________________________________________
MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX
The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year
from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will
feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors
representing the industry's major companies. Guest speakers from the government, universities, and
companies will lead seminars of the government policy for mineral resources and new laws focused

14. on mining and infrastructure in Mongolia.
For more information, contact Munkh-Erdene via email at munkh@minex.mn or call at 344488.
_________________________________________
7TH ANNUAL NATIONAL FORUM FOR RENEWABLE ENERGY, 6 APRIL, CORPORATE HOTEL AND
CONVENTION CENTER
The National Renewable Energy Forum, Mongolia's premier conference on the renewable energy
sector since 2008, will open on 6 April at the Hotel and Convention Center in Ulaanbaatar. At the
forum, speakers will review the initiatives and activities that address key issues for the renewable
energy sector.
Registration is MNT35,000, and there is no limit to the number of registrations. For more
information, email Myagmardorj at e.myagmardorj@gmail.com.
_________________________________________
2016 COAL & METALS MONGOLIA, 6-7 MAY, UB
Join to learn about Mongolia's major infrastructure and coal assets at Coal & Metal Mongolia
conferences—now an annual event. Hear from Mongolian government officials and expand your
business contacts while learning about infrastructure in Mongolia and how to the capital investment
environment can become more competitive. Over 500 guests are expected and 80 companies
exhibiting their services.
For more information, call 9911-6135, 7011-5590. BCM members can receive a 10 percent discount
at registration by emailing saruul@bcmongolia.org for a special discount code.
‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES
Guest Speaker: Narantuya Dangaasuren
Presentation topic: "Editorial policy-Print Media"
Where & When: University of the Humanities, 15 March 2016
Narantuya.D, Vice Director of News Agency, was BCM’s third speaker at the University of the
Humanities. Her presentation titled "Editorial policy-Print Media" was attended by 90 students from
the Journalism and ICT Faculty of the University of the Humanities.
Ms. Narantuya’s presentation began with current assessment of journalism in general and focused
on the print media and how it is evolving in a digital era. Her 20 some years of journalistic
background coupled with experience in managing Mongolia’s top-rated news website
(www.news.mn) gave Ms. Narantuya’s presentation more unique and a true voice of Mongolian
media. Students did not shy away from raising controversial questions such as the issue of biased
editorial contents and the rise of unethical journalism in Mongolia. Ms. Narantuya did acknowledge
the existence of such unfortunate situation; however she gave hope to soon-to-be journalists by
informing them of the active and budding enthusiasm of the newly formed Media Council of
Mongolia. The presentation is available here.
_________________________________________
Guest Speakers: Anthony Willoughby and Josephine Stoker, Nomadic School of Business
Presentation topic: "Organizational Leadership"
Where & When: University of the Humanities, 25 February 2016
Anthony Willoughby and Josephine Stoker, Nomadic School of Business co-delivered a presentation
titled "Organizational Leadership" at the University of the Humanities (UH) on 25 February. The
lecture, which consisted of an individual exercise of mapping one's life journey, was attended by
138 students.
Both Anthony and Josie began the lecture by sharing their own life journeys, which fascinated many
students in the audience. Students were asked to share their life journey map with neighbors, as
said by many students was the highlight of the lecture.

15. For more information about the lecture, please contact Khulangoo P, Working Group Coordinator at
khulangoo@bcmongolia.org
_________________________________________
Guest Speaker: Gerelt-Od Ts, Ministry of Environment, Green Development and Tourism (MoEGDT)
Presentation topic: "Climate Change of Mongolia & COP21"
Where & When: National University of Mongolia, 23 February 2016
Mr. Gerelt-Od Ts, MoEGDT, delivered a presentation titled "Climate Change of Mongolia & COP21".
Over 50 students attended the lecture.
Mr. Gerelt-Od was one of the three representatives from Mongolia to enter into the negotiations at
the 2015 United Nations Climate Change Conference, COP 21 held in Paris, France, from 30
November to 12 December 2015. Mr. Gerelt-Od's comprehensive presentation covered Mongolia's
historic engagement in the global movement against climate change to recent highlight of
Mongolia's pledge of 50'000 US dollar to the Green Climate Fund. The presentation is available here.
_________________________________________
Guest Speaker: Amartuvshin Sh, CEO-AFAcademy
Presentation topic: "Personal development: New season"
Where & When: The Institute of Finance and Economics, 18 February 2016
Amartuvshin Sh, CEO of AFAcademy, delivered a presentation titled "Personal Development: New
season" at the Institute of Finance and Economics (IFE) on 18 February. Over 60 senior students
attended the lecture.
Mr. Amartuvshin, an experienced motivational speaker and family counselor, shared a success
formula, which he has been using for his lectures to CEOs of key businesses in Mongolia. Students
expressed their gratitude to Mr. Amartuvshin and expressed their interest in various tools that can
be used for personal development.
For more information about the lectures, please contact Khulangoo, Working Group Coordinator at
khulangoo@bcmongolia.org
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 21 March in partnership with our member,
Corporate Governance Development Center (CGDC), on the topic "Methods for analyzing current
organizational strategy and identifying the strategic vision". The session was led by Enkhbold
Chuluunbaatar, Ph.D., business strategy manager at CGDC and a senior lecturer in the Department
of Business Administration at the Institute of Finance and Economics. His research interests include
entrepreneurship, culture and creativity, and strategy management. The focus of the session was
given on how to define organizational vision based on identifying organizational resources and
assessing factors that create value in the organization. A total of 15 people representing 12 member
companies attended the session.
BCM ADVOCACY NOTES
Latest draft of Labor Law bill - Government working group
An open discussion was held between the Ministry of Labor and the private sector on the draft Labor
Law on 16 February. The December draft is reflective of many of the recommendations proposed by
the BCM's Legislative Working Group. Labor Minister G. Bayarsaikhan reported that the draft will be
submitted in April for the autumn Parliamentary session. New Working Group members assigned by
the Labor Minister to draft the bill were introduced and promised to review further comments from
the private sector.
For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.
Click here to read the latest draft of the bill.

16. BCM WORKING GROUP NEWS
Risk Working Group
BCM’s Risk Working Group’s meeting was held on Wednesday, 9 March at Suite 101, 12th floor
Express Tower, with 9 members in attendance, representing Mandal General Insurance, MIG
Insurance, XacBank, Wagner Asia, Bagatumurch LLC, State-owned Agricultural Reinsurance JSC and
National Emergency Management Agency.
Agenda of the meeting:
16:00-16:10 Introduction and Opening remarks by Risk WG Co-Chairs
16:10-16:50 Status Report on dzud condition in the countryside, Tuya Ch., Specialist, National
Emergency Management Authority of Mongolia/NEMA/
16:50-17:20 "Index-based livestock insurance scheme and Introduction of state-owned Agricultural
Reinsurance JSC", Enkhtaivan G., CEO of Agricultural Reinsurance JSC
Captain Tuya Ch., NEMA, gave the members a comprehensive overview of the dzud and dzud-like
situation in 18 aimags and 98 soums of Mongolia. As of 9 March 2016, the total tally of perished
livestock is 360,000. While this number is incomparable to the 2010’s record high loss of 6,310,800
livestock, Captain Tuya emphasized that at any dzud situation, it is the herders that are afflicted
the most as they are faced with enduring long cold days without basic medical assistance and the
ever-increasing need to tend after their cattle, their main source of income. Captain Tuya’s
presentation was complimented with a weather assessment presentation, which can be found here.
Specialist Oyunbat N., Agricultural Reinsurance JSC, presented the index-based livestock insurance
scheme and how it evolved into laying the very foundation of the state-owned Agricultural
Reinsurance JSC. Members were interested in knowing the reason behind the decline in the number
of policyholders, if the Agricultural Reinsurance JSC is exploring the bloodline insurance and the
JCS’s global reinsurers. Members in attendance were distributed “Mongolia: Dzud Emergency
Response Preparedness” snapshot by OCHA (Office for the Coordination of Humanitarian Affairs)
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Tax Working Group
BCM’s Tax Working Group’s 2016 kick-off meeting was held on Wednesday, 2 March at Suite 101,
12th floor Express Tower, with 16 members in attendance, representing Oyu Tolgoi, PwC, Deloitte
Onch Audit, Sumitomo Corporation Mongolia office, International SOS, WCS, MahoneyLiotta, Lehman
Lee & Xu and PATC.
Agenda of the meeting: 16:00 - 16:10 Opening remarks (Chair, Tsendmaa Choijamts, PwC) 16:10 -
17:00 Introducing new VAT law (Altankhorol O, Senior state tax inspector, Revenue department of
the General Department of Customs and Taxation) 17:00-17:30 Q&A session and discussion on TWG
plans for 2016 (Members, state tax inspector)
Ms. Altankhorol, General Department of Customs and Taxation of Mongolia, reviewed the newly
adopted Value-Added Tax (VAT) law of Mongolia, which took effect on 1 January 2016. The
presentation covered key policy changes, changes in the other related regulations and frequently
asked questions from businesses. Members in attendance were interested in the procedural changes
in the new VAT law, such as the registration and de-registration as a VAT payer, VAT-exempt goods
and services and VAT zero-rated goods and services.
Ms. Tsendmaa Ch, Tax Executive Director of PwC Mongolia, shared with the members Tax Working
Group’s draft plan for 2016. As Chair of Tax Working Group, MS Tsendmaa, informed the members
of the intent of engaging representatives from the government entities to the WG meetings in order
to learn more about legal and procedural changes and to exchange expert views with
representatives from government bodies.
Next meeting is scheduled for May. For more information about this meeting, please contact
Khulangoo Purevjav, Working Group Coordinator of BCM at khulangoo@bcmongolia.org.

17. _________________________________________
Business Ethics Working Group
Business Ethics Working Group meeting was held on 1 March at Express Tower from 16:00 to 17:30
with 12 members in attendance representing Atlas Copco, Transparency International, Mandal
General Insurance, US Embassy, Wagner Asia, Deloitte Onch Audit, Asia Foundation, Valliant Art and
Interiors, World Vision and the Institute of Finance and Economics.
Agenda of the meeting: - Introduction of members and guests (Anders Berglund, Atlas Copco) -
Recap from the last meeting (Christine Hudetz, TI Mongolia) - Insurance sector transparency (Zaya
Bolorbold, Mandal Insurance) - Discussion on topics and plan for 2016 (Christine Hudetz, TI
Mongolia).
The meeting begun with recap of the last meeting: development of the draft plan for 2016 and
collective agreement on the need to reach-out for more local companies as members of the
Working Group. Given the delicacy of the issues the WG intends to cover at its meetings and the
subsequent low interest from BCM members to sign-up for this WG, nonetheless members have
agreed to continue with its meetings and aim to draw more attention from local companies.
Ms. Zaya, Mandal Insurance, presented an overview of the insurance industry and Mandal fight
against kickbacks and the adverse effects of kick-back culture within the industry. Attendees were
highly impressed with Mandal’s meticulous top-down approach against kick-backs, from its
philosophy to its hiring procedure. During the discussion time on plan for 2016, Wagner Asia has
volunteered for a presentation in November and Asia Foundation offered to share its study findings
on corruption in Mongolia.
Co-Chair reminded the members of the next meeting topic item: Gift giving policy on Tuesday, first
week of May. For more information about this event, please contact Khulangoo Purevjav, Working
Group Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Energy & Environment Working Group
BCM’s Energy and Environment Working Group’s 2016 kick-off meeting was held on Thursday, 25
February at the Open Society Forum’s meeting room with 17 members in attendance. Represented
were GGGI, US Embassy, XacBank, Mongolian Bankers’ Association, Arig Bank, Invest Mongolia,
Wildlife Conservation Society, Techenomics, Mongolian National Mining Association, Mongolian Wind
Association, Newcom Group, Economic Development Center and the newest addition to the Working
Group, the Institute of Energy Economics.
The meeting was organized under the theme of: "Green credit - private and public initiatives".
Agenda of the meeting:
- Sustainable Finance Initiative: Latest developments, progress towards private fund establishment,
Mr. Tumurkhuu, Head of Sustainable Finance Initiative Steering Committee and CEO of Arig Bank
- National concessions list: Latest developments, quick look at near-term projects, Mr. Ts.
Batbayar, Head of Concessions Division, Invest Mongolia
- Facilitated discussion on business implications of green finance and concessions opportunities in
Mongolia, Mr. Tumurkhuu, CEO of Arig Bank.
Mr. Tumurkhuu emphasized that the Sustainable Finance Initiative is in full swing with initial loans
being issued at 14 commercial banks of Mongolia since 2015. Mr. Batbayar, Division Head at Invest
Mongolia, shared latest developments on concession and the Agency’s efforts in improving the legal
environment for regulating concession issues in Mongolia. Mr. Jon Lyons, co-chair of the Energy &
Environment WG (EEWG,) facilitated the discussion on green finance and concessions opportunities
in Mongolia. Working Group members were mostly interest in the government’s guarantee to the
concessionaire and the updates of the Water Treatment Facility and CHP-ͷ concessions. As part of
BCM’s effort in increasing stakeholders from the government entities, Mr. Amarsanaa, Head of the
Institute of Energy Economics (IEE), an institute under the Ministry of Energy, attended the meeting
and agreed to introduce the IEE at the next Working Group meeting. For more information about
this meeting, please contact Khulangoo Purevjav, Working Group Coordinator of BCM at

18. khulangoo@bcmongolia.org.
_________________________________________
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th
floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan
Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate
Capital Ltd and Mongolian Bankers’ Association.
Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes
proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG
(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working
towards increased foreign investment in Mongolia’. It was suggested by members to include more
emerging players in the capital markets such as the insurance industry and most importantly engage
other stakeholders from government entities with the Working Group. Updates were given on the
development of ‘custodian banking’ and how the WG can leverage its efforts towards sound
regulations for custodian banks.
On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the
Treasury, Oyu Tolgoi will deliver a presentation on project financing.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
BCM’s Logistics Working Group
BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office
Building with 7 people in attendance representing Monex, Representative Office of Mitsui & Co.,
Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-Dolgoon Delgerekh LLC.
Agenda of the meeting:
• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”
• Discuss and plan WG’s 2016 activities
Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.
Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the
company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service
in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in
the delivery logistics within Ulaanbaatar.
Meeting participants were interested in the expansion plans of the company, such as delivery
services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave
comprehensive answers about the company’s plan for establishing cargo service between South
Korea and Mongolia initially and delving into other markets.
Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.
He again encouraged our members to read through the soft ideas laid out and provide comments.
Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,
so that members interested or operating in that topic area can actively participate and bring in
more insight.
The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the
questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM, at khulangoo@bcmongolia.org.
_________________________________________
BCM Education Working Group
BCM’s Education Working Group was held on 26 November at the Executive Excellence International
Business Center, 10F Galaxy Tower from 16:00 to 18:00. Fifteen people attended the event
representing foreign mission in Mongolia, private sector, universities and consultants of donor

19. funded projects:
Foreign Mission: Canadian Embassy;
Universities: National University of Mongolia, Mongolian University of Science and Technology
Private sector: PwC, Minter Ellison
Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education
and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The
Global Fund;
Meeting minutes summary:
Opening remarks by Education Working Group Chair - Saha Meyanathan. Saha related information
about being selected as the best Working Group of the year 2015.
Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB
funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities
will be organized first week of December.
During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of
building the capacity of the professors, as they are the ultimate knowledge givers to the students.
The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher
education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to
highlight a few:
For more information about this event, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
COOPERATION & MEMBER DISCOUNTS:
- Axel Fischer Academy offers 20% discount to BCM members on “Equipping your rising star Leaders”
in a three months training
- PROSUM LLC offers 10% discount to BCM members on promotional products they distribute from
European producers
- Corporate Governance Development Center (CGDC) offers 20% discount on all of its trainings to
BCM members
- News.mn offers 20% discount of its products and services for BCM members
- Mongolian Economy offers 50% discount for its advertisements & paid articles on website and 55%
subscription discount on its online magazine for BCM members
- NPC&Mandal offers 20% discount to BCM members
- Birches Group offers 10% discount on Mongolia Compensation and Benefits Survey for BCM
members
- New Media offers 25-50% discounts to BCM members on its online accounting software, E-
commerce platform, web & mobile application development and job searching software.
For more information about announcements and discounts, click here or contact Otgongerel,
Partnership Manager at otgongerel@bcmongolia.org.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
PRESENTATIONS:
BCM Monthly Meeting, 22 February:
- A. Baatarpurev, Director of Markets Development Department, Financial Regulatory Commission -
"Financial Market Developments in Mongolia"
- Jennifer Bielman, Country Director, MercyCorps Mongolia - "Mercy Corps: Building Resilience in
Mongolia"
- D. Uuriintuya, Chairman, Mineral Resources Authority of Mongolia - "Mongolian Events during PDAC
2016 in Toronto"
- N. Munkhnasan, General Director, Monpolyment - "Overview of Monpolyment"

20. _________________________________________
BCM Monthly Meeting, 25 January:
- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of
the Second Compact agreement between Government of Mongolia and the USA Millennium
Challenge Corporation -
“Development process of the second compact agreement between government of Mongolia and USA
Millennium Challenge Corporation”
- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”
_________________________________________
MONGOLIA REPORTS:
- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”
- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform
Priorities (Sep 2015)
_________________________________________
INTERVIEWS:
- VIP76 website, February 2016, “BCM Monthly meeting coverage”
- Jim Dwyer, Executive Director, BCM, Bloomberg TV, 27 January 2016, "Business community calls
for political stability
_________________________________________
WEBSITE:
"According to Google Analytics report, as of 14 March, the daily web traffic to the BCM website
was 73 visitors with 115 sessions. 90% were from Mongolia, 2% from United States and 2% from
Sweden."
SOCIAL NETWORKS
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.
Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the BCM NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.
Social stats: BCM now has 11,797 fans on our Facebook fans page, 1,984 connections on
LinkedIn network, and 2,010 followers on Twitter.
_________________________________________
MEMBERS’ VACANCIES
- Atlas Copco Mongolia LLC is hiring a Sales Engineer. For more information: contact at +976
70129294 or send your CV to e-mail address anders.berglund@mn.atlascopco.com
For more information about vacancies, click here. To post your vacancy on BCM website, contact
Dolgorsuren at dolgorsuren@bcmongolia.org.

21. _________________________________________
BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column
featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and
proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study
Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia
Technology Innovations."
Elisabeth Ellis, a partner at Minter Ellison LLP was featured in November 2015 edition in the article
titled "In Order to Make the Labor Law More Effective."
_________________________________________
BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.
From January 2013 to February 2016 we posted a total of 110 news items related to BCM activities,
economic and business related updates.
_________________________________________
The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos
from BCM events.
As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy
newly introduced interactive features such as: edit your organization's profile information; post
vacancy notices from your organization; post cooperation proposals with other members or deals
you would like to offer to other BCM members; and start a forum and ask questions directly on the
web platform. Of course you can also visit our website for news information, interviews, event
photos, videos and announcements regarding BCM.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
February 29, 2016 *2.0% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.6% y-o-y, 3.5% Core - Ulaanbaatar City, February 29, 2016
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]

22. October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]
CURRENCY RATES – 24 March 2016
Currency
US dollar USD 2,050.15
Euro EUR 2,288.27
Japanese yen JPY 18.16
British pound GBP 2,886.92
Hong Kong dollar HKD 264.26
Chinese Yuan CNY 314.82
Russian Ruble RUB 29.65
South Korean won KRW 1.76