The document provides a summary of business and economic news from Mongolia. It discusses several topics, including: 1) The CEO of Erdenes Oyu Tolgoi stating that the upcoming Mongolian election will not impact Rio Tinto's $5.3 billion investment deal for the Oyu Tolgoi mine expansion. 2) Plans for the Erdenet-Ovoot railway being developed by Aspire Mining to potentially form the first link of a new economic corridor for trade between Russia and China. 3) Unitel becoming the first Mongolian telecom company to launch 4G internet services in the country, starting with a pilot program.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 427 – May 13, 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:
 Mongolia election won't impact Rio Tinto's $5.3 billion deal: says mining CEO
 Erdenet-to-Ovoot line could form part of ‘economic corridor’
 Shivee Ovoo plans publics offering
 Unitel leads the charge toward 4G Internet services
 Chinese builder leads construction of road to Khushig airport
 China's Shin Shin abandons illegal operation in Dornod
 Centerra Gold announces quarterly dividend of C$0.04 per share
 MBD founder appointed as head of Center for America and International Law
 Erdenes Tavan Tolgoi still leads the pack in Mongolian coal production
 Ten things to know about the Oyu Tolgoi Underground Project
Economy:
 Mongol Bank: currency auctions, 1-week bills
 Rio's $5.3 bn go-ahead fuels hopes of end to Mongolia's hangover
 China opens $1 bn credit line
 High-level government officials disclose income
 Import tax on diesel fuel to zero at some borders checkpoints
 Japanese cars to be freed from customs tax
 Mongolia to issue MNT61.8 bn in tax returns
 Mongolian Bankers Association head warns that bad loans could sink banks
 From ‘Minegolia’ to a country in crisis: Mongolia looks to reverse its fortunes
 Mongolia approves vast reserve for Snow Leopards
 UB to issue closed bond offering
 UB grants space to disabled workers
 Rio Tinto says new Mongolia output to supply into copper deficit
 Commodities fall back to earth on China worries
 China’s coal production continues to fall
 Freeport-McMoRan mired in Indonesian uncertainty
 Construction industry: Impasse and a way out—EDITORIAL
 Oyu Tolgoi may boost Mongolia's GDP—VIDEO
Politics:
 Parties propose new election schemes for 28 seats up for grabs
 Mongolians living abroad disenfranchised from 2016 election
 CW-GP launches legal suit against election committee

2.  L. Tsog joins Uyanga's Justice Union
 OSCE recommends 300 international election observers
 PM appoints new spokesperson
 Mongolian pols named in Panama papers
 Police to tighten security for ASEM
 Police warn public of identity theft cases
 Darkhan's Democrats protest candidate choice
 UB removes billboards blocking drivers’ visions
 Dogmid Sosorbaram, Mongolia's singing democracy crusader
 Odds against: Risky course for Mongolia's child jockeys
BCM Updates:
 Announcements;
 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News;
 BCM in the University Classroom Series;
 Member-to-Member Special Offers & Benefits;
 Job Vacancies at Member Organizations;
 Websites Update - Presentations, Mongolia Reports, Interviews;
Economic Indicators:
 Inflation;
 Central Bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
SPONSORS
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BUSINESS
MONGOLIA ELECTION WON'T IMPACT RIO TINTO'S $5.3 BILLION DEAL: SAYS MINING CEO
The outcome of Mongolia's election next month will have no impact on Rio Tinto's USD5.3 billion Oyu
Tolgoi copper mine extension plan, the head of country's state-owned joint partner in the deal said

3. on Wednesday. "Politics is politics everywhere—there might be some individuals or some in
parliament who will represent different political positions and opinions, and who will ... try and
bring some more radical change into this investment agreement," said Davaadorj Ganbold, chief
executive officer of Erdenes Oyu Tolgoi.
"But no matter who wins the election—the major political parties do not have any political
motivation to disturb, or bring any big large sensitive changes into this investment agreement now,"
said at the annual meeting of the European Bank for Reconstruction and Development.
Source: Reuters
ERDENET-TO-OVOOT LINE COULD FORM PART OF ‘ECONOMIC CORRIDOR’
A rail line under construction project being led by Aspire Mining Ltd. may make up a link to a
strategic economic corridor for trade between Russia and China. The proposed Economic Corridor
forms part of China’s New Silk Road policy, which aims to improve Euro-Asian trade, and Russia’s
policy of establishing a Euro-Asian economic zone. It aims to improve trade by reducing regulation,
improving transport capacity at borders and improving road and rail infrastructure. Government-
level negotiations on forming an “economic corridor” rail link between Russia and China via
Mongolia are ongoing, according to Aspire Mining’s latest quarterly update.
The Erdenet-to-Ovoot railway being developed by Aspire’s subsidiary Northern Railways could form
the first stage of this new railway. As well as forming the potential first link in the economic
corridor, the rail line would connect Aspire’s metallurgical coal project at Ovoot to Mongolia’s
existing railway system—and onto international markets.
Source: World Coal
SHIVEE OVOO PLANS PUBLICS OFFERING
Shivee-Ovoo JSC is planning a public offering on the Mongolian Stock Exchange. The coal miner
announced plans to raise MNT40 billion from the sale of equity at a shareholders meeting on 9 May.
It reported MNT650 million in profits for 2015 from the sale of coal at MNT27,580 per ton.
Source: Unuudur
UNITEL LEADS THE CHARGE TOWARD 4G INTERNET SERVICES
Unitel Corp. LLC is the first Mongolian telecoms company to release 4G Internet services in Mongolia
through a pilot program to customers. Four of Mongolia’s mobile communications providers are
ready to release 4G to customers, according to B. Balgansuren, head of the Regulatory Committee
of Communications, but Unitel was the first to bring it to the market—although in a limited form.
“Additional settings will be adjusted in iPhone smartphones this June, while Mobicom Corporation is
expected to introduce the 4G this month. Also, ther providers will do in the second quarter of this
year,” he said.
Source: Montsame
CHINESE BUILDER LEADS CONSTRUCTION OF ROAD TO KHUSHIG AIRPORT
The Chinese company China Tiesiju Civil Engineering Group Co., Ltd. has been contracted to build a
30.4 kilometer road from the new international airport under construction at Khushig Valley by July
2018. Financing of the road will come from USD300 million borrowed from the Chinese government.
Source: Undesnii Shuudan
CHINA'S SHIN SHIN ABANDONS ILLEGAL OPERATION IN DORNOD
The Chinese Miner Shin Shin has abandoned operations in Dornod Aimag after facing charges of
illegally mining the Ulaan Tsav poly-metal deposit without the necessary permissions. The mine is
labeled one of Mongolia’s strategic deposits, which also includes Tavan Tolgoi, Gatsuurt and Oyu
Tolgoi. Shin Shin is charged with illegally mining nine tons of concentrate from the deposit,
although a prosecution office has reversed the charge.
The Chinese miner acquired the license for USD2 million from Asia Dalai Fareast, according to a
shareholder of that company and former MP R. Badamdamdin. Badamdamdin, who shares Asia

4. Dalai’s ownership with State Banks LLC's current director, B. Battuvshin, said he acquired the
licenses from DCD Jargalant Co. That sale was reportedly illegal, however, and a court canceled
Shin Shin’s license for the past infraction.
Source: Unuudur
CENTERRA GOLD ANNOUNCES QUARTERLY DIVIDEND OF C$0.04 PER SHARE
Centerra Gold Inc. will pay a quarterly dividend of CAD0.04 after announcing falling gold production
in its quarterly statement. The dividends compare with earnings of USD0.08 per share, or USD162.4
million in revenue, according to Thomson Reuters. In its 3 May statement for the first quarter of
2016, Centerra reported a 49 percent fall in gold production to 86,444 ounces. The Toronto-listed
miner reported 33,164 ounces on hand from the Kumtor mine in Kyrgyzstan because of after
shipping delays. Normal shipping resumed in April, it said.
Centerra is targeting production of between 480,000 and 530,000 ounces of gold for the year.
Source: Reuters, 2
MBD FOUNDER APPOINTED AS HEAD OF CENTER FOR AMERICA AND INTERNATIONAL LAW
The founder and chief executive officer of Mongolia Business Database, Ser-Od Inchinkhorloo, has
been been appointed as country coordinator for the Center for America and International Law in
Mongolia. Ser-Od, who is also a former vice director of the Business Council of Mongolia, will lead
the non-profit institute in its efforts to improve the quality of justice through education of lawyers
and law enforcement in Mongolia.
Tens of thousands of lawyers and law enforcement officers from all 50 US states and more than 130
countries have participated in CAIL’s programs. All Mongolian lawyers, law enforcement officers and
executives in the public and private sectors are eligible for CAIL training. The next events is a
multi-week Academy of American and International Law program in the United States on 17 May.
Source: NAMBC
ERDENES TAVAN TOLGOI STILL LEADS THE PACK IN MONGOLIAN COAL PRODUCTION
Erdenes Tavan Tolgoi LLC led the country again in coal exports to China last year amid continued
pressures on the coal industry. The state-owned miner was the source of 30 percent of the 14.5
million tons of coal exported last year. Behind it were Energy Resource LLC and SouthGobi Sands
LLC.
Mongolia comprised 10 percent of all coal imports to China last year.
Source: News.mn
TEN THINGS TO KNOW ABOUT THE OYU TOLGOI UNDERGROUND PROJECT
The development of the underground mine at the Oyu Tolgoi copper-gold mine will start in mid-
2016 following the approval of a USD5.3 billion investment by the partners and the recent granting
of all necessary permits.
• Oyu Tolgoi’s open pit mine has produced copper since 2013. The underground development will
unlock 80 percent of the value of the project and is anticipated for 2020, when copper markets are
expected to be in deficit.
• The mine will work 365 days a year, with two 12-hour shifts. At the peak of construction, the
underground workforce is expected to be more than 3,000 people. The deepest shaft will extend 12
times the height of the Blue Sky Tower.
• Ninety-five per cent of the workforce is Mongolian.
• In 2015, Oyu Tolgoi worked with approximately 900 suppliers, including 600 Mongolian
businesses—90 from Umnugobi Aimag.
• Since 2010, Oyu Tolgoi has spent more than exceeded USD5 billion on salaries, payments to the
government, and more.
Source: Rio Tinto Group

5. ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, 1-WEEK BILLS
The Bank of Mongolia on 10 May rejected bids of USD5.8 million and CNY55.7 million at a currency
auction. On 11 May, the central bank issued one-week bills worth MNT90 billion at a weighted
interest rate of 10.5 percent.
Source: Bank of Mongolia
RIO'S $5.3 BN GO-AHEAD FUELS HOPES OF END TO MONGOLIA'S HANGOVER
Rio Tinto's long-awaited approval of a USD5.3 billion extension for its giant Oyu Tolgoi copper mine
is fueling hopes of a revival at last for Mongolia, battered by a slowdown in neighboring China that
has left it deep in debt. Rio's decision to go ahead with the costly and complex expansion is a bet
on copper's recovery for a miner that badly needs to recalibrate its iron ore-heavy portfolio. Mining
executives, government officials, diplomats and analysts say it is also a potentially game-changing
boost for Mongolia that could spark the unblocking of other projects and restore investor trust, key
steps for the country to meet debt repayments due from 2017.
According to Fitch, Mongolian sovereign and sovereign-guaranteed entities face a combined USD1.1
billion of external bond maturities in 2017 and 2018—before the underground is expected to
commission in 2020.
Source: Reuters
CHINA OPENS $1 BN CREDIT LINE
China has agreed to fund USD1 billion worth of projects aimed at energy and agriculture industries,
as well as general infrastructure. Gao Hucheng, the Chinese Minister of Commerce, made the
agreement while in Ulaanbaatar to co-chair a intergovernmental commission for trade. Prime
Minister Chimed Saikhanbileg has requested separate agreements on each project.
Source: Montsame
HIGH-LEVEL GOVERNMENT OFFICIALS DISCLOSE INCOME
The Independent Agency Against Corruption (IAAC) has reported on the 2015 incomes of Mongolia’s
225 highest-level government officials, including the president, prime minister and Parliament
speaker. Parliament’s G. Batkhuu had the highest income in the legislature (MNT5.7 billion) while
B. Bat-Erdene had the most livestock (430 horses, 60 cows, 20 high breed race horses, 400 goats and
300 sheep), according to the list. Behind Batkhuu was J. Enkhbayar with MNT4.2 billion and S.
Byambatsogt with MNT4 billion.
The top-10 MPs with the highest income last year are as follows:
1. G. Batkhuu, MNT5.7 billion
2. J. Enkhbayar, MNT4.2 billion
3. S. Byambatsogt, MNT4 billion
4. Former Prime Minister Sukhbaatar Batbold, MNT2.9 billion
5. Minister of Road and Transportation M. Zorigt, MNT1.5 billion
6. B. Choijilsuren, MNT1.3 billion
7. D. Zorigt, MNT1.3 billion
B. Narankhuu, owned most car (six cars in total MNT 1.18 billion)
S. Odontuya owned most apartments (five apartments) followed by L. Gantumur and Yo.
Otgonbayar(five apartments).
Source: Udriin Sonin, Zuunii Medee
IMPORT TAX ON DIESEL FUEL TO ZERO AT SOME BORDERS CHECKPOINTS
Mongolia is exempting diesel fuel from import tax to offer farmers some relief after last year's
severe drought. The Cabinet Secretariat on on 9 May issued a tax exemption on 6,500 tons of diesel
fuel traveling into the country from the Sukhbaatar and Ereentsav border points until 20 June. The
government expect that the tax cut will chop off about MNT190 from the cost of a liter of diesel,

6. helping to return the domestic supply of wheat and flour to normal levels by 2017.
Source: Mongolia.GoGo.mn
JAPANESE CARS TO BE FREED FROM CUSTOMS TAX
The import tax on used cars from Japan will be removed on 7 June as Mongolia’s Economic
Partnership Agreement with Japan takes effect. Taxes will be removed on 9,300 types of goods
from Japan. Meanwhile Japan will removes its tax on 5,700 goods imported from Mongolia,
including meats and felt goods. The tax exemption on Japanese cars applies to cars of up to three
years old, while cars on the road for between four and six years will be taxed some, but below the
normal rate. Older vehicles will be taxed the standard amount.
Mongolia’s trade for Mongolia is estimated at around USD 300million to USD500 million, or 4 percent
of Mongolia’s foreign trade. The trade agreement is expected to boost trade by up to 60 percent by
2018.
Source: News.mn
MONGOLIA TO ISSUE MNT61.8 BN IN TAX RETURNS
Mongolia expects to pay out a total MNT45.8 billion in tax returns this year. The Mongolian tax code
has been altered to provide a 30 percent exemption for real estate purchases and tuition payment
for up to MNT3 million. The government has paid out a total MNT9.2 billion to the 11,7000 tax
payers who submitted their returns before 22 January. Another MNT16 billion will be paid to the
remaining 23,000 expecting returns.
Source: News.mn
MONGOLIAN BANKERS ASSOCIATION HEAD WARNS THAT BAD LOANS COULD SINK BANKS
The liquidity of Mongolia’s banks is drying up as the number of loans piles up, according to the head
of the Mongolian Bankers Association. “Banks' asset and credit volume haven't increased over the
past three months,” said J. Unenbat, chief executive officer of the banking group. That compares
with annual credit growth of 50 percent, he said [Source did not specify over what time period -ed].
The number of borrowers unable to pay back their loans because of the deteriorating economy is
the main factor here, said Unenbat, with 8.2 percent of loans from banks listed as non-performing.
Mortgage lending currently represents 30.5 percent of all loans in the country, with the central
bank backing three-quarters of all mortgages with its subsidized lending program.
Source: Undesnii Shuudan
FROM ‘MINEGOLIA’ TO A COUNTRY IN CRISIS: MONGOLIA LOOKS TO REVERSE ITS FORTUNES
Chimgee remembers the days people crowded in front of her meat market stall, waiting to buy from
her storage locker jammed to the ceiling with beef, goat, sheep, camel and horse carcasses.
Mongolia was so jammed with mineral resources that respectable people talked about a future as
the next Qatar or Brunei, with fabulous wealth shared among a population of just three million. But
Mongolia has gone from Asia’s golden child to its binge-drinking adolescent, with government
borrowing to make payroll, cash-short consumers reduced to bartering for goods, and observers
openly talking about the possibility of either a sovereign default—national bankruptcy—or a massive
bailout.
It’s all visible from Chimgee’s shop: “This is the hardest it has been in 20 years.” Her storage locker
stands virtually empty as she shows a handwritten ledger. The tally one recent morning noted nine
sales, only two paid in full. The remainder pleaded to settle up later.
Source: The Globe and Mail
MONGOLIA APPROVES VAST RESERVE FOR SNOW LEOPARDS
Snow leopards—among the world’s rarest big cats—got some good news when the Mongolian
parliament recently voted to create a nature reserve in the Tost Mountains of South Gobi province,
along the country’s southeastern border. “This Nature Reserve will be a bridge between two
existing protected areas, the Great Gobi and the Gobi Gurvansaikhan National Park,” Charu Mishra,

7. director of science and conservation for the Snow Leopard Trust, said in a statement. “The resulting
landscape will be one of the world’s largest continuous protected snow leopard habitats.”
Once the park’s final boundaries are set, a process that should be completed by mid-June, the
government is supposed to revoke mining licenses for any lands that fall inside the park. Mongolia is
thought to contain around 1,000 of the world’s remaining 3,000 to 7,500 snow leopards—the second-
largest population among the 12 Central Asian nations in the snow leopard’s range.
Source: TakePart
UB TO ISSUE CLOSED BOND OFFERING
Ulaanbaatar will release a closed bond offering to help finance construction projects as lending
from banks peters out. Building and selling apartments has helped buoy the economy amid a weak
market for key commodities coal and copper over the last two years, but banks are running out of
cash to lend out to builders. Following a 30 percent decrease in lending to construction companies,
the Ulaanbaatar Citizens Khural has approved a bond offering to raise funds for lending through a
city-owned company where the mayor will stand as a board director.
Source: Undesnii Shuudan
UB GRANTS SPACE TO DISABLED WORKERS
Ulaanbaatar is providing space for disable people to work unskilled jobs such as selling foods and
repairing shoes. Ulaanbaatar’s city authorities have provided 20 kiosks in the Bayangol and
Chingeltei Districts free of change, with each manned by three disabled workers. Each booth is
valued at MNT5million for monthly rent.
Those workers will receive training to run their small shops. Mongolia has 99,5000 registered
disabled, according to the Labor Ministry, or 3.3 percent of the population.
Source: News.mn
RIO TINTO SAYS NEW MONGOLIA OUTPUT TO SUPPLY INTO COPPER DEFICIT
Rio Tinto Group’s USD5.3 billion underground expansion of the Oyu Tolgoi mine in Mongolia will
increase its output in about four years time when the copper market is in deficit, according to the
company’s deputy chief executive officer. A global surplus of refined copper could maintain
pressure on the market with a number of mine expansions expected during 2016, Bloomberg
Intelligence said in a April 7 report. “The long-term need for copper remains strong and production
from Oyu Tolgoi underground will commence when copper markets will be in deficit,” said Jacques,
who will become chief executive officer in July, replacing Sam Walsh.
Copper demand may catch up with supply next year and a deficit will then widen on a lack of new
mines, Freeport-McMoRan Inc., the largest publicly traded producer, said in March. Oyu Tolgoi,
about 80 kilometers (50 miles) north of the Chinese border, will rank as third largest in the world at
full production, according to Wood Mackenzie Ltd.
Source: Bloomberg
CHINA’S COAL PRODUCTION CONTINUES TO FALL
Coal production in China was down 4.5 percent for the first quarter of 2016 compared with a year
ago, making it the second year of waning production for the black stuff. China, which buys nearly
all of Mongolia’s coal, saw its March coal output fall by 293.8 million tons from the same period in
2016, according to the latest data from China Coal Resource, bringing coal output for 1Q16 to
807.26 million tons—a fall on 4.8 percent on the first quarter in 2015.
China has been cutting coal production to reduce oversupply in the domestic coal market with the
State Council targeting the elimination of 1 billion tons of coal production capacity within the next
five years. Half of the cuts will come from mine closures and half through company consolidation.
The majority of Chinese coal production comes from just five provinces: Shanxi, Inner Mongolia,
Shaanxi, Shandong and Guizhou. Between them, these five provinces accounted to 70.4 percent of
this year’s first-quarter production production, according to China Coal Resource.
Source: World Coal

8. COMMODITIES FALL BACK TO EARTH ON CHINA WORRIES
Commodities from copper to iron ore fell sharply on 9 May, as a speculative rally lost steam over
fresh worries about economic growth in China, the world’s biggest consumer of raw materials. A
burst in speculative trading that drove up commodity prices over the past month has led to
increased production and a build-up of inventory in the country, the world’s largest consumer of
commodities. Traders are now growing concerned that real demand is not there to support prices.
“Overall, China’s commodity trade data reflected cooling demand in domestic market from last
month, yet the recovery is on track, although at a slower pace,” Helen Lau, an analyst at Argonaut
Securities in Hong Kong, said, adding that a slower recovery would be the best course.
An article in the People’s Daily, a government controlled paper, added to worries, as it argued
Beijing should abandon stimulus to drive growth. “Trees cannot grow to the sky, and high leverage
will undoubtedly bring high risks.”
Source: Financial Times
FREEPORT-MCMORAN MIRED IN INDONESIAN UNCERTAINTY
Mongolia isn’t the only country that runs into loggerheads with miners, an Indonesia’s public battle
with a copper mine that Rio Tinto Group has ownership rights over shows. The Grasberg mine is one
of the world’s largest copper and gold assets, with reserves worth almost USD100 billion at today’s
prices. But the agreement allowing Freeport to mine at Grasberg expires in 2021, and Freeport
insists it has the right to renew this “contract of work” for two more decades, to 2041. Rio Tinto
helped to fund part of the mine’s development and is therefore set to get a 40 percent share of
output from 2021—but only if the contract with Indonesia is renewed.
Ultimately Freeport could seek international arbitration, but Freeport Chief Executive Officer says
Richard Adkerson Adkerson says: “We continue to work to avoid having to resort to that dispute
resolution process — we do not believe that would be positive for Indonesia or for our company.”
Source: Financial Times
CONSTRUCTION INDUSTRY: IMPASSE AND A WAY OUT—EDITORIAL
Mongolia’s real estate market today resembles a toddler. Thousands of apartments and other
buildings in Ulaanbaatar do not meet the basic requirements of modern urban planning and they
lack good infrastructure, and newly built roads in the city are being dug up every year. Trillions of
tugrug are locked in the construction industry today while there is market surplus and
unrealistically high prices. Government policies subsidizing mortgages are keeping real estate prices
inflated, however, but companies are trapped in a corner with banks while counting on government
to bail them out.
Cutting interest rates from 8 to 5 percent on mortgage is increasing the government’s debt and is
not sustainable in the long run. It will likely stop after the general elections. In Mongolia, there is
no difference between a real estate developer and a construction company, and reforms are
needed in zoning rules, real estate taxes, and a public database of property to change this.
Source: UB Post
OYU TOLGOI MAY BOOST MONGOLIA'S GDP—VIDEO
Copper suffered the worst five-day loss since 2014 last week amid concerns about the strength of
demand in China. As the big miners look to a rebound in commodities, copper is being seen as a key
focus for growth, illustrated by Rio Tinto Groups’s approval on Friday of a multi-billion dollar
expansion of the Oyu Tolgoi mine in Mongolia. Bloomberg TV Mongolia’s Duuya Baatar reports.
Source: Bloomberg
POLITICS
PARTIES PROPOSE NEW ELECTION SCHEMES FOR 28 SEATS UP FOR GRABS
Mongolia’s two largest parties, the Mongolian People’s Party (MPP) and Democratic Party, are

9. backing separate plans to fill the 28 seats in Parliament that were chosen by party list in 2012.
Parliament has removed from the election law the mixed system for choosing candidates for the
legislature, where 48 seats were directly elected and the remaining 28 were distributed among
parties depending on their shares of the vote. The Democrats at a 9 May Party backed a plan to
evenly allocate 14 seats by a vote from all of Mongolia’s provinces, depending on the population
size, and 14 more from Ulaanbaatar.
The Mongolian People’s Party at a separate meeting that day backed a a plan that would seen rural
provinces choose the candidates for between 16 and 18 seats, depending on population size, and
Ulaanbaatar’s districts choose between 10 and 12, said MPP leader Sangajav Bayartsogt.
Source: Montsame, 2
CW-GP LAUNCHES LEGAL SUIT AGAINST ELECTION COMMITTEE
The Civil Will-Green Party will sue the General Election Committee for excluding it from the ballots
in the 2016 election. The committee did not include CW-GP and the National Labor Party in a list of
parties that would be allowed to back candidates, citing problems with the paperwork and official
stamps.
Source: Undesnii Shuudan
MONGOLIANS LIVING ABROAD DISENFRANCHISED FROM 2016 ELECTION
Mongolians living in foreign countries will not be able to participate in this year’s parliamentary
elections because of the changes to the election rules made by Parliament. A ruling by the
Constitutional Court made unconstitutional the vote for parties to fill 28 seats in the legislature,
which was the choice for Mongolians in foreign countries had to choose from when delivering their
ballots to their embassies. “The Constitutional Court has issued a protocol, stating that some
electoral provisions are violating the Constitution,” said L. Purevsuren. “As a result of this, it will
now be impossible for the 150,000 Mongolians living abroad to vote in the forthcoming election”.
Mongolia first accepted ballots collected from its embassies abroad in 2012.
Source: News.mn
L. TSOG JOINS UYANGA'S JUSTICE UNION
Deputy Speaker L. Tsog has left the Mongolian People’s Revolutionary Party to join MP G. Uyanga at
the Justice Union where she has taken the chairman position.
Source: News.mn
OSCE RECOMMENDS 300 INTERNATIONAL ELECTION OBSERVERS
The Organization for European Security and Co-operation has recommended 300 short-term
observers for the 2016 election. OESC’s Democratic Institutions and Human Rights office determined
that 300 observers would be required after visiting Mongolia to meet with institutions such as the
General Election Committee, the Constitutional Court, and the Parliamentary Standing Committee.
It also recommended 22 posts for long-term monitoring.
Source: News.mn
PM APPOINTS NEW SPOKESPERSON
Ts. Ganbold has been appointed as the chief spokesperson for Prime Minister Chimed Saikhanbileg.
Ganbold is a former journalist who graduated from the Saint Petersburg University. He has worked
as editor-in-chief at the newspaper Ardiin Erkh and director of Zasgiin Gazriin Medee. In broadcast,
he was director of the MM agency at Mongolian National Broadcasting. In politics, was a media
advisor to former prime minister Mendsaikhan Enkhsaikan and a spokesperson of the cabinet 20
years ago.
Source: Montsame
MONGOLIAN POLS NAMED IN PANAMA PAPERS
Mongolian names from the political and business arenas have appeared in the so-called Panama

10. Papers, which has leaked the names of people from around the world putting their money offshore
tax havens from a legal firm based in Panama. The report from the International Consortium
Investigative Journalists (ICIJ) has named 10 companies tied to Mongolia. The report named ties to
offshore accounts with the son of Ulaanbaatar Mayor Erdene Bat-Uul, Bat-Uul Chuluudai, and former
MP D. Batbayar. Tied to an account under a company called Wisdom International Holdings were
Borkhuu Delgersaikhan, general director of Dorniin Gobi LlC, and Ochirsukh Yansanjav, who are both
expected to run as candidates backed by the Mongolian People’s Party.
"There must have been a mistake,” said said Batbayar in response to the report. “I have never
owned hidden offshore account.”
Source: Mongolia.GoGo.mn, 2
POLICE TO TIGHTEN SECURITY FOR ASEM
Police will take extra security measures during the Asia-Europe Meeting (ASEM) summit scheduled
for July in Ulaanbaatar, according to police officials. A police contingent will be released for crime
surveillance at venues for the events as most of the delegates for ASEM arrive on 15 or 16 July, said
Lieutenant-colonel T. Lkhagvadorj, chief of the policy regulation for public safety the General
Police Agency, and Lieutenant-colonel B. Erdenebat in a press conference. Traffic will be under
extra scrutiny during the summit during the hours sessions are under way, they said.
The officials denied reports that people were charged with crimes for filming Chinggis Square from
the windows of their homes during the Asia-Europe Parliamentary meeting last month.
Source: Mongolia.GoGo.mn
POLICE WARN PUBLIC OF IDENTITY THEFT CASES
Police investigators are looking into two hackers believed to have stolen the private information of
individuals. Major B. Baatarkhuu of the General Police Authority said cases had been opened into
one suspect they believe has stolen information from 24,783 individuals and other that allegedly
stole money using the credit cards of foreign visitors and residents.
Source: News.mn
UB REMOVES BILLBOARDS BLOCKING DRIVERS’ VISIONS
Ulaanbaatar authorities have begun taking down billboards throughout the city that have obstructed
traffic. Billboards standing in areas where they obstructed the vision of drivers from the road ahead
will be taken down, said authorities.
Source: Zuunii Medee
DARKHAN'S DEMOCRATS PROTEST CANDIDATE CHOICE
Members of the Democratic Party in Darkhan-Uul have launched demonstrations over the candidate
appointed to them by Parliament Speaker Zandaakhuu Enkhbold. The Democratic Party in Darkhan
has been split into two separate camps led by different leaders. After the appointment of N.
Munkhdash as the candidate to run for a seat in Parliament representing Darkhan, demonstrators on
2 May built gers in front of the Democrats' headquarters at the Builders Square.
Source: Zuunii Medee
DOGMID SOSORBARAM, MONGOLIA'S SINGING DEMOCRACY CRUSADER
Dogmid Sosorbaram was born in 1958 into a nomadic family in southern central Mongolia. As a child,
he passed many hours sitting astride his horse and singing songs while he watched the moon. This
experience instilled in him a love of Mongolian music that would eventually set him on the path of
political activist. He was also was a key figure in the pro-democracy movement, which gathered
steam in 1989. Reciting poems and singing songs at political rallies, he played an important role in
unifying opposition parties into the currently governing Democratic Party.
While many of his fellow pro-democracy campaigners went on to become political leaders,
Sosorbaram has returned to the field of arts. His interest in politics, however, has not waned.
Appearing on a talk show in early April, he chided Mongolia's leaders, saying, "There are more and

11. more politicians who do not think about the future."Well-versed in both culture and politics,
Sosorbaram is keeping a close eye on where his beloved country is heading.
Source: Nikkei Asian Review
ODDS AGAINST: RISKY COURSE FOR MONGOLIA'S CHILD JOCKEYS
Racing their steeds across the endless Mongolian steppe, child jockeys as young as seven dream of
glory and riches in horse-loving Mongolia. Yet rights groups warn of a dark underbelly in the sport—
where vulnerable pre-teens face the risk of crippling injury and harsh treatment or even physical
abuse by trainers. A 2014 UNICEF report said that some 326 child jockeys were hospitalized in 2012,
mostly with head or bone injuries. It surveyed 529 child jockeys, with some 5 percent saying they
had been beaten or kicked by their instructors. A source at the Mongolian National Human Rights
Commission, who asked not to be named, said trainers choose boys from poor families as they are
less likely to sue.
Later this year Mongolia will bring in new child protection legislation, banning kids from winter
races and mandate punishments for trainers if children are injured in summer contests.
Source: AFP
BCM UPDATES:
ANNOUNCEMENTS
OPEN-HOUSE AT GOLD'S GYM FOR BCM MEMBERS & FAMILY, 14 MAY
BCM members are invited to an open-house at Gold’s Gym on Saturday, 14 May from 11:00 to
14:000. Master trainer and General Manager Ochkhuu and his team will lead a tour of the facility as
well as lead group cycling and fitness workouts. Mongolia's first international fitness center opened
its doors early this year via a soft-launch. Gold's Gym is famous for celebrity members such as
Arnold Schwarzenegger, Sylvester Stallone, Jean-Claude Van Damme, and prides itself on driving
real results for its members.
Entrance is complimentary to all BCM members, their spouses, and children, but space is limited to
the first 50 people. For more information and to sign up, please contact Dolgorsuren (Dogi) at
dolgorsuren@bcmongolia.org, or call 89492828.
_________________________________________
EXPO MONGOLIA – THE PLACE TO BE IN MAY 2016 FOR DOING BUSINESS!
A perfect time for international investors, associations and private companies to start business in
Mongolia and to play a key role in future development. Therefore Expo Mongolia, the international
trade fair in Buyant-Ukhaa Sport Complex, Ulaanbaatar, is the meeting place for all industries.
From 23–25 May in the Buyant-Ukhaa Sport complex, official pavilions and individual exhibitors are
warmly welcomed to the unique networking platform in the expanding eastern market to establish
business contacts and to present new innovations to trade professionals from Mongolia and
surrounding countries.
BCM members will have 10% discount on registration. Please contact saruul@bcmongolia.org to get a
special discount code. For more information please visit www.expomongolia.com.
Please contact us via e-mail: em@expomongolia.com. Tel: +976 94009471, +976 70009471
BCM ADVOCACY NOTES
Revisions to latest draft of Labor Law bill
Ministry of Labor has recently made revisions to the latest draft, particularly in areas of joint
agreement and annual leave. Currently, this draft is being reviewed and commented by other
Ministries. Labor Minister Bayarsaikhan.G reconfirmed his intentions to submit the draft for the
autumn Parliamentary session.

12. The latest draft can be found here.
BCM WORKING GROUP NEWS
Education Working Group
EWG had a small but very engaging meeting on 5 May, with discussion on Sustainable development
goal and the private sector involvement and a look at Labor Market Survey for Higher Education.
Key performance indicators for the education sector were discussed and agreed to be incorporated
to the BCM Summit Proceedings. Please read more
_________________________________________
Risk Working Group
Health and safety was main focus of the RWG meeting, held on 28 April. WG members had a look at
grim situation of risk management system at most local companies as presented by OSHMI. Dr
Usukhbayar’s practical tips in handling office bound health and safety risks, was complimented with
full demonstration of cardiopulmonary resuscitation /CPR/ on a mannequin followed with a group
exercise. Please read more
_________________________________________
Energy & Environment Working Group
“INNOVATION IN GREEN TECHNOLOGY” was the theme for EEWG meeting, on 26 April. Institute of
Energy Economics shared with the group its recent studies and projects for possible partnership.
MoEGDT representative informed the 303 Decree by the Government of Mongolia, which allows
companies to be exempt from customs duty when importing tools, equipment approved as
environmentally sound and efficient. Please read more
_________________________________________
Legislative Working Group
Draft labor law /DLL/ and proposed tax legislation revision were discussed by the members on 14
April, as proposed by LWG’s two new Co-Chairs. Negative developments and recent updates were
comprehensively incorporated on the DLL presentation. CIT draft law review identified grave
consequences the current draft could entail. WG Co-Chairs agreed to consult with BCM’s Tax WG on
further review of the CIT draft law, and discussed possibility of statement by the BCM’s LWG.
Please read more
_________________________________________
Capital Markets Working Group
Oyu Tolgoi Underground Project Financing inclusive of list of project financing participants,
financing plan with its tranches and key financing terms, was a feature presentation of the CMWG
meeting, on 5 April. It was updated at the meeting that despite no sign of progress on failed trade
management of the custodian banking service from FRC, brokerage firms and commercial banks
have clarified impending settlement issues. Please read more
_________________________________________
Tax Working Group
Practical guide into the newly adopted VAT law was conducted by a Tax inspector for WG members
on 2 March. Procedural changes: registration/de-registration as a VAT payer, VAT-exempt goods and
services and VAT zero-rated goods and services were mainly focused. Tax WG’s draft plan for 2016,
with heavy focus on engagement from government representative, was shared with the members.
Please read more
_________________________________________
Business Ethics Working Group
Mandal Insurance’s strong stance against “kickbacks” in the insurance industry impressed attendees
at the BE WG meeting held on 1 March. Gift giving policy and CSR initiatives are agenda items for
next BEWG. Please read more. Should you wish to sing-up for this newest WG and contribute
towards a level playing field, please email khulangoo@bcmongolia.org

13. ‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES
Our series’ distinguished lecturer was MP Oyun S, who spoke to 200 select students at the University
of the Humanities on 18 April. "Sustainable Development and Mongolia" presentation was followed
by tough questions from students on lack of government actions on air pollution and green
technology subsidy. Please read more
_________________________________________
A record breaking headhunter within the Mongolia Talent Network, Ms Nomin helped 300 senior
students with acing their job interviews and writing up stellar CVs at University of the Humanities
on 5 May. BCM thanks Ms Nomin for doing justice to the BCM University classroom series, by
personally assisting the students and inspiring them during their critical period of career launch!
Please read more
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 4 May facilitated by Ch. Mergen, Executive
Director of BCM on the topic "Optimizing Costs and Managing in Downturn". The total of 24 people
representing 18 BCM member companies attended the session. During the session Mergen covered
about cost driven price policy; expense monitoring of experienced and growing businesses;
eliminating cost units and shared practical tips for managing your business in downturn, such as
focusing and strengthening your advantages, skills to leave old things behind, facing the reality,
balancing stability with change etc. The session was organized in a very interactive and engaged
manner. At the end of the session Mergen offered the participants "The Daily Drucker" book by
Peter F. Drucker at discounted rate. Translation of this book into Mongolian was Mergen's last two
years' work.
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- American University of Mongolia is offering BCM members a 20% discount on all of ELI Summer
Courses.
- Matoza LLC is offering 15% special discount to BCM members on Intensive Business English
Language Course in Poland with a Sightseeing Trip.
- Churchills if offering 10% discount for BCM members on their "Food Safety & HACCP Risk
Management System" course to be organized on 17-19 May, 2016
Please click here to view full list of Member-to-Member special offers & Benefits.
JOB VACANCIES AT MEMBER ORGANIZATIONS
- ADRA Mongolia is hiring a technical Adviser of food security program. Deadline for application: 13
May 2016. For more information: contact: humanresources@adra.org .mn
- Save The Children is hiring a Receptionist (maternity replacement). Deadline for application: 15
May 2016. For more information: contact:secretary@savethechildren.mn
- Oyu Tolgoi invites applications for a scholarship for Masters Degree study at the Curtin University,
Perth, Australia in the fields of mechanical engineering and/or electrical engineering commencing
in July 2016. Deadline for Application: May 20, 2016. For more information: contact: (976) - 7010-
3604
Please click here to view full list of Job Vacancies at member organizations.

14. WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
BCM Monthly Meeting, 2 May:
- Ch. Mergen, Executive Director, BCM – “BCM updates”
- Jon Lyons, Country Representative Mongolia, GGGI & Thomas Papazov, Business Development
Manager, Engie Mongolia – “Energy Efficiency – Business opportunities for Energy Services”
- M. Dagva, President of MPIGM & General Director of QMC LLC - "Self-Regulation Initiative of
Mongolian Mining Industry"
- B. Ochkhuu, General Manager, Gold’s Gym – “BCM Open Day at Gold’s Gym” May 14, 2016
Please click here to view full list of Presentations.
_________________________________________
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)
Please click here to view full list of Reports.
WEBSITE:
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.
Follow us on:
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]
March 31, 2016 *1.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.1% y-o-y; 3.1% Core - Ulaanbaatar City, March 31, 2016

15. CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
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 – May 12, 2016
Currency
US dollar USD 2,012.16
Euro EUR 2,296.08
Japanese yen JPY 18.46
British pound GBP 2,901.94
Hong Kong dollar HKD 259.34
Chinese Yuan CNY 309.14
Russian Ruble RUB 30.91
South Korean won KRW 1.72