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1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 439 – August 12, 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:
 OT gold production to increase despite copper taper
 Petro Matad rockets as Shell agrees to $15 mn pay off
 IFC and UB City to cooperate in green technologies
 DHL provides eased access to Mongolia
 Talkh Chikher plans for growth with export
 Suu reports 10.5% profits increase
 Budapest offers EUR25 mn credit to Ulaanbaatar
 Gold Producers Association Chair advocates for 100% privatization of Erdenet
 Peter Morrow, American who Led Mongolia’s Khan Bank reform, dies
Economy:
 Mongol Bank: FX Auctions, 1-week bills
 Mongolia calls for economic ‘crisis’ plan; bonds tumble
 Erdenebat government suspends ‘Good” social welfare programs
 State groups allowed to purchase only domestically produced goods, says PM
 Prime Minister promises to continue subsidized mortgages, universal children
allowances
 Former UB mayor incensed by close of home efficiency incentive
 Tugrug continues to sink against U.S. dollar
 MPs release their income and asset statements
 Tourism Ministry ties cooperation with Inner Mongolia’s Xilingol province
 Mongolia plans for May 2017 satellite launch
 ADB on board with new UB government for urban development
 Millennium Challenge targets water reserves for second-compact financing
 NGO to finance construction of new national park
 How the Auto Mall helped turn UB against the Democrats
 International leopard protectors meeting started in Darvi Soum, Khuvd aimag
 Copper outlook dims as 'wall of supply' hits slowing demand
 China producer deflation eases to slowest pace in two years
Politics:
 Cabinet forms a council to protect investors’ rights

2.  Dismissal of Civil Service Council members illegal, say Democrats
 China, Mongolia, Japan, South Korea to take part in Baikal Dialogue forum
 Diplomatic passport holder receive 30-day visa-free travel to Malta, Croatia
 NAMBC and BCM lobby against costly export policy
 Russian authorities nab dino fossil smugglers
 4 UB deputies appointed
 UB Mayor forms Department for Youth Development
 Mongolian judo athlete take silver at Rio
 USA today names Mongolia “Best Dressed” at Rio Games
 Mongolia using mental athletics as a nation-building exercise
 420 Performers fold their bodies into pretzels to set world records
 Panama Papers helps break new reporting ground in Mongolia
BCM Updates:
• Announcements
• Advocacy Notes
• Working Groups News
• Job vacancies at member organizations
• Member-to-Member Special Offers & Benefits
• Websites Update - Presentations, Mongolia Reports, Interviews
Economic Indicators:
• Inflation
• Central Bank Policy Rate
• Currency Rates
*Click on titles above to link to articles.
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3. BUSINESS
OT GOLD PRODUCTION TO INCREASE DESPITE COPPER TAPER
The Oyu Tolgoi mine will have higher-than-expected gold production for the year,
according to company heads, while copper may fall short of targets. The heads of Oyu
Tolgoi met with the new mining minister, Tsedev Dashdorj, on 9 August to brief him on the
latest news on their operations. The mine, which is 34 percent owned by government and
66 percent by Turquoise Hill Resources Ltd., is expected to produce slightly less than the
208,000 tons target, said the company representatives.
Turquoise Hill is majority owned by Anglo Australian miner Rio Tinto.
Source: Montsame, Mongolia.GoGo.mn
PETRO MATAD ROCKETS AS SHELL AGREES TO $15 MN PAY OFF
Petro Matad Ltd. shares doubled in value on 5 August after the Mongolia explorer
announced a deal which will see Shell pay out up to USD15mln to the company. Back in
June Petro Matad reported that it was in talks with Shell’s Mongolian affiliate regarding its
exit from a farm-out arrangement for the Block IV and V production sharing contracts,
which span some 60,000 square kilometers of Mongolia. The original farm-out deal was
agreed with BG Group last April, and the decision to end the partnership comes after Shell
reassessed its portfolio following its acquisition of BG.
It has now been agreed that Shell owned BG Mongolian Holdings Ltd. (BGMH) will pay an
exit fee of just over USD10 million, as well as a further USD5 million (which could be
refunded by Petro Matad if a new partner comes into the projects during the current
exploration period). Petro Matad will now receive back the 78 percent working interests in
in the blocks that were previously assigned to BGMH, subject to government consent. The
USD5 million payment will be payable once this reassignment has taken place.
Subsequently, Petro Matad will hold 100 percent of the blocks and will have received
USD15 million of cash.
Source: Proactive Investors
IFC AND UB CITY TO COOPERATE IN GREEN TECHNOLOGIES
The International Finance Corporation (IFC), the lending arm of the World Bank with a
focus on public-private partnerships, has offered assistance for the “green” urban
development of Ulaanbaatar as the city charts a new course under the Mongolian People’s
Party (MPP). The MPP has promised to continue efforts to improve the quality of life in
Ulaanbaatar with an urban development plan, but with a focus on extending infrastructure
for heat and water rather than relocating residents of the so-called “ger” districts, where
people live in tradition gers without access to public utilities. In a meeting with
Ulaanbaatar Mayor S. Batbold, the IFC head for Mongolia, Tuyen Nguyen, proposed that the
IFC provide technical assistance and consultancy for Ulaanbaatar’s urban development,
with particular focus on the introduction of environmentally friendly technologies.
The mayor said the city was looking to private-public partnership solutions for green
development and that IFC could figure into future plans. Top priorities, he said, were
providing residents of the ger districts with affordable housing, reducing air pollution and
building industrial centers.
Source: Montsame
DHL PROVIDES EASED ACCESS TO MONGOLIA
The freight services provider DHL Global Forwarding has announced the launch of its new

4. road and multimodal freight services connecting Mongolia to its major European and U.S.
trading partners in less than 20 days. The services support both SMEs and larger enterprises
in industries ranging from mining and automotive to retail, fashion and perishables seeking
to capitalize on Mongolia's return to rapid economic growth and its transition from
commodities to value-added exports.
"Mongolia's economy is rebounding from the mining downturn, further building on its status
as the world's second-largest cashmere producer and a food and agricultural export hub,"
said Kelvin Leung, chief executive officer of DHL Global Forwarding Asia Pacific. “With
Mongolian businesses gaining a growing slice of global market share, supported by an
increasingly solid network of regional Free Trade Agreements, Mongolia's dominant trading
partners also stand to gain from increases in domestic consumption of foreign goods."
Source: DHL
TALKH CHIKHER PLANS FOR GROWTH WITH EXPORT
The bread and pastries maker Talkh Chikher Co.Ltd. is looking toward export amid flagging
sales in economically stressed Mongolia. Net profits fell (Source does not includes figures -
ed] for the first of half of the years, according to a 1 August statement from the company,
although local distribution has doubled. The company said it will target markets abroad for
further growth on the back of its ISO and HACCP standards that it has integrated into its
production.
Talkh Chicker added it has also invested into the expansion of its storage and testing
facilities, as well as the packaging of its products for better market appeal.
Source: Montsame
SUU REPORTS 10.5% PROFITS INCREASE
The Mongolian dairy produce Suu JSC has reported a 10.5 percent increase in profits for
the first of the year compared with the same period in 2015. Factors that contributed to
the increased profits totaling MNT1.6 billion included new packaging for its creamy yogurt,
an expanded fleet of trucks that reduced operational costs and a split in shares that
resulted in greater liquidity and a 50 percent increase in its market value.
Source: Zuunii Medee
BUDAPEST OFFERS EUR25 MN CREDIT TO ULAANBAATAR
A Hungarian company [Source does not include the name -ed] has offered EUR25 million in
credit to Ulaanbaatar for enhancing the city’s water and sewage facilities. Ulaanbaatar
Mayor S. Batbold received the proposed credit deal to help the capital manage urban
development in a meeting with the deputy mayor for finance of Budapest. The financing
from the Budapest-based company would be used for the purchase of goods for bus
fabrication factory, flood gates for the Tuul river and the construction of new recreational
centers.
Source: Montsame
GOLD PRODUCERS ASSOCIATION CHAIR ADVOCATES FOR 100% PRIVATIZATION OF
ERDENET
Full privatization of the Erdenet copper mine might be the best course for what has
historically been a major revenue earner for the government, according to the head of
Mongolia’s gold mining association. Erdenet was embroiled in large controversy over an
attempt by a private Mongolian company to buy Russia’s shareholding that was announced

5. by former Prime Minister Chimed Saikhanbileg in June. In an interview with newspaper
Udriin Sonin, the director of Altan Dornod Mongol and chairman of the Mongolian Gold
Producers Association, T. Ganbold, said putting equity of the mine into a private
shareholder’s would help rid the company of its poor operations that stem from
government corruption and and the authorities who steal from it. “When the people want
to separate Erdenet from the politicians who embezzle from it, have dishonest tendencies,
and live in four-year political cycles, they are creating this mess for society.”
“Not just 49 percent, but it should be wholly privatized,” Ganbold said about Erdenet’s
ownership.
Source: UB Post
PETER MORROW, AMERICAN WHO LED MONGOLIA’S KHAN BANK REFORM, DIES
James Peter Morrow, an American banker and financial consultant who led the
restructuring of Khan Bank LLC before its privatization, has died. He was 68. Morrow
passed away peacefully next to his family at a hospital in the United States. Morrow served
as chief executive officer of Khan Bank from 2000 to 2010, initially leading a World Bank
and U.S. Agency for International Development project team that restructured the former
Agricultural Cooperative Bank.
At the time of his death, Morrow was a board member at multiple institutions including
XacBank LLC and Asia-Pacific Investment Partners. He helped found the American
University of Mongolia and was its chair for the Board of Trustees. He was also founding
chairman of the Business Council of Mongolia. In 2007, Morrow was awarded the Polar Star
medal by Mongolia’s president for his contributions to the country.
Source: Bloomberg
ECONOMY
MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS
The Bank of Mongolia on 11 August sold USD30 million (out of USD42 million in bids) and
CNY11 million at currency auctions for closing rates of MNT2,161.2 and MNT326.41,
respectively. That day, it accepted commercial banks’ tugrik swap agreement offers for an
equivalent of USD47.7 million. On 10 August, it issued MNT373 billion in one-week bills at a
weighted interest of 10.5 percent.
Source: Bank of Mongolia
MONGOLIA CALLS FOR ECONOMIC ‘CRISIS’ PLAN; BONDS TUMBLE
Mongolia is planning to set up a task force to deal with an “economic crisis’’ that’s led to
slowing growth, a declining currency and a soaring budget deficit, the nation’s finance
minister said. Government bonds due in 2022 tumbled the most on record and the currency
weakened. “We came into a situation where we may not be able to afford to finance
salaries and operational costs of government departments, such as the Mongolian military
who protect our borders and national security, the social and health employees who are in
charge public health, as well as individuals in culture and sport,’’ Choijilsuren Battogtokh
said in a nationally televised address on Tuesday. “We are in a deep state of economic
crisis.’’
The task force will present its plan to the government and the National Security Council in
the coming days, followed by a public announcement, said Choijilsuren, without
mentioning details of the plan. Mongolia has had repeated bailouts from the IMF, the most

6. recent during the global financial crisis in 2009.
Source: Bloomberg
ERDENEBAT GOVERNMENT SUSPENDS ‘GOOD” SOCIAL WELFARE PROGRAMS
Prime Minister Jargaltulga Erdenebat has announced the suspension of four social welfare
programs introduced by the Democrats in the months before the election to put
government spending better in line with spending caps. Programs aimed at providing
allowances to homeowners introducing more efficient energy usage, students, herders and
shareholders of the Tavan Tolgoi coal mine—known as the Good Home, Good Student,
Good Herder,and Good Shareholder programs—have been halted on the basis that the
spending violated Mongolia’s debt management laws.
The programs rolled out last April under the watch of former Prime Minister Chimed
Saikhanbileg. Some critics at the time called out the administration for introducing the
programs as an attempt to buy votes.
Source: Mongolia.GoGo.mn
STATE GROUPS ALLOWED TO PURCHASE ONLY DOMESTICALLY PRODUCED GOODS, SAYS
PM
Prime Minister Jargaltulga Erdenebat says he will introduce a sweeping regulation that will
ban state companies from purchasing imported goods when domestically made alternatives
are available. Announced on 4 August, the order follows strong lobbying from unions and
professional organizations. The groups have also called for industry specific actions, such
as the passage of the Law on the Health of Livestock from the Mongolian Meat Union and
the need policy regulating cohesion in the logistics chain for real estate development from
construction groups.
Source: Montsame
PRIME MINISTER PROMISES TO CONTINUE SUBSIDIZED MORTGAGES, UNIVERSAL
CHILDREN ALLOWANCES
Popular social welfare programs will not be cut as part of Prime Minister Jargaltulga
Erdenebat’s promise to reduce government costs to address the country’s economic
troubles. Prime Minister Jargaltulga Erdenebat has ordered his Cabinet to seek funds to
continue the financing of a universal allowance of MNT20,000 for every child under 18
years old in Mongolia as well as the 8 percent state-subsidized mortgages. He also gave
orders to give extensions to companies that have missed tax payment deadlines and to
introduce preventative measure that would remove any mass flee of foreign cash from
Mongolia.
Source: UB Post
FORMER UB MAYOR INCENSED BY CLOSE OF HOME EFFICIENCY INCENTIVE
While the Mongolian People’s Party attempts to repair the economic situation it’s
7inherited from the last government, two former heads of that Democratic Party led
government have spoken out against its handling of the economy. The MPP have
exacerbated the country’s economic problems in just two days, said former Parliament
Speaker Zandaakhuu Enkhbold and former Ulaanbaatar Mayor Erdene Bat-Uul in a press
conference. They argued against the finance minister’s claim that the government has
USD400 million-plus deficit in its currency reserves when the new government factored in
Mongolia’s swap agreement with the People’s Bank of China. The Democratic government

7. had reported USD1.3 billion in foreign reserves.
Bat-Uul also balked at the close of social welfare program aimed at homeowners
introducing more efficient government utilities consumption. The current government that
program as well as those targeted at students and herders.
Source: Mongolia.GoGo.mn
TUGRUG CONTINUES TO SINK AGAINST U.S. DOLLAR
The value of Mongolia’s local currency continues to sink as the new government attempts
to grapple with the ailing economy. The tugrug depreciated 9 percent against the U.S.
dollar compared on 8 August from the same day in 2015. The Naiman Sharga foreign
exchange market posted a price of MNT2,138 for every dollar compared with between
MNT2,130 and MNT2,145 at commercial bank.
In an address to Parliament, Bank of Mongolia Governor Nadmid Bayartsaikhan said there
was some discrepancy between foreign currency reserves and cash on hand. “The Bank of
Mongolia’s foreign currency reserves equal USD1.27 billion paper, but we’ve exchanged
USD1.6 billion in yuan-tugrug swaps. If we include this in our calculations, Mongolia’s
currency reserves are in a deficit of USD429 million.”
Source: UB Post
MPS RELEASE THEIR INCOME AND ASSET STATEMENTS
All of Parliament’s 76 members have disclosed their income to anti-corruption authorities
following June’s election, which resulted in a landslide victory for the Mongolian People’s
Party. Mongolian law requires all new MPs to submit income statements within 30 days of
their entrance into office. The new lawmakers were sworn in on 5 July.
Source: News.mn
TOURISM MINISTRY TIES COOPERATION WITH INNER MONGOLIA’S XILINGOL PROVINCE
Three of Mongolia’s eastern provinces have partnered with Chinese neighboring Chinese
province Xilingol for tourism. The vice minister of environment, green development and
tourism, Kh. Khuresukh signed the agreement on 21 October. for organizing China tours
between Erenhot and Zamyn-Uud and general cross-border tourism. Representing the
Chinese interests was the governor of China’s Inner Mongolia Autonomous Region.
Source: Montsame
MONGOLIA PLANS FOR MAY 2017 SATELLITE LAUNCH
Mongolian National University expects to launch its satellite able to send transmissions
worldwide and take photos of the country from space. Ten groups of 100 engineers are
working to put up a satellite that will orbit at 400 kilometers into the atmosphere and
transmit data for a minimum of six months with assisstance from Japanese institutions.
The satellite will also transmit traditional Mongolian folk music worldwide and take photos
at a resolution of 100 meters.
The project has an estimated cost of USD200,000, with USD100,000 financed by the
government and the rest from donors.
Source: Udriin Sonin
ADB ON BOARD WITH NEW UB GOVERNMENT FOR URBAN DEVELOPMENT
The Asian Development Bank has signed on with the new Ulaanbaatar administration under
the lead of the Mongolian People’s Party for assistance in urban development. Ulaanbaatar

8. Mayor S. Batbold signed a memorandum 11 August for technical assistance from the ADB
for urban development, including mechanisms for improved local financing and
international investment into infrastructure. “ADB has become one of the key partners of
the UB City in the recent years,” said Batbold.
Source: Montsame
MILLENNIUM CHALLENGE TARGETS WATER RESERVES FOR SECOND-COMPACT FINANCING
The Millennium Challenge Corp. (MCC) has announced plans to roll out a comprehensive
program getting better use out of Mongolia’s water reserves from the Tuul River as part of
its second compact of operations here. MCC will roll out the projects for the program
designed for improving water distribution, water reserves and efficient usage, the deputy
vice president for Europe, Asia, the Pacific and Latin America, Fatema Sumar, told
Environment Ministry officials in a 9 August meeting.
MCC has also agreed to a request from Minister D. Oyunkhorol to research the impact of
outdoor latrines on underground water reserves.
Source: Montsame
NGO TO FINANCE CONSTRUCTION OF NEW NATIONAL PARK
The Ministry of Environment, Green Development and tourism has partnered with an
international environmental group to build a 8.4 hectare park scheduled to commission in
the fall. The Asia Pacific Sustainable Forest Management and Rehabilitation Network has
committed to USD1.3 million in aid for the planing of 7,000 trees as well as the installation
of street lights, park benches, pedestrian and bicycle paths by this October. [Source did
not include further details -ed]
Source: Zuunii Medee
HOW THE AUTO MALL HELPED TURN UB AGAINST THE DEMOCRATS
If you’re wondering how the Democrats lost in Ulaanbaatar despite positive growth over
the last four years, look no further than the giant car park that lies empty and desolate at
the western outskirts of the city. The Auto Mall that opened last year embodies a lot of
the controversy over the government’s moves to relocate homes and businesses to better
manage the sprawling growth of the city. Located at the southern end of Auto Checkpoint
No. 22, the car market was meant to replace trade centers such as Da Khuree that Mayor
Erdene Bat-Uul and his administration said were causing overwhelming traffic congestion.
But car dealers have complained the move has been bad for business, with many dealers
having to sell off their goods for less than what they paid to import them to avoid
bankruptcy. The rent is too high and the location it is too far away for city residents, they
argue.
Source: UB Post
INTERNATIONAL LEOPARD PROTECTORS MEETING STARTED IN DARVI SOUM, KHUVD
AIMAG
International groups interested in the conservation of snow leopards in Mongolia and
around the world gathered at Darvi Soum, Khuvd Aimag on 11 August. Researchers from
Russia, China and the United States arrived in Mongolia for the event, representing
organizations such as the World Wide Fund, Altai Heritage Mongolia and UNESCO.
Source: Unuudur

9. COPPER OUTLOOK DIMS AS 'WALL OF SUPPLY' HITS SLOWING DEMAND
Recent confidence in copper's outlook is fading fast as the impact of Chinese monetary
stimulus wanes and markets focus once more on oversupply, potentially putting prices on
track for multi-year lows. China has accounted for most of the demand growth since the
commodities supercycle started in 2002, while over the same period consumption in the
other parts of the world has stagnated or fallen as economic growth slowed. According to
CRU, Chinese demand for copper, used mostly in power and construction, rose 2.6 percent
in the first half from the same period last year, and global demand grew 1.3 percent. But
without further help, weaker demand growth in China, which accounts for nearly half of
global copper demand estimated at around 22 million tonnes this year, will reinforce
burgeoning supplies.
“There is no real demand growth in China, just more stimulus supporting demand and
copper,” said Christoph Eibl, chief executive at Tiberius Asset Management.
Source: Reuters
CHINA PRODUCER DEFLATION EASES TO SLOWEST PACE IN TWO YEARS
The steep fall in prices afflicting Chinese industrial groups slowed last month to its lowest
rate in almost two years, as the prices of metals and coal started to rebound. China’s
industrial producer price index fell by 1.7 percent in the year to July, government
statistics showed on Tuesday, a relief compared with a 2.6 percent pace the previous
month and lows of 6 per cent deflation in the second half of last year. “Easing deflation
bodes well for corporate earnings, particularly in upstream sectors,” said Larry Hu of
Macquarie Capital, a financial advisory firm.
China’s persistent producer-price deflation has been largely due to slumping commodity
prices. In an economy plagued by industrial overcapacity, corporate over leverage and a
long-term growth slowdown, observers have been questioning how much longer China’s
industrial profit growth can continue. In the long term, however, the uptick in steel prices
is not likely to have a lasting impact on China’s PPI, said Tomas Gutierrez of Kallanish
Commodities. “Steel is generally looking stronger than expected but this is mainly due to
low inventories and sustained exports, not really because of the fight against
overcapacity,” he added.
Source: Financial Times
POLITICS
CABINET FORMS A COUNCIL TO PROTECT INVESTORS’ RIGHTS
Prime Minister Jargaltulga Erdenebat’s government has set out to create a council to
oversee that the rights of investors put forth by international agreements are upheld to
prevent unnecessary disputes with foreign businesses here. The council will operate under
the Cabinet Secretariat expressly for dealing with issues concerning investors’ rights, such
as Khan Resources Ltd.’s arbitration case against Mongolia, which the country was found at
fault and paid a settlement fee to resolve. The Cabinet approved of the council on 3
August.
Source: UB Post
DISMISSAL OF CIVIL SERVICE COUNCIL MEMBERS ILLEGAL, SAY DEMOCRATS
The opposition Democratic Party has balked on the new government’s decision to dismiss
members of council that overseas government activities before the end of their terms. The

10. Mongolian People’s Party (MPP) is making drastic changes to government after taking
office with its return to power. The Parliament speaker and MPP leader Miyeegombo
Enkhbold has received a statement from the Democrats that says their dismissal of
members of the Civil Service Council is unwarranted and illegal before their six-year terms
are up, said the letter.
Separately, Democratic Party leader S. Erdene has claimed that the appointment of the
Sukhbaatar Aimag governor provincial election for Sukhbaatar before a second election
scheduled for October is held is also illegal, among other over reaches of power.
Source: Udriin Sonin
CHINA, MONGOLIA, JAPAN, SOUTH KOREA TO TAKE PART IN BAIKAL DIALOGUE FORUM
The fifth international forum Baikal Dialogue to be held on 15 and 16 September in Ulan-
Ude, Russia is expected to bring together participants from Russia, China, Japan, Mongolia
and South Korea, a spokesman for the organizing committee said on 5 August. “This year,
the forum’s main topic will be international and trans-border cooperation in the interests
of the development of the Baikal region,” the press service of Mikhail Slipenchuk, a
member of the Russian State Duma lower parliament house and one of the would-be
forum’s moderators, said. Russian Far East may attract USD30 billion of private
investments.
Experts will discuss issues of inter-regional and trans-border cooperation, trade-and-
economic and scientific and technical cooperation, and problems of special economic
zones. The annual Baikal Dialogue forum is a platform used to discuss economic
cooperation and environment security of Russia’s Siberia and the Far East, and countries of
the Asia Pacific region.
Source: Russia Beyond the Headlines, TASS
DIPLOMATIC PASSPORT HOLDER RECEIVE 30-DAY VISA-FREE TRAVEL TO MALTA,
CROATIA
Mongolia’s diplomatic passport holders now have visa-free travel to Malta and Croatia for
up to 30 days. The Cabinet Secretariat approved an intergovernmental agreements with
the two countries for the relaxed travel rules on 10 August.
Source: Montsame
NAMBC AND BCM LOBBY AGAINST COSTLY EXPORT POLICY
The North America-Mongolia Business Council (NAMBC) and Business Council of Mongolia
(BCM) have spearheaded opposition to a proposed a new Customs Administration rule that
would require all imports into Mongolia from all members of the World Trade Organization
(WTO) to be accompanied by a formal “Certificate of Origin” (CO). The regulation is
contrary to common international practice and WTO member state practices. Usually, a CO
is required only for imports that seek to enter under reduced or zero tariffs, such as are
provided by a free trade agreement. COs are not required for ordinary entry of goods from
one WTO member to another that are subject only to the normal standard “Most Favored
Nation” tariff.
Previously, Mongolia required a CO only for entry of “hazardous goods.”
Source: NAMBC
RUSSIAN AUTHORITIES NAB DINO FOSSIL SMUGGLERS
Russian authorities have captured one of their citizens they believe was attempting to

11. smuggle dinosaur fossils out of Mongolia, according to Russian media. The suspect was
found carrying two bones, a shoulder and a leg. The incident is still under investigation,
according to the new from Buryatia Republic.
Source: Udriin Sonin
4 UB DEPUTIES APPOINTED
Ulaanbaatar’s new mayor has appointed four deputies who will focus on issues such as
infrastructure development and air pollution. Mayor S. Batbold has appointed P. Bayarkhuu
as the deputy for infrastructure development; J. Batbayasgalan for green development and
air pollution; Sh. Ankhmaa for ger district development and social issues; and D. Enkhtur
for poverty alleviation and labor.
The deputies will receive salaries of MNT900 thousand per month. Expenses covering costs
such as as telephone service and fuel for cars brings the total to MNT2.7 million per month
for each deputy.
Source: Undesnii Shuudan
UB MAYOR FORMS DEPARTMENT FOR YOUTH DEVELOPMENT
Recently installed Mayor S. Batbold has announced a new employment program targeting
Mongolia’s youth. The program will set out to hire at least one unemployed individual in
every household, with a focus on people aged between 16 and 35, or 34 percent of
Ulaanbaatar’s total population. It will be overseen by a new agency called the Department
of Youth.
The government is also taking up another office with similar goals called the Department
for Industry and Innovation.
Source: Montsame
MONGOLIA USING MENTAL ATHLETICS AS A NATION-BUILDING EXERCISE
The class starts simply enough, with a teacher discussing the periodic table of elements—
hydrogen, lithium, sodium—and sketching the atomic differences between them. But this is
not a lesson in chemistry. It’s a lesson in committing scientific fundamentals to memory,
part of a unique experiment in Mongolia to build national intelligence by training youth to
become human computers. At the Mongolian Intellectual Academy, students read at 1,500
words per minute, mentally adding together long strings of numbers, rapidly multiplying
eight-digit numbers without a calculator and flawlessly memorizing the order of a deck of
cards—the discipline’s 100-meter dash—in barely 20 seconds.
They have made Mongolia into an unlikely titan in the obscure world of mental athletics. In
the most recent world memory statistics, nine of the top 50 people are Mongolian. Only
China, with 14, has more. Among junior competitors, eight of the top 10 worldwide today
are Mongolian.
Source: The Globe and Mail
420 PERFORMERS FOLD THEIR BODIES INTO PRETZELS TO SET WORLD RECORDS
More than 400 young performers stretched, bent, folded and pretzeled on stage to set the
Guinness World Record for the largest public contortion exhibit. The nationally honored
contortionist B. Norovsambuu led the 420-member troupe for the 30-minute performance.
Source: UB Post

12. MONGOLIAN JUDO ATHLETE TAKE SILVER AT RIO
Mongolian judoka D. Sumiya won Mongolia’s first medal from the Rio 2016 Olympics.
Sumiya’s win for the women’s 57 kilogram division entitles her to a MNT60 million state
prize and a MNT3 million monthly stipend. Sumiya lost her match against Brazilian
competitor Rafaela Silva.
Mongolian citizen G. Otgontsetseg also took home a medal, winning bronze for the 48
kilogram judo category, but while representing Kazakhstan.
Source: UB Post, Montsame
USA TODAY NAMES MONGOLIA “BEST DRESSED” AT RIO GAMES
When you’re trying to stand out among 200 plus countries, you can’t be drab. You need to
pay homage to your country while also looking stylish and keeping athletes’ comfort in
mind. With those qualities in mind, USA Today lauded Mongolia for its bright, colorful, and
a touch of amazing design on the women’s skirts at the parade for the Opening Ceremony
for the 2016 Summer Olympic Games in Rio, Brazil. It was the first listed in a run down of
the best lookers for the event.
Source: USA Today
PANAMA PAPERS HELPS BREAK NEW REPORTING GROUND IN MONGOLIA
I first heard of ICIJ (International Consortium of Investigative Journalists) in 2013 with the
“Secrecy for Sale” project. News that the Mongolian deputy speaker, Bayartsogt Sangajav,
owned USD1 million in a Swiss bank account caused a major debate in Mongolia. Sangajav
stepped down as speaker but remained a member of Parliament. At the time the story
broke, I was studying journalism at The University of Hong Kong. Before that I had worked
with Sangajav at the Mongolian Ministry of Finance. I found the network and collaboration
of journalists working together to reveal corruption both fascinating and effective.
When the first Panama Papers stories came to our newsroom at MongolTV, we knew there
had to be Mongolian politicians and public officials involved given the sheer volume of the
leak. We learned many politicians and public officials, including a former prime minister of
Mongolia were linked to offshore companies. The Mongolian people are eager for public
hearings or steps to close the practices of the shadowy offshore industry but the change
has yet to come. Until it does, we will be here reporting and telling the stories that
matter.
Lkhagva Erdene is the executive producer of news for MongolTV.
Source: International Consortium of Investigative Journalists
BCM UPDATES:
UPCOMING EVENTS
JOIN BCM’S DELEGATION TO GLOBAL GREEN GROWTH WEEK 2016
Only few days left to register to the Global Green Growth Week 2016 (GGGW2016), which
will be organized at the Jeju International Convention Center, Republic of Korea on 5-9
September 2016. Organized by the Global Green Growth Institute (GGGI), GGGW2016 will
engage high-level officials from government, multi-lateral development banks and
international development agencies, private-sector leaders, and representatives from
academia and non-governmental organizations. Participants will assess green growth
policy, research, partnerships, financing, and technology through GGGW2016 policy

13. dialogues, expert panels and presentations, discussions, capacity building workshops,
country-focused briefings, and technology exhibits.
For more information about the event, please click here or contact BCM at 70114442,
99109887, bayarmaa@bcmongolia.org.
Registration deadline is August 18, 2016.
2016 GERMAN-MONGOLIAN CORPORATE DAYS, 11-12 OCTOBER
GIZ’s Integrated Mineral Resource Initiative (IMRI) and the German-Mongolian Business
Association (DMUV) are jointly organizing the 2016 German-Mongolian Corporate Days
"Made in Germany" on October 11-12, 2016 in Ulaanbaatar.
With more than 400 visitors per day and more than 100 German exhibitors expected, the
German-Mongolian Corporate Days are the most important bi-lateral economic event in
Mongolia. The exhibition’s lecture program covers various disciplines and allows direct
contact with the general public and trade visitors, as well as the decision-makers in
business and government.
Participation in the conference is free of charge, while exhibition booths will be available
for a small fee. Click here for more information or email rebecca.schmuecking@dmuv-
mn.com.
INVEST MONGOLIA 2016 FRONTIER'S 10TH ANNUAL CONFERENCE IN ULAANBAATAR
The “Invest Mongolia 2016” conference will be held at WHERE? In Ulaanbaatar on 5and 6
September. The 11th Asia-Europe Meeting held in Ulaanbaatar and the change of power in
government to the Mongolian People’s Party are expected to improve investor sentiment.
However, the really important issues from now on will be whether the government’s plan
of action for the next four years will be feasible, consistent, friendly and acceptable for
investors. This conference is one the of the largest events in Mongolia, and it serves as a
platform of bringing in people from the government, key industry players, financial
institutions and global investors all in one place where they get a chance to talk about
several socio-political and economic developments from throughout the year.
Registration is free of charge. For further inquiries, email conference@frontier.mn.
BCM members will get 15% discount on Green & Yellow badges.
BCM ADVOCACY NOTES
New Regulations on Certificates of Origin
BCM hosted a consultative meeting regarding soon to be implemented new regulation on
Certificate of Origin on Wednesday, August 3rd. The meeting was attended by 16 people
representing BCM members operating in logistics, import, mining and banking sectors;
other business associations such as Amcham, MNCCI, CEO Club and General Customs Office
official. Key concerns regarding the new requirement asking Original Certificate of Origin
on all imported goods to receive Most Favored Nation (MFN) tariff rate on Customs taxes
were discussed among participants and clarifications were made from the Customs official.
The new regulation will be in force starting October 1st this year. BCM intends to pursue
this issue further and strongly advocate the concerns of business community with the
support of other business associations and other stakeholders.

14. BCM WORKING GROUP NEWS
- Energy and Environment Working Group Meeting on "ENERGY EFFICIENT HEATING &
ROUNDTABLE DISCUSSION" 24 June 2016
- Risk and Legislative Working Groups' Joint Meeting on the "DRAFT AMENDMENT OF THE
LAW ON DISASTER PROTECTION" 16 June 2016
- Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June
2016
- Education Working Group Meeting on “BCM SSUMMIT PROCEEDINGS”, 5 May 2016
- Capital Markets Working Group Meeting on “OYU TOLGOI UNDERGROUND PROJECT
FINANCING”, 5 April 2016
- Tax Working Group Meeting on “VAT LAW”, 2 March 2016
JOB VACANCIES AT MEMBER ORGANIZATIONS
- IFC is hiring Investment Officer. Deadline for application: August 16, 2016. For more
information please click here
- Areva Mongol is hiring French Language Translator. For more information, call (976)
320698 ext-115
Please click here to view full list of Job Vacancies at member organizations.
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- Orchuulga 24 is providing 15% discount on written translation services to BCM Members
- MNC HD TV offers BCM members 20% discount from the fee to be showcased in their “The
Story of Business/Бизнесийн түүх” TV program.
- 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.
Please click here to view full list of Member-to-Member special offers & Benefits.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
BCM Monthly Meeting, 30 May:
- B. Byambasaikhan, Chairman, BCM - “BCM Summit Proceedings”
- Ch. Mergen, Executive Director, BCM - "BCM Report"
- Anthony Woolley, Senior Associate, Hogan Lovells - “CIT Draft Law Update”
- D. Bat-Oktyabri, Director APAC, Techstars - “Start-up community in Mongolia”
- Michael Morrow, Executive Director, MACU & Ya. Enkhee, Owner & Partner at Gandan
Live House, Mexikhan & Guantanamera Restaurant - “It’s all about wine & cheese” event
- New Members Introduction

15. Please click here to view full list of Presentations.
MONGOLIA REPORTS:
- ADB, “Asian Development Outlook 2016: Asia’s Potential Growth” (forecasts of the next 2
years for the 45 economies in Asia and the Pacific including Mongolia)
- Invest Mongolia, “Your Guide to Invest in Mongolia” 2016
- BTI, “Mongolia Country Report” 2016
- World Bank, “Doing Business: Economic Profile of Mongolia 2016"
Please click here to view full list of Reports.
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]
May 31, 2016 *1.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.8% y-o-y; 3.2% Core - Ulaanbaatar City, May 31, 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]
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]
May 6, 2016 10.50% {source: Mongol Bank}

16. CURRENCY RATES – 12 AUGUST 2016
Currency Rate
U.S. dollar USD 2,152.07
Euro EUR 2,403.00
Japanese yen JPY 21.24
British pound GBP 2,800.49
Hong Kong dollar HKD 277.47
Chinese Yuan CNY 324.06
Russian Ruble RUB 33.04
SouthKorean won KRW 1.96