BCM NewsWire Issue 443

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 443 – September 9, 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:
• Erdene commences Q3-Q4 drilling campaign
• Aspire receives interest from China Development Bank
• Baganuur seeks investment for USD870 mn expansion
• UBTZ raises ticket fairs
• GoGo News Agency joins Asian News Network
• Udriin Sonin joins global network
• Terracom raises AUD1.1 mn
• Discover Mongolia kicks off
• infrastructure investment takes focus at Invest Mongolia
• Erdenes TT appoints new CEO
• Mining minister closes down mines for polluting Orkhon river
• Tavan Bogd to buy remaining shares in subsidiary for MNT888.6 mn—CORRECTION
Economy:
• Mongol Bank: FX auction; currency swaps
• Banks band together to eliminate more than half of their bad loans
• Russian minister offers energy export deal to replace hydro plant
• Hungary offers $28 million for sewage, public transport in UB
• Mongolia-Canada cooperation documents focus on trade and investment
• Mongolia ranks 33rd in Aviation Price Index
• N. Korean laborers struggle in Mongolian recession
• MNT1 bn worth in assets held by UB labeled “missing” in registry
• UB police to launch electronic network for information sharing
• Student bus passes in limited supply
• Asian ‘energy super ring’ opens up new horizons for economic growth
• World Bank donates vehicles to deliver animal vaccines
• Mongolia’s swan lake all dried up
• Coking coal over $150 a ton
• Have rumors of the iron ore market's death been greatly exaggerated?
• Fake-stan—EDITORIAL
Politics:
• Tax hikes withdrawn

2. • President vetoes parliamentary resolution on withdrawing bills
• Joint pension law up for withdrawal
• Mongol Banks’ new Monetary Policy Committee holds first meeting
• Mongol Bank appoints deputy governor
• Mongolian FM calls for ‘politically sound’ economic ties with Russia
• Task force formed for protecting investors’ rights
• Fake tugrik and yuan banknotes seized
• MPP orders to track down leak raises concerns of media persecution
• Elbegdorj sides with wrestling coaches’ protests at Olympics
• Workshop focuses on increasing women’s roles in Asia-Pacific security
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.
SPONSORS
Khan Bank Wagner Asia Automotive
Mongolian Business Database International SOS
BUSINESS
ERDENE COMMENCES Q3-Q4 DRILLING CAMPAIGN
Erdene Resource Development Corp. has commenced its third-and fourth-quarter 2016
drilling campaign at its fully owned high-grade gold projects in southwest Mongolia, the

3. copper-gold explorer said in a 6 September statement. Drilling commenced on 5
September at the Bayan Khundii gold project, and will be followed by drilling at the Altan
Nar Gold-Polymetallic Project, 19 kilometers to the northwest of Bayan Khundii. The first
phase of the campaign will consist of approximately 5,000 meters of drilling designed to
test the boundaries of the high-grade gold zones within the main mineralized trend at
Bayan Khundii.
“Our ongoing drill program has been designed to test these targets and better define the
limits of the main mineralized zones,” said said Peter Akerley, Erdene’s President and
chief executive officer. “We anticipate the first batch of results to start arriving in early
October, with results continuing throughout the fourth quarter of 2016.”
Source: Erdene Resource Development Corp.
ASPIRE RECEIVES INTEREST FROM CHINA DEVELOPMENT BANK
Aspire Mining Ltd. has received an expression of interest from China Development Bank
(CDB) to fund up to 75 percent of the engineering, procurement and construction (EPC)
contract cost to build the Erdenet-to-Ovoot Railway in northern Mongolia. Originally
planned to connect Aspire’s metallurgical coal projects to Mongolia’s existing rail
infrastructure, the Erdenet-to-Ovoot line was recently included in plans for a Northern Rail
Corridor, which would join Chinese and Russian rail networks via Mongolia.
A 30-year rail concession was granted to Aspire’s rail subsidiary Northern Railways LLC in
August 2015 by the Mongolian government to progress the development of the railway.
Source: World Coal, Proactive Investors
BAGANUUR SEEKS INVESTMENT FOR USD870 MN EXPANSION
Mongolia will be seeking to raise USD160 million to finance a USD870 million expansion at
the Baganuur coal mine, according to the head of Mongolia’s mining and infrastructure
portfolio holder. Erdenes Mongol Chief Executive Officer Bayanjargal Byambasaikhan, met
with the heads of international lenders to present a feasibility study compiled by
Australia’s RungePincockMinarco and Mongolian-owned Bal Chuluu for the project on 2
September.
Ernst & Young, one of the world’s top-four audit firms, has audited the financial
statements from the last three years, said Byambasaikhan. The feasibility study was
financed by a USD2.6 million grant from the World Bank.
Source: Unuudur, Mongolian Economy
UBTZ RAISES TICKET FAIRS
The Russia-Mongolia-owned railway operator Ulaanbaatar Railways JSC (UBTZ) has
increased the price of its railway ticket for the Ulaanbaatar-Beijing route by more than
two-thirds following operational losses and a sharply depreciated currency. Railway tickets
to Beijing will start at MNT255,100 compared with MNT178,000, while tickets to to Erlian
(the border town to China) have increased by by MNT60,000, by 30,000 to Ulan-Ude in
Russia’s Buryatia Republic, and by MNT100,000 to Moscow. “Authorities made the decision
because the company operated at loss,” said a representative of the company.
Source: Unuudur
GOGO NEWS AGENCY JOINS ASIAN NEWS NETWORK
GoGo News Agency has partnered with international media group Asian News Network
(ANN) to deliver news and content about Mongolia for an international audience. A signing

4. ceremony for the cooperation agreement inked by G. Gantuya, the chief executive of
GoGo parent company Mongol Content LLC, and the director of KAS Media Programme Asia,
Torben Stephan.
Founded in 199, ANN includes 21 media companies throughout Asia, including the Daily
Star, China Daily, the Jakarta Post, and Japan News.
Source: Mongolia.GoGo.mn
UDRIIN SONIN JOINS GLOBAL NETWORK
The local newspaper Udriin Sonin has joined a media network with 500 affiliates across 150
countries. Project Syndicate has enlisted Udriin Sonin for content for the next 17 years.
Source: Udriin Sonin
TERRACOM RAISES AUD1.1 MN
TerraCom Ltd. has finalized a AUD1.1 million (USD844,360) placement to three Eastern
Europe-based private investment companies. The deal, which was led by Light Speed
Commercial Inc., closed out at a final issue price calculated at USD0.0206469 for about
55.4 million fully paid ordinary shares. Included in the placement are two tranches of 15
million options with a strike price equal to USD0.03 and USD0.045, respectively and with
an expiry date of 31 August 2018 for both.
Source: TerraCom Ltd.
DISCOVER MONGOLIA KICKS OFF
Investors had a lot to catch up at this year's Discover Mongolia mining investors forum with
a new government and projects to look toward. The investors forum was held on 8 and 9
September at the Corporate Convention Center in Ulaanbaatar where junior miners
demonstrated how they outperformed in Mongolia on the back of strong exploration results
versus their counterparts around the world in 2016, while the Oyu Tolgoi mine expanded
underground. Attendees also learned how the hand over of power in government to a
single political party at the 2016 general election, the Mongolian People's Party, has given
many hope that it will lead to political stability for the country.
Source: Mongolia.GoGo.mn
INFRASTRUCTURE INVESTMENT TAKES FOCUS AT INVEST MONGOLIA
Developing infrastructure as a key figure in Mongolia’s economic growth was the main
topic at the Invest Mongolia International Conference in Ulaanbaatar this week. The
conference brought out 1,100 guests, including 200 from abroad, to the Shangri-La on 5
and 6 September, where panelists discussed the current economic troubles, the pros and
cons of a bailout from the International Monetary Fund and the looming maturity dates for
sovereign debt. A boost to construction in China has triggered the revival of the raw
materials’ market, said John Johnson of CRU Group. but there is still oversupply of raw
materials and the economic situation is in an unclear condition.
During a panel moderated by Graeme Knowd, managing director of Moody’s Investors
Services, panelists noted the responsibility held by politicians from both the Democratic
Party and Mongolian People’s Party for today’s low foreign investment figures and
ballooning debt.
Source: Mongolia.GoGo.mn, 2, Montsame

5. ERDENES TT APPOINTS NEW CEO
State-owned miner Erdenes Tavan Tolgoi LLC has appointed D. Ariunbold as the new
executive director. Appointed by the board last week. Ariunbold is a former director of the
Montsame news agency from 2008 to 2008. His education background is a MA in
management and technical studies from Charles Sturt University in Australia.
Source: Montsame
MINING MINISTER CLOSES DOWN MINES FOR POLLUTING ORKHON RIVER
A river runs red in Arkhangai Aimag, which is why the minister of environment has ordered
the shut down of 15 companies, including miners. The river was flowing in a red tint when
Minister D. Oyunkhural gave the order. Only two companies at Tsenkher Soum have
completed their environmental papers, a mining plan and feasibility study, he said, and
only one company has paid an up-front fee for land rehabilitation. “These companies are
keep ignoring government agencies' demand to obey laws,” said Oyunkhural.
Oyunkhural said a meeting would be organized at Tsenkher by the end of the week where
locals and municipal authorities could discuss the issue.
Source: Udriin Sonin, Montsame
TAVAN BOGD TO BUY REMAINING SHARES IN SUBSIDIARY FOR MNT888.6 MN—
CORRECTION
Tavan Bogd Trade LLC will purchase the 32.3 percent of shareholdings held by investors in
its subsidiary company Gazar Suljmel JSC. It’s tender offer is to buy 21,111 shares from
shareholders at MNT42,091.00 per share until 25 September.
Corrects “Tavan Bogd launches 888.6 mn share buy back,” adding that the purchase is for
the subsidiary Gazar Suljmel JSC, not Tavan Bogd Trade; and that the offer will run until
25 September, not 9 September.
Source: Tavan Bogd LLC
ECONOMY
MONGOL BANK: FX AUCTION; CURRENCY SWAPS
The Bank of Mongolia on 8 September sold CNY5 million to commercial banks at currency
auctions (out of bids totaling USD24.3 million and CNY59 million) for a closing rate of
MNT332. Also that day, it accepted an equivalent of USD75.2 million in swap agreements
with banks.
Source: Bank of Mongolia
BANKS BAND TOGETHER TO ELIMINATE MORE THAN HALF OF THEIR BAD LOANS
Commercial banks are pooling together funds to clear 60 percent of all bad loans they
hold. The banks have reportedly created a joint fund with the aim of eliminating bad debt
in the country. Outstanding credit totaled MNT12.1 trillion as of last July with 8.5 percent
non-performing. Most of the bad debt was concentrated in the mining sector, with mining
loans making up 44 percent of the non-performing portfolio. That was followed by 14
percent by wholesale and retail borrowers, 7 percent from agriculture, 6 percent in
construction and 3 percent in real estate.
Source: Unuudur

6. RUSSIAN MINISTER OFFERS ENERGY EXPORT DEAL TO REPLACE HYDRO PLANT
Russia’s energy minister has proposed a new scheme for exporting energy to Mongolia as a
concession for Mongolia to cancel plans to develop a new hydro-power plant that some
groups say will threaten water levels at Lake Baikal in Siberia. Russian Minister Alexander
Novak said he could make the sale of energy at market prices to Mongolia if it agreed to
halt plans to build the Egiin Gol hydro-power. Green Peace and Russian officials as high up
as President Vladimir Putin have questioned the wisdom behind the project since Egiin Gol
feeds into the Selenge River, which in turn flows into Baikal.
Source: Unuudur
HUNGARY OFFERS $28 MILLION FOR SEWAGE, PUBLIC TRANSPORT IN UB
Hungary has offered EUR25 million (USD28.1 million) in aid to fund Ulaanbaatar's urban
development. Financing from the Exim Bank of Hungary would go towards renovating the
city's sewage treatment center and building an additional facility, in addition to a bus
assembly factory and bus stations, an online platform for encouraging the trade of organic
foods. Ulaanbaatar's deputy mayor for infrastructure development, P. Bayarkhuu, signed a
memorandum of cooperation for the low-interest credit during the visit by Hungary's vice
minister of foreign affairs and trade, Balint Tombor.
Source: Montsame
MONGOLIA-CANADA COOPERATION DOCUMENTS FOCUS ON TRADE AND INVESTMENT
Canada has pledged CAD55.4 million in aid to Mongolia for improving the management of
its natural resources. The money would be used to promote transparency in governance
and improve the competitiveness of mineral resources. Also included in the program is
funding to improve the competitiveness of Mongolia's yak wool and cashmere products and
bolster food security.
Canada's speaker of the House of Commons, Geoff Regan, signed for the deal while paying
an official visit to Mongolia. Also during his visit, the speaker reviewed the activities of
projects funded by Canada and met with government officials including President Tsakhia
Elbegdorj.
Source: Montsame
MONGOLIA RANKS 33RD IN AVIATION PRICE INDEX
Mongolia ranked 33rd in the world for the best value for flights, according to a new index
from the online travel agency Kiwi.com. The research, which took into account over one
million international and domestic journeys, found that India offered the least expensive
flight prices per 100 kilometers of travel, whilst the United Arab Emirates clocked in with
the most expensive tickets. Mongolia ranked in position 33, with an average flight cost of
USD13.60 per 100 kilometers of travel, factoring in both domestic and international
journeys. The least expensive country, India, averaged a flight cost of USD3.25 per 100
kilometers. At the other end of the ranking, United Arab Emirates calculated at a cost over
30 times higher, at USD105.71.
Source: Kiwi.com
N. KOREAN LABORERS STRUGGLE IN MONGOLIAN RECESSION
Mongolian construction firms that employ North Korean laborers have suspended
operations as it faces a severe economic slow down. Managers dispatched from North
Korea have stepped up and hired their fellow countrymen as workers in a bid to earn

7. foreign currency despite the downturn. “North Korean business managers have been
affected by the worsening economic situation here in Mongolia,” said a source in Mongolia
with knowledge of the operations.
This new trend indicates that the foreign currency earning managers from North Korea are
skating on thin ice. Even though the stated goal is to earn money for the regime,
contacting South Koreans is considered a security risk and is strictly forbidden. "The
laborers tend to be reclusive and tend not to contact foreigners,” said a Mongolian manger
at a work site. They don’t even deal directly with me.”
Source: DailyNK
MNT1 BN WORTH IN ASSETS HELD BY UB LABELED “MISSING” IN REGISTRY
The city of Ulaanbaatar holds a combined property value of MNT1.2 trillion according to a
recent data, including over MNT1 billion . The figure was compiled from a registry of
government property registered once every four years. Ulaanbaatar has 733 properties
registered, including 206 kindergartens, 110 schools, 26 medical organizations, 129
household clinics, 188 state organizations, 68 industrial facilities. It also includes six
jointly owned assets. Total land covered 32,596 hectares at 1,847 locations.
Also included in the registry “missing property” nine buildings worth a total MNT782
million, 17 vehicles worth MNT533 and equipment worth MNT74.5 million.
Source: Unuudur
UB POLICE TO LAUNCH ELECTRONIC NETWORK FOR INFORMATION SHARING
Ulaanbaatar has unveiled a new program to integrate data held among 152 police
committees into a single network. The program will roll out over the next two in two
stages, with the first focusing on building the network while compiling knowledge about
known criminals and items held at pawn shops. In 2017, authorities will work to create
software analyzing data as well as for sending data and building a platform for devices.
Source: Undesniii Shuudan
STUDENT BUS PASSES IN LIMITED SUPPLY
The deadline for the limited supply of bus passes granting student free public transport has
passed this week. Bus passes for the 2016-2017 school year for extensions will be handed
out from 12 to 18 September, according to the cards provider, Ulaanbaatar Smartcard Co.
Ltd. New cards will cost MNT3,600 for new and MNT1,000 for extensions from students who
received their card last year.
Last year, Ulaanbaatar Smartcard issued cards to 12,400 students out of 13,200 requests,
according to L. Amarjargal, a specialist at the Department of Labor’s student program.
“We’re planning to give extension and re-issuance for some 12,000 students from 32
institutions,” he said.
Source: Montsame
ASIAN ‘ENERGY SUPER RING’ OPENS UP NEW HORIZONS FOR ECONOMIC GROWTH
A project to connect the energy grids of Russia, Japan, China, South Korea and Mongolia
took center stage during Friday’s session of the Eastern Economic Forum in Vladivostok.
Facing a growing demand for energy, the Asia-Pacific countries are trying to diversify their
energy resources, and here Siberia and the Russian Far East, with their huge deposits of
natural gas, oil and surplus electricity, could be put to very good use in a variety of joint
energy projects. An Asian energy ring to bring together the energy systems of Russia,

8. Japan, South Korea, China and Mongolia is one such project that was discussed in
Vladivostok.
In late March, Russia’s Rosseti Company, the China State Grid Corporation, the Korea
Electric Power Corporation and Japan’s Softbank Group agreed to establish and
interconnected energy system to encompass the entire region of Northeastern Asia. “If the
sides have interest and benefits, the project has chances to be implemented,” said Russian
Deputy Energy Minister Anton Inyutsyn.
Source: Sputnik
WORLD BANK DONATES VEHICLES TO DELIVER ANIMAL VACCINES
The World Bank has delivered five Kia Bongo vehicles for transporting vaccines for
livestock across Mongolia, which is nearly as big as Alaska. The specially-equipped cars are
suitable for Mongolian roads and climate for delivery of animal vaccines to herders in
Zavkhan, Bayankhongor, Gobi-Altai, Khuvsgul and Arkhangai Aimag.
Source: News.mn
MONGOLIA’S SWAN LAKE ALL DRIED UP
Lake Ganga of the Dariganga steppe has dried up, leaving swans without a pond to bath in
this autumn. Each fall, Lake Ganga welcomed a thousand swans, which made an
extraordinary attraction for national and international tourists. Out of the 21 springs that
fed the lake, only two survived.
The lake covers only four square kilometers but used to be home to endangered species of
birds, such as whooper swans and white-naped cranes. But Locals had observed the drop in
water levels in recent years but little action was taken. The lake is a drinking source to up
to 200,000 heads of livestock in addition to the birds, and the water body has suffered
from desertification and higher-than average temperatures. This year, rainfall only was
short of even 20 percent of that from years past.
Source: Montsame
COKING COAL OVER $150 A TON
Coking coal prices have continued their astonishing push higher, rising to more than
USD150 a ton as China cuts back on production and steel demand remains strong. As of
yesterday, spot prices for Australia’s second biggest export, after iron ore, were up 51
percent since the start of August, and the price has not fallen during any session since 2
August. On Monday night, premium coking coal prices rose USD11, or 8 percent, to a three
and-half-year high of USD152.20, continuing a run up from below USD80 in March. The
gains have come after China cut annual statutory working days for coal mines from 330 to
276 to ease overcapacity, while scheduled maintenance hit Australian production and
Chinese steel demand continues to grow.
BHP Billiton, the world’s biggest exporter of coking coal thanks to its Queensland mines,
does not expect the price gains to last pas the end of the year as new supply comes online.
“The price we’re really surprised at, versus six months ago, is actually metallurgical
(coking) coal,” BHP’s Singapore-based markets vice president Huw McKay told reporters.
“We understand that what’s going on in met coal, very clearly, is a supply side shock.”
Source: The Australian
HAVE RUMORS OF THE IRON ORE MARKET'S DEATH BEEN GREATLY EXAGGERATED?
Rumors of the death of the iron ore market appear to have been greatly exaggerated. The

9. "big three", namely Rio Tinto, BHP Billiton and Brazil's Vale, registered minimal year-on-
year growth in production rates in the first six months of this year. But production from
their low-cost operators is only going to rise going forward from here. And it will do so just
as demand in China starts slowing as the mini stimulus package initiated by Beijing at the
start of the year loses momentum and the country starts to make good on its pledge to
eliminate capacity in its leviathan steel sector.
What the figures don't tell you is the breakdown by iron-ore type. The lift in domestic
steel prices has boosted Chinese mills' bottom line. That has not only allowed buyers to
become more choosy but has incentivized a new acceleration in steel production rates, as
it always does in China.
Source: Reuters
FAKE-STAN—EDITORIAL
Authorities have concluded that the the country is in crisis, but the crisis our country faces
today is not an economic one—but one of governance. Stealing from public funds, the
misuse of power, and serving personal interests while holding public offices have been
commonplace in Mongolia since the 1990s. The biggest cases of corruption started with the
privatization of state properties, continued with the trading of land in Ulaanbaatar,
reached a high through mining license trade, and continue today with the distribution of
bond funds.
During an economic crisis, taxes should remain the same, ore even lower for companies
that have increased employment—not hiked as the government has proposed. Increasing
taxes will chase away the skilled workforce and shut the door on foreign investment. A
nation where government officials eat and drink but make the people pay for everything
should be called “Fake-stan.”
Dambadarjaa “DeFacto”Jargalsaikhan is an independent economist and host of the TV
show Interview DeFacto and the radio show Radio DeFacto.
Source: UB Post
POLITICS
TAX HIKES WITHDRAWN
The Jargaltulga Erdenebat government has withdrawn its new tax bills that sought to
increase the income tax, the royalty on gold and more. The Cabinet Secretariat voted to
recall the proposed legislation on 6 September following a decision by a caucus held by
Erdenebat's Mongolian People's Party. The withdrawn legislation includes a 25 percent tax
on income for anyone earning more than MNT30 million a year; a tax on savings accounts
holding more than MNT20 million; a sliding tax for vehicles based on emissions and fuel
capacity; 20 percent tax on tobacco and alcohol products, import duties on spare parts
for vehicles; and a 50 percent tax on apartment real estate larger than 150 square meters.
One of the bills that was abandoned sought to repeal a discount on gold royalties set until
2019 that reduced a maximum tax and royalty from 10 percent to a flat 2.5 percent.
Source: Mongolia.GoGo.mn
PRESIDENT VETOES PARLIAMENTARY RESOLUTION ON WITHDRAWING BILLS
President Tsakhia Elbegdorj has vetoed a parliamentary resolution for the withdrawal of
bills that aimed to reform the judicial system in Mongolia. “Withdrawing these already
approved bills under the parliamentary resolution violates the principle of respecting laws

10. and might create a wrong practice shaking the continuity of the state,” said Elbegdorj on 6
September. The withdrawn bills, which were submitted to Parliament under former Prime
Minister Chimed Saikhanbileg, were the Law on Criminal Procedure, Law on Enforcement
Actions, the Law or Prosecution, the Law on the Performance of Court Decisions and the
Law on Combating Domestic Violence.
For the domestic abuse law, the Justice Ministry has sent to the Cabinet a revised law at
the president's order that counts domestic abuse as a felony.
Source: Montsame, 2, 3
JOINT PENSION LAW UP FOR WITHDRAWAL
Mongolians will no longer be able to collect on their deceased spouses' pensions if a new
bill from the Ministry of Finance is passed. Finance Minister Battogtokh Choijilsuren
proposed to annul the law after reporting that it has received numerous messages from
widows that they did not want to collect on the pensions of their deceased husbands and
wives. The law was originally adopted so widowed husbands and wives that never worked
or paid into social insurance would have a safety net to fall back on.
"The law on joint pension has led criticism due Mongolians' superstitions and belief,” said
Choijilsuren. “Elders are not interested in getting the pension of their deceased spouse.”
Source: Mongolia.GoGo.mn
MONGOL BANKS’ NEW MONETARY POLICY COMMITTEE HOLDS FIRST MEETING
The central bank's newly formed Monetary Policy Committee discussed how to move
forward after increasing the policy rate that sets interest rates in Mongolia by 450 basis
points in its first meeting this week. The group plans to meet again to finalize the Bank of
Mongolia's guidelines for its monetary policy going for 2017. The policy is expected to be
voted on by Parliament before 1 October.
The committee is made up of 14 members, including nine from the Bank of Mongolia and
five independents.
Source: Mongolia.GoGo.mn
MONGOL BANK APPOINTS DEPUTY GOVERNOR
The Bank of Mongolia has appointed B. Lkhagvasuren as its deputy governor. Currently
chief executive officer of Savings Insurance Corp., he is a former researcher for the State
Planning Commission at the Academy of Sciences (1989-94); economist and senior
economist for the Bank of Mongolia (1994-1999, 2000-2013) and advisor to the World Bank
(1999 2000).
Source: Udriin Sonin
MONGOLIAN FM CALLS FOR ‘POLITICALLY SOUND’ ECONOMIC TIES WITH RUSSIA
Mongolia has excellent political relations with Russia as there are no unresolved issues, but
in terms of economic and trade cooperation the two nations have not tapped their full
potential, according to Foreign Minister Munkh-Orgil Tsend. “We are involved in active
discussions with Russia and the People’s Republic of China on integrating our own grid
systems into a system that will help us both economically and industry infrastructure
wise,” said Munkh-Orgil at the Second Eastern Economic Forum Vladivostok, Russia on 2
and 3 September .
Munkh-Orgil also said Mongolia would consider its recent invitation to join the Eurasian
Economic Union. “That’s a big integration process that is taking place on this big

11. continent. And for Mongolia it is very important and it is very much in our national
interests to be linked and to be involved as much as possible with this integration
processes.”
Source: RT
TASK FORCE FORMED FOR PROTECTING INVESTORS’ RIGHTS
Foreign investors will have a new body to turn to after they’ve arrive at roadblocks when
trying to do business in Mongolia, according to Justice Minister S. Byambatsogt.
Byambatsogt on 5 September said he would oversee the new task force, which will accept
complaints until 15 September. “Foreign investment has lowered by 130 times in last for
years,” said Byambatsogt, adding that stable policies was fundamental to recapturing that
investment.
One major issue is the 200 foreign investors that are prohibited from leaving the country.
Travel bans have also been put on 5,000 Mongolian citizens.
Grievances can be sent by email at medeelel@moj.gov.mn, or call (51)-263682.
Source: Mongolia.GoGo.mn
FAKE TUGRIK AND YUAN BANKNOTES SEIZED
Authorities have put out a warning to look out for counterfeit 20,000 tugrik and 100 yuan
notes that are in circulation. Concerns emerged after the fake notes were discovered at
two banks in Ulaanbaatar. Police in Khan-Uul and Bayangol districts have already opened
an investigation to track down the source of the notes.
Source: News.mn
MPP ORDERS TO TRACK DOWN LEAK RAISES CONCERNS OF MEDIA PERSECUTION
Officials from the Mongolian People’s Party (MPP) have asked authorities at the General
Intelligence Agency to seek out the source of a leak to press that reported on a closed-
door session meeting last week. “Our members` speech, opinion and conclusion at the
closed meeting have been published on Ardiin Erkh newspaper in the 2 September issue
under the title “What did the MPP talk about behind closed doors,” reads the request to
the GIA. “Please investigate how information was lost because state information privacy
and security has been compromised.”
The notice comes amid concerns of violations against press. That includes a travel ban and
investigation into one reporter who was investigating the links to the so-called Panama
Papers that disclosed the names tied to overseas accounts with Mongolian officials.
Source: Udriin Sonin
ELBEGDORJ SIDES WITH WRESTLING COACHES’ PROTESTS AT OLYMPICS
President Tsakhia Elbegdorj has spoken in support of the coaches who through of their
clothes and shoes in protest of what they say was an unfair decision by the coaches against
a Mongolian wrestler. “It was a fight against corruption and for justice in sports,” he said,
and then wished them more success in sports.
Source: Mongolia.GoGo.mn
WORKSHOP FOCUSES ON INCREASING WOMEN’S ROLES IN ASIA-PACIFIC SECURITY
Fifty-five participants from the Asia-Pacific region representing military, law enforcement,
and civilian government agencies gathered for a workshop on how women can have a wider
role in security for the Asia-Pacific region. Questions centered on institutional

12. impediments that limit the pool of female candidates for security sector roles, hinder their
entry into related fields, limit their advancement and prevent integration of their
perspectives. Participants—23 men and 32 women—hailed from 14 countries and regions to
include Bangladesh, Sri Lanka, Nepal, Burma, Indonesia, the Philippines, Vietnam, Taiwan,
Japan, Mongolia, the Federated States of Micronesia, Palau, Papua New Guinea, and the
United States (Guam).
Source: Defense Video Imagery Distribution System
BCM UPDATES:
UPCOMING EVENTS
BCM’S ENERGY & ENVIRONMENT WORKING GROUP MEETING, 15 SEP 2016
The session will take the form of a facilitated discussion between a panel of government
representatives and BCM members, exploring the new Government's agenda for Energy and
the Environment issues. Panel will be represented from (i) UB City Mayor’s Office, (ii)
Ministry of Energy, and (iii) the Ministry of Environment and Tourism. As we prepare the
panel discussion topics, we invite you to submit potential questions or issues that you
would like to hear the panel address. Please send us your suggestions by COB, 2 Sep 2016,
to Bayarmaa@bcmongolia.org.
KSS: “CHANGE MANAGEMENT DISCUSSION,” 16 SEPT.
The next BCM Knowledge Sharing Session will be held on Friday, 16 September for the
topic “Change Management Discussion.” BCM’s partner organization Dale Carnegie Training
Mongolia will participate in the free, members-only session, which will be conducted in
Mongolian language.
For more information, call 976-11-317027.
ENERGY CONSERVATION & ENERGY EFFICIENCY SEMINAR BY TUV RHEINLAND
Observe Consulting will host the "Energy Conservation & Energy Efficiency" seminar on
Monday, 29 September 2016. The objective of this seminar is to share knowledge and
information to participants about implementation of the Energy Conservation law,
requirements for Significant Energy Users, and how to establish and manage energy
management system according to ISO 50001 compliance. The three main topics for
discussion will be (i.) “Energy Conservation & Energy efficiency, Implementation of EnMS
ISO 50001 and its benefits”; (ii.) “Introduction of CSQ (Certified Service Quality) by TUV
Rheinland”; and (iii.) “Renovation of ISO’s new MS standards.”
The Business Council of Mongolia is a supporting organization of this event and will be
organized with collaboration of leading technical consluting and solutions firm TUV
Rheinland (Germany). BCM members will receive a 20 percent discount.
For more information and to register, call Observe Consulting at 99071745 or 99100879, or
email info@observeconsulting.com.
BRAZIL-MONGOLIA BILATERAL BUSINESS MEETING, 19 SEPTEMBER
BCM Members are invited to attend the "The Brazil-Mongolia 1st Bilateral Business
Meeting” on Monday, 19 September at 17:00pm at the Executive Excellence International
Business Center (EEIBC). The event will include a networking reception with Wines and
Canapes, a fundraising auction for a Neymar Jr. signed T-shirt; product tasting of Brazilian

13. goods, and more.
The event is organized by the Mongolian Embassy in Brazil, Chamber of Commerce Brazil-
Mongolia, Quintessentially Lifestyle, and in association with the Business Council of
Mongolia. EEIBC is the Venue Sponsor.
The event will be in English, Mongolian and Portuguese. The registration fee is
MNT50,000mnt for BCM members and MNT100,000 for non-members. Guests will be
limited. Please register by email at saruul@bcmongolia.org with your name, job position,
company and contact information by 15 September.
BEST PRACTICES IN PROJECT MANAGEMENT CONFERENCE, 7-8 OCT.
PMI is hosting its third international workshop and conference with its theme “Best
Practices in Project Management” at the Blue Sky Tower & Hotel in Ulaanbaatar on 7 and 8
October. All engaged in the Project Management profession; Business Analysts; those
wanting to learn more about Project Management; and those interested in the latest tools
and techniques should attend for 12 workshops, networking opportunity and more.
Continental lunch and refreshments at breaks are included with registration fees of
between MNT50,000 and MNT175,000 per attendee. BCM members will receive a 20
percent discount. For more information, visit pmimongolia.mn. Phone calls can be made to
9901-7317, 9994-7237; or email registration@pmimongolia.mn.
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.
BCM ADVOCACY NOTES
VOICE OF BUSINESS COMMUNITY RAISED & DELIVERED TO GOVERNMENT OF MONGOLIA
A detailed multi-media PR plan promoting the 1st Annual BCM Summit Proceeding was
developed with the main goal to inform, raise awareness and get support of the public on
key messages of private sector towards the new Government. Another main goal is to have
as many inclusions as possible to the new Government Action Plan. A publication titled
“BCM 1st Annual Summit Proceeding – Key Messages to Government Leaders” is produced
in Mongolian language. The publication along with an official letter was sent to the
President, Prime Minister, Deputy Prime Minister, Parliament Members, Ministers and
Standing Committee chairs on Aug 16th. Following the plan the key messages were
promoted through Bloomberg TV interview on Aug 16th, articles in Zasgiin Gazriin Medee
newspaper edition Aug 18th and Udriin Sonin newspaper edition Aug 19th. Engaging social
media posts are continuously made through BCM twitter and Facebook accounts.

14. CERTIFICATE OF ORIGIN (CO) ISSUES RAISED TO GOVERNMENT OFFICIALS
Following up the Consultative meeting on CO dated Aug 3rd, an official letter requesting
postponement of effective date of regulation to Jan 1st, 2017 was sent to the General
Customs and Tax Authority. Furthermore, a meeting was held with V.Enkhbold, head of
Foreign Trade and Economic Cooperation Department (under MFA) and its officials in
charge of foreign trade issues on Aug 16th. It was informed that the department will
further study the issue and will try to resolve on mutual consensus. Official letter was
sent to Ts.Munkh-Orgil, Minister for Foreign Affairs on Aug 18th stipulating overall analysis
on how the new regulation contradicts international practices and how it burdens the
private sector. The postponement was also requested.
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
- Sandvik Mongolia LLC is hiring Junior Accountant. Deadline for application: Sep 15, 2016.
For more information, please contact at (976)-70121930
- Areva is hiring Accounting and Reporting Manager. For more information, please contact
at 11 320698 (115)
- 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.

15. WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
- Presentations from “Invest Mongolia 2016” Conference
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]

16. 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]
CURRENCY RATES – 1 September 2016
Currency Rate
U.S. dollar USD 2,223.62
Euro EUR 2,503.57
Japanese yen JPY 21.87
British pound GBP 2,966.09
Hong Kong dollar HKD 286.70
Chinese Yuan CNY 333.52
Russian Ruble RUB 34.76
South Korean Won KRW 2.03