The document provides a summary of business and economic news from Mongolia. It includes the following highlights: - Erdenes TT plans to repay its debt to Chalco by 2017. Erdene Resource is expanding gold exploration. Kincora Copper and Entrée Gold announced corporate changes. - Vestas secured a contract to build Mongolia's first commercial wind farm. An Austrian firm will renovate Ulaanbaatar's sewage system. - Mongolia requested financial assistance from the IMF and was revised to modest growth in an ADB report. Early snow impacted harvests and parliament cut 10% of jobs. Mongolia rose slightly in competitiveness but inflation eased.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 447 – October 7, 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:
 Erdenes TT plans to pay off CHALCO debt in 2017
 Erdene Resource expands exploration
 Kincora to issue 5.89 mn post-roll back shares for Ibex
 Entrée Gold mulls splitting into two separate public companies
 UBTZ breaks tradition by appointing D. Jigjidnyamaa as next head
 Vestas turnkey entry to Mongolia
 Austrian firm contracted to renovate UB sewage system
 Education TV to broadcast Mongolia’s Next Top Model
 Wagner Asia’s Bruce Wagner remembers 20 years in Mongolia
 Newmont Mining hires Former OT chief
 Mongolia calls in IMF rescue team but WA still tops Rio's sovereign risk ladder
Economy:
 Mongol Bank: FX auctions, currency swaps
 Mongolia requests financial assistance from IMF
 Asian Development Outlook 2016 Update
 Early snow hits Mongolian harvest
 Wheat production recovers from last year’s shortfall from drought
 Parliament lays off 10% of staffers
 Mongolia ranks 102nd in competitiveness
 New Tianjin road cuts transportation time, cost to Mongolia, Russia
 The first Mongolian satellite to launch next spring
 UNICEF to earmark $26.8 mn for Mongolian children
 IFRC Secretary General concludes visit to China and Mongolia
 Climate Change and Savage Winters Fuel Urban Migration in Mongolia
 Archaeologists discover largest dinosaur footprint Titanosaur in Mongolia
 Coal prices and real costs at TT
 Coal Logistics Hub Opens in Inner Mongolia
 Japanese cars: Cheaper prices also means higher costs—EDITORIAL
Politics:
 Finance Minister submits 2017 budget

2.  Finance Minister proposes 90% cut in corporate tax for small businesses
 Election Day declared public holiday
 Chinese, Mongolian party leaders meet
 Mongolia to sign extradition agreement with Kazakhstan
 Russia to Hold Drills With India, Mongolia, Pakistan, Vietnam in 2017
 Alaska, Mongolia team up for Disaster Management Leadership Seminar
 Former PM Altankhuyag son-in-law arrested
 Prosecutor ignores charges against Former ‘Little’ TT deputy
 The 6,000-year-old tradition of hunting with eagles is dying out—VIDEO
 Ten-point plan to fix Mongolia—EDITORIAL
 Mongolia’s small country diplomacy and North Korea—EDITORIAL
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3. BUSINESS
ERDENES TT PLANS TO PAY OFF CHALCO DEBT IN 2015
Erdenes Tavan Tolgoi LLC is targeting 2017 to repay its debt to Aluminum Corp of China,
(CHALCO), which has suppressed prices on its coal. The state-owned miner for the Tavan
Tolgoi coking coal mine still owes 96 million to be repaid in coal deliveries to Chalco
currently priced at USD70 a ton, said S. Amaglan, marketing director at Erdenes TT.
Mongolia borrowed USD350 million from the China-owned miner in a 2011 offtake
agreement that sets prices below market price.
Source: Udriin Sonin
ERDENE RESOURCE EXPANDS EXPLORATION
Erdene Resource Development Corp. plans to nearly double its exploration to 9,000 meters
of drilling, according to a 4 October results announcement from its 100 percent owned
Bayan Khundi gold project in southwest Mongolia. Erdene reported 116 meters of 2 grams
per ton of gold from its originally planned 5,000 meters of drilling at its 100-percent
owned Bayan Khundi gold project. The additionally announced drilling will include its Alan
Nar and Altan Arrow gold projects.
“Bayan Khundii continues to deliver exceptional, near-surface gold grades over wide
intervals and today's results increase our confidence in the continuity of these gold zones
and the broad extent of the lower-grade mineralization," said Peter Akerley, Erdene's
president and chief executive officer.
Source: Junior Miner Network
KINCORA TO ISSUE 5.89 MN POST-ROLL BACK SHARES FOR IBEX
Kincora Copper Ltd. said it will issue 5.89 million common shares and 2,947,500 warrants
with an exercise price of 54 cents and a term of 24 months. These securities will
ultimately be held by the shareholders of High Power Ventures Inc. (HPV) Following the
one-for-10 consolidation of Kincora Copper Ltd.'s outstanding share capital and the closing
of Kincora's USD1.053 million private placement, Kincora is updating the terms of its share
exchange agreement with HPV.
Source: Proactive Investors
ENTRÉE GOLD MULLS SPLITTING INTO TWO SEPARATE PUBLIC COMPANIES
Entrée Gold Inc. is evaluating options to potentially restructure its business, which may
include splitting synergistic assets into two separate publicly traded companies, it
announced on 3 October. Entrée's principal assets include a 20 percent carried joint
venture interest in two of the copper-gold deposits at Oyu Tolgoi project in Mongolia, 100
percent-ownership of the Ann Mason copper-molybdenum project in the Yerington District
of Nevada, and the exploration stage Lordsburg porphyry copper-gold project in New
Mexico. It also has approximately USD15 million in cash.
Many original shareholders invested in Entrée for exposure to the Oyu Tolgoi project, but
more recent shareholders have been looking at the Ann Mason project for its lower risk
profile, potential for further growth, good access to existing infrastructure, and is well
situated in one of the most favorable mining jurisdictions in the world. Work needed to
bring the Ann Mason project to the pre-feasibility level is already well advanced.
Source: Entrée Gold Inc.

4. UBTZ BREAKS TRADITION BY APPOINTING D. JIGJIDNYAMAA AS NEXT HEAD
Mongolia's joint-venture railway operator with Russia, Ulaanbaatar Railway JSC (UBTZ), has
appointed D. Jigjidnyamaa as the next director, breaking a tradition of trading between
Mongolian and Russian chief executives. UBTZ's board confirmed the appointment during a
meeting in Moscow on 28 September. Board members were in some disagreement before
Prime Minister Jargaltulga Erdenebat backed Jigjidnyamaa's nomination ahead of others to
replace L. Purevbaatar.
Additionally, the director of the Irkutsk railway station was appointed as the chief
engineer at UBTZ.
Source: News.mn
VESTAS TURNKEY ENTRY TO MONGOLIA
The Danish manufacturer Vestas has broken into a fresh market with a deal to build the 50
megawatt Tsetsii wind farm in Mongolia. It will deliver unidentified hardware to Clean
Energy Asia in the first quarter of next year with full operations expected before end-
2017. The contract is on an engineering, procurement and construction basis and includes
a five-year service package. Vestas opened an office in Mongolia earlier this year.
"Vestas looks forward to supplying world-leading wind power technology to Mongolia and to
supporting the country's efforts in reducing reliance on coal and in realising its vision to
contribute to the sustainable energy demand of Mongolia and the Asia Pacific region," said
Chris Beaufait, president of Vestas Asia Pacific and China.
Source: reNews
AUSTRIAN FIRM CONTRACTED TO RENOVATE UB SEWAGE SYSTEM
RTI Austria Co. has been contracted to renovate Ulaanbaatar’s aging sewage system with a
EUR7 million credit line from Austria. Plans are to repair the aging 44 kilometers of sewage
liens with the export credit agreement signed on September 27 in Vienna.
Source: Montsame
EDUCATION TV TO BROADCAST MONGOLIA’S NEXT TOP MODEL
Mongolia’s own version of Next Top Model is being filmed by Education TV this November.
Mongolia’s Next Top Model will be the first internationally franchised show to premier in
Mongolia, pitting 14 contestants—six men and eight women—against each other over 16
episodes. The show originally premiered as America’s Next Top Model with celebrity model
and host Tyra Banks and has spread to 170 countries around the world.
Mongolian male model E. Enkhbold will be the host. “The winner will take a cash prize, a
modelling contract with Hong Kong’s ‘SMI Movie’ and a fashion feature with Mongolian
sponsors,” said Enkhbold.
Source: News.mn
WAGNER ASIA’S BRUCE WAGNER REMEMBERS 20 YEARS IN MONGOLIA
A Wagner Asia executive has sent out words of hope to the new government under the
Mongolian People's Party and Prime Minister Jargaltulga Erdenebat in a letter
commemorating its two decades of operation in Mongolia. In a note published in the
magazine Mongolian Economy, Bruce Wagner recalled his first visit to Mongolia 20 years
ago with his father, and the “roller coaster ride” of world-beating growth in 2011 to the
near flat projections for this year. “Our business is intimately tied to the development of
the mining and mineral export sectors, to construction and infrastructure, to energy and

5. agriculture, so we sincerely hope that the new government can promote the development
of those sectors to a new level.”
“Today we remain as optimistic as we were when we first arrived in Mongolia 20 years ago
and we wish the present administration every success in getting Mongolia back on the
track to economic growth and prosperity.”
Source: Mongolian Economy
NEWMONT MINING HIRES FORMER OT CHIEF
Veteran mining executive Andrew Woodley has been named to oversee Newmont Mining
Corp.’s North American business starting 2 January. Woodley, who will succeed Tom Kerr,
previously ran the Oyu Tolgoi copper and gold mining operations in Mongolia for Rio Tinto
Group and before that was a mining executive in Mozambique, Australia and elsewhere.
“Andrew is an accomplished operations and business leader with more than 20 years'
experience driving improvements in safety, productivity and sustainability,” said Tom
Palmer, Newmont’s executive vice president and chief operating officer, in a 6 October
announcement.
Source: BizJournals
MONGOLIA CALLS IN IMF RESCUE TEAM BUT WA STILL TOPS RIO'S SOVEREIGN RISK
LADDER
Mongolia's request for financial rescue by the International Monetary Fund has done
nothing to alter the debt-burdened mining frontier's standing on the Rio Tinto Group
rankings of sovereign risk. Western Australia remains number one, well out in front of
cash-strapped Mongolia, an increasingly volatile South Africa and the even more politically
uncertain Madagascar and Guinea. This unlikely achievement results from the
commercially obtuse but politically acute plan by the
A net tax proposed by the Western Australia National Party would take the form of an
increase in lease rentals that are charged on production once mines have been producing
for 15 years. Currently the rent is 25 cents a ton.
Source: Australian Financial Review
ECONOMY
MONGOL BANK: FX AUCTIONS, CURRENCY SWAPS
The Bank of Mongolia on 6 October sold USD7.8 million to commercial banks at currency
auctions (out of bids totaling USD8 million and CNY2 million) for a closing rate of
MNT2,281.50. Also that day, it rejected an equivalent of USD9 million in tugrik swap
agreements.
On 5 October, the central bank issued MNT177 billion in one-week bills at a weighted
interest of 15 percent. Also that day, the central bank received MNT60 billion in bids for
28-week bonds with a face value of MNT40 billion at a discounted price with a weighted
average yield of 16.865 percent. It received MNT45 billion in bids for 39-week bills with a
face value of MNT30 billion that were sold at a discounted price and weighted average
yield of 16.943 percent. It received MNT7.5 billion in bids for 52-week bills with a face
value of MNT5 billion that was sold at a discounted price and weighted average yield of
16.99 percent.
Source: Bank of Mongolia

6. MONGOLIA REQUESTS FINANCIAL ASSISTANCE FROM IMF
Mongolia has sought financial assistance from the International Monetary Fund (IMF), as it
grapples with balance of payments woes and looks to stabilize its economy, the IMF said on
30 September. Discussions about financial assistance from the IMF will begin next week
when Mongolian officials visit Washington D.C. to attend the annual meetings of the IMF,
the organization said in a statement, without saying how much was sought. "The Mongolian
authorities have made a request for financial assistance from the IMF to support their
economic programme, which is intended to address balance of payments pressures and
stabilize the economy," spokesman Gerry Rice said in the emailed statement.
The IMF would also send a team to Ulaanbaatar in late October to continue discussions, it
added.
Source: Reuters
ASIAN DEVELOPMENT OUTLOOK 2016 UPDATE
Growth has held up in developing Asia despite a difficult external environment, according
to the Asian Development Bank’s update to its 2016 outlook, as it project 0.3 percent for
economic growth in Mongolia compared with 0.1 percent from earlier in the year. The
region is expected to grow steadily at 5.7 percent in 2016 and 2017. While global
commodity prices have begun to rebound, inflation remains largely subdued. Consumer
prices will likely rise by 2.6 percent in 2016 and 2.9 percent i n 2017. Transitioning to low-
carbon growth will help developing Asia reap outsized rewards in the global effort to
contain climate change.
East Asia’s outlook is boosted by strong growth in China. Strong fiscal and monetary
stimulus helped ease growth moderation in China to 6.6 percent in 2016 and 6.4 percent in
2017. The forecast for a sharp slowdown in Mongolia is revised up somewhat as mining
fared better than previously expected.
Asian Development Bank listed the following data and projections:
GDP Growth (%)
2015: 2.3
ADO 2016: 0.1
ADO Update: 0.3
2017 (ADO 2016): 0.5
2017 (ADO Update) 1.4
Inflation (%)
2015: 6.6
2016 (ADO 2016): 3.0
2016 (ADO Update): 3.2
2017 (ADO 2017): 7. 0
2017 (ADO Update) 5.4
Click here for the full report
Source: Asian Development Bank
EARLY SNOW HITS MONGOLIAN HARVEST
Early winter weather threatens to cut crop production by 40 percent this year, according
to a government report. Farmers have so far harvested 60 percent of its cereals (324,000
tons) of cereals, as well as as 82 percent of potatoes (126,000 tons) and and 72 percent of
other vegetables (72,000 tons). Harvesting has suffered from delays in the western region,
according to the report, although farmers in in Bulgan, Tuv and Selenge Aimag have fared

7. better. Losses are expected from Khentii Aimag this week from snow fall.
Source: News.mn
PARLIAMENT LAYS OFF 10% OF STAFFERS
Parliament has laid off 10 percent of its staff in the face of its economic challenges. After
layoffs, Parliament was left with a total 179 personnel left in seven divisions. The main
responsibility of staffers in Parliament’s Secretariat is to advise legislators.
Source: News.mn
MONGOLIA RANKS 102ND IN COMPETITIVENESS
Mongolia ranked 102nd in the world for competitiveness by the World Economic Forum,
rising two places from last year with a score of 3.8. Mongolia’s score in the Global
Competitiveness Index was the same as the last two years—despite the climb ranking—
although there was mention in the report of improved the development of the financial
market, technological readiness and higher education. “The decrease in inflation played a
large role in the improvement of the macro economy,” said D. Oyunbadam, the manager
of economic policy at the Open Society Forum, while presenting the report.
The report ranks 138 counties based on marks for infrastructure, education, healthcare,
market size, and the macro economy. Switzerland ranked first in the world with a score of
5.8 score. Singapore and the United States ranked second and third, respectively, each
with a score of 5.7. China ranked 28th and Russia was behind at 45. Yemen, Chad, and
Mauritania filled the last three places in the ranking.
Source: Montsame
NEW TIANJIN ROAD CUTS TRANSPORTATION TIME, COST TO MONGOLIA, RUSSIA
For traders and buyers in Russia or Mongolia who order fresh food from China will see soon
the transit time reduced by two-thirds to three days, as the China-Mongolia-Russia
international road freight route was launched in Tianjin last month, which aims to shorten
cargo transportation time between Tianjin, Mongolia and Russia. It usually took more than
10 days for goods to reach Mongolia and Russia from Tianjin by rail before, and the options
were limited as mostly storage-tolerance goods could be transported to maintain the
quality of the goods.
So far, Tianjin has been connected to two kinds of transport routes, namely rail transport
and road transport, which both directly go to Ulaanbaatar of Mongolia and Ulan-Ude of
Russia. "Not only the transport time but also the cost will drop significantly," said Guo Xin,
general manager of Nanning Xin Jin Hang Materials Co Ltd.
Source: China Daily, ecns.com
THE FIRST MONGOLIAN SATELLITE TO LAUNCH NEXT SPRING
National University of Mongolia plans to launch Mongolia’s first satellite next May. “Our
four young scholars are working right now on the model of that satellite,” said D.Ulam-
Orgikh, a vice professor at the physic department, about the satellite named “Mazaalai.”
One is at Hokkaido University while the others are at Kyushu University. “They are
specialized in electronics.”
Japan has donated some funds to the project, said Ulam-Orgikh, as part of a larger
initiative to help countries launch their own satellites for imagery and communications.
Mongolia and Japan will share information from their own satellites with Bangladesh,
Nigeria and Ghana while ground stations will be established at Taiwan and Thailand. Some

8. countries plan to launch a second satellite in 2019.
Source: Montsame, Udriin Sonin
UNICEF TO EARMARK $26.8 MN FOR MONGOLIAN CHILDREN
UNICEF will deliver USD26.8 million for projects that target children’s health, growth,
environmental education and child protection with a new 2017-2021 country program
approved on 14 September. Minister of Foreign Affairs Ts. Munkh-Orgil on 5 October
received UNICEF Resident Representative Roberto Benes to discuss the launch of the
program next year.
Munkh-Orgil recommended that UNICEF requested some attention brought to upgrading
pre-school education, improving access to kindergartens and drinking water supply for
school children.
Source: Montsame
IFRC SECRETARY GENERAL CONCLUDES VISIT TO CHINA AND MONGOLIA
The Secretary General of the International Federation of Red Cross and Red Crescent
Societies (IFRC), Elhadj As Sy, has reiterated the commitment of the IFRC to strengthen
cooperation with the Red Cross Society of China (RCSC) in the face of growing
humanitarian needs worldwide. In Mongolia, Sy praised MRCS for its response to recent
disasters, as well as for its efforts to expand its presence and programs in response to new
and emerging humanitarian needs across the country. He joined local Red Cross staff and
volunteers in launching the “One Billion Coalition for Resilience” in Mongolia, a global
initiative that aims to strengthen the resilience of one billion people by the end of 2025.
Source: IFRC
CLIMATE CHANGE AND SAVAGE WINTERS FUEL URBAN MIGRATION IN MONGOLIA
Nyamdulam and her family had been herders in Zavkhan Aimag for Nyamdulam’s whole
life. They had over 300 head of livestock including sheep, yak, camels, cows and horses
that were their whole livelihood, but the province was heavily affected by the harsh
dzuds. In 2007 her family was forced to move to the local township, and eventually in 2010
to Mongolia’s capital, Ulaanbaatar, to find new work when all their livestock died.
Nyamdulam’s story represents a growing trend. Mongolia’s unique geographical location,
and the reliance of rural populations on animal husbandry, make it one of the countries
most vulnerable to climate change. it was ranked eighth among over 100 countries in the
Global Climate Risk Index of 2014; over 70 percent of land area has already been affected
by desertification; average temperatures have already risen by 2.14 degrees; and glaciers
in the far north western provinces are fast retreating.
Source: Reliefweb
ARCHAEOLOGISTS DISCOVER LARGEST DINOSAUR FOOTPRINT TITANOSAUR IN MONGOLIA
A joint team of researchers from Japan and Mongolia has unearthed what could be termed
as the largest dinosaur footprint which measures almost the size of a man. The footprint is
believed to be of a species of dinosaur named Titanosaur which roamed in this part of
Earth nearly 90 million years ago. Researchers from Okayama University of Science and
Center of Paleontology under the Mongolian Academy of Sciences unearthed what could be
the world’s largest footprint of a gigantic dinosaur. The footprint is 42 inches long and 30
inches wide.
In the past also some footprints of dinosaurs were discovered in the Gobi desert in

9. Mongolia. However, this is the biggest footprint of a dinosaur and was from a geological
layer which hints that it could be 90 million years old also. The discovery is significant
because for the first time a fossil foot with clear imprints of its claws has been found.
Source: Indian Tribune
COAL PRICES AND REAL COSTS AT TT
The state-owned Tavan Tolgoi mine is missing out on a current rally in coal prices, and it
may be dragging down other miners in the Gobi desert with it. Coal prices have exceeded
USD200 a ton in China, while Erdenes Tavan Tolgoi LLC sells at a USD27. “It costs a lot to
transport a ton of coal over distances ranging between 600 and 700 kilometers across two
countries,” says B. Batbileg, a former chief executive for Erdenes TT. “It’s common to
face bureaucracy while traveling across China. It all becomes additional cost.”
Erdenes TT updates coal prices every quarter as per an agreement with Aluminum
Corporation of China Limited (CHALCO). Coal prices have been continuously falling since
that agreement was signed in 2011. Prices fell by a whopping 40 percent in 2013 from
2012, and continued to fall ever since.
Source: UB Post
WHEAT PRODUCTION RECOVERS FROM LAST YEAR’S SHORTFALL FROM DROUGHT
Wheat production in 2016 estimated to have recovered from last year’s sharply reduced
level. Harvesting is complete, and the 2016 wheat production is estimated by FAO at
450,000 tons—up almost 80 percent from 2015 and close to the 2014 record. Wheat and
rice are the two major imported cereals, mainly from the Russia and Kazakhstan. Cereal
imports in the 2015-16 marketing year (October and September) are estimated to almost
triple the previous year’s low level and reach 199,800 tons. This mainly reflects four times
as much wheat imports from last year level and well above the five-year average,
reflecting the sharply reduced harvest in 2015.
Beef and mutton prices in Ulaanbaatar have decreased seasonally since June 2016,
reflecting good supplies in the market. Overall, prices were below their levels in 2015.
Wheat flour and rice prices in Ulaanbaatar remained relatively stable in recent months,
owing to adequate availabilities mainly from increased imports.
Source: reliefweb
COAL LOGISTICS HUB OPENS IN INNER MONGOLIA
The city of Wulanchabu in central Inner Mongolia has opened a coal logistics center
designed to streamline shipments of locally mined coal to the eastern ports of Tianjin,
Caofeidian and Qinhuangdao. The announcement in the Inner Mongolia Daily newspaper
comes amid a dramatic decline in domestic coal output nationwide and a sharp increase in
coal imports. Government data showed China’s coal output declined 10.2 percent year-on-
year to 2.18 billion tons between January and August, state media said. But coal imports
rose 12.4 percent during the same period.
The logistics center is designed to streamline coal exports from a 1,200-square-kilometer
mining region by providing coal washing, processing and transportation facilities, according
to the report. The center is served by highway and railway links to eastern points including
ports and the Beijing region. The Wulanchabu center is expected to handle about 13
million tons of coal this year.
Source: Break Bulk

10. JAPANESE CARS: CHEAPER PRICES ALSO MEANS HIGHER COSTS—EDITORIAL
Traffic rules, roads, toll booths and more are designed for cars with vehicles on the left-
hand side in Mongolia, but 54 percent of all vehicles with the wheel on the wrong side. The
Japan-Mongolia Economic Partnership Agreement (EPA) waives import taxes for vehicles
newer than three-years-old and brand new cars, and reduced taxes on cars older than
three years. Japan bans vehicles more than 10-years-old from the road, and, as a result,
approximately USD1.3 billion Japanese imports to Mongolia are vehicles.
In 2015, 64.4 percent of all accidents involved cars with steering wheels on the right-hand
side—a big jump from the .05 percent in 2014. Mongolia paved 6,351 kilometers of road
from 2012 to 2015. Obstructions to view or drivers sometimes making sudden turns to
avoid pot holes result in accidents. A law eliminating cars with steering wheels on the
right-hand side by 2020 could save lives and improve time in traffic.
Source: UB Post
POLITICS
FINANCE MINISTER SUBMITS 2017 BUDGET
Finance Minister Battogtokh Choijilsuren has submitted the 2017 budget for a vote by
Parliament. Government revenue is not expected to increase much because of the
softened market for Mongolia’s major export commodities. The budget deficit is currently
capped at 18.5 percent of GDP for 2016, or MNT2.59 trillion. Afterward, Mongolia’s Fiscal
Stability Law requires that the deficit narrow to 9.9 percent next year, 7.5 percent in 2018
and 5.5 percent in 2019. The government is targeting zero deficit by 2020.
Source: Montsame
FINANCE MINISTER PROPOSES 90% CUT IN CORPORATE TAX FOR SMALL BUSINESSES
Corporate income tax for some small businesses will be cut by 90 percent if a new bill
submitted by the finance minister is passed. The bill would hold companies to 1 percent
corporate income taxation for companies that earn less than MNT1.5 billion and produce
food products, textiles, construction materials from 1 January 2017.
Source: Unuudur
ELECTION DAY DECLARED PUBLIC HOLIDAY
A public holiday has been declared for the day when local elections will be held on 19
October. Campaigning has already launched across the country, as more than 15,000
candidates from nine parties compete in the local election for office in Ulaanbaatar’s nine
district and the country’s 21 provinces.
Polling stations will open at 07.00 and will close at 22.00.
Source: News.mn
CHINESE, MONGOLIAN PARTY LEADERS MEET
An official from the Communist Party of China has pledged to increase mutual trust and
jointly push forward bilateral ties. Senior Communist Party of China (CPC) official Liu
Yunshan met in Mongolia on 1 October with the chairman of the Mongolian People's Party
(MPP) Miyegombo Enkhbold. Describing the two countries as "good neighbors, friends and
partners," Liu said China has proposed and will uphold its neighborhood diplomacy
featuring amity, sincerity, mutual benefit and inclusiveness.
Liu called for the implementation of the consensus reached by leaders of the two

11. countries, saying the two sides should boost mutually beneficial trade cooperation and
tightly dovetail China's Belt and Road Initiative with Mongolia's Steppe Road program. Also
during the visit, Liu attended ceremony for the opening of a kindergarten whose
construction was funded by China Foundation for Peace and Development, in Mongolia.
Source: News.mn, Xinhua, 2
MONGOLIA TO SIGN EXTRADITION AGREEMENT WITH KAZAKHSTAN
Mongolia plans to ink another extradition agreement with Kazakhstan during the Shanghai
Cooperation Organization summit to be held in June 2017 in Kazakhstan. Justice Minister
S. Byambatsogt broached the topic during a meeting with the Cabinet Secretariat and
Kazakh Ambassador Kalybek Koblandinon 5 October.
Source: News.mn
RUSSIA TO HOLD DRILLS WITH INDIA, MONGOLIA, PAKISTAN, VIETNAM IN 2017
Russia's Land Force will conduct joint exercises with Indian, Mongolian, Pakistani, and
Vietnamese troops in 2017, the Force's commander-in-chief, Col. Gen. Oleg Salyukov, said.
He reminded that Russia and Pakistan had been carrying out the first joint Druzhba-2016
("Friendship-2016") exercises since 23 September, adding that on 4 to 7 October, Russia
would also engage in joint drills of the collective rapid deployment forces of the Central
Asian countries "Rubezh-2016" ("Boundary-2016").
"Next year we will conduct joint exercises with troops of Pakistan, India, Mongolia,
Vietnam, Nicaragua and CSTO [Collective Security Treaty Organization's] member states,"
Salyukov told reporters.
Source: Sputnik News
ALASKA, MONGOLIA TEAM UP FOR DISASTER MANAGEMENT LEADERSHIP SEMINAR
A five member team from the Alaska Air National Guard’s 212th Rescue Squadron
participated in a Disaster Management Leadership Seminar in Ulaanbaatar, Mongolia from
19 to 23 September. The Mongolia National Emergency Management Agency hosted the
first of it’s kind exchange, partnering with service members. “This is the first that I am
aware of where we have actually gone in at an operational level and shared subject
matter expertise for the operator type,” explained Tech Sgt. Cody Inman, a
pararescuemen.
The Guardsmen attended the engagement in Mongolia as part of the National Guard State
Partnership program. The program was implemented to couple foreign democracies with
states to develop unique security partnerships that ensure U.S. strategic access and a
sustained presence in countries worldwide. U.S. personnel have deployed as advisors with
the Mongolians to Iraq since 2004 and Afghanistan since 2009. With almost 15 years of
U.S. operations combating international terrorism, pararescue has gained a lot of
invaluable experience in theaters across the globe.
Source: dvids
FORMER PM ALTANKHUYAG’S SON-IN-LAW ARRESTED
Anti-corruption authorities have arrested the son-in-law of former prime minister Norov
Altankhuyag for abuse of power in government. G. Denzen could face between one month
and 10 years in prison, according to a statement from the Independent Agency Against
Corruption. Denzen was under investigation for a claim that he accepted MNT17 billion in

12. return for a tender from Erdenes Tavan Tolgoi awarded to Gobi Power, which is registered
under his wife and Altankhuyag’s daughter.
Source: Udriin Sonin
PROSECUTOR IGNORES CHARGES AGAINST FORMER ‘LITTLE’ TT DEPUTY
A prosecutor in Umnugobi Aimag has ignored charges from anti-corruption authorities that
a former deputy director of Mongolia Stock Exchange-listed Tavan Tolgoi LLC accepted a
MNT500 million bribe. Kh. Tumenbayar, who was a public official working for the
provincially owned mining unit may have accepted the bribe from the company Erdenet
Tsetsiin Khairkhan, said authorities, among other alleged crimes. While a deputy at Tavan
Tolgoi—which is known to investors as Little TT to differentiate it from Erdenes TT—
Tumenbayar ran a private gas station on his property that allegedly owes MNT122 million
in back tax and owes MNT200 million from a MNT122 million fine for exploration without a
license, authorities say.
Source: Unuudur
THE 6,000-YEAR-OLD TRADITION OF HUNTING WITH EAGLES IS DYING OUT—VIDEO
The swiftness, speed and tact of hunting with eagles is pretty amazing to watch. But the
more than 6,000-year-old tradition in Mongolia is slowly disappearing. Eagle hunting is
used by the Kazakh ethnic group. It helps supply food in winter, is used as a coming of age
ritual for boys and a sport in an annual festival.
The Golden Eagle Festival has recently drawn in tourists to watch a series of competitions
unfold. Tourism in the area has caused tightened wildlife preservation, but that's only part
of the reason eagle hunting isn't as widely used. There's a lot less wildlife in Mongolia.
Now, some family members get jobs outside the villages where livestock farming is a main
way to bring in income. Only about 250 eagle hunters are left in the region. The
partnership between eagle and hunter is a tight bond, but hunters do let the eagles go
after 10 years.
Click on the Source to watch the video.
Source: Newsy
MONGOLIA’S SMALL COUNTRY DIPLOMACY AND NORTH KOREA—EDITORIAL
Landlocked Mongolia may become a problem solver in the Asia-Pacific. Whether its
Ulaanbaatar’s small country diplomacy or its non-nuclear weapons state (NNWS) status,
both regional and international actors recognize Mongolia’s accountability and
transparency in the global political arena. In the past six months, the world has seen
repeated evidence that the North Korean nuclear issue has turned into a prolonged crisis.
Mongolia-North Korea relations date back to the Korean War of 1950-1953 and continue to
this day. While the Mongolian government condemns North Korea’s dangerous moves,
Ulaanbaatar continues to believe in peace negotiations, seeking stable diplomatic and
economic solutions to overcome political, economic, and civil issues on the Korean
peninsula. In June 2014, Mongolia hosted the “Ulaanbaatar Dialogue on Northeast Asian
Security,” gathering 35 representatives,including those from Mongolia, Russia, Japan,
North Korea and more. Ulaanbaatar has put itself in a significant position to mediate
future negotiations to stabilize the Korean Peninsula.
Bolor Lkhaajav is a foreign policy analyst with a Master of Arts in Asia Pacific Studies.
Source: The Diplomat

13. TEN-POINT PLAN TO FIX MONGOLIA—EDITORIAL
Mongolia set a foot on the road to stabilizing its economy by formally beginning talks with
the International Monetary Fund last week. Here are a further 10 steps the new
government and the IMF should take to put one the world’s most promising economies
back on track.
1. Gold: Stop talking, start digging
2. Coal Train to China
3. Grow up: Further gains rely on technology.
4. Import Substitution
5. Taxing times
6. Stick to the plan: Mongolia is well below its commitments for greater public
transparency from the Open Government Partnership it’s signed on to.
7. The triple whammy: Mongolia could boost fiscal revenue, tackle corruption and lure
back foreign investors in one fell swoop through privatization.
8. Foreign Investment Promotion
9. Long bonds
10. License to bank: Mongolians protective against influence from overseas, but
appropriately granted licenses to foreign banks could help stimulate competition and
reduce fees.
Lee Cashell is the founder and chief executive officer of Asia Pacific Investment Partners
and Mongolia Properties.
Source: Frontera
UPCOMING EVENTS
BCM KNOWLEDGE SHARING SESSION, MONDAY 10 OCT
BCM’s next knowledge sharing session will be organized in partnership with BCM member
Wagner Asia Equipment LLC on the topic "6 Sigma awareness training". The session is
offered free of charge to BCM members only and will be conducted in Mongolian Language.
For registration, please contact via dolgorsuren@bcmongolia.org
For more information, click here.
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.

14. 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.
PAST EVENTS
WORKSHOP ON CORPORATE RESPONSIBILITY WITH JANE MADDEN, 28 SEP 2016
The Business Council of Mongolia (BCM) in partnership with the Embassy of the United
States of America in Mongolia organized a workshop on Corporate Responsibility with a
distinguished guest speaker Jane Madden, US Managing Director of Corporate Responsibility
at Burson-Marsteller, a leading global public relations and communication firm. About 50
people came to the meeting to listen to Jane’s 25 years of experience in environmental,
social and governance strategy, performance and communications. She worked in more
than 20 countries, including Afghanistan, China, Russia, and Saudi Arabia, and has advised
Fortune 500 companies across a variety of industries. With work experience in the World
Bank, European Union, UNICEF and the corporate world, Jane’s presentation had
interesting angles on the Corporate Responsibility on how CSR can help companies in crisis
and issues management, in mitigating risks, creating business opportunity and easing
corporate license. Some of the important quotes from Jane include: “Corporate Social
Responsibility (CSR) needs to be integrated into the business strategy. It is not an stand-
alone and “nice-to-do” thing. CSR does not have to be expensive, it is good for the
business, and it is one way to keep top talent”. To see her full presentation, click here.
BCM WORKING GROUP NEWS
BCM’S BUSINESS ETHICS WORKING GROUP MEETING, 27 SEP 2016
BCM's Business Ethics Working Group meeting was held on 27 September with 10 members
attending with co-chair Chritine Hudetz. The key speaker of the meeting was Peter van
Veen of TI UK who made a virtual presentation on the topic "Third Party Bribery Risks". TI
UK in cooperation with TI USA have developed a guidance to support for companies with
managing third party bribery risks.
Moreover, the working group has conducted a needs assessment to find out about the most
sought after topics and achievements for the group, the key findings were presented by
co-chair Christine. Announcement was made regarding the secured funding from the Asia
Foundation for additional capacity development, knowledge sharing, and expert
presentations at the WG. An inaugural workshop for the funding period will be held in
early November to identify the topics and approaches of the group for the next year. For
more information please see web news here.
- Education & Innovation Working Group Meeting on “Opportunities for Fostering
Innovation in the Mongolian Market” 22 September 2016
- Energy & Environment Working Group’s consultation meeting with J.Batbayasgalan,
Deputy Governor of Capital City on “MUNICIPALITY’S ACTION PLAN FOR THE NEXT 4

15. YEARS”, 15 September 2015
- 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
- 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
- The Business Council of Mongolia (BCM) is hiring Working Group Coordinator. Deadline
for application: Oct 13, 2016. For more information, please contact at
Bayarmaa@bcmongolia.org
- B Production is hiring Accountant. For more information, please contact at
azbayar@bproduction.mn
- Transwest Mongolia is hiring hiring Parts Analyst. Deadline for application: Oct 16, 2016.
For more information: please contact atcareers@transwest.mn
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:
- Presentations from “Invest Mongolia 2016” Conference
Please click here to view full list of Presentations.
MONGOLIA REPORTS:
- World Bank, “Mongolia Economic Brief”, Sep 2016
- WPP and Y&R Mongolia, BradnZ’s first ever “Spotlight on Mongolia”, Sep 2016
- 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

16. - 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]
August 31, 2016 *-0.2% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: -0.6% y-o-y - Ulaanbaatar City, August 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]
August 18, 2016 15.00% [source: Mongol Bank]
CURRENCY RATES – 15 September 2016
Currency Rate
U.S. dollar USD 2,275.79
Euro EUR 2,548.20

17. Japanese yen JPY 21.95
British pound GBP 2,892.98
Hong Kong dollar HKD 293.40
Chinese Yuan CNY 341.12
Russian Ruble RUB 36.47
South Korean Won KRW 2.05