April 3 2009

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmmongolia.org
info@bcmmongolia.org
Issue 63, April 3, 2009
NEWS HIGHLIGHTS:
Business: Rules changed to persuade miners to sell more gold to Central Bank; Ivanhoe CEO
meets with Speaker; OT draft at 12th place on Parliament’s order of business; Delay in
OT agreement is a loss, says Deputy PM; Polo Resources may get up to USD50 million
and 1% royalty in Peabody deal; Aero Mongolia ready to fly again; Khan Bank seeks
expansion in Asia; 50 companies ready to join employee training program; Rio has
‘Plan B’ if deal with Chinalco fails; 4 banks to lend Chinalco USD21 billion for Rio
investment; Australian backlash to Rio deal queers the pitch for Rudd.
Economy: ADB says Mongolian growth will slump to 3% this year; Auctions stabilizing currency
market; Companies being inspected on use of foreign currency; Domestic producers
against lowering import tax on flour; Fluorspar prices to stabilize as environmental
pressures moderate demand; Minimum living standards set; Fuel prices go up sharply;
Mongolia, Vietnam trade unions look to increased ties; Kazakhstan wants to buy more
Mongolian duobuses; Toilet water rates to be raised; Bank lawyers form association;
Euromoney Hong Kong Investment Forum looks ahead.
Politics: Parliament’s spring session to start a day later; Presidential candidates to be named by
April 5; MPRP wants Enkhbayar’s choice to be unanimous; Campaign song on Enkhbayar
being recorded; President prepares law draft on companies; German railway to build
freight railroad from Mongolia to China; Czech embassy stops receiving work-visa
applications; Regional forum meets to boost economic cooperation; Mongolia gets
Korean military radios; Mongolia looks to Australia for power network ideas; Moscow
Mayor offers financial help; US Ambassador presents scholarships; Ex-President
Bagabandi attends Tirana conference; Herder donates 26 goats to help fight the crisis;
Fully grown trees to be planted, not saplings.
BUSINESS
RULES CHANGED TO PERSUADE MINERS TO SELL MORE GOLD TO CENTRAL BANK
The Central Bank has revised the methodology and amended the regulations governing the
determination of the purchase price of gold in an effort to increase gold production and its sale to
the Central Bank. Effective from March 20, the purchase price of gold is being set by subtracting
USD2 per troy ounce from the latest price of the day at LBMA in London. This fixed charge of USD2
is designed to finance gold refining expenses and operational costs by the Precious Metals Treasury
Fund at the Central Bank.
All work relating to gold purchase - like physical delivery, verification of assay, encasing, storage,
confirmation and signing of the gold trading contract - has been centralized. The Precious Metals
Treasury Fund of the International Economic Department at the Central Bank is now responsible for
all this and also for their monitoring. Customers are receiving faster and more effective service.
In order to motivate gold miners, the Central Bank has also decided to fully cover assay discrepancy
risk exposure from now on. The decision will save gold miners USD1.4 million in 2009. The Bank has
appealed to the “patriotic spirit” of gold miners to help the country overcome the economic crisis
and to sell all their extracted gold to the Bank.
Source: Undesnii shuudan, www.mongolbank.com
IVANHOE CEO MEETS WITH SPEAKER
Mr. John Macken and Mr. John Fognani, Chief Executive Officer and Executive Vice President

2. respectively of Ivanhoe Mines, called on Mr. D.Demberel, Speaker of Parliament, on Thursday
afternoon. It is believed they discussed the status of the draft investment agreement on the Oyu
Tolgoi project. Mr. Keith Marshall, Executive Director of the project, and Mr. A.Munkhbat, Vice
President and Executive Director of Ivanhoe Mines Mongolia Inc., were also present at the meeting.
Source: Odriin sonin
OT DRAFT AT 12TH PLACE ON PARLIAMENT’S ORDER OF BUSINESS
Parliament Speaker D.Demberel has issued an ordinance on the order in which issues are to be
discussed at the spring session of Parliament in 2009. The agenda puts discussion of the draft Oyu
Tolgoi investment agreement at the 12th place. Among the other drafts or resolutions to be
discussed are those on giving MNT1.5 million to every Mongolian as their share of “Motherland
treasure”, on the right and freedom to obtain information, on limiting the use of plastic bags, on
the ethical norms to be observed by MPs, on adoption of the 2010 government budget framework,
on amendments to the general taxation law, and to the export tax on some commodities, on the
use of the money accruing to the Mongolia Development Fund, on approval of the state policy on
the development of the minerals sector until 2015, on prohibition of mineral exploration and
extraction in water basins and forest areas, and on exploitation of micro-mines.
Source: Montsame
DELAY IN OT AGREEMENT IS A LOSS, SAYS DEPUTY PM
Deputy Prime Minister M.Enkbold said Tuesday an investment agreement for the Oyu Tolgoi copper-
gold mine will likely be finalized in April when the matter is discussed in Parliament. He said the
delay in finalizing the agreement had created lost opportunities. "We, both our people and
Parliament, understand what the cost of the delay is," he told newspersons in Hong Kong.
Source: Dow Jones Newswires, MarketWatch.com
POLO RESOURCES MAY GET UP TO USD50 MILLION AND 1% ROYALTY IN PEABODY DEAL
Polo Resources Ltd said on Tuesday it could receive as much as USD50 million from a joint venture
deal with Peabody Energy Corp, the world's largest private sector coal company, under revised
terms. The amount is below the USD73.2 million headline figure announced in January, but under
the new option agreement Polo will receive a 1 percent royalty from the venture.
Polo said Peabody would invest up to USD25.8 million to take a 50 percent interest in a joint
venture that will hold all of Polo's coal, uranium and other mineral interest‟s assets in Mongolia.
Source: Reuters.com
AERO MONGOLIA READY TO FLY AGAIN
Aero Mongolia, which accounted for up to 60 percent of domestic flights in the country before
ordered to be off the sky, is all set to resume operations. The Civil Aviation Authority (CAA)
canceled all its flights on January 12 after the airline had failed to observe its schedule following a
dispute between the company administration and its engineering staff. The CAA was also unsure
about how strictly safety procedures would be followed in those circumstances.
Aero Mongolia has now reported that its problems have been resolved and it is ready to fly again.
However, the CAA now has no director and until a new head is appointed, no decision is likely to be
taken on the troubled company‟s request.
Source: www.news.mn
KHAN BANK SEEKS EXPANSION IN ASIA
Mr. Peter Morrow, chief executive officer at Khan Bank LLC, told Bloomberg's Bernard Lo during an
interview in Hong Kong that Khan Bank sought greater Asian expansion as part of its long-term
growth strategy. Mr. Morrow also analyzed the outlook for Mongolia's economy and banking
industry.
Source: Bloomberg.com

3. 50 COMPANIES READY TO JOIN EMPLOYEE TRAINING PROGRAM
About 50 companies have expressed their willingness to participate in a vocational training program
to be run jointly by the German development agency GTZ and the Ministries for Social Security and
Labor, Road, Transport, Construction and City Development, and Minerals and Energy. Companies
in the road, construction and mining sectors will first hire unemployed young people who would
then be trained for three months under the program. The training fee will be MNT150,000 a month,
and the Ministry for Social Security and Labor will pay MNT400,000 to the companies for each
trainee. The program is meant altogether for 4,000 young people.
Source: www.news.mn
RIO HAS ‘PLAN B’ IF DEAL WITH CHINALCO FAILS
Mining giant Rio Tinto said last week it could sell more assets and reschedule debt if a proposed
USD19.5 billion tie-up with China's state-owned aluminum firm Chinalco fails to materialize. Rio
also said it expects a recovery in metals prices in the second half as China's stimulus package boosts
infrastructure spending in the world's most populous nation.
"First of all, we think it (Chinalco deal) will go through, but we have plans in the eventuality if
other various governments or shareholders prevent the deal," Rio's Chief Financial Officer Guy
Elliott told a mining conference in Singapore on Thursday. Alternatives could include bond issues,
more asset sales, a rights issue, debt rescheduling, or a combination of these, he said. "We have a
Plan B," Mr. Elliott said. "Last, but not least, we have more than adequate backup."
The proposed deal requires approval from Rio shareholders and Australia‟s Foreign Investment
Review Board. The board last week extended its investigation by 90 days. It will provide a
recommendation to Treasurer Wayne Swan who will make a final decision whether the deal is in
Australia‟s national interest. “We don‟t expect there should be any further extension to that time”
for the review board, Mr. Elliott said. “This transaction is in the interests of Australia. We think it
will go through.”
Source: Reuters.com, Bloomberg.com
4 BANKS TO LEND CHINALCO USD21 BILLION FOR RIO INVESTMENT
Aluminum Corp. of China said last week four Chinese banks have agreed to lend it USD21 billion to
help fund its proposed USD19.5 billion investment in the Rio Tinto Group. The loans will help
advance Chinalco‟s planned investment, which also has to overcome opposition from Rio‟s
shareholders and win approval from Australia‟s Foreign Investment Review Board. Australia has
blocked China Minmetals Group‟s USD1.8 billion bid for OZ Minerals Ltd. because of the proximity of
a mine to a weapons testing site.
“Chinalco is confident of winning the approvals,” Vice President Lu Youqing said in an interview by
phone from Beijing. The company‟s investment is “different” from the Minmetals takeover bid, he
said, without elaborating. London-based Rio Tinto is the world‟s third-largest mining company and
has about one-third of its assets in Australia.
Source: Bloomberg.com
AUSTRALIAN BACKLASH TO RIO DEAL QUEERS THE PITCH FOR RUDD
Australian Prime Minister Kevin Rudd will need all his diplomatic skills honed during four years as an
envoy in Beijing to blunt a backlash against China‟s USD19.5 billion investment in Rio Tinto Group.
The Rio deal has generated opposition in the Senate, while he also cannot afford to alienate China,
which buys almost half of Australia‟s mineral exports. Professor Andrew Hughes has said, “The
public will want to protect Australia‟s resources, not give the rights over them to a government.”
Seventy-eight percent of Australians oppose investment by Chinese government-controlled
businesses, according to a poll of 1,001 people published by the Sydney-based Lowy Institute for
International Policy in September. Tabloid newspapers feature such headlines as “Say No to
Chinalco” and “China Buys Australia on the Cheap.” However, Mr. Mark Thirlwell at the institute
calls worries over the deal “excessive”, and says, “Australia‟s regulatory regime is strong enough to
protect our national interest. If given a choice between an economically weak China and an
economically strong one, Australia and the world clearly need the latter.”

4. Source: Bloomberg.com
ECONOMY
ADB SAYS MONGOLIAN GROWTH WILL SLUMP TO 3% THIS YEAR
Economic growth in Mongolia will slow to 3% in 2009 before rising to 4.5% next year, according to
the Asian Development Bank (ADB). Mongolia‟s economy grew 10.6% in 2004, 7.3% in 2005, 8.6% in
2006, 10.2% in 2007, and 8.9% in 2008.
The ADB's flagship annual economic publication, „Asian Development Outlook 2009’, released on
Monday, said growth in East Asia -- defined as China, Hong Kong, Taiwan, South Korea and Mongolia
-- will slow to 3.6% in 2009 before rising to 6.5% next year. The growth projection for the region this
year compares with actual expansion of 6.6% in 2008 and 10.4% in 2007.
In the face of economic growth in “developing Asia” slumping to its slowest pace since the Asian
financial crisis, the ADB has called on governments to pursue "active" fiscal policies, and warned
that rising unemployment could spawn social instability, which in turn could further depress
private-sector investment and exacerbate the downturn. "The short-term outlook for the region is
bleak as the full impact of the severe recession in industrialized economies is transmitted to
emerging markets," said ADB acting chief economist Jong-Wha Lee.
Source: www.WSJ.com, www.adb.org
Please visit BCM website, Articles/Reports on Mongolia, for East Asia portion of ADB‟s‟Outlook
2009‟.
AUCTIONS STABILIZING CURRENCY MARKET
Analysts agree with the Central Bank‟s contention that its decision to hold auction of foreign
currencies has helped in the process of stabilizing the currency market. After the end of the third
auction this Tuesday the price of USD came down from MNT1,800 to MNT1,475.
Tuesday‟s auction was marked by the Central Bank buying USD14.4 million. Commercial banks did
not buy any USD which means they had enough. Indeed, they offered to sell USD16.6 million to the
Central Bank, for between MNT1,480-1,530 for a dollar. However, the Central Bank paid
MNT1497.76 per USD for all that it bought. The Central Bank had bought USD6.1 million at the
second auction on March 26. Of this, USD2.75 million was bought for MNT1,539.09 each.
Source: www.news.mn
COMPANIES BEING INSPECTED ON USE OF FOREIGN CURRENCY
Companies that make any transaction involving foreign exchange are being inspected under a
program jointly run by the Central Bank and the Ministry of Finance. Some individuals have also
been included in the program aimed at ensuring observance of foreign currency laws and
regulations. Apart from the bank and the Ministry, the Financial Regulatory Authority, the Ministry
of Justice, and other inspection agencies are taking part in the checking process.
The Inspection will end on April 11 and a comprehensive report will be submitted to the
Government by April 15. The main purpose behind the exercise is not to penalize errant companies,
but to help them adopt the practice of using the MNT for all monetary transaction.
Source: Undesnii shuudan
DOMESTIC PRODUCERS AGAINST LOWERING IMPORT TAX ON FLOUR
Local flour producing companies have asked the Government not to reduce the import tax on flour
as such a step will be disastrous for them. The present law, however, makes it incumbent on the
Government to reduce the tax by 15 percent between April and July.
Local producers say traders are waiting for the low tax period to import flour. They may be able
even to bring in enough to meet the entire domestic need of about 220,000 tons of flour a year.
“Our prices will not be competitive,” they said. “The Government needs to support us during these
uncertain times.”
Source: en.News.mn

5. FLUORSPAR PRICES TO STABILIZE AS ENVIRONMENTAL PRESSURES MODERATE DEMAND
The supply/demand balance in fluorspar has been showing signs of beginning to normalize. Exports
of Chinese fluorspar halved between 2002 and 2008, and mine production in the rest of the world
also declined in the 1990s in response to low prices and diminishing production of fluorochemicals
in the rest of the world. Now things have changed, with Mexican producers practically doubling
their output since 1998 and output also increasing significantly in Mongolia, Russia and Namibia.
The diminishing availability of fluorspar from China and strong growth in demand have led to a
number of proposed new mining operations. Of the total identified potential output of 1.4Mtpy it is
estimated that about 0.7Mt has attracted significant funding. Possible new producers from new
deposits include Mongolia Minerals. The market for fluorocarbons is recovering from the impact of
phasing out the use of chlorofluorocarbons (CFCs), which are being replaced by fluorocarbons with a
lower ozone depleting potential.
Future growth will be tempered by a decline in unit consumption as smelting technology improves.
Other factors that could limit demand for fluorspar, despite continued growth in aluminum
production, are the increased use of FSA as a source of fluorine for AlF3 and increased recycling of
fluorine units at the smelter. The easing of prices seen at the end of 2008 is likely to continue
through 2009.
Mongolia exported 355,000 tons of fluorspar ore and concentrate in 2006, 350,000 tons in 2007, and
334,900 tons in 2008.
Source: www.roskill.com
MINIMUM LIVING STANDARDS SET
The National Statistics Office has set a minimum living standard for 2009. MNT96,100 has been
determined to be the minimum in the western provinces of Bayan-Olgii, Gobi-Altai, Zavkhan, Uvs
and Khovd; MNT90,600 in the Khangai provinces of Arkhangai, Bayankhongor, Bulgan, Ovorkhangai,
Khovsgol and Orkhon; MNT91,200 in the central provinces of Gobi-Sumber, Dornogobi, Dundgobi,
Omnogobi, Selenge, Tov and Darkhan-Uul; MNT86,300 in the eastern provinces of Dornod,
Sukhbaatar and Khentii; and MNT101,100 in Ulaanbaatar city.
Source: Undesnii shuudan
FUEL PRICES GO UP SHARPLY
Petroleum prices went up sharply on Thursday last week, almost reaching the level of early March.
SodMongol Group added MNT170 to the price per liter of all types of fuel. Shunkhlai and Petrovis
raised the price of A80 to MNT1,050 from MNT890, of A92 to MNT1,150 from MNT990 and of diesel
to MNT1,350 from MNT1,190. Marketing managers of the companies attributed the raise to currency
value fluctuation and to other factors in the world market.
Source: Odriin sonin
KAZAKHSTAN WANTS TO BUY MORE MONGOLIAN DUOBUSES
Kazakhstan has expressed its satisfaction at the performance of the two duobuses it imported from
Mongolia some time ago and has said it would like to buy more. An official of the Electric Transport
Company in Ulaanbaatar has said if the orders come through and if the Government lends support,
there will be jobs for more Mongolians. He said these are environmentally friendly vehicles, able to
run on diesel if there is no electricity. Mongolia can claim to be the first country to incorporate this
feature in a typical trolleybus.
It cost USD140,000 to make one duobus and took a month to finish work on the two that have gone
to Kazakhstan. Another one is running in Ulaanbaatar. The factory employs 20 people. The MNT6
billion allocated in the state budget towards manufacture of 50 duobuses was cut during the later
budget revision. More jobs can be created and more money can be made if the Government
“supports our activity and makes an effort to export this important Mongolian achievement,” the
official said. Several cities of Kazakhstan have expressed an interest in the buses.
Source: Ardiin Erkh

6. MONGOLIA, VIETNAM TRADE UNIONS LOOK TO INCREASED TIES
The Confederation of Mongolia Trade Unions (CMTU) is expected to jointly conduct practical
activities with the Vietnam General Confederation of Labor (VGCL) to further protect workers‟
rights and benefits, said the CMTU president, Mr. Ganbaatar Sainkhuu, after a meeting with VGCL
President Dang Ngoc Tung in Hanoi during a six-day visit to Vietnam. The activities would be in the
form of exchange of visits, experts and experiences.
For his part, the VGCL president affirmed that Vietnamese workers and trade unions always highly
value the support and assistance given by Mongolian workers and their trade union in the past
struggle for national independence and the current one for national construction.
Source: http://english.vietnamnet.vn
TOILET WATER RATES TO BE RAISED
Residents in apartments will have to pay more for their use of toilet water. At present, families
without water meters pay an average of MNT10,000 a year while those with a meter end up paying
around half that much. The money thus collected is only enough to cover the costs of supplying the
water. Administrative, maintenance, and all such expenses are not met. Rates will be raised soon,
but it is not yet clear how much the rise is going to be.
Source: Onoodor
BANK LAWYERS FORM ASSOCIATION
Commercial bank lawyers, of whom there are 84 in Mongolia, have established their own
association affiliated with the Union of Mongolian Banks. Ch.Zorigtbaatar, law advisor to the
executive director of Zoos Bank, has been elected chairman. Aims and regulations of the
association will be approved soon. Bank lawyers hope the association will help protect banks from
legal crises, by making it possible for its members to share information, experience, and to
regularly exchange opinions and decisions.
Source: Montsame
EUROMONEY HONG KONG INVESTMENT FORUM LOOKS AHEAD
With the financial world in turmoil and mining in Mongolia still in the doldrums, the cheer and
optimism that marked the two-day session of the Euromoney Mongolia Investment Forum in
Ulaanbaatar in September was markedly absent at the Euromoney Mongolia-Asia Investment Forum
2009 in Hong Kong on March 31. Instead, there was some somber reappraisal and a determination
to go ahead.
The Foreign Investment and Foreign Trade Agency of Mongolia (FIFTA) was the Government
supporting organization of the conference, while Khan Bank and Trade and Development Bank were
the Lead Sponsors, the Newcom Group the Co-Lead Sponsor, and BCM the Supporting Organization.
After the opening keynote address by Mr. M.Enkhbold, the Mongolian Deputy Prime Minister, the
participants listened to panel discussions and attended workshops. There were four such panels
during the day. The first was on Mongolia‟s economic outlook in the face of a global economic
turmoil, and the speakers, who included Dr. G. Batsukh, Ambassador of Mongolia to China, and Mr.
Peter Morrow, Chief Executive Officer, Khan Bank, offered their views on such issues as the
vulnerability of Mongolia to the global economic slowdown, and to the commodity cycle, and on
managing the current account balance and inflation.
The second panel was on political, economic and legal reforms and speakers including Mr. Jim
Dwyer, BCM Executive Director, and Mr. B.Enkhbat, Vice President, Eznis Airways, discussed what
changes needed to be made to make the legal and political framework more accessible and
transparent for international investors.
The third panel dealt with Mongolia‟s infrastructure needs, and the participants included Mr.
Alisher Ali Djumanov, Managing Partner, Eurasia Capital Management, Mr. Alain V. Fontaine,
Managing Director, Investel Asia Limited, and Mr. Onon Orkhon, First Deputy Chief Executive
Officer, Trade and Development Bank. They discussed how much harder it is now to access project
financing than 12 months ago, the main bottlenecks hindering the private sector‟s participation in
building Mongolia‟s infrastructure, and ways to strengthen private-public partnerships, and also

7. took a close look at the performance of infrastructure funds in Mongolia.
The last panel discussed development and reform in the mining sector. Among the panelists were
Mr. Eric de Seze, Chief Executive Officer, Areva Mongol, Dr Gerald Harper, Senior Vice President,
Mongolian Operations, Western Prospector Group, and Mr. Alexander Molyneux, President, South
Gobi Energy Resources. The subjects they covered included the prospects of ending the impasse on
large mining projects, if new mining laws will boost competition, the impact of the downturn in
commodity markets on investments in Mongolia, and the effect on the Chinese economic downturn
on the Mongolian mining sector.
Of the two workshops, the one on “Mongolia's Financial System in Transition” was hosted by Khan
Bank, and the other, on “Mongolia‟s Financial Climate”, by Trade and Development Bank.
Source: www.euromoneyconferences.com
POLITICS
PARLIAMENT’S SPRING SESSION TO START A DAY LATER
Parliament‟s spring session should start on April 5, but since that is a Sunday, the Secretary General
of the Parliament Office has indicated that it will more likely begin at 11 a.m. on April 6. However
no notification has as yet been issued about the change. Asked about rumors that some MPs actually
wanted the session to start earlier so that the discussion on the draft Oyu Tolgoi agreement would
not be delayed, the official said this was not possible “since political parties meet that weekend to
select their presidential candidate”.
Source: www.news.mn
PRESIDENTIAL CANDIDATES TO BE NAMED BY APRIL 5
According to the schedule announced by the General Election Committee (GEC), political parties
will have to announce their presidential candidates by April 5. Parliament has already approved
MNT4 billion for the election, though the former GEC head said this would not be enough. Mongolian
citizens living in foreign countries cannot participate in the election because many of them are
there without documents. According to a recent survey, 75% of the people are likely to cast their
vote. Citizen participation rate was 83% in 1997, 82% in 2001, and 74.9% in 2005.
Source: Zuunii medee, www.gogo.mn
MPRP WANTS ENKHBAYAR’S CHOICE TO BE UNANIMOUS
Senior party officials are busy making sure that the 254 members who attend the MPRP conference
on April 3 to nominate the presidential candidate unanimously choose President N.Enkhbayar. Such
a show of united strength will give the party and the nominee an extra advantage when campaign
begins.
Source: Ardiin Erkh
CAMPAIGN SONG ON ENKHBAYAR BEING RECORDED
A formal announcement of the various parties‟ choice of presidential candidates will be made later
this week but President N.Enkhbayar, almost certain to be re-nominated by the MPRP, has started
planning his campaign. A song about him is now being recorded at a studio and will start being
played to the people as soon as his name is formally announced.
Source: www.news.mn
PRESIDENT PREPARES LAW DRAFT ON COMPANIES
Four draft laws prepared by President N.Enkhbayar have been submitted by his office to the
Parliament Speaker for possible discussion in the ensuing session. The drafts are about State
registration of citizens, about companies, about dealing with proposals and complaints from
citizens to government organizations and officials, and about changing the law on recording and
publishing Parliamentary discussions and decisions. The draft about registration aims at preparation
of a comprehensive data base.

8. The President has explained the need for a new law on companies by pointing out that with the rise
in international trade and foreign investment, it is important to clearly define things like the role of
company boards and shareholders‟ rights and responsibilities.
Source: Onoodor
GERMAN RAILWAY TO BUILD FREIGHT RAILROAD FROM MONGOLIA TO CHINA
Deutsche Bahn AG, the Germany railway, is planning to build a 260-km railroad to transport coal
from Ukhaa Khudag in the south of Mongolia to the border crossing to China at Gashuun Sukhait.
Representatives of Deutsche Bahn (DB) and Mongolia-based Energy Resources LLC signed an accord
in Berlin last week during a visit by Mongolian Prime Minister Sanjaa Bayar, the company said in a
statement. Construction work will begin this year on the project, costing as much as USD800
million, with the first trains due to run by 2011.
In winning the contract, DB offered to assume responsibility for overall project planning,
procurement management, monitoring of deadlines and costs, as well as quality assurance. It will
also provide support in connection with establishment and operation of the freight railway, which is
to be designed as a single-track line for an axle load of 25 tons.
Source: Bloomberg.com, www.cargonewsasia.com
CZECH EMBASSY STOPS RECEIVING WORK-VISA APPLICATIONS
As of April 1, the Czech embassies in Mongolia, Moldova, Thailand, Ukraine and Vietnam have
suspended accepting work-visa applications and scheduling work-visa interviews, the Czech Foreign
Ministry has said in a statement. The measure is to last for 'at least the coming weeks', according to
the Ministry.
The Czech economy was largely bypassed by the global financial meltdown but the economy,
dependent on exports to Western Europe, is hurting following a drop in demand. Foreign workers
have been among the first sacked amid the slump.
Source: www.dpa.de, monstersandcritics.com
REGIONAL FORUM MEETS TO BOOST ECONOMIC COOPERATION
Inaugurating the 10th meeting of the Greater Tumen Initiative (GTI) Consultative Commission in
Ulaanbaatar last week, Deputy Prime Minister M.Enkhbold told the assembled Government ministers
and business leaders from Northeast Asia that countries in the region have great potential for
cooperation and the meeting would further collaboration on transportation, tourism and
environment. The GTI is an intergovernmental cooperation mechanism in Northeast Asia supported
by the UNDP and the five member nations of Mongolia, China, North Korea, South Korea and Russia.
According to the Tumen Secretariat, over 140 government representatives, business leaders,
international organizations and academics participated in the forum. Commenting on the success of
the two-day meeting, Amir Dossal, the executive director of the U.N. Office for Partnerships, said
that there was a real desire to “create a partnership between the private and public sectors”.
Source: CHINA BRIEFING, www.chinaview.cn
MONGOLIA GETS KOREAN MILITARY RADIOS
South Korea has agreed to provide 28 sets of portable military radios to Mongolia, according to the
terms of a memorandum of understanding signed last week in Seoul on the transfer of the
communication equipment. “The models were manufactured in Korea in the late 1970s and the
1980s, but are fully functional," said a Korean official. `”They have been used only in the reserves
here, as the Korean army has replaced almost all of them with a lighter model."
The Mongolian Government requested the handover of the military radios on condition that they
would be used for peacekeeping operations in October 2006, when a senior South Korean defense
ministry official visited Mongolia, he added. “The transfer will not only strengthen military ties
between the two nations, but also help Korea export its defense products to Mongolia," a defense
ministry official said. South Korea also offered military uniforms, parachutes and flack jackets to
Mongolia in 1996 and 2000.

9. Source: koreatimes
MONGOLIA LOOKS TO AUSTRALIA FOR POWER NETWORK IDEAS
The inland electricity network in Queensland, Australia could soon be replicated in Mongolia. A
Mongolian Government delegation has been meeting Ergon Energy executives to study the
company's 64,000 km of power lines in rural Queensland, known as the Single Wire Earth Return
(SWER) network. Ergon's Neil Lowry says the SWER system is the most cost-effective and reliable
way to provide electricity to rural residents.
"Mongolia is a pretty much undeveloped country in a lot of areas and they are looking at the best
means of getting supply to lots of villages and small settlements of around 700 or 800 people, so
SWER is one of the options they're really interested in," he said.
Source: ABC News
MOSCOW MAYOR OFFERS FINANCIAL HELP
The Mayors of Moscow and Ulaanbaatar recently signed a cooperation agreement for 2009-2012
under which Moscow will provide financial assistance for a new water supply source in Ulaanbaatar
and train workers in the public transportation sector.
Source: Odriin sonin
US AMBASSADOR PRESENTS SCHOLARSHIPS
US Ambassador Mark C. Minton presented scholarships to 20 students on Monday to enroll in English
language courses as part of an American program to offer language lessons outside school hours to
students in vulnerable groups. The goal is to give Mongolian students more information on U.S.
society, arts, culture, sports, customs, etc. The scholarship program has so far covered some 200
students, including 80 from Nalaikh district near Ulaanbaatar in 2008. This year, it is planned to
enroll 40 students.
Source: Montsame
EX-PRESIDENT BAGABANDI ATTENDS TIRANA CONFERENCE
Albanian Prime Minister Sali Berisha had a meeting last week with the former president of Mongolia
Natsagiin Bagabandi. The former Bulgarian president, Mr. Petar Stojanov, was also present. Both
were in Tirana to attend the proceedings of the Crans Montana Economic Forum.
The two former presidents congratulated the premier on Albania‟s achievements in the economic
and political fields which will be crowned with NATO membership in a matter of days. Mr. Stojanov
and Mr. Bagabandi emphasized that their countries fully supported Albania on its way toward
democratization and development and they also underlined that Albania set a model to developing
countries.
The premier discussed with the visiting former presidents issues relating to the visa liberalization
process with their two countries.
Source: EMportal
HERDER DONATES 26 GOATS TO HELP FIGHT THE CRISIS
A herder has donated 26 goats to the “Together against the crisis” movement launched by the
Mongolian National TV and has appealed to all fellow herders to do likewise to help the country. He
has calculated that cashmere from 1.3 million goats would contribute MNT8 billion to the state
budget. His only condition is that the money the State thus earns should be used to develop the
farming sector.
Source: en.News.mn
FULLY GROWN TREES TO BE PLANTED, NOT SAPLINGS
A horticulture expert at the Ulaanbaatar Mayor‟s office has said there are plans to plant trees about
15-20 years old, instead of saplings, to help in the beautification and greening of the city. The

10. method has been successfully used in South Korea. He regretted the popular failure to appreciate
that tree planting programs require regular care and maintenance to be successful. A sapling once
planted does not survive here on its own, and demands 25 years of constant nurture and watering.
“Mongolians do not understand this, and think just planting trees is enough. One plant here needs
60-80 liters of water, but usually it gets only 10 liters because of the laziness of those who are
supposed to care for it,‟ he said.
Last year 20 miniature gardens with fountains, trees, plants and flower gardens were built in
Ulaanbaatar. Two more will be built in each district this year.
Source: Zuunii medee
SPONSORS
ECONOMIC INDICATORS
MSE WEEKLY REVIEW
For the week ended March 27, 2009, trading activity on the Mongolian Stock Exchange (MSE) totaled
166,200 shares with 29 companies traded. Total market value of transactions was MNT 1.9 billion.
Total market capitalization of the 358 stock companies listed on the MSE was MNT 451.3 billion, and
increased by MNT 4.7 billion or 1.1% from the previous week.
The Top-20 Index increased by 53.34 points or 1.1% compared to the previous week, closing at
4,992.76 points. The MSE Composite Index increased by 29.83 points or 1.2% compared to the
previous week, closing at 2,524.41 points.
Most active stocks traded were: Khuh Gan (88,800 shares), Tavan Tolgoi (36,200 shares), APU
(13,000 shares), Genco Tur Buro (11,600 shares), and UID (2,600 shares).

11. Major share price percentage gainers were: Tavan Tolgoi (22.2%), Mon.Tsakh.Kholboo (16.6%),
Gazar Suljmel (15.0%), Evlel (14.7%), and Darkhan Khuns (13.3%). Major share price percentage
losers were: Gutal (15.0%), Zoos Goyol (13.0%), Spirt Bal Buram (12.2%), Shivee Ovoo (11.1%), and
Baganuur (8.1%).
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
February 28, 2009 *18.2% [source: NSOM]2
* year over year (yoy)
CURRENCY RATES – April 2, 2009
Currency name Currency Rate
US dollars US 1,487.23
Euro EUR 1,961.36
Japanese yen JPY 15.08
British pound GBP 2,136.41
Hong Kong dollar HKD 191.88
Chinese yuan CNY 217.63
Russian ruble RUB 43.80
South Korean won KRW 1.08
Disclaimer: Except for reporting on BCM‟s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.