September 6 2013

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 290 – September 6, 2013
NEWS HIGHLIGHTS:
Business
 Rio Mongolia copper venture replaces board members amid dispute;
 Mongolia’s Erdenes TT to mine coal coveted by Peabody, Shenhua;
 Erdenes TT to launch export from West Tsankhi;
 2013 Discover Mongolia;
 Mongolia’s MMC seeks loan maturity extensions from lenders;
 Mongolia pins coal export ranking hopes on railway;
 Korea Telecom Corp. to bring 4G wireless to Mongolia;
 Firebird enacts reverse takeover of Canadian fluorspar company;
 EBRD USD 25 million loan to boost Khan Bank’s MSME lending;
 EBRD provides microfinance loan to TransCapital;
 HBOil completes USD 5 million placement for DPRK oil rights;
 SouthGobi appoints Bold Baatar as non-executive director;
 Guildford Coal announces resignation of chairman;
 Belarusian auto firm to promote 55-ton truck for mining;
 LSE official meets with MSE in Ulaanbaatar.
Economy
 Premier stresses positive indicators in monthly economic report;
 No fiscal crisis in Mongolia, says government budget head;
 Mongolian economic downturn not likely to reverse in 2013, says MIBG;
 Minimum wage set at MNT 192,000 a month;
 Minister orders equal fees for state-owned tourist attractions;
 Mongolians see investment opportunities in North Korea;
 Mongolia and EBRD to strengthen financing in tugrug;
 Mongolia makes loan proposal to JICA for PP4 renovations;
 Private school tuitions average MNT 1.4 million;
 Back to school, back to better water and sanitation facilities;
 Copper rally loses steam as China demand falters;
 Precious metals regain haven appeal amid unrest;
 China sets tax on low-grade coal imports;
 China factory activity hits 16-month high.
Politics
 Parliament's extraordinary session rescheduled to 16-19 September;
 Mongolia looks to repeal foreign investment law;
 No need for new Minerals Law, says Parliament speaker;
 Cabinet to introduce new gold legislation;
 MPP members demand Altankhuyag's resignation;
 Kazakhstan seeks land in UB for new embassy;
 Mongolian, Russian foreign ministries make partnership agreement;
 Belarus businessmen, scientists visit Mongolia;
 FoM accepting donations for U.S. musical festival;
 Fire breaks out at Sunday Plaza market;

2.  MUST students to protest tuition hikes;
 Mongolian trees tip off WVU researchers to secrets of Chinggis Khan.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
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BUSINESS
RIO MONGOLIA COPPER VENTURE REPLACES BOARD MEMBERS AMID DISPUTE
Rio Tinto Group's Oyu Tolgoi venture, a USD 6.6 billion copper and gold project in Mongolia,
replaced three board members as it seeks to break an impasse with the country's government over
financing for the mine.
The new directors are Davaadorj Ganbold, executive director at project partner Erdenes Oyu Tolgoi
LLC, Ganzorig Temuulen, deputy director of parent company Erdenes MGL LLC, and Chuluuntseren
Otgochuluu, director-general of the Ministry of Mining‘s Department of Strategic Policy and Planning
Ganbold said. Progress at Oyu Tolgoi has stalled as the partners discuss how to finance a USD 5
billion expansion. Mongolia, which controls 34 percent, claims cost overruns are delaying future
dividends and wants the mine's underground extension funded with revenue from concentrate sales
until disagreements are resolved. That has been a subject of debate with Rio, which manages the
project through its 51 percent ownership of Turquoise Hill Resources.
―We have an intention to move this project forward, otherwise I would not accept this position,‖
said Ganbold, who was hired by Erdenes Oyu Tolgoi on 19 August. ―The problems are serious and

3. the investment is large, I don't know how long it will take to resolve these problems.‖
The three outgoing directors are Puntsag Tsagaan, Chuluun Ganbold, and Natsag Bagabandi. A
fourth Mongolian national, Galsan Batsukh, remains as chairman of the board. Changes may also
come from the Rio side. Cameron McRae, the chief executive officer of Oyu Tolgoi LLC, plans to
vacate the chief executive position by the end of his three-year contract in November, a person
with knowledge of the matter said in July.
Source: Business Week
MONGOLIA‟S ERDENES TT TO MINE COAL COVETED BY PEABODY, SHENHUA
Erdenes Tavan Tolgoi LLC will begin this year to mine Mongolia's West Tsankhi coal areas as part of
the debt-laden company's plan to ramp up output and pay off money owed to Aluminum Corp. of
China Ltd. (Chalco).
Erdenes TT will pick up a contractor in the next few months to start work at West Tsankhi with
target output of 2.6 million metric tons for 2013, Chief Executive Officer Yaichil Batsuuri said.
Erdenes TT will also mine as much as 5 million tons at its main East Tsankhi site this year, up from
2.5 million tons in 2012, he said.
A number of companies have already expressed interest in buying Erdenes TT coal from West
Tsankhi, he said. Erdenes TT plans to announce its contract miner for West Tsankhi at the end of
the month, he said. Mongolia's biggest state coal miner is seeking to boost output as it needs to
repay Chalco USD 186 million with deliveries of the fuel. Erdenes TT also owes about USD 200
million to Development Bank of Mongolia LLC, he said. The company shipped less than it planned to
China last year as growth in Asia's biggest economy slowed. Erdenes TT envisions increasing output
to 15 million tons next year, and more than 30 million tons by 2017, he said.
As production rates increase, Erdenes may still pursue some form of partnership with foreign
companies as Mongolian coal miners have no experience producing more than 10 million tons a year,
he said.
―We would like to work with one of these international mining companies,‖ such as Peabody, Anglo-
American PLC, and Chinese firms including Shenhua,‖ Batsuuri said. ―They have good management,
engineering and equipment. We need them. We would like to work with them on marketing.‖
Once Erdenes TT increases output, adds a washing plant and other infrastructure, and improves
management and efficiencies, the company will return to the idea of an initial public offering,
Batsuuri said. The share sale, which was initially planned in 2011 and estimated to raise USD 3
billion, is still about a year or two years away, he said.
Source: Bloomberg
ERDENES TT TO LAUNCH EXPORT FROM WEST TSANKHI
Erdenes Tavan Tolgoi LLC submitted to the State Commission paperwork for the permanent
commissioning of coal mining at the West Tsankhi deposit, with export expected to begin in
September.
The deposit is expected to produce three million tons of coking coal in the first year of operation,
and 20 million tons by 2017. Erdenes TT contracted the Mongolian Miners consortium for the
preparatory work leading up to mining at West Tsankhi.
Source: Udriin Sonin
2013 DISCOVER MONGOLIA
The Discover Mongolia investment forum opened on 5 September in Ulaanbaatar with a new format,
replacing the usual presentations and progress reports to some of Mongolia largest and economically
vitals projects with a series of panel discussions. During each session moderators fielded questions
to some of Mongolia's most prominent members of the business community, government and civil
society to discuss the current economic environment.
The very first session, however, was reminiscent of the traditional format, with short opening
remarks from Mining Minister Gankhuyag followed by a summary on the state of the economy and
the mining sector. The presentation from Cameron McRae was perhaps the most anticipated, given

4. it would be his last direct message to investors as the chief executive of Oyu Tolgoi and the
curtailment of development to the underground mine due to disputes with the government. After
retelling the history of the project and its benefits, McRae emphasized the importance of the
continued respect given to the 2009 Oyu Tolgoi investment agreement.
"It was seven years and five attempts to get an investment agreement in place," said McRae. "At
that point over USD 1 billion in total had been spent. Effectively, the IA [investment agreement] is
a shareholders agreement that offers stability and a business framework that everyone needs to
begin building. The IA has acted as a bond, and that is to say we all agree to ensure that we work
on common ground, respect our differences of opinion, and maximize the value of the partnership."
Panel discussions throughout the day touched on topics such as attracting investment, mitigating
environmental damage from mining, and combating corruption. From government, Vice Minister of
Economic Development Ochirbat Chuluunbat discussed the importance cooperation from with its
private partners: "In the mining sector, we see a nationalist sentiment taking root. And the
government should be building a bridge." Environment and Green Development Minister Sanjaasuren
Oyun spoke on issues related to land reclamation and spoke to the audience about a new regulation
expected to be introduced to government that would change the fee structure for water usage.
During a discussion on the governing structure in Mongolia, one noteworthy speaker from the
private sector was Graeme Hancock, chief representative in Mongolia for Anglo American PLC.
"What we're concerned about is policy stability. Big issues have resulted in policy changes rapidly
once a new government comes in," Hancock said. Batdorj Enkhbat, chief financial officer of Erdenes
Tavan Tolgoi LLC, echoed that sentiment, saying, "I agree there is policy instability. People have
said there should be freedom and election every four years. I wish the government after elections
would be consistent with decisions made by the past government. This is policy instability not
political."
Discover Mongolia comes this year amid declining inflow of foreign investment to Mongolia, a
precarious global economic climate, and slowed growth in Mongolia's top trade partner China. And
it will take the kind of level-headed debate and cooperation between civil society, government,
and the private sector seen at the forum to pull Mongolia out of its economic troubles and return
economic growth to world-beating levels.
Source: Business Council of Mongolia
MONGOLIA‟S MMC SEEKS LOAN MATURITY EXTENSIONS FROM LENDERS
Mongolian Mining Corp. (MMC) is talking to lenders about extending its debt maturities after the
company's profit swung to a loss in the first half of the year.
MMC, which accounts for 42 percent of Mongolia's coal exports to China, is negotiating an
agreement to reschedule loan repayments, Chief Executive Officer Battsengel Gotov told reporters
in Hong Kong. The company reported a net loss of USD 25.2 million for the six months through 30
June versus a USD 31 million profit the same period a year earlier, according to a statement to the
city's stock exchange.
―We are talking currently about the potential of rescheduling repayments, so pushing out the
maturities,‖ Gotov said. This will ―create a window, and we believe that, for the next six to 12
months, it will allow the company to focus on building up cash reserves.‖
Policy makers in China want to end reliance on so-called smokestack industries by boosting
domestic consumption as growth slows. Prices of coking coal have fallen this year, with the average
selling price for MMC's washed hard product sliding 29 percent in the first half versus the same
period of 2012, according to a company presentation.
MMC had short and long-term debt outstanding and USD 128.6 million cash as of 30 June, according
to filings to the Hong Kong Stock Exchange. The debt includes USD 20 million borrowed from Golomt
Bank of Mongolia LLC via a loan which matures next month, plus USD 20 million from Trade and
Development Bank (TDB) of Mongolia LLC, which is slated for repayment by December. MMC also has
USD 600 million of bonds due March 2017, data compiled by Bloomberg show. The notes pay an
8.876 percent coupon and yielded 22.9 percent as of 4:05 p.m. in Hong Kong. Net financing costs
totaled about USD 38.6 million in the first six months of the year compared with USD 5.8 million in

5. the same period of 2012. The company plans to boost its cash position by selling a road used for
coal transport to the government and by focusing on reducing costs, Gotov said.
Source: Bloomberg
MONGOLIA PINS COAL EXPORT RANKING HOPES ON RAILWAY
Mongolia will have a better chance of regaining its position as the top exporter of coal used to smelt
steel in China after a railway is completed in late 2015, according to the chief executive of
Mongolian Mining Corp. (MMC)
―Competitiveness of Mongolian coal is strongest in the China market due to its geographical
proximity, but it has been hampered by the major obstacles of transportation,‖ said Battsengel
Gotov. ―With the expected completion of a railway by the end of 2015, Mongolia will make a
comeback.‖
Gotov made the comment after the company posted a net loss of USD 25.2 million for the first half
of the year, against a profit of USD 31 million a year earlier, due to lower coal prices and higher
finance costs. Mongolia lost its leading export position to Australia in the first half of the year with
its coking coal exports to China falling 36 percent to six million tons. Australia's exports to China
doubled to 13.3 million tons. Despite the shorter distance to China's steel mills, a lack of efficient
transport by rail meant that Mongolian coal trucked to the Chinese border lost market share to
seaborne Australian coal.
Mongolia gained the top position in 2011 and retained it last year, after floods in 2011 and labor
disputes last year reduced production and exports from Australia. CLSA's head of resources equities
research said Australia's share of the Chinese market jumped to 37.7 percent in the first half of this
year from 26.2 percent for the whole of last year, while Mongolia's share had dropped to 17 percent
from 35.7 percent.
MMMC was the only miner in the nation to have increased its exports in the first half, by 32 percent,
Gotov said. It was more competitive than its domestic rivals because it had coal washing and
processing facilities that added value to raw coal and helped it soften the blow from a 19.3 percent
year-on-year fall in average selling prices in the first half of the year to USD 79 a ton.
Source: South China Morning Press
KOREA TELECOM CORP. TO BRING 4G WIRELESS TO MONGOLIA
The Cabinet of Ministers on 30 August authorized a memorandum to be established between the
Mongolian government and South Korea's Korea Telecom Corp. (KTC)
The partnership would introduce 4G LTE technology, allowing a major upgrade in Mongolia's
wireless capacities. KTC has held 40 percent of the parastatal organization Mongolian
Telecommunication Company since 1995. KTC has already launched the technology in Korea.
Source: Montsame
FIREBIRD ENACTS REVERSE TAKEOVER OF CANADIAN FLUORSPAR COMPANY
Prima Fluorspar Corp. announced on 30 August its entrance into a non-binding letter of intent with
three funds managed by affiliates of New York-based Firebird Management LLC, to negotiate the
purchase of holding companies through which Firebird controls its 99.8 percent ownership stake in
Berkh Uul JSC.
Berkh Uul owns the Delgerkhan fluorspar mine in Khentii Aimag. The transaction would grant
Firebird a controlling stake in Prima, which would emerge as a significant fluorspar company with a
diversified portfolio of fluorspar assets. The transaction will be considered a reverse takeover of
Prima by Firebird, and will result in Prima's stock being halted from trading on the TSX Venture
Exchange.
"As a result of a disciplined sourcing approach, we identified the Berkh Uul as an ideal acquisition
target. This transaction provides the potential for Prima to become a near-term producer,‖ said the
president and chief executive of Prima, Robert Bick. ―The consolidation of the Delgerkhan mine in
Mongolia with our Liard Fluorspar Property in Canada will position Prima as a potential global
fluorspar producer and supplier."

6. Delgerkhan has an indicated resource of 6.6 million tons of resources, with an inferred resource of
three million tons. China, Berkh Uul's target market, is expected to be a net importer of fluorspar.
Prima has an experienced management team and industry partnerships set to drive activity.
Source: Prima Fluorspar Corp.
EBRD USD 25 MILLION LOAN TO BOOST KHAN BANK‟S MSME LENDING
The European Bank for Reconstruction and Development (EBRD) and Khan Bank LLC are teaming up
to develop an innovative financial instrument for the Mongolian market under the rubric ―value
chain finance,‖ to improve access to finance for small businesses and to help strengthen value
chains in the country.
While a major portion of the USD 25 million loan will be dedicated to loans for the financing of
micro, small and medium-sized enterprises (MSMEs), USD 5 million will be invested in the
development of value chain finance. This kind of financial mechanism exists in other developing
countries to support SMEs, especially in agriculture, but also in manufacturing in more developed
countries. The instrument allows smaller suppliers and distributors doing business with big
corporations to obtain cheaper financing, thanks to credit enhancement support from the
corporations.
―Together with the EBRD, we hope to improve access to finance for micro, small and medium-sized
enterprises that work with large corporations as suppliers or distributors,‖ said Norihiko Kato, chief
executive of Khan Bank, during the signing ceremony. ―Value chain financing will promote the
linkage between suppliers and distributors, and the large corporations within a value chain, and this
will ultimately make the whole chain more resilient. We are also pleased to be able to offer our
MSME clients more financing thanks to the EBRD loan.‖
Source: European Bank for Reconstruction and Development
EBRD PROVIDES MICROFINANCE LOAN TO TRANSCAPITAL
The European Bank for Reconstruction and Development is supporting micro and small businesses in
Mongolia with a loan to a microfinance institution, TransCapital. The loan of USD 1 million
equivalent will be provided in the tugrug.
―Strengthening small businesses by improving their access to finance is one of our priorities in
Mongolia, and we have already provided over USD 107 million of financing for MSMEs directly and
through credit lines to local banks,‖ said EBRD President Suma Chakrabarti. ―But this is our first
cooperation with a non-banking financial institutions dealing with microfinance in Mongolia.
TransCapital's network will allow EBRD financing to reach micro-enterprise around the country—
some of which, we hope, will grow into small and medium-sized companies.‖
Importantly, the loan will be denominated in the local currency, allowing entrepreneurs who sell
their goods and services in local currency to avoid foreign exchange rate risk. The loan, which
comes under the EBRD Early Transition Countries Initiative, will be complemented by a technical
cooperation program for training advising and assisting TransCapital's management and staff in
relevant financial areas.
Source: European Bank for Reconstruction and Development
HBOIL COMPLETES USD 5 MILLION PLACEMENT FOR DPRK OIL RIGHTS
HBOil JSC, a specialty oil recycling company, announced the successful placement of a USD 5
million convertible loan for the acquisition of company with onshore oil rights in North Korea.
The Ulaanbaatar-listed oil firm acquired equity of Malaysia's Ninox Hydrocarbons Berhad, which
owns 20 percent of the shares in the capital of KOEC International Inc, [KOECII] a joint venture with
the national upstream oil company of North Korea. KOECII holds the rights for exploration,
development, and production of hydrocarbons of all onshore North Korea, refurbishment of the
Sungri Oil Refinery on the east coast of North Korea, import of crude oil into the Rason Special
Economic Zone for processing and export of the refined petroleum products there from; and
investments ancillary to the creation of the first vertically integrated oil company in North Korea.
―We are pleased to announce the successful closing of the First Placement and the completion of

7. the acquisition of an indirect 20% share holding in KOECII,‖ said HBOil Chief Executive Khudree. ―I
am proud that HBOil has succeeded in closing the only financing completed by any company listed
on the MSE, so far in 2013.‖
HBOil will continue raising additional capital, by placing an aggregate of up to USD 10 million in a
second series of convertible loan financing, so that it may exercise its option on or before 16
October to acquire up to 51 percent beneficial ownership of Korex Ltd., which holds the exclusive
rights for the exploration and production of hydrocarbons in all of the East Sea of North Korea.
Mongolia and North Korea this year observe the 65th anniversary of continuous diplomatic relations
between the two countries. Mongolia and North Korea have made several bilateral economic
agreements in recent years, which will likely serve to further enhance both countries' aspirations in
Northeast Asia.
Source: HBOil
SOUTHGOBI APPOINTS BOLD BAATAR AS NON-EXECUTIVE DIRECTOR
SouthGobi Resources Ltd. announced the appointment of Baatar Bold as non-executive director on 3
September, effective immediately.
Bold, 40, currently serves as the president of international operations at Rio Tinto PLC's copper
group. Prior to joining Rio Tinto, Baatar was chief executive of Golden East LLC, a gold exploration
and mining company in Mongolia. Previously, Baatar was chief executive of Newcom LLC, where he
managed and built a diverse investment portfolio across the telecom, airline, property
management, mining services and renewable energy sectors. He held senior-level positions with JP
Morgan in London, Moscow and New York, where he acquired extensive experience in the mergers,
acquisitions and divestment arena. He is also on the Business Council of Mongolia's board of
directors.
Source: SouthGobi Resources Ltd.
GUILDFORD COAL ANNOUNCES RESIGNATION OF CHAIRMAN
Guildford Coal Ltd. announced the resignation of Peter Lindsay as chairman.
Lindsay left while noting that the transition from explorer to producer and increased
internationalization associated with ramping up of activities in Mongolia were important
achievements that had influenced his decision to step down as chairman. He agreed to transition
the role leading the Guildford Coal Queensland Development Committee, which will oversee the
development and commercialization of mining and infrastructure proposals in North Queensland,
Australia.
―The foundations have been laid,‖ said Lindsay. ―Guildford will now benefit from a new chairman
to lead the board in pursuing the next planned phase of development intended to achieve and then
grow sales of low cost, high quality coking coal from operations in southern Mongolia. At the same
time the Company will continue to advance options for its vast tenements in Queensland.‖
Source: Guildford Coal Ltd.
BELARUSIAN AUTO FIRM TO PROMOTE 55-TON TRUCK FOR MINING
The Belarusian automobile engineering company OAO BelAZ will present a mine dump truck with
the carrying capacity of 55 tons at the national expo of Belarus that will take place in Ulaanbaatar,
Mongolia from 5 to 8 September, BelAZ representatives said.
BelAZ's booth will feature advertising and information materials about the company while the open-
air site will showcase a full-scale specimen of the mine dump truck BelAZ 7555B with the carrying
capacity of 55 tons.
―Mongolian companies are interested in products of a Belarusian delegation to Mongolia in
September.‖
Mongolian customers are familiar with the BelAZ trademark. They have a long record of operating
and maintaining Belarusian vehicles. At present, Mongolia uses 178 BelAZ vehicles. Mine dump
trucks with the capacity of 30 to 240 tons and other special vehicles are used for coal mining
operations. In Mongolia BelAZ's official representative, the company United Belaz Machinery also

8. offers after-sales service.
Source: Belarusian Telegraph Agency
LSE OFFICIAL MEETS WITH MSE IN ULAANBAATAR
The London Stock Exchange's (LSE's) head of global business development, Ms. Antonella Amadei,
visited Mongolia to discuss progress made at the Mongolian Stock Exchange (MSE).
Amadei met with government officials to share opinions and advise on further development.
Amadeus voiced confidence in the long-term possibilities for the LSE's partnership with the MSE and
talked of expanding their cooperation.
The London Stock Exchange first signed its three-year cooperation agreement in April 2011. The
agreement has resulted in rule and regulation reformation, the launching of the Millennium IT
trading platform, and the training of 120 personnel from the MSE.
Source: Mongolian Stock Exchange JSC
ECONOMY
PREMIER STRESSES POSITIVE INDICATORS IN MONTHLY ECONOMIC REPORT
Prime Minister Norov Altankhuyag pointed out positive indicators in the latest monthly report by the
National Statistical Office of Mongolia as a means of diffusing fears of an impending economic crisis
in the country.
Altankhuyag noted that the decline in foreign investments resulted in part from an investment
freeze by gold mining companies while Parliament sorts out the Law on the Prohibition of Mineral
Extraction and Exploration at Headwaters and Forestry. The second was the depreciation of the
tugrug against the U.S. dollar.
Altankhuyag brushed off concerns about the depreciating tugrug, saying ―everybody knows that
before the Lunar New Year and the academic year the currency rates change.‖
Source: Montsame
NO FISCAL CRISIS IN MONGOLIA, SAYS GOVERNMENT BUDGET HEAD
The head of the Standing Committee on Budget has denied assertions that Mongolia may be facing a
fiscal crisis, claiming that the deficit stands below 1 percent of GDP.
Ts. Davaasuren, who is also an MP, denied rumors that amendments to the 2013 budget would be
discussed during the extraordinary session of Parliament, scheduled for 16 September. He said that
at the end of July the deficit stood at MNT 145 billion, or less than 1 percent of GDP, while the
Fiscal Stability Law only mandates amendments to the budget once it reaches 5 percent. Although
revenue for 2013 has fallen short of expectations, said Davaasuren, ―it doesn't mean that our
economics have gone into crisis.‖
The committee chief noted that Mongolia had over MNT 800 billion in bonds at its disposal in the
event of a serious deficit and USD 300 million in the Stability Fund. He also said Mongolia could
provide stimulus to companies to generate more tax revenue.
Source: Montsame
MONGOLIAN ECONOMIC DOWNTURN NOT LIKELY TO REVERSE IN 2013, SAYS MIBG
Mongolia may continue to see weakening economic performance for the remainder of 2013. With a
current exchange rate against the U.S. dollar of MNT 1,616, some economists and market bloggers
are predicting an exchange rate of MNT 2,000.
The source is predicting more negative implications for the Mongolian public to follow before the
economic ―crisis‖ passes. In addition to the impact on the Mongolian people, companies will also
continue to face hardship.
―We know of many corporations both in mining and other sectors that have been forced to downsize
due to a decrease in business activity. To this end, we believe that the widely publicized 1,700 jobs
cut at Oyu Tolgoi's underground development could be the tip of the iceberg.‖

9. During the month of July, the unemployment insurance fund incurred MNT 8.1 billion in costs, a 153
increase from the same period last year and 80 percent more than the same period in 2011. Overall
the profitability of the fund has sunk to 8.99 percent in 2012 compared to 60 to 80 percent
profitability in previous years. The source predicts inflation to increase moderately in the near term
due to the weakness of the local currency and Mongolia's dependence on imports.
Overall foreign trade has fallen 7.5 percent during the first eight months of 2013 compared to the
same period of the previous year. However, notably, imports have fallen by 8.1 percent compared
to the fall in exports, which reached 6.6 percent. A drop in imports for domestic consumption is
likely, said the Source, and may lead to an increase in inflation, which would likely be supply
driven. The Consumer Price Index (CPI) at the end of July was 8.3 percent annualized. However,
the Source expects CPI to climb up to the 9 to 10 percent range by the end of 2013, which is higher
than Mongol Bank's target rate of 8 percent.
Source: Mongolian Investment Banking Group
MINIMUM WAGE SET AT MNT 192,000 A MONTH
Minimum wage rose by 36.7 percent on 1 September.
The raise of minimum wage in Mongolia to MNT 192,000 from MNT 140,400 a month was decided last
April following negotiations with the Confederation of Trade Unions and the Trilateral National
Committee on Labor and Social Consensus. According to the Ministry of Labor, some 1 million
citizens are employed in Mongolia, with 8.4 percent earning at the minimum wage.
Source: UB Post
MINISTER ORDERS EQUAL FEES FOR STATE-OWNED TOURIST ATTRACTIONS
Tourism Minister Ts. Oyungerel has ordered that all state-owned companies should charge foreign
and domestic tourists equally in Mongolia. Mongolia has seen 464,000 tourists since 2010, with 69.6
percent of those visiting on a tourist visa coming for leisure.
Source: Udriin Sonin
MONGOLIANS SEE INVESTMENT OPPORTUNITIES IN NORTH KOREA
Mongolian businessmen are increasingly looking at North Korea as an investment destination for its
mining sector.
Two Mongolian delegations visited North Korea this year to seek out investment opportunities,
capitalizing on the friendly relations between the two nations. In 2012 delegations for the North
Korean Embassy in Ulaanbaatar participated in investor forums while Mongolia is planning to do the
same for 2013.
Source: Udriin Sonin
MONGOLIA AND EBRD TO STRENGTHEN FINANCING IN TUGRUG
The European Bank for Reconstruction and Development and the Bank of Mongolia have taken a key
step toward the development of the country's local currency money and capital markets.
On 2 September, EBRD President Suma Chakrabarti, central Bank Governor N. Zoljargal and Deputy
Finance Minister S. Purev signed a memorandum of understanding under the EBRD's Early Transition
Countries (ETCs) Local Currency Lending Program. According to the Memorandum, the Ministry of
Finance and Bank of Mongolia confirm that Mongolia wishes to be part of a targeted local currency
risking-sharing program for ETCs, supported by the EBRD and international donors.
The program has two main features. First, the EBRD and Mongolian authorities will agree on reforms
and an action plan to develop local capital markets and to enhance opportunities for local currency
financing in the medium-to-long term. Second, donors will share the loan risk, allowing the EBRD to
provide local currency loans at affordable interest rates. Borrowers will be micro, small and
medium-sized enterprises that sell their goods and services in local currency, and are thereof most
vulnerable when borrowing in foreign currencies. EBRD will provide loans either indirectly to MSME's
through local partner banks or directly to local corporates.
―This agreement between Mongolia and the EBRD is a very important step in our joint efforts to

10. deepen the tugrug capital markets,‖ said EBRD President Sir Suma Chakrabarti, during the signing of
the memorandum.
―Mongolia is now the sixth country where our ETC Local Currency Program will be able to improve
access to local currency loans for local companies. With the signing of this memorandum, the EBRD
can potentially double its financing to SMEs in Mongolia.‖
Source: European Bank for Reconstruction and Development
MONGOLIA MAKES LOAN PROPOSAL TO JICA FOR PP4 RENOVATIONS
The government has drafted a USD 24.5 million loan proposal for the Japan International
Cooperation Agency (JICA) to enhance the capacities of Power Plant No. 4.
The loan has been proposed to have a 40-year repayment period with 0.3 percent interest a year.
Renovations would include the installation of a smoke stacks in the plant's furnaces to save on coal
consumption and reduce operations failures. The smoke stacks would reduce consumption of oil
used for the plant's turbines. The proposal also promises to reduce power energy costs and reduce
carbon dioxide emissions.
Renovations would last until 2017. Energy consumption in the country is expected to rise by 5 to 7
percent over the next five years, with further increases in energy demand to likely follow.
Source: UB Post
PRIVATE SCHOOL TUITIONS AVERAGE MNT 1.4 MILLION
Tuition for private schools averaged MNT 1.4 million for the 2013-2014 school year.
The International School of Ulaanbaatar topped the list, charging USD 30,790 a year. That compares
with USD 7,000 a year for Elite School and MNT 8 million for Orcholon, MNT 3.5 million to MNT 4
million for Mon-Turk School, and MNT 5 million for Hobby School. Santis, Olonlog, and Erel Schools,
magnet schools for math, will charge MNT 3 million. Russian School No. 14, Logarifm School, and
Shine Mongol School, and Goete School will charge between MNT 2 million and MNT 2.6 million.
Ten percent of Ulaanbaatar's 185,192 secondary school students are enrolled in private schools.
Private schools offering the Cambridge system curriculum ranged in tuition from USD 5,000 to USD
8,000 for the school year. Three public schools offer the Cambridge system as well will have no
tuition fees. International School is the only secondary school in Mongolia to offer an international
program, and receives funding from the U.S. State Department.
Source: Udriin Sonin
BACK TO SCHOOL, BACK TO BETTER WATER AND SANITATION FACILITIES
World Water Week 2013 is being held from 1 to 6 September. An estimated 768 million people still
use unsafe drinking water sources. There are major disparities in availability of water among
regions, and between poor and wealthy, and rural and urban.
Khaliunaa, 13, and her sister Bulganaa, 9, live in Tarialan Soum, Khuvsgul Province, a remote area
in the north of Mongolia. Their father and mother are nomadic herders—the family move several
times a year in search of better pastureland for the sheep, goats, horses and cows that are their
livelihood. Right now, the family is in their summer home, a small wooden cabin on the steppe,
some 12 kilometers from the community center. In the winter, the family shelter some 28
kilometers away. During the school year, the girls attend boarding school, together with the other
nomadic children.
At the Tarialan school dormitory, the staff has started preparing for the coming school year. In the
kitchen, a cook stirs rhubarb jam in a large saucepan, and collects the juice and decants it into
bottles for drinking. When school is in session, the children will wake at 6 a.m. They'll exercise,
have breakfast and brush their teeth. But school staff says there are not enough taps and water for
all the children to clean their teeth at once.
―We conducted an assessment of the school with the teachers and the children,‖ said school
manager Oyun-Erdene. ―We found that the main issue was the lack of clean water. It has to be
fetched, which is particularly hard for the dormitory children. Also, the toilets are very far from the
dormitory. It is difficult for younger children to use them in the winter.‖

11. UNICEF, in consultation with the provincial authority, has selected Tarialan school, including the
dormitory, for upgrades to the WASH facilities. These improvements are part of UNICEF's strategy to
address inequality by focusing on the most vulnerable children and communities. Tarialan is one of
the target schools under the Australian Government Overseas Aid Program (AusAID)-funded WASH in
schools and kindergartens project.
Source: UNICEF
COPPER RALLY LOSES STEAM AS CHINA DEMAND FALTERS
A month-long copper rally tied to China's improving economy is running out of steam as signs grow
that Chinese manufacturers are cutting back on demand. Copper is a major commodity for
Mongolia, with Oyu Tolgoi being the premier mine.
Copper surged about 7.8 percent in the first half of August, but the rally has since stalled and prices
are down 2.6 percent from their high last month. The metal is seen as a key barometer for Chinese
growth because of its wide use in making items ranging from power cables to automobiles. The
recent slide potentially muddies the outlook for Asia's biggest economy, with data elsewhere
pointing to an accelerating economy. One leading indicator of waning appetite is that stocks of
metal at warehouses in Shanghai have stabilized at around 400,000 tons after falling from as high as
a million tons earlier this year. In London, copper inventory has been rising. It has been up over the
past three days, according to the London Metal Exchange. Another sign is that the premium for
copper in China is falling, which analysts say also bodes badly for futures. The extra charge to buy a
metric ton of copper in China compared with the LME has dropped to around USD 168 from as high
as USD 230 in early August, according to information provider Shanghai Metal.
―We're not very bullish on copper prices going forward,‖ said Liu Jiang, a purchasing manager at a
Zhejiang-based power-cable maker that supplies China State Grid Corp., the world's biggest utility.
He sees demand from power cable producers, which account for half of copper consumption in
China, remaining flat until the end of this year after a flurry of activity in the first half.
A potential glut from rising copper supply may add to the metal's woes, says Barclays, which
projects prices will fall in the fourth quarter. The U.K.-based investment bank estimates there will
be a 418,000-ton global copper surplus in the second half of this year compared with a 307,000-ton
market deficit in the first half.
Source: Wall Street Journal
PRECIOUS METALS REGAIN HAVEN APPEAL AMID UNREST
Gold and silver prices rose to their highest levels in several months as the precious metals regained
some of their appeal as havens amid the threat of western military action in Syria. Gold is a major
commodity in Mongolia, with the pending start of the Boroo gold mine being one of the country's
most noteworthy deposits.
Gold prices touched a fresh three-month high of USD 1,433.31 a troy ounce while silver hit a four-
month high of USD 25.08, although both metals had given up much of the day's gains by later
afternoon in London.
―The growing Middle East crisis has contributed to gold's renewed haven appeal,‖ said analysts at
Metals Focus, a consultancy.
The increased likelihood of military action in Syria has helped maintain a short-covering rally in gold
and silver markets that has seen the metals move sharply higher in recent weeks. Hedge funds and
other investors had built up large bets on lower prices earlier in the summer, believing that the U.S.
Federal Reserve's likely move to scale back its quantitative easing program would have trigger a fall
for the precious metal. But since their June lows gold and silver prices have risen 21.4 percent and
37.9 percent, respectively.
―Gold and crude oil has a historical positive correlation and it tends to strengthen during periods of
rising geopolitical tensions, most notably from the Middle East,‖ said James Steel, precious metals
analyst at HSBC. However, he warned that the rally may not last, with investors remaining wary
after gold's dramatic collapse in the first half of the year. ―Unless things get worse—which they very
well might do—the market has not got a reason to go higher,‖ Steele said. ―It's a wait-and-see

12. attitude at the moment.‖
Source: Financial Times
CHINA SETS TAX ON LOW-GRADE COAL IMPORTS
China, the destination for most of Mongolian coal, has announced a 3 percent tax on imports of
steam coal with low calorific value but is yet to spell out details of its applicability.
China's State Council, the country's cabinet, last week approved plans to implement a 3 percent
tariff on lignite imported from countries under the most-favored nation trade status, according to a
statement from the finance ministry, and will take effect on 30 August. The statement did not
specify what grades of lignite, in terms of heating value per kilogram, would be affected, although
industry sources said Chinese customs statistics classify coal with a calorific value of between 3,800
to 4,000 kilocalories per kilogram as lignite.
However, trade sources questioned if China would be able to impose import tariffs on Indonesian
coal, since a free trade agreement between China and the Association of Southeast Asian Nations
(ASEAN) has brought import tariffs for lignite to zero since the start of 2012. The import tax on
other coal has been scrapped since 2008.
―China is a signatory of the FTA and Beijing has promised zero import tariffs for all ASEAN member
countries. I don't think they can arbitrarily change that,‖ said a Shanghai-based coal trader.
Beijing's move to tax imports comes after the domestic coal association lobbied the government in
May to ban imports of all low-grade coal, citing the impact on local miners. China imported 187
million tons of coal, including lignite, in the first seven months of 2013. Total lignite shipments
stood at 35.97 million tons during the period, up about 12 percent from a year ago. With imported
lignite currently priced at about USD 47 a ton on a landed basis, the newly imposed tariff would add
about CNY 8 a ton to its cost, industry sources said.
Source: Mining Weekly
CHINA FACTORY ACTIVITY HITS 16-MONTH HIGH
China's manufacturing activity accelerated in August, giving policy makers more room to continue
much-needed structural reforms for the world's second largest economy. China's economic growth is
directly proportionate to growth in China, as it consumes the minerals extracted for Mongolian
mines to build its infrastructure and produce goods.
The official manufacturing manager's index rose to 51.0 in August—up from 50.3 in July—the best
reading in 16 months, the China Federation of Logistics and Purchasing said Sunday. The data shows
the economy's performance may prove slightly stronger than expected in the third quarter after
slower growth in the first half of the year, analysts said.
―This was better than expected, and it reflects a rise in domestic demand,‖ Bank of America Merrill
Lynch Economist Lu Ting said. ―We could have an upside surprise in economic growth in the third
quarter—it could be better than our forecast of 7.6 percent [on year].‖
It was the second month in a row the reading held above the 50-point level that separates
expanding from contracting activity. It was also higher than the median forecast of 50.6 by eight
economists polled.
China has targeted growth of 7.5 percent for the year, but the relatively sluggish expansion in the
first half—7.5 percent in the second quarter after 7.7 percent in the first three months—raised
questions about the likelihood of reaching this goal. Officials more recently have shown a little
more confidence in the economy's performance.
―We are confident we will reach 7.5 percent growth in 2013 with a Consumer Price Index that is
lower than 3.5 percent,‖ Vice Minister of Finance Zhu Guangyao said last week.
Economic data in July showed signs of stabilizing. Industrial output turned higher, while exports
were up 5.1 percent. China's industrial enterprises also saw profits climb by 11.6 percent year-on-
year in July. The August sub-index for new orders climbed 1.8 percentage points from the previous
month to 52.4. Imports were strong, as were raw-material input prices, pointing to improving
domestic demand. Export orders were slightly better, while employment inched higher.
Source: Wall Street Journal

13. POLITICS
PARLIAMENT'S EXTRAORDINARY SESSION RESCHEDULED TO 16-19 SEPTEMBER
The Parliament Secretariat pushed back the date for an extraordinary session of Parliament 10
days, to be held from 16 to 19 September.
The session called by the National Security Council is intended to give Parliamentarians the
opportunity to take quick action against the deteriorating economy before the fall session formally
commences in October. Topics for discussion during the session are a new investment law and a
proposal that would create a strategy for resolving the current economic issues.
Source: Zuunii Medee
MONGOLIA LOOKS TO REPEAL FOREIGN INVESTMENT LAW
The Mongolian government looks set to repeal its contentious foreign investment law after just one
year as inflows dry up and economic growth grinds to a halt.
Foreign direct investment fell an estimated 20 percent last year and is believed to have dropped a
further 43 percent this year. Concerned that the law is hurting Mongolia's reputation as an
investment-friendly frontier economy, officials say they want to turn back the clock.‖
―We'll bring back the old system. The Mongolian investment environment is damaged,‖ said
Chuluuntseren Otgochuluu, director of planning at the Ministry of Mining.
According to government officials, a new law is being discussed by the Cabinet and will be
presented to a specially convened session of Parliament this month.
The proposed changes will undo many of the restrictions placed on foreign investment in the so-
called strategic sectors, including mining, banking and finance, media and telecommunications. In
May last year, Mongolia passed the Strategic Entities Foreign Investment Law, under which an
investor acquiring more than 33 percent of a firm in a strategic sector would require government
approval. An acquisition of more than 49 percent and more than MNT 100 billion would require
parliamentary approval. The law was passed just before the last general election following concerns
among political parties that the country's mining resources were being sold cheaply to foreigners.
―The Chinese mining companies want to buy Mongolian mining companies, but we don't want that,‖
said Otgochuluu. ―They have a different system, a state capitalism. We want to protect the small
and medium-sized enterprises. Mongolia is trying to have an economy dominated by private
ownership. We want prices to be set by market mechanisms. The government is also considering a 7
to 10-year tax benefit window for companies investing more than USD 10 million,‖ he added.
Source: South China Morning Post
NO NEED FOR NEW MINERALS LAW, SAYS PARLIAMENT SPEAKER
Parliament Speaker Zandaakhu Enkhbold has spoken in favor of retaining the 2006 Minerals Law and
scrapping the law proposed by President Tsakhia Elbegdorj.
―I think that the Minerals Law, which was endorsed in 2006, is a reasonable and good law,‖ said
Enkhbold. ―Instead of the president's initiated one, the 2006 Mineral Law is suitable for sustainable
use, if we amend it.‖ Enkhbold added that he believed the mining community would agree with
him.
Parliament is expected to discuss the Minerals Law bill in the fall session of Parliament. The
amendment will regulate exploration and mining activities.
Source: Udriin Sonin
CABINET TO INTRODUCE NEW GOLD LEGISLATION
The Cabinet is discussing a bill to submit to Parliament that would improve transparency in the
trade of gold.
The Bank of Mongolia has seen a decline in gold reserves, which has been detrimental to the
strength of the tugrug. Lawmakers hope the law would bring an additional 20 tons of gold
production, with a total of 150 tons of gold extracted within five years.
Source: Montsame

14. MPP MEMBERS DEMAND ALTANKHUYAG'S RESIGNATION
A reform sect within the Mongolian People's Party (MPP) demanded the resignation of Prime Minister
Norov Altankhuyag at a press conference on 30 August.
The Committee for Reform group within the MPP said it is demanding the prime minister's
resignation within 14 days of their announcement for leading the country into economic decline and
creating risks to national security. The group also blamed Altankhuyag for the uncertainty
surrounding both the Oyu Tolgoi and Tavan Tolgoi mines, the 10,000 out-of-work miners in the
country, and the waste of funds generated from the USD 1.5 billion Chinggis bond issued in 2012.
Source: News.mn
MONGOLIAN, RUSSIAN FOREIGN MINISTRIES MAKE PARTNERSHIP AGREEMENT
A Russian delegation came to Mongolia where Mongolian and Russian authorities signed an
agreement on a partnership for 2013 and 2014 between their foreign ministries.
Leading the Russian delegation was Igor Morgulov, deputy foreign minister. He exchanged views on
bilateral economic matters and political relations during a meeting with Vice Foreign Minister D.
Gankhuyag. The meeting ended with the signing of the partnership agreement.
Source: News.mn
KAZAKHSTAN SEEKS LAND IN UB FOR NEW EMBASSY
Ulaanbaatar Mayor E. Bat-Uul has signaled in the affirmative for Kazakhstan's request for land to
establish an embassy in Ulaanbaatar.
Kazakh Ambassador K. Koblandin met with Bat-Uul on 27 August to discuss the proposition of a
Kazakh Embassy in Mongolia. The Ulaanbaatar Mayor promised to tackle all matters related to the
establishment of an embassy, noting the close ties between Mongolia and Kazakhstan and their two
capital cities. Koblandin thanked the mayor for his promise and said Kazakhstan had intended to
name one of its streets after Ulaanbaatar.
Koblandin also said that a ―cultural days of Astana‖ event would soon be held in Ulaanbaatar.
Source: Montsame
BELARUS BUSINESSMEN, SCIENTISTS VISIT MONGOLIA
Nearly 60 businessmen and scientists of Belarus visited Mongolia, said the Belarusian Chamber of
Commerce and Industry.
The Belarusian delegation includes top managers and heads of some of Belarus' leading businesses.
The program of the visit envisaged the first Belarus-Mongolian business forum on 5 September, with
the participation of Belarus Premier Mikhail Myasnikovich. The parties are expected to sign a
number of agreements, memorandums of understanding and contracts. The Belarusian Chamber of
Commerce and Industry is expected to sign an agreement on cooperation with the Mongolian
National Chamber of Commerce and Industry. National Leasing Service LLC, a subsidiary of Hera
Equipment LLC, and Belarus' OAO Promagroleasing are set to ink international leasing agreements.
―We plan BelAZ rock hauler supplies as well as the equipment of Minsk Automobile Plant as part of
pilot international leasing contracts,‖ the BCCI said.
Belarus and Mongolian businessmen are expected to hold a business matchmaking session and
discuss issues related to bilateral trade and investment cooperation, supplies of Belarus products to
Mongolia.
Source: Belarusian Telegraph Agency
FOM ACCEPTING DONATIONS FOR U.S. MUSICAL FESTIVAL
Friends of Mongolia (FoM) is aiming to raise USD 1,500 to send Mongolia performers to Middletown,
Ohio for the music event to be held from 5 to 6 October.
Middfest International Festival is held annually in Middletown, Ohio, focusing on the culture and
music of a particular country. In 2008, the country was Mongolia, raising USD 22,000 to send 12
students from Khankhongor School of the Performing Arts in Mongolia and 14 students from the
MSNCA to the festival. This year the Middfest 30 Year Retrospective‘s organizers are inviting the

15. MSNCA students from Virginia to come and perform again.
Friends of Mongolia is still accepting donations for the event.
Source: Friends of Mongolia
FIRE BREAKS OUT A SUNDAY PLAZA
A fire broke out on the seventh floor of the Sunday Plaza market on the evening of Friday, 31
August.
The fire, which follows a fire at the groceries section of the nearby Narantuul Market, only
damaged the roof and two cafes located at the seventh floor. The flames only lasted two hours
after breaking out at 10 p.m. that evening thanks to the quick actions of fire fighters. Authorities
from the National Emergency Management Agency (NEMA) said at a press conference that the fire
was an accident.
Tenants affected by the recent fire tragedy at Narantuul Market have initiated a new campaign for
support to fire victims. They said that they are eager for the 600 police officers working security at
Narantuul to move on so they can begin rebuilding.
Source: Udriin Sonin
MUST STUDENTS TO PROTEST TUITION HIKES
Student representatives of the Mongolian University of Science and Technology (MUST) announced
at a press conference plans to protest outside the offices of the university's administration building
to speak out against what they say are unjustified tuition hikes.
―For this academic term, tuition fees increased 13.9 percent, and the annual rent for student
dormitories increased by 70 to 150 percent,‖ said B. Myagmardorj, president of the student union.
He added, ―Students live in dorm rooms covered in mold and dust. They are so freezing cold in the
winter that students have to wear their coats at all times. The only change we see and feel at the
university is the heavy burden of an increased tuition fee,‖ he added.
Students blame the tuition hikes of nearly 50 percent over the last three years on careless spending
by the administration. Myagmardorj pointed to ―lavishly furnished‖ offices, and redundant
personnel.
The student union president said he was thrown out of board meetings when attempting to attend,
a requirement of the Law on Education. Further, none of MUST's directors reportedly attended a
conference organized by students for the discussion of tuition fees. Myagmardorj said when they
realized none of the board members would show up they proceeded to march to office of university
Director T. Namnan to state their demands. He said Namnan agreed to communicate their demands
to the board, but failed to turn up for a meeting scheduled for 2 September.
―Although the Student‘s Union of MUST, which represents the voices and views of students, made
numerous requests and demands to the board of directors of MUST to listen to the views of its
students on the matter of an increase in tuition fees, they did not want to listen,‖ he said.
Source: UB Post
MONGOLIAN TREES TIP OFF WVU RESEARCHERS TO SECRETS OF CHINGGIS KHAN
West Virginia is well known for its research in the fields of coal and natural gas, but for the past
several years, trees in Mongolia have taken the spotlight for some researchers. One professor is
using dendrochronology to come up with new ideas about the rise of Chinggis Khan.
Associate chair of the geography department at WVU, Amy Hessl, said her interest in Mongolia came
after a visit there while she attended some workshops, initially to study climate change and forest
fires. While she was there, she and her team came upon trees growing on an 8,000-year-old lava
field. It was there where she discovered what are essentially preserved natural records of times
gone by.
―We are looking at a cross section of a log called sinus siberica—so Siberian Pine that we collected
from a lava flow in central Mongolia,‖ said Hessl. ―And the inner ring date of this tree is 96 BC. So
the first year of the tree is 96 BC. And this was the first piece of wood that we dated the broke the
BC-CE boundary so we were pretty excited about that.‖

16. So collecting hundreds of samples of cross sections of logs, and studying the patterns there, Hessl
and her team noticed an anomaly. Around the 13th century there was a period of about fifteen
years when it must have been exceedingly wet in Mongolia—which happens to coincide with the
initial growth of the Mongol Empire. Hessl said historians guess that one reason the empire spread
so effectively might have been because of their horses. It is speculated that each warrior had three-
to-five at their disposal. Warriors could travel long distances and would drink mare's milk or dry it
out to a paste, keep it in a pouch and then simply add water when they needed it, or even make a
small cut on one of the horse's veins and drink the blood or mix it with the milk for emergency
nourishment.
Hessl said, now armed with this dendrochronological data, she hopes to collaborate with European
and Mongolian archaeologist to date various sites throughout Mongolia.
Source: West Virginia Public Broadcasting
ANNOUNCEMENTS
DISCOVER MONGOLIA, 5-7 SEPTEMBER, ULAANBAATAR
The 11th annual Discover Mongolia international investors' forum is being held from 5 to 7
September in Ulaanbaatar, Mongolia.
The forum is Mongolia's main venue for the widest international exchange on Mongolia's minerals
developments. Throughout its 10 years of history, the forum has become one of the hallmark events
in Mongolia's minerals exploration and development sector. The primary mission of the forum is to
support the development of the Mongolian mining sector by connecting people, providing
information, building networks, and realizes the importance of mining exploration sector and its
legal environment. It also acts as a bridge between the Mongolian government and private sector
investors through its "Government Hour" sessions.
BCM is a supporting organization again for this year‘s forum. For more information, log on
discovermongoliaforum.com.
___________________________________________
30TH ABA GENERAL MEETING AND CONFERENCE, 12-13 SEPTEMBER, ULAANBAATAR
The 30th Asian Bankers Association (ABA) General Meeting and Conference will be held from 12 to
13 September in Ulaanbaatar at the Blue Sky Hotel and Tower.
This year's conference will focus on the theme ―Asia: Growth Engine of the Global Economy.‖ The
two-day event aims to provide another platform for ABA members and invited experts to discuss
how major developments in the global and regional markets will impact on the Asian banking sector
and to exchange views on measures that the Asian banking sector can undertake to help sustain
growth and enable the Asia-Pacific region to play a catalytic role in the global economic growth and
recovery.
To register, complete the form and send it back to the Professional Conference Organizer c/o fax
+976 11 323581 or email abamongolia@mba.n no later than 20 August 2013. For more information
email nomindari@mba.mn or call +976 9917 7149.
___________________________________________
MINING MONGOLIA AND POWER AND RENEWABLE ENERGY MONGOLIA, 19-21 SEPTEMBER, UB
Mining Mongolia and Power and Renewable Energy Mongolia will be held from 19 to 21 September at
the Buyant-Ukhaa Sports Complex in Ulaanbaatar.
120 companies from 18 countries including pavilions from Australia, Canada, Korea and Germany
will display a wide range of technology, supplies and services for the mining and electric power
generation and transmission sector; on a scale never before seen in Mongolia. Inside and outside
displays, providing a first opportunity for buyers to see technology and learn about new mining and
electric engineering service from industry experts.
BCM is a supporting organization. Register at miningandconstructionmongolia.com or for priority

17. booking email mongolia@chinaallworld.com.
___________________________________________
TOP GOVERNMENT OFFICIALS TO ATTEND NAMBC INVESTORS CONFERENCE, 24-26 SEPTEMBER,
UB
Minister of Environment and Green Development Sanjaasuren Oyun and Ulaanbaatar Mayor Erdene
Bat-Uul will be featured speakers at the North American Business Council's (NAMBC's) 16th Annual
Investors Conference, to be held from 24 to 26 September at the Kempinski Khan Palace Hotel in
Ulaanbaatar. Registration deadline is September 6
The investors conference will celebrate the 40th anniversary of Mongolia-Canada diplomatic
relations this year. Full simultaneous interpretation will be provided. This conference is the
longest-running international investors forum in or about Mongolia, held annually in Ulaanbaatar
since 1998.
Non-members from any country are welcome. For more information visit nambc.org. Find a
registration form here.
___________________________________________
MONGOLIAN MINING SUMMIT 2013, 29-31 OCTOBER, PERTH, AUSTRALIA
Mining IQ's Mongolian Mining Summit will be held at from 30 to 31 October at Crown Perth, Western
Australia, Australia.
The Mongolian Mining Summit is the perfect forum to bring together senior level executives from
Mongolia and Australia to further business relationships in the resources sector. Send your senior
executives to attend this summit to meet with CEOs, executive directors, MDs, VP, and GMs, and
heads of investment from Australian organizations interested in entering the Mongolian mining
industry.
Speakers include:
- Graeme Hancock, President and chief representative of Anglo American in Mongolia,
- Dr. Battsengel Gotov, Executive Director and CEO of Mongolian Mining Corporation.
- Jim Dwyer, Executive Director of the Business Council of Mongolia.
BCM is a supporting organization of this event. Register now and pay only AUD $999 for Mining and
Government Companies—register by 23 August 2013.
To register call +61 2 9229 1000 or email registration@iqpc.com.au.
___________________________________________
MONGOLIA INVESTMENT SUMMIT HONG KONG 2013, 18-20 NOVEMBER, HONG KONG
Bringing the best of Mongolia‘s investment opportunities to Asia‘s leading investment hub.
Featuring a line-up of Government representatives, business leaders and international investors, the
4th Annual Mongolia Investment Summit provides investors and companies seeking to do business in
Mongolia with a thorough update of Mongolia‘s investment and business climate and showcases its
actual investment opportunities. Key sectors covered include Mining and Mining Services,
Infrastructure, Energy, Financial Services, Retail, Real Estate, Construction and Agribusiness.
Mongolian companies and Mongolia-focused funds seeking to meet with investors and potential
business partners, should make attendance at Mongolia Investment Summit Hong Kong 2013 their
number one priority. Click here to download the latest brochure.
BCM is a supporting partner organization. BCM members will enjoy 15% discount; please quote
Priority Code 695BCM15D during registration.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAY, 19:00-19:10
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:00 to 19:10 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.

18. BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013
The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks
and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the
Business Council of Mongolia (BCM) and UB Risk Management Consulting:
• Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн
засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,
ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын
19
• Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,
Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ
ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага
хурал, 2013 оны 4 дүгээр сарын 19
• Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,
Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын
албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,
СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖ сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4
дүгээр сарын 19
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available:
• Joshua Sunga, Internship Program Director, AIESEC, "Youth Leadership Development" at the BCM
Monthly Meeting Aug 26. 2013
• G. Zorig, Country Manager, Tree Global Mongolia, ―Tree Global Mongolia Overview Presentation‖
at the BCM Monthly meeting Aug 26, 2013
• G. Saruul, Deputy CEO, Mongolian Stock Exchange, ―Securities Law Overview‖ at the BCM Monthly
meeting Aug 26, 2013
• Bilguun Ankhbayar, Chief Executive Officer, Mongolian Investment Banking Group LLC,
―MIBG Review‖, at the MSE-BCM Securities Law Overview Session, July 4, 2013
• Robert Rooks, Director, PwC-Hong Kong, ―A brief Overview of Custody Services‖, at the MSE-BCM
Securities Law Overview Session, July 4, 2013
• Anthony Woolley, Senior Associate, Hogan Lovells, ―The Revised Securities Market Law‖, at the
MSE-BCM Securities Law Overview Session, July 4, 2013
• B. Saruul, Director General, Securities Department, Financial Regulatory Commission of Mongolia,
―Securities Markets Law – Path to Market Reforms‖, at the MSE-BCM Securities Law Overview
Session, July 4, 2013
• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting
April 22, 2013
• Brian White, Editor, The Mongolist – ―Analyzing Mongolian Politics from the "Middle Layer" at the
BCM Monthly meeting Apr 22, 2013

19. • Ch. Otgochuluu, Head of Strategic Policy and Planning Department, Ministry of Mining, ―Brief
introduction on mining policy‖ at the BCM monthly meeting Apr 22, 2013
• S. Bold, Chief Economist, Central Bank, ―The current flow of investment into Mongolia‖, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• S. Javkhlanbaatar, Foreign Investment Regulations and Registration Department Head, Ministry of
Economic Development of Mongolia, ―About regulation on FDI‖, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• B. Amarsanaa, Academic Secretary of National Legal Institute, ―Legal issues of regulation of
foreign investment‖, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions"
conference on April 19, 2013 at the Kempinski Hotel.
• D. Gan-Ochir, Head of Financial Stability Council, Advisor to President of Central Bank,
―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• D. Achit-Erdene, CEO, MICC, ―On current state of equities foreign investment‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• Ruth Pulaski, Director Marketing & Development, American University of Mongolia – ―American
University of Mongolia: Integrating a Liberal Education Approach to Learning‖ at the BCM monthly
meeting, March 25, 2013
• B. Bayar, Managing Director, ELC LLC – ―Update on Legal Developments Regarding Foreign
Investment‖ at the BCM monthly meeting, March 25, 2013
• Tony Burchill, Australian Consul-General & Trade Commissioner, Austrade – ―The Business of Being
a Third Neighbor‖ at the BCM monthly meeting, March 25, 2013
Other presentations:
• Dr. Brian Fisher, Managing Director, BAEconomics, "Economic Impact of draft Minerals Law" at the
Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Dr. Ch. Khashchuluun, CEO of UBRM Consulting, ―Mongolia and Mining, The policy evolution:
What's the next?‖ at the Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Martin Pow, Partner, Enterprise Risk Services and Learning Leader, Deloitte Onch LLC, ―Black
Swans: Fact or Fiction,‖ A different risk management philosophy at the BCM Risk Management
Working Group meeting, March 14, 2013
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―Mongolia Macro Flash‖, Adrienne Lui, Asia Pacific Economics Research, Citigroup Global Markets
Asia Ltd;
- ―Selected Macroeconomic Indicators for Mongolia, as of June 2013‖ by International Monetary
Fund;
- ―Polit Barometer April, 2013‖ by Sant Maral Foundation;
- ―Market Update‖ by Mandal General Insurance LLC;
- ―Annual Report 2012‖ by International Monetary Fund;
- ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International Monetary Fund;
- ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and Development (EBRD);
- ―Official statement of Oyu Tolgoi LLC in relation to information, data and facts related to Oyu
Tolgoi – ―2013discussed during open session of the State Great Khural‖, dated 1 February, 2013‖;
- ―Mongolia Investment Climate Statement‖, by the Economic and Commercial Section of the U.S.
Embassy;
- ―Mongolia Foreign Labor Force Ratio for 2013‖ by Hogan Lovells International LLP;
- ―How Mongolia will perform in 2013?‖ by Mandal Asset Management;
- ―Mongolia Business Owner and CFO Survey result‖ by BDSec JSC;

20. - ―The fiscal regime for mining - a way forward‖ by IMF Fiscal Affairs Department;
- ―Taxes for Expatriates in Mongolia‖ by PricewaterhouseCoopers.
BCM's English website includes the ―Mongolia Business News‖ section where the Open Letter to
Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 5th Anniversary BCM Gala dinner on November 5.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
___________________________________________
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,352 fans on our Facebook fans page, 1,336 connections on LinkedIn network, and
745 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn.

21. ECONOMIC INDICATORS

22. 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]
July 31, 2013 *8.3% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 7.0% y-o-y, Ulaanbaatar city, July 31, 2013
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]
CURRENCY RATES – SEPTEMBER 5, 2013
Currency Name Currency Rate
US dollar USD 1,669.75
Euro EUR 2,200.73
Japanese yen JPY 16.60
British pound GBP 2,605.56
Hong Kong dollar HKD 213.23
Chinese Yuan CNY 272.86
Russian Ruble RUB 49.95
South Korean won KRW 1.51
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.