February 7 2014

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 310-311 – February 7, 2014
NEWS HIGHLIGHTS:
Business
 Bad bank debts in Mongolia sour investors;
 Soyombo Vodka Enters U.S.;
 Parmelia Resources encounters gold, zinc, copper in Mongolia;
 Eumeralla Resources pinpoints new gold target at Ovoot tungsten project;
 Kincora reports on 2013 exploration results;
 Xanadu Mines to acquire advanced copper-gold project in Mongolia;
 S&P lowers MMC rating to ‘CCC+’ remains on watch negative;
 Ard registers MNT 600 million debt offering;
 MIBG, ResCap complete merger of securities division;
 MSE de-lists Khorol-Erdene;
 ABB expands footprint with inauguration of Mongolian office;
 ARD acquires insurance, credit arms;
 Mongolian National Lottery expands distribution;
 Supreme Group wins contract for Salkhit wind farm;
 Gastineau Log Homes enters Mongolian market;
 Architecture firm aids Mongolian master plan;
 Austrian firm to build overhead footbridge;
 Korean firm looks to utilize hot springs for power generation;
 Mongolia firm unable to buy Chongryon HQ;
 IFC helps XacBank expand lending for women-led businesses;
 Golomt joins Asian banking group;
 Wolf Petroleum appoints new company secretary;
 MNCCI recognizes groups for private investment and project implementation;
 Mongolia’s biggest coal event opens in February;
 Don’t count out Mongolia in 2014, says BCM chairman.
Economy
 Banks allot MNT 836.7 billion for 8% mortgage program;
 Customs tax lifted for jet fuel at China-Mongolia border;
 BDSec re-evaluates MSE companies’ performances;
 Fluorspar revenues reached USD 81 million;
 Mongolia to build heavy industrial park;
 Mongolian Provinces to Have Pig Farms;
 Made in Mongolia to upgrade steppe economy;
 OBG's year in review 2013;
 Miners make up three-quarters of Umnugobi tax revenue;
 Herders to receive mortgage opportunities;
 Public transport to introduce e-pay system;
 UB orders the replacement of over 1,000 elevators due to accidents;
 Trolley bus fares double;
 Mongolia considers launching sovereign wealth fund;
 Australian schools to aid Mongolia for water access;
 For Mongolia, diversification is key, says WEF;

2.  Swine flu infects 4 in western Mongolia;
 Foot-and-mouth disease breaks out in eastern Mongolia;
 Little evidence found of equine flu infecting people;
 Mongolia pins hopes on new laws to breathe life into MSE;
 Copper surplus ‘underplayed’; but more capacity needed, says Macquarie;
 Copper miners: out of the red;
 China smog crackdown boosts high-grade iron ore;
 Russia reports suspected foot-and-mouth outbreak in Siberia.
Politics
 Mongolia reduces gold tax to boost gold trade;
 Parliament begins talks on Petroleum bill;
 Parliament may call special session;
 MRA issues fewest licenses in eight years in 2013;
 Mongolian export-import firm signs MoU with Nepalese businesses;
 Foot-and-mouth disease breaks out in eastern Mongolia;
 Former Just Group head accused of new embezzlement crimes;
 Capital Bank head found not guilty of mismanaging MNT 2bn in customers' funds;
 Award-Winning Mongolian Environmentalist Gets 21 Years for ‘Terrorism’;
 Mongolian police arrested an American citizen charged of human trafficking;
 Ulaanbaatar to employ Smart Government initiative;
 Mongolia, New Zealand first to be welcomed into Sochi 2014 Olympic Village;
 Mongolia, cricket's field of dreams;
 US basketball player says he will seek Mongolian citizenship;
 Mongolia's Political Pendulum Gets Closer to Equilibrium.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Monthly Macroeconomic Overview – December 2013;
 Supermarket Price Comparison – January 2014;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank International SOS

3. Mongolian National Broadcasting Oxford Business Group
BCM MONTHLY MEETING RECAP
The BCM meeting on 27 January with Bayanjargal Byambasaikhan in the chair was attended by 100
members and invited guests. Byambasaikhan made reference to the changes made to the legal
environment for investors and how the president is putting his efforts into creating a ―smart‖
government to improve things even further.
―I think this message is of a change for the economic life of Mongolia,‖ said Byambasaikhan.
―Everyone is saying government is an obstacle and it needs to be changed. That's what's being
discussed now.‖
BCM membership continues to grow. The three most recently joined members are:
1. ABB Group is a global leader in power and automation technologies. Based in Zurich, Switzerland,
the company employs 145,000 people and operates in approximately 100 countries. The company
has been a long track record of innovation. Many of the technologies that underlie our modern
society, from high-voltage DC power transmission to a revolutionary approach to ship propulsion,
were developed or commercialized by ABB.
Today, ABB stands as the largest supplier of industrial motors and drives, the largest provider of
generators to the wind industry, and the largest supplier of power grids worldwide.
2. AUM ALT Co. Ltd was established in 2011 as a daughter company of parent company AUM,
established in 2007, and is a 100 percent local;y invested company. AUM owns the special license
362A for the extraction of within a 829-hectare field at the Ult region of Uyanga Soum, Uvurhangai
Aim.
With the prospecting work complete, AUM has been certified and registered a deposit of 370
kilograms pure gold, according to the decision of Minerals Professional Council of the Minerals
Authority from May 2010. The company has over 75 workers and employees and operate the mine
with its own machinery and equipments.
3. IUE Group is a collection of companies that strive for excellence in conducting its business by
bringing the best value to its investors, clients and community. IUE Group has been identified as the
‗Best Tax Payer‘ several years in a row by the General Taxation Office of Mongolia. The company is
dedicated to a number of exciting business projects that contribute to the economic development
of Mongolia, particularly in Ulaanbaatar.
To name a few, IUE Group is developing the Morin Khuur Tower, soon to be the tallest skyscraper in
Mongolia, as well as a master plan for the Yarmag Township Project, the largest residential project
in Ulaanbaatar city.
Richard Kobayashi, chief executive officer of Standard Investment LLC, announced that his firm had
underwritten the first public offering on the Mongolian Stock Exchange in two years for the first
presentation of the evening. The public offering for concrete producer Merex JSC comes just as
Mongolia's new Investment Law takes effect and is the first of what investors hope to be many
offerings on the local exchange.

4. ―This is the first time people are beginning to think about us [Standard Investment] and read about
us in the newspaper.,‖ he said.
He said Merex has the capacity to rank among Mongolia's top-five concrete producers, with plenty
more room to expand into the market – at peak capacity the company currently meets just 3
percent of demand.
Chuluundorj Khashchuluun, executive director of the Mongolian Oil Shale Association, spoke next to
introduce to the audience the Oil and Oil Shale Mongolia 2014 conference scheduled for 4 April.
―We recently had the metals conference, and soon is the coal conference, followed by this oil
conference,‖ he said. ―We think this has the opportunity to be the fastest growing sector in the
country – not only in oil but interest is growing rapidly in oil shale.‖
Oil shale is one of the most widely distributed minerals in the world. With 700 billion tons
estimated to be in Mongolia, the resource needs further study, said Khashchuluun. Lab tests show
production quality is similar to the petroleum produced from Saudi Arabia, but with much lower
investment costs.
With a new Law on Petroleum expected to be voted on by Parliament this year, Khashchuluun
believes oil will help to bring greater diversity to the economy.
The next presentation was given by Ts. Banzragch, head of forest protection and forest
management at the Ministry of Environment and Green Developmetn, to speak on opportunities for
the private sector to cooperate with the government in environmental conservation. The
government is rolling out a new program that will pay land leasers to tend to forests and promote
tree growth throughout the country.
―Our trees should be used as an asset,‖ said Banzragch.
Currently the ecological conditions allow for only limited tree use, he said, due to the
consequences of climate change and deforestation. The timber industry is currently the greatest
threat to the tree population of the country because of inadequate restoration efforts employed by
the companies that use the wood for products such as construction materials. To combat this
threat, the government introduced this program to provide profitable opportunities for companies
to enhance Mongolia's forests, rather than clear them.
D. Irmuun, director of the division for promotion and consultancy services at the Invest Mongolia
Agency, to discuss the role for the new agency he represents. Operating under the umbrella of the
Ministry of Economy Development, Invest Mongolia hopes to attract investors by promoting the new
Investment Law, along with the tax incentives and other benefits it brings; the aims of the 2025
Minerals Policy to attract investment; and President Tsakhia Elbegdorj's ―Smart Government‖
initiative.
―These calcites are seen as pillars for stable investment,‖ said Irmuun.
The agency will provide the services of information delivery, guidance for business-to-business
relationships and the procedures for registration of companies, license attainment, and legal
consultancy. Account managers are on staff that, in addition to investment promotion, are there to
connect public investors with local business partners.
BUSINESS
BAD BANK DEBTS IN MONGOLIA SOUR INVESTORS
Credit Suisse Group AG and Abu Dhabi‘s sovereign wealth fund invested in Golomt LLC in the past
half decade, seeking a share of the country‘s promised bounty,. Those hopes have soured amid
allegations that one of Golomt‘s owners arranged loans without any reports, hid defaults for years
and, as the bank‘s board called for probes, oversaw the destruction of financial records, according
to reviewed documents.
Both investors, claiming breach of contract, started arbitration efforts in recent months for

5. repayment of loans, just as Mongolia‘s leaders flew into Hong Kong and New York to drum up new
investment. Credit Suisse and Abu Dhabi extended a combined USD 35 million in convertible loans
to Golomt starting in 2007. The agreements required the bank to provide prompt audited financial
statements. Within five years of each deal, each investor was to gain Golomt shares as part of an
initial public stock offering.
Come 2012, no initial public offering had occurred. Instead, that year the foreign investors, some
members of the bank‘s board and its chief executive officer learned the bank had missed payments
on off-the-books debts to a Japanese trading company as far back as 2008, according to two people
with knowledge of the bank and reviewed documents. The Bank of Mongolia, the country‘s central
bank and financial regulator, investigated Golomt several times, according to its chief, Zoljargal
Naidansuren. The results are confidential, he said. ―The bank is safe and sound,‖ he said in a 29
January interview in Mongolia‘s capital, Ulaanbaatar.
Credit Suisse expected a 20 percent internal rate of return once the loan was converted to shares,
said a person with knowledge of the deal. The Abu Dhabi Investment Council, the emirate‘s
sovereign wealth fund, came in with a USD 25 million loan on similar terms in June 2010, according
to its correspondence with Golomt. Golomt attracted others. In 2011, Swiss-Mo Investment AG, a
fund controlled by U.K.-based Swiss multimillionaire Urs Schwarzenbach, paid USD 20 million for a
10.7 percent stake, according to a Nov. 9, 2011, Moody‘s report. In 2012, trading company Trafigura
Beheer BV bought 5 percent of the bank. Together, those two investors also loaned about USD 55
million to parent company Bodi, according to loan documents.
Loans by Swiss-Mo and Trafigura to Bodi are also in default, according to loan documents and three
people with knowledge of the situation. In all, the foreign parties seek about USD 90 million from
Golomt and Bodi, said the two people with knowledge of the bank‘s board. That‘s six times
Golomt‘s 2012 post-tax profit. Golomt delivered its 2012 audit on 8 November, when a Mongolian
franchise of London-based BDO International Ltd. signed off on accounts provided by Golomt
management. BDO‘s audit noted that Golomt had paid Itochu USD 1.2 million to settle the claim
against it. BDO didn‘t have access to the bank‘s financial status at the start of 2012, its report said,
so it couldn‘t vouch for the ―fair presentation‖ of Golomt‘s profit.
[Readers are advised to read the source for the full story]
Source: Bloomberg
SOYOMBO VODKA ENTERS U.S. MARKET
APU JSC announced the arrival of Soyombo Vodka in five major U.S. markets: California, New
Hampshire, New Jersey, upstate New York and Ohio; as well as at online spirits retail site
Caskers.com; and in Canada.
This is the brand‘s first expansion outside of Mongolia and into the United States, Canada, Britain,
Russia, Korea, Macao and Travel Retail. Soyombo Super Premium Mongolian Vodka retails for a
suggested price of USD 29.99 for 750 millimeter of 40 percent alcohol. Soyombo executives have
plans to introduce the brand via a range of brand-building activities that include advertising, social
media, experiential marketing and public relations.
―Over the years, we have crafted our vodkas with the utmost care, highest quality ingredients and
state of the art advanced beverage production,‖ said Purev Batsaikhan, APU's chairman. ―The
timing is now right for us to bring our vodka portfolio to the wider world with the support of an
experienced international team.‖
Soyombo is distilled on the site of the last Emperor‘s palace, the Bogd Khan‘s Winter Palace located
in Ulaanbaatar. It is a little known fact that Mongolians are the true vanguards of vodka distillation.
History points to Persians inventing distillation in the 11th century which was spread by the
Mongolian ruler Chinggis Khan in the 13th century to the territories he conquered as he extended
the Silk Road.
Soyombo is crafted in small batches and is made with organic wheat from Selenge Aimag and pure
flowing from the sacred Bogd Khan Mountains which were formed more than 800,000 years ago.
Soyombo Vodka is contained in a smoky gray, square bottle designed in-house at APU under close
supervision by Batsaikhan and is produced by Stolzle Flaconnage, a British glass maker. The bottle

6. features the Soyombo logo which contains six figures: fire, the sun and the moon, two triangles,
two horizontal rectangles, two vertical rectangles and the yin-yang.
Source: APU Ltd.
PARMELIA RESOURCES ENCOUNTERS GOLD, ZINC, COPPER IN MONGOLIA
Parmelia Resources Ltd. encountered significant gold and zinc mineralization during a drilling
campaign at the Naruu copper-gold project in Gobi-Altai Aimag.
A scout drilling program began in October 2013 with 2,020 meters of reverse circulation drilling
being completed in 18 holes at six different prospects. One hole, DNRC 016, intersected 16 meters
at 1.01 grams per ton gold, including eight meters at 1.87 grams per ton gold and 1.7 percent zinc.
The first hole, the 200-meter DNRC015, intersected two broad zones of alteration. Further-high
grade copper mineralization identified at surface from Anomaly 13, with 19.5 percent copper and
9.4 percent copper was identified in outcrop.
The takeaway from the initial drill program at the prospect named Mushroom Reef and Anomaly 13
is one of significant encouragement for Parmelia Resources encountering significant mineralization
and highly prospective geology at both prospects. To wit, a preliminary petrography study also
lends support to the hypothesis that the geology at Darvii Naruu has potential to host a porphyry
hosted mineral system.
The company was previously known as Sentosa Mining Ltd. and the change of its ASX ticker code
from SEO to PML was effective 9 January 2014.
Source: Proactive Investors
EUMERALLA RESOURCES PINPOINTS NEW GOLD TARGET AT OVOOT TUNGSTEN PROJECT
Eumeralla Resources Ltd. has identified a new gold target and several chargeability anomalies after
completing geophysical surveying and rock chip sampling at its Ovoot tungsten project in Mongolia.
In the northern part of the license, a relatively high chargeability and resistivity anomaly extending
to depth occurs 400 meters, and coincident with a rock chip sample of 1.4 grams per tonne gold.
Based on these observations it is possible that the chargeability anomaly is related to a gold-bearing
structure with resistive wallrock alteration. During 2013, the company mapped the license area,
and collected 311 rock chip samples. The surface mapping and sampling results outlined 9 promising
targets, with combinations of gold, copper, lead, zinc, molybdenum and tungsten. This prompted
Eumeralla to conduct an induced polarization survey, which identified 18 chargeability anomalies,
up to one kilometer by one kilometer in size, possibly related to hydrothermal sulphide
mineralization.
Detailed rock chip and soil sampling is planned during 2014 to confirm the cause of the
chargeability anomalies and style of mineralization, with collection of stream silt samples from
drainages. This work is in order to refine locations for further induced polarization surveys.
Source: Proactive Investors
KINCORA REPORTS ON 2013 EXPLORATION RESULTS
Kincora Copper Ltd. released an overview of its internal interpretations of last years exploration
program at its flagship Bronze Fox license having integrated them with previous geology and
geophysical results.
Key findings include a ―favorable‖ regional setting within the same tectonic and intra-oceanic arc
as Oyu Tolgoi and Tsagaan Suvarga copper deposits; Geochemical footprint matching other major
globally significant porphyry deposits, many of which are major mines; and fertile signatures for
economic porphyry deposits confirmed at many proposed drilling targets and various zones within
the known 40 square kilometers mineralized area at Bronze Fox. Previous results coincident with
lower priority induced polarization (IP) chargeability anomalies supporting IP being an effective
exploration tool. Multiple large-scale copper porphyry targets with favorable geology and
geophysics drill ready supporting the possibility of bulk tonnage ore mineralization in ―finger type‖
porphyries similar to Oyu Tolgoi. The Happy Geo prospect has emerged as an attractive, earlier
stage, at or near surface follow up exploration target, plus the potential for porphyry targets at

7. depth
―Our 2013 field season deployed some of the same wide ranging and detailed exploration
techniques used at Oyu Tolgoi to significantly increase the confidence in high priority, and large
scale targets that demonstrated exceptional corresponding prospectivity,‖ said Sam Spring,
president and chief executive officer of Kincora. ― Last years‘ activities, independent consultants
analysis and discussions with various industry groups have assisted to 'explain' previous results,
convincingly prove a fertility signature for copper porphyries and in de-risking multiple drill ready
targets.‖
Source: Kincora Copper Ltd.
XANADU MINES TO ACQUIRE ADVANCED COPPER-GOLD PROJECT IN MONGOLIA
Xanadu Mines Ltd. and its joint venture company Mongol Metals have agreed to acquire a 90 percent
interest in the Kharmagtai advanced porphyry copper-gold exploration project in Mongolia for USD
14 million from Turquoise Hill Resources Ltd..
Previous exploration had identified significant shallow high-grade porphyry copper-gold
mineralization, including 245 meters (from 3 meters) grading 0.75 percent copper and 2.48 grams
per ton gold. But this was not isolated by any means and the project looks to have scale and offer
promise.
Xanadu will be funded into the deal with a USD 4 million, three-year loan agreement with Noble
Group and USD 4 million in equity in Mongol Metals from its joint venture partner as initial
consideration. The acquisition is subject to approval by Xanadu‘s shareholders. Mongol Metals will
pay initial consideration of USD 4 million with deferred consideration of USD 10 million to be paid
over 18 months.
Xanadu has committed to spending around USD 900,000 up to completion (about USD 700,000 to
date including USD 250,000 of an initial USD 500,000 deposit) to earn a circa 18 percent interest in
Mongol Metals. The company has the right to earn at least 85 percent of the Mongol Metals joint
venture company through funding exploration and acquisition costs.
It had in early January completed the acquisition of Oyut Ulaan for USD 600,000 and 5 million
Xanadu shares. This is value accretive for Xanadu given the geological setting and previous
exploration results.
Source: Proactive Investors
S&P LOWERS MMC RATING TO 'CCC+' REMAINS ON WATCH NEGATIVE
Standard & Poor's Financial Services LLC has lowers Mongolian Mining Corp.'s rating to ―CCC+‖ on
delay in liquidity improvement initiatives. The company remains on watch for a negative outlook.
MMC's proposed disposal of assets is taking longer than we originally anticipated, said the Source.
The risk of a further delay in the execution of the Mongolia-based coal producer's liquidity
improvement initiatives has increased.
―We are lowering our long-term corporate credit rating on MMC and our long-term issue rating on
the company's senior unsecured notes to 'CCC+' from 'B-',‖ said the Source. ―We are keeping all the
ratings on CreditWatch, where they were placed with negative implications on Aug. 30, 2013.‖
The Source's cash flow projections indicate that MMC's liquidity position will only start to stabilize
upon execution of all three refinancing initiatives: asset sales, refinancing of amortizing bank loans,
and settlement of the promissory notes. While the potential receipt of the proceeds from asset
sales by March 2014 would enhance MMC's cash position in the near-term, it is not expected that
such proceeds will have a lasting effect on the company's liquidity. The projection was that the
asset-sale proceeds, along with MMC's cash balance estimated at USD 70 million to USD 80 million,
will only marginally cover the estimate of the company's USD 150 million in interest, debt
maturities, and promissory notes due by the end of March 2014. The cumulative effect of the sale
of assets and the refinancing of MMC's amortizing bank loans with a back-ended amortizing bank
loan would also be mostly temporary.
The Source could affirm the ratings and resolve the CreditWatch if MMC receives proceeds from
asset sales, and makes tangible progress toward refinancing amortizing bank loans and settling the

8. promissory notes. To the extent the latter two initiatives are not completed, assessment would be
needed to determine whether MMC has sufficient liquidity to meet its debt obligations due on or
before the end of June 2014.
Source: Standard & Poor's Financial Services LLC
ARD REGISTERS MNT 600 MILLION DEBT OFFERING
Ard Credit Non-bank Financial LLC (Ard) announced the successful registration a MNT 600 million
private bond placement, its first with the Financial Regulatory Committee.
The MNT 600 million raised will enable the microfinance institution to expand its micro-lending
activities using innovative distribution channels. Ard, a subsidiary of Ard Financial Group, in the
first half of 2013 attracted a group of experienced investors who specialize in microfinance and
turn-around management, restructured its operations and developed its new business plan. With
this new capital injection, experienced management team and innovative expansion strategy.
Source: ARD Financial Group
MIBG, RESCAP COMPLETE MERGER OF SECURITIES DIVISION
Mongolian Investment Banking Group (MIBG) LLC and Resource Investment Capital Limited (ResCap)
4 February announced receipt of final regulatory approvals and completion of all closing conditions
for a merged securities division.
The new dealer will fall under the banner of MIBG and will serve existing clients from both
companies through one platform. MIBG and ResCap will also be working together to facilitate
corporate financing transactions in Mongolia through their respective advisory businesses.
―The completion of this merger has strengthened MIBG‘s position as the leading financial advisor
based in Mongolia,‖ said MIBG‘s Managing Director Chris MacDougall. He added, ―As demonstrated
by the professional conduct of the Financial Regulatory Committee, the Central Clearing House and
our Settlement Bank we believe that Mongolia is ready for a more qualified level of financial
services. We are excited to be at the heart of these developments and look forward to serving our
clients through the most professional platform available in the country.‖
Source: Mongolian Investment Banking Group LLC
MSE DE-LISTS KHOROL-ERDENE
The Mongolian Stock Exchange 24 January decreed the delisting of Khorol-Erdene JSC‘s 86,850
shares.
Source: Mongolian Stock Exchange JSC
ABB EXPANDS FOOTPRINT WITH INAUGURATION OF MONGOLIAN OFFICE
Automation technology firm ABB Group has opened a representative office in Ulaanbaatar.
The opening in Mongolia marks ABB‘s ongoing efforts to increase its footprint in Asia with a
customer-based approach and reflects its confidence in the Mongolian market. ABB‘s hopes to
utilize its technology and solutions to meet Mongolia‘s demand for power and automation
technologies regarding mining and infrastructure construction. ABB offers complete plant
electrification, integrated process control and optimization solutions, motors and drives systems
instrumentation and analyzer systems as well as AC and DC power transmission technology. ABB is
already involved in the Mongolian mining industry, including at Oyu Tolgoi, the world‘s biggest
copper-gold mine project.
―ABB identified the need to come into the country to be ready for the developments that will take
place in the short- and long-term, especially on the energy side where there are so many projects
being planned and discussed,‖ said Erdembayar Sukhee, chief representative of ABB Mongolia. ―Our
goal is to deliver the best services the company has to offer to customers in the mining, energy, and
manufacturing industries, as well as to everybody who uses power.‖
With huge renewable energy resources, there is also great potential for Mongolia to make use of
clean energy from solar and wind. A recent study by the U.S. National Renewable Energy Laboratory
and the Mongolian National Renewable Energy Center estimates that Mongolia has the potential to

9. generate 2,600 gigawatts of wind, solar, geothermal and hydropower-based energy. This figure
represents approximately 25 percent of total global electricity demand and encapsulates the vast
potential for renewable energy development in Mongolia. The country also plans to have renewable
energy sources contribute 20 to 25 percent of total energy output by 2020.
Source: ABB Group
ARD ACQUIRES INSURANCE, CREDIT ARMS
The newly founded Ard Holdings' board of directors announced the successful acquisition of Ard
Daatgal and Ard Credit from InterGroup by EIT LLC or Equity Investment Trust (formerly known as
Employee Investment Trust).
The merger was structured as a combination of cash and stock transfers between EIT and
InterGroup, making the latter the single largest shareholder in the holding company and is
considered to be the largest to date in the financial services industry in Mongolia. The merger puts
the company with net asset value close to MNT 30 billion.
Source: ARD Financial Group
MONGOLIAN NATIONAL LOTTERY EXPANDS DISTRIBUTION
Mongolian National Lottery (MNL) launched the distribution of agency agreements to small and large
businesses, marking the next phase of expansion in Mongolia.
Lottery outlets were previously deployed in popular supermarkets such as Nomin supermarkets,
Minii supermarkets and shopping malls that gained the popularity over the past two years. Feedback
shows that most consumers prefer shorter distance to the convenient stores just a few steps away
from their apartment due to the cold weather here which is -20 degree or lower. Working with
agents and retailers is the fastest way to fulfill an area without lottery terminal and achieve
significant boost in sales once operation commenced.
Singapore-based Monvest Group Pte., which owns license holder BizINVIN LLC and operator Modern
Capital Vest LLC, plans to roll-out 50 agency agreements to retailers for the first half of the year
which will dramatically increase the number of sales points and maximize exposure throughout
Ulaanbataar. Applicants will be interviewed and evaluated in terms of location, customer traffic
flow and population in that specific area to ensure the ability to generate sufficient financial return
for MNL.
Source: Monvest Group Pte.
SUPREME GROUP WINS CONTRACT FOR SALKHIT WIND FARM
Supreme Group has been awarded a twelve month contract to provide catering, cleaning, laundry
and security services for Mongolia‘s first wind farm project, the Salkhit wind farm.
The contract was awarded by Clean Energy, a joint venture between Newcom Group, General
Electric Co., European Bank for Reconstruction and Development (EBRD), and Netherlands
Development Bank (FMO).
Source: Supreme Group
GASTINEAU LOG HOMES ENTERS MONGOLIAN MARKET
The United State's Gastineau Log Homes has expanded its international market and will soon
distribute its goods to Mongolia.
Gastineau will send 25 of its home kits to Ulaanbaatar and will double that number by next year,
said Lynn Gastineau, the company‘s president. Gastineau finished hosting Mongolian business
leaders and potential customers Wednesday, which included a distributor, mining company
executive, president of a technical college and an architect with the country‘s department of
economic development. She said Mongolians have an interest in log homes because of their easy
construction, strength, energy efficiency and external and internal appeal.
Mongolian homes, she said, are typically made from concrete and have a frame construction
because of the country‘s lack of trees. All the timber for the homes will be imported. Gastineau
will send a trainer to help the buyers build the homes. The homes that will be built in Ulaanbaatar

10. will be used for residential and commercial purposes. Gastineau said she knows of a doctor‘s office,
music hall and school potentially being housed inside one of her company‘s log homes.
Source: Fulton Sun
ARCHITECTURE FIRM AIDS MONGOLIAN MASTER PLAN
Britain's Gradon Architecture is set to revolutionize housing in the former Soviet Union, beginning
with designs for a development in Mongolia.
Gradon has submitted its design proposals for 50 energy-efficient homes in Ulaanbaatar, a city
regarded as the second-most polluted on the planet according to the World Health Organization.
Working with a local developer, the designs could become the blueprint for the overhaul of Soviet-
era homes across the city, helping to protect residents against temperatures which often dip to
minus 30 Celsius. The three-and four-story townhouses, in the Nukht Valley district of the city, have
features to reduce heat loss and keep families warm – including photovoltaic panels, solar hot water
heating and insulation – and are set to be green lit by the Government Department of Construction
and Planning.
―Master-planning is now underway for the city. If our proposals can deliver an exemplar project
from which future developments can draw from, we believe thousands of families will benefit from
improved living standards in the future,‖ said Chris Allan, associate architect at Gradon
Architecture.
Once plans have been approved construction work in Mongolia will begin on site in summer 2014.
Source: The Journal
AUSTRIAN FIRM TO BUILD OVERHEAD FOOTBRIDGE
Austria's Waagner Biro plans to raise MNT 500 million to construct and overhead footbridge.
Waagner has already completed the design for the footbridge, which is one of 37 planned for
construction by Ulaanbaatar. Three footpaths are scheduled for completion in 2014.
Source: Unuudur
KOREAN FIRM LOOKS TO UTILIZE HOT SPRINGS FOR POWER GENERATION
National Renewable Energy Center and South Korea‘s Nexgeo LLC signed a memorandum of
understanding for cooperation on the development of thermal power stations using underground
geothermal springs on 24 January.
―We have found some potential underground hot water reserve in four provinces and Tsetserleg
Ssoum of Arkhangai Aaimag is considered the most potential site,‖ said Sh. Tugsbayar, executive
director of Nexgeo. ―We are thinking of building 4-6 MW power station.‖
Tugsbayar said USD 2.5 million would be needed for a feasibility study. Korea International
Cooperation Agency (KOICA) said it could possibly provide a lump-sum grant for the project, while
the World Bank said it could provide a long-term loan.
Source: Udriin Sonin
MONGOLIA FIRM UNABLE TO BUY CHONGRYON HQ
The Tokyo District Court said Thursday it has rejected a Mongolian bidder‘s offer to buy out the
headquarters and land in downtown Tokyo of a pro-Pyongyang Korean residents‘ group.
In October, the Mongolian firm, identified as Avar LLC Liability Co., offered the highest bid of JPY
5.01 billion (USD 49.4 million) to buy the property of the General Association of Korean Residents in
Japan (Chongryon). The group acts as North Korea‘s de facto embassy in Japan in the absence of
diplomatic ties between the two nations. The court said the auction result was invalid as some of
the documents submitted by the firm were copies rather than originals. A third round of bidding will
be held, court officials said. Earlier reports said the Ulaanbaatar address the little-known firm
provided did not exist.
In 2012, the court decided to auction Chongryon‘s headquarters as demanded by the government-
backed Resolution and Collection Corp., which is owed about JPY 62.7 billion by Chongryon
following the collapse of financial institutions in Japan for pro-North Korean residents. In the first

11. round, held last March, Saifuku Temple in Kagoshima Prefecture won the bidding to acquire
Chongryon‘s 10-story head office with two basement floors and its 2,387 square-meter tract of land
in central Tokyo‘s Chiyoda Ward. But the temple, whose chief priest, Ekan Ikeguchi, is known to
maintain close ties with senior officials of the North Korean government and Chongryon, failed to
pay the bid price by the deadline and was eliminated in the second round of auction.
Avar was one of the two bidders that filed bids in the second round in October, court officials said.
Avar head Chuvaamed Erdenebat said at the time the bid was a purely business decision.
Source: Japan Times
IFC HELPS XACBANK EXPAND LENDING FOR WOMEN-LED BUSINESSES
International Finance Corp. (IFC), a member of World Bank Group, signed an advisory agreement
with one of Mongolia‘s largest banks, XacBank LLC, to expand financing to more small and medium
enterprises, especially those run by women entrepreneurs.
The Mongolian bank becomes the second lender to join IFC‘s Women in Business Program for East
Asia and the Pacific, launched last year to help commercial banks provide more and better financial
and business development services to small and medium women businesses. Women run or partly
own more than half of Mongolia‘s companies, but women-owned businesses are still
underrepresented on the loan portfolios of banks. Women entrepreneurs have repeatedly identified
insufficient access to finance and business development services as major constraints to growing
their businesses.
―Innovation is critical for XacBank‘s future growth,‖ said XacBank Chief Executive Officer Bat-Ochir
Dugersuren. ―We are committed to partnering with IFC to make new ventures that enhance our
competitiveness.‖
IFC will help XacBank explore new financing opportunities for small and medium enterprises,
develop a strategy for targeting the women‘s market, and improve risk management. In particular,
IFC will help XacBank introduce innovative customer management practices to enhance the lender's
ability to understand, target, and retain small-business clients.
―Women are critical to economic growth and development in Mongolia,‖ said Hyun-Chan Cho, IFC‘s
country manager for China, Mongolia, and Korea. ―We can help XacBank respond to their business
needs in a commercially and socially sustainable way.‖
The IFC Women in Business program aims to reach more than 10,000 women-owned small and
medium enterprises and disburse around USD 200 million in loans by June 2017. Rizal Commercial
Banking Corp. from the Philippines is the first bank to join the program.
Source: International Finance Corp.
GOLOMT JOINS ASIAN BANKING GROUP
Asia Financial Corporation Association (AFCA) accepted the membership Golomt Bank LLC and three
others 23 January.
In additional to Golomt, AFCA accepted State Bank of India, Taishin International Bank from
Taiwan, and Dalian Rural Commercial Bank during a signing ceremony hosted by AFCA Secretary
General Zhong Jipeng. Golomt's vice president, Oyun-erdene Lamjav, delivered a speech for the
ceremony.
Jipeng, on behalf of AFCA, also signed AFCA Master Agreement for Strategic Cooperation Framework
with representatives from the four banks, which officially marked their membership. In addition,
President Hong Qi and Lamjav signed a memorandum of understanding between China Minsheng
Bank and Golomt, to start business cooperation between AFCA members.
The amount of AFCA members increased to 38, with total assets of more than CNY 12 trillion (USD
1.98 trillion).
Source: Asia Financial Corp. Association
MNCCI RECOGNIZES GROUPS FOR PRIVATE INVESTMENT AND PROJECT IMPLEMENTATION
The Mongolian National Chamber of Commerce and Industry (MNCCI) recognized the country's
leading foreign investors and project leaders at an award ceremony.

12. MNCCI named Chemuc and MobiCom as ―Best New Technology Introducer;‖ Clean Energy LLC as
―Green Investor;‖ and Green City, Aqua-Tron Ach and Turkish Airlines as ―Investor with Good Social
Responsibility.‖ The Oyu Tolgoi copper-gold mine, one of Mongolia's largest mining operations,
received the award ―Created Most Workplaces.‖ International organizations to take home awards
were Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) for its contributions for
efficient energy production, European Bank for Reconstruction and Development for its support to
small business, Korea International Cooperation Agency (KOICA) for its plumbing project in Baruun-
Urt, Sukhbaatar, USAID for its Business Plus Initiative, and the World Bank for its livestock insurance
program.
Source: Unuudur
WOLF PETROLEUM APPOINTS NEW COMPANY SECRETARY
Wolf Petroleum Ltd. 28 January announced the appointment of Jonathan Hart to replace Aaron
Bertolatti as company secretary.
Hart previously worked at Perth based law firm, Steinepreis Paganin. his experience includes due
diligence investigations, general corporate and commercial drafting, public and private mergers and
acquisitions, general corporate advice in relation to capital raisings, Corporations Act, AML issues
and Australian Securities Exchange (ASX) compliance.
Source: Wolf Petroleum Ltd.
MONGOLIA‟S BIGGEST COAL EVENT OPENS IN FEBRUARY
The fourth international Coal Mongolia conference will be held on 20 and 21 February at the SS Club
in Ulaanbaatar.
The primary objectives of the event is to bring international investors into the Mongolian coal
sector; to introduce the most advanced, environmentally friendly technologies in the coal mining
sector; and to create mutually beneficial partnerships that will strengthen Mongolia‘s
competitiveness in Asia. The conference offers insight into Mongolia‘s coal industry, with
conference speakers including key officials in the coal sector, neighboring country representatives
and coal companies in Mongolia.
Last year‘s conference highlighted the need for rail transportation and coal refineries to advance
Mongolia‘s coal output and increase competitiveness. Mongolia‘s neighbors, Russia and China, and
its ―third‖ neighbors Japan, Canada, and the United States declared their readiness to work with
Mongolia in coal trade and development.
For this year, the main topics on the agenda for this year are government policy on coal mining and
marketing, international partnership and trade, coal market outlooks and Mongolia‘s
competitiveness, energy and infrastructure, and investment projects and new technology.
Mongolia has inferred reserves of coal totaling 173.3 billion tons, of which 21.5 billion ton reserves
are validated through prospecting and detailed exploration. The most notable coalfields currently
producing include the West and East Tsankhi (blocks) of the Tavan Tolgoi deposit.
Source: UB Post
DON‟T COUNT OUT MONGOLIA IN 2014, SAYS BCM CHAIRMAN
Mongolia still offers opportunities for investment, despite troubles experienced in the last two
years, said the Business Council of Mongolia‘s chairman.
―Mongolia offers access to a market of more than two billion people, so it is a great location for
business. We offer a favorable tax system and excellent human resources thanks to our young, well
educated and multilingual population,‖ said Bayanjargal Byambasaikhan, chairman of the Business
Council of Mongolia and managing partner of NovaTerra LLC.
Byambasaikhan noted that the economy had grown 10 times in a decade, and the double digit
growth would likely continue past 2020. He said there were opportunities for businesses to leverage
on in Mongolia, such as the growing market of mobile phone users and needs for energy generation.
―There is still a lot of investment needed in Mongolia, and if we can attract this investment, jobs
will be created and people‘s lives will improve.‖

13. Source: European Times
ECONOMY
BANKS ALLOT MNT 836.7 BILLION FOR 8% MORTGAGE PROGRAM
Commercial banks reported a total of MNT 836.7 in mortgages granted for the government's 8
percent mortgage program.
Banks reported the grant of MNT 482.3 billion for 17,102 mortgagees transitioning to the 8 percent
mortgages out of a total MNT 844.3 billion in applications. Banks reported the grant of MNT 836.7
billion in mortgages out of requests of MNT 910 billion for 14,637 citizens.
Source: Udriin Sonin
MONGOLIAN PROVINCES TO HAVE PIG FARMS
Pig-raising farms will be established in Darkhan-Uul and Orkhon Aimags this year.
According to a report from the Ministry of Industry and Agriculture, a facility in Darkhan-Uul will
house four farms with 80 sows each. Orkhon Aimag will have three farms, also with 80 sows each.
The ministry plans to bring additional farms to Selenge, Bulgan, Khentii and Dornod Aimags between
2015 and 2016
Ulaanbaatar had two farms with 320 sows each in 2013, while Tuv Aimag had one with 320 sows.
Source: The Pig Site
BDSEC RE-EVALUATES MSE COMPANIES‟ PERFORMANCES
Ulaanbaatar-based brokerage BDSec JSC ran three different screens that focused on growth, value,
and a combined proprietary approach, and ranked each name based on how they scored on key
metrics for companies listed on the Mongolian Stock Exchange (MSE).
―Sentiment at the time we published ―A Quantitative Look at
Mongolian Equities‖ was at rock bottom and there was considerable skepticism that a quantitative
approach could work in picking local stocks and even more pessimism that it was the right time to
start buying. With 2013 in the books, we felt it was time to see how our approach stacked up versus
the MSE Top 20 and the results were quite favorable,‖ said the Source.
The source said it would provide a full revision after listed companies reported their financial
statements for 2013 in April. See the full results here.
Source: BDSec JSC
FLUORSPAR REVENUES REACHED USD 81 MILLION
Mongolia saw USD 81 million in revenue from its fluorspar exports in 2013.
The nation exported fluorspar totaling 430,000 ton at USD 188.7 per ton. With a current global
demand for fluorspar of six million to 6.5 million tons per year, Mongolia's production represents 7
percent of total output. Fluorspar prices ranged between USD 180 and USD 400 per ton in global
markets, depending on mineral quality and production.
Source: Montsame
MONGOLIA TO BUILD HEAVY INDUSTRIAL PARK
The Mongolian government said Wednesday the research phase of Sainshand heavy industrial park –
a project being lead by Fluor Corp. – would be completed by June, and development contracts
would be signed this year.
Ganbold Dogsom, head of the heavy industrial policy department under the Ministry of Industry and
Agriculture, said the development of the park would begin next year and would be completed by
early 2018. Discovery of a large underground water deposit near Sainshand solved a water supply
issue, the biggest challenge to the project, the official said. Development of the industrial park
project will require investment of about USD 5.5 billion, according to a preliminary estimation.
It is estimated about five million tons of steel will be produced annually and about 10,000 new jobs

14. created under the project. According to a report, Sainshand will be managed by Fluor, a global
engineering construction company based in the United States.
Source: Shanghai Daily
MADE IN MONGOLIA TO UPGRADE STEPPE ECONOMY
―Made in Mongolia‖ trolleybuses bump along Peace Avenue, Ulaanbaatar‘s main east-west axis,
alternating lousy braking with sudden acceleration. Most of their major components have been
imported from abroad and the buses are only assembled locally. Still, they embody the ambition of
local authorities to develop Mongolian industry.
Mongolia still imports most of the goods it needs. Its exports are almost exclusively the raw fruit of
its booming mining industry, which command prices much lower than finished goods. In 2013, the
country‘s trade deficit was USD 2.08 billion and its current account was equal to almost 30 percent
of GDP, the highest in Asia, according to the World Bank. Facing such imbalances, the government
is trying to shift its focus beyond the mining sector to diversify the economy. Some USD 540 million
has been pledged to back export-oriented production and make 2014 the ―Year of Made in
Mongolia‖.
―Export development is constrained by comparatively high costs for skilled labor and weak value
chains in some industries,‖ Jan Hansen, the Asian Development Bank‘s senior country economist,
said. In other words, Chinese machinery, South Korean electronics and Japanese vehicles will
outmarket Mongolian goods in almost any circumstances.
Mongolia has plenty of room for upgrading the value of its animal husbandry. Today, the country
boasts one of the world‘s largest endowments of livestocks, with 45 million head of sheep, goats,
cattle, horses and camels. The mining industry also has the chance to upgrade its processes.
Authorities hope the planned Sainshand Industrial complex will bring downstream commodities for
export. The complex entails the construction of an oil refinery, a copper smelting plant, a
construction material factory and a steel and metallurgical plant. Total investments are expected
to reach USD 10 billion, according to a feasibility study by U.S. engineering firm Bechtel – itself a
big challenge for a USD 12 billion economy.
Mongolian steel bars or premium cashmeres will not hit the international markets any time soon.
But today the government has the chance to express its leadership through a comprehensive
industrial vision – or perhaps clumsy trolleybuses will remain the sole legacy of the Made in
Mongolia dream.
Source: Financial Times
CUSTOMS TAX LIFTED FOR JET FUEL AT CHINA-MONGOLIA BORDER
Mongolia has introduced a new customs tax exemption for jet fuel at the Zamyn-Uud border point
between China an Mongolia.
The government hopes to bring stability to airline ticket prices with the customs tax exemption by
reducing dependence on imports from Russia. Mongolia currently imports all of its jet fuel from
Russia, which has reportedly seen price fluctuations.
Source: Udriin Sonin
OBG'S YEAR IN REVIEW 2013
After hopes of a mining-based boom in Mongolia last year were dented by global commodity price
shocks and declining Chinese demand, the government is focusing on improving the investment
climate in a bid to generate a turnaround.
In January 2014, ratings agency Moody‘s placed negative outlooks on three Mongolian banks, citing
concerns over a ―deteriorating operating environment,‖ bad loans and slower economic growth. The
warning came three months after the International Monetary Fund (IMF) revised its 2013 growth
forecast for the country from 14 percent to 11.8 percent, blaming ongoing uncertainty and
weakness in the global economy.
With mining and resource extraction accounting for a third of Mongolia‘s gross domestic product
(GDP) and around 90 percent of exports, falling demand for coal from China last year weighed

15. significantly on the country‘s economic performance. A decline in commodity prices and China‘s
weakened industrial output took their toll on Mongolia‘s economy in the first few months of 2013,
with figures released in May by the National Statistical Office showing first quarter GDP growth of
7.2 percent, down from 16.7 percent for the same period in 2012.
The government‘s response to the slowdown in the first half of the year combined expansionary
fiscal and monetary policies. Using proceeds from a USD 1.5 billion bond sale in late 2012, the
government invested heavily in infrastructure, including the construction of roads linking six
provinces to Ulaanbaatar. Thanks in large part to the increase in state spending, GDP growth
accelerated in the second quarter, reaching 14.3 percent. The Bank of Mongolia lowered its policy
rate multiple times between January and June, eventually reaching 10.5 percent, down from 13.25
percent at the end of 2012. The central bank also introduced a new state-backed home loan scheme
in mid-June, which fixed mortgage interest rates at 8 percent, compared to the 15 percent average
previously charged.
Mongolia is keen to persuade international investors to look beyond the current political and
macroeconomic challenges weighing on its performance.
Source: Oxford Business Group
MINERS MAKE UP THREE-QUARTERS OF UMNUGOBI TAX REVENUE
Mining companies represented 77.2 percent of tax revenue to the Umnugobi Aimag provincial
government in 2013, reported Mongolian Mining Journal.
Mining companies paid MNT 56.6 billion out of a total MNT 73.3 billion in tax revenues to the
province, said the magazine, of which the Oyu Tolgoi copper-gold mine contributed 70 percent. The
remainder was 14 percent from Tavan Tolgoi JSC, 7.7 percent from Energy Resources LLC, 3.2
percent from SouthGobi Sands LLC, 3.2 percent from Erdenes Tavan Tolgoi LLC, 1.1 percent from
Mongolyn Alt Company (MAK), and 1.1 percent from Shenhua-MAK LLC.
Source: Independent Mongolian Metals & Mining Research
HERDERS TO RECEIVE MORTGAGE OPPORTUNITIES
Herders will be able to apply for mortgages beginning this year, reported the Ministry of Industry
and Agriculture Monday.
A head of the Regulatory Department for Implementation of Policy on livestock said herders seeking
mortgages must agree to permanently pay social insurance premiums and have their monthly
incomes registered with the Agricultural Stock Exchange.
Statistics show that 298,000 families own 45.1 million heads of livestock. A family with 200 heads
earns approximately MNT 4.8 million a year, compared with MNT 11.4 million for 500 heads and
MNT 51.6 million for 1,000.
Source: Montsame
PUBLIC TRANSPORT TO INTRODUCE E-PAY SYSTEM
The Ulaanbaatar Public Transportation Department will introduce an electronic payment system for
public transport this spring.
The department has submitted a summary of the proposed electronic payment system to
Ulaanbaatar Citizens' Representative's Khural for discussion. Costs will depend on the distance
traveled and number of spots, and ticket will be sold in advance.
A project by the Asian Development Bank with a similar aim was discussed last year but was not
implemented. Some companies plan to introduce the system in spring while other will do so in the
summer.
Source: Zuunii Medee
UB ORDERS THE REPLACEMENT OF OVER 1,000 ELEVATORS DUE TO ACCIDENTS
Over 1,000 companies with buildings in Ulaanbaatar will need to have their elevators replaced,
according to a report from the city-owned Ulaanbaatar Lift elevator company and state agencies
following recent accidents at buildings.

16. The final report of the first-ever mass inspection of elevator facilities was expected to be presented
to the city Authorities in January. Ulaanbaatar Lift, which was established in 2012, participated in
the inspection of 2,895 elevators that belong to 1,157 companies. The inspection took place over
the last three months, in cooperation with General Agency for Specialized Inspection and Authority
for Fair Competition and Consumer Protection.
The city will require the replacement of 265 elevators this year, said Ulaanbaatar Lift Director G.
Angar, and around 200 elevators next. The total cost for one elevator is some MNT 50 million
including custom tax and installation. More recently, new buildings in Ulaanbaatar have had better-
quality elevator from Korea installed, but installation and maintenance problems still persist. That
includes accidents at Peace Tower and Tselmeg due to improper installation.
Source: Unuudur
MONGOLIA CONSIDERS LAUNCHING SOVEREIGN WEALTH FUND
Plans to launch a sovereign wealth fund to use income generated from the mining sectors to
promote long-term development are currently being considered in Mongolia.
President Tsakhia Elbegdorj's bill on launching the "Treasury Fund," was discussed in the president's
civil hall on 24 January, reported the UB Post. The aim of the fund will be to use wealth from
Mongolia's substantial natural resources to benefit future generations.
Speaking at the consultations, presidential advisor Luvsandash Dashdorj criticized the government's
lack of a "clear system and policy" to handle revenues from the sector. Dashdorj pointed out that
accumulating USD 500 million a year in the fund from 2016 would leave Mongolia with some USD 230
billion by 2064. Elbegdorj's bill proposes spending up to 25 percent of the fund on education, with
investments starting in 2025.
Other countries in the region have already launched sovereign wealth funds as their import
revenues increase; they include Kazakhstan's national oil fund and the State Oil Fund of the
Azerbaijan Republic (SOFAZ).
Source: BNE
AUSTRALIAN SCHOOLS TO AID MONGOLIA FOR WATER ACCESS
Cairns-based organization MongoliAid wants 400 schools across the country to raise USD 500 each to
help build wells in Mongolia's Gobi Desert region.
The organization's Barry Jiggins says it is all about getting fresh water into the country's schools. "I
have been going to Mongolia for the better part of 10 years now and on many occasions I have
visited villages and seen schools that really struggle with clean water," he said. "Many of the schools
still rely on scooping up water from local streams."
Jiggins says the water projects they have completed are in need of funds for maintenance. "It is one
thing to build these water projects, but you need to maintain them; these communities have to
endure -40 degree temperatures in the winter," he said. "So from time to time, the pipes for
instance can freeze or the generators break down."
Jiggins said Australia can help by encouraging young people from around the country to collect
money for Mongolia‘s wells. "The paydirt (sic) for all of those kids raising money around Australia is
a live webcast connecting each of those 400 classrooms to the Bayangovi school grounds,‖ he said.
"So the kids in Australia can actually see and hear the Mongolian kids that they have helped... and
so they become part of the story and not just read about the story."
Source: ABC
FOR MONGOLIA, DIVERSIFICATION IS KEY, SAYS WEF
Mongolia, the hub of one of the world‘s fastest-growing economic regions, is the focus of a World
Economic Forum report published 30 January.
The report, ―Scenarios for Mongolia,‖ has been produced to map out potential long-term economic
outcomes of the country‘s recent period of double-digit growth, which to date has been generated
largely on the back of rapid development of its resources sector. The three scenarios identified for
the country‘s future are:

17. Regional Renaissance is where Mongolia finds itself at the heart of a dynamic economic area
comprising Northern China and Eastern Russia, combined with an integrated, open North Korea. In
this scenario, Vladivostok is a thriving seaport benefiting from an opening of Arctic sea lanes, and
the free movement of goods and people across borders is commonplace.
China Greening envisages a future where China has become a world leader in green technology and
the circular economy. This precipitates diversification in Mongolia towards solar and wind-power
generation and high-end organic food products.
Resource Tensions is an opposite outcome to Regional Renaissance, where nationalist sentiments
lead to territorial disputes, and natural resources are used for political leverage. This makes it
difficult for Mongolia to sell its main minerals and to diversify.
―Mongolia‘s long-term economic success depends significantly on how well it is able to develop its
mining industry and manage its revenues, but also on its ability to diversify and build trade and
investment relationships with its neighbors,‖ said Kristel van der Elst, senior director and head of
strategic foresight at the World Economic Forum.
Common policy responses identified in the scenarios include
improving the investment and business climate for both minerals and other sectors, designing a
sovereign wealth fund able to operate as an investment or development fund, and forging strong
political and economic relationships with its neighbors.
Source: India Blooms
TROLLEY BUS FARES DOUBLE
Ulaabaatar‘s cheapest public transport service, the trolley bus service, doubled its fares to MNT 400
shortly after a similar hike by Mongolia‘s public bus services.
Electric Transport LLC increased its trolley bus service fares from 200 MNT to 400 MNT on 25
January, a week after public transport bus services increased their fares from MNT 400 to MNT 500.
The company officials commented that the new costs for trolley bus service was in accordance with
an order issued by the City of Ulaanbaatar Transport Authority on 24 January.
Source: News.mn
SWINE FLU INFECTS 4 IN WESTERN MONGOLIA
Mongolian health officials confirmed that four people have been infected with the H1N1 virus, also
known as swine flu, in the western province of Bayan-Ulgii Aimag.
Nine people with suspected symptoms of the flu were discovered by a hospital in Bayan-Ulgii , and
four of them have tested positive for H1N1, said the report. The confirmed cases involved two
women and two infants.
The National Emergency Management Authority has decided to impose a week-long quarantine in
the provincial capital, where schools will be closed and no public events are allowed to be held
during this period.
Source: Xinhua
FOOT-AND-MOUTH DISEASE BREAKS OUT IN EASTERN MONGOLIA
An outbreak of highly infectious foot-and-mouth disease (FMD) in Sukhbaatar Aimag in eastern
Mongolia has been confirmed by the Mongolian State Central Veterinary Laboratory, Mongolian
media reported.
Currently, 86 head of cattle of 15 herder families were infected with FMD and 82 of them were
culled. Symptoms of FMD were observed in three sites, head of the district's veterinary department
said. Despite the efforts of the National Emergency Management Authority and the provincial
administration to contain the outbreak of FMD, the disease continues to spread in the country.
Mongolian officials are conducting testing and vaccination of livestock in nearby counties.
Disinfection stations were set up on key traffic routes in the district.
All traffic to Sukhbaatar has been blocked and only vaccinated students going to the capital city for
studies are permitted to leave the province. This was not the first outbreak of FMD in Sukhbaatar.
Despite vaccination measures, the disease breaks out in the province every year.

18. Source: Xinhua
LITTLE EVIDENCE FOUND OF EQUINE FLU INFECTING PEOPLE
Little evidence has been found of avian or equine influenza infecting humans, in a study carried out
in Mongolia.
Avian and equine influenza virus have been repeatedly shown to circulate among Mongolia‘s
migrating birds or domestic horses.
In 2009, 439 Mongolian adults, many with occupational exposure to animals, were enrolled in a
study exploring cross-species influenza transmission. Blood was drawn upon enrollment, and again
after 12 and 24 months. Participants were contacted monthly for 24 months and asked about
episodes of influenza-like illnesses. Study members confirmed to have acute influenza A infections
had respiratory swabs taken for analysis and comparison with equine, avian, and human influenza
viruses.
Over the two years of follow-up, investigations into 100 influenza-like illnesses were conducted.
Thirty-six were identified as influenza A infections, but none yielded evidence of the avian or
equine influenza virus.
While 37 participants had detectable antibody titers against the studied equine and avian viruses,
none was statistically associated with avian or horse exposures.
―As elevated antibodies against seasonal influenza viruses were high during the study period, it
seems likely that cross-reacting antibodies against seasonal human influenza viruses were a cause of
the low-level sero-reactivity against avian influenza virus or equine influenza virus,‖ the
researchers wrote. ―Despite the presence of AIV and EIV circulating among wild birds and horses in
Mongolia, there was little evidence of avian influenza virus or equine influenza virus infection in
this prospective study of Mongolians with animal exposures,‖ the authors concluded.
Source: Horse Talk
MONGOLIA PINS HOPES ON NEW LAWS TO BREATHE LIFE INTO MSE
Trading rooms at the Mongolian Stock Exchange (MSE) appeared empty in the early afternoon of a
December day in Ulaanbaatar. Most of the employees had left earlier to get ready for the corporate
year-end party scheduled for the same evening. Above the empty desks, the quotes of Mongolian
stocks scrolled by on the ticker. Only a handful of shares got actually traded in the morning session
– as always.
But with deeply reformed market legislation taking effect on 1 January, the MSE has reached a
turning point. The local brokerage Mongolian Investment Banking Group (MIBG) believes that "2014
is going to be the most exciting time in Mongolian equities" since 2009-2010, when the domestic
exchange grew by more than 130 percent. It bases this prediction on the new rules, introduced
through a wide set of amendments to the 2002 Securities Market Law, that make it easier for
international investors to get exposure to Mongolian equities, in a clear push to increase liquidity on
the exchange.
Custodian banks are responsible for the safe keeping of assets. Global investors generally rely on
custodians to administer their local holdings according to domestic regulations. As the new law
opens the way for custody services, local financial institutions are expected to introduce them in
the second half of 2014, paving the way for capital from international investors to flow in, boosting
liquidity and hopefully the prices of undervalued assets.
"If foreign custodians are in place in 2014, the MSE Top 20 could easily double to in excess of
30,000, from its current level of 15,500," Nick Cousyn of the local broker BDSec JSC says.
The revised market law also widens the range of tradable securities to include, among others,
derivatives and warrants; allows dual-listing of the many foreign-listed companies whose assets are
mostly located in Mongolia; improves disclosure practices, which today go unnoticed; and sets up
harsher fines for those who do not comply.
Given the country's tiny USD 10 billion economy, it is clear that things can change on a dime in a
matter of weeks. The new legislation may help investment flow in again, to the benefit of the MSE.
Source: BNE

19. RUSSIA REPORTS SUSPECTED FOOT-AND-MOUTH OUTBREAK IN SIBERIA
Russian authorities on Tuesday reported a suspected outbreak of foot-and-mouth disease in eastern
Siberian region of Zabaikalsk, which borders China and Mongolia.
The Veterinary and Phyto-Sanitary Surveillance Service (VPSS) said clinical signs of the disease were
identified in samples of cattle at a private farm, adding measures to contain it were being taken.
Samples have been sent for diagnosis.
Foot-and-mouth disease is a highly infectious and sometimes fatal disease that affects cloven-
hoofed animals such as sheep, goats, cattle and pigs. It is not a direct threat to humans, but can
disrupt trade and measures to cope with it can be expensive.
Source: Reuters
COPPER SURPLUS „UNDERPLAYED‟; BUT MORECAPACITY NEEDED, SAYSMACQUARIE
―Copper supply always seem to be an issue at the top of the agenda in metals markets, and 2014 is
set to be no different,‖ says Macquarie Commodities Research.
In the recently published ―Commodities Comment—Copper and the supply conundrum,‖ Macquarie
Commodities Research observed ―…our base analysis continues to see a 2014-15 surplus market,
while the longer-dated story remains robust.‖ ―We feel cyclical tightness in the refined copper
markets means the impact of the growing concentrate surplus has been underplayed to date, and
will have a growing influence during HI 2014 both in terms of market balance and flow through into
price,‖ Macquarie analysts suggested. ―However, with mine supply set to slow, the specter of a
growing and sustained refined market deficit from 2016 onwards means the second half of this year
may see more focus on a need to incentivize projects once more.‖
Macquarie estimates that global cooper mine output grew 6.5 percent year-on-year last year with a
1,083 kiloton gain surpassing 2004‘s 1,007 kiloton record. The area where mined copper supply
substantially exceeded Macquarie‘s forecast was Chile, ―which after a decade of stagnation grew
mine output 6.3% on our estimates to 5.78 million tonnes. This came without any contribution from
Codelco… where output was flat YoY.‖
Source: Mine Web
COPPER MINERS: OUT OF THE RED
Austerity has fans somewhere – at least when it comes to big miners becoming attractive
investments again, after years of ploughing capital into the busted dream of the commodity
supercycle. Last year‘s downward march in earnings forecasts for the FTSE 350 Mining Index has
slowed. This is hopeful for share prices.
But there is a more important shift going on. Cost estimates for four big miners – Rio Tinto Group,
BHP Billiton Ltd., Glencore Xstrata Ltd. and Anglo American PLC – are also falling, according to
Nomura. Analysts are starting to buy the hair shirt schtick. But should investors? Here is the
problem: mines are tricky to run. That makes it trickier still for outsiders to gauge to what extent
any given hole in the ground can be run more efficiently. That is to say nothing of whether the ore
being dug out is cheap to turn into metal in the first place. This requires finicky, mine-by-mine
analysis of what costs are being cut, and where.
Copper miners show this well. The world‘s biggest mines are in costly places such as Chile‘s
Atacama Desert. Anglo American and Chile-based Antofagasta both reported handsome levels of
2013 copper production on Wednesday. Shares in both rose more than 6 percent. The record
production came, in Antofagasta‘s case, with overall gross cash costs within target for 2013. The
company plans for them to stay flat in 2014. Investors might buy into that. But the big question is
what the miners do with some of their less exciting mines, those whose low ore grades put them at
risk of becoming uneconomic to run. Capex plans for these mines, in particular, need to be cut.
This takes us back to the finicky stuff. And the not so finicky (but as hard to read) question of what
problems financial tensions in China may bring to metals demand. Those analysts can sure be
flighty.
Source: Financial Times

20. CHINA SMOG CRACKDOWN BOOSTS HIGH-GRADE IRON ORE
Will seaborne supply growth overwhelm Chinese steel production? Or will it manage to keep pace?
These have been key questions facing the iron ore market over the past couple of years - a market
of lesser importance than copper and coal to Mongolia, but is steadily growing as it plans to produce
higher-quality goods. But the story in 2014 has several added levels of complexity. One is Beijing‘s
war on pollution.
Mills in China‘s key steel making provinces of Hebei and Jiangsu are under pressure to lower
emissions and comply with new air pollution standards following smog crises last year in several
major cities. As a result, they are buying higher-quality ore, known in the industry as lump, that
can be loaded directly into blast furnaces without the need for sintering, a dirty process that is a
major source of pollution and sulfur dioxide.
Premiums for lump over the miners‘ regular product, fines, are increasing as tougher environmental
standards force Chinese steelmakers to use a different mix of raw materials in their furnaces. The
same is also true for iron ore pellets.
That is good news for several major mining companies, including BHP Billiton Ltd., Rio Tinto Group
and Vale SA, which are among the top suppliers of high-grade ores. A further increase in premiums
will help cushion a decline in the benchmark price, which has dropped 5 percent in the year to date
to USD 124.20 a tonne mainly on concerns about slowing economic growth and a credit squeeze in
China.
At a recent investor seminar, Andrew Harding, the head of Rio Tinto‘s iron ore business, predicted
there would be ―more and more work‖ to curtail sintering plants in and around Hebei province.
China‘s crackdown on smog could provide a prop to prices, or at least the high-quality ore and
pellets produced by the likes of Rio Tinto and Vale.
The trend toward high-quality ores might even help some high-cost Chinese producers at the
expense of lower-quality producers in India, Iran and Mexico.
Source: Financial Times
POLITICS
MONGOLIA REDUCES GOLD TAX TO BOOST GOLD TRADE
Mongolia will cut the gold mining tax to reduce illegal gold mining and smuggling and to boost state
control of gold trade.
According to a revision of the minerals law passed by parliament on Friday, the gold mining tax is
reduced from 10 percent to 2.5 percent for gold mining companies that sell their mined gold to the
central bank or its accredited commercial banks. Meanwhile, the royalty rate was eliminated for
gold mining operations.
The revision, which is valid for five years, is boycotted by the opposition Mongolian People's Party.
With the measures, tax revenue will drop, but currency reserves of the central bank will increase.
―We estimated that revenue in tax will go down by 40 million to USD 50 million, while currency
reserves in the bank will increase by 1.7 billion to USD 2 billion," said Mining Minister Davaajav
Gankhuyag. "When the tax rate drops, the gold trade amount will increase and it will boost money
flow into the economy," he said.
Source: Shanghai Daily
PARLIAMENT BEGINS TALKS ON PETROLEUM BILL
Parliament held initial discussion on the draft Law on Petroleum on 29 January.
The bill included an article that would allow for exploration at border area to prevent oil extraction
from the operations at the opposite side of the border. The bill has 10 percent of exploration fees
to go to the local government.
Parliament passed on the bill to the Standing Committee on Economy to be prepared for final
discussion.
Source: Udriin Sonin

21. PARLIAMENT MAY CALL SPECIAL SESSION
Parliament will meet earlier than scheduled for the spring session, on 24 March, to pass an
amendment to the 2014 budget.
The autumn session of Parliament is scheduled to conclude on 5 February. Parliament is expected
to discuss projects that were put on suspension until they could be audited and reviewed by law
makers.
Source: Zuunii Medee, Independent Mongolian Metals & Mining Research
MRA ISSUES 72 LICENSES IN 2013
The Mineral Resources Authority reported that 2013 saw the fewest number of licenses for mining
granted in almost a decade in a summary for last year.
Mongolia issue 72 licenses las year - the lowest number in eight years. In 2013, Mongolia saw 1,126
domestic companies, 295 completely foreign invested projects in 2013, and 134 joint ventures with
foreign investment. licenses were revoked for include one China-Mongolian joint venture, nine
domestic companies and one company registered with the Virgin Islands.
Source: Zuunii Medee
MONGOLIAN EXPORT-IMPORT FIRM SIGNS MOU WITH NEPALESE BUSINESSES
Mongolia and Nepal have signed a memorandum of understanding for the promotion of business and
private investment between them.
The memorandum received the signatures from import-export firm Arliyanhath Shendiyan's
Naratasetseg Bolormaa and Naratsetseg Gaanbatar as well as representatives Nepalese companies.
Ulaanbaatar-based Arliyanhath Shendiyan will open a large super store in the capital July 2014.
Source: Republica
U.S. SENATORS URGE MONGOLIA TO LIFT TRAVEL BAN ON DETAINED KAPLA
Two U.S. senators have asked Mongolia to allow U.S. businessman Justin Kapla, who is a witness in a
corruption investigation, to exit the country.
Minnesota senators Amy Klobuchar and Al Franken requested Mongolia allow Kapla to return to the
U.S. on ―humanitarian‖ grounds to spend time with his ailing stepfather, according to copies of the
letters that Kapla sent. The letters were confirmed by Erik Wadkins, a press assistant in Klobuchar‘s
office in Washington, D.C., and Michael Dale-Stein, deputy press secretary in Franken‘s Washington,
D.C. office. Kapla has been blocked from leaving Mongolia since October 2012 when investigators
designated him a witness in a criminal case against D. Batkhuyag, the former chairman of
Mongolia‘s Mineral Resource Authority. At the time, Kapla was president of SouthGobi Sands, a coal
miner whose Hong Kong-listed parent SouthGobi Resources Ltd. is majority owned by Rio Tinto
Group.
Batkhuyag was jailed last February for six and half years for illegally issuing more than 100 mining
licenses, according to Mongolian news agency News.mn. His sentence was later reduced to four
years, the outlet reported. The anti-corruption agency‘s probe found he had reissued four
suspended SouthGobi permits and transfered another license to a company run by associates,
according to News.mn and UB Post newspaper reports.
Kapla, no longer employed by SouthGobi Sands, was later accused of money laundering and tax
evasion by Mongolia‘s anti-corruption authority, although no charges were formally made, he said in
an email on 28 January. A native of Elk River, Minnesota, Kapla met with authorities on 29 January
to review the government‘s audit of SouthGobi‘s accounts. He received a seven-page summary of
the audit, which showed ongoing differences between the two sides, he said. SouthGobi Resources
has received the forensics expert report from the investigator and is reviewing it, said Bertrand
Troiano, SouthGobi‘s chief financial officer, who is based in Hong Kong.
―The ban is still in effect - that is the only leverage they have on SouthGobi,‖ Kapla said on 30
January. ―Everyone thought that it was going to change and we were all very disappointed in this
latest result.‖
Mongolia imposes travel bans on foreigners designated a witness or suspect in a criminal case.

22. Australian lawyer Sarah Armstrong was held for two months in late 2012 in connection with the
SouthGobi case. Two former colleagues at SouthGobi, Hilarium Cajucom and Cristobal David, both
Philippine nationals, have also been banned from exiting the country in connection with the
investigation.
Source: Business Week
FORMER JUST GROUP HEAD ACCUSED OF NEW EMBEZZLEMENT CRIMES
Authorities have reported findings that former Just Group head Sh. Batkhuu was manipulating seven
accounts of five citizens to take MNT 100 million every month since 2010. They allege Batkhuu
reported it as interest earned from savings that never existed.
The new allegation was discovered during an investigation into N. Amgalan, the former first deputy
director of Khadgalamj Bank, also known as Savings Bank. Authorities allege the two were changing
the names of the account holder, as well as the registration number. They also allegedly removed
the names of unidentified co-owners of some accounts. Authorities said the cost amounted to
several billion tugrug.
Source: Undesnii Shuudan
CAPITAL BANK HEAD FOUND NOT GUILTY OF MISMANAGING MNT 2BN IN CUSTOMERS' FUNDS
A court has found the head of Capital Bank not guilty of crimes related to the loss of MNT 2 billion
of customers' money while sentencing a former employee of Capital Bank to over 10 years in prison.
Executive Director A. Ariunbold and Senior Specialist of Finance Management Z. Munkhsuren were
found not guilty of charges related to the violation of the Law on Banking and crimes related to
failing to meet the responsibilities of their roles at the bank. Former teller Kh. Mandakh received a
sentence of 10 years and one month in prison for violating the Law on Banking and for crimes
related to the deceiving of individual to eventually result in the financial loss.
Source: Udriin Sonin
AWARD-WINNINGMONGOLIANENVIRONMENTALISTGETS21YEARSFOR„TERRORISM‟
A Harsh sentence is the latest blow for Mongolia's green movement, which is struggling to contain
environmental damage from mining
Mongolian environmental activist Tsetsegee Munkhbayar, who was awarded the Goldman
Environmental Prize in 2007 for his campaign to protect water sources from mining pollution, was
sentenced on 21 January, together with four associates, to 21 years in prison for ―acts of
terrorism.‖ Munkhbayar was arrested on 16 September when attending a protest during which a
firearm was discharged. Security officials also allegedly found an explosive device in a nearby
building.
While not condoning violence, the Goldman Prize states that ―it is widely understood that the shot
was not fired on purpose and nobody was injured.‖ Media reports referenced by Asia Correspondent
said that Munkhbayar had brought a gun and inactive grenades to the protest. The website spoke to
Enkhbat Toochog of the U.S.-based Southern Mongolian Human Rights Information Center, who said:
‖Munkhbayar‘s actions highlighted the desperation of helpless Mongolian pastoralists, who had no
choice but to resort to an unconventional approach to defend their land, rights and way of life after
exhausting all other means.‖
Efforts by Munkhbayar and the alliance of environmentalists that he set up have forced mining
companies to agree to limit their pollution of rivers as well as the displacement of local herders.
However, following an economic downturn and a change of government in 2012, the advances
Munkhbayar managed to push through have been rolled back.
Source: Time
MONGOLIAN POLICE ARRESTED AN AMERICAN CITIZEN CHARGED OF HUMAN TRAFFICKING
Mongolian media reported 28 January that the Criminal Police Authority and State Investigation
Authority arrested a U.S. citizen for alleged crimes of human trafficking.
Patrick Earl Maanao, a U.S. citizen residing in Mongolia since 2008, was arrested from his home 24

23. January for allegedly attempting to lure Mongolian women into prostitution in Saipan under the
guise of helping them to find work in the United States. Authorities say Maanao was working with
his wife Unursaikhan, a Mongolian citizen they said was responsible for identifying potential victims
and organizing travel. The couple were married in Mongolia and have two daughters.
When he was arrested from his home, his wife Unursaikhan was in the U.S. territory of Saipan.
Photos of naked women and documents of the 11 Mongolian women about to be sent abroad were
found at Maanao's home. He had planed to send the women by the first week of the February,
according to the story. The women were between the ages of 20 and 24.
Police said the couple struck a deal with the women that they would receive 20 percent of the
profits earned from their work in Saipan. The women were supposed to work at nightclubs and
karaoke as strippers and table-girls there, said Maanao. The police said the investigation is still
ongoing.
Source: Mongolian Views, News.mn
ULAANBAATAR TO EMPLOY SMART GOVERNMENT INITIATIVE
Ulaanbaatar City Mayor Erdene Bat-Uul Wednesday issued an ordinance for the establishment of a
working group that will be responsible for a program to implement the president's Smart
Government initiative in the capital.
The mayor charged the working group, led by Ulaanbaatar General Manager Yo. Erdenechuluun, to
developing a program and action plan for 2014 to implement the goals of President Tsakhia
Elbegdorj's "From Big Government to Smart Government" initiative in Ulaanbaatar. The Mayor
ordered that the working group be prepared to present their plans by 15 February.
Source: Montsame
MONGOLIA, NEW ZEALAND FIRST TO BE WELCOMED INTO SOCHI 2014 OLYMPIC VILLAGE
Athletes from Mongolia and New Zealand were the first to be officially welcomed into the Olympic
Village in Sochi 2 February.
Although neither are Olympic powerhouses, New Zealand's team in Sochi will be confident of
securing their first Winter Olympic medal since slalom skier Annelise Coberger became the first ever
Southern Hemisphere medalist at Albertville 1992. They are sending 15 athletes competing across
five sports this time around, with the brothers Jossi, Byron and Beau-James Wells in the freestyle
skiing events expected to lead the way, while Mongolia will be represented by two cross-country
skiers. All competitors, guests and residents of the Olympic Villages will also be given a Sochi 2014
souvenir in the form of a pair of gloves – billed as "a warm memento of the Winter Games which will
keep the athletes cozy in any weather."
Source: Inside the Games
MONGOLIA, CRICKET'S FIELD OF DREAMS
One of the first things that psychologist and park cricketer Doug Scott noticed about Mongolian
teammate Battulgaa Gombo at the crease was that when a ball hit him, he did not flinch. ''They're a
nation of herders,'' Scott said. ''They're tough people. Tough and strong.''
Gombo is the founder, head and sole qualified coach of the Mongolia Amateur Cricket Association.
It is, to say the most, a fledgling organization. It consists of a handful of Mongolians in Melbourne
and expat Australians, British and Indians in Ulaanbaatar. It has some donated gear, but no clubs or
teams, nor a ground. It is scouting for a suitable and affordable block of land in Ulaanbaatar. Scott
sees it this way: ''Mongolia is all steppes. The whole country is a cricket ground.''
Gombo's mission is for Mongolia to field a team in international cricket. (International Cricket
Council staff, though encouraging, have told him to think of it as a 50-year plan. Gombo is
undaunted. While in Australia, Gombo did a CA coaching course, and he and Scott are pretty sure
he is the only accredited cricket coach in Mongolia. Last year, he ran a clinic at secondary school
No. 34 in Ulaanbaatar and was delighted by his reception. Younger Mongolians, their horizons
widened by television and the Internet, were open to new sports and pastimes, he said.
Gombo and his family are soon to return to Mongolia, and you suspect the proselytization of cricket

24. will become, if not his life's work, his lifetime hobby. Already, he and Scott are planning for a joint
Australian-Mongolian team to do an exhibition tour of Mongolia later this year.
Source: Sydney Morning Herald
US BASKETBALL PLAYER SAYS HE WILL SEEK MONGOLIAN CITIZENSHIP
Dornod Tanan Garid basketball team player Fred Woods has voiced his intention to apply for
Mongolian citizenship so he could play for Mongolia‘s national team.
Woods, 26, said he is ready to surrender his U.S. citizenship if needed necessary to join Mongolia‘s
national league because the Mongolian National Basketball Association says it may only recruit
Mongolian citizens. MNBA General Secretary S. Tulga expressed gratitude for Woods‘ request and
said the team with his inclusion "might become one of Asia's top teams."
Woods was named the best defensive player of the year in 2013, when Tanan Garid won the
Mongolian Basketball Championship.
Source: Montsame
MONGOLIA'S POLITICAL PENDULUM GETS CLOSER TO EQUILIBRIUM
Mongolia‘s politicians are well versed on the impact that rising living costs and the rapid
depreciation of the currency is having on the middle class - they also understand the solution.
Attitudes of Politicians across the country have taken a 180 degree turn towards foreign investment
into Mongolia.
The fall out of protectionist sentiment that once characterized Mongolia's political landscape has
provided a reality check to politicians and the public alike. That includes a 20 percent depreciation
in the Mongolian tugrug, a 50 percent drop in foreign direct investment (FDI), and further
commitments by the government to continue spending in order to maintain economic growth.
―Reflecting on the past year we do believe that the Government of Mongolia has done an excellent
job of keeping the inflation of non-durables under control through the Price Stability Program,‖ said
the Source. ―That said, we do not believe that the Government of Mongolia can keep the current
Price Stability Program going for long.‖ The cost of borrowing, said the Source, will likely be too
steep, leaving only foreign investment as the remaining solution.
Positive legislative approvals made by government include: approval of the new Investment Law and
establishment of the Invest Mongolia Agency (abolishing SEFIL); approving the Securities Market
Law, allowing dual listing and creating a relaxed capital market environment; approval of the
Investment Fund Law, aimed at attracting institutional investors into the market; approval of the
2025 Mining Policy; amendment of the Minerals Law for Gold Transparency Initiative; and
decreasing the gold royalty by 50 percent to 2.5 percent for producers who sell to Mongol Bank.
Expected success for the future include the the amendment of the Minerals Law in accordance with
the 2025 Mining Policy - eventually to lift the ban for the issuance of new exploration licenses and
the amendments of the Law on Government of Mongolia to end the practice of appointing
parliament members to ministerial positions.
Each of these pieces of legislation is critical to the development of the market,‖ said the Source.
Source: Mongolian Investment Banking Group LLC
NEW MONGOLIAN LAWS
The following amendments, addenda and annulment to laws were published in the latest weekly
Government bulletin. Unless otherwise decided by Parliament, they will take effect ten (10) days
after publication.
Date Laws
03.02.2014 Law on Border port
Addendum to Law on Government of Mongolia
Amendments to Law on Land

25. Amendments to Law on Border of Mongolia
Amendments to Law on Foreign citizen's legal status
Amendments to Law on Fight against human Trafficking
Amendments to Law on Foreign citizen's legal status
Amendments to Law on National security
Amendments to Law on Fight against human trafficking
Amendments to Law on Citizenship
Amendments to Law on Travel on personal matters, immigration of Mongolian citizen
to foreign country
Amendments to Law on Sending workforce to abroad, importing workforce, specialist
from abroad
Amendments to Law on Investment
Amendments to Law on General Taxation
Amendments to Law on State sign fee
Amendments to Law on Civil registration
Amendments to Law on Land
Amendments to Law on Fight against Corruption
Addendum to Law on Value added tax
Addendum to Law on Fire weapons
Addendum to Law on Military officer's pension, allowance
Amendments to Law on Settlement of common and personal interest, prevention
from conflict of interest in public service
Amendments to Law on Criminal procedure
Annulment of Some provision of law on Prosecutor organization
Please visit BCM's website, Legislative Working Group, for a summary of Mongolian laws. BCM
members who wish to access complete versions of thelaws and regulations in Mongolian language
are welcome to email the BCM office: info@bcmongolia.org.
ANNOUNCEMENTS
FRANCHISING & BUSINESS OPPORTUNITIES EXPO AND BUSINESS TOUR
The Business Council of Mongolia and Australia Mongolia Business Council are organizing the second
Mongolian business mission for ‖Franchising & Business Opportunities Expo‖ in Sydney, March 27 to 1
April.
The Franchise Expo will feature over 100 businesses: Internet and telecommunication, printing,
health and fitness, landscaping, leisure and travel, cafes and fast food, business and financial
services, retail, packaging and delivery, services, vending, domestic and commercial services, and
restaurants. By joining the official delegation to the Franchising and Business Opportunities Expo
guests will receive free business support as an international buyer.
For more information call 11-317027 or 94092113, or email erka@bcmongolia.org, for registration
and additional information about the event. The registration deadline is February 28.
BCM MEMBERS RECEIVE 15% DISCOUNT FOR OIL AND OIL SHALE MONGOLIA 2014
The Oil and Oil Shale Mongolia 2014 international investment conference, hosted by the Petroleum
Authority of Mongolia, will be held in Ulaanbaatar from 9 to 10 April 2014.
. The event will be attended by international investors, oil, gas, and oil shale companies, service
providers, consultancies, equipment suppliers, and traders.
Delegates will have a unique opportunity to network with industry's key contacts at the country's
first international investment conference on oil, gas, and oil shale. They will have the opportunity
to obtain vital information on legislation and policies on oil, gas, and oil shale exploration and
production regulations from the officials of the Ministry of Mining and Petroleum Authority of

26. Mongolia. Moreover, projects on oil refinery, exploration, production, plus oil shale projects will be
presented.
BCM members will receive an exclusive 15 percent discount. For more information cal +976 9909-
1765 or 9910-5877, email info@oilmongolia.com or logon to OilMongolia.com.
CELEBRATE THOUSAND CAMEL FESTIVAL, 6-8 MARCH, DALANZADGAD
Nomadic Expeditions, one of the top travel specialists for Mongolia since 1992, is organizing the
Thousand Camel Festival scheduled for 6 to 8 March in Dalanzadgad, Umnugobi – a pristine and
remote countryside desert location.
Accommodations will be arranged at the award-winning Three Camel Lodge during the festival.
Don't miss this opportunity and enjoy a short winter escapade outside of Ulaanbaatar this coming
March.
For more information, click here to see a detailed Itinerary of the events scheduled as well as
prices. To register, email your name, title, company name & contact info to saruul@bcmongolia.org
to register for the Festival.
“COAL MONGOLIA 2014” REGISTRATION HAS OFFICIALLY BEGUN
"Coal Mongolia- 2014" the annual coal sector investor 4th International Conference shall be
organized from 20th to 21st of February 2014. The scope of this forum has been expanding every
year also has earned a reputation as one of the global leading and ingenuity forum in the coal
sector and became the largest international Coal Investors Conference and Exhibition.
The objective of this forum is to discussing key topics such as attracting foreign investment for coal
exploration, mining and processing projects in Mongolia. The current development trends in the
coal sector, future perspectives, investment, legal environment, infrastructure and latest
technologies also it is designed to increasing the competitiveness of Mongolian coal in the Asian
market.
As of 2013, it was a challenging and difficult year for the Mongolian sector despite the fact that the
mining companies made a historical record exploring 28.6 million tons of coal by November last
year and exported 16 million tons of coal.
Please note that BCM members will have 10% discount to register for the event. Please contact
saruul@bcmongolia.org to get a special discount code. For more information, call 70115590 or
www.coalmongolia.mn,www.mining.mn.
“MINER AND SUPPLIER-2014” TO BE HELD FOR 4TH YEAR, 13-14 MARCH 2014. CHINGGIS KHAAN
HOTEL
BCM members will have 10% discount to register for the event. To get the discount code, please
contactsaruul@bcmongolia.org.
It is single and larger event which is going to be held in the sector of Mongolian mining supply and
executive officers, supply managers, financial directors and engineers have great expectations for
this event which influences goods and service research that is broadly familiar within the sector.
It will be organized under the slogan ―LET‘S MOVE TO THE DEVELOPMENT NEW STAGE!‖ where
mining companies will share their experiences, introduce with advanced technique, technology and
management. Upon your participation at our meeting and exhibitions, you will be provided with the
chance to share your experiences, conclude your achievement and successes, introduce with
advanced technique, technology and management, determine your resources and chances, properly
adjust your supply and establish relationship with new customers.
For more information please contact naranbat@infomine.mn or 70116009.

27. “MM TODAY” ON MNB-TV, FRIDAY, 19:00 TO 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.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
Presentations section: The following presentations from Jan 27 Monthly meeting.
- Richard Kobayashi, CEO, Standard Investment LLC - "The year 2014 starts with new IPO on the
Mongolian Stock Exchange"at the BCM Monthly Meeting January 27, 2014
- D. Irmuun, Director of Division for Promotion and Consultancy Services, Invest Mongolia Agency -
"IMA Consultancy Services for Investors and Account Manager's role."
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.
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „INTERVIEWS„, MONGOLIAN
BUSINESS NEWS‟, „PHOTO GALLERY‟
The following presentations were made at the BCM monthly meeting on Dec 9, 2013:
- ―Why Real Estate is the Road to Riches in Mongolia,‖ Harris Kupperman: Why Real Estate is the
Road to Riches in Mongolia
- ―Business Council Promoting Private-Sector Growth,‖ B.Byambasaikhan: Business Council
Promoting Private-Sector Growth
- ―Quality Supplier Development Center: Your partner for doing business in Mongolia‖, J.
Bayarmagnai, Executive Director, Quality Supplier Development Center /USAID Grantee;
- ―Impact of Corruption in Mongolia‖, L. Sumati, Director, Sant Maral Foundation;
- ―Investment Protection Issues in Mongolia‖, D. Jigjidmaa, Investment Promotion Program Manager,
IFC Mongolia;
- Presentationof―WinWinwithMongolia‖.
The following 13 presentations are from the Mongolia Investment Summit- 2013 in Hong Kong, Nov
18-20:
- Regulatory Update: Navigating Mongolia‘s legal framework for foreign direct investment,
Javkhlanbaatar Sereeter, Director General, Foreign Investment Regulations and Registration
Department, MINISTRY OF ECONOMIC DEVELOPMENT OF MONGOLIA;
- Investment keynote: Investing into Mongolia in 2013 – Where do the opportunities lie?, James
Passin, Co-Founder and Manager, FIREBIRD MONGOLIA FUND;
- Development keynote: Key challenges and opportunities for continued growth in Mongolia,
Randolph Koppa, President, TRADE AND DEVELOPMENT BANK OF MONGOLIA;
- Outlining government policies and long-term plans for Mongolia‘s mining sector, Amarjargal
Khurelbat, Head of International Cooperation Division, MINISTRY OF MINING OF MONGOLIA;
- From copper to met coal: Demand and price outlook and expected impact on Mongolia‘s economy,
Ghee Peh, Managing Director, Metals and Mining Research, UBS SECURITIES ASIA;
- How Mongolian banks and financial institutions are dealing with the challenges and opportunities
of a fast growing economy, Norihiko Kato, Chief Executive Officer, KHAN BANK;
- Update on the Mongolian stock market – Impact of the new Securities Law, Altai Khangai, Chief
Executive Officer, MONGOLIAN STOCK EXCHANGE;
- From investment banking to trade finance to micro credits to insurance, Amartuvshin Hanibal,