1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 333 – July 10, 2014
NEWS HIGHLIGHTS:
Business
Mongolia says delay at OT not its fault;
Viking Mines signs third coal supply MoU for Berkh Uul project;
Mongolia signs MoU for solar farm in Gobi;
Fragrant Prosperity initiates 60% acquisition of Mongolian national lottery;
Silk Road closes $5 mn private placement to invest in frontier markets;
Oxford Business Group report highlights Mongolia’s untapped potential;
UK’s Gradon Architecture invited to design Mongolian landmark;
Winsway appoints executive vice president;
Opening ceremony held for new Dinosaur Museum;
APU commemorates 90th anniversary;
KfW and ADB sign $2bn co-financing partnership;
ING gets back to banking;
EBRD participates in Kazakh Railways Eurobond issue.
Economy
Mongol Bank: FX auction, swap agreements, 1-and 4-week bills, treasury bills;
Mongolian foreign exchange reserves decline to $1.6 bn;
Mongolia data shows growing economic, financial risk, says Fitch;
Mongol Bank and People's Bank of China renew currency swap agreement;
Malaysian businessmen should tap Mongolian market, says Matrade;
Ulaanbaatar plans for 2015 bond;
Mongolia's shantytowns set for redevelopment;
Iron ore boosted by China restocking;
Copper confounds bears with strong gains;
Stronger growth predicted in China.
Politics
Imported goods for Amgalan power plant receive tax exemptions;
Asia Foundation releases 4th corruption perceptions study report;
China opens consulate general at Zamyn-Uud;
Mongolia and Serbia lift mutual visa requirements from July 17;
S. Korean military delegation visits historical sites;
Mongolia, Kyrgyzstan premiers hold official talks;
Mongolia, Germany pledge to boost cooperation;
BCM holds 3rd annual Football Cup tournament.
Others
New Mongolian Law;
Announcements;
BCM Updates - Working Groups; Websites; Social Networks; Photo Gallery.
ECONOMIC INDICATORS
Weekly Market Indicators;
2. Inflation;
Central bank Policy Rate;
Currency Rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank International SOS
Wagner Asia Automotive Invest Mongolia Agency
BUSINESS
MONGOLIA SAYS DELAY AT OT NOT ITS FAULT
Mongolia’s prime minister urged Rio Tinto Group to hasten development of the underground
expansion at the Oyu Tolgoi copper mine, shifting blame for the mine’s slowdown away from his
government.
“We are acting, and at the same time we are asking Rio Tinto why they are being slow to act,”
Altankhuyag Norov told Bloomberg TV Mongolia on July 7. “We very much hope Rio Tinto will act
quickly.” Altankhuyag said there is “no single cause to blame the Mongolian government” for
project delays.
Rio and the Mongolian government have been at loggerheads for more than a year on the terms of a
USD 4 billion project finance package to fund expansion at the underground mine, where 80 percent
of Oyu Tolgoi’s wealth lies. In August, Rio laid off 1,700 workers at the venture following a decision
to delay expansion. Rio controls the mine through its 51 percent ownership of Turquoise Hill
Resources Ltd., the Vancouver-based company that has a 66 percent stake in the mine. The
Mongolian government owns the remaining 34 percent. Talks between the two sides continue before
a 30 September deadline for the project-financing terms. In May, 14 of 15 banks agreed to extend
their respective commitment letters for the mine’s expansion, according to a Turquoise Hill
statement.
“There might be delays regarding the general state of the global economy and specifically on Rio
Tinto’s part,” Altankhuyag said. “But on the Mongolian government side, nothing is held back or
slowed down.”
In the latest issue to arise between the government and the project developers, Mongolia’s Tax
Authority last month claimed Oyu Tolgoi LLC has unpaid taxes, penalties and disallowed
entitlements associated with the venture. Turquoise Hill said Oyu Tolgoi LLC has paid all taxes and
charges required under its agreement with the government and has complied with the country’s
laws. The disputed amount is about USD 130 million, Ganbold Davaadorj, a director of Oyu Tolgoi,
said in a June 23 interview.
3. Source: Bloomberg
VIKING MINES SIGNS THIRD COAL SUPPLY MOU FOR BERKH UUL PROJECT
Viking Mines Ltd. has signed a third future coal supply agreement with a Mongolian state-owned
joint stock industrial company for its Berkh Uul bituminous coal project in northern Mongolia.
The non-binding memorandum of understanding was signed with Darkhan Metallurgical Plant (DMP)
located in Darkhan City. DMP is in the process of expanding its current 100,000 tons per annum
steel milling capacity, based on commencement of mining of iron ore deposits located near Berkh
Uul, with the expansion due for completion in 2015.
“This MOU confirms that there is significant local industrial demand for Berkh Uul coal and gives us
great confidence that there is potential to further expand our customer base,” chairman Jack
Gardner said.
Under the MoU, DMP has stated its intent to enter into future purchase agreements for BU Project
coal. As with the earlier MoU’s from Darkhan Power Station and Erdenet Power Plant, it also
establishes testing of a bulk sample as a basis for technical evaluation of the coal.
Source: Proactive Investors
MONGOLIA SIGNS MOU FOR SOLAR FARM IN GOBI
Officials from the Energy Ministry and Asian energy companies signed a memorandum of
understanding in Ulaanbaatar on 2 July for the construction of an eight-megawatt solar power farm
in Uvurkhangai Aimag. Signing the deal was State Secretary of the Ministry of Energy Davaadorj
Delgertsogt, Shinsung Solar Energy Co., Ltd. President Lee Wan-keun, Wooil Engineering Co. Ltd.
President Lee Yang-hee, and Mon-Korea LLC Director B. Osorgarav.
Parties have negotiated for the construction of an eight-megawatt solar farm near the Bayanteeg
coal mine, located at Nariinteel Soum, Uvurkhangai Aimag. Mongolia is pushing its Gobitec plan to
create a sources for clean, renewable energy in the Gobi Desert. Surplus energy, according to the
plan, could be exported abroad to countries such as Russia, China, South Korea, and Japan.
Mongolia hosted the Development of Renewable Energies in Northeast Asia: Gobitec-Asian Super
Grid Forum in Ulaanbaatar on 26 June to discuss renewable energy power generation and
partnership opportunities in Northeast Asia. Policy makers from Russia, China, North Korea, South
Korea and Japan attended, along with businessmen and international organizations, to share ideas
on investment opportunities for clean renewable energy projects.
Source: Info Mongolia
FRAGRANT PROSPERITY INITIATES 60% ACQUISITION OF MONGOLIAN NATIONAL LOTTERY
Fragrant Prosperity PLC on 7 July announced its proposal to acquire 60 percent of the issued share
capital of Monvest Group Pte Ltd (Monvest) for a possible GBP 3 million (USD 5.139 million).
Monvest Group owns Mongolia's national lottery.
Source: Fragrant Prosperity PLC
SILK ROAD CLOSES $5 MN PRIVATE PLACEMENT TO INVEST IN FRONTIER MARKETS
Silk Road Ventures Ltd. on 4 July announced the closing of a private placement of USD 5 million.
Silk Road intends to use the proceeds of this private placement of 50 million shares at a price of
$.10 per share to invest in high growth frontier markets internationally, including Mongolia,
Myanmar and Mozambique. The company intends to capitalize on a wide range of investment
opportunities by backing ventures and making acquisitions in high growth industries such as
financial services, telecom, media, and property sectors as well as building strong management
teams, seeking joint ventures with successful local entrepreneurs and adding value through access
to capital and bringing international operational expertise to businesses.
Separately, Silk Road is also preparing an application for listing on the Canadian Securities
Exchange.
Source: Silk Road Ventures Ltd.
4. OXFORD BUSINESS GROUP REPORT HIGHLIGHTS MONGOLIA’S UNTAPPED POTENTIAL
Oxford Business Group marked the launch of its third in-depth analysis of Mongolia’s economy at
Best Western Premier Tuushin Hotel in Ulaanbaatar on 1 July.
The Report: Mongolia 2014 charts the country’s new infrastructural development, which it says,
together with new legislation governing foreign direct investment and a regulatory overhaul, can be
instrumental in building investor confidence and help diversify investment in sectors of the
economy such as agriculture. The report features contributions from President Tsakhia Elbegdorj
and Prime Minister Norov Altankhuyag, among others.
“Our publication highlights not only the wealth of untapped business opportunities which are ripe
for development, but also the government’s commitment, through legislative change, to
encouraging new investment,” said OBG’s country director, Anne Delarue. “It’s a pleasure to share
our findings with the global business community and relay, in our new publication, Mongolia’s
efforts to overcome the hurdles it faces and the country’s achievements.”
Source: UB Post
UK’S GRADON ARCHITECTURE INVITED TO DESIGN MONGOLIAN LANDMARK
A North East architecture practice has been invited to put forward design plans for a landmark
building in Ulaanbaatar.
Gradon Architecture has worked with fellow Mongolian architects to design a new ministerial
building for a prime site near to the Mongolian Parliament. The design is part of a government
competition to build an innovative new ministry building, with ecological features, that will
accommodate hundreds of politicians and civil servants.
According to the World Health Organization, Ulaanbaatar is the second most polluted city in the
world. The use of wood or coal-burning stoves for cooking and heating in the traditional ger districts
is a major cause of the pollution and the government is trying to take action to change behavior and
clean up the air. Encouraging the construction of energy-efficient homes and buildings is part of the
government’s approach to tackling pollution and the ministry competition seeks to inspire the
nation through an architectural design with green features at its heart.
Tanja Smith, associate architectural technologist at Gradon Architecture, said: “We wanted to
create an excellent working space for ministers and civil servants and to make a statement about
how future construction projects could be embraced. "We have sought to show the strength of the
Mongolian nation and its people through design, as well as providing functionality and practical eco-
features to create an energy-efficient building.”
Gradon Architecture’s design includes a host of environmental features including energy-efficient
heating, a water recycling system and excellent levels of insulation. It also includes a roof top
garden and glare shields on windows, as well as cultural references such as the incorporation of the
symbol “Ulzi Khee” (meaning ‘happiness and eternity’). The winning building will be constructed on
a site directly to the west of the parliament and the capital’s main Chinggis Square.
“We have looked at Mongolia’s history and culture and based our design on the curves of a horse as
the animal is a major symbol of Mongolian culture going back through time to Genghis Khan and
beyond. We think it is a building combining function, efficiency and important cultural references,”
said Smith.
Source: Bdaily
WINSWAY APPOINTS EXECUTIVE VICE PRESIDENT
Winsway Coking Coal Holdings Ltd. on 7 July announced the appointment of Andreas Werner as an
executive vice president, effective that day.
Werner, 56, was the chief executive officer of Raiffeisen Bank International Greater China before
joining Winsway. Before joining RB International, Werner was the import-export manager of China
Teppichhouse, a trading firm based in Vienna from 1989 to 1992, manager of the Austrian Chamber
of Commerce for Austrian group exhibitions from 1992 to 1994, and joined Raiffeisen Zentralbank
Austria AG (RZB) in 1994, where he became the chief representative of the RZB Beijing
Representative Office and the general manager of the RB International Beijing Branch. Werner has
5. not held any directorship in other publicly listed companies in the last three years.
Werner will work towards strengthening the overall management of Winsway and explore new
business opportunities.
Source: Winsway Coking Coal Holdings Ltd.
ERDENES TT SELECTS BDSEC AS INVESTMENT ADVISOR
Ulaanbaatar-based broker BDSec JSC on 4 July announced that it had won the tender to provide
investment advisory services to state-owned miner Erdenes Tavan Tolgoi LLC. Erdenes TT
announced an open tender for advisory services for a initial public offering.
Source: BDSec JSC
OPENING CEREMONY HELD FOR NEW DINOSAUR MUSEUM
Culture Minister Ts. Oyungerel on 8 July cut the ribbon at a ceremony for the opening of the new
Dinosaur Museum, located at what used to be the Lenin Museum at Freedom Square in Ulaanbaatar.
The “T. Bataar and the Amazing Dinosaurs” exhibit opened that evening where Tarbosaurusbataar
and other priceless fossils were on display. The rare and famous Mongolian fossils include the
armored Saichania, the Gallimimus, the Oviraptor, and Protoceratops. The museum will offer
educational programs about dinosaurs and paleontology.
Source: News.mn
APU COMMEMORATES 90TH ANNIVERSARY
The beverage-giant APU JSC this year celebrates its 90th anniversary, celebrating on Children’s Day
with a circus performance at the National Asia Circus for 1,700 children of employees and gifts from
the APU staff.
Mongolia’s oldest company, founded on April 15, 1924, APU dominates the beverages industry, says
the Source. The company originated with a small alcohol distillery in the 1920s and slowly
progressed to include the production of beer. Over the years the company has successfully broken
into new beverage markets such as the vodka sector in the 1970s and the milk sector in 2006.
Within the last decade the company has remodeled several of its facilities and in 2012 completed
its fully-automated warehousing center.
With a continued striving for innovation and push for development, APU plans to expand its grasp on
the beverage market and hopes, through aggressive expansion, to target foreign markets with its
premium vodka brands.
Source: Mongolian Investment Banking Group
KFW AND ADB SIGN $2 BN CO-FINANCING PARTNERSHIP
The German Development Bank (KfW) will co-finance up to USD 2 billion over three years with Asian
Development Bank (ADB) to promote development in the Asia and Pacific region, particularly in
Bangladesh, India, Indonesia, Mongolia, and Vietnam.
The co-financing program will focus on energy, urban infrastructure, climate change, small and
medium enterprise financing, vocational training, and regional integration. ADB president Takehiko
Nakao and KfW executive board member Norbert Kloppenburg on 4 July signed a memorandum of
understanding in KfW’s Berlin office, where the two parties agreed to partner for the exchange of
information and mutual objectives.
"The midterm review of ADB’s strategic framework emphasized the importance of scaling up and
expanding co-financing to leverage additional resources for development,” Nakao said at the signing
ceremony in Berlin. “This partnership will enable ADB to help its developing member countries
strengthen key sectors that will contribute to their overall development.”
Source: Montsame
ING GETS BACK TO BANKING
Mongolia's first foreign ING Bank NV has cleaned up its act and can soon get back to the business of
being a bank.
6. The sale of its insurance arm, NN Group, via a bargain-basement initial public offering, will mean a
EUR 3.4 billion (USD 4.63 billion) balance sheet write-down in the third quarter, but that is in line
with expectations. ING's bank is left with a very comfortable 10 percent core tier one capital ratio.
NN Group traded well on its market debut Wednesday: the shares jumped more than 7.5 percent
from its EUR 20 offer price, which was in the middle of the pricing range. Back at ING, things are
looking rosier too.
The process of restructuring the group and repairing its balance sheet has been a huge drain on
management time and capital over the past five years. The NN sale follows disposals of insurance
businesses in the United States—now called Voya—Brazil and Asia. ING still has a minority stake in
Voya and a 70 percent stake in NN—and the proceeds from selling these should generate surplus
cash for the group.
Before the crisis, European bancassurers were allowed to count equity in their insurance businesses
toward the capital base of their banks—a practice known as double leverage. Much of the cash
coming to ING Groep from Voya and NN sales will have to be retained to replace this historic double
counting of capital. But once this is covered, ING reckons it could generate a surplus of EUR 5.4
billion at the group level, based on the current market value of its remaining insurance stakes. Of
course, selling the rest of NN at current market values would also entail further write-downs against
the book value on ING Groep's balance sheet. Plus the group must still repay its last EUR 1 billion
installment of crisis funding back to the Dutch government.
With ING trading at about 8 times 2014 tangible book value for an expected 12 percent return on
tangible equity, it is cheap compared with peers. Next year should be the start of much better
things.
Source: Wall Street Journal
EBRD PARTICIPATES IN KAZAKH RAILWAYS EUROBOND ISSUE
The European Bank for Reconstruction and Development (EBRD) has participated in a bond issuance
by neighboring Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ). The Bank
participated in the longer-term tranche of the Eurobond.
The proceeds of KTZ’s Eurobond issuance will be used to finance much-needed logistics
infrastructure across the country, including on the border with China. The private sector will be
actively involved. By further developing its logistics business, Kazakhstan Railways will facilitate
increased cargo transit, especially on the critical China-Europe trade route.
“We are pleased with this successful issuance of the Eurobond by KTZ. The proceeds will be
invested in better logistics infrastructure, which will improve the quality of transportation and help
to remove physical and non-physical barriers to trade along the route from China to Europe, once
known as the Silk Road,” said EBRD Director for Kazakhstan, Janet Heckman.
EBRD will support KTZ with structuring the first logistics hub public-private partnership (PPP)
project in one of the regions of Kazakhstan and will also provide assistance with improving the
corporate governance practices of JSC KTZ Express, KTZ’s logistics operator. On 20 June, Kazakh
Railways successfully completed the placement of a Swiss-franc-denominated Eurobond on the SIX
Swiss Exchange. The total amount of the issue is CHF 285 million (USD 319.36 million). It comprises
two tranches of five and eight years for CHF 100 million and CHF 185 million respectively.
Source: European Bank for Reconstruction and Development
ECONOMY
MONGOL BANK: FX AUCTION, SWAP AGREEMENTS, 1-AND 4-WEEK BILLS, TREASURY BILLS;
The Bank of Mongolia on 8 July auctioned USD 28.7 million and CNY 68.1 million to commercial
banks for closing rates of MNT 1,832.10 and MNT 295.51, respectively. The central bank also
reported that it had received an equivalent of USD 17 million from swap agreements with
commercial banks.
The central bank reported on 10 July the issue of one-week bills worth MNT 228.5 billion at a
7. weighted interest of 10.5 percent a year. The central bank reported on 10 July the issue four-week
bills worth MNT 134 billion at a weighted interest of 10.72 percent.
The central bank reported on 9 July MNT 43 billion in bids for the issue of 12-week treasury bills
with a face value of MNT 70 billion. Each unit was sold at a discounted price of MNT 1 million each
with a weighted average yield of 11.17 percent. Each unit was sold at a discounted price of MNT 1
million with a weighted average yield of 14.75 percent.
Source: Bank of Mongolia
MONGOLIAN FOREIGN EXCHANGE RESERVES DECLINE TO $1.6 BN
Mongolia's foreign currency reserves are falling to levels worrisome for many onlookers.
The Bank of Mongolia on 2 July reported on its website that foreign exchange reserves had dipped
52.6 percent compared with the same period last year to USD 1.6 billion USD. The Mongolian
Treasury Fund had reserves of USD 3.38 billion as of May while international analysts have
repeatedly warned that foreign exchange reserves have been declining to worrying levels. Last
month, two analysts from Morgan Stanley financial services cooperation, Desmond Lee and Gaurav
Singhal, cautioned that if foreign reserves continue to decline in the coming months, Mongolia
would approach a point at which only two months of imports could be covered. Foreign exchange
reserves are needed by Mongolia to provide confidence in the tugrug as well as pay off debt.
The chief investment officer of Mandal Asset Management LLC, G. Otgonjargal, noted that Mongolia
has enough foreign currency reserves to cover 16 months’ imports. “Due to the decline in foreign
exchange reserves, the central bank will have difficulty stabilizing exchange rate fluctuations,” he
said. “Hence, it will become more difficult for businesspeople to predict exchange rates and plan
their business decisions in coming months.
Otgonjargal added that Mongolia could supplement currency reserves with the extra gold purchased
by the central bank this year. “Foreign exchange reserves can also be increased in the long term if
foreign investment, debt flow or the balance of payments increases,” he said.
Source: UB Post
MONGOLIA DATA SHOWS GROWING ECONOMIC, FINANCIAL RISK, SAYS FITCH
Mongolian foreign-reserves data released by the central bank has confirmed that economic and
financial stability is under pressure, said Fitch Ratings in a statement dated 8 July.
“Mongolia has largely failed to build adequate fiscal and external buffers against commodity price
volatility to which its economy is becoming increasingly exposed,” reads the Source. “Exceptionally
loose fiscal and monetary policy amid a challenging external environment is exacerbating external
accounts which are already weak, and adding to financial risks.”
Central bank data through to the end of May show gross foreign reserves falling by 27 percent to
USD 1.6 billion, from USD 2.2 billion at end the end of 2013. Reserves now provide a hair less than
two months of external payment coverage, “Well below the 'B' range median of 3.2 months,” reads
the Source. Reserves are also likely being bolstered by Mongolia's draw from swap agreements with
the U.S. Federal Reserve and People's Bank of China. Foreign liabilities stood at USD 960 million,
according to central bank data, which suggests that net reserves could be as low as USD 540 million.
“Weakening external accounts combined with expansionary monetary and fiscal policy have fed
through to the Mongolian currency, which has depreciated by 10.1% against the U.S. dollar year-to-
date, following a 17.6% decline in 2013. The result is that macroeconomic performance continues to
deteriorate with rising inflation and slowing growth, despite the extensive stimulus.”
Source: Fitch Ratings
MONGOL BANK AND PEOPLE'S BANK OF CHINA RENEW CURRENCY SWAP AGREEMENT
Mongolia has extended its currency swap facility with China on 14 May 2014 for another three years.
Bank of Mongolia Deputy Governor Enkhbayar Batshugar signed an renewal agreement for CNY 10
billion (USD 1.61 million) over the next three years with People's Bank of China Governor Hu
Xiaolian. Both sides believe the swap agreement will help maintain regional financial stability and
facilitate bilateral trade and investment between Mongolia and China. Since the signing of the
8. original swap agreement in 2011, Mongolia's usage of the yuan has grown, along with trade and
economic cooperation. The People’s Bank is also considering expanding the currency swap facility
by CNY 10 billion CNY 20 billion (MNT 4 trillion).
Source: Bank of Mongolia
MALAYSIAN BUSINESSMEN SHOULD TAP MONGOLIAN MARKET, SAYS MATRADE
The Malaysia External Trade Development Corporation (Matrade) is encouraging Malaysian
companies to tap Mongolia's emerging highly affluent middle class.
Deputy Chief Executive Officer Datuk Dzulkifli Mahmud said Mongolian middle and high-end
customers were embracing high-quality products and services due to their stronger purchasing
power. "The presence of many branded retail outlets in Ulaanbaatar reflects the new trend of
consumption. It offers huge business and investment opportunities for Malaysian companies," he
said in a statement.
For the first five months of 2014, Malaysia's trade with Mongolia increased 68.8 percent to MYR 59.8
million (USD 18.86 million) with exports increasing 70.9 percent to MYR 59.6 million compared with
the same period last year. Last year, Malaysia's trade with Mongolia grew 42.3 percent to MYR
130.22 million with exports rising 46.2 percent to MYR 128.27 million, driven by petroleum
products, electronics and electrical products, palm oil, processed food and wood products.
Other potential sectors to tap in Mongolia includes infrastructure development, tourism, hotels and
hospitality, healthcare, prepared food, energy as well as mining.
Source: Bernama
ULAANBAATAR PLANS FOR 2015 BOND
The Ulaanbaatar Citizen's Council on 8 July approved plans for a tugrug-denominated debt offering
for next year.
City officials said the bond would be spent on an industrial park for Nalaikh, a logistics center at
Emeelt, as well as an automobile complex. The Ulaanbaatar Governor Office has received advice
from the World Bank on the issue, which in a 2012 study reported that Ulaanbaatar could issue up
to MNT 347 billion in debt securities.
“In order to accomplish some planned projects and programs, we need to raise a certain amount of
capital,” said Deputy Mayor responsible for Finance and Economic Issues N. Bataa.
Although the Ulaanbaatar administration may issue bonds on its own accord, a year's borrowing may
not exceed revenue collected from the year prior and a year's repayment due must be less than 15
percent. National public debt may not exceed 40 percent of GDP. With debt already reportedly
above 40 percent, Ulaanbaatar would not be allowed to issue the bond, unless Parliament passes
new legislation to alter the regulations.
Source: Info Mongolia
MONGOLIA'S SHANTYTOWNS SET FOR REDEVELOPMENT
Ulaanbaatar is home to around 40 percent of the country's population—and nearly 800,000 of those
live in a sprawling residential area known as the ger district with no running water, no central
heating, sporadic garbage collection, and no sewage system. Now, all that may change as the
Mongolian government approved a development program in the district.
In May, parliament gave the green light to a USD 160,000 loan agreement to upgrade its
infrastructure. The Ulaanbaatar Urban Services and Ger Area Development Investment program is
also designed to support socioeconomic development by creating local business hubs. Few
improvements have been delivered so far, but the government appears focused on developments in
this rapidly expanding district. Ulaanbaatar's population nearly doubled between 2000 and 2012 to
1.3 million, growing at an annual average rate of six percent. Around 60 percent of the capital's
population now lives in the ger district. According to the World Bank, unemployment among ger
residents hovers around 62 percent compared to 21 percent in traditionally residential areas. Gers
typically have inadequate educational and medical facilities—further compounding the area's high
unemployment.
9. Meanwhile, Mongolia's economy grew by 11.7 percent in 2013—becoming one of the world's most
rapidly expanding economies, according to the Asian Development Bank. The main drivers for this
growth have been the mining industry with a wealth in natural resources such as copper, gold, and
coal.
Selenge Enkhbayar, a local resident, said: "Children inside the district have many dreams, but their
life situation limits them." She said many children stay at home to help their family instead of going
to school. Schools run three to four shifts a day to handle the growing number of students, which
cuts down the length of school days.
Source: Al Jazeera
IRON ORE BOOSTED BY CHINA RESTOCKING
Iron ore dropped to within a whisker of a two-year low last month as the market struggled to digest
a wave of new low cost supply. But after reaching USD 89 a ton in mid-June, the price has slowly
recovered.
On Friday, benchmark ore, with 62 percent iron content, for immediately delivery into China was
trading at USD 96.5 a ton, up 1.7 percent on the week. However, the commodity, which generates
large profits for miners such as BHP Billiton Ltd., Rio Tinto PLC and Vale SA, is still down 28 percent
in the year to date. The last time iron ore traded at or around current levels was in October 2012
and prices rallied to USD 160 a ton within in six months driven by a sharp restocking cycle in China.
However, few analysts see history repeating itself. Unlike 2012, the seaborne iron ore market is in
surplus and inventories in many parts of the steel supply chain are high or in line with historic
norms.
“Over the last week or so, the iron ore price has shown signs of hitting a temporary buffer as an
improvement in demand and some moderate restocking triggered a flurry of short covering in the
swaps market,” Credit Suisse report in a report. “This could continue for a week or two yet, but the
trend remains firmly on the downside and begs the question of when excess supply will be
rationalized,” it said.
China produced around 1.5 billion tons of iron ore in 2013 or 340 million tons on an import
equivalent basis. Some small domestic mines have already closed or cut output in response to
declining prices. Credit Suisse estimates current domestic iron ore output is currently running 28
percent below 2011’s peak rate. However, the bank says most of this production was cut at the
start of the year when mines did not reopen after winter and Chinese new year. More recently,
output has stabilized with production in May up 1.4 percent. One reason is that a lot of Chinese
supply is either state-controlled or vertically integrated with steel mills.
Source: Financial Times
COPPER CONFOUNDS BEARS WITH STRONG GAINS
Copper rose for a 10th successive day on Thursday, boosted by an improved outlook in China and
increased investor confidence in base metals.
The metal, used in electronics and construction, reached USD 7,180 a ton for three-month delivery
on the London Metal Exchange. This is a level last seen on 20 February, shortly before concerns
about possible unwinding of copper financing deals in China sent the price tumbling more than 10
percent. Some analysts forecast the price would fall further towards USD 6,000 a ton. Instead,
copper has gained steadily since March and is up 7 percent over the past fortnight.
Vivienne Lloyd, base metals analyst at Macquarie, said copper had benefited from a resurgence in
fund manager interest in commodities—and industrial metals in particular—after a stronger second-
quarter performance. “Funds have started to look at commodities with a gleam in their eye again
and are allocating more money to the sector,” she said.
Positive economic data from the United States and China, which consumes more than 40 percent of
global base-metal output, have contributed to the rally in the prices of metals, including zinc,
nickel, lead and aluminum. In copper’s case, the gains are also due to short covering by investors
who had taken bearish bets following allegations of fraud against a Chinese metals company in
Qingdao suspected of pledging the same inventories to different companies as collateral for loans.
10. Fears that other financing scandals would be uncovered and cause other stocks tied up in financing
deals in Chinese warehouses to flood the market have so far proved unfounded.
The physical market is tight with London Metals Exchange warehouse inventories having fallen from
nearly 700,000 ton a year ago to a low of 154,700 tons last week. But, in the past few days, 2,350
tons of copper have been delivered to sheds in South Korea. Analysts expect warehouse stocks to
rise in the coming months as global mine production increases—the first ripples of a wave of new
supply that is forecast to come online in the next two years, and to keep the market in surplus.
Source: Financial Times
STRONGER GROWTH PREDICTED IN CHINA
China’s economic growth quickened in the second quarter from the previous three months, but
further modest government support measures will still be needed, Prime Minister Li Keqiang said on
Monday of the economy Mongolia depends on to drive its own growth.
Li said that the Chinese economy still faced downward pressure and that the government would
increase its use of targeted measures to bolster growth. His cautiously optimistic remarks may raise
market confidence ahead of China’s second-quarter economic report, due on 16 July. Analysts
polled by Reuters say that they expect China’s growth for the April-June period to have steadied at
7.4 percent.
“China’s economic performance in the second quarter has improved from that in the first quarter,'’
Li said. “However, we cannot lower our guard against downward pressures.” He added, “We will
keep up our composure and not adopt strong stimulus. Instead, we will increase the strength of
targeted measures.”
To lift China’s flagging economic growth, which hit an 18-month low of 7.4 percent in the first
quarter of 2014, the authorities have cut taxes, ordered regional governments to speed up spending
and reduced the amount of cash that some banks have to hold as reserves. Use of these so-called
“targeted measures” are meant to help areas of the economy with real business needs, and is a
departure from the past when China would cut interest rates or reserve requirements for all banks
and ramp up spending across the country. But on the back of China’s rapid credit growth in recent
years, some experts —including the International Monetary Fund—have urged the Chinese
authorities to desist from drastically loosening policy and to focus on pursuing needed reforms.
A series of surveys of China’s manufacturing and services sectors suggests that growth in China may
have stabilized in recent months, though a cooling property sector is now shaping up to be the
biggest threat. Li said that the authorities would further fine-tune policies and he expressed
confidence that the government’s 2014 growth target of around 7.5 percent would be met. But he
added that the authorities do not plan any major stimulus program.
Source: Financial Times
POLITICS
IMPORTED GOODS FOR AMGALAN POWER PLANT RECEIVE TAX EXEMPTIONS
The Cabinet Secretariat on 5 July ordered the exemption from customs tax and value-added tax for
some 1,000 pieces of equipment and materials to be used for the construction of the Amgalan
thermal power station.
Source: Montsame
ASIA FOUNDATION RELEASES 4TH CORRUPTION PERCEPTIONS STUDY REPORT
Mongolia's business community is beginning to see progress made in the battle against corruption,
according to a 7 July presentation at the Best Western Premier Tuushin Hotel for the fourth Study
of Private Perceptions of Corruption (STOPP) as part of the Strengthening Transparency and
Governance in Mongolia (STAGE) project.
“Observations of the business environment from 2004 until now show that for the business
community in Mongolia the biggest obstacle remaining is corruption,” said L. Sumati, director of the
11. Sant Maral Foundation, which produced the report in partnership with the Asia Foundation.
“Nevertheless, the latest screening from 2012 to 2014 showed a visible progress comparing to
previous years. Regretfully, some indicators are also showing reverse trends from the good start in
2012. It also overlaps with a very difficult general economic situation in the country. It is evident
that urgent measures are necessary to improve the situation in the private sector.”
The fourth survey interviewed 330 senior-level managers of Mongolian businesses in Ulaanbaatar in
April 2014. The STOPP surveys are envisioned to inform critical debates between state actors and
the business sector to promote good governance in their exchanges which in turn will foster the
business-enabling environment. The project, funded by the United States Agency for International
Development (USAID), aims to strengthen democratic governance by building a more transparent
and accountable regulatory and legislative environment while promoting principles of checks and
balances. Implemented since December 2012, the STOPP survey has captured data on the
experiences of the business community to find out how corruption debilitates the business
environment.
The study found that satisfaction with the general business environment had declined from 27.2 to
12.4 since 2012. The number of businesses that consider unofficial charges as a major obstacle had
declined by half since 2012. Respondents from the business sector consider taxes to be the major
obstacle and the tax office to be the main institution creating obstacles to doing business. A
significant decline of 10 percentage points — nearly half — since October 2013 in the number of
respondents experiencing or observing incidents of corruption in the previous month was reported
and 17 percent of companies had written policies against corruption, compared with 9.7 percent in
2012.
Source: Asia Foundation
CHINA OPENS CONSULATE GENERAL AT ZAMYN-UUD
China has opened a consulate general in Zamyn-Uud, a Mongolian border town in Dornogobi Aimag.
The office is China's first consulate general to Mongolia and the first foreign diplomatic mission in
Zamyn-Uud. At the opening ceremony on Thursday, Mongolian Deputy Foreign Minister D.
Gankhuyag exchanged views with his Chinese counterpart Xie Hangsheng on bilateral relations and
further cooperation. Chinese Ambassador Wang Xiaolong and Governor of Dornogobi P. Gankhuyag
also attended the ceremony.
Zamyn-Uud is located in the Gobi Desert along the Mongolia-China border across from Erenhot, a
town in China's Inner Mongolia Autonomous Region.
Source: Xinhua
MONGOLIA AND SERBIA LIFT MUTUAL VISA REQUIREMENTS FROM JULY 17
Mongolian and Serb citizens can now enjoy visa-free travel for their countries beginning 17 July,
according to the Civil Aviation Authority of Mongolia.
Mongolians and Serbs will be granted visa-free travel for up to 90 days over any three-month period.
The visa agreement was signed in Belgrade on 7 November 2013, and the Cabinet Secretariat
approved the regulation on 3 December.
The Cabinet on 9 July also approved 90-day, visa-free travel between Mongolia and Latvia for
diplomatic and official passport holders.
Source: Info Mongolia, Montsame
S. KOREAN MILITARY DELEGATION VISITS HISTORICAL SITES
A Korean defense delegation visited Mongolia for an exchange program from 7 to 11 July.
The aim of the annual exchange program is to strengthen the traditional continuation of friendly
relations and cooperation between the two countries in defense. Headed by headed by Mr. Choi
Dung-chol, a chair of the Mobilization Department at South Korea’s Ministry of Defense, five
servicemen will visited historical sites throughout Mongolia such as Orkhon Falls and the Erdene Zuu
monastery
Source: Montsame
12. MONGOLIA, KYRGYZSTAN PREMIERS HOLD OFFICIAL TALKS
Prime Minister Norov Altankhuyag and his Kyrgyz counterpart gave a press briefing on 8 July about
official talks held.
Mongolia and Kyrgyzstan agreed to support each other in the development of parliamentary
democracy. Also, parties negotiated to collaborate on the studies of Mongolia’s experience in the
civil registration and electoral systems, in addition to how to deliver government services to the
public. For trade, Mongolia and Kyrgyzstan plan to cooperate in areas such as the export of
Mongolian wool and cashmere products and the import of Kyrgyz sugar and various fruit products.
“Mongolia’s experience gained in developing democracy is helpful in the development of
parliamentary democracy of the Kyrgyz Republic. A great potential of opportunities to partner are
open in economic sector between the two countries, particularly in the spheres of mining, animal
husbandry and tourism,” said Kyrgyz Prime Minister Djoomart Otorbaev.
Source: Info Mongolia
MONGOLIA, GERMANY PLEDGE TO BOOST COOPERATION
Mongolian President Tsakhia Elbegdorj held talks with visiting German Foreign Minister Frank-Walter
Steinmeier in Ulaanbaatar on Monday, with both sides vowing to boost bilateral cooperation in
various fields.
Germany had rendered huge support for Mongolia in the 1990s during its political and economic
reform, Elbegdorj said. "To continue this tradition, our two countries collaborated to open a new
institute of minerals and technology in Nalaikh district and the most important thing is an
investment in the educational sector," he added.
Steinmeier, for his part, said Germany is willing to push forward relations and cooperation with
Mongolia in such fields as economy, environment protection, environmentally-friendly technology
and renewable energy. Germany will continue to help Mongolia with youth training programs, said
the foreign minister, who arrived here on Sunday for a two-day official visit.
Source: Global Post
BCM HOLDS 3RD ANNUAL FOOTBALL CUP TOURNAMENT
The football team representing Khan Bank LLC won the Business Council of Mongolia's (BCM's) 2014
Football Cup, held 5 and 6 July.
Over 200 players on 16 teams gathered at the two-day tournament. In second place, behind Khan
Bank, was Ard Financial Group, while Golomt Bank took the bronze medal for third by winning over
Wagner Asia, the defending champion.
This year's activities included commemoration of Transwest Mongolia LLC's charity to donate profits
of its food and beverage stand sales revenue to the “Beautiful Heart” children’s fund, and a
cheerleader performance and football juggling competition hosted by Mongolian Properties.
TransWest and Mongolian Properties sponsored the event.
Also during the event, a “Bubble Football” contest got many laughs as 10 senior executives from
BCM member entities rolled, tumbled and bumped around!
Source: BCM
NEW MONGOLIAN LAWS
The following addendum to a law was published in the latest weekly Government bulletin. Unless
otherwise decided by Parliament, it will take effect ten (10) days after publication.
Date Law
08.07.2014 Addendum to Law of Corporate Income Tax
Please visit BCM's website, Legislative Working Group, for a summary of Mongolian laws. BCM
members who wish to access complete versions of the laws and regulations in Mongolian language
13. are welcome to email the BCM office.
BCM WORKING GROUP NEWS
The BCM Environmental Working Group met on Thursday, 26 June with 15 members attending.
Bayarmaa A, Vice Director, BCM, moderated the session.
New member: Shinetsetseg-Breakthrough PR
Participants: Binderya Oyunbaatar, Dolzmaa Davaasuren-The Nature Conservancy, Tirza Thevnissen-
The Asia Foundation
Guests: Baigalmaa Puntsagmaa-Mongolian Water Forum, Tsenguun Tumurkhuyag, Munkhjargal
Bayarlkhgva-Sustainability East Asia, Altai Onkhor, Kevin Trzcinski-Mongolian National University.
Speakers and topics were:
- Introduction of Urban Services Program by Tirza Theunissen, TAF Deputy Country Representative,
Asia Foundation;
- Impact of Climate Change on Water Resources by P. Batima, Director, Mongolia Water Forum;
- Application and Use of Solar Thermal and Energy Efficient Technologies in Mongolia by Kevin
Trzcinski, Vice President of International Relations, Mongolian National University.
If you have any questions, please contact Erdenetsetseg at erka@bcmongolia.org.
_________________________________________
The BCM Logistics Working Group met on Tuesday, 10 June, with 7 members attending.
Mattias Ahlin-Scania, Chairman, moderated the session.
New members: D Enkhbat CEO-Mongolian Express; Rentsendorj Yondon, Mongolian Opportunities
Fund; Buyanderler Tsogt-Ochir, Logistics Supervisor, Cummins Mongolia; Nobuo Okada, General
Manager, Mitsui Co.
BCM`s Logistics Working Group Chair, Mattias Ahlin is leaving the country. Tengis Garamgaibaatar,
Chief Executive Officer, Monroad, was elected as WG chairman. Congratulations to him for his new
role as BCM`s Logistics Working Group Chairman!
Speakers and topics were:
1. Follow up from last meeting’s discussion
a. Main challenges for the Mongolian Logistic sector
2. Discussion about BCM Logistics Working group role and focus areas
(Mission Statement)
a. Transport modes; road, rail, air
b. Customs efficiency
c. Legal framework; Loads and dimension, safety, standards
d. Stakeholders: Ministries, customs, transport organizations, vehicle manufacturer association
e. Transport efficiency
3. Discussion about meeting intensity and organization
4. Other business
Next meeting was scheduled on 7 August 2014. If you have any interest joining the new and
growing Logistics Working Group, please contact Erdenetsetseg at erka@bcmongolia.org
_________________________________________
The BCM Capital Markets Working Group met on Thursday, 29 May, with 11 members attending.
Howard Lambert /ING Bank/ and Nick Cousyn /BDSec/, Co-chairmen, moderated the session.
Guest: Michael O`Malley-Executive Director at ISG MineElect.
Speakers and topics were:
Facilitating foreign direct investment (FDI) and Capital Markets update - by Byambaa Losolsuren,
Leader of FDI Capital Markets group of 100 Day Revitalization Council, and Partner of Mandal
Capital LLC.
14. If you have any recommendations on Capital Markets for the Revitalization Council, please contact:
erka@bcmongolia.org
_________________________________________
The BCM Tax Working Group met Thursday, May 22, with 12 members attending.
Onch D. - Co-chair, BCM’s Tax WG and Deloitte Onch a moderated the session.
Attending were representatives from the following BCM member entities - Deloitte Onch, PwC,
Ernst & Young, KPMG Tax, OT, Terra Energy, Petro Matad, MahoneyLiotta, TMZ and BCM.
New members: Amarbayasgalan and Tuvshinbayar from Terra Energy.
Meeting agenda:
• Overview - B. Byambasaikhan, Secretariat, 100 Day Revitalization Program; Chairman, BCM;
• Initial new tax policy thoughts from WG members.
On May 29 BCM’s Tax Working Group sent a detailed study of the current value added tax (VAT)
deficiencies and recommendations for efficiencies to result in greater tax revenue to the 100 Days
Revitalization Council.
Please contact T.Erdenetsetseg, BCM Working Group Coordinator, erka@bcmongolia.org .
_________________________________________
The BCM ‘expanded’ Legislative Working Group (LWG) met on Tuesday May 20, with 42 members
attending at Corporate Hotel meeting room.
This was the third expanded WG meeting on the draft Amendments to the Minerals Law. The 2 ½
hour session included BCM members from mining companies, embassies and the MNMA. Special
guests were 5 members of Parliament and others from the Mining Ministry, Geological Society and
Export Society.
LWG Co-chair, James Liotta, Mahoney Liotta, moderated the session.
The following 11 presentations were made:
- A healthy Private Sector Driven Industry (1997 and 2006 Minerals Law / Amendments / what to
look for. By Doug McGay – longtime resident in the Minerals and petroleum industry;
- Investor views and concerns about making investments in Mongolia and its mining sector. By
Randolph Koppa – Vice Chairman, BCM and President, TDB;
- A view from the Mining Majors by Sunjidmaa Jamba from Peabody Energy;
- A supply side view by Stephen Potter, Wagner Asia;
- Tax Issues impacting the Minerals Industry by D. Onchinsuren – Co-chair BCM Tax Working
Group and Deloitte Onch Audit;
- Use of MSE for State Privatizations by Nick Cousyn – Co-chair, BCM Capital Markets Working
Group and BDSec;
- Views from within the Industry by N. Algaa – Executive Director, MNMA;
- Transparency and Public Comment by David Wyche – Economic/Commercial Section Chief,
Embassy of the United States of America
- International Agreements that attract bi-lateral investment, and views on the State ownership
of assets by Maxim Berdichevsky – Counselor & Senior Trade Commissioner, Embassy of Canada
- Some specific thoughts on the Amendments by James Liotta – Co-chair, BCM LWG and
MahoneyLiotta Law Firm; Bayar Budragchaa - Co-chair, BCM LWG and ELC Law Firm.
As MP Garamgaibaatar, Chair of the Standing Committee on Economic Affairs and Head of the
Parliamentary Working Group on the Draft Amendments to the Minerals Law, commented at the
meeting's conclusion - "We should not really change general structure and core contents of the draft
Amendments."
Also MP Garamgaibaatar welcomed BCM sending any additional comments directly to his Working
Group which was accomplished by the BCM Legislative Working Group.
Note: Amendments to the Minerals Law were passed by Parliament on 2 July 2014.
15. BCM WEBSITES
MONGOLIAN WEBSITE: ‘PRESENTATIONS’
The following statistics and reports posted on Presentations section in Mongolian:
http://bcmongolia.org/mn/илтгэлүүд
• Монгол улсын нийгэм эдийн засгийн байдал, 2014 оны 4 сарын байдлаар, Үндэсний
статистикийн хороо
• Мандал Женерал Даатгал тайлан, 2014 оны 5 сар
• Сант марал сангаас гаргасан УЛС ТӨРИЙН БАРОМЕТР №13(47), 2014 ОН 3 САР
• Монгол улсын нийгэм эдийн засгийн байдал, 2014 оны 3 сарын байдлаар, Үндэсний
статистикийн хороо
• “Anti-Corruption legislation and State Policy” (Mongolian) by D. Munkhjargal, Prevention and
Public Awareness Department, Senior Commissioner, Independent Authority Against Corruption
(IAAC) Mongolia at the “ANTI-CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE
ON TRANSPARENCY” Training seminar, Mar 06, 2014
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', ‘INTERVIEWS‘, MONGOLIAN
BUSINESS NEWS’, ‘PHOTO GALLERY’
2 presentations from BCM monthly meeting on June 23, 2014:
• T. Gansuld, Executive Director, Outotec Mongolia – “Outotec Mineral Processing Solutions and
Experience in Mongolia”
• Lisa Gardner, Journalist & Media Trainer – “Mongolia’s Media Laws: Defamation, Libel and
Threats to Press Freedom”
3 presentations from BCM monthly meeting on May 26, 2014:
• B. Lakshmi, Director, Mongolia Economic Forum – “Why Mongolia Business Summit?”
• Nick Cousyn, Co-chair, BCM Capital Markets Working Group – “Use of MSE for State Privatizations”
• Peter Benson, VicRoads Team Leader, ADB Capacity Building Project – “Mongolia Roads –
Achievements and Challenges”
• China Metals & Mining Thermal Coal, Coking Coal, Copper, Gold, Steel by Macquarie Capital
Securities Limited
4 presentations from 3rd Mongolia Trade and Commodity Finance Conference, May 13, Blue Sky-UB:
• Mongolia – New Investment Laws, Stephen Tricks, Consultant, Clyde & Co;
• Mongolia Investment Law: select issues, B. Enkhbat, Partner, MDS & KhanLex Law Firm;
• Mongolia’s promise of mineral wealth, Arnout van Heukelem, Head of Metals & Mining Asia ING;
• Utilizing international partnerships to extend access to trade finance, Marco Nindl, Trade Finance
Banker, EBRD.
16 Presentations at 2014 Mongolia Investment Summit London, April 30-May1:
• Assessing developments in current economic policy and how the government will manage and
improve existing regulations, Ochirbat Chuluunbat, Vice Minister for Economic Development,
Ministry of Economic Development, Mongolia
• How should investors interpret the shift in government policy and the introduction of the new
investment law?, Andrew Danenza, Founder and Managing Partner, Melbury Capital, UK
• Examining legal developments and what this means for the stimulation of FDI, Chris Melville,
Partner, Hogan Lovells, Mongolia
• Examining Mongolian mining policy and how it could benefit the production and export of mineral
16. resources, Rentsendoo Jigjid, State Secretary, Ministry of Mining, Mongolia
• Analyzing the Mongolian coal market: how could mining companies best respond to the operating
environment and fluctuations in demand?, Battsengel Gotov, Executive Director and CEO, Mongolian
Mining Corporation, Mongolia
• Examining how Mongolian banks and financial institutions are dealing with the challenges and
opportunities of a fast growing economy, Norihiko Kato, CEO, Khan Bank, Mongolia
•Spotlight presentations: a chance to showcase your services and projects to a wide investor
audience, Leading bank of Mongolia: Golomt Bank - Munkhbat Davaatseren CEO, Golomt Securities
LLC, Mongolia
• To what extent has Mongolia retained its previously high levels of investment appeal? Alisher Ali,
Chairman, Eurasia Capital, Mongolia
• How can Mongolia attract private investment in power development? Philip Lam, Senior Banker,
Power and Energy Utilities, EBRD, UK
• Examining the potential for successful renewable energy projects in Mongolia and the benefits
cleaner energy will bring for foreign investors, Bolor J. Artan, Deputy CEO, Newcom Group,
Mongolia
• Spotlight presentations: a chance to showcase your services and projects to a wide investor
audience, Michael Jonas Director, Genie Mongolia and Executive Vice President, Genie Oil and Gas,
Mongolia
• Assessing the Mongolian Stocks Exchange’s cooperation with the London Stock Exchange and how
this can benefit investors, Jon Edwards Deputy Head of Primary Markets- Emerging Markets, London
Stock Exchange, UK
• Spotlight presentations: a chance to showcase your services and projects to a wide investor
audience, Boldbaatar Lamjav, Board Member, Nuudelchin, Mongolia
• Mining infrastructure case study: examining the development of infrastructure to support Erdenes
Tavan Tolgoi and how a continuation will bring, Badarch Enkhbat, CFO, Erdenes Tavan Tolgoi,
Mongolia Developing strategic mineral assets and infrastructure in Mongolia: Examining the
timescales and how obstacles can be overcome, Sainbuyan Odon CEO, Erdenes MGL LLC, Mongolia
• How could you ensure an effective IPO and the raising of the necessary capital for your business?,
Ayuna Nechaeva, Business Development Manager – Russia, CIS and Mongolia, London Stock
Exchange, UK.
_________________________________________
Mongolia reports: http://bcmongolia.org/en/mongolia-reports
• World Investment Report 2014 by United Nations Conference on Trade and Development ;
• Social and economic situation of Mongolia as of May 2014 by National Statistical Office of
Mongolia; (available in Mongolian language - Монгол улсын нийгэм эдийн засгийн байдал 2014
оны 3 сарын байдлаар, Үндэсний статистикийн хороо);
• Real Estate Report 2014 by Mongolia Properties;
• ASIA Reaching for the Top by International Monetary Fund, June 2014;
• ASIA Achieving Its Potential by International Monetary Fund, June 2014;
• Mongolia: Economy outlook 2014, by Asian Development Bank;
• Polit Barometer by Sant Maral Foundation, March 2014.
Interview Section: http://bcmongolia.org/en/interviews
• Talking to United World, the Executive Director of the Mongolian Drilling Association (MDA)
Professor J. Tseveenjav. Source: http://www.worldfolio.co.uk/;
• Jim Dwyer, Executive Director, BCM – “Business need more business”;
• Damshnamjil Tsogtbaatar, Chairman of the SPC: “Privatizing Mongolia”;
• Jan Hansen, Economist, ADB: “The depreciation should help to increase the competitiveness and
to develop the non-mining industrial sector”.
BCM's English website includes the “Mongolia Business News” section. BCM continuously posts news
17. stories and analysis of relevance to Mongolia at ‘Mongolian Business News” before they are all put
together each week for Friday's weekly NewsWire.
The “Photo Gallery” contains photos from the 6th Anniversary BCM Renewal dinner on November
11, 2013.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week’s events.
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo
Social stats: BCM now has 5,839 fans on our Facebook fans page, 626 connections on LinkedIn
network, and 1,136 followers on Twitter.
Of course for news information, interviews, event photos, VIDEOS and announcements regarding our
organization, visit the official BCM website at http://bcmongolia.org/en/
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
May 31, 2014 *13.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 13.9% y-o-y, Ulaanbaatar city, May 31, 2014
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
18. May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
CURRENCY RATES – 9 JULY 2014
Currency Name Currency Rate
US Dollar USD 1,834.71
Euro EUR 2,497.87
Japanese yen JPY 18.05
British pound GBP 3,139.65
Hong Kong dollar HKD 236.74
Chinese Yuan CNY 296.08
Russian Ruble RUB 53.83
South Korean won KRW 1.81
Disclaimer: Except for reporting on BCM’s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.
