September 16 2011

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 185, September 16 2011
NEWS HIGHLIGHTS:
Business:
 TT's IPO to be delayed;
 Hunnu Coal agrees to sell to Banpu at USD 477 million;
 OT to generate one-third of Mongolia's economy;
 "Discover Mongolia" delivers investment opportunities to investors;
 Mongolia may list TT on three stock markets;
 Davsan Tolgoi needs significant drilling, says Petro Matad CEO;
 Ivanhoe's oil prospects continue with a new well;
 Erdene Resources discovers new gold deposits;
 New fund to draw investors to Mongolia;
 Rio warns Parliament to play fair;
 Aspire Mining updates management;
 Eznis Airways and U.S. basketball star inspire children.
Economy:
 Mongolia: a new economic frontier for dealers and investors;
 Mongolian GDP per capita heading toward USD 5,000;
 Mongolian incomes to grow fourfold;
 Commodity prices lead Mongolian mining growth;
 Central Bank policies will grapple with inflation;
 MSE to receive an extreme market makeover;
 Mongolia catches the attention of big mining;
 Multinational companies are driving demand for office space;
 Coal assets lead acquisition activity in 2011;
 Copper prices benefit from China’s growing demand;
 Rare earth values mystify economic experts;
 Asia must stand vigilant against economic pitfalls, says ADB;
 Gold market may be a battle of east vs. west;
 U.S. economist foretells New World Chinese Order.
Politics:
 China and Mongolia vow to promote bi-lateral ties;
 Government shuts down 73 mines;
 Prime Minister delivers speech to world delegates;
 Germany collaborates with Mongolian in the mining sector;
 ADB to loan USD 20 million for education;
 Australia to step-up aid to Mongolia;
 Government to introduce agricultural coops to countryside;
 Tax inspectors to attend course on mining taxes;
 President bans nuclear deals in cabinet;
 NSC revisits the murder case of MP S. Zorig;
 Greater transparency is needed in Mongolia, says NGO;
 Human trafficking agency opens its doors in UB.

2. *Click on titles above to link to articles.
SPONSORS
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BUSINESS
TT'S IPO TO BE DELAYED
Erdenes Tavan Tolgoi's initial public offering will be delayed until the end of the first quarter of
2012 at the earliest, said Prime Minister S. Batbold. In addition to the coal mining company,
Mongolia will list its state-owned rail road company, Mongolia Railway, to help raise capital. The
state-owned firm Tavan Tolgoi owns the entirety of Tavan Tolgoi's Eastern Tsankhi site. It's Western
Tsankhi has been divided between the Chinese Shenhua, the U.S. Peabody Energy, and a Mongolian-
Russian consortium, but that decision is now being contested.
"The final investment agreement will take into consideration the interests of our two neighbors
(China and Russia)," Batbold said.
The government has previously announced that listing would take place before 2012, but now it
seems that decision will be delayed. The Mongolian government is considering listing the coal
mining firm under the Mongolian Stock Exchange (MSE), the London Stock Exchange, (LSE), and the
Hong Kong Exchange (HKE). Batbold said the government plans to list 49 percent of Mongolian
Railway to help fund its plans to develop the mine and transportation infrastructure, but did not say
under which market. The government said it will build additional rail lines linking Tavan Tolgoi to
both the Chinese and Russian border.
Tavan Tolgoi is the world's largest untapped coking coal deposit with an estimated 6 billion tons of
coal resources. The Mongolia's decision to divide the Western Tsankhi between China, the United
States, and Russia is now being contested to possibly allow South Korea and Japan to participate in
operations.
Source: Reuters

3. HUNNU COAL AGREES TO SELL TO BANPU AT USD 477 MILLION
Thailand's biggest coal producer, Banpu, is in the midst of a deal to buy all outstanding shares of
Hunnu Coal, valuing the firm at USD 477 million. Banpu owns 12 percent of Hunnu Coal. Hunnu‘s
board has signaled that it will permit the transaction.
The firm offered AUD 1.80 per share, 30 percent more than the shares were worth 8 September.
Banpu's offer is 51 percent higher than Hunnu's 20-day share price average. The acquisition would
give Banpu full control of Hunnu's 11 coking and thermal coal projects in Mongolia. The firm is most
interested in Mongolia's mining sector because of its close proximity to China. Hunnu share prices
closed at USD 1.72, slightly below Banpu's offer.
―This bid by Banpu takes a lot of pressure off Hunnu's management and it's not surprising that they
recommended this bid because it basically removes any pressure on them to finance these
projects,‖ said Matthew Whittal, a Hong Kong based analyst at Renaissance Capital.
Record coking coal prices make acquisitions like this very attractive. This attempt is just one of a
number of recent acquisition attempts and successes this year. A total of USD 20.15 billion of
takeover bids for coal mining companies valued at USD 100 million or more each during the first
nine months of this year. Last year acquisitions totaled at USD 7.06 billion.
Source: Business-Mongolia, The Sydney Morning Herald
OT TO GENERATE ONE-THIRD OF MONGOLIA'S ECONOMY
The Oyu Tolgoi mine will account for approximately one-third of Mongolia's economy by 2020, said
Rio Tinto-Mongolia‘s CEO Cameron McRae. On the firm‘s website, the company goes further to
claim that Mongolia's economy will grow about 30 percent as well.
The world's largest untapped copper deposit will lift Mongolia's GDP by over USD 1,000 per person in
the next 10 years; more than a 60 percent increase from the current GDP per capita.
Projections state that the Oyu Tolgoi copper and gold project will produce more than 1.2 billion
pounds of copper and 650,000 ounces of gold in the first ten years of the mine's production. By the
seventh year, at the mine's peak of production, the mine will produce 1.7 billion pounds of copper
and one million ounces of gold.
OT has already begun pre-stripping at the open-pit in preparation for the mine's development.
Source: Mining Weekly
"DISCOVER MONOGLIA" DELIVERS INVESTMENT OPPORTUNITIES TO INVESTORS
Over 1,000 investors and industry professionals attended "Discover Mongolia", Mongolia's largest
mining conference. The last day of the event featured technical discussion regarding infrastructure
and methodology, in addition to a panel discussion with members of the Mongolian government.
The day began with a number of investment projects from mining firms. Investment projects
included Oyu Tolgoi, Erdene Resources, Prophecy Coal, Voyager Resources, WM Mining Company,
Origo Partners, Altan Rio Mongolia, Erdenejas, and Xanadu Mines.
The rest of last Friday morning consisted of announcements and reports from Mongolian officials on
various infrastructure projects. These included delivering electricity to towns throughout Mongolia,
and the construction of roads and railways. Mongolian officials plan to have a 1,500 megawatt
thermal power station by 2025 in the southern Gobi region. Currently 90 percent of the electricity
in Mongolia comes from the central grid originating from Tuv Aimag. Until 2025, Mongolia can rely
on natural gas and liquefied natural gas imports from Russia. For transportation, the Mongolian
government plans to build 49,000 kilometers of road and 5,000 kilometers of rail. The road
construction projects will consist of seven different programs to construct roads in the countryside
to link provinces to Ulaanbaatar, in the city to reduce traffic, in addition to roads that lead to the
Russian and Chinese borders.
The conference ended with a final panel discussion from representatives of various agencies of the
government related to the mining sector, including the Mongolian Mineral Resource Authority and
Ministry of Nature, Environment and Tourism. The majority of questions revolved around the Law on
the Prohibition of Mineral Exploration in Water Basin Areas and Forest Areas and the activities of
illegal artisan miners. The aforementioned law was established to protect rivers and forestry from
destruction by mining operations. As a result of the law, 240 mining licenses were revoked with
compensation from the government. However, many speculate that ninja miners will resume mining
activity without any regulation from the government. These enterprising miners are breaking
Mongolian law, but little is done to stop them. The government recommended local government and
communities step up to take a role in the halting of their activities. The government is also
considering professionalizing independent miners so they can follow regulations and become aware
of the laws.

4. Read more…
In addition to vehicular means of transportation, Jane Chen, a senior process engineer at Brass
Engineering International, introduced the methods for the transport of mineral slurries through a
series of pipelines. The advantages of such a system include low maintenance, zero pollution, low
cost installation, and the transport large volumes of minerals. Minerals such as coal would travel
through the pipelines in water.
The panel also discussed taxation and future licensing in Mongolia. Members of the panel insisted
that taxation, which stands between 10 and 25 percent in Mongolia falls below the global average
of 33 percent. The panel could not speculate much on whether licenses will once again be issued in
2012, however the law prohibiting their issuance is currently scheduled to expire in January next
year. These issues are for Parliament to decide, said members of the panel.
The conference ended with some concluding remarks from Mongolia's first president, P. Ochirbat.
―The global economy before now only had profits in mind with little mind paid to the
environment,‖ said Ochirbat. ―That phase is ending now and the economy is to be built in harmony
with the environment.‖
The former president went further to encourage Mongolian businesses to increase their own
capacities, and improve corporate responsibility and transparency. To foreign firms, he said in
addition to the government's issuance of licenses foreign, companies need to earn social license and
acceptance from the communities near the sites they excavate for minerals.
Source: Business Council of Mongolia
MONGOLIA MAY LIST TT ON THREE STOCK MARKETS
Prime Minister S. Batbold is committed to listing Erdenes Tavan Tolgoi on the London, Hong Kong
and Ulaanbaatar exchanges, said head of Golomt Bank John Finigan at "Discover Mongolia". The site
will need a large sum of funds to develop the enormous coal deposit.
"I had a conversation with the prime minister about this matter and there was a very strong
commitment to achieve the goals of listing ETT on the current timetable (first quarter of 2012),"
said Finigan.
Work has already begun on the IPO, said President of the Mongolian Stock Exchange (MSE) Bill
Gorman. However, Gorman noted that approval by parliament is needed on a new Securities Law
before further actions can be made.
The government hopes listing the stocks on all three markets will generate enough capital to
develop the mine. It is estimated that Tavan Tolgoi contains 6.4 billion tons of coal. The majority of
those reserves is coking coal, which can be used for steel production.
Source: AFP
DAVSAN TOLGOI NEEDS SIGNIFICANT DRILLING, SAYS PETRO MATAD CEO
Petro Matad‘s tenth well at its Davsan Tolgoi Prospect in Eastern Mongolia was plugged and
abandoned after being declared dry. The testing of wells DT-1 and DT-9 were recently suspended
because of technical difficulties and geological problems respectively.
A new well will be drilled 225 meters south of the now abandoned DT-1 well.
"The picture that is developing at Davsan Tolgoi is one of complicated stratigraphy and a complex
structural history,‖ said Douglass McGay Petro Matad's CEO. ―Exploration here will require a
significant amount of exploration and appraisal work in the form of drilling and testing. The positive
note is that we continue to demonstrate that hydrocarbons have migrated into the structures that
we are imaging on the seismic. In fact, out of ten wells drilled to date only one has been
completely dry.‖
McGay went on further to say that his company remains confident this site will lead to commercial
production.
Source: Petro Matad
IVANHOE'S OIL PROSPECTS CONTINUE WITH A NEW WELL
Ivanhoe has begun moving a drilling rig to drill a new well for oil exploration. The exploration
team's first attempt at the Nyalga Basin was unsuccessful in uncovering oil.
Although Ivanhoe's first attempt did not uncover oil, President and Chief Operating Officer of
Ivanhoe Energy David Dyck said explorations taught the firm a great deal about the geology of the
area. After tests finished at the well drilled 2,003 meters deep, it was plugged and abandoned for
exploration elsewhere.
"Mongolia in general, and the Nyalga Basin in particular, is in the early days of oil exploration,
requiring a great deal of study to understand its full potential,‖ said Dyck. ―We remain optimistic

5. that our exploration efforts will enable the discovery of oil resources at our Mongolian project.‖
The second well is on an eight-square-kilometer site approximately 12 kilometers from the first
well. Drilling is planned for the end of September for a depth of about 2,500 meters.
Ivanhoe Energy is an independent international heavy oil development and production company
with operations in Mongolia.
Source: Ivanhoe Energy
ERDENE RESOURCES DISCOVERS NEW GOLD DEPOSITS
Erdene Resource Development discovered gold deposits on it Tsenkher Nomin property in southwest
Mongolia. Drilling began on 5 September to better explore the site's mineral composition. After
initial exploration acts were made, the company identified two sites with quartz veins containing
gold.
Encouraging broad data at the site Nomin Tal drove geologists to closely examine the sites where
gold was found. In addition to gold, the vein contained traces of copper and silver. Approximately
2.5 kilometer south-west from there at a site called Altan Nar, geologists found a second deposit of
gold, silver, lead and zinc.
The 400-meter exploration site will be expanded with more careful analysis. The company expects
to have continuous results throughout this month. Drilling has already begun at Nomin Nar and will
begin at Altan Nar later this month.
Erdene Resource Development is a Canadian-based mixed resource firm with several projects in
Mongolia.
Source: MarketWatch
NEW FUND TO DRAW INVESTORS TO MONGOLIA
Origo Partners introduced a new open-ended fund to fuel the Mongolian market. The Mongolian
Stock Exchange Market (MSE) Liquidity Fund will attract investments from around the world to
generate economic growth in Mongolia.
The fund will feed investors with news regarding ten traded companies listed on the MSE to attract
investment. It will also provide high interest saving deposit rates at Mongolian commercial banks to
spark interest in the Mongolian tugrug. Head of Mongolian and Mining Investments at Origo, Luke
Leslie, and ResCap CEO, Eric Zurrin, will manage the fund.
―The MSE Liquidity Fund will provide investors with exposure to diversified and liquid assets and
operations in the world's most resource rich and fastest growing economy,‖ said Zurrin.
The fund hopes trading will begin in October this year. The fund has a minimum subscription
threshold of USD 10,000.
Source: Banking Business Review
RIO WARNS PARLIAMENT TO PLAY FAIR
Rio Tinto's CEO issued a warning to Parliament members to end their interferences putting the
reputation of Mongolia as a favorable place for business in jeopardy. Recently 19 members of
Parliament appealed for yet another revision of the Oyu Tolgoi contract.
During the "Discover Mongolia" forum in Ulaanbaatar, Cameron McRae, Rio Tinto's country director
and chief executive of the Oyu Tolgoi copper-gold deposit, said that his firm's 2009 agreement with
the government signaled that Mongolia was a place businesses were welcome to operate, but a
break of its commitment could lead investors and firms to question that notion.
"If even a few voices call for Mongolia's commitments to be broken and agreements to be changed,
there is a risk that this will undermine investor confidences," McRae said. "These few will have to
answer to the many Mongolians whose jobs will be on the line and the local businesses whose
prospects will be jeopardized. We are confident that Mongolia will not let this happen; that
stability and the rule of law will prevail; that Mongolia's long-awaited economic promise will
become a reality."
The Oyu Tolgoi site already has and will contribute to rapid economic growth in Mongolia. Recently,
the firm projected the gold and copper project will contribute to 30 percent of the country's gross
domestic product (GDP). The government will receive USD 220 million in taxes from Oyu Tolgoi in
2011 alone and a total of USD 700 million before the project even begins production. It employs
14,000 workers, 60 percent of who are Mongolian nationals. The mine will produce 467,000 tons of
copper, 330,000 ounces of gold and 2.9 million ounces of silver a year. It is one of the world‘s
largest gold mines.
Read more…
Regulation and taxation in Mongolia have been thorny issues between Mongolia and its expanding

6. mining sector. Already at least four major revisions to tax law have been implemented in the past
12 years. The most recent investment agreement replaced an earlier one that would have directed
68 percent of profits on copper and gold to the government during periods of heavy inflation. This
law resulted in significant drop in foreign investment.
Source: The Australian
ASPIRE MINING UPDATES MANAGEMENT
Aspire Mining recently appointed two new figures to its management.
Ts. Barsbold will act as the company‘s new chief geologist. Barsbold was previously contracted
part-time and is credited with the discovery of the Ovoot Coking Coal Project in northern Mongolia.
He also received the Geologist Medal for 2011 in recognition of his contributions to Mongolia's
geology sector. He will help oversee the current exploration program at Ovoot and will be
responsible for identifying new coking coal discoveries in the area.
Scott Southwood will assume the role of General Manager in marketing. Southwood is a qualified
process engineer with significant coal industry experience.
Aspire Mining owns the Ovoot Coking Coal Project. It is estimated to contain 330 million tons of
resources. It is currently looking for a resource upgrade and working towards the development of
infrastructure at the site.
Source: Aspire Mining Limited
EZNIS AIRWAYS AND U.S. BASKETBALL STAR INSPIRE CHILDREN
Basketball star Dwight Howard made a surprise
visit to Eznis Airways‘ aircraft tour for children.
This year's event was Eznis's third consecutive
year to host it.
Over 50 children from Verbist Care Center and
the Bolor Foundation took a tour of Eznis's
facility. The children learned about the Avro RJ
85 aircraft, how to fly aircrafts, and the duties
of an airline pilot.
Howard arrived as a surprise guests and gave
motivational talks to the children, inspiring
them to overcome great odds and difficult
challenges.
―I was very small when I was young,‖ said
Howard. ―I also came from a small town. When I was twelve years old, I decided to become a NBA
player, but everyone told me I couldn't do it. I was determined to make my dream a reality. I used
to get up at 4 a.m. to run a practice. My message to the kids is to stay true to your drams and not
let others tell you can't do it.‖
Howard answered an assortment of questions about how he grew so tall and what brought him to
Mongolia. Afterwards everyone shared a cake decorated with the ―Superman‖ insignia.
Source: Eznis Airways
ECONOMY
MONGOLIA: A NEW ECONOMIC FRONTIER FOR DEALERS AND INVESTORS
Mongolia is one of many emerging markets investors are looking to in their search for new
territories to conduct business in during these tough economic times.
Its fair business climate and consistent economic growth makes Mongolia an attractive new frontier
for investment. Citigroup listed Mongolia on its Global Growth Generator (3G), predicting where the
highest levels of growth will be over the next 40 years, and it is also ranked above Italy as
somewhere for conducting business. The IMF predicted Mongolia's gross domestic profit (GDP) will
grow by 9.8 percent this year and 7.1 percent is 2012.
―Mongolia itself is changing rapidly. It‘s one of the fastest growing economies in the world. We have
this extensive mineral wealth, lots of investment for geological extraction,‖ said Kh. Altai, chief
executive of the Mongolian Stock Exchange (MSE).
The whole world watches as a number of new market opportunities unfold in Mongolia. The state-
owned Erdenes Tavan Tolgoi copper and gold project is expected to list on the Hong Kong, London,
and Mongolian stock markets. Estimates indicate the IPO will bring in a sum between USD 1 billion
and USD 5 billion.

7. Mergers and acquisitions totaled USD 1.3 billion thus far this year. The domestic firm Mongolian
Mining Corporation acquired QGX Coal for a payment of USD 464 million with subsequent contingent
consideration which could possibly increase the total to a maximum of USD 950 million. Australia's
Rio Tinto steadily increased its stake in Ivanhoe Mines, recently purchasing CAD 529.5 million worth
of shares to top off at a 48.5 percent stake of Ivanhoe. The Thai firm Banpu is also offering to
purchase Hunnu Coal at a valuation of USD 477 million.
Read more…
There are, however, challenges to conducting business in Mongolia. Many of Mongolia's companies
are state-owned; making business deals sometimes a dizzying bureaucratic process. Dealing with a
new culture and a foreign land can lead to a number of additional challenges.
―Earlier this year I had an unusual excursion. First stop was Ulaanbaatar with temperatures of -
40c,‖ said business professional Rupert Hume-Kendall. ―Next was on to Bangkok in the middle of
the Thai summer at +35c, both for critical pitches. Try packing for that with a single small bag!‖
Source: Financial News
MONGOLIAN GDP PER CAPITA HEADING TOWARD USD 5,000
Mongolia's GDP per capita is approaching USD 5,000, said Vice Finance Minister G. Chuun-Hutagt.
This would be a 51 percent increase from the current figure of USD 2,470.
Mongolia's economy grew 14.3 percent in real terms and 29.1 percent in nominal terms in the first
half of this year and is one of the world's fastest growing economies. If Mongolia reaches USD 5,000
by next year, it will surpass Indonesia in terms of per capita GDP and stand on level ground with the
likes of China and Thailand.
The mining sector is the driving force behind growth in Mongolia. Mongolia's land is rich in resources
such as coking coal for steel production and copper. Mongolia is now the largest coal exporter to
China, exceeding Australian imports in August.
However, the rapid growth has come in tow with heavy inflation which jumped by 10.1 percent in
July. In response, the Central Bank raised interest rates to 11.75 percent at the end of August.
However, it does not seem as though the government has any plans to slow its spending.
Government spending is up 50 percent from 2010, but the country is still likely to end with a
budgetary surplus this year. Mongolia's concentration on the mining sector poses an additional risk.
If anything were to shake China's economy before Mongolia has diversified its economy, China could
take Mongolia down with it.
Source: CNBC
MONGOLIAN INCOMES TO GROW FOURFOLD
Mongolia is being considered on the of world's richest countries in natural resources before four-
fifths of the country has been explored. Mining projects will bring hefty investment to Mongolia,
said the source.
The mining sector drove 6.1 percent growth last year and was up 9.7 percent in the first quarter of
2011. The International Monetary Fund (IMF) predicted Mongolia could grow at rates in the double-
digits each year within the next decade. This would lift per capital income four times its current
average of USD 2,470.
Source: Bloomberg BusinessWeek
COMMODITY PRICES LEAD MONGOLIAN MINING GROWTH
Favorable commodity prices continue to benefit Mongolia's mining sector and exports are up 61
percent from last year. The rise in prices in Mongolia's various exports are contributing to Mongolia's
growth, especially minerals and petroleum.
Coal and mineral prices are leading the mining boom in Mongolia. Coal's average prices rose 4.7
percent since summer began in June. The total value of coal exports are up 138 percent from last
year at USD 1.15 billion. Iron ore, zinc ore, gold, and crude oil's values are all up. Iron ore and zinc
ore in particular are up 100 percent to USD 13.50 per pound and USD 0.83 per pound.
Copper and unprocessed cashmere both experienced increased values; however consumption was
down for both at 1 percent and 5 percent respectively.
However, the consumption and value various other imports also experienced growth. Both the value
and volume of trucks imported to Mongolia doubled since last year. Diesel fuel consumption is up 26
percent, while people in Mongolia suffer a 63 percent increase.
Source: Frontier Securities

8. CENTRAL BANK POLICIES WILL GRAPPLE WITH INFLATION
Next year's monetary policy will emphasize financial stability, said Central Bank President L.
Purevdorj. The Mongolian Central Bank must submit its monetary policy to Parliament by 1 October.
In response to rapid economic growth, a difficult economic climate, and rising commodity prices,
Purevdorj said he intends to keep inflation under 10 percent. The Central Bank has been in
contention with Parliament as the former tries to keep inflation down with high interest rates while
government exacerbates inflation as it continues to increase its spending.
Source: Undesnii Shuudan
MSE TO RECEIVE AN EXTREME MARKET MAKEOVER
Investors will be able to trade on the Mongolian Stock Exchange (MSE) from home within a year,
said MSE Director of Secretariat G. Saruul. The London Stock Exchange (LSE) is helping Ulaanbaatar
modernize its market with its own Millennium IT trading program.
On the MSE 330 companies are registered; only 30 of which are actively traded. The Financial
Regulatory Committee after more than a year of not approving a stock issuance, just recently
approved a MNT 17.7 billion stock offering for Sharyn Gol. The MSE plans to raise its own standards
to meet international levels for the benefit of trade in Mongolia's mining sector.
The sale of state-issued bonds has been one activity of particular focus by the MSE as the
government tries to finance its mineral and cashmere sector. The government plans to issue MNT
300 billion worth of bonds. Every Tuesday MNT 25 billion will be sold on the MSE until the end of
October.
Source: Zuunii Medee
MONGOLIA CATCHES THE ATTENTION OF BIG MINING
The abundance of resources and a fair business climate is making Mongolia a prime target for coal
mining groups looking to expand with acquisitions.
High quality thermal and coking coal for steel production, the development of fair capitalism, and a
close proximity to fuel hungry China and other Asian markets has caught the attention of firms like
Thailand's Banpu, which has made an offer to buy the Mongolian firm Hunnu Coal. Mongolian Mining
acquired QGX Holdings for USD 464 million in May and Winsway Coking Coal Holdings 50 percent
acquisition in Peabody-Polo Resources for USD 35 million in June 2010. Noble Group bought 3.4
percent of Aspire Mining for USD 15.9 million in March this year.
Mongolian assets will likely play a big role in mergers and acquisitions in 2011 and 2012. Mongolia
holds an estimated 160 billion tons of coal resources. Only one-quarter of Mongolia's resources has
been explored. Companies such as SouthGobi Resources, Winsway Coking Coal, Mongolia Energy,
Aspire Mining, Sharyn Gol, and Gobi Coal Energy could be prime targets for buyouts. The buyers will
likely be global and regional giants such as ArcelorMittal, Vale, Noble Group, KORES, and Teck
Resources.
Proximity to Asian nations such as China, South Korea, Japan, and India makes Mongolia attractive
to major coal firms. Banpu's USD 477 million valuation for Hunnu Coal is a testament to how much
Mongolia's resources are worth to leaders in the mining industry.
Source: Eurasia Capital
MULTINATIONAL COMPANIES DRIVING DEMAND FOR OFFICE SPACE
Both property prices and the number of construction projects are on the rise due to money coming
from the mining sector. Economic growth has attracted foreign companies that are looking for
quality office space, and the foreign expatriates who fill those desks are looking for quality homes.
This work will give foreign workers the opportunity to work on construction projects in Ulaanbaatar.
Annual economic growth of 15 to 25 percent has made Mongolia one of the world's fastest growing
economies. Thus, some believe Mongolia will be a storm of construction activity as the government
uses its extra funds to build infrastructure and foreign companies demand high quality spaces.
In addition to the wealth from its resources, Mongolia is seen as a favorable business climate, even
compared to the BRIC countries (Brazil, Russia, India, and China). President Ts. Elbegdorj has
vowed to combat corruption. The World Bank ranked Mongolia 73 out 183 countries on its list of
countries with the greatest ease for conducting business.
Property prices too are rising fast due to limited buildings of adequate quality and within fair
distance to the city center.
―The arrival of multinational companies such as Ernst & Young and PricewaterhouseCoopers in
Mongolia is driving the demand for quality office space,‖ said a spokesperson from Asia Pacific
Investment Partners (APIP), the owner of Mongolian Properties.

9. Read more…
Project managers, master planners, architects, and professionals with legal and accounting
knowledge are in high demand. Individuals with experience designing and building condominium-
style residential units are particularly demand. Designers would have to build these buildings with
everything from grocery stores to gyms in a contained space because of the harsh winter cold.
The cold also means a short building season that project planners must rush to finish before it ends.
Source: Building
COAL ASSETS LEAD ACQUISITION ACTIVITY IN 2011
The world-wide demand for coal has made it a top mineral for mining firms this year.
For mining companies, the black stuff is now the right stuff. The mining sector's confidence in coal,
especially coking coal for steel production, has incited a great deal of activity in the market.
Coal prices have remained high, despite concerns regarding the economy. In the third quarter of
this year, coal stood at USD 315 per ton. Four of the 10 largest mergers in the first-half of this year
were for coal assets. The sum of all deals reaches nearly USD 19 billion and might soon exceed last
year's total of USD 22 billion. In August Peabody Energy and ArcelorMittal agreed to buy out
Macarthur Coal for USD 5 billion.
The rising demand of coal from nations such as China has sparked a flurry of acquisitions and stock
buyouts. However, strong demand has also bolstered the prices of these firms. This year firms such
as Peabody have paid 12.2 times trailing operating profit for coal companies compared with 11.2
times average throughout the last decade. The possibility of rival bids has also driven up prices on
acquisitions. Buyouts and acquisitions are attractive to mining firms because they are an easy way
to expand operations without investment into a new mine and exploration.
Source: Wall Street Journal
COPPER PRICES BENEFIT FROM CHINA‟S GROWING DEMAND
Although copper production from the world's top producers has increased, companies will struggle
to meet China's great demand. The Oyu Tolgoi copper and gold mine will likely send a great deal of
its copper production to China once operations begin.
Copper production was short in the first three months of 2011, but production rose more than 3
percent in this year's last quarter. Many projects initiated by copper's first big rally five years ago
are finally becoming operational. Copper valued at USD 8,500 per ton on the London Metal
Exchange (LME) since last year—well above the cost of production for mining firms. Analysts point
to China's voracious appetite for copper for the high prices.
―There are one or two projects that are ramping up as the results point toward, but they are not
game-changing amounts of additional copper that are going to be enough to outweigh the cut-backs
in production estimates we have seen elsewhere,‖ said Nicholas Snowdon, analysts with Barclays
Capital in New York. Earlier this year analysts were hesitant to gamble heavily on copper, but now
opinions have changed. The current rate of increased production from mining firms is perhaps not
enough to meet China's demand.
―Quarter-to-quarter production should be increasing at a fast rate, however, based on the numbers
the rate of growth in production seems to be relatively constant said Shayne Heffernan, a metal
analyst with Heffernan Capital Management.
Heffernan went further to say that demand will only continue to grow once fears from the
economic crisis pass. China and the emerging market's demand will be enough to continue the ―bull
narrative‖ for the next three to five years, he said.
The Oyu Tolgoi project will annually produce 179,000 tons by 2013 and 450,000 tons after 2019
once the mine is fully operational, said Oyu Tolgoi CEO Cameron McRae at the ―Discover Mongolia‖
forum last week. The mine will account for 24 percent of Asia's entire supply of copper.
Source: Reuters
RARE EARTH VALUES MYSTIFY ECONOMIC EXPERTS
Experts are debating whether the rise in rare earth mineral prices represents a bubble or a
correction of the market. The prices of rare earths have climbed since China, the world's only
supplier of many rare earth minerals began limiting its exports. Since China began limiting its
production, investors and firms in Mongolia started considering production in Mongolia.
The 15 rare earth elements are necessary for the production of a number of high-tech hardware
such as hybrid cars and wind turbines. The price of rare earths from China has risen since the
beginning of this year. Both Cerium oxide and Lanthanum oxide have soared 5 times their prices
from the beginning of the year. Magnet materials, such as neodymium oxide, have risen from RMB

10. 264,000 per ton to RMB 1.5 million per ton. The heavy rare earth dysprosium oxide has jumped from
1.43 million per ton to 13.78 million per ton since June.
While some call the of rise of rare earth prices a bubble, Jack Lifton, a Technology Metals Research
specialist calls it a market correction.
Read more…
―It is looking more and more, as China enters a period of switching from an export-led economy to
one of domestic consumption, [as if] the country has been subsidizing the rare earths mining and
refining industry for a very long time. It looks like prices are normalizing, or as the stock market
theorists like to say, correcting.‖
However, Lifton did add that speculation is currently driving up rare earth prices. However, he also
believes that two of the world's most commonly produce rare earths, lanthanum and cerium, are
already in surplus.
Lifton believes the Chinese domestic market for rare earths will continue to grow, but with only
small production growth. Meanwhile, others suggest China will likely begin to import the less
abundant heavy rare earths within the next four years.
Source: Mining Weekly
ASIA MUST STAND VIGILANT AGAINST ECONOMIC PITFALLS, SAYS ADB
The Asian Development Bank (ADB) reduced its growth projections for 2011 and 2012, but remarked
on the resilience of Asian markets during a difficult economic environment. Inflation will likely be
the greatest challenge for Asian nations, but growth looks to continue.
Global growth will be the key to combating inflation in Asia. However, monetary authorities will
have to remain vigilant in keep tight economic policies. Volatility in capital flows will only make
policymaking more difficult said ADB. Concerns have eased as commodity prices have hit their
ceilings and fell off. However, the bank warns inflation may return and hit an even higher ceiling.
The 45 nations that comprise developing Asia are expected to grow 7.5 percent in 2011 and 2012.
However, this is less optimistic than April predictions of 7.8 percent and 2010's predictions of 9
percent growth.
―Although led by the People's Republic of China and India, momentum is felt across the whole
region said ADB President Haruhiko Kuroda.
Read more…
If commodity prices rise again and the current weakness in the global recovery passes, regional
banks must be quick to tighten their monetary prices, said ADB. Many of the central banks in Asia
have discontinued their practices of rising interest rates because of the global economic crisis.
Hikes in exchange rates may help manage inflation with lowered import prices and temporary
capital controls to limit the cash flow from enterprising individuals looking to benefit on foreign
rates that has caused hesitancy among policymakers from raising interest rates. Policymakers need
to be ready for volatility, said the ADB. Short-term flows can weaken monetary policies and effect a
cash reversal.
Source: Reuters
GOLD MARKET MAY BE A BATTLE OF EAST VS. WEST
A conflict is emerging in the gold market between the east and west. European banks had
traditionally been eager to sell precious metals, while emerging economies such as China and Russia
were happy to purchase them. However, economic crises have changed attitudes and hoarding has
begun world-wide. Gold is now valued about USD 1,850 per ounce and has received greater
attention for mining operations from companies such as Ivanhoe Mines.
Since the financial crisis, European central banks have begun hoarding their goal. Although banks
now have less gold than in 2000, price appreciation means gold now accounts for 61 percent of
Europe's reserves. As western nations once again began hoarding, they found themselves facing
emerging markets buying up gold.
In 2011 a net 6.7 million ounces have been added to official reserves around the world. The
purchase of gold by central banks has been a major factor for gold's rise in value.
However, investors should pay mind to how strongly nations such as China can tip the scale. China's
reserves currently consists 1.6 percent of gold. If it were to grow to 5 percent, it could really rock
the market. To do so under current prices would mean acquiring an incredible amount of gold.
However, if China were to buy up gold very aggressively, its own purchases would drive up spot gold
values and would effectively reach 5 percent without acquiring the full physical amount originally
needed. Jewelry demand would likely fall and central banks might think about selling believing a
bubble has formed.

11. Source: Wall Street Journal
U.S. ECONOMIST FORETELLS NEW WORLD CHINESE ORDER
The decline of the United States may signal the inevitable rise of China. After decades of grappling
first with Russia and then with Japan for the United States‘ supremacy as the world's super power,
it now appears as though Mongolia's neighbor to the south may be the next challenger and eventual
successor.
The United States concerns regarding China's rise on the world stage may be its best defense
against allowing that prophesy to come true. ―As long as we‘re worried about the future, the
future will be better,‖ said former Economic Advisor to U.S. President Obama, Larry Summers in his
farewell address.
The economic expert predicted in his book, Eclipse, that China's rise may come sooner than most
may expect. China's demography, convergence, and gravity, will drive China's ascent. He believes
China's economy has already become the world's largest, however is hindered by its ―backward‖
nature.
China's production will make up 23 percent of the world's GDP by 2030, while the United States will
likely account for less than 12 percent at that time. China's share of global economic power will be
equal to that of the United States and Great Britain in 1970, resulting in Summers's conclusion that
the world will still be uni-polar rather than multi-polar but with a new master.
The key difference between China and the United States is when the latter took the mantle it did
so following World War II and a complete revision of geopolitics. Meanwhile China insisted in a
recent statement that it does not desire ―regional hegemony or a sphere of influence‖.
Source: The Economist
POLITICS
CHINA AND MONGOLIA VOW TO PROMOTE BI-LATERAL TIES
A meeting between Mongolian and Chinese leaders resulted in a vow to further promote bilateral
ties between the two nations. First Deputy Prime Minister N. Altanhuyag traveled to Beijing to meet
Chinese Vice Premier Li Keqiang to discuss cooperation in government and between the Chinese
Communist Party and Mongolia's political parties.
―China and Mongolia share broad common interest,‖ said Li. ―A neighborly relationship is in the
fundamental interests of both countries and their citizens.‖
Li proposed four methods to improve the Chinese-Mongolian relationship. His advice included close
contact and trust; and increased communication between China and Mongolia's legislative bodies
and various organizations in the political spheres of both nations.
Li also called for closer exchanges and cooperation between the CPC and Mongolian political
parties. The CPC will expand ties with Mongolian political parties through the exchange of
experience in the management of state affairs and development of a political party. Altanhuyag
responded with remarks about how all of this is necessary to build a solid foundation for expanding
bilateral communication and cooperation.
Source: Xinhuanet
GOVERNMENT SHUTS DOWN 73 MINES
Ulaanbaatar's Agency for Specialized Inspection halted the operation of 73 mining companies in
observance of the Law on the Prohibition of Exploration and Mining operations in the Areas of Water
and Forest Reserve.
The agency found many companies to be operating in violation of the aforementioned law. It
suspended the work of 73 companies and fined each MNT 55 million. A total of 712.6 grams of gold
was confiscated as well. Of the 40 companies operating in Tsenkher Soum in Arkhangai Aimag, 19
were penalized for infringements. Most of the companies were operating on land declared
prohibited before the law was even passed. These companies removed seals placed by inspectors
before beginning their mining activities.
Source: Undesnii Shuudan
PRIME MINISTER DELIVERS SPEECH TO WORLD DELEGATES
Prime Minister S. Batbold participated in the seventh Baikal Economic Forum in Irkutsk, Russia.
Batbold was accompanies by former Prime Minister S. Bayar, MPs D. Idevkhten and E. Munkh-Ochir,
Ulaanbaatar Mayor G. Munkhbayar, and journalists. At the forum the Prime Minister delivered a
speech entitled ―Development Strategy and State Policy of the Baikal and Far East Regions.‖ In

12. addition to Mongolia, representatives from the Russian Federation; members of the Russian State
Duma, regional governors; and delegates from Germany, China, South Korea, the United States,
France, Finland, and Japan attended the affair.
Source: Business-Mongolia
GERMANY COLLABORATES WITH MONGOLIAN IN THE MINING SECTOR
Germany pushed its agenda for its mining aspirations at this year's ―Mongolia-Germany Mining and
Mineral Resources‖ meeting. The event held on 12 September was the third time representatives
from both Mongolia and Germany discussed cooperation in the mining sector.
At the meeting 33 representatives each from Mongolian and Germany exchanged information and
ideas on the growth of the mining industry in both countries. German speakers discussed issues
concerning collaborations between enterprising groups, the end-result of joint projects, and the
difficulties within the mining sector. Each side highlighted progress on a joint-venture to develop a
coal mine at Nariin Sukhait. Construction on the mine will begin in 2012 and production is expected
to begin a year later.
Other topics included the Darkhan-Uul metallurgical factory, an energy plant at Sharyn Gol, and the
Erdenet Mining construction project.
German mining firms are interested in operating in the Mongolian mining sector. For its part, the
Federal Ministry said it would cooperate to establish a Mongolia-Germany intergovernmental
agreement for cooperation in the raw materials sector.
Source: Montsame
ADB TO LOAN USD 20 MILLION FOR EDUCATION
The Asian Development Bank (ADB) will grant a USD 20 million loan to the Mongolian government in
support of higher education. The agreement was made between the ADB and the Finance ministry.
The government will finance and additional USD 2.2 million in support of the project.
The project intends to aid low-income families with children from the countryside to receive a
higher education. The project will include seminars and trainings to improve the capabilities of
school managers and teachers. It will also direct the renovation of buildings, laboratories,
equipments, and libraries at 22 universities. The construction of a national education center is also
being planned. It will include four computer training rooms and 2 more for examinations.
Source: Udriin Sonin
AUSTRALIA TO STEP-UP AID TO MONGOLIA
Australia will increase its aid to Mongolia and its development efforts.
Mongolia and Australia signed a memorandum to introduce the ―Australian Volunteers for
Development‖ program to increase the number of volunteers from Australia from 25 to 30. Minister
of Finance S. Bayartsogt signed a memorandum with Australia's Ambassador to Mongolia Sam
Gerovich. The Australian volunteers will work in health care, environment, education, and media.
The program is three to 12 months of service working with government organizations and NGOs.
The Australian government also decided to increase the sum of its aid to Mongolia by USD 12
million.
Source: Udriin Sonin
GOVERNMENT TO INTRODUCE AGRICULTURAL COOPS TO COUNTRYSIDE
A new law will establish a model for agricultural cooperatives in each of Mongolia's provinces. The
law was passed last June and the program should begin sometime next year.
A report was given by the Ministry of Food, Agriculture and Light Industry officials on the law. The
ministry plans to finance the program with up to MNT 45 million for each cooperative. The
government expects the model will encourage communities in small rural towns to begin their own
cooperatives following its model.
However, some worry herders and farmers do not know enough about markets and trade to
participate. To address this, the government plans to teach people about market trade, but did not
specify how. This part of the program has not yet been explained because additional documents
still need to be prepared, said Vice Minister Kh. Zoljargal.
Source: Udriin Sonin
TAX INSPECTORS TO ATTEND COURSE ON MINING TAXES
State tax inspectors will participate in a training session on mining tax.
The training entitled ―Taxation of the Mining Industry: Tax Payment and its Inspection Methods‖

13. will teach 282 senior tax inspectors about the details of mining taxes. The four days of training will
better equip tax inspectors to manage taxes and familiarize them with methods for tax analysis.
The growing mining sector in Mongolia has been a boon to the government, but high taxes can
discourage foreign investment. Taxes were one complaint discussed at the recent "Discover
Mongolia" conference by industry leaders.
Source: Udriin Sonin
PRESIDENT BANS NUCLEAR DEALS IN CABINET
President Ts. Elbegdorj officially banned the cabinet from dealing with nuclear waste issues this
week. The decision came as a result of growing fear in the population and wide reports of foreign
countries interested in paying Mongolia to store spent nuclear fuel.
The president's decree prohibits the cabinet from cooperating on Mongolia's behalf with any
countries or international organizations on issues involving nuclear energy. This includes holding
discussions and creating documents without permission from the National Security Council (NSC).
The president's authority comes from the Constitution and laws concerning the president and the
NSC.
The directives regarding the president's decree concern the prohibition of nuclear waste storage,
the importation of waste, and transportation of waste on Mongolian soil. The decree was signed by
Prime Minister S. Batbold.
Source: Montsame
NSC REVISITS THE MURDER CASE OF MP S. ZORIG
Last week the National Security Council (NS) reviewed the assassination investigation of S. Zorig.
The MP and minister for infrastructure was murdered in 1998.
The popular politician nicknamed ―the golden magpie of democracy‖ was critical of economic
reforms he believed exacerbated poverty in Mongolia and was known for his anti-corruption stance.
He was murdered just before he could be named prime minister following the resignation of Ts.
Elbegdorj.
The murder of Zorig remains unsolved today. Prosecutor General D. Dorligjav and other officials
spoke about the case before the NSC for the first time. Zorig's sister, MP S. Oyun questioned the
government why no progress has been made in the case. She accused government members of
ignoring the issue entirely.
The NSC has not yet released any further information about the discussion. The official website of
the president recommended the passage of legislation that would release information regarding the
case to the public.
Source: UB Post
GREATER TRANSPARENCY IS NEEDED IN MONGOLIA, SAYS NGO
A report by the Open Society Forum announced transparency is relatively low in Mongolia.
The report is the first independently conducted research on Mongolia's budget transparency. Among
the lowest performing governments in Mongolia were those governing provinces with better
infrastructure and affluent mineral resources, such as Okhon Aimag, Dornogobi Aimag, and
Umnugobi Aimag. The group also recommended the need for greater transparency in local bidding
procedures. Bidding selectors and bidders are typically not announced to the public.
Source: Udriin Sonin
HUMAN TRAFFICKING AGENCY OPENS ITS DOORS IN UB
The International Organization for Migrations (IOM) will open an office in Mongolia's capital. The
group works to solve social and economic problems related to displaced people, and the national
capacity for building activities.
Prime Minister S. Batbold met with IOM director General William Lacy Swing to discuss the NGO's
future. Swing came to Mongolia to meet his working partners and to attend the ASEM Immigration
Agency Director's 10th meeting.
The group is a human rights advocacy and aid group to citizens lost abroad. In the past three years,
IOM has facilitated the return and reintegration of 358 Mongolian victims of human trafficking. More
than 5,000 displaced people and Mongolian citizens returned home with help from the IOM. These
migrants typically lost their documents in foreign countries or were victims of human trafficking
schemes. Many trafficked women are forced to work as prostitutes abroad after having their
passports and documents taken.
Swing said that the opening of its new office in Mongolia will expand operations domestically and

14. internationally to aid migrant Mongolians.
Source: Zuunii Medee
ANNOUNCEMENTS
RETAIL LOGISTICS AND SUPPLY CHAIN MANAGEMENT, UB, SEPTEMBER 27-28
The goal of this international conference, organized by the GIZ Integrated Mineral Resource
Initiative, is to familiarize Mongolian businesses with a more expansive terminology of logistics and
the functions of modern supply chain management. Certain prospects for services shall be
highlighted in the context of Mongolia, with particular focus on trade-logistics.
The main areas for discussion will be:
- Transport and Infrastructure
- Logistics and Supply Chain Management for Retail and Wholesale Businesses.
In addition, Mongolian and German firms will have the opportunity to solicit and discuss business
opportunities together.
BCM is a Supporting Organization of this event. For any questions please contact imri@giz.de.
___________________________________________
NAMBC INVESTORS CONFERENCE - SEPTEMBER 20 DEADLINE FOR REGISTRATION
The deadline for conference registrations and fee remittance is September 20, after which a late
fee of USD 50 per person is assessed. The 14th Annual Investors Conference & Ikh Tenger
Roundtable begins the evening of 4 October and ends the evening of 6 October. The optional Oyu
Tolgoi trip is 7 October.
A one-day visit to Oyu Tolgoi in the South Gobi on 7 October is an optional add-on for conference
registrants. Only eight slots are still available, first come, first served, members or non-members of
the NAMBC. The only requirement is that one be also registered for the Investors Conference. Space
is limited to 10 people, first come, first served. The sign-up deadline is 20 September. This
escorted tour will depart Ulaanbaatar early on the morning of Friday, 7 October, and return the
evening of the same day. The additional fee of USD 500 per person includes round-trip air
transportation, lunch at the site and transportation around Oyu Tolgoi. To sign up, contact
hqinfo@nambc.orgimmediately.
Rio Tinto and Oyu Tolgoi LLC are the "Centennial Sponsors" of our 14th Annual Investors Conference
and Ikh Tenger Roundtable, 4-6 October, in Ulaanbaatar, at which we commemorate the 100th
anniversary of Mongolia regaining independence. They join as sponsors Wagner Asia, Erdenes MGL,
Erdenes Tavan Tolgoi and our brother organization, the Business Council of Mongolia (BCM).
For a registration form and reserving group rate rooms at the Kempinski Khan Palace Hotel, please
visit www.nambc.org.
___________________________________________
MONGOLIA TRADE & COMMODITY FINANCE CONFERENCE, ULAANBAATAR, OCTOBER 13
This landmark conference at the Chinggis Khaan Hotel will only welcome leading experts within the
trade and commodity finance sector, utilizing a format that includes detailed case studies,
informed debate and invaluable networking opportunities.
Among topics to be discussed:
• Considering the threat posed by volatile commodity prices
• Utilizing Mongolia‘s competitive advantage to improve product diversification
• Improving underdeveloped promotion services to demonstrate the unique appeal of Mongolia
• Raising capital from foreign investors to develop projects and infrastructure
• Developing an export financing structure
• Expanding trading relations beyond traditional allies to become a truly global trade partner
• Reducing dependence on foreign imports
• Forging relationships between local and international banks to provide vital liquidity.
BCM is an Institutional Partner for this event and special offers are available for BCM members. The
conference brochures with agenda will be available in BCM office and will also be distributed at
BCM‘s September 26 monthly meeting.
Please contact Ms. Monika Kuzniewska, Marketing Executive, at monika@exportagroup.com or by
phone at +44 (0) 20 8772 3013 for further information.
___________________________________________

15. MONGOLIA INVESTMENT SUMMIT 2011 (HK), OCTOBER 25-27
New sponsors announced – tackling Mongolia‘s infrastructure needs.
We are delighted to welcome international infrastructure and engineering giants General Electric,
Worley Parsons and Mongolia Growth Group on board as sponsors and exhibitors at the event.
General Electric joins the conference programme to give a perspective on Mongolia as an
investment destination for a major multi-national corporation and will outline major project
opportunities from power, water, coal-gasification, transport infrastructure, mining services,
healthcare and more.
BCM is a Supporting Organization for this event. BCM Members are entitled to a special 15%
discount. To register, simply: Call us on +852 2219 0111. Email us at info@beaconevents.com.
Register online at the Mongolia Investment Summit website.
We look forward to receiving your registration and look forward to welcoming you to the Conrad
Hong Kong on 25-27 October.
P.S. For companies wishing to secure one of the few remaining speaking, exhibiting or branding
opportunities at the Summit, please contact Toby Duckworth at toby.duckworth@aspermontuk.com
for prices and availability.
____________________________________________
METALS MONGOLIA, ULAANBAATAR, NOVEMBER 3-4, 2011
The main objective of the international investment conference, to be held in Government House, is
to provide a discussion platform and assist in medium- and long-term planning and implementation
associated with the government‘s intentions to achieve value-added production at industrial parks
through downstream processing of ferrous and non-ferrous metal products. It is aimed to provide
potential investors with an insight into the government‘s policies pertaining to the metallurgical
industry, related exploration, extraction, processing, and infrastructure projects; to facilitate such
investments; provide opportunity for open discussion and possible solutions through involvement of
representatives of both public and private sector and professional organizations on the
opportunities and challenges in project financing, tax and legal environment.
The conference will have main and branch sessions involving over 800 representatives of parties
engaged in ferrous and non-ferrous metal projects, manufacturers, suppliers, foreign and domestic
investors, academics, professional associations, state administrative bodies, embassies. The main
conference will cover the present situation and future trends in Mongolia‘s metallurgical industry. A
special feature will be the ―Government Hour,‖ which will feature an open discussion on
strengthening PPP in the metal-based industrialization process.
The branch conferences will be on:
Opportunity to develop rare-earth based industries
Develo9ping base metal industries
Developing iron and steel industries
Issues facing provision of required infrastructure to ferrous and non-ferrous metals
based on industries-experiment and opportunity
Each branch conference will include thorough discussions of resources and reserves of the type of
metal discussed, applicable market conditions, investment projects, technology and equipment.
BCM is a Supporter of the event.
For more information, Visit: http://www.metalsmongolia.mn/, or call +976-70115590, Fax:+ +976-
70125590, or email: info@metalsmongolia.mn.
___________________________________________
MIDEST 2011, PARIS, FRANCE - NOVEMBER 15-18
Registration is open for the MIDEST 2011 and the Maintenance Expo 2011 this fall. The conventions
will be held in Paris, France from November 15 to 18, 2011. Registration will be made by the
Business Council of Mongolia in conjunction with the French Embassy.
MIDEST 2011 is both a business show and showcase for solutions. It is also a channel and a source of
information about the technologies delivering concrete industrial and economic advances.
Maintenance Expo 2011, featuring 1,700 subcontractors from 75 countries around the world, will be
an additional part of the event. Attendees will learn about advances in industrial subcontracting
techniques in the processing of metal, plastic, wood, and other materials. There will also be
information on rubber and composite materials, electronics, micro techniques, and more.
Those who join the official delegation will receive a variety of perks. Benefits include free access to

16. the exhibition hall in addition to the International Business Center where attendees can arrange
private meetings with exhibitors. Assistance will be given for arranging and scheduling
appointments with French exhibitors, show logistics, and travel and hotel booking. It will also
provide entrance to 100 conferences regarding stagey, economics, and technology.
For more information or registration call 317027 or email saruul@bcmongolia.org. The registration
deadline is September 26 at 6 p.m.
MM TODAY” on MNB-TV, Fridays at 21:15
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 for 21:15 tonight. Tune in to watch this program that reports stories from today‘s BCM
NewsWire.
___________________________________________
“BSPOT” on B-TV, Monday to Friday at 21:30
B-TV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every
evening from Monday to Friday at 21:30, taking most of the stories from the BCM NewsWire.
___________________________________________
POSTINGS ON BCM‟S ENGLISH WEBSITE 'PRESENTATIONS' AND 'MONGOLIA REPORTS' and BCM‟s
MONGOLIAN WEBSITE „NEWS‟ SECTIONS
As a key component of BCM‘s Mongolian website, ―News‖ section, articles from the Government‘s
―Open-Government.mn‖ site is being regularly posted. Also several draft laws, still to be discussed
in Parliament, are posted on BCM‘s English website in the Legislative Working Group section.
On BCM‘s English website - ‗Presentations‘ from BCM‘s 7 monthly meetings in 2011, Peter Nicholls,
OT‘s VP-Operations, at Global MInES in Sydney on July 4, summaries of the key addresses at Eurasia
Capital‘s Mongolian Investment Conference on May 25, Jim Dwyer of BCM‘s interview on Mongolia
National Broadcasting‘s ―Face to Face‖ on May 16, and the very successful Mines and Money Hong
Kong‘s ‗Mongolia Investment Summit‘ morning on March 25 are posted in BCM website‘s "Resource,
Presentations" for your review.
Also on BCM‘s English website, ‗Mongolia Reports‘ including "Blitz and Lead" by Sant Maral
Foundation, August 2011, Z. Batbayar, Deputy Director of the Water Authority, at BCM‘s
Environmental Working Group‘s recent meeting, the Polit Barometer-May 2011 from Sant Maral
Foundation and the U.S. Embassy Mongolia‘s Commercial Section‘s ―2011 Mongolia Investment
Climate Statement‖ are among the reports posted on BCM's website (www.bcmongolia.org) in the
―Resource, Mongolia Reports‖ section.
We are now posting some news stories and analyses relevant to Mongolia on the BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until Friday to put them all together in
the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will
incorporate items that are already on the home page, so that it presents a consolidated account of
the week‘s events.

17. ECONOMIC INDICATORS

18. 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]
August 31, 2011 *9.0% [source: NSOM]
*Year-over-year (y-o-y)
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
CURRENCY RATES – September 15, 2011
Currency Name Currency Rate
U.S. dollar USD 1,259.08
Euro EUR 1,733.50
Japanese yen JPY 16.32
British pound GBP 1985.00
Hong Kong dollar HKD 160.79
Chinese Yuan CNY 197.11
Russian Ruble RUB 41.25
South Korean won KRW 1.13
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.