October 16 2009

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmmongolia.org
info@bcmongolia.org
Issue 90, October 16 2009
NEWS HIGHLIGHTS:
Business:
 Nuclear Energy official attempts to calm uranium companies’ concern;
 Joint venture wants to get rid of Khan Resources, but how can it?
 Rio Tinto buys Ivanhoe shares for USD388 million;
 OT investment to pave way for more in Mongolia, says analyst’s report;
 First-ever global depository receipt program to be launched;
 Ownership ratio in Russia-Mongolia uranium joint venture still unresolved;
 SouthGobi Energy President to be CEO, too;
 ING sells Asian private banking assets to Chinese bank;
 Just Group likely to control new entity formed by two banks’ merger;
 Khan Bank issues special card for Bayangol citizens;
 Korean firm offering IT services to Mongolia;
 Ferragamo plans to open store in Mongolia;
 China extends Rio probe by a month.
Economy:
 Fitch raises Mongolia's long-term currency ratings outlook;
 Consumer price index falls 0.1 percent, economy in deflation;
 World Bank report notes positive developments;
 Despite complaints, Mongolia attracting investors “like a magnet”;
 Rio sees slower Chinese copper imports;
 JPMorgan raises price forecasts for gold and copper;
 Chilean think-tank predicts rise in copper prices;
 New Customs laws not implemented in two months;
 Agricultural companies seek more time to pay back Government loans;
 MPs agree to discuss amendments to Mineral Law;
 Scrutiny of exploration licenses reveals widespread fraud;
 Inspection finds irregularities in mineral authority accounts;
 Anti-Corruption chief says not possible to work with Public Council;
 Brisk private trade in fuel;
 Herders making deals with meat companies, ignoring individual traders;
 Herders await declaration from WHO;
 China, Russia sign trade deals worth several billion dollars;
 Healing U.S. labor market will take years;
 Hummer sale marks first Chinese foray into U.S. auto market.
Politics:
 Unhappy with OT agreement, Russia plays the debt card;
 MP takes oath, 15 months after election;
 Both parties working on distributing revenues from mineral resources;

2.  New relations, concepts, technology come into use;
 Mongolia 115th
among 182 nations in Human Development Index report;
 Shipping agency files in London court against owner of Mongolia-registered ship;
 No decision yet on buying 4,000 apartments;
 Mongolia has 5,000 prisoners;
 UN expert on education impressed by Mongolia’s performance;
 Oyun wants all suitable countries to be given a chance;
 Ulaanbaatar uses 4 million tons of coal a year;
 President names new foreign policy advisor.
BCM NEWS ALERT
TS. BOLDBAATAR JOINS BCM EXECUTIVE COMMITTEE
We are pleased to announce that Mr. Ts. Boldbaatar, Chairman of Newcom, has accepted the
invitation to become a member of the Business Council of Mongolia (BCM) Executive Committee.
Mr. Boldbaatar's strategic vision will be a most important asset to BCM in our future efforts and
growth.
BUSINESS
NUCLEAR ENERGY OFFICIAL ATTEMPTS TO CALM URANIUM COMPANIES‟ CONCERN
Mr. T.Bayarbayasgalan, Head of the Licensing Division of the Nuclear Energy Agency, has clarified
that the ambit of the recent law on the State‘s role and share in the uranium sector does not
include exploration licenses and covers only companies involved in operating mines where the
reserves of the deposit have been established and registered with the State. Referring to the
requirement for companies to renew the registration of their licenses, he said, ―The principle is to
make sure that the interests of neither the Government nor the company are compromised. There
is no question, however, of giving compensation to companies who may not be granted a renewed
license.‖
Denying that the renewal exercise is actually aimed at reducing the number of licenses, and to
allow only major companies to stay in the field and force out the minor ones, Mr. Bayarbayasgalan
said all uncertainty will end soon as the Agency posts all regulations and instructions related to the
licenses on its Web site. Companies should then have no uncertainty about what material to submit
and in what manner. ―Our goal is to reduce ambiguity and follow transparent procedures,‖ he said.
He also refuted criticism that the law on nuclear energy was passed ―in undue haste and without
adequate deliberation‖. The process had been started two or three years ago. A policy formulated
by the Government on use of radioactive minerals was ratified in May. The law is in fulfillment of
this policy and its draft was discussed by the National Security Council two or three times. It was
also reviewed at Cabinet meetings. Both Parliament and the Government appointed working groups
to study the draft and professionals were involved at several stages. Accepting ―the possibility that
as we begin its implementation, loopholes will be discovered and some concerns expressed by some
companies and NGOs will turn out to be true‖, he said, ―This is only to be expected and we shall
have to cross every bridge as we come to it. There is no problem that cannot be resolved. Our
intention is not to harm any company. If there is a need, we shall seek professional help to improve
the law but even as it stands, there is nothing in the law that is against national interests, or that
shows prejudice against investors.‖
Source: www.mongolianminingjournal.com
JOINT VENTURE WANTS TO GET RID OF KHAN RESOURCES, BUT HOW CAN IT?
With its potential to become one of the world‘s largest uranium producing nations, Mongolia is
quickly becoming a strategically important region in the battle over control of the market. Both
Russia and China seek to establish dominance, while a recent law gives Mongolia at least 51%
ownership in any deposit. This has led to several areas of legal uncertainty and conflict of interest.
Canada‘s Khan Resources holds a mining license for Dornod, one of Mongolia‘s largest uranium
deposits, through a 58% owned subsidiary with the remaining shares equally split between the

3. Mongolian Government and Russian state- controlled Priargunsk, which is 80% held by state-
controlled TVEL, and which produces 17% of the world‘s nuclear fuel. Khan and Western Prospector,
the other significant western-based company with uranium assets in Mongolia, saw their licenses
suspended for three months because of unspecified infractions on site.
This questionable move was followed by a uranium deal sealed on August 25 between Russia and
Mongolia on setting up a joint venture to develop the Dornod deposit as part of a wider pact to
boost cooperation in infrastructure. The Dornod deposit is supposed to hold seven times as much
uranium as Russia produced last year.
The most convenient solution for the conflict of interest with Khan, without Mongolia losing face
before the international investment community, would be to have the Mongolian and Russian joint
venture partners to offer Khan shareholders a fair exit-premium of at least 50%, comparable with
the premium of 51% First Development offered to Western Prospector shareholders.
Read more…
Khan had finished a feasibility study on the project in March of this year and pegged annual
production at 3 million pounds of U3O8 over a mine life of over 15 years and put probable mineral
reserves at 18 million pounds of U3O8 out of the 64.4 million pounds of indicted mineral resources
(NI 43-101 compliant). Khan‘s initial estimated capital cost of the project is about USD333 million.
It also signed a Letter of Intent with Japan‘s Marubeni in October 2008. State-owned Rosatom,
which owns all of Russia‘s nuclear assets, has said that the joint venture is open for companies from
other countries to join as shareholders, which should secure Khan‘s legitimate interest in Dornod
with the support of Marubeni.
In the meantime, in June 2009, First Development Holdings, an indirect wholly-owned subsidiary of
CNNC International, China‘s leading uranium and nuclear fuel company listed on the Hong Kong
Stock Exchange, made a successful takeover bid for Western Prospector.
Source: The ASIA Miner
RIO TINTO BUYS IVANHOE SHARES FOR USD388 MILLION
Rio Tinto will increase its holding in Ivanhoe Mines from 9.9% to 19.7%, the companies announced on
Tuesday. Rio will buy 46.3 million Ivanhoe shares at USD8.38 apiece, for a total of USD388 million,
as agreed by the companies in 2006. The latest investment will boost Ivanhoe's consolidated cash
position to about USD725 million, the company said.
The transaction is the second tranche of a larger investment in Ivanhoe by Rio. Under the
agreement between the two companies, Rio can increase its holding in Ivanhoe to 43.1% over the
next two years, and can boost the stake to more than 46% by buying shares on the open market.
The funds will be used to help build and commission the open-pit mine at Oyu Tolgoi and to
advance development of the underground block-cave mine.
As part of the investment agreement signed last week, the Government of Mongolia has agreed to
buy 34% of the Oyu Tolgoi project, and Ivanhoe – with its strategic shareholder Rio - will hold the
balance. Under a separate agreement, Ivanhoe will also be investing USD100 million in Mongolian
Government treasury bills on October 20, 2009.
The company has said it will have ―adequate‖ capital for its current development plans and
spending commitments. It had indicated last month it was considering selling a stake of up to 9.9%
to other strategic investors. However, that is no longer something being considered at present, it
now says.
Source: www.miningweekly.com
OT INVESTMENT TO PAVE WAY FOR MORE IN MONGOLIA, SAYS ANALYST‟S REPORT
The Oyu Tolgoi project has the potential to become the template for Mongolia‘s other mining
projects and to increase investment in the commodity-rich country, according to a report released
last week. It is ―almost impossible to exaggerate OT's multiplier effect‖, said an analyst at CLSA
Asia Pacific Markets, in the report.
Citing estimates that the execution of the project could increase Mongolia's per capita GDP by more
than 30% a year, the report says, ―Mongolia, therefore, has the potential to become the ultimate
high beta play of the investment story based on China's rapacious demand for resources.‖ China
already accounts for about two-thirds of Mongolia's exports. While more than half of China's imports
from Mongolia are copper concentrates, the country also has enormous deposits of coal, gold and
uranium.

4. Source: Dow Jones Newswires
FIRST-EVER GLOBAL DEPOSITORY RECEIPT PROGRAM TO BE LAUNCHED
For the first time in Mongolia, Tuul Songino Water Resource JSC, one of the Top 20 companies listed
at the Mongolian Stock Exchange, is launching a Global Depository Receipt program with the Bank of
New York Mellon (BNYM) that it hopes will become a milestone in the development of capital
markets in the country. To implement its GDR program, TSU has mandated BNYM as the depository
bank and retained Eurasia Capital Mongolia as financial adviser.
The program aims at attracting new international investors and providing more transparency and
improved corporate governance to shareholders. TSU will carry out a sponsored non-capital raising
GDR program at the Deutsche Bourse in Frankfurt, which would increase the company‘s visibility
and attractiveness to global investors. The GDR program will also enable TSU to enlarge its investor
base and boost the profile of the Mongolian equities market among international investors.
Mr. Alisher Ali Djumanov, Chairman of the Board of TSU, has said following the agreement over Oyu
Tolgoi, Mongolia is ―set to become one of the world‘s fastest growing economies for many years to
come… The Mongolian domestic equities market at this stage is small… and we are delighted to
start the pioneering effort of introducing Mongolian companies to international capital markets.‖
Source: www.tuulsongino.com
OWNERSHIP RATIO IN RUSSIA-MONGOLIA URANIUM JOINT VENTURE STILL UNRESOLVED
A divisional head of the recently formed Nuclear Energy Agency has said no final decision has yet
been taken on the ownership details in the proposed Russia-Mongolia joint venture, Dornod
Uranium. An understanding in principle on the joint venture has been reached but the Russian side
is yet to accept the Mongolian demand for 51% ownership though ―our law is clear that no less than
51% will be owned by the Mongolian Government‖. Saying that the company cannot obviously be set
up until this basic issue is resolved, the official said a task force is working on formulating the
modalities of establishing a joint company.
Source: www.mongolianminingjournal.com
SOUTHGOBI ENERGY PRESIDENT TO BE CEO, TOO
Mr. Alexander Molyneux, currently President, has been named to perform the dual role of President
and Chief Executive Officer (CEO) of SouthGobi Energy Resources Ltd., in succession to Mr. Peter
Meredith, who will assume the position of Chairman of the Board. Mr. John Macken, who has been
Chairman since 2007, will remain a director of the company.
―Alex has demonstrated that he is the right person to take over as Chief Executive and guide our
company into the next phase of growth,‖ said Mr. Meredith. ―Alex will lead the management team
tasked with the expansion of the company's flagship Ovoot Tolgoi coal mine, as well as the ongoing
development of the company's other coal projects in southern Mongolia and Indonesia.‖
Mr. Dave Bartell has been appointed Vice President and Director of SouthGobi's Mongolian
Operations. He has been the General Manager of Southgobi Sands LLC, the company's Mongolian
subsidiary, since November 2007 and Manager of Engineering since joining the company in January
2007. In September, SouthGobi appointed Mr. Gavin May Chief Operating Officer to manage the
company's coal mining and exploration operations in Mongolia.
Source: www.southgobi.com
ING SELLS ASIAN PRIVATE BANKING ASSETS TO CHINESE BANK
ING Groep NV has sold its Asian private banking assets to Oversea-Chinese Banking Corp. (OCBC) for
USD1.5 billion. OCBC has said it was acquiring the assets as part of its strategy to expand in the
region.
DBS Group Holdings Ltd. and HSBC Holdings PLC also put in bids to buy the ING assets. ING is
targeting 6 billion to 8 billion euros in asset sales to help pay down a 10 billion euro lifeline it
received from the Dutch Government last October to underpin its core capital.
Source: The Wall Street Journal
JUST GROUP LIKELY TO CONTROL NEW ENTITY FORMED BY TWO BANKS‟ MERGER
The merger of the Savings Bank and the Mongol Shuudan Bank, announced on Monday, will create a
new entity with MNT48.2 billion in capital, 132,300 account holders and 76,500 borrowers in 324

5. branches with 1,892 employees. Both banks operate nationwide. No job cuts will be made because
their existing branches do not overlap.
Mongol Shuudan Bank is a 100-percent private organization, with its shares owned by 64 individuals
and 13 companies. The Savings Bank was established in 1996 and privatized in 2006 when it was
bought by a Russian, Mr. S.Gromov, who also owns Chinggis Khaan Bank and Mongol Insurance. He
made several requests to the State Property Committee to be paid the USD12.2 million that was
found missing from the bank‘s declared assets, but when nothing came of them, he sold the bank to
Just Oil, he said. His information was that the Just Group was likely to buy up most of the shares of
Mongol Shuudan and thus gain overall control of the new bank.
Read more…
Asked for his comments on the Central Bank‘s recommendation to merge smaller commercial banks
and its President‘s expressed opinion that five banks would be enough for Mongolia, Mr. Gromov
recently said he does not agree with either ―but we have no choice if the leader of the banking
sector holds such views‖. This was all the more unfair as the Central Bank has not offered ―any
significant support to commercial banks‖. He felt a ―bank‘s future must be decided by its
depositors and not foreign organizations‖ like the IMF.
Source: Ardiin Erkh
KHAN BANK ISSUES SPECIAL CARD FOR BAYANGOL CITIZENS
Employees of economic entities, organizations, state and private colleges and universities operating
in Bayangol district can now have a Khan Bank payment card allowing them access to various
banking services. An agreement between the bank and the district governor‘s office entitles the
holder of a card to receive a package of products and services such as payment cards, direct savings
and mobile banking services on concessionary terms. The holder will also have access to various
other services like transfers and withdrawals through over 130 ATMs and non-cash settlements at
over 800 establishments. They will also be eligible for salary card loans.
The card, introduced to mark the 370th anniversary of Ulaanbaatar city, features Bayangol
landmarks such as the TV tower and a panoramic view of the residential quarters.
Source: www.khanbank.com
KOREAN FIRM OFFERING IT SERVICES TO MONGOLIA
SK C&C of South Korea is exploring a new silk road linking Mongolia, China, Central Asia, West Asia,
and the USA for exports of its new IT services. For example, it is now engaged in a USD12-million
ITS building project in Ulaanbaatar. It is also establishing a tariff administrative information system
comprising customs clearance business of export and import goods and cargo management in the
country. In April, it completed the establishment of a mobile financial service system for Khan
Bank, the biggest bank in Mongolia.
Source: KOREA IT TIMES
FERRAGAMO PLANS TO OPEN STORE IN MONGOLIA
Salvatore Ferragamo SpA, whose shoes are worn by Jennifer Lopez and Zhang Ziyi, plans to open
stores in Mongolia, Turkey and Egypt to tap rising demand for luxury goods in emerging economies.
The Italy-based company may start stores in those locations in the next 6 to 18 months, Chief
Executive Officer Michele Norsa has said in an interview. Ferragamo is working on a project in
Mongolia, where it doesn‘t have a store, he said.
Asia‘s developing economies will expand 7.3 percent in 2010 after growing 6.2 percent this year,
the International Monetary Fund has said. Advanced economies including the U.S., Germany and
Japan will shrink 3.4 percent in 2009, it forecast.
Source: Bloomberg.com
CHINA EXTENDS RIO PROBE BY A MONTH
China has extended by a month a probe into suspected corporate espionage by employees of Rio
Tinto, a case which has strained ties between Australia and its second-largest trade partner. The
four employees, including Australian citizen Stern Hu, were detained on suspicion of stealing state
secrets shortly before a deadline for concluding annual iron ore negotiations between Chinese steel
mills and the world's three top miners, Rio, BHP Billiton, and Vale.

6. Their formal arrest in August included the charge of stealing commercial secrets, but not the more
serious state secrets charge. The extension of the investigation came on the request of the public
security bureau, said Mr. Zhang Peihong, a lawyer for one member of Rio's Shanghai-based iron ore
team.
A senior Chinese official at Shougang Steel in Beijing was also detained, and many other Chinese
steel officials investigated in what many in the industry viewed as a bid by the China Iron and Steel
Association to gain control over the fractious sector.
Source: Reuters.com
ECONOMY
FITCH RAISES MONGOLIA‟S LONG-TERM CURRENCY RATINGS OUTLOOK
Fitch Ratings on Sunday raised the outlook on Mongolia's long term foreign and local currency
ratings to stable from negative and affirmed the corresponding Issuer Default Ratings at 'B'. Fitch
also confirmed the country ceiling and the short term foreign currency IDR at 'B'. The ratings agency
said the revision was based on the stabilization of Mongolia's sovereign credit fundamentals
particularly since the approval of the IMF program in April 2008 and the signing of several external
borrowing agreements in the first half of this year.
Fitch said Mongolia's external fiscal position has been stabilizing, with foreign exchange reserves
recovering from its lows in March. Its external liquidity position is the strongest among the ‗B' peer
group and it has no short-term external debt. Fitch noted how the Government has also showed
fiscal prudence. The agency believes the signing of the Oyu Tolgoi investment agreement will boost
the Mongolian Government's profile with international investors interested in further mining
development, and would benefit the country's long-term economic development.
Source: RTTNews
CONSUMER PRICE INDEX FALLS 0.1 PERCENT, ECONOMY IN DEFLATION
The national consumer price index in September 2009 fell 0.1 percent from the previous month,
and was 2.1 percent more than what it was at the end of 2008. The year-over-year inflation rate at
September 30, 2009 was -2.9 percent as the economy is experiencing deflation.
Source: National Statistics Office
WORLD BANK REPORT NOTES POSITIVE DEVELOPMENTS
Increased exports of coal and greasy cashmere, continued narrowing of the trade deficit, increase
in international reserves, fall in the overall consumer price index, disappearing inflation, a slightly
increased job demand, growth in MNT savings, and a modest improvement between April and
September in the real income of the poor – these are the positive aspects noted by the World Bank
in its Mongolia monthly economic update for September, issued earlier this week. On the flip side
are declining exports, rise in non-performing bank loans, and in loans with principal in arrears.
The economy is in deflation, driven by price decreases in food and fuel products, while core
inflation is in single digit. The Central Bank cut its policy rate by one and a half percent and
commercial banks reduced their nominal interest rates on MNT deposits. Confidence in the local
currency is being restored, but the banking sector continues to be at significant risk -- a worrisome
trend which is now almost ten months old.
Hardest hit by the economic downturn during the last year were the poor. The World Bank
commissioned two special surveys on the daily wages of unskilled workers in key informal labor
markets in Ulaanbaatar in April and September, 2009. While the April survey showed real income
had collapsed by about 60 percent in a year, the results of the September survey suggest the trend
is now arrested.
Source: The World Bank
DESPITE COMPLAINTS, MONGOLIA ATTRACTING INVESTORS “LIKE A MAGNET”
The State Secretary at the Foreign Ministry, Mr. D. Tsogtbaatar, told media at the conclusion of last
week‘s two-day conference to assess the investment environment in Mongolia that despite some
problems, the opportunities in the country are acting like ―a magnet in attracting businesses to
Mongolia‖. The meeting was arranged by The Foreign Investment and Foreign Trade Agency (FIFTA)

7. in co-operation with the Ministry of Foreign Affairs and Trade.
Participants, both foreign and domestic, called for a stable and reliable legal environment, a
reduced role for the bureaucracy and an end to corruption. There were complaints about the
―rampant trade‖ in grant of licenses and the Government was taking ―very seriously‖ the allegation
made by several participants that affairs in certain sectors ―were totally controlled by a coterie of
Government employees‖, he said.
The meeting, organized with help from the World Bank, the International Finance Corporation, and
the Business Council of Mongolia, was attended by r epresentatives of 204 companies. It assumed
special significance as being the first internationally attended investors‘ conference after the
signing of the Oyu Tolgoi agreement.
Read more…
Explaining his comment that one attraction of Mongolia for investors from all the countries of the
world was its two neighbors with big markets, Mr. Tsogtbaatar said this geographical constant had
now assumed importance as China has become a big player in the world economy and is hungry for
Mongolian natural resources, while the Russian economy also has a tremendous capacity to expand.
―When we invited foreign investors in the 1990s, they said Mongolia was too far from the world
market. Now they know that the world market is at the doorsteps of Mongolia,‖ he said.
Source: en.News.mn
RIO SEES SLOWER CHINESE COPPER IMPORTS
Rio Tinto expects Chinese copper imports to slow in coming months and sees some downside risk to
prices over the next 12 months, the head of its copper division said on Tuesday. ―We expect
Chinese imports to slow down to 150,000-200,000 tons per month,‖ Mr. Bret Clayton said, adding he
was bullish about prices in the longer term due to expected supply problems, saying he would not
be surprised to a see a record peak within two to five years.
Imports to the world's top copper consumer soared to record highs above 300,000 t/m in the second
quarter but have fallen since then. August imports were at 219,731 t, down from July's near
300,000 t.
―If you pass 9-12 months our view is quite optimistic on the future outlook for metal,‖ Mr. Clayton
said, adding the supply constraints in the market would make it difficult to match demand. ―If you
look 2-5 years out, we're pretty optimistic about how the industry looks,‖ he said.
The price of copper, used extensively in construction, has more than doubled since the start of the
year, thanks to Chinese restocking and signs the global economy is improving. Mr. Clayton said he
expected demand from China to stabilize next year, after growing around 15% to 20% this year.
Source: Reuters.com
JPMORGAN RAISES PRICE FORECASTS FOR GOLD AND COPPER
JPMorgan has raised its 2009 price forecasts for gold and silver and said new record highs for gold at
USD1,050/oz to USD1,100/oz were likely in early 2010. In a research note, the bank said it has
revised its 2009 price view for gold up to USD948/oz from USD939/oz predicted in July.
―Overall we are looking for gold to average around USD1,000/oz in the fourth quarter... but new
highs look likely for early 2010,‖ it said. For next year, it lifted its gold forecasts to USD1,006/oz
from USD950/oz.
The bank said, however, that investors may currently be paying too high a price for gold as an
inflation hedge. ―We do remain concerned that gold as an ‗inflation trade‘ is both expensive and
premature,‖ it said.
The bank also lifted its forecasts for base metals for 2009 and 2010, though it said it expects 2010
to be ―a year of consolidation in the base metals, as opposed to a year of new highs or lows in
price‖. It now sees copper averaging USD4,998/t this year, up from a previous forecast of
USD4,775/t, and it sees copper next year at USD5,950/t, against a former view of USD5,563/t.
Source: Reuters
CHILEAN THINK-TANK PREDICTS RISE IN COPPER PRICES
Copper prices are seen rising steadily to reach an average of USD2.86/lb in 2011, according to a poll
released last week by the influential Chilean copper think-tank Cochilco. The poll of 19 industry
experts calculated copper averaging USD2.68/lb next year with a possible high of USD3.15/lb.

8. Cochilco's own forecast had prices averaging USD2.10/lb next year.
Both predictions are still far from last year's record high of more than USD4/lb as analysts remain
cautious about the global economic recovery even though copper prices have rebounded around 90%
so far this year. Tough labor negotiations in top producer Chile and other countries across the world
have raised the specter of strikes that could further lift the value of copper.
The poll saw copper prices averaging USD2.65/lb between October and December of 2009.
Source: Reuters.com
NEW CUSTOMS LAWS NOT IMPLEMENTED IN TWO MONTHS
The customs laws passed by Parliament in the Spring session are still to take effect, two full months
after they were passed. The specific aim of the laws was to help small and medium entrepreneurs
who now find themselves in a bind. Some 100 of them went to China to buy equipment which they
cannot bring home as the Erlian customs officials demand payment of taxes at the existing high
rate, saying they have no information about any new laws or exemptions. Meanwhile interest on
bank loans continues to accumulate, and assets offered as collateral are in danger of being seized
for non-payment of dues. The entrepreneurship development program risks ending up in
entrepreneurship destruction.
Source: Undesnii Shuudan
AGRICULTURAL COMPANIES SEEK MORE TIME TO PAY BACK GOVERNMENT LOANS
Agriculture companies have asked for an extension of the repayment period of the loans they took
from the Government to buy equipment and fuel. They have also pleaded that they had to spend
twice the estimated amount on salaries and food for workers and use 302 more tons of fuel as
unseasonal cold weather delayed the harvest.
Source: Undesnii Shuudan
MPs AGREE TO DISCUSS AMENDMENTS TO MINERAL LAW
Parliament has agreed to the Finance Minster‘s proposal to discuss some draft amendments to the
Law on Mineral Resources. One of these seeks to change the provisions governing the period and
amount of losses that can be carried forward for purposes of income tax. The proposed amendment
will allow 100 percent of the losses to be carried forward for periods ranging from 4 to 8 years.
Article 61.4 in the Mineral Law will be canceled, and Article 7.1 will be operative, to eliminate any
possibility of ambiguity.
Source: Udriin Sonin
SCRUTINY OF EXPLORATION LICENSES REVEALS WIDESPREAD FRAUD
Officials, right from Governors of provinces and districts to environment inspectors and medium-
and low-level employees in several departments, are involved in widespread corruption in league
with mining companies. The Minerals Resources Authority of Mongolia reached this conclusion after
a review of exploration expenditure reports for 2008 submitted by all companies holding licenses in
21 provinces.
The scrutiny found that 55.6% of these companies worked at a satisfactory level, while the claims of
24.3% were disproved during on-site inspection. The remaining companies will be probed further.
Trading in licenses was widespread, and state officials regularly connived at preparation of falsified
documents.
Business units that made honest mistakes because of their ignorance or wrong understanding of the
law might not have their licenses revoked or suspended, but strong measures will be taken against
those which submitted fake documents with a deliberate intention to defraud. The inspection also
revealed that local authorities knowingly issued false certificates of work for considerations ranging
from cash to free holidays abroad.
Read more…
More than 5,000 licenses, for both exploration and mining, were issued to 1,900 companies. The
present review has decided that 120 licenses will be revoked, joining the 640 already canceled for
non-payment of dues and other reasons. The issue of licenses for work near forests and water
sources will take a little longer to be resolved. Earlier, the deadline had been given as October 16.
Source: Udriin Sonin

9. INSPECTION FINDS IRREGULARITIES IN MINERAL AUTHORITY ACCOUNTS
The Professional Monitoring Agency has come up with several irregularities during a recent
inspection of financial activities in the Mineral Resources and Oil Authority. Some MNT10 million
earmarked for maintenance was apparently spent on New Year celebrations. Twice that amount
was spent on publicity and USD30,000 went towards financing 16 foreign trips of people with
tenuous links to the organization. Car purchases exceeded the budget by MNT407 million.
USD16,000 per year was given to each of 52 students enrolled abroad, but none of them was taking
courses in permitted areas dealing with the sciences and/or technology. There was also no record
of thousands of millions of MNT received as license fees.
Source: Undesnii Shuudan
ANTI-CORRUPTION CHIEF SAYS NOT POSSIBLE TO WORK WITH PUBLIC COUNCIL
Anti-Corruption Authority (ACA) Director Ch.Sangaragchaa has made a complaint to the
Constitutional Court saying it was impossible to work with the Public Council set up under orders
from the President. Explaining their position, officials of the Council told a press conference on
Tuesday that the ACA‘s unhappiness arose when it was asked to submit a report on certain issues,
among them one on how 14 employees of the ACA itself were given apartments. They said the
Council would continue to work as a request to the Constitutional Court had no legal status.
Source: en.News.mn
BRISK PRIVATE TRADE IN FUEL
Private trade in fuel seems to be growing. This is run mostly by individuals who charge MNT 250-390
less per liter than what one pays at the petrol station. Many drivers who travel regularly between
rural areas and Ulaanbaatar know where to find them and some mining companies are also believed
to favor them over regular fuel companies. The brisk trade in cheaper fuel makes one wonder if the
Government and the importers are right when they say petroleum products cannot be sold any
cheaper than what they charge.
Source: Udriin Sonin
HERDERS MAKING DEALS WITH MEAT COMPANIES, IGNORING INDIVIDUAL TRADERS
One reason why herders never manage to make enough money from their animals is that individual
traders are always on the lookout for a herder in distress who needs money desperately and is
willing to sell some animals at cheap rates. In the absence of meat processing units with adequate
capacity, this has always been how the trade is run, with the primary producer at the mercy of
rapacious traders.
Things are showing signs of changing. The herders‘ association in Zuunburen soum of Selenge aimag
has negotiated with national meat producing companies to supply meat to them directly, bypassing
small traders or middlemen. The companies will pay prices that are higher than what unorganized
traders offer.
Source: Undesnii Shuudan
HERDERS AWAIT DECLARATION FROM WHO
Herders in the western provinces are awaiting a declaration from the World Health Organization
(WHO) that theirs is a ―Livestock Disease Free Area‖. This will allow them to export freely. The
western provinces have about 13 million livestock, more than a quarter of the country‘s total
livestock population. Herders produce 60,000 tons of meat annually. Most of the animals are
slaughtered by hand. Only 4 of the 11 meat factories work regularly. Some 20 factories will be
needed if the meat is to be produced mechanically.
Source: Zuunii Medee
CHINA, RUSSIA SIGN TRADE DEALS WORTH SEVERAL BILLION DOLLARS
China and Russia, in a bid to repair ties strained by a trade spat this summer, signed contracts
valued at several billion dollars but didn't reach a breakthrough in protracted negotiations on a deal
to supply Russian gas to China. Among issues discussed during a visit to Beijing by Russian Prime
Minister Vladimir Putin was the prospect of settling trade between the two neighbors in their
domestic currencies -- part of China's efforts to bolster the yuan as a regional currency.

10. China and Russia are eager to reinforce relations that frayed in past months after Russia accused
Chinese traders of selling smuggled goods, and shut down a wholesale market near Moscow where
about 60,000 Chinese merchants worked. The two say they want to focus on common ground: China
is hungrily eyeing Russia's natural resources, and Russia, battered by last year's collapse of oil prices
and credit, wants Chinese investment to develop its economy.
―China is willing to work together with Russia to achieve greater developments in bilateral ties,‖
Chinese Premier Wen Jiabao said on Tuesday. One way to foster cooperation is ―to create major
projects in crude oil, natural gas and nuclear power‖.
The nuclear powers also view each other with suspicion. Russia fears China's rise and is concerned
about the influx of Chinese traders to its sparsely populated east, while China is wary of Russia's
influence over the resource-rich Central Asian countries of the former Soviet Union.
Source: www.djreprints.com
HEALING U.S. LABOR MARKET WILL TAKE YEARS
The worst recession since the Great Depression has left a scorched landscape that will weigh on the
U.S. labor market and the broader economy for years to come, according to economists in the
latest Wall Street Journal forecasting survey. The 48 surveyed economists expect the economy to
bounce back from four quarters of contraction with 3.1% growth in gross domestic product at a
seasonally adjusted annual rate in the just-ended third quarter.
Expansion is seen continuing through the first half of 2010, though at a slower rate. But the massive
downturn means the labor market will take years to heal. On average, the economists don't expect
unemployment to fall below 6% until 2013. Some economists worry the economy will turn down
again over the next 12 months, leading to a so-called double-dip recession.
Source: The Wall Street Journal
HUMMER SALE MARKS FIRST CHINESE FORAY INTO U.S. AUTO MARKET
General Motors has signed a deal to sell its iconic-but-tarnished Hummer brand to an investment
partnership headed by an obscure Chinese machinery maker in an agreement that underscores the
fast rise and global ambition of the Chinese auto industry. The deal with China‘s Sichuan
Tengzhong Heavy Industrial Machinery caps a year-long struggle by GM to shed the SUV brand that
had become synonymous with gas-guzzling excess. It marks the first time that Chinese investors
have stepped in as buyers into the US auto industry.
The sale comes at a time when China has emerged as the world‘s largest auto market and GM
remains majority-owned by the US Government after being driven into bankruptcy. Such potential
deals highlight Chinese companies‘ global ambitions, but a question remains as to whether
companies like Tengzhong will be able to revitalize troubled auto brands, especially given their
executives‘ limited experience running global operations. GM will continue to manufacture the
vehicles until no later than 2012, when Tengzhong will take over production.
A person familiar with the deal said the Hummer business would be sold for about USD150 million,
far less than GM‘s early estimate that the Hummer could fetch more than USD500 million.
Tengzhong is buying 80% of Hummer, with local tycoon Li Yan purchasing the rest through Lumena
Resources Corp. The Sichuan-based company is one of the world's biggest producers of sodium
sulphate, a raw material used in detergents, glass and pharmaceutical products.
Read more…
The deal is China's biggest brand grab since Lenovo bought IBM's PC unit in 2005. Tengzhong still
needs approval from the Chinese Government, including the Ministry of Commerce, which industry
and Government officials say holds the ultimate authority over the deal.
Source: Reuters.com, Bloomberg.com
POLITICS
UNHAPPY WITH OT AGREEMENT, RUSSIA PLAYS THE DEBT CARD
The Russian media have reported the country‘s Finance Minister, Mr. Dmitry Pankin, as saying it
would have to seek the intercession of the Paris Club of Creditors if Mongolia does not take any
clear action on repaying its USD180 million debt soon. Significantly, Mr. Pankin‘s ―threat‖ came
almost immediately after the Oyu Tolgoi investment agreement was finally signed, putting to rest

11. all speculation about who will partner Mongolia in developing the world‘s largest copper-and-gold
deposit.
Miffed that the choice did not fall on a joint venture that would involve Russian Railways (RZD),
Moscow has started to apply political pressure on Mongolia. The game plan appears to be getting
RZD to partner Mongolia in its 34 percent stake in Oyu Tolgoi, to salvage some part of the missed
chances. Mongolia is liable to invest USD820 million in the project. ―Mongolia does not have this
money,‖ said a source at the RZD. Mongolian authorities plan to appeal for help to international
financial organizations, including the World Bank.
However, analysts do not think Mongolia will get the money, and that is strengthening Russia‘s
position. ―Ukraine, which has a GDP of USD340 billion, failed to get a USD1 billion loan,‖ said an
analyst at the Metropol Investment and Finance Corporation. ―Mongolia‘s GDP is only USD9.5 billion,
which means that the loan it must take out would equal 9 percent of its GDP. No bank would grant
such a loan in these times.‖
RZD hopes to come forward with its investment then to claim joint holding of that 34 percent. Until
that happens, Russia intends to keep the heat on. Mongolian Foreign Ministry sources would only say
that negotiations on the debt issue are continuing.
Read more…
There have also been reports that funding for new railways for mines may not be available. RIA
News Agency of Russia has cited an unidentified Russian official source as saying that the Russian
Government will decide on a request for USD1.5 billion for the construction of a railroad to link
Tavan Tolgoi ―only after Russia talks with Mongolia about the Oyu Tolgoi copper and gold reserves‖.
The Russian media also said sharing Oyu Tolgoi had been discussed with former president
N.Enkhbayar.
This is surprising as there has been no official talk on Oyu Tolgoi with Russia in the past six years.
Ivanhoe Mines held the Oyu Tolgoi exploration license and after the discovery of the mega-deposit
got it transferred into a mining license. For the last six years Ivanhoe Mines and the Mongolian
Government have discussed an agreement, but no other party was ever considered.
Russia is using its state-owned companies to establish control over domestic and foreign copper
reserves. The Udokan deposit of Russia is their Oyu Tolgoi, but the Metalinvest Group which owns
the deposit has big financial problems. It has a debt of USD5.9 billion and has asked the
Government to bail it out. It may take the company ten years to be in a position to invest in
developing the mine.
Source: Ardiin Erkh
MP TAKES OATH, 15 MONTHS AFTER ELECTION
Mr. S.Erdene, the DP leader elected from Bayangol in the June 2008 elections, finally took his oath
as Member of Parliament on Friday last week. He had been declared a ―provisional‖ winner but the
formal declaration took place only two weeks ago. In this one year he was jailed for electoral
malpractice and corruption and then acquitted of all charges, while the complainant was found
guilty of fraud. The General Election Committee submitted his name to the President who then
forwarded it to Parliament. On two occasions in the present Autumn session, the Speaker fixed a
time and date for his swearing in but the MPRP group blocked this. They insisted the judicial
process was not over as the Government had filed an appeal against Mr. Erdene‘s acquittal. The DP
group countered that this was a misrepresentation of facts, as the new case was not an appeal but
a fresh case which had no connection with the election and could thus have no bearing on his taking
his rightful seat in Parliament.
Finally, on Friday morning the leader of the MPRP group of MPs, Mr. N. Lundeejantsan, announced
that they did not wish to continue with their opposition and lose valuable time for Parliament. The
whole debate had been conducted with unusual acerbity. Even on the day before their change of
heart, MPRP members summoned the GEC chief N.Luvsanjav to Parliament to explain why and how
he had submitted Mr. Erdene‘s name to the President. Interior and Justice Minister Ts.Nyamdorj
spearheaded the bombardment by asking a barrage of questions all at once. He asked why the GEC
was ―so eager to bring Mr. Erdene to Parliament‖ and why it was ―causing division between the
parties‖. Wondering if the GEC was loyal to the State Constitution, the Minister said, ―Let‘s be
honest, as the President asked us to be after he was elected.‖
The DP had taken the stand that it was not for a political party to deny people the chance to have
their representative in Parliament, especially when the President and the Speaker both had

12. accepted the GEC‘s declaration of Mr. Erdene as winner. MP Z.Enkhbold had called it ―a gross
violation of democratic propriety not to honor the choice of citizens‖ and had asked the MPRP to
―realize that the days when their approval was needed for an MP to function have been over for 20
years‖.
Source: en.News.mn
BOTH PARTIES WORKING ON DISTRIBUTING REVENUES FROM MINERAL RESOURCES
Both party groups in Parliament are drafting laws on how to spend the income from mineral
resources. There are some differences in detail but in general there appears to be agreement on
how election promises made last year are to be fulfilled, with the signing of the Oyu Tolgoi
agreement expected to bring in money to the empty state coffers once again.
A fund will be set up to collect the moneys for the purpose, though the two parties want to call it
differently. The MPRP also wants the Prime Minister to head the board that will administer the
fund. This will be made up of 25 percent of the total income tax paid by all mining license holders,
and 50 percent of the fees received by the State from entities falling under Clause 5.1 of the
mining law. The entire amount received from the investors in Oyu Tolgoi as advance payment will
also be placed in the fund. The DP group estimates that MNT25 trillion should accumulate in it
between 2009 and 2054.
The benefits will come in the form of better education and health facilities, as apartment loans and
also in cash, but no more than one third of the money will be in cash. The Government will
announce the exact amounts only after ascertaining the profits from strategic mines. Both parties
want it to be clearly understood that there will be no lump sum cash payment of anything near
MNT1 million or MNT1.5 million. Long-term free access to benefits is the goal, not just a one-time
payment.
Source: Onoodor
NEW RELATIONS, CONCEPTS, TECHNOLOGY COME INTO USE
As Mongolia abandons its remoteness and as desolate wildernesses in the country reverberate with
the sounds of men at work and the noise of machinery and equipment in use, various new concepts
will increasingly feature in our public discourse and new terminologies connected to new events will
be entering our vocabulary. Joining the big league in the global mining sector means we have to
get familiar with different kinds of relations and concepts. We have to master mining economics,
with all its ramifications. Not just the theory behind it, but all its practical day-to-day applications,
too, will have to be clearly understood and practiced.
New technology will be in use, a sound banking system will have to manage the large amounts of
money circulating along the financial veins and branching out to sectors like investment, supply
chain, and human resources. We shall influence and be influenced by what the Development Bank
does, what the Law on Concession implies, what the Fund of Stability provides, and what the Law
on Budget Stability achieves. Mining production will be entering our lives in ways unknown to us
now.
Source: www.mongolianminingjournal.com
MONGOLIA 115TH
AMONG 182 NATIONS IN HUMAN DEVELOPMENT INDEX REPORT
The 2009 Human Development Index (HDI) report, covering the period up to 2007 and released last
week, placed Mongolia at 115th
among 182 countries listed. Mongolia‘s scores had improved since
the previous listing. The HDI is claimed as a standard means of measuring human development—a
concept, according to the United Nations Development Program (UNDP), that refers to the process
of widening the options of persons, giving them greater opportunities for education, health care,
income, and employment.
The index assesses:
 Life expectancy at birth, as an index of population health and longevity;
 Knowledge and education, as measured by the adult literacy rate (with two-thirds
weighting) and the combined primary, secondary, and tertiary gross enrollment ratio (with
one-third weighting);
 Standard of living, as measured by the natural logarithm of gross domestic product per
capita at purchasing power parity.

13. Norway tops the list, followed by Australia, with Canada at 4th
, Japan at 10th
, the USA at 13th
,
Germany at 22nd
, Singapore at 23rd
, China at 92nd
, and Vietnam at 116th
place. The index was
developed in 1990 by Pakistani economist Mahbub ul Haq and Indian economist Amartya Sen.
Source: hdr.undp.org
SHIPPING AGENCY FILES IN LONDON COURT AGAINST OWNER OF MONGOLIA-REGISTERED SHIP
Sea Trans Marine Private Ltd., a Kolkata-based shipping agency, has filed a case in an international
court in London against the owner and managers of the vessel Black Rose, which sunk in the Bay of
Bengal a month back. The agency has sought stern action against them for submitting fake
documents and not cooperating in retrieving oil from the vessel. The sunken vessel is said to have
had no valid documents. Even the insurance papers deposited by the owner of the vessel were
found to be fake.
The vessel was owned by Singapore-based Black Rose Maritime Limited and was managed by
PANCAR Shipping Limited, also based out of Singapore. It was registered in Mongolia and Sea Trans
was the agency which sent iron ore from India to China on the vessel. The agency claimed that it
had spent a great deal of money to trace the body of the Ukrainian chief engineer of the vessel who
died in the mishap and also in sending his body to his family in Ukraine. It is also bearing the
expenses pertaining to hotel accommodation and repatriation of the 26 rescued crew members of
the vessel.
Source: Business Standard, Kolkata
NO DECISION YET ON BUYING 4,000 APARTMENTS
The Government has not yet taken a decision on the proposal mooted in August to buy 4,000
apartments and then to sell them to Government employees against a mortgage. It is believed that
the Ministry of Finance and the Ministry of Road, Construction and City Development cannot agree
on the price to be paid for the apartments. The former feels one sq.m. should cost no more than
MNT700,000, while the latter is willing to go up to MNT805,000. The builders, naturally, do not wish
to lower their quoted price and want the Prime Minister to intervene.
Source: Onoodor
MONGOLIA HAS 5,000 PRISONERS
Minister for Internal Affairs Ts.Nyamdorj has said that following the release of 2,400 prisoners under
the amnesty law, Mongolian prisons now hold about 5,000 people. Work on a new prison in
Sonsgolon for 3,500 inmates was recently finished at a cost of MNT14 billion. The Gants Khudag
prison will also have a new building this year. Living conditions of prisoners will be much improved
now.
Source: Undesnii Shuudan
UN EXPERT ON EDUCATION IMPRESSED BY MONGOLIA‟S PERFORMANCE
Mongolia has made great strides towards providing universal education for its children, a United
Nations independent expert has said, praising the nation for emphasizing the need for young people
from both rural and urban areas to complete their education. Enrolment rates have reached over 93
per cent at the primary level and 95 per cent at the secondary level in ―such a vast territory with so
little population density‖, said Mr. Vernor Muñoz, Special Rapporteur on the right to education as
he last week wrapped up an eight-day visit to Mongolia last week, marking the first mission by an
independent expert on the right to schooling in the country.
Mongolia, Mr. Muñoz said, ―has shown innovation and creativity in order to provide education to
such diverse groups such as nomadic communities and ethnic minorities‖. He met with Government
officials, civil society groups, academics, students, parents and trade unions. He also witnessed
first-hand the state of education in kindergartens, primary and secondary schools in Ulaanbaatar, as
well as in the remote Khovd province.
Despite the current global economic crisis, the education budget has remained steady at around 20
per cent, but the rising population and inflation have made it difficult to provide quality education
to all children, the expert noted. The Government should consider the resultant ―lack of adequate
facilities‖ as also the situation of children with disabilities, since little is provided from them. He
noted that it was difficult to get reliable data on several indicators, such as school drop-out rates,
which was especially high in rural areas and among the Kazakh minorities. The vastness of the

14. country and the great distances should provide incentives to stimulate distance education as well as
access to the Internet in order to reduce the growing gap between rural and urban communities.
Source: Montsame
OYUN WANTS ALL SUITABLE COUNTRIES TO BE GIVEN A CHANCE
Mrs. S.Oyun, Member of Parliament and a former Foreign Minister, has expressed confidence that if
Mongolia goes by The National Security Concept as approved by Parliament in 1994, ―we shall not
become too dependent on any one country or on some few countries even‖, not only in
infrastructure development, but in any strategic sector.
Long political and economic dependence on one single country ―had a negative impact on many
areas of our national life‖, she said, adding that while trade with and investment from ―our eternal
neighbors will have to be equally balanced‖, Mongolia has to look beyond its immediate borders to
look for ―third neighbors‖. Relations with leading countries of the West and the East should not be
less friendly than they are with Russia and China.
The present ―international interest in our mineral resources‖ has created favorable conditions ―for
the implementation of our concepts and basic principles of economic security and foreign policy‖,
she said, adding that ―it is crucial now that we properly utilize our new opportunities‖. Her
prescription was that Mongolia should look at railways, energy, and other infrastructure areas ―as a
whole and try to get our two neighbors to equally participate in it‖, but ―to avoid becoming too
dependent on them, individually or together, we must also give other countries a chance to share in
developing this infrastructure‖. It is important, she said, ―to choose cooperation and participation
of companies, not on the basis of which country they are from, but taking into consideration which
of them offer the latest and also the most environment-friendly technology, and are most socially
responsible‖.
Source: www.mongolianminingjournal.com
ULAANBAATAR USES 4 MILLION TONS OF COAL A YEAR
A recent survey by the Mongolian University of Science and Technology reveals that 130,000
households in Ulaanbaatar use 0.53 million tons of coal and 237,200 cubic meters of wood every
year while the three heating stations need about 3.6 million tons of coal. The heating stations are
thus responsible for 70 percent of the total coal consumption and also account for 65 percent of the
carbon emission.
Source: Ardiin Erkh
PRESIDENT NAMES NEW FOREIGN POLICY ADVISOR
President Ts.Elbegdorj has appointed Mr. L.Purevsuren as his advisor on foreign policy, to succeed
Mr. Ts.Sukhbaatar who has been named Ambassador to China. Mr. Purevsuren graduated from
Moscow's State Institute of International Relations in 1989, majoring in Western European affairs.
He worked for the Ministry of Foreign Affairs and served as a translator in the Embassy of Germany
to Mongolia, and also as First Secretary at the Mongolian Embassy in Germany. Since 2000, he has
been First Secretary and Counselor in the European Department of the Ministry. Mr. Purevsuren
speaks English, German and Russian.
Source: Montsame
ANNOUNCEMENTS
BCM MINING SUPPLY CHAIN „SUPPLIER EXHIBITION‟ – Oct. 28, 10 AM-2PM, Khan Bank Theater
The Business Council of Mongolia (BCM) is arranging a Mining Supply Chain SUPPLIER EXHIBITION on
Wednesday, October 28, from 10 AM to 2 PM, at the Khan Bank Theater. Suppliers who are
registered in the BCM MSC Database are welcome to exhibit their products or services at no charge.
Please contact the BCM office at 332-345 to make arrangements for exhibit space. Mining company
buyers have free admission as well.
BCM has developed and completed a database consisting of national companies, manufacturers and
service providers to the mining sector. The Council has announced 1,153 companies are registered
in the Mining Supply Chain database. The database allows these 1,153 companies to expand their
businesses, attract investment from international and domestic sources, and promote themselves.

15. Check out the database at www.bcmongolia.org/mining supply.
_______________________________________
“MM TODAY” ON MNB-TV
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 9:15 PM tonight. Tune in to watch this program that reports stories from today‘s BCM
NewsWire.
SPONSORS
ECONOMIC INDICATORS
MSE WEEKLY REVIEW
For the week ended October 9, 2009, trading activity on the Mongolian Stock Exchange (MSE)
totaled 1,003,500 shares with 40 companies traded. Total market value of transactions was MNT
384.3 million. Total market capitalization of the 358 stock companies listed on the MSE was MNT
733.9 billion, and increased by MNT 10.1 billion or 1.4% from the previous week.
The Top-20 Index decreased by 103.44 points or 1.3 % compared to the previous week, closing at
7,833.69 points. The MSE Composite Index increased by 59.84 points or 1.6% compared to the
previous week, closing at 3,689.03 points.
Most active stocks traded were: Khuh gan (565.700 shares), Naco tulsh (109,000 shares), Genco tur
buro (80,600 shares), Moningbar (70,000 shares), and APU (53,800 shares).
Major share price percentage gainers were: APU (25%), Shivee ovoo (19%), Bukhug (15.4%),
Aduunchuluun (14.8%), and Mongol savkhi (14.3 %). Major share price percentage losers were:
Bishrelt industrial (14.8%), Spirt bal buram (13%), HB oil (10.7%), Baganuur (10.1%), and Auto impex
(7.4%).

16. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Sept. 30, 2009 *-2.9% [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]
CURRENCY RATES – October 15, 2009
Currency name Currency Rate
US dollars USD 1436.25
Euro EUR 2139.58
Japanese yen JPY 16.11
British pound GBP 2293.62
Hong Kong dollar HKD 185.32
Chinese yuan CNY 210.44
Russian ruble RUB 48.75
South Korean won KRW 1.23
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.