This document provides a summary of news from the Business Council of Mongolia for October 18, 2013. The main sections covered include Business, Economy, Politics, and Economic Indicators. For Business, some of the key stories summarized are that OT-Rio relations are improving as both sides work to resolve conflicts over financing at Oyu Tolgoi mine. Rio Tinto aims to continue developing underground mining at Oyu Tolgoi. Turquoise Hill has increased production at Oyu Tolgoi to full capacity. For Economy, highlights included Mongolia's coal exports declining and IMF cutting growth forecasts for Mongolia. The Politics section briefly mentioned several diplomatic visits and agreements.

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 296 – October 18, 2013
NEWS HIGHLIGHTS:
Business
 OT-Rio relations warm up, says OT board member;
 Rio Tinto plays the long game over Oyu Tolgoi;
 Rio resumes talks with government;
 Turquoise Hill brings Oyu Tolgoi production up to „nameplate‟ capacity;
 Marubeni, GDF Suez among final bidders for TT plant;
 Xanadu Mines assays broad copper, gold zones at Oyut Ulaan;
 Modun Resources signs MoU with GoM to sell coal briquettes;
 FRC signs MoU with Hong Kong securities commission;
 MIAT increases number of flights to HK;
 Skymedia hires Elemental for broadband content delivery system;
 Rating on Winsway cut to "SD" by S&P;
 Guildford Coal appoints new director;
 Football complex opens in UB;
 Mongolian movie, “Remote Control”, wins award at Busan Festival;
 Rio raises annual copper output target;
 Kyrgyz leader rejects calls to nationalize Centerra mine as riots persist.
Economy
 Exchange rate heads for MNT 1,700 again;
 Mongolia coal exports decline 20 percent by volume in first 9 months;
 IMF cuts growth forecasts for Mongolia in 2013, slashes forecasts for 2015, 2016;
 Mongolia affected by global financial turbulence, says ADB;
 ADB to fund China-Mongolia roads;
 Recreational spots to be constructed throughout UB along Tuul and Dund rivers;
 New uses for coal;
 Oil shale takes spotlight in energy independence aspirations;
 How Mongolia brought nomads TV and mobile phones;
 Mongolia's 'eco-Nazis' target foreign miners;
 Americans lead in Mongolian adoptions;
 Learning to cope with disaster;
 Research team discovers new evidence of ancient mass extinction in Mongolia.
Politics
 Ministry submits budget amendments;
 Prime Minister discusses possible budget cuts;
 British foreign secretary visits Mongolia;
 Canada's governor general to visit Mongolia;
 Turkey-Mongolia visa requirement lifted;
 A new milestone of Hungarian-Mongolian economic partnership;
 Mongolia joins anti-mercury convention;
 Mongolian domestic violence victim wins Asian Girl Rights Award;
 OSCE finds gender equality in Mongolia largely complies with standards;
 Pride on the steppe—being gay in Mongolia;

2.  Cyber-spies launch hack attacks on Mongolia;
 New UB memorial to commemorate famed Russian diplomat;
 Mongolian mettle;
 A tipping point for Mongolia's democracy?
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
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BUSINESS
OT-RIO RELATIONS WARM UP, SAYS OT BOARD MEMBER
Mongolia and its private sector partners have made headways brining back trust between each
other, said Oyu Tolgoi LLC board member Chuluuntseren Otgochuluu.
―The main achievement of this meeting was rebuilding the trust between the government of
Mongolia and Rio Tinto. Before the meeting, there were times that Rio Tinto and the government of
Mongolia were distrustful of each other,‖ said Otgochuluu upon his return from a trip to London to
meet with Rio Tinto officials. ―Then both parties replaced representatives in the discussion level.‖
Otgochuluu said the two parties were making progress in resolving conflicts over the USD 4 billion
financing package to fund an underground mine at Oyu Tolgoi as well as USD 1.4 billion greater
profits for Mongolia from a gold deposit licensed to Entree Gold LLC. He said the audit of Oyu Tolgoi
was ongoing, noting the immensity felt over the difference in costs to Mongolia.
―Mongolia's GDP [gross domestic product] is USD 10 billion, but Rio Tinto has USD 100 billion in

3. assets. So, USD 2 billion may not be a big issue for Rio Tinto, but it's a very big number for
Mongolia.‖
Source: BDSec
RIO PLAYS THE LONG GAME OVER OYU TOLGOI
A big increase in Rio Tinto PLC‘s copper output has underlined the high stakes it is playing for at a
flagship new mine in Mongolia, where the FTSE 100 miner is starting to reap the benefits of a USD 6
billion investment but has frozen further development amid disputes with the government.
Oyu Tolgoi produced 30,000 tons of copper concentrate in the third quarter. The output, along with
a speedy recovery from a landslide at Rio‘s Bingham Canyon mine in the US, helped push group
copper output up 23 percent in the third quarter compared with a year ago. Rio raised its
production forecasts for copper for the year and shares in the company rose 3.6 percent.
―The copper upgrades could have a carry-through effect to 2014,‖ said analysts at Morgan Stanley.
The underground part of Oyu Tolgoi will cost a further USD 5 to 6 billion and yield most of the
project‘s benefit. However, its development is on hold after disagreements between Rio and the
Mongolian government. Shipments from Oyu Tolgoi have gone no further than a Chinese bonded
warehouse because customers have not yet obtained approval from customs officials to collect the
concentrate. Rio can recognize revenues from Oyu Tolgoi only once copper leaves the warehouse.
Rio, which has Chinese state aluminum group Chinalco as its largest shareholder with more than 12
percent, indicated on Tuesday that the customs issue should be solved by the end of the year.
Analysts at Bernstein Research welcomed Rio‘s firm line. ―The historical precedent for both
developed and emerging countries‘ governments to demand an increased share of rents extracted
along with the minerals from their soil cannot be ignored. We believe that this is ultimately a self-
defeating strategy by host governments, but it is one with an impressively long pedigree,‖ they
said.
Source: Financial Times
RIO RESUMES TALKS WITH GOVERNMENT
Representatives of Rio Tinto PLC arrived in Ulaanbaatar on Monday to resume talks with the
Mongolian government.
The government is pushing Rio Tinto to continue developing underground mining shafts in the Oyu
Tolgoi mine, the construction of which was halted by the mining giant in August due to the
government's rejection of its financing proposal on the project. During the talks, both parties are
expected to discuss the project cost overruns, the updating of the feasibility study—a major source
of conflict—and most importantly, the project financing scheme proposed by Rio Tinto. The
Mongolian government claims that Rio, which is in charge of the copper-gold mining project, has
exceeded the cost limit initially approved by USD 2 billion.
Rio Tinto had been trying to get approval from the Mongolian government for its financing proposal
since last winter, but the government never offered a direct reply.
According to the proposal, Rio was to get a financing package worth 4 billion dollars from several
leading global banks, such as International Finance Corporation, European Bank for Reconstruction
and Development and Standard Chartered Bank.
Faced with deteriorating economic conditions and a shortage of hard currency, the Mongolian
government is now attempting to bring the global miner back to its investment in the country.
Earlier this October, three Mongolian board members of Oyu Tolgoi LLC, the joint venture between
Rio Tinto and the Mongolian government, visited the London headquarters of Rio Tinto for talks on
the disputed issues.
Otgochuluu Chuluuntseren, a board member of the joint venture and director general of strategic
policy and planning of the country's mining ministry, said the talks in Ulaanbaatar will continue until
December.
Source: Xinhua
TURQUOISE HILL BRINGS OYU TOLGOI PRODUCTION UP TO ‗NAMEPLATE‘ CAPACITY

4. Turquoise Hill Resources Ltd. on 14 October announced third quarter 2013 production at its massive
copper-gold-silver Oyu Tolgoi mine in Mongolia, broadly in line with expectations.
"During the third quarter, the Oyu Tolgoi concentrator continued to ramp up and is now operating
at nameplate-capacity of approximately 100,000 tons of ore processed per day,‖ said Kay Priestly,
chief executive of the Vancouver-based company. ―Concentrate shipments began early in the
quarter and Oyu Tolgoi's customers are making good progress with Chinese customs officials to
resolve matters with purchased concentrate at the border." She said, "Head grades improved in the
quarter with a lower proportion of stockpiled ore processed as open-pit mining activities ramped up
after being reduced in the second quarter to preserve cash. Given the mine and concentrator are
still early in development and operation, ore grades and recovery rates are expected to continue to
improve throughout the fourth quarter."
Turquoise Hill said it expects the USD 6.6 billion mine, which shipped its first copper in July, to
produce between 75,000 and 85,000 tons of copper in concentrates for 2013 and that shipments of
concentrate are expected to be aligned with production rates by the end of 2013.
Source: Mining.com
MARUBENI, GDF SUEZ AMONG FINAL BIDDERS FOR TT PLANT
Mongolia short-listed companies including Marubeni Corp. and Daewoo Engineering & Construction
Co. among the final bidders to build a USD 1 billion power plant in the Gobi Desert.
Kansai Electric Power Co. also made the short list, along with a joint bid made by GDF Suez (GSZ)
SA and POSCO Energy Corp, according to a statement on the website of the state-owned Tavan
Tolgoi Power Plant. It doesn‘t indicate when a winning bidder will be named. Coal miners operating
in the Tavan Tolgoi coal basin, which contains 6.4 billion tons of reserves, include state-owned
Erdenes Tavan Tolgoi LLC and Hong Kong-traded Mongolian Mining Corp. The Tavan Tolgoi Power
Plant will generate 450 megawatts of power, according to the company website.
Contractual agreements require Oyu Tolgoi LLC to use energy produced in Mongolia within four
years of commercial production, which began this year.
Source: Bloomberg
XANADU MINES ASSAYS BROAD COPPER, GOLD ZONES AT OYUT ULAAN
Xanadu Mines Ltd. has returned broad copper-gold from a trenching program at its Oyut Ulaan
copper-gold porphyry project in Mongolia. The 780-meter trenching program tested coincident
geophysical and geochemical anomalies at Oyut Ulaan. The program has defined three near-surface
mineralized porphyry centers with results up to 85 meters at 0.75 percent copper with 0.54 grams
per ton gold, including 36 meters at 1.49 percent copper and 1.02 grams per ton gold. The
trenching was performed concurrently with the recent drilling at the Diorite Hill prospect, and drill
testing of the new targets is scheduled within the next phase of drilling.
Source: Proactive Investors
MODUN RESOURCES SIGNS MOU WITH GOM TO SELL COAL BRIQUETTES
Modun Resources Ltd. has received a strong endorsement from the Mongolian government, signing a
memorandum of understanding to supply coal briquettes.
Under the terms of the memorandum, Modun is responsible for developing a coal mine and
constructing a coal briquette plant at its Nuurst project, subject to raising the appropriate finance.
Modun is also responsible for delivering the quantity of coal briquettes as detailed in the terms and
conditions of the off-take agreement currently under negotiation with the Mongolian government.
―The signing of the Memorandum is an important and final precursor to endorse the formal Off-take
Agreement for the supply of the coal briquettes to the Mongolian Government,‖ said Rick Dalton,
managing director for Modun. "The Memorandum clearly outlines the responsibilities of the
Government departments and ensures each parties‘ interests are aligned and focused on delivering
the project. The negotiations for the off-take agreement continue to progress well and have now
moved into the final stage of discussions.‖
The independent consultants appointed by Modun have completed the feasibility study required by

5. Mongolian law, subsequent to attaining the mining license. Modun is undertaking a final review of
the feasibility study with the consultants prior to submitting it to the Mineral Resources Authority of
Mongolia.
Source: Proactive Investors
FRC SIGNS MOU WITH HONG KONG SECURITIES COMMISSION
Hong Kong‘s Securities and Futures Commission (SFC) and the Financial Regulatory Commission of
Mongolia (FRC) on 11 October entered into a memorandum of understanding in Ulaanbaatar.
The memorandum—signed by the chairman of the SFC, Carlson Tong, and the chairman of the FRC,
Dashdondov Bayarsaikhan—establishes a framework for mutual assistance and facilitates the
exchange of information between the two regulators.
"This memorandum signifies the importance of close cooperation between the authorities and
exchange of information to assist each other. I firmly believe that the SFC and the FRC relationship
has been taken to a new level with this MoU which promotes shared interests and cooperation for
more effective financial regulation through knowledge sharing and benchmarking," Bayarsaikhan
said.
Source: Securities and Futures Commission - Hong Kong
MIAT INCREASES NUMBER OF FLIGHTS TO HK
Delegates from the Ministry of Road and Transportation signed an agreement that allows MIAT
Mongolian airlines to increase the number of flights traveling to Hong Kong from 8 to 11 a week.
MIAT is permitted transport passengers from India, Singapore and Australia and others through Hong
Kong. MIAT struck special arrangements with airlines from these countries and Hong Kong for
permission to run the routes.
Source: Undesnii Shuudan
SKYMEDIA HIRES ELEMENTAL FOR BROADBAND CONTENT DELIVERY SYSTEM
Mongolian broadband service provider Skymedia has selected Elemental Technologies for its video
processing systems to power over the top content and advanced television services nationwide.
Skymedia is using Elemental Live systems to process content for delivery over the operator‘s
broadband and mobile networks. Skymedia services make live linear and on-demand content
available to subscribers on iPhone, iPad and Android devices as well as personal computers and IP
set-top boxes. The Elemental deployment processes content for more than 80 channels.
―The encoding density, rich feature set, and unmatched ability to output content in multiple
formats make Elemental video processing systems vital to providing premium multi-screen services
to our customers,‖ said Gantogoo Zundui, chief technical officer of Skymedia.
Source: Broadband TV News
RATING ON WINSWAY CUT TO "SD" BY S&P
Standard & Poor's (S&P) Ratings Services said today that it had lowered its long-term corporate
credit rating on Winsway Coking Coal Holdings Ltd. to 'SD' (selective default) from 'CC'. At the same
time, the credit rating agency lowered the issue rating on the company's USD 500 million 8.5
percent senior unsecured notes due 2016 to 'D' from 'CC'. S&P also lowered its long-term Greater
China regional scale rating on Winsway to 'SD' and on the notes to 'D' from 'cnCC'. "We downgraded
Winsway after the company's announcement that it will complete the buyback offer of USD 153.6
million of its USD 500 million 8.5% senior unsecured notes due 2016," said S&P's credit analyst Huma
Shi. The company has received consent from note holders representing about 68.6 percent of the
total outstanding notes. S&P views such a buyback offer as a continuation of Winsway's tender
offer, and therefore a "distressed exchange," tantamount to an immediate default. Winsway will
buy back 31.27 percent of outstanding notes from note holders, paying USD 475 for every note of
USD 1,000 par value. For 2.08 percent of the outstanding notes, Winsway will pay note holders USD
375 for every USD 1,000.
"After completion of the buyback, we will reassess Winsway's credit profile, particularly the

6. company's liquidity position," said Shi. "We believe that under Winsway's distressed financial
situation, the company's access to bank credit may be uncertain."
Source: ETNet
GUILDFORD COAL APPOINTS NEW DIRECTOR
Guildford Coal Ltd. appointed Peter Kane as a non-executive director, as the firm moves forward
transitioning from explorer to producer and seller. Kane held chief executive officer roles at both
Boardwalk Resources and Aston Resources before being appointed chief operating officer for
projects with Whitehaven Coal following the merger of Whitehaven with Aston. Previously, Kane
spent three years as chief operating officer with Macarthur Coal, leading the company‘s mines and
project developments in Queensland, Australia. Prior to that, Kane spent 10 years with Leighton
(contractors) in various roles, including general manager of the Australian mining contractor
business. His earlier career included 10 years with BHP in their iron ore and coal divisions.
Separately, Michael WItherspoon has left his position as chief financial officer of Guildford Coal.
Mark Reynolds, currently project director for North Queensland, will be appointed to the role of
acting-chief financial officer while a search is undertaken for a permanent replacement. Reynolds is
a certified practicing accountant and a member of the Australia Society of CPA‘s.
Source: Guildford Coal Ltd.
FOOTBALL COMPLEX OPENS IN UB
Mongolia's Football Federation opened its mini-stadium with regular-sized football pitch on 13
October. Construction was part of the FIFA‘s Goal-V project in Mongolia. The project is now near its
end, with its last two steps of installing 5,000 seats and paving an artificial turf pitch. Leading
construction was the Netherlands‘ GreenFields BV and its Mongolian partner Deren Naran. At the
opening of the new sports facilities, FIFA wanted to run a ―Super Cup‖ match between the 2013
Ulaanbaatar champion Erchim and this year's "Borgio Cup" winner Hangarid.
Source: Montsame
MONGOLIAN MOVIE, ―REMOTE CONTROL‖, WINS AWARD AT BUSAN FESTIVAL
A film from Mongolia has won a USD 30,000 New Currents Award for emerging filmmakers at Asia's
largest film festival. Busan International Film Festival organizers said Saturday that the festival's
biggest prizes went to "Pascha" by South Korean director Ahn Seonkyoung and "Remote Control" by
Mongolia's Sakhya Byamba. It's the first time a Mongolian movie entered and won the competition in
the festival's 18 years. The awards, given to first- or second-time Asian directors, show the festival's
efforts to discover and support the region's new talents. The 10-day festival that ended Saturday
drew more than 200,000 visitors for the second straight year, even as a rare October typhoon forced
the organizers to reschedule some events and close outdoor booths by corporate sponsors four days
before the festival drew to a close.
Source: Associated Press
RIO RAISES ANNUAL COPPER OUTPUT TARGET
Rio Tinto PLC said it was recovering faster than anticipated from disruption at one of its largest
mines as the Anglo-Australian group reported better than expected production during the past three
months. Rio raised its expectations for its annual copper output from the Bingham Canyon mine in
Utah, where a massive pit wall slide this year buried equipment and brought operations to a halt.
The mine, Rio‘s only wholly owned copper project, has produced about one-third of the group‘s
copper output this year. The accelerated recovery at Bingham Canyon, along with the ramp-up of
Rio‘s flagship Oyu Tolgoi copper mine in Mongolia, helped Rio push copper output up 23 percent in
the third quarter compared with the same quarter of 2012, and by 11 percent compared with the
previous quarter this year, when Oyu Tolgoi first started to produce. Rio now expects to deliver
590,000 tons of copper from its mines by the end of the current financial year, up from the previous
forecast of 565,000 tons.
Source: Financial Times

7. KYRGYZ LEADER REJECTS CALLS TO NATIONALIZE CENTERRA MINE AS RIOTS PERSIST
Kyrgyzstan's President Almazbek Atambayev on Wednesday rejected opposition calls to nationalize
the country's flagship venture with Centerra Gold Inc., saying his opponents were using the dispute
with the Canadian investor to grab power.
The Kumtor mine is Kyrgyzstan's major foreign exchange earner and accounted for 12 percent of
2011 gross domestic product in the impoverished nation of 5.5 million which has seen two
presidents deposed by popular revolts since 2005. Persistent violent riots over ownership of the
mine flared up again this week, and Atambayev's government has passed its deadline to renegotiate
or cancel its agreements with Centerra, signed in 2009 under President Kurmanbek Bakiyev, who
fled after an uprising in April 2010.
Last month Atambayev's government and Centerra signed a memorandum of understanding, which
paves the way for Kyrgyzstan to swap its 32.7 percent stake for a 50 percent interest in a joint
venture that would own Kumtor, Centerra's core asset. The draft deal was met with opposition
demands to either boost Kyrgyzstan's share to at least two thirds, nationalize Kumtor or pass a no-
confidence vote in the government.
"Certainly, I would not want nationalization. It is fraught with many risks," Atambayev told
journalists. "One shouldn't use blackmail and threats of resignation to force the government to
make a wrong decision."
Presidential powers are limited compared with those in the four other Central Asian countries,
which are ruled by authoritarian leaders and whose parliaments' rubber stamp laws. On Tuesday,
police pushed protesters in the same region away from a motorway which they had blocked. In May,
Atambayev imposed a state of emergency on a district in Issyk Kul after protesters blocked a road
to Kumtor and cut off electricity supplies, temporarily halting production. He pledged on
Wednesday to use tough methods to crack down on any new protests: "You must use weapons when
a man is taken hostage and threatened with death. This is not a joke."
Source: Reuters
ECONOMY
EXCHANGE RATE HEADS FOR MNT 1,700 AGAIN
The tugrug exchange rate against the dollar is on another downward slide, depreciating since 9
October.
The tugrug was between MNT 1,693 and MNT 1,695 for three days compared with MNT 1,620 at the
end of September. The tugrug has continued its depreciation despite intervention by the Bank of
Mongolia. On 15 October the Mongol Bank sold USD 22 million and CHY 100.5 million as scheduled.
Some experts predict the dollar will continue its appreciation as the bank burns through its dollar
reserves.
Source: Undesnii Shuudan
MONGOLIA COAL EXPORTS DECLINE 20 PERCENT IBY VOLUME IN FIRST 9 MONTHS
Mongolia exported 11.38 million tons of coal in the first nine months compared with 14.29 million
tons a year earlier, according to the National Statistical Office.
The value of the coal exports fell to USD 783.94 million in the first nine months from USD 1.43
billion a year earlier, a drop of 45 percent, according to the agency. Coal is the nation‘s biggest
export.
Mongolia‘s copper concentrate exports rose to USD 679.6 million from USD 626.8 million a year
earlier. By volume, copper concentrate exports increased to 469,200 tons from 426,803 tons a year
earlier. That increase in copper shipments follows the start of commercial production at the Oyu
Tolgoi copper and gold mine in July. Mongolia‘s total exports fell to USD 3.09 billion for the first
nine months of this year compared to USD 3.23 a year earlier, according to the agency.
Total imports fell to USD 4.82 billion from USD 5.24 billion a year earlier. Mongolia‘s exports to

8. China, its biggest trading partner, totaled USD 2.66 billion in the first nine months, compared with
USD 3.01 billion a year earlier, according to the agency. By value, the second largest amount of
exports from Mongolia went to the United Kingdom, which purchased USD 154.4 million of goods in
the first nine months, compared with USD 8.4 million a year earlier
Mongolia exported USD 478 million of iron ore in the first nine months, compared to USD 382 million
a year earlier, according to the agency. By volume, Mongolia exported 4.68 million tons of iron ore
compared to 4.62 million tons a year earlier, according to the agency. Mongolia‘s gold exports rose
to USD 245.9 million in the first nine months from USD 70.6 million a year earlier. By volume,
Mongolia exported 6 tons of gold compared with 1.6 tons a year earlier, according to the agency.
Oil exports rose to 3.5 million barrels in the first nine months compared to 2.4 million barrels a year
earlier, according to the agency.
Source: Bloomberg, Cover Mongolia
IMF CUTS GROWTH FORECASTS FOR MONGOLIA IN 2013, SLASHES FORECASTS FOR 2015, 2016
The International Monetary Fund (IMF) has cut its 2013 growth forecast for the Mongolian economy
in the latest World Economic Outlook released on 7 October.
GDP is now expected to grow by 11.8 percent in 2013, revised down from the IMF‘s previous growth
forecast of 14 percent in April. Economic growth in 2014 is expected to be around 11.7 percent,
slightly higher than the 11.6 percent previously forecast. Of most concern, GDP growth forecasts for
2015 and 2016 have been slashed. The Mongolian economy is now expected to grow by a modest 5.8
percent in 2015, down from 7.6 percent forecast in April, while 2016 growth is expected to be only
3.6 percent, down from 9.5 percent forecast in April. Inflation is expected to be lower than
previously expected, but is still forecast to hover just below double digits. The Consumer Price
Index is forecast to grow by 9.7 percent in 2013 (down from 11.7 percent forecast in April), and is
expected to fall to around 7.5 percent next year.
―Mongolia is facing an uncertain external environment. Advanced economies are getting ready to
exit from the very supportive monetary policies implemented in recent years,‖ said IMF mission
head Geert Almekinders reinforced this message at the completion of a recent IMF mission to
Mongolia. ―China‘s economy is expected to re-balance away from a mostly investment-based growth
model toward a more consumption-based growth model. Both these factors are bound to have
major spillovers globally and especially in the region.‖ Mr. Alemekinders warned that based on this
assessment of the global situation, ―Mongolia needs to change course to avoid becoming highly
exposed to these external shocks and risks of crisis.‖
Emerging economies including Mongolia share five policy priorities, according to the IMF report.
Policymakers should allow exchange rates to respond to changing fundamentals but may need to
guard against risks of disorderly adjustment, including through intervention to smooth excessive
volatility. Where monetary policy frameworks are less credible, efforts may need to focus more on
providing a strong nominal anchor and reestablishing inflation targets.
Source: Economic Policy and Competitiveness Research Center
MONGOLIA AFFECTED BY GLOBAL FINANCIAL TURBULENCE, SAYS ADB
Softer than expected economic activity in China and India and concerns about the United States
quantitative easing program has destabilized emerging economy financial markets, including in
Mongolia, says a new Asian Development Bank (ADB) report.
"Shifting expectations on the timing of the scaling down of the U.S. Federal Reserve's quantitative
easing program sparked the recent exodus of foreign capital from emerging markets, including
India, Indonesia and Mongolia," said ADB Country Director for Mongolia Robert Schoellhammer.
In an update of its flagship publication, Asian Development Outlook 2013, ADB revised down its 2013
gross domestic product (GDP) growth forecast for the Asia-Pacific region to six per cent from 6.6
percent seen in April, as growth moderates in the region's two largest economies—China and India.
In China and India, according to the report, authorities are engineering a medium-term transition to
a more sustainable growth path than one led by exports and investment.
However, the region is in a comparatively strong position to cope with the slowdown, with many

9. economies running current account surpluses and holding large foreign reserve stockpiles. For 2014,
growth is now projected at 6.2 per cent from 6.7 percent in April. Meanwhile, resurgence in the
U.S. economy is expected to pick up in the coming months. Signs are also emerging that the euro
area is turning the corner, and Japan's economic growth is accelerating.
For Mongolia, growth is forecast to slow to 12 percent in 2013 and 13 percent in 2014, supported by
the modest recovery in the global economy and the start of commercial mining at the vast Oyu
Tolgoi copper and gold mine. The short- to medium-term prospects for the Mongolian economy are
subject to trends in China and the global economy, and expansionary fiscal policies historically
make it vulnerable to external shocks.
Source: Bernama
ADB TO FUND CHINA-MONGOLIA ROADS
The Asian Development Bank (ADB) is to provide financing worth USD 200 million for improvement
works to major highways and rural roads linking northern China with Russia and Mongolia.
The works will take place in Hulunbeier, one of the fast-growing areas in the Inner Mongolia
Autonomous Region of northern China. The current highway is narrow and in a poor condition, and
cannot support the movement of heavy trucks. Improvement works are much needed. The project
will also include road marking, signage and speed-controlled junctions to improve safety conditions
of the highway.
The loan will also upgrade and rehabilitate rural roads in Hulunbeier, and improve the cross-border
points to facilitate trade between China and Mongolia.
Source: International Construction
RECREATIONAL SPOTS TO BE CONSTRUCTED THROUGHOUT UB ALONG TUUL AND DUND RIVERS
Ulaanbaatar Mayor Erdene Bat-Uul has ordered the construction of alcohol-free recreational centers
along the Tuul and Dund rivers in Ulaanbaatar. The city plans to build a total of 18 recreational
areas throughout the city.
Source: Undesnii Shuudan
NEW USES FOR COAL
Looking to diversify its energy sources, Mongolia is stepping up efforts to expand the value-added
content of its coal industry through development of coal-to-liquids capacity, a move that could
reduce energy import costs and provide cleaner fuel. On 25 August, South Korean steelmaker POSCO
announced it had formed a joint partnership with Mongolia‘s MCS Group to develop a USD 2 billion
coal-to-liquids plant in Ulaanbaatar‘s Baganuur district. Under plans laid out by Won Kang-hee, the
head of POSCO‘s Mongolian division, the joint venture (named the Baganuur Energy Corporation)
would build and operate a plant to produce annually 450,000 tons of diesel and 100,000 tons of
dimethyl ether, a clean-burning propane-like gas.
―Once the coal-to-liquid plant is up and running, Mongolia will become a bridgehead for us to
expand toward the world in the new energy resource area,‖ he said. The need for Mongolia to
develop a domestic fuel industry is becoming increasingly pressing. The country imports around 1
million tons of diesel a year, a figure that will rise with industrial and transport demands set to
grow in the coming years. Oil consumption has been forecast to rise from 800,000 tons in 2012 to
3.5 million tons by 2020, and demand for oil derivatives is projected to climb at a similar rate. It is
estimated that Mongolia has at least 2.4 billion barrels worth of proven oil reserves, though it will
require a long time, and extensive investments, to exploit most of the identified deposits. With
diesel representing around 60 percent of Mongolia‘s fuel consumption, experts have suggested that
three or more coal-to-liquids plants, with a capacity equal to that planned by POSCO and MCS, will
be needed to meet the economy‘s requirements in the medium term. As global coal prices are far
less volatile than those for either oil or gas, the cost of the basic feedstock for such plants should
remain relatively steady.
Source: Oxford Business Group
OIL SHALE TAKES SPOTLIGHT IN ENERGY INDEPENDENCE ASPIRATIONS

10. Talk of new horizons for Mongolia‘s fuel independence and further prospects have risen in the
public and media with the recent discoveries of oil shale and its potential for fuel and energy.
There has been plenty of debate on the prospects of the use of oil shale while other energy and fuel
sources are still present, which are easier to exploit and more efficient than oil shale. Oil shale has
been widely used in countries with a scarce supply of petroleum, natural gas and other valuable
minerals, but since the fuel extracted from oil shale is low in quantity and quality alike, and the
cost of the refining process is high, there has been little use of it in countries with easier access to
more common fuel and energy sources.
The method for extracting fuel from shale has been put on hold for a long time by many countries
because the process is complicated and environmentally inefficient, requiring large amounts of
water and producing large amounts of waste, and it is not very economically fruitful. The Mongolian
Oil Shale Association said large deposits of shale stones and oil need to be identified as well as
exploration and extraction work in areas where licenses for other minerals are held.
―We started evaluating Mongolia‘s oil shale deposits after signing a joint survey agreement in 2012,
and are very pleased to continue that work under this new agreement. Our geological team has
located a world-class resource and will now identify the most advantageous areas for future
commercial development,‖ said Claude Pupkin, chief executive of Genie Energy in April after the
company signed a joint survey agreement in 2012. It hopes to start producing fuel from oil shale
within fifteen years.
But according to the Center for Biological Diversity, the development of oil shale (not to be
confused with shale oil) and tar sands have been environmentally destructive. Mongolia will have to
balance the pros and cons as it moves forward.
Source: UB Post
HOW MONGOLIA BROUGHT NOMADS TV AND MOBILE PHONES
Mongolia is changing very quickly. But Mongolia‘s leaders want to balance this by promoting rural
development and preserving ancestral traditions. That means improving the quality of life for
nomadic herders, including through electrification.
In 2000, the government started the National 100,000 Solar Ger Electrification Program, a campaign
to provide 100,000 nomadic herder families with portable solar power units. After a slow start,
sales of solar systems began to rise in 2002. By late 2004, about 30,000 units had been sold. Then
sales abruptly crashed.
One problem had to do with cash flow. Payments from herder customers were channeled into
general government accounts rather than the Solar Ger program itself, and this caused delays in
procuring the systems. A more significant problem, however, centered on the program‘s incentive
structure. The units hadn‘t caught on in part because village administrators, already busy with their
many other responsibilities, didn‘t market them aggressively.
A customer satisfaction survey in 2006 showed that after-sales service and support were the
herders‘ main complaint with the program. When systems needed repair, they usually needed to be
taken to Ulaanbaatar, the Mongolian capital. For many, that journey was prohibitively time-
consuming and expensive. Salvador Rivera, who coordinated the World Bank‘s participation in the
project, and his colleagues looked for answers from XacBank LLC, a microcredit institution that had
recently built a robust clientele in the countryside. XacBank had established branches in remote
Mongolian villages and acquired a tight network. Rural people could easily learn about the bank and
its services, ask questions, and understand how microcredit might work for them. Rivera wondered
if a similar model might work for the Solar Ger program.
Local solar centers were opened where training was provided in how to maintain and make basic
repairs to the systems. It also reinforced quality testing and introduced a limited warranty to build
herders‘ confidence in the technology. Almost as soon as the network of local centers was put in
place, the program began to succeed. By 2012, the project had sold more than 67,000 solar
systems, in addition to the 33,000 systems sold earlier by the government.
Source: Bloomberg
AMERICANS LEAD IN MONGOLIAN ADOPTIONS

11. Embassy data shows that U.S. citizens lead the world in the number of adoptions of Mongolian
children.
Over 400 children were adopted from Mongolia in recent years, according to preliminary data
gathered from embassies in Mongolia. This year embassies and consulates were obliged to guarantee
that the adopted children living in foreign countries were growing in safe and healthy condition.
The embassies and consulate of foreign countries are must submit information about child adoptions
to the Ministry of Human Development and Social Protection.
Source: News.mn
MONGOLIA'S 'ECO-NAZIS' TARGET FOREIGN MINERS
Mongolia's mining boom has brought the vast, sparsely populated country immense wealth but also
inequality and ecological damage, and now fringe ultranationalist environmentalist movements are
emerging in response.
"Here we want people with Mongolian hearts and Mongolian blood," says Boldbaatar Gombodorj, a
member of the Nazi group Tsagaan Khas. "Those who pollute the rivers and springs taint their
purity, and they should be punished by death," he adds, citing the revered Mongol warrior Chinggis
Khaan, whose portrait adorns the walls.
Gombodorj says the swastika is an ancient Mongol symbol and that his group, Fight for the Security
of Mongolia, does not support fascism. But other campaigners openly identify themselves as neo-
Nazis and reference the Third Reich. When Gombodorj joined the army he knelt on the ground, held
a Mongolian flag to his forehead and "swore to defend every inch of our land. And now it is being
sold into the hands of foreigners", he says. He is ready to embrace violence for his cause, he adds. A
few weeks ago his group ended up in a tense standoff with armed guards at a South Korean-owned
mine.
Mongolia's best-known eco-warrior, Tsetsegee Munkhbayar, of Fire Nation, won the US-based
Goldman Environmental Prize in 2007 for his work in shutting mines near the Ongi river, one of the
country's largest. But he has also spent time in jail and his group has resorted to force—firing at
equipment at a mine in the southern province of Uvurkhangai, and shooting arrows at a government
building when leaders refused to meet them.
"These are necessary methods when other means have proved unsuccessful," Munkhbayar insists.
"Over the past 20 years, more than 4,000 water sources have been identified as drying up and 1,300
have disappeared.‖ He said, "The main reason is mining activity. When we go into the countryside,
we are welcomed like saviors."
Source: AFP
LEARNING TO COPE WITH DISASTER
After a natural disaster wiped out most of his herd in 2010, N. Odkhvu had no choice but abandon
his decades-long livelihood and become a construction worker. "If possible, I wish I can become a
herder once more," he said longingly.
Nomadic pastoralists account for one-third of Mongolia's population. Odkhvu, 50, used to rank
among them, raising his freely roaming animals on a vast and open expanse of grassland. The
income was good enough for him and his wife to send their daughter to a university. But that was
before a dzud hit in 2010, a natural phenomenon arising from a summer drought that brings snow
blizzards combined with arctic cold resulting in insufficient grazing pastures. A dzud often leads to
the starvation and death of livestock on a massive scale.
"Mongolian herders' lives depend very much on the animals they have raised. They won't leave a
place if their animals can't go with them," said Supaporn Last, director of World Society for the
Protection of Animals (WSPA) Thailand.
In March 2010, WSPA and the Cambridge Mongolian Development Appeal tried to help the herders
by providing 130 tons of concentrated fodder, 20 tons of smashed wheat and veterinary drugs and
multivitamins for free. A team from WSPA, accompanied by reporters, recently checked on the
Mongolian herders current and former to see how they had fared three years after the serious
natural disaster. Yet, despite the help, nearly half of his 700 animals died in 2010.

12. Aware of livestock's importance to Mongolians, WSPA is trying to support herders there in saving
their animals and protecting their livelihoods. WSPA is also active in helping people engaged in
livestock raising. Next month, it will sign an agreement with several Thai organizations including
the Livestock Development Department and the Veterinary Practitioner Association of Thailand to
draw up a disaster response plan for the rescue of animals and their owners. WPSA pointed out that
when the big flood hit Thailand in 2011, efforts by various organizations were made but they were
not well coordinated.
"When a disaster strikes and animals are affected, these vets will be ready to respond," she added.
Source: World Bulletin
RESEARCH TEAM DISCOVERS NEW EVIDENCE OF ANCIENT MASS EXTINCTION IN MONGOLIA
Researchers have found evidence for catastrophic oceanographic events associated with climate
change and a mass extinction 375 million years ago that devastated tropical marine ecosystems.
―The Late Devonian mass extinction was one of the five largest mass extinction events in the history
of life,‖ said Professor Johnny Waters, who is a co-leader of the five-year, U.N. International
Geoscience Program project that began in 2011.
The find was discovered by members of a U.N.-sponsored research team with members from
Appalachian State University‘s Department of Geology. The research team is examining the
relationship between climate change and changes in the ecosystems in the Devonian period, from
419 to 359 million years ago.
―This is the third most significant mass extinction and it was caused by plants,‖ Waters said.
―Unlike the dinosaur mass extinction, which was related to an asteroid impact, this one was
environmentally related.‖
Most of the knowledge that geologists have about this mass extinction comes from North America
and Europe. Although these two land masses are far apart now, in the Devonian they were very
close to each other. Scientists have tried to make inferences about worldwide events based on
sample locations that are really quite limited in terms of their geographic history, or
paleogeography. Waters‘ international team of geoscientists has conducted field work in remote
areas of western China for many years, in addition to two recent field seasons in western Mongolia
near the Russian and Chinese borders. Answers about the earth‘s climate during and after this mass
extinction are contained within rock samples from these new field sites, which were once part of
the ocean floor.
―We now have evidence that the radiation of surviving life following the mass extinction was
centered in Central Asia,‖ Waters said.
Waters and Carmichael will present the preliminary results of their research at the Geological
Society of America‘s Annual Meeting in Denver in October and at the American Geophysical Union‘s
annual meeting in San Francisco in December. Next summer, Waters will lead a 20-member team,
including Dr. Sarah Carmichael and two students from Appalachian‘s Department of Geology, for
continued field work in Mongolia.
Source: Appalachian State University
POLITICS
MINISTRY SUBMITS BUDGET AMENDMENTS
Economic Development Minister N. Batbayar Thursday submitted to Parliament Deputy Speaker R.
Gonchigdorj four proposed amendments for budgetary spending.
The amendments are to the 2013 budget, the Social Insurance Fund, Human Development Fund, and
to a special fund for government. The amendment to the 2013 budget has become imminent due to
a widening budget deficit that has been estimated at MNT 1.5 trillion. That figure is expected to
surpass 3 percent of GDP by the end of 2013, which would be in violation of the Fiscal Stability Law.
Source: Montsame
PRIME MINISTER DISCUSSES POSSIBLE BUDGET CUTS

13. The prime minister made a number of recommendations to ensure next year's budget is in line with
the Fiscal Sustainability Law.
This year's budget includes MNT 200 million for salary increases, welfare and pensions, as well as
higher stipends for students attending vocational schools. Budget allotments to secondary schools
are set to increase by MNT 34 billion, as well as the health sector by MNT 44 billion.
Budgets from the last 20 years had failed to present realistic expectations, said Prime Minister
Norov Altankhuyag. The same is true for this year's budget, which he said would soon need budget
cuts. He said certain programs should not be considered for budget cuts, however, are the MNT
20,000 monthly allowances for children. He also recommended that MNT 43 billion from the 3,000
jobs the budget would created.
He also noted his wariness for requests for greater budgets for projects, such as a fire station in
Gachuurt soum that is requesting MNT 2.8 billion compared with an original estimate of MNT 916
million. Requests for additional funds, said Altankhuyag, have totaled MNT 272 billion.
Source: Undesnii Shuudan
BRITISH FOREIGN SECRETARY VISITS MONGOLIA
British Foreign Secretary William Hague paid official visit to Mongolia on 15 October in concordance
with the celebration of 50 years of diplomatic relations between the United Kingdom and Mongolia.
During a press conference the Minister of Foreign Affairs Luvsanvandan Bold and Foreign Secretary
Hague emphasized the key formal discussions between the two countries and exchanged views on
bilateral relations and international affairs during the visit. Mongolia expressed its willingness to
boost cooperation with the United Kingdom in key sectors such as mining, global financial relations
and infrastructure and to pursue policies to support each other in the international arena. Minister
Bold voiced his agreement with Hague‘s platform for international action against mass rape in
conflicts.
Other key issues resolved during the visit were the signing of a memorandum of understanding on
the Chevening Scholarship partnership between the Mongolian Ministry of Education and Science
and the British Foreign and Commonwealth Affairs and a memorandum of understanding with the
British IM Power to build a power plant based on the Shivee Ovoo coal mine in Mongolia.
Hague‘s visit comes 17 years since British Secretary of State for Foreign and Commonwealth Affairs
Malcolm Rifkind visited Mongolia in 1996.
Source: News.mn
CANADA'S GOVERNOR GENERAL TO VISIT MONGOLIA
The governor general of Canada will conduct a state visit to Mongolia on 24 October, following a
visit to China from 16 to 24 October.
"Our visit to Mongolia comes at a time of great opportunity, as this year marks 40 years of enduring
diplomatic relations between our two countries," said Governor General David Johnston. "As the
first Canadian governor general to visit Mongolia, I will have the opportunity to strengthen our
people-to-people ties and discuss mutually beneficial initiatives in a wide range of fields, such as
commerce, governance and education."
The Canadian officials will meet and with other government officials. The governor general will
deliver an address before Parliament to acknowledge the 40th anniversary of Canada-Mongolia
diplomatic relations as an important milestone in the evolving and strengthening relationship
between both countries. He will also promote Canada's investment interests and commercial
collaboration at both a business networking breakfast with Canadian business leaders and during an
education round table with Canadian institutions and Mongolian stakeholders, ahead of the first-
ever Canadian Education Fair in Mongolia.
To conclude the visit, the Canadian officials will meet with women parliamentarians who are taking
on a stronger leadership role in Mongolia. The Department of Foreign Affairs, Trade and
Development of Canada is supporting this goal through an initiative that provides technical
expertise to increase the effectiveness and visibility of women in Parliament.
Source: Governor General of Canada

14. TURKEY-MONGOLIA VISA REQUIREMENT LIFTED
An agreement was signed on Friday over the 30-day visa upon entry travel in Mongolia for Turkish
citizens, said Chairman of Mongolian Parliament Zandaakhuu Enkhbold.
"It will be a significant step to encourage tourism," Enkhbold said during his visit in Cappadocia, a
historical region in Central Anatolia, in Nevsehir province of Turkey. Stating that he believed
tourism activities between the two countries would improve, Enkhbold noted the numerous
historical artifacts that the both countries had common to both cultures.
As part of his official visit in Turkey, the Mongolian leader also met his Turkish counterpart Cemil
Cicek on Thursday.
Source: World Bulletin
A NEW MILESTONE OF HUNGARIAN-MONGOLIAN ECONOMIC PARTNERSHIP
The Hungarian-Mongolian Business Forum was held on 8 October in Budapest.
The business forum was held after the fourth annual meeting of the Hungarian-Mongolian Joint
Committee on Economic Cooperation (JCEC). Speeches were delivered by notable figures such as
Minister for Green Development and Environment Sanjaasuren Oyun and General Director of the
National Bank of Hungary Roza Nagy. The speakers presented the achievements of the Budapest
session of the Hungarian-Mongolian Joint Committee on Economic Cooperation, emphasizing the
numerous options available for improving bilateral economic relations. Representatives of the
Hungarian Chamber of Commerce and Industry, the Budapest Chamber of Commerce and Industry as
well as those of the National Chamber of Agriculture signed cooperation agreements along with the
representatives of the Mongolian National Chamber of Commerce and Industry.
After the business forum, the Hungarian-Mongolian arm of the Hungarian Chamber of Commerce and
Trade was established with the main aim of expanding business relations.
The event was organized by the Hungarian Chamber of Commerce and Industry and the Mongolian
National Chamber of Commerce and Industry, which was also supported by Hungary‘s Ministry for
National Economy.
Source: Ministry for National Economy of Hungary
MONGOLIA JOINS ANTI-MERCURY CONVENTION
Mongolia joined the Minamata Convention on Mercury at the Conference of Plenipotentiaries in
Minamata and Kumamoto, Japan from 10 to 11 October.
Not including Mongolia, the conference brought together 1,000 delegates from 139 countries,
international organizations, non-government organizations and professional unions. During the
conference, 139 countries adopted the convention with signatures from 93 countries. Mongolia was
represented by S. Khurelbaatar, ambassador to Japan, and L. Jargalsaikhan, secretary of the
National Council of Policy and Regulation on Chemical and Poisonous Substances.
The Minamata Convention is a global treaty to protect human health and the environment from the
adverse effects of mercury. Major highlights from this year included a ban on new mercury mines,
the phase-out of existing ones, controlling measures on air emissions, and the international
regulation of informal artisanal and small-scale gold mining.
Source: Montsame
MONGOLIAN DOMESTIC VIOLENCE VICTIM WINS ASIAN GIRL RIGHTS AWARD
An 18-year-old Mongolian girl was selected as the winner of the first Asian Girl Rights Award at an
event established by the Garden of Hope Foundation to celebrate Taiwan's first Girls' Day.
Tserenbaljir Mandakh is the coordinator of a young mother's club at the Princess Center in Mongolia,
who helps teenagers in her country face tough challenges such as marriage at a very young age,
pregnancy out of wedlock, and sexual violence and discrimination, the foundation said. The
Princess Center for the Protection of Girls and Young Women's Rights is a facility that supports
vulnerable young women and girls, with an emphasis on social work services for teenage mothers,
pregnant girls, victims of sexual abuse and adolescent girls and boys.

15. Tserenbaljir found herself pregnant at the age of 16. At the time, her parents couldn't forgive her
for bringing the shame of unmarried pregnancy into their home. Moreover, she was a victim of
domestic violence exercised by her boyfriend—the father of her child—according to the foundation.
Unwilling to yield, the Mongolian girl cut off her relations with her child's father with the assistance
of social workers. After learning how to stand on her own, she began to help other young mothers
suffering from problems similar to the ones she had, the foundation said.
At the award presentation ceremony in Taipei, Tserenbaljir said that in her country, many girls dare
not ask for help when they find themselves pregnant. She added that she believes such girls can
make wise choices as long as they have access to information and knowledge. She also said she will
encourage more girls in such dire circumstances to write to the government and urge it to provide
them with protection and assistance.
Source: Focus Taiwan
OSCE FINDS GENDER EQUALITY IN MONGOLIA LARGELY COMPLIES WITH STANDARDS
Mongolia‘s law on promoting gender equality largely complies with international human rights
standards and Organization for Security and Co-operation in Europe (OSCE) commitments, but
certain aspects of the legislation could benefit from further clarification and review, concludes a
legal opinion prepared by the OSCE Office for Democratic Institutions and Human Rights (ODIHR).
The opinion, published on 8 October, is the first review ODIHR has carried out of Mongolia‘s
legislation since the country became the OSCE‘s 57th participating State in November 2012. The
opinion was prepared in response to a request from the National Human Rights Commission of
Mongolia. The opinion notes positively that the wide scope of the law covers public and private
spheres and the special measures introduced by the legislation to foster gender balance in many
aspects of daily life. Detailed provisions aimed at guaranteeing gender equality in employment and
labor relations, education and culture, and health care were also viewed as positive.
At the same time, the opinion recommends clarifying certain articles of the law, including the
definition of sexual harassment. It adds that the system of varying gender quotas in different parts
and levels of the public sector should be re-considered to ensure that gender equality is promoted
at all levels of public administration.
Source: OSCE
PRIDE ON THE STEPPE—BEING GAY IN MONGOLIA
While the world‘s eye has turned on Russia‘s recent attacks on Lesbian, Gay, Bi-sexual, and
Transgendered (LGBT) rights, its neighbor and former Soviet satellite state Mongolia just celebrated
its first Pride Week. However, there is a still a long way to go before LGBT Mongolians can live open
lives.
Although homosexual sex is not illegal, LGBT Mongolians still live in grave fear of revealing their
identity. Many say without the support of the LGBT Centre acceptance of LGBT people in Mongolia
would be much worse. Australian Robyn Garner arrived in Mongolia in January 2004 to work in
development and ended up staying seven years, working tirelessly with the LGBT community. She
made contact with a website called Mongol Dyke and got in touch with site owner Anaraa Nyamdorj
to help build up the community.
Nyamdorj and Garner started documenting human rights abuses and, despite facing strong
resistance, the pair founded the LGBT Centre in February 2007. Official registration of the NGO was
made in November 2009, and was only accomplished after organizers reached out to the Mongolian
president‘s advisor on human rights and civil participation. The timing of the registration coincided
with the United Nation‘s Universal Periodic Review (UPR) process. The newly formed LGBT Centre
then set about working solidly to include LGBT issues in UPR report.
―It‘s no doubt the UPR was a turning point for us because it gave a leg in with the rest of civil
society and for the first time it enabled us to integrate LGBT human rights in the mainstream
human rights agenda,‖ Garner said.
Last week saw the first Pride Week ever to take place in Mongolia. The week focused on, among
other things, addressing hate crimes committed against LGBT people and calling for amendments to

16. be made to the criminal code to include a definition of hate crimes against LGBT people. The
event—which featured a three-day film festival, multimedia exhibitions and sexual health
workshops—mostly aimed to draw attention to the community which for the rest of the year
remains a hidden one.
Source: Star Observer
NEW UB MEMORIAL TO COMMEMORATE FAMED RUSSIAN DIPLOMAT
The Ulaanbaatar city council has approved the installation of a monument commemorating well-
known Russian diplomat of the Russian empire Ivan Yakovlevich Korostovets.
Plans are to erect the monument in Bayanzurkh District in the area owned by Russian Center of
Science and Culture in Ulaanbaatar. The six-meter-tall statue will be financed from the Ministry of
Culture, Sport and Tourism for a cost of MNT 85 million. Korostovets (1862-1933) was specialized in
oriental studies and ambassador for the Russian Empire. He co-signed the first Russian-Mongolian
agreement in Urguu, the capital of Mongolia prior to the founding of Ulaanbaatar, on November 3,
1912. The document declared Mongolia's independence in 1911, and is the first instance of Russia
recognizing the autonomy of Outer Mongolia.
Source: Info Mongolia
CYBER-SPIES LAUNCH HACK ATTACKS ON MONGOLIA
Cyber-spies are targeting Mongolian businesses and government agencies to keep the attackers
"aware" of the land-locked country's relationships with "Western influences" like the United States
and the European Union, according to a recent report.
Cyber Squared‘s ThreatConnect Intelligence Research Team (TCIRT) blames a "state-sponsored"
Chinese hacking group for the campaign, which it says shows evidence of offensive tactics against
Mongolian targets which are very similar to those long applied against Tibetan and ‪Uyghur
‪nationalists and affiliated groups. The custom malware used in the anti-Mongolian campaigns shares
the same functionality of malware used by an unidentified Chinese cyber-warfare unit that has been
dubbed ―Comment Crew‖ or ―APT1‖, Cyber Squared reports.
"TCIRT has identified a series of targeted cyber attacks that have been directed against Mongolian
and allied networks by several Chinese Computer Network Exploitation (CNE) groups," the cyber
intelligence agency explains. It added it found numerous examples of ―Chinese exploitation against
economic, military and diplomatic targets within Mongolia and Mongolian partners.‖
Booby-trapped documents associated with the attack include an announcement for a joint United
States-Mongolia military exercise called Khaan Quest 2014. Retrospective research by Cyber
Squared identified additional decoy documents, written in Mongolian, themed around events such
as the June 2013 Mongolian presidential election.
Cyber Squared reckons that attempts to hack Mongolian government and business computers are
being motivated by "Mongolia‘s attempt to steer a more independent path by reaching out to what
it calls 'third neighbors' such as the United States, Japan, South Korea, and the European Union."
The malware-fueled hacking campaign would "help China maintain awareness of changes in
Mongolian relations with the US and other Western influences and protect their national interests in
Mongolia", thus helping to give the Chinese government the edge in relations with its northern
neighbor.
Source: The Register
MONGOLIAN METTLE
A new foreign investment law in Mongolia has caused quite an international stir.
After months of deliberation, Parliament passed a law that effectively repeals earlier legislation
that discriminated against foreign investors. The hastily drafted existing law, and the resulting
regulatory uncertainty, had threatened to put an end to one of Asia‘s most impressive growth
stories. The new rules, which go live next month, seem to put the country back on track. That is a
welcome development for Mongolia, a country that is ideally located for international investors who
believe in Asian prosperity. Its neighbors, Russia and China, each have multi-trillion-dollar

17. economies, making its already enviable mineral and metal reserves that much more valuable.
Keeping outside investors away from assets that need foreign capital, technology and demand to
grow was always a non-starter.
But this law is no quick fix. That may be tough news to swallow for investors in a country that
watched its fortunes change so quickly and drastically in the last few years. Indeed, many foreign
investors only started to take the country seriously when the Mongolian Stock Exchange‘s Top-20
Index rose more than 400 percent from January 2010 to February 2011. But like the country‘s 17.5
percent GDP growth in 2011—up 11 points on the year—such impressive returns have hardly been
sustainable.
Investors are missing the point if they only focus on the mining industry as a barometer for
economic progress. The country needs to develop a stronger banking industry and capital markets
to move ahead. Of course, the new law encompasses those two financial sectors, but the challenge
now is to get the international markets to notice them. Mining may have brought foreign capital to
Mongolia. A stronger banking infrastructure just might help keep it there.
Source: IFR Asia
A TIPPING POINT FOR MONGOLIA'S DEMOCRACY?
Sandwiched between the giants of Russia and China, Mongolia is looking to develop its vast mineral
wealth. How will this affect one of the most stable democracies in the region, and what will happen
to the benefits of development?
The only nation of its region to be ranked as ―Free‖ in Freedom House‘s ―Freedom in the World
2013 Index,‖ Mongolia never fell in the autocratic trap the way Kyrgyzstan and Turkmenistan did
and its geostrategic position between two nuclear powers has not posed a real threat in the last two
decades. On the other hand, its vast territory is home for less than three million inhabitants, half of
which live in the capital Ulan Bator, while the other half continue living as steppe nomads.
The development of mining projects like Oyu Tolgoi would lead one to think that the economic
future of this country can be deemed if not bright, at least hopeful. Classically, one would be lead
to think that the cash flows arising from Oyu Tolgoi would be reinvested in developing Mongolia's
infrastructure in order to diversify production while using the foreign direct investment and the
reduction of unemployment suggest that the mine could contribute to the growth of per capita
income
So, will everything be OK? Not really. Concerns about the development of the nation may in fact lie
in its own peculiar topographic arrangement. Apart from the capital city, no other urban settlement
exceeds 90,000 settlers. This, combined with the large distances between one place and the next,
creates a layout that discourages investments in mobility or transport infrastructures.
The minerals market is, in fact, a sector prone to the volatility. The investments and their
performance are heavily influenced by international prices, which could change at any time. In this
context, manufacturing and agriculture, already weak and affected by the exodus of labor and
capital towards the mining sector, cannot act as a shock absorber, and in the worst cases, the
country is bound to experience problems of stagnation. Mongolia will therefore soon face a dilemma
in terms of economic and social growth.
Source: Morun Express
ANNOUNCEMENTS
SMES: ―BUILD YOUR COMPETITIVE EDGE‖ - TRAINING, 22-23 OCTOBER, UB
The Quality Supplier Development Center (QSDC) invites small and medium enterprise owners and
managers to the ―Build your competitive edge‖ training program to learn how QSDC can assist with
building competitive edge through the Technical Assistance Fund on 22 and 23 October.
Participants may review and evaluate their current existing business model, vision and mission, and
strategy to take their companies to the next level and find gaps for improvement. Develop branding
and marketing strategy, product and service designs. Learn how QSDC can assist businesses to build

18. competitiveness and what opportunities are available. Training topics: The Mentality and Practice
of Branding, The Science of Winning the Market, build company‘s competitive edge to enter broader
domestic and international markets.
Register online before 18th by emailing qsdc@bpi-chemonics.biz or dolgorsuren@bpi-chemonics.biz.
The training fee is MNT 150,000. For more information call (976-11) 32 13 75 or Fax: (976-11) 32 78
25.
__________________________________________
CONSTRUCTION MONGOLIA 2013 INTERNATIONAL CONFERENCE AND EXPO, 18-20 OCTOBER, UB
Construction Mongolia 2013 International Conference and Expo is being held from 18 to 20 October
at the Parliament House and Buyant-Ukhaa Sports Palace in Ulaanbaatar.
More than 100 companies and delegates from 12 countries including exhibitors from domestic and
foreign companies will display a wide range of technology, supplies and services for the
construction sector. Inside and outside displays, providing a first opportunity for buyers to see
technology and learn about new construction technology and service from industry experts.
Both domestic and international investors are sought for the current and future projects being
implemented in the construction sector, to present most innovative and environmentally friendly
technologies, to exchange views, and to develop cooperation with foreign firms and businesses
during this event.
As an event organized by the Mongolian government, visitors can discuss current and future
opportunities of the Mongolian construction sector, market their organizations, and network with
the industry‘s main players.
BCM members will be provided 5 percent discount. BCM is a supporting organization. Register at
www.constructionmongolia.mn or for priority booking email info@constructionmongolia.mn.
___________________________________________
STUDYING IN THE UK: HOW TO APPLY FOR CHEVENING SCHOLARSHIP, 28 OCTOBER, UB
The UK Alumni Association in Mongolia (UK Aim) will host a lecture to support individuals applying
for a post graduate degree in Britain on Monday, 28 October from 5 to 7 p.m. at the National
University of Mongolia.
The UK and Chevening alumni will share their experiences in living and studying in Britain and
obtaining funding opportunities. Representatives from the British Embassy in Ulaanbaatar will
provide information about the Chevening scholarship requirements, eligibility, selection process and
general student visa guidelines.
The event will be held at the Circle Hall, 1st Building of the National University of Mongolia. The
event is free of charge.
___________________________________________
LESS THAN 2 WEEKS LEFT UNTIL MONGOLIAN MINING SUMMIT 2013, 30-31 OCTOBER, PERTH
Secure your attendance at the most action-oriented program that will help you learn from Senior
Mining Executives involved in furthering Australia and Mongolia's business relationships in the
resource sector! Registration is available via the following ways:
Already attending organizations include: AECOM Australia, Anglo American, Ernst & Young, Golomt
Bank, Macmahon Holdings, Oyu Tolgoi, Project Mining, Bechtel Australia, Austrade, Mongolian
Mining Corporation, Guildford Coal and more! Book your ticket here.
BCM is a supporting organization for this conference. Register online or email
registration@iqpc.com.au
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ONLY 4 WEEKS LEFT UNTIL MONGOLIA INVESTMENT SUMMIT, 19-20 NOVEMBER, HONG KONG
Since opening up the registration for the fourth annual Mongolia Investment Summit 2013 in Hong
Kong from 19 to 20 November, organizers have received an overwhelming response from investors.
With the new Investment Law being passed by the Mongolian Parliament last week, we expect the

19. investor interest for the Summit to pick up even more.
Meet with up to 500 senior level delegates at the Summit and set up one-on-one meetings with
investors and potential business partners all in one place. Mongolia Investment Summit is the only
Mongolian investment event taking place in Hong Kong, the financial deal-making hub of Asia. All
registered delegates will have exclusive access to our advanced Mongolia Invest Online Meeting
Planner which will allow you to see who‘s coming and let you pre-arrange meetings with the other
attendees to make the best use of your time at the event.
BCM is again a supporting partner organization. BCM members will enjoy 15% discount; please quote
Priority Code 695BCM15D during registration. To speak, sponsor or exhibit: Please contact King Tai
at king.tai@beaconevents.com
___________________________________________
―MM TODAY‖ ON MNB-TV, FRIDAY, 19:00-19:10
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:00 to 19:10 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM WEBSITES
MONGOLIAN WEBSITE ‗PRESENTATIONS‘ AND ‗NEWS‘ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', ‗INTERVIEWS‗, MONGOLIAN
BUSINESS NEWS‘, ‗PHOTO GALLERY‘
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available:
• Jim Dwyer, Executive Director of BCM – ―Mongolian Economy: Investment
Opportunity/Challenges‖ at the 16th Annual NAMBC Investors Conference, Sept 24, 2013
• Business-mongolia.com: ―Working group‘s conclusion on the economy‖
• Joshua Sunga, Internship Program Director, AIESEC- "Youth Leadership Development" at the BCM
Monthly Meeting Aug 26. 2013
• G. Zorig, Country Manager, Tree Global Mongolia – ―Tree Global Mongolia Overview Presentation‖
at the BCM Monthly meeting Aug 26, 2013
• G. Saruul, Deputy CEO, Mongolian Stock Exchange – ―Securities Law Overview‖ at the BCM Monthly
meeting Aug 26, 2013
• Bilguun Ankhbayar, Chief Executive Officer, Mongolian Investment Banking Group LLC,
―MIBG Review‖, at the MSE-BCM Securities Law Overview Session, July 4, 2013
• Robert Rooks, Director, PwC Hong Kong, ―A brief Overview of Custody Services‖, at the MSE-BCM
Securities Law Overview Session, July 4, 2013
• Anthony Woolley, Senior Associate, Hogan Lovells, ―The Revised Securities Market Law‖, at the
MSE-BCM Securities Law Overview Session, July 4, 2013
• B. Saruul, Director General, Securities Department, Financial Regulatory Commission of Mongolia,
―Securities Markets Law – Path to Market Reforms‖, at the MSE-BCM Securities Law Overview

20. Session, July 4, 2013
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―IMF Completes 2013 Article IV Mission to Mongolia‖ by International Monetary Fund;
- ―Mongolia Macro Flash‖, Adrienne Lui, Asia Pacific Economics Research, Citigroup Global Markets
Asia Ltd;
- ―Selected Macroeconomic Indicators for Mongolia, as of June 2013‖ by International Monetary
Fund;
- ―Polit Barometer April, 2013‖ by Sant Maral Foundation;
- ―Market Update‖ by Mandal General Insurance LLC;
- ―Annual Report 2012‖ by International Monetary Fund;
- ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International Monetary Fund;
- ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and Development (EBRD);
- ―Official statement of Oyu Tolgoi LLC in relation to information, data and facts related to Oyu
Tolgoi‖ discussed during open session of the State Great Khural‖, dated 1 February, 2013‖;
- ―Mongolia Investment Climate Statement‖, by the Economic and Commercial Section of the U.S.
Embassy;
- ―Mongolia Foreign Labor Force Ratio for 2013‖ by Hogan Lovells International LLP;
- ―How Mongolia will perform in 2013?‖ by Mandal Asset Management;
- ―Mongolia Business Owner and CFO Survey result‖ by BDSec JSC;
- ―The fiscal regime for mining - a way forward‖ by IMF Fiscal Affairs Department;
- ―Taxes for Expatriates in Mongolia‖ by PricewaterhouseCoopers.
The following interviews are added to Interview Section from the Oxford Business Group, Mongolia
Reports 2013 book:
• B. Byambasaikhan, Chairman, Business Council of Mongolia: ―Talk is cheap‖;
• President Ts. Elbegdorj: ―Diversifying for growth‖
• Jim Dwyer, Executive Director, Business Council of Mongolia: ―Non-mining sectors budding‖;
• Peter Morrow, Chairman, American University of Mongolia: ―Filling in the blanks‖;
• N. Zoljargal, Governor, Bank of Mongolia: ―Sustainable vision‖;
• Gansukh, Minister of Roads and Transportation: ―Accessing new markets‖;
• J. Od, President, MCS Group: ―Building interest‖;
• B. Chuluunbaatar, President and CEO of Monnis Group: ―Climbing the ranks‖;
• Cameron McRae, President and CEO, Oyu Tolgoi: ―Sitting on a copper mine‖.
BCM's English website includes the ―Mongolia Business News‖ section where the Open Letter to
Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 5th Anniversary BCM Gala dinner on November 5.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
___________________________________________
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.

21. Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,678 fans on our Facebook fans page, 1,511 connections on LinkedIn network, and
781 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn
BCM WORKING GROUP NEWS
The next BCM in the University Classroom will be held on 23 October at the National University of
Mongolia for its Geology and Environment Department. B. Bayarmaa, a carbon finance specialist at
Clean Energy LLC and chair of BCM`s Environmental Working Group, will give a presentation titled
―Climate Change Mitigation and Green Development‖.
For more information on BCM in the University Classroom, email erka@bcmongolia.org.
ECONOMIC INDICATORS

22. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
September 30, 2013 *9.9% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 8.4% y-o-y, Ulaanbaatar city, September 30, 2013
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]

23. CURRENCY RATES – OCTOBER 17, 2013
Currency Name Currency Rate
US dollar USD 1,695.65
Euro EUR 2,310.92
Japanese yen JPY 17.32
British pound GBP 2,723.30
Hong Kong dollar HKD 218.67
Chinese Yuan CNY 278.14
Russian Ruble RUB 52.84
South Korean won KRW 1.59
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.