19.07.2013, NEWSWIRE, Issues 282 283

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 282-283 – July 19, 2013
A DOUBLE ISSUE, WITH STORIES FROM NAADAM WEEK WHEN THE NEWSWIRE WAS NOT
PUBLISHED.
NEWS HIGHLIGHTS:
Business
 Rio faces more hurdles at Oyu Tolgoi, Mongolia shareholder says;
 IGC executes USD 10-12 million iron-ore sale purchase agreement;
 Wolf Petroleum uncovers oil seam at 9,600 meter depth;
 Modun receives mining license for Nuurst;
 Bellegprom considers outsourcing some knitting operations to Mongolia;
 Aspire Mining and north Asian coking coal buyers sign memoranda;
 Blue Wolf cancels tender offer;
 Prophecy announces agreement with Waterton;
 Local firm launches night trolley service in UB;
 SouthGobi appoints new president and executive director;
 Manas hires firm for investor relations;
 Court makes ruling in favor of MEC in Leighton suit;
 Boroo employee dies in accident;
 Mongolian Mining Summit in Australia this October;
 Anglo American steps toward partnership role in Mongolia;
 Anglo American joins strong mining rebound;
 Rio Tinto raises full-year copper output guidance;
 Yum Brands suffers on China woes.
Economy
 Analysts predict 20.9 percent growth in GDP per capita in 2013;
 FDI fell 36 percent y-o-y as of May;
 Exports fall 1.2 percent y-o-y for H1;
 MSE trade activity falls by 80 percent for H1;
 Ulaanbaatar rents to jump as KFC, Cinnabon enter, Kupperman says;
 Power company establishes provisions for winter demand;
 Another possible delay for Power Plant No. 5;
 U.S. delegation expresses interest in renewable energies in Mongolia;
 Mongolia sees 144th diagnosis of AIDS;
 Mongolia targets health care at birth;
 14 Japanese cars test positive for radiation in 2013;
 Population reaches 2.9 million;
 In tax case, Mongolia is the mouse that roared;
 Asian Tiger Korea takes watch over a wolf;
 Copper, gold lead broad rally on dovish Fed signals;
 When the Ordos bubble bursts;
 China's economic growth slows in second quarter;

 Chinese leaders hit the pain barrier;
 Pollution leads to drop in life span in northern China, study finds;
 Why China will not buy the world;
 Australia to scrap unpopular carbon tax;
 Coal investment crucial starting block for South Africa’s energy progress;
 IMF slashes global growth forecasts;
 Study reveals fresh insights into Przewalski horse;
 Epigraphs of ancient Turkic people discovered in Mongolia;
 NGO estimates at least three years for Lake Khuvsgul cleanup.
Politics
 Elbegdorj sworn in pledging rapid development;
 Parliament closes spring session;
 Mongolia ranks second worst on corruption barometers;
 ADB president visits Mongolia;
 Finance minister requests loan from ADB for infrastructure;
 Indian renewable energy minister visits UB;
 Mongolia partners with Australia for clean water;
 Mongolia takes ties with China as top priority, says Altankhuyag;
 Japanese minister leaves for Mongolia to discuss N. Korea;
 Experts back Gold Mountains of Altai as World Heritage site;
 UB Council approves name change for Sukhbaatar Square;
 MPP opposes change to Sukhbaatar Square's name;
 MPP to hold convention in July;
 IAAC raids Enkhbayar's home;
 IAAC arrests former Erdenet Mining director;
 Mongolia's junior Genghis Khans face rising risks.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Monthly Macroeconomic Overview – June 2013;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
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Mongolian National Broadcasting Breakthrough PR
BUSINESS
RIO FACES MORE HURDLES AT OYU TOLGOI, MONGOLIA SHAREHOLDER SAYS
Rio Tinto PLC faces lingering disputes with the Mongolian government over its Oyu Tolgoi copper
mine, said a director of the state company that owns a third of the mine, highlighting risks
confronting the massive project.
According to Tserenbat Sedvanchig, executive director of Erdenes Oyu Tolgoi, the government still
has 22 points of dispute with Rio Tinto, operator of the project that is expected to boost the
country's economy by 35 percent by 2020.
―If we don't make clear what was the amount of initial investment, resolution of some of the other
21 issues will be hindered,‖ Sedvanchig told Mongolian online news service News.mn in an interview
on Tuesday. He added, ―Any action aimed at tax evasion will be strictly prosecuted under our law
and Rio Tinto and the company management team probably understand this well. We requested Oyu
Tolgoi to register all its domestic and foreign accounts with relevant state agencies,‖ Sedvanchig
said.
Mongolia will receive at least USD 100 million in royalties from Oyu Tolgoi this year, he said. The
Mongolian government has said the USD 6.5 billion project is at least 2 billion over budget. Other
issues that remain to be resolved include the government's demand for equal pay for Mongolian and
foreign workers, concerns about higher management fees and fair representation of Mongolians in
management. The company has blamed delays in attaining permits, industry-wide costs increases
over the three years of development and inflation in Mongolia for the cost overruns above its early
estimates.
Two auditing teams are investigating costs incurred during phase one development of the project,
one appointed by the Oyu Tolgoi board and the other by Mongolia's parliament. The government and
Rio Tinto will need to resolve the dispute over the costs of the first phase of the project before
agreeing on funding for the second phase, an underground development expected to cost more that
USD 5 billion.
Source: Reuters
IGC EXECUTES USD 10-12 MILLION IRON-ORE SALE PURCHASE AGREEMENT
India Globalization Capital, Inc. (IGC) announced the signing of an iron ore sale and purchase
agreement with Mon Resources International LLC on 3 July.

The contract encompasses an aggregate shipment of up to 126,000 metric tons of iron ore from
supplier Mon Resources, and is effective through 31 December 2013. The agreement can be
extended with mutual agreement. IGC will purchase an aggregate of 126,000 metric tons of 54
percent iron content ore delivered to the IGC hub at the border of Mongolia and China. IGC's
subsidiary in China will beneficiate this ore to 66 percent iron content, which is then sold to the
steel mills. Shipments are expected to commence in August with projected aggregate revenue
between USD 10 million and USD 12 million, based on current pricing and favorable profit margins.
―This order stems from the successful 300 MT test shipment and the establishment of a shipping hub
at the border of Mongolia and China, both of which were announced in past months,‖ said Rarn
Mukunda, chief executive of IGC. He said, ―We are excited about our relationship in Mongolia. This
establishes our network in Mongolia, where we are one of the first U.S. companies, and where we
see considerable 'first-mover' acquisitions opportunities.‖
Source: India Globalization Capital, Inc.
WOLF PETROLEUM UNCOVERS OIL SEAM AT 9,600 METER DEPTH
Australian Securities Exchange-listed Wolf Petroleum Ltd. has uncovered an oil deposit 9,600 meters
underground, said company Director T. Bataa.
The oil seam was discovered at the Sukhbaatar-27 exploration site, where the company has
bartered a production agreement with the government. Comparatively, average depths in Mongolia
range between 3,500 and 4,000 meters.
―There are some sites of 4,000 meters in depth in Mongolia where oil is extracted. The site found
by us could be Mongolia's deepest,‖ said Bataa.
Source: Udriin Sonin
MODUN RECEIVES MINING LICENSE FOR NUURST
The Mineral Resources Authority (MRA) approved Australia-listed coal explorer Modun Resources
Ltd.'s application for a mining license for the Nuurst thermal coal project, 120 kilometers south of
Ulaanbaatar.
The mining license had been granted over an area of 2,497 hectares, covering the planned open-pit
mine, an area for surface infrastructure and the resource area, which remains open to the north of
the planned mine.
―This is a significant achievement and critical milestone for Modun, as we move towards first
production of coal,‖ Managing Director Rick Dalton said in a statement. He said the Nuurst project
met all the key criteria—technical, economic and environmental sustainability—as set out by the
MRA.
Modun would start the feasibility work for the Nuurst project, which would expand on the initial
mining study and seek to confirm the overall infrastructure and mine costs and the final mine plan
to maximize the economic benefits from the mine. The feasibility work was also an important step
in obtaining the financing required for the mine development.
The initial mining study identified the potential for an 84.7 million ton sub-bituminous thermal coal
mine with a 30-year mining life, with production ramping up to three-million tons a year by the
fourth year of operation.
Source: Mining Weekly
BELLEGPROM CONSIDERS OUTSOURCING SOME KNITTING OPERATIONS TO MONGOLIA
The enterprises of the Bellegprom state light industry concern are considering outsourcing some
knitting operations to Mongolia.
Companies of other sectors of the light industry have started placing orders abroad. For example,
footwear companies have shoe parts sewn in China and India. This allows improving productivity
and increasing revenue per employee. Meanwhile, Bellegprom has been actively developing
relations with partners from Mongolia.
―Mongolian companies show interest in Belarusian flax yarn, fabrics for special purposes and cotton
that are used for the production of linen,‖ noted Bellegprom.

Bellegprom is tapping into new promising markets. This year first deliveries have been shipped to
Ireland, Spain, Morocco, Mongolia, Slovenia, and Thailand. In January through April 2013, the
export of light-industry goods to those markets amounted to USD 290,500. All in all, in the January-
April period of this year the export of Bellegprom enterprises exceeded USD 253.6 million, up 12.5
percent as against the same period last year. Bellegprom had a surplus of USD 83.9 million.
Despite gains in exports, the backlogs are still huge and exceed 200 percent of the average
production volume. In addition, the demand for goods of many companies is seasonal. Therefore the
companies need to produce and stock in advance a wide range of products and retail them as the
season approaches. In spring and summer some enterprises produce goods for school season, which
will sell well in autumn and winter. Currently, the share of these products in the total backlogs
ranges, from 20 percent to 60 percent. Bellegprom has developed a strategy to clear the backlogs
of inventory in 2013 and an auction plan to it. This work is done in collaboration with the Trade
Ministry, Belcoopsovyuz and retailers. In addition, Bellegprom seeks to strengthen inter-sectoral
cooperation, which also helps clear the backlogs and offset some of the imports.
Source: Belarusian Telegraph Agency
ASPIRE MINING AND NORTH ASIAN COKING COAL BUYERS SIGN MEMORANDA
Aspire Mining Ltd. announced the receipt of non-binding memoranda of understanding from four
north Asian steel mills and coking coal buyers for the purchase of coking coal to be produced from
the Ovoot coking coal project.
The four memoranda total a possible commitment by Chinese customers to purchase up to 5.6
million tons a year of coking coal. They represent nearly all of the planned total saleable
production from the Ovoot project's stage one development.
Aspire has also met with many other large-scale potential Chinese customers as well as steel mills
and coke producers in Japan, Russia and Eastern Europe, which have indicated additional significant
buying interest. Marketing efforts are still at a preliminary stage, with only half of the Chinese
target market approached to date.
Source: Aspire Mining Ltd.
BLUE WOLF CANCELS TENDER OFFER
Blue Wolf Mongolia Holdings Corp. announced the termination of a tender to purchase up to some
1.47 million ordinary shares of Li3 Energy Inc. at USD 9.97 each.
Blue Wolf terminated the offer because it did not satisfy the terms and conditions of each of its
offers to purchase, as amended and supplemented, and the agreement and plan of merger with Li3.
Blue Wolf will not accept any ordinary shares that have been tendered as payment, and such
ordinary shares will be returned, without expense, to the holders who had tendered such shares.
Source: Blue Wolf Mongolia Holdings Corp.
PROPHECY ANNOUNCES AGREEMENT WITH WATERTON
Prophecy Coal Corp. announced it had entered a letter agreement with Waterton Global Value.
Prophecy has agreed to a partial pay down of the principal loan amounting from USD 10 to USD 6.5
million from restricted cash-on-hand amounting to USD 3.5 million and extended the maturity date
from 16 July to 31 October. The amended loan agreement facility is a non-revolving facility, and
any repayment under the facility is not available for re-borrowing.
Prophecy shall pay Waterton, in cash, a non-refundable restructuring fee in equal and consecutive
monthly installment payments. Each payment shall be in an amount equal to 2 percent of the
outstanding principal of the loan as of the date of the execution of the amendment.
Source: Prophecy Coal Corp
LOCAL FIRM LAUNCHES NIGHT TROLLEY SERVICE IN UB
Tsakhilgaan Teever has launched a nightly trolley service operating between the hours of 11 p.m.
and 5 a.m.
The company launches its initial 2-month long test run of services on 11 July. Two trolleys will

operate between Khanyn Material and the Officers' Palace, a 40 minute ride. Another route
between the third and fourth districts to the industrial district, a 25 minute distance, is also
planned for launch. Rides cost MNT 1,000 adults and MNT 400 for children.
The trolleys were assembled in Mongolia and use either electric or diesel engines. Each trolley is
equipped with a security camera.
Tsakhilgaan Teever plans to employ more trolleys in fall.
SOUTHGOBI APPOINTS NEW PRESIDENT AND EXECUTIVE DIRECTOR
SouthGobi Resources Ltd. announced the appointment of Sengee Enkh-Amgalan as the new
president and executive director of SouthGobi Sands LLC.
Enkh-Amgalan joined SouthGobi Sands from Clean Energy LLC, a subsidiary of Newcom Group,
where he was chief executive and led the development of the first commercial scale wind farm in
Mongolia. Prior to this he gained experience in the extractive industry through a number of senior
management positions at MCS Group, including vice president of corporate development at
Mongolian Mining Corp.
―I am extremely pleased to welcome Enkh-Amgalan as SGS's new president and executive director
and a member of the senior executive team,‖ said Ross Tromans, president and chief executive of
SouthGobi Resources. ―Amgalan is not only a seasoned executive with extensive management skills,
but he also brings with him in-depth knowledge of the Mongolian mining and energy industries. All
of us at SouthGobi look forward to working with and benefiting from Enkh-Amgalan's strong
leadership and experience as we focus on strengthening the company's core business performance
and realizing its production potential.
Source: SouthGobi Resources Ltd.
MANAS HIRES FIRM FOR INVESTOR RELATIONS
Manas Petroleum Corp. has retained Undiscovered Equities Inc. to provide investor relations and
corporate communications services, effective 18 June. Undiscovered Equities a Florida-based
consulting firm managed, has agreed to assist Manas at trade shows, liaise with the investment
community and assist with the organization and presentation of roadshows. Manas has agreed to a
monthly retainer of USD 7,500 plus approved expenses, and, effective 26 June, it granted
Undiscovered Equities options to purchase an aggregate of USD 750,000 shares.
Separately, Manas announced the resignation of Murray Rodgers as director.
Source: Manas Petroleum Corp.
COURT MAKES RULING IN FAVOR OF MEC IN LEIGHTON SUIT
A Hong Kong court decided in favor of Mongolia Energy Corp. when asked to rule on a company
guarantee it gave to Leighton LLC.
After hearing from legal representatives from both sides on 10 July about a contractual dispute
between Leighton and MEC subsidiary MoEnCo LLC, the court ruled in MEC's favor that the company
guarantee it gave to Leighton is a guarantee in the true sense with liability of the costs of the
summary application to be decided. Final judgment is over a suit from Leighton against MEC for
some MNT 12.2 billion with damages and interest to be assessed.
The company is preparing to file its defense for the first and second writs with the court.
Source: Mongolian Energy Corp.
BOROO EMPLOYEE DIES IN ACCIDENT
Centerra Gold Inc. announced a fatal accident to an employee at the Boroo gold mine site on 3
July. The employee was operating a light duty vehicle when it rolled over, resulting in a fatal
injury.
Source: Mining.com

MONGOLIAN MINING SUMMIT IN PERTH, AUSTRALIA THIS OCTOBER
The Business Council of Mongolia (BCM) is a supporting organization for the 2013 Mongolian Mining
Summit in Perth, Australia, presenting issues surrounding the mining industry between 29 and 31
October.
Speakers include Chuluuntseren Otgochuluu, Director General of the department of strategic policy
and planning at the Ministry of Mining, Jim Dwyer, Executive Director of BCM, Graeme Hancock,
President and Chief Representative of Anglo American Mongolia, and N. Algaa, Executive Director of
the Mongolian National Mining Association. One discussion entitled ―obstacles facing the fastest
growing market in the world‖ will include speakers David Paull, Managing Director of Aspire Mining
Ltd., and G. Battsengel, Chief Executive of Energy Resources LLC.
Source: News.mn
ANGLO AMERICAN STEPS TOWARD PARTNERSHIP ROLE IN MONGOLIA
Six months after Anglo American PLC opened an office in Mongolia, the company on 4 July gave a
public demonstration on responsible mining.
The event was the first public appearance in Mongolia by the company, which ranks among the
world's largest miners. Anglo American Chief Representative Graeme Hancock said his company was
interested in partnering with Mongolia and was looking forward to cooperating with various social
groups and local administrators. In late 2012 the company's Mongolian representative office
reported that it had formed a team to conduct the first stage of research projects.
―Through our enterprise development activities globally over the last five years we have created
65,000 jobs in businesses outside the mine gate around our mines,‖ said Hancock. ―As we are not
able to create so many job opportunities on the mine sites, we work to support entrepreneurs in
the communities surrounding our mines by using our local procurement activities as a driver for
local business development. Likewise, we are planning to implement the same corporate social
responsibility programs of Anglo American in Mongolia, ensuring sustainable development for the
long term and creating employment and business development opportunities to create a win-win
situation for both the company and local communities.‖
The company has invested USD 154 million in projects worldwide, of which USD 32.9 million was
invested in education and training.
Source: UB Post
ANGLO AMERICAN JOINS STRONG MINING REBOUND
Anglo American PLC, which opened an office in Mongolia this year, joined a mining sector rebound,
lifting the FTSE 100 to a five-week high.
Anglo American bounced 5.4 percent to GBP 13.37 ahead of interim results later this month, which
will be the first under new chief executive Mark Cutifani. Even if metals prices recover, Anglo's free
cash flow will not be enough to fund its dividend for this year or next, meaning Cutifani needs to
borrow or sell assets, said Jefferies. However, the broker saw limited risk of a rights issue as the
USD 7.1 billion of debt repayments required before 2015 were adequately spaced out.
Speculation so far has centered on Anglo American selling a one-third stake in its much-delayed
Minas Rio iron ore project in Brazil, where costs have ballooned to USD 8.8 billion. Such a deal
could raise between USD 700 million and USD 1.1 billion, analysts said. Dealers also noted a revival
of talk that De Beers, Anglo American's diamond unit, might be floated or sold. Dovish comments
from the U.S. Federal Reserve meant the wider mining sector showed it biggest gain since the first
trading day of the year.
Source: Financial Times
RIO TINTO RAISES FULL-YEAR COPPER OUTPUT GUIDANCE
Rio Tinto PLC has increased its full-year copper production guidance by 25,000 tons after making
swifter-than-expected progress with the recovery program at its Bingham Canyon mine in the
United States and a week after the launch of copper concentrate export to China from the Oyu
Tolgoi mine.

A spectacular pit wall failure in April saw more than 150 million tons of rock and earth pour into the
mine, the largest man-made excavation on earth, destroying an estimated AUD 100 million (USD 92
million) of equipment. At the time the Anglo-Australian miner said the slide would result in as much
as 125,000 tons in lost copper production in 2013. Copper is Rio's second-largest profit earner,
behind iron ore. However, Rio Tinto said on Tuesday in its June quarter production report that it
now expects production to fall by 100,000 tons because the initial recovery plan, which involves
mining from lower sections of the pit and running down stockpiles, had ―advanced faster than
previously expected.‖
Rio Tinto also used Tuesday's update to reaffirm its 2013 global iron ore production guidance of 265
million tons and said the expansion of its operations in the Pilbara region of Western Australia to
annual production capacity of 290 million tons were on track and on budget.
―One of our key priorities this year is to deliver on our growth projects,‖ said Sam Walsh, Rio Tinto
chief executive.
Earlier this month, the first convoy of trucks left Rio Tinto's USD 6.2 billion Oyu Tolgoi mine in
Mongolia's Gobi Desert region carrying copper to China, an important milestone for the operation
and the mining company's efforts to reduce its reliance on iron ore.
Source: Financial Times, Wall Street Journal
YUM BRANDS SUFFERS ON CHINA WOES
Yum Brands, operator of KFC, which opened its first restaurant in Mongolia in May, reported a 15
percent drop in second-quarter earnings as food safety fears at its Chinese unit took their toll.
However, the company said the unit was recovering and remained on track to open more than 700
new units this year.
The Kentucky-based company reported net income of USD 281 million, or 56 cents a share excluding
special items, for the three months to June 15, down from USD 331 million, or 67 cents a diluted
share, during the same period last year. Revenues for the quarter fell 8 percent, from USD 3.17
billion last year to USD 2.9 billion. The results beat analyst expectations of earnings of 54 cents per
share, but fell below expectations of USD 2.93 billion in sales. They improved on the first quarter,
which saw a 26 percent drop in earnings from last year.
In China, which accounted for about 17 percent of total operating profits and nearly half of
revenues in the second quarter, same-store sales fell 20 percent compared with the same period
last year. Operating profits there fell 63 percent to USD 68 million, from USD 182 million. Yum is
China's leading western restaurant company by sales and number of outlets, with nearly 6,000. Most
are KFC and many are company-operated rather than franchised. David Novak, chief executive, said
intense media attention surrounding an avian flu outbreak earlier this year, and allegations in
December that some Yum suppliers in China had injected chickens with growth hormones and
antiviral drugs beyond food safety limits, was subsiding, and same-store sales were bouncing back.
Analysts agreed that the company would soon be putting its China troubles behind it.
―We assume a solid rebound from food safety-related issues as these types of issues have a track
record of being short lived,‖ said Mitchell Speiser, of the Buckingham Research Group, in a pre-
earnings note to investors.
The company reiterated its expectations that earnings per share would suffer a mid-single-digit
drop in 2013. Novak said he expected a ―big bounceback year in 2014.‖
ECONOMY
ANALYSTS PREDICT 20.9 PERCENT GROWTH IN GDP PER CAPITA IN 2013
Analysts [the Source does not name analyst sources -ed] have reported projected growth of 14.7
percent gross domestic product (GDP) per capita to MNT 7 million a head for 2014.
Other projections were 11.8 percent growth for GDP per capita in 2015 and 14.6 percent in 2016.
However, all of these projections would fall short of 2013's per capita growth of 20.9 percent.

Analysts are expecting growth in sectors such agriculture (3.9 percent), manufacturing (24.8
percent), and the service sector (31.7 percent), in addition to growth in other non-mining activities
of 10.4 percent.
The Oyu Tolgoi copper-gold mine is expected to double or triple manufacturing growth between
2014 and 2016 from 2013 figures, and there is also an expected boost from the Tavan Tolgoi coking
coal mine as the West Tsankhi enters rotation. Additionally, Mongolia has plans to expand Thermal
Plant No. 4 and the Khutul cement plant in 2014. There are also plans to develop a powdered milk
factory at the Sainshand industrial complex.
Source: UB Post
FDI FELL 36 PERCENT Y-O-Y AS OF MAY
This May, foreign direct investment (FDI) increased to a total USD 231.3 million.
Despite the gain in May, 2013 FDI in Mongolia is still lagging behind 2012's numbers. According to
preliminary performance in May, FDI fell by 36 percent year-over-year compared to May, 2012. As of
May, 2012 FDI of USD 1.8 billion was invested in Mongolia, compared with MNT 1.2 billion this year
from 1 January.
Analysts believe the increase was a result of the amendment to the Strategic Entities Foreign
Investment Law (SEFIL). Although FDI has slowed, economists say indicators show it will likely
recover in the near future. Mongolia's investment in foreign countries was equal to USD 4.9 million
as of the first half of this year.
Source: UB Post
EXPORTS FALL 1.2 PERCENT Y-O-Y FOR H1
Export revenue experienced a USD 1 billion decline in the first half of this year, falling 1.2 percent
by USD 13.1 million year-over-year.
The fall in exports is likely due to the flagging minerals sector, particularly in coal. Representing
97.4 percent of all exports are minerals, precious and semi-precious stones, jewelry, coins, raw and
processed leather and hides, pelts, knitted goods, as well as cars and planes and their spare parts.
Source: Undesnii Shuudan
MSE TRADE ACTIVITY FALLS BY 80 PERCENT FOR H1
Trading on the Mongolian Stock Exchange (MSE) fell 79.8 percent year-on-year, or MNT 48.6 billion,
in the first half of 2012. Trade activity on the MSE totaled MNT 12.3 billion with 22 million shares
sold.
The fall in trade activity has likely been caused by disruption from the transition to the Millennium
Exchange software trade platform, introduced by the London Stock Exchange (LSE) as part of its
partnership agreement with the MSE. Head officials at the MSE said the stock market would likely
see improvement after the new Securities Law takes effect on 1 January, 2014.
Source: Zuunii Medee
ULAANBAATAR RENTS TO JUMP AS KFC, CINNABON ENTER, KUPPERMAN SAYS
Commercial real estate rents in Ulaanbaatar will more than triple within five years as increases in
per-capita incomes lure international companies, said Harris Kupperman, CEO of Mongolian Growth
Group (MGG).
Rental prices in Peace Avenue will top USD 100 per square meter a month by 2018, up from as much
as USD 30 currently, said MGG Chief Executive Kupperman. A real-estate surge driven by the mining
boom has prompted firms such as U.S. food companies KFC Ltd., Cinnabon International Inc. and
Round Table Pizza Inc. to open shops this year.
‖It starts with food and beverage, but eventually you are going to have more retail, too,‖
Kupperman, 32, whose company owns retail space in the Peace Avenue business corridor, said in an
interview in Ulaanbaatar on 3 July. ―You get 10-year leases signed by high-quality tenants and they
add value to the property. They pay their rent on time, so it increases the value, and they tend to
pay above market for top locations.‖

MGG has invested USD 40 million in storefront properties, office buildings and redevelopment sites
since February 2011, and makes USD 200,000 a month in revenue from these properties, he said.
Retail space on Peace Avenue costs USD 2,500 to USD 3,000 a square meter, Kupperman said.
Grade-A rents in the area have surged to USD 70 a square meter from around USD 45 three years
ago, Alex Skinner, head of Real Source Inc. said.
‖There is a whole lot of supply; it's going to hurt prices in terms of rents,‖ Kupperman said, adding
that prices in the district could fall to USD 30 to USD 40 per square meter within two years.
Kupperman said he was sticking to areas where retailers are opening shops because of the growing
purchasing power of consumers. Apartment prices across Ulaanbaatar have increased 23 percent a
year since 2005, Skinner said. In prime locations a Soviet-era apartment that in 2006 would have
cost around USD 337 per share meter now is at least USD 2,000 a square meter, said Skinner.
Source: Bloomberg
POWER COMPANY ESTABLISHES PROVISIONS FOR WINTER DEMAND
The Ulaanbaatar Electricity Distribution Network (UEDN) will be installing a new substation to keep
up with the rising demand for energy in the capital.
Plans for the new substation were announced during a visit by Mayor E. Bat-Uul where he observed
preparations being made for the forthcoming winter. UEDN supplies power to all nine of
Ulaanbaatar's districts and 16 counties in Tuv Aimag. The company said it has installed
infrastructure for a 23.3 percent greater energy load to the region west of the Selbe River.
ANOTHER POSSIBLE DELAY FOR POWER PLANT NO. 5
Delivery of the 450-megawatt Combined Heat and Power Plant No. 5 continues to face
implementation uncertainties, with competing projects likely causing a delay in the final
investment decision in the near term.
Energy infrastructure is inadequate in Mongolia and more power generation capacity needs to be
installed to avoid a crunch in supply further down the road. According to a May 2013 report by
Prophecy Coal Corp., which also has a power plant in planning, Mongolia will be 100 megawatts
short in 2013, 228 in 2014, 425 in 2015 and 525 in 2016. The Central Energy System and the Western
Energy System are connected to the Russian grid via 220-kilovolt and 110-kilovolt lines,
respectively, but that electricity is expensive and cannot make up for long-term shortfalls.
In July 2012, the State Property Committee chose a consortium that included France‘s GDF Suez,
Korea's POSCO Energy, Japan's Sojitz Corp. and Mongolia's Newcom LLC (with a planned 30:30:30:10
split). That year the site location for the plant was twice moved. Then in March 2013, ten months
after the Democratic Party took control of the government, Prime Minister Norov Altankhuyag made
public comments that month that suggested the deal may not happen at all. He said that a new CHP
was not the way to go, preferring a mine-mouth solution.
The GDF consortium has argued that the CHP project makes the most sense for the country. It is
more 60 percent more efficient and cleaner, with emissions at or under standards set by the World
Bank. Comparatively, a power plant at a mine site requires laying high-voltage, direct-current
transmission lines, which are expensive and will result in the loss of energy over distance. It would
also, the GDF consortium argues, lack the advantage of being able to produce both electricity and
heat for Ulaanbaatar. If the government chooses a mine-mouth solution, a heat-only boiler will
have to be constructed in the city to provide the heat that Plant No. 5 would provide directly.
Apart from weighing down on investors' confidence, further delays in delivery of key power projects
will likely result in power shortages that the government is trying to avoid.
Source: Oxford Business Group
U.S. DELEGATION EXPRESSES INTEREST IN RENEWABLE ENERGIES IN MONGOLIA
A U.S. delegation recently made a visit to Mongolia to observe the potential for wind power
generation.
Those included in the delegation were the U.S. representative for the Asia Pacific Economic

Cooperation and primary economic advisor to the Assistant Secretary of State for East Asian and
Pacific Affairs (EPAC), Atul Keshap, along with a director of the Office of Economic Policy in the
Bureau of EPAC, Raymond Greene. They agreed that Mongolia has great importance for its potential
role in renewable energy generation at an international scale. They also said there was interest
from the U.S. private sector from renewable energy companies conducting major projects in foreign
countries that are willing to partner with Mongolia.
Source: UB Post
MONGOLIA SEES 144TH DIAGNOSIS OF AIDS
The National Research Center for Infectious Disease NRCID reported that Mongolia saw its 144th
AIDS diagnosis.
A man was diagnosed with HIV/AIDS after being tested at NRCID on 9 July. The patient is currently
under doctors' care. Mongolia saw its first diagnosed case of HIV/Aids in 1992.
Source: News.mn
MONGOLIA TARGETS HEALTH CARE AT BIRTH
Mongolia is taking on new initiatives to reduce infant mortality and the spread of communicable
diseases.
The Mongolian population grew by 5.6 percent with a total of 74,474 births last year, when a total
of 81,292 women were registered for a pregnancy control program, The program was launched as
part of a 2012-2016 reproductive policy that set out to increase the number of registered pregnant
women from 87.5 percent, which falls below that of most developed nations.
Reproductive health services is four times less than in 1990 with the socialist system. The Ministry
of Health and Ulaanbaatar Health Department published a report on communicable diseases in
hospital and clinics that described 203 reported cases where it was believed disease was spread at
health care facilities. The report said 80 percent of cases had signs of transmission disease
transmitted during medical treatment at hospitals and clinics, 29 percent at dental offices, 25
percent at pediatric centers -- 17 percent during birth, 15 percent during surgery, 13 percent
through injections, and 1 percent from hospital treatment.
14 JAPANESE CARS TEST POSITIVE FOR RADIATION IN 2013
Ulaanbaatar's Specialized Inspection Agency reported that it found 14 cars that tested positive for
radiation at customs since 1 January this year.
The 14 radioactive cars are out of a total of 10,349 cars imported from Japan this year. After the
cars were identified as radioactive there were dispatched to the National Emergency Management
Agency (NEMA) via the Nuclear Energy Authority.
Ulaanbaatar's inspection agency released a warning that individuals should be aware that some
imports from Japan may be radioactive and that radiation certificates should be enclosed when
transporting cars from Japan. Any cars that test positive for radiation should not be transported at
all from Japan.
Mongolia has kept steady controls of imported cars since the 2011 Fukushima nuclear disaster
following an earthquake and Tsunami in Japan.
Source: News.mn
POPULATION REACHES 2.9 MILLION
Mongolia's population has reached 2.9 million, reported the National Statistical Office on Monday.
Today's population compares with 2.6 million in 2010, excluding some 100,000 Mongolian who lived
abroad. The population count was tallied using a standard method utilized worldwide. NSO expects
the population to reach three million by 2017.
NSO reported that in the first half of 2013 38,729 mothers delivered 6,572 live births, an 8.4
percent increase year-on-year of 507 children. The infant mortality rate fell by 13 percent or 2.2
percent to 577, and child mortality between the ages of one and five grew by 9.9 percent by to

133.
Source: Montsame
IN TAX CASE, MONGOLIA IS THE MOUSE THAT ROARED
Turquoise Hill Netherlands is a little-known Amsterdam-based company with three employees, no
office, and not even its own mailbox. To the government of Mongolia, though, the company
represents billions in taxes that it will never see.
Turquoise Hill was created in 2009, five years after Mongolia and the Netherlands signed a tax
treaty to avoid double taxation and boost investment in Mongolia. But in 2011, Mongolia decided to
cancel the pact, arguing that it would cost the country income from one of the most lucrative gold
and copper mines in the world. The move was rare—tax experts say only a handful of such deals
between countries have ever been canceled—and it highlights a big contradiction.
―We started to question why these countries would have greater advantages in Mongolia than us,‖
said Vice Finance Minister Surenjav Purev.
Under normal circumstances, Mongolia would levy a 20 percent withholding tax on dividends paid by
mine companies. But the dual taxation agreement allowed Dutch-registered firms to channel
income from dividends, royalties and interest earned in Mongolia through their Dutch company, so
pay no withholding tax. Terminating the treaty means firms that use countries such as the
Netherlands to channel tax-free earnings from Mongolia could lose the tax benefits, or be forced to
seek a different low-tax route. However, a Rio Tinto PLC spokesman told Reuters in an email that
the cancellation of the Dutch treaty will not affect Oyu Tolgoi's use of its Dutch holding company,
because the firm has a separate investment agreement with Mongolia that ―stabilizes‖ treaties that
were in force in 2009.
As international pressure mounts for countries to stem tax avoidance, the Dutch are now
considering whether their treaties do more harm than good. Dutch State Secretary of Finance Frans
Weekers said he was already reviewing tax treaties with five developing countries to determine if
they may be unfair, and will re-negotiate if they are. So far he is not looking at the Mongolia case,
but Finance Ministry spokesman Remco Dolstra said that Weekers plans to visit soon and will discuss
the matter.
For the Dutch, too, the benefits are ambiguous. The sums involved in its network of brass-plaque
companies may sound enormous—money flows are more than 10 times annual Dutch GDP—but the
country is little more than a means of transit for most of that. The 12,000 Special Financial
Institutions contributed EUR 3.4 billion to the Dutch economy, according to a report by Amsterdam
University's Centre for Economic Research (SEO)—that amounts to less than half a percent of Dutch
gross domestic product (GDP).
Source: Reuters
ASIAN TIGER KOREA TAKES WATCH OVER A WOLF
Korea, a so-called Asian Tiger Economy, is taking notice as Mongolia runs with its title the ―Wolf
Economy.‖
Mongolia's recent windfall from mineral resources has caused a lot of hand wringing among its
political class and fierce debate in recent elections. After the so-called ―resource curse‖ laid low
energy-producing nations in the 1990s, Mongolians worry resource wealth could actually hinder
economic growth, as well as exacerbate corruption and atrophy in other economic sectors.
―Of course we understand the risks,‖ said Mongolian Ambassador to Korea Baasanjav Ganbold.
―Mongolia is working hard on the country's legal framework for investment in its strategic sectors
including mining. [The legal framework] should be very finely tuned so that regulations do not scare
off foreign investors but, at the same time, also establish clear limits.‖
Two-way trade between Mongolia and South Korea totaled USD 500 million in 2012, making Korea
Mongolia's fourth-biggest trading partner after China, Russia, and Japan. Korea is also Mongolia's
seventh-largest investor with cumulative investments of USD 300 million. Korea is involved in major
projects including Samsung C&C's plan to build a new international airport in Ulaanbaatar scheduled
to be completed in 2016. POSCO is now putting the finishing touches on a deal to build

Ulaanbaatar's fifth coal-fired power plant. Korean companies will also get a piece of a sprawling
USD 10 billion development project in Sainshand that will include coking coal plants, a copper
smelter, factories producing iron pellets and cement, and facilities to process food and make
clothes.
Ganbold said bilateral relations got a boost when former President Lee Myung-bak visited in August
2011. Lee upgraded ties to a ―comprehensive partnership.‖ People-to-people exchanges are at a
moderate level with about 100,000 people traveling between South Korea and Mongolia in 2012.
Some 26,000 Mongolians live and work in South Korea and an additional 5,000 study there at
universities around the country. About 3,000 Koreans live in Mongolia.
Source: Korea Herald
COPPER, GOLD LEAD BROAD RALLY ON DOVISH FED SIGNALS
Commodities surged across the board on Thursday, led by gains in copper and gold—two major
exports of Mongolia—as signals from the U.S. Federal Reserve that it may maintain its economic
stimulus longer than previously expected revived the appetite for riskier assets.
Gold and copper prices jumped about 3 percent to their best in weeks, while oil hit multi-month
highs and rubber climbed 5 percent after minutes from the Fed's June meeting showed many among
the policymakers wanted more signs the U.S. job market was improving before cutting bond
purchases. Fed chairman Ben Bernake said separately that the U.S. central bank would continue to
pursue an accommodative monetary policy given tame inflation and a fragile labor market,
pressuring the dollar and making commodities priced in the greenback cheaper for holders of other
currencies.
Gold led the rally early in Asia as investors bought back the precious metal which has been
hammered by fears the Fed would soon cut back on its monthly USD 85 billion bond purchases.
Gold's price peaks in recent years had been driven by the easy U.S. monetary policy as investors
hedged against inflation. With physical demand in top gold markets India and China remaining
subdued, analysts were skeptical about the current upward momentum being sustained.
―We are likely to see a short-term rally in gold up to around USD 1,400 and then a fall back to
current levels,‖ said Amber MacKinnon, an analyst at Nomura Securities in Sydney.
Three-month copper on the London Metal Exchange rose 3.3 percent to USD 7,049.25 a ton, its
highest since 18 June. Benchmark copper on the Shanghai Futures Exchange climbed by its 5
percent daily limit to CNY 50,790 (USD 8,300) a ton.
Source: Reuters
WHEN THE ORDOS BUBBLE BURSTS
Ordos, a city in north China's Inner Mongolia Autonomous Region, used to be one of the richest cities
in the country for much of the same mining-driven reasons Mongolia has seen tremendous economic
growth, but its economy is now spiraling downward.
First, the coal industry, a pillar of the city's economy, lost momentum. Then the bubble in the local
real estate sector burst, and now Ordos has a new nickname: ―the ghost city.‖ Numerous
billionaires were created with the rapid growth of the city's coal industry over the past decade. The
average gross domestic product (GDP) growth of the city was as high as 18.5 percent in the past five
years, and GDP per capita reached USD 29,500 in 2012, higher than in some developed countries
such as Spain and South Korea.
Coal has been at the heart of the city's stunning economic growth over the last 10 years. In 2002,
the city reported total GDP of CNY 20.4 billion. In 2012, Ordos' GDP had grown nearly 17 times to
around CNY 365.7 billion. The coal industry reported total output worth CNY 300 billion last year,
accounting for nearly 80 percent of the city's GDP, media reports said. But amid the slowdown in
China's economic growth, the coal industry has suffered from a slide in demand. There has also
been increasing competition for cheaper imported coal from sources such as Mongolia.
A large part of the wealth accumulated through the coal industry over the past 10 years went to
real estate. So when the local economy cooled, the real estate bubble also burst. 2011 property
prices fell from highs of CNY 20,000 per square meter to around CNY 4,000 to CNY 5,000 per square

meter, and many residential projects have been left unfinished. The economic crisis has also piled
into areas such as the services sector, with media reporting that local restaurants and retail stores
have been hit hard by the city's economic problems.
―Ordos boasts very rich natural resources, but the city lacks a well-developed industrial chain... for
resource-rich cities, seeking a well-balanced industrial structure is vital,‖ Ma Guangyuan, an
economic commentator, said.
Source: People's Daily Online
CHINA'S ECONOMIC GROWTH SLOWS IN SECOND QUARTER
Growth in China, Mongolia's top trading partner, slowed to 7.5 percent in the second quarter of this
year amid efforts by the country's new leaders to rein in credit and pivot toward reforms. Monday's
economic figures are the second straight quarter of weaker economic growth in what is the world's
second and largest economy and came on lower investment and declining trade figures. Growth in
industrial output compared to a year ago fell to 8.9 percent from 9.3 percent in May, and for the
first time in a year, exports declined in June. But there is no sign from the Chinese central
government that they plan to intervene in the economy and inject more stimulus. The government
has set a growth target for 7.5 percent for 2013, and Monday's economic news raises the specter
that the country could miss it, which would be the first time since the Asian financial crisis that
China has not met its stated goal for economic growth. ―I think the second half will be even
weaker, ―said Zhu Haiban, a JP Morgan economist. ―Seven percent is probably the growth floor.‖
Source: Foreign Policy
CHINESE LEADERS HIT THE PAIN BARRIER
A shift in the tone of policy makers in Beijing and the United States is music to the ears of investors
in China. Mongolia is highly dependent on continued growth in China as Mongolia's own growth
depends on its neighbor to the south to consume the minerals it extracts.
The benchmark Shanghai Composite, while had fallen 13 percent his year, jumped 2.2 percent on
Wednesday and another 3.2 percent Thursday. Part of the reason: Federal Reserve Chairman Ben
Bernake's dovish comments that suggest the flow of easy money from the United States may not be
scaled back as soon as some had previously thought. Another important factor, though, was Chinese
Premier Li Keqiang's assertion Wednesday that Beijing will not let growth slip below an unspecified
minimum level needed to sustain labor markets.
That's a slightly different message than Beijing has sent in recent months. So far this year, Chinese
policy makers have repeatedly signaled a tough line on the economy, indicating they are willing to
accept slower growth in return for a more balanced economy in the long run. Now China's leader is
putting a floor under the slowdown and Chinese investors are cheering.
Previously the government unofficial target was for gross domestic product growth of 8 percent.
That's clearly not the case anymore. Growth is already below that level and economists expect
second-quarter data, due Monday, to come in at around 7.5 percent. The government's ability pump
the economy, though is limited. China's leaders do not want to encourage more binge borrowing.
Source: Wall Street Journal
POLLUTION LEADS TO DROP IN LIFE SPAN IN NORTHERN CHINA, STUDY FINDS
Southern Chinese on average have lived at least five years longer than their northern counterparts
in recent decades because of the destructive health effects of pollution from the widespread use of
coal in the north, according to a study released Monday by a prominent American science journal.
Residents of Ulaanbaatar, too, are grappling with the health effects from extensive coal burning
during winter.
The study, which appears in the proceedings of the National Academy of Science, was conducted by
an American, an Israeli and two Chinese scholars and was based on analyses of health and pollution
data collect by official Chinese sources from 1981 to 2001. The results provide a new assessment of
the enormous costs of China's environmental degradation, which in the north is partly a result of
the emissions of deadly pollutants from coal-driven energy generation. The researchers project that

the 500 million Chinese who live north of the Huai River will lose 2.5 billion years of life expectancy
because of outdoor air pollution.
―It highlights that in developing countries there's a trade-off in increasing incomes today and
protecting public health and environmental quality,‖ said the American member of the research
team, Michael Greenstone, a professor of environmental economics at the Massachusetts Institute
of Technology. ―And it highlights the fact that the public health costs are larger than we had
thought.‖ Greenstone said in a telephone interview that another surprising result of the study was
that the higher mortality rates were found across all age groups.
For every additional 100 micro grams of particulate matter per cubic meter above the average
pollution levels in the south, the life expectancy at birth drops by three years, the researchers
found. Greenstone said the estimate could be roughly applied to other developing nations where
the baseline level of pollutants was high. The health statistics recorded through the two-decade
period by Chinese officials and examined by the study's researchers showed that the 5.5-year drop
in life expectancy in the north was almost entirely due to a rise in deaths attributed to cardio
respiratory diseases or related health problems. Additionally, new data released from the 2010
Global Burden of Disease Study revealed that such pollution contributed to 1.2 million premature
deaths in 2010, or nearly 40 percent of the global total.
Source: New York Times
WHY CHINA WILL NOT BUY THE WORLD
China frightens the West—as well as the immediate north (i.e., Mongolia). Rarely, however, do
Westerners look at how the world looks to China. Yes, it has made enormous economic strides. But
it still sees a world economy dominated by developed economies.
Among the few Westerners able to look at the world from the Chinese point of view is Peter Nolan,
professor of Chinese development at Cambridge University. In a thought-provoking book published
last year, he addressed one of the big fears about China—that it is buying the world. His answer is
no: we are inside China, but China is not inside us. To understand what Nolan meant by this, one
must understand his view of what has happened during three decades of technology-driven global
economic integration.
China is a huge development success. But it has built that success on its willingness and ability to
offer its workers and markets to the world's producers. So from 2007 to 2009, foreign-invested
companies were responsible for 28 percent of China's industrial value-added; 66 percent of its
output from high-technology products; 55 percent of its exports; and 90 percent of its exports of
new and high-technology products. Thus, the country is a crucial contributor to systems managed by
foreigners. If the citizens and governments of advanced countries look askance at these global
companies, how much more so must the Chinese?
China is not buying the world. Between 1990 and 2012, the global stock of outward FDI soared from
USD 2.1 trillion to USD 23.6 trillion. High-income countries still accounted for 79 percent of this in
the latter year. Nolan pointed out that Chinese firms are not usually involved in major international
mergers and acquisitions. In view of its lack of natural resources, China is investing abroad in this
sector. But, even here, the scale of its foreign investments is dwarfed by those of dominant foreign
companies.
AUSTRALIA TO SCRAP UNPOPULAR CARBON TAX
Australia's Prime Minister Kevin Rudd said the country would abandon an unpopular carbon tax
earlier than planned, as he seeks to strengthen the Labor party's support ahead of a closely fought
election. In addition to being a competing coal supplier to China, Australia serves as a development
model for a mining-based economy such as Mongolia's.
The nation is one of the world's biggest per-capita polluters because of its heavy reliance on coal-
fired power for its resources industry. Since mid-2012, the country's top 500 polluters have been
charged about AUD 24 (USD 22) for each ton of carbon emitted into the atmosphere. It has been a
contentious policy that lost support for the minority Labor government and contributed to the

downfall of Rudd's predecessor, Julia Gillard, in late June.
―The government has decided to terminate the carbon tax,‖ Rudd said. ―This is a good day for
Australia.‖
Changing to a floating-price program similar to one in Europe by the middle of next year instead of
2015 would ease pressure on families and small businesses while protecting the environment, he
added. Recent opinion polls show that just weeks after returning as prime minister, Rudd already is
steering Labor closer to an election victory, turning the tables on his main rival Tony Abbot whose
conservative coalition had looked certain to win by a landslide.
Source: Wall Street Journal
COAL INVESTMENT CRUCIAL STARTING BLOCK FOR SOUTH AFRICA’S ENERGY PROGRESS
The need to create an environment conductive to coal-mining investment is the crucial starting
block of the South African Coal Roadmap expected by the end of this month—and the same goes for
Mongolia.
―That's the number-one priority right now. We need coal mines to come on stream quickly,‖ says
South African Coal Road map chairperson Ian Hall.
Commercial agreements need to be reached on the continued supply of coal to South Africa's state-
owned power utility Eskom; much more light also needs to be shed on coal's potential future status
as a strategic resource; and planning needs to begin now on the next base-load power station after
Medupi and Kusile. With a significant volume of South Africa's coal resources in the Waterbeg, coal
delivery from the Waterbeg region needs to be facilitated.
The South African region will remain an important source of seaborne supply to both the Pacific and
Atlantic markets and Eskom's current coal requirements of 120 million tons a year are likely to rise
to 160 million tons a year. From a global perspective, coal continues to be extremely dominant,
with the International Energy Agency calculating that coal will retain its first place as a primary
energy source for electricity generation for another 30 years. Coal, which contributed more than
natural gas and renewable energy put together, is continuing to meet half of the planet's energy
demand. In the last 13 years, China has increased coal production by more than 2.5 times, from
1.38 billion tons production in 2000 to 3.65 billion tons last year.
Source: Mining Weekly
IMF SLASHES GLOBAL GROWTH FORECASTS
The International Monetary Fund (IMF) has slashed its growth forecasts for 2013 and 2014 as it
warned of a slowdown in key emerging markets and a more protracted recession in the euro area.
In an update to April's World Economic Outlook, the IMF cut its global growth forecasts by 0.2
percentage points for both years, to 3.1 percent for 2013 and 3.8 percent for 2014. The downgrades
highlight the gathering clouds around the world economy as big developing countries—such as Brazil
and China—start to weaken before the developed markets have fully recovered. For 2014 the IMF
cut its growth forecast for Russia by 0.5 percentage points to 3.3 percent, for China by 0.6
percentage points to 7.7 percent and for Brazil by 0.8 percentage points to 3.2 percent.
―If you look country by country it seems to be specific... so in China it looks like unproductive
investment, in Brazil it looks like low investment, and in India it looks like policy and administrative
uncertainty,‖ said Olivier Blanchard, the IMF's chief economist. ―But you wonder whether there is
not something behind. I think behind this is a slowdown in underlying growth—not the cyclical
component but just the average rate,‖ said Blanchard. ―It's clear that these countries are not going
to grow as fast as they did before the crisis.‖
A permanently slower growth rate in big developing countries is likely to have profound
repercussions for the world economy and translate into weaker growth for advanced countries as
well. Blanchard said that there are ―signs of hope‖ in the euro zone, even as the IMF slashed its
growth forecasts further, predicting that the currency area will contract by 0.6 percent this year,
the same as in 2012. The fund also lowered its forecasts for the United States slightly, cutting them
from 1.9 percent to 1.7 percent growth from 2013, and from 2.9 percent to 2.7 percent for 2014.
That reflected a new assumption that sequestration of public spending will continue in 2014.

STUDY REVEALS FRESH INSIGHTS INTO PRZEWALSKI HORSE
Recent research that mapped the genome of a 700,000-year-old extinct species of horse may also
help settle a debate over the status of the Przewalski horse.
The debate has centered on whether the Mongolian equine is really wild and not domesticated, like
all other horse breeds. In one camp are the experts who consider the Przewalski horse to be a
separate species and the last true wild horse. Others believe they are subspecies, a wild offshoot of
domestic horses.
The Danish researcher who mapped the genome of the ancient extinct horse, taken from a piece of
bones removed from permafrost in the Yukon, Canada, compared the genome with that of a pre-
domestication horse, a modern donkey, five modern domestic samples and one modern Przewalski
horse. The researchers found all contemporary horses, zebras and donkeys originated four million to
4.5 million years ago—twice the conventionally accepted time to the most recent common ancestor
of genus Equus. The study also showed that many demographic fluctuations occurred in horse
populations in the past two million years, especially during the period of major climatic changes.
The study suggested that the Przewalski and domestic horse population diverged 38,000 to 72,000
years ago, and there has been no cross-breeding between the two types of horses.
These findings provide evidence that the Przewalski does indeed represent the last survivor of wild
horses, a view supported by striking physical differences compared to domesticated horses, as well
as an extra pair of chromosomes. The team also found the evidence supporting the continuous
selection of the immune system and the sense of smell throughout horse evolution, and dozens of
genomic regions that are likely to be taken as genetic markers during the domestication.
Przewalski horse, named after a Russian colonel who led an expedition into their nature rangelands
in 1881, were extinct in the wild for decades until a captive breeding program reintroduced them to
Mongolia in the mid-1990s. Given their truly wild origins, the researchers found wide genetic
diversity in the genome compared with the domestic horses, which is good news for conservation
efforts, given the limited numbers that survived.
Source: Horse Talk
EPIGRAPHS OF ANCIENT TURKIC PEOPLE DISCOVERED IN MONGOLIA
Two massive slabs of stone inscribed in ancient Turkic script have been found on the steppes of
eastern Mongolia, the first such discovery in over a century, a Japanese researcher said 16 July.
The epigraphs date from the mid-eighth century, said Takashi Osawa, a professor of ancient Turkic
history at Osaka University's graduate school. He said the finds may offer invaluable clues to the
political systems and institutions of the Gokturk people, who faced the Sui and Tang dynasties in
China in times of peace and war as they reigned over the steppes of Central Asia.
Osawa said he and researchers from the Institute of Archeology of the Mongolian Academy of
Sciences discovered remnants of two giant epigraphs in May at an archaeological site called Dongoin
Shiree. It is near Mount Delgerkhaan, 400 kilometers southeast of Ulaanbaatar. The discovery is
significant as it is the first of its kind since the three most renowned ancient Turkic inscriptions
were discovered in central Mongolia about 120 years ago, experts said.
―Other parts that remain buried in the ground may offer a record of the lives of the individuals
commemorated,‖ Osawa said.
Source: The Asahi Shimbun
NGO ESTIMATES AT LEAST THREE YEARS FOR LAKE KHUVSGUL CLEANUP
The Mongolian Eastern Force Union (MEFU) is organizing the Freshwater Ocean, Blue Earth
international forum from 18 to 21 July to discuss plans for the cleanup of Lake Khuvsgul.
Over 20 scientists and researchers from China, Russia, India, and South Korea will participate in the
forum to exchange experiences with Mongolian scientists on the protection of freshwater resources.
Together with four divers from Korea, MEFU plans to pull out the sunken boats and cars to remove
the garbage gathered at the lake.

―It is estimated that 70 percent of the 45 to 46 cars, tractors, and motorcycles at the bottom of the
lake are still fueled,‖ said Ts. Batbayar, head of the MEFU.
He said it would take three or four years to investigate the lake's bottom and locate where the
abandoned vehicles are located. In addition to vehicles, pollutants in the lake have left the lake 70
percent polluted. Pollution at Lake Khuvsgul will inevitably pollute Lake Baikal in Russia, a process
Russian experts say has already begun.
Cleanup would cost at least MNT 3 billion, said Batbayar.
Source: Info Mongolia
POLITICS
ELBEGDORJ SWORN IN PLEDGING RAPID DEVELOPMENT
Mongolia's re-elected President Tsakhia Elbegdorj was sworn in on 10 July promising rapid
development amid a resource boom.
The ceremony was held outdoors for the first time, in front of a huge statue of Chinggis Khan in
Ulaanbaatar. Several thousand supporters cheered after Elbegdorj, 50, wearing a long white
traditional deel and white hat, took the oath before the image of the warrior who unified the
nation 800 years ago and went on to build an empire stretching across Asia. The Soviet-trained
former military journalist and Harvard graduate helped overthrow Mongolia's 70 year-old one-party
system in 1990, and has twice served as premier. He was first elected president in 2009.
Roads would be built from each region to Ulaanbaatar, and the capital would have highways and a
metro. ―New towns will be built in Mongolia,‖ he added.
Source: AFP
PARLIAMENT CLOSES SPRING SESSION
Parliament concluded the spring session of Parliament on 10 July.
The session ended with approval for the resignation of S. Bayartsogt as head of the Executive
Committee of Parliament with R. Gonchigdorj as his replacement. N. Enkhbold was also chosen as
deputy head of the Executive Committee.
Parliament Chairman Zandaakhuu Enkhbold gave closing remarks summarizing the activities of
Parliament during the past session, including 26 combined sessions held in addition to 86 sessions
with the executive committee with other committees, the discussion of 13 laws, the passage of 45
amendments, the passage of 4 laws regarding international agreements, conventions and loan
agreements, the passage of 5 laws on the cancellation of some laws, discussions of specific articles,
and the making of 26 parliamentary decrees.
For the next session, Parliament decided it would focus on the development of a petroleum
processing plant, the launch of oil shale projects, and the continuation of infrastructure projects
using private-public partnerships. The next session of Parliament is due to begin 5 October.
MONGOLIA RANKS SECOND WORST ON 2013 GLOBAL CORRUPTION BAROMETER
Liberia and Mongolia received the worst feedback in Transparency International's 2013 Global
Corruption Barometer.
In both countries, 86 percent of residents believe corruption in the public sector is a very serious
problem, while residents in the vast majority of countries around the world believe corruption has
only gotten worse in the past two years. Transparency International surveyed residents in 107
countries, and the countries that received the worst complaints differ in many ways. Four are
located in Africa, three in Latin America, and two in Asia. These nations also vary considerably in
size and population. Mongolia has just 3.2 million residents, while Mexico, Nigeria and Russia are
three of the largest countries on the globe, each with more than 100 million people.
But what many of these countries do have in common is that their people are largely opposed to
corruption. Globally 69 percent of people questioned said they would report corruption if they

encountered it. Many of those surveyed in the worst faring countries also felt their governments
were not holding up their end of the bargain. In seven of the nine countries, more than half of
those questioned felt their government was ineffective at fighting corruption.
Corruption in Mongolia has been identified by USAID as a critical threat to the country's continued
growth as well as to its democracy. Corruption has become pervasive in the country, after ―rapid
transition to democracy and a market economy created huge demands on bureaucracy that lacks
the [means] to prevent corruption,‖ according to the organization. Encouragingly, less than half of
all people surveyed in the country said that corruption had increased in the past two years, versus
53 percent of respondents worldwide. Also, while 77 percent of people considered public officials
to be corrupt, just 12 percent believed the country's government to be run by a few large, purely
self-interested entities.
Source: USA Today
ADB PRESIDENT VISITS MONGOLIA
Asian Development Bank (ADB) President Takehiko Nakao expressed ADB's full support for the
government of Mongolia's vision of modernizing its capital and applauded its intentions to invest in
infrastructure that directly improves the lives of citizens.
―As in other rapidly growing Asian countries, the primary challenge of growth is to ensure that its
benefits are shared broadly including those living in cities and in the countryside. They key will be
to ensure that standards of living and especially job opportunities are well balanced across the
country,‖ Nakao said at the official opening of the Takhilt Road, a seven-kilometer road linking the
ger district and the center of Ulaanbaatar.
Since Mongolia joined ADB in 1991, Ulaanbaatar's population has almost tripled, placing great
strains on the city's ability to cater equally to its citizens. To help alleviate this problem, ADB is
working with the Mongolian government to provide safe, sustainable, and reliable water supply,
sanitation, and solid waste collection. Commending Mongolia's rapid economic growth, Nakao said
he agreed with and encouraged the government's progressive policies for improving macroeconomic
stability, investment climate, private sector development, and deepening of the financial sector.
He also noted that the country was on track to achieve Millennium Development Goals on education
and health.
Source: MENAFN
FINANCE MINISTER REQUESTS LOAN FROM ADB FOR INFRASTRUCTURE
Finance Minister Chultem Ulaan requested a loan [the Source does not specify amount -ed] from the
Asian Development Bank (ADB) during a visit to Mongolia by the bank's president.
Ulaan met with ADB president Takehiko Nakao on 17 July, where they discussed their past
relationship together and where they could move forward with their partnership. Nakao advised
that Mongolia take care in the management of the funds pouring in from the mining boom and bond
sales in recent years. Ulaan noted that Mongolia saw 70 percent of its gross domestic product come
from private companies and encouraged the bank to cooperate with Mongolia's private businesses.
―The ADB supports Mongolia's bond trade at its [Mongolian tugrug] currency on the international
stock market,‖ said Ulaan. ―Issuing bonds in domestic currency would raise Mongolia's reputation,
stabilize income from mining exports, protect from currency risks and further would allow not only
the government but also the Development Bank of Mongolia and private companies to trade bonds
in Mongolian currency on international markets.‖
The finance minister made his request during the meeting for the loan, which he specified should
be denominated in the tugrug, for infrastructure that would benefit the private sector.
INDIAN RENEWABLE ENERGY MINISTER VISITS UB
An Indian union minister for renewable energy visited Ulaanbaatar for two days for President
Tsakhia Elbegdorj's inauguration on 10 July.
Minister Farooq Abdullah offered to cooperate with Mongolia in developing its renewable energies

sector as well as human resources development. Also during his visit, the Indian minister met with
Foreign Minister Luvsanvandan Bold and Environment Green Development Minister Sanjaasuren Oyun
during his visit. He also paid respects to the Pethub Monastery in Ulaanbaatar, met with monks, and
observed the Naadam activities taking place in the city.
Source: Hindustan Times
MONGOLIA PARTNERS WITH AUSTRALIA FOR CLEAN WATER
A working group led by the Ministry of Environment and Green Development visited Western
Australia's water supply and treatment system.
During the visit, Terry Redman, Australia's Minister for Training and Workforce Development; Water;
Forestry, received Mongolian delegates and spoke positively of the possibility of training Mongolians
as water experts, as well as sharing the latest water study and water supply technology. He went on
to talk to delegates about further cooperation opportunities with Mongolia.
Source: UB Post
MONGOLIA TAKES TIES WITH CHINA AS A TOP PRIORITY, SAYS ALTANKHUYAG
Prime Minister Norov Altankhuyag said Wednesday that Mongolia always takes its relations with
China as one of the top priorities of its foreign policy.
Altankhuyag, who is also chairman of the ruling Democratic Party (DP), made the remarks while
meeting with Zhao Leji, head of the Organization Department of the Central Committee of the
Communist Party of China (CPC). Altankhuyag said Mongolia firmly adheres to the important
consensus that Mongolian leaders reached with Chinese President Xi Jinping on consolidating
strategic mutual trust and promoting pragmatic cooperation. He said Ulaanbaatar will collaborate
closely with Beijing and work out and implement a mid-and long-term development plan for the
Mongolia-China strategic partnership and push forward the advancement of bilateral ties
comprehensively.
The DP is ready to continue to consolidate and deepen friendly exchanges and cooperation with the
CPC at various levels in all fields, the prime minister said. Zhao said the China-Mongolia ties are
important to each other. The CPC and the Chinese government pay close attention to consolidating
and boosting the strategic partnership with Mongolia and are willing to keep close exchanges with
the Mongolian side to enhance political mutual trust, deepen practical cooperation, activate
cultural and people-to-people exchanges, and realize a mutually beneficial win-win scenario, Zhao
said. The CPC will further beef up friendly exchanges and cooperation with the DP and other major
political parties in Mongolia and commonly promote an in-depth development of the strategic
partnership between the two countries, he said.
During his visit to Mongolia, Zhao also met with Deputy Prime Minister Dendev Terbishdagva and
other political leaders.
Source: People's Daily Online
JAPANESE MINISTER LEAVES FOR MONGOLIA TO DISCUSS N. KOREA'S ABDUCTIONS
Japanese state minister Keiji Furuya, who handles the issue of North Korea's abductions of Japanese
nationals, on Monday left Tokyo for Ulaanbaatar to discuss the issue with Mongolian government
officials.
While attending the inaugural ceremony Wednesday last week of re-elected President Tsakhia
Elbegdorj as a special government envoy, Furuya presented Prime Minister Shinzo Abe's letter to
Mongolian officials to seek the country's support to move forward the long-stalled abduction issue,
given Mongolia's diplomatic ties with North Korea. Before his departure at Narita airport for a four-
day visit to Mongolia, Furuya told reporters that he had hoped to discuss the strengthening of their
bilateral partnership and the abduction issue to obtain cooperation in solving the issue.
North Korea's abductions of Japanese nationals in the 1970s and 1980s remain a key obstacle to the
normalization of ties between Tokyo and Pyongyang. North Korea has yet to re-investigate the cases
as promised. Mongolia has played a key role as a liaison between Japan and North Korea and hosted
senior working-level talks between Tokyo and Pyongyang last November.

Source: Global Post
EXPERTS BACK GOLD MOUNTAINS OF ALTAI AS WORLD HERITAGE SITE
Experts from China, Russia, Mongolia and Kazakhstan agreed Thursday on the necessity of a bid for
including the extension of the Golden Mountains of Altai on the World Heritage list.
The experts will gradually work out their criteria on the candidate regions in the extension of
Golden Mountains of Altai for application for the World Heritage list. The experts were expected to
sign a memorandum of understanding on cooperation guidelines in this regard, according to an
international workshop in Ulaanbaatar that ended Thursday. According to the decision of the World
Heritage Committee 22nd Session, the Golden Mountain of Altai in Russia had been inscribed under
natural criterion in 1998, and another World Cultural Heritage site—the petroglyphic complexes of
the Mongolia Altai—is located near it.
To better protect the natural landscape and cultures, China, Russia, Mongolia, and Kazakhstan will
coordinate their efforts for the application of the extension of the Golden Mountains of Altai.
Source: Xinhua
UB COUNCIL APPROVES NAME CHANGE FOR SUKHBAATAR SQUARE
The head of the city of Ulaanbaatar's Mayor's office introduced a resolution to the Citizen's Council
that would change the names of streets and public spaces throughout the city.
A majority of members agreed to rename Sukhbaatar Square to one bearing the name of Chinggis
Khan. The Council reported they had received several requests for the change from science
institutes, researchers, citizens, and non-government organizations.
Although the name might change, the statue of Sukhbaatar, who is recognized as a hero for
Mongolia's 1921 revolution, is expected to remain standing.
Source: News.mn
MPP OPPOSES CHANGE TO SUKHBAATAR SQUARE'S NAME
The Mongolian People's Party has objected to a proposal to change the name of Sukhbaatar Square
to one bearing the name of Chinggis Khan.
―The city council has no right to change the name of Sukhbaatar Square,‖ said MPP General
Secretary G. Zandanshatar in a press conference attended also by General D. Sukhbaatar's
granddaughter. ―For example, the law adopted by the State Great Khural [Parliament] on
demonstrations states 'Sukhbaatar Square.' If they don't meet our demands, we will take further
measures.‖
He added that Mongolia should show more respect for such a celebrated individuals, and decried
authorities for making the decision without taking into account the feelings of the public.
―This decision was made while there were festivals and vacations, which opposes democratic
principles,‖ said Zandanshatar.
MPP TO HOLD CONVENTION IN JULY
The Mongolian People's Party (MPP) will hold a convention on 20 July to discuss the results of the 26
June election.
During the conference a reform sect of the party will gather together to discuss whether or not the
current party heads should be held responsible for the loss of the last three elections held and
should be forced to resign from their posts. Divergence in the party has spread after the loss of the
parliamentary and local elections in 2012 in addition to this year's presidential election. The party
lost support partly due to the break-off party, the Mongolian People's Revolutionary Party (MPRP),
led by incarcerated former President Nambar Enkhbayar.
Traditionally party chiefs are selected as candidates for the presidency, but this year MPP members
voted in favor of former wrestler Badmaanyambuu Bat-Erdene. The decision brought some scrutiny
to the party's leadership, which is headed by U. Enkhtuvshin.
Source: Business-Mongolia.com

IAAC RAIDS ENKHBAYAR'S HOME
The Independent Authority Against Corruption (IAAC) raided the home of former President Nambar
Enkhbayar on Wednesday 17 July.
The IAAC has not made an official statement for the reason for the raid, but according to supporters
of the Mongolian People's Revolutionary Party (MPRP) who witnessed the raid, the agents carried a
box out of the incarcerated former president's home. Agents left Enkhbayar's home at 10 p.m. that
evening.
―The legislature does have the right to do this, but the prosecutor hesitated to show a search
warrant to us,‖ said lawyer L. Erdenetuul, who is a member of the MPRP. ―The agents also raided
the homes of the former president's son, Batshugar, and his girlfriend. However, we believe such an
action was illegal because they are not married.‖
Source News.mn
IAAC ARRESTS FORMER ERDENET MINING DIRECTOR
A former director general of Erdenet Mining Corp. was arrested following last week's Naadam
celebrations.
No comment has been given to explain the arrest of Ch. Ganzorig, but there is some speculation
that the arrest may have something to do with loans to a private company under the Mongolian-
Russian joint venture Erdenet Mining Corp.'s guarantee, said Justice Minister Khishigdemberel
Temuujin. Other observers have speculated the arrest may be linked to incarcerated former
President Nambar Enkhbayar's corruption case, however this has not been confirmed.
Source: News.mn
MONGOLIA'S JUNIOR GENGHIS KHANS FACE RISING RISKS
Just before little Baasanjav Lkhagvadorj was lifted onto a horse for a race across Mongolia's open
steppe, he asked his father to bless him with a kiss. Minutes later the seven-year-old was killed in a
fall, the latest in a rising toll among the country's child jockeys.
As Mongolia's biggest national festival, Naadam, began last week on Thursday, controversy is
mounting over the way unprotected young riders are risking injury and even death. A healthy
ministry study showed that 326 children were treated for racing injuries at the National
Tramautology and Orthopaedics Research Center in Ulaanbaatar alone last year, up from 222 in
2010. But accidents in the countryside, where most of the population live, often go unrecorded.
Lkhagvadorj's death was the third recorded child fatality so far this year, according to Baljinnyam
Javzankhuu of the National Agency for Children, adding there had been more than 20 in the past
decade.
As well as the official Naadam races, newly wealthy owners—reportedly including MPs and state
officials—have taken to organizing barely regulated competitions of their own in ever increasing
numbers, particularly since Mongolia liberalized its economy after the advent of democracy in 1990.
Private races have looser rules, can be held in winter when conditions are more risky, and now that
the country is enjoying a resources boom betting on them is said to sometimes reach as much as
USD 600,000. But according to child rights defenders children can be hired informally to take part
for as little as a bicycle, a set of schoolbooks, or up to MNT 150,000.
―The rich should stop making children victims of entertainment,‖ she said of the private races.
―When children die [the families] don't even get any compensation.‖
The Ministry of Culture, Sport and Tourism is preparing a new law that will ban children under 16
from taking part in private events. But no decision has yet been made on changing the minimum age
for official races. Traditionalists, however, defend the practice. Adya Bayarmagnai, advisor to the
Mongolian Equestrian and Horse Trainers' Union, and an owner and trainer himself, said that only ―a
tiny percentage‖ of children have accidents.
Source: Sydney Morning Herald

NEW MONGOLIAN LAWS
The following law was published in the latest weekly Government bulletin. Unless otherwise
decided by Parliament, they will take effect ten (10) days after publication.
Date Law
10.07.2013 Law on Acknowledgement of President's Election, Full Power
Please visit BCM's website, Legislative Working Group, for a summary of new Mongolian laws. BCM
members who wish to access complete versions of the laws and regulations in Mongolian language
are welcome to email the BCM office: info@bcmongolia.org.
ANNOUNCEMENTS
4th MONGOLIA INVESTMENT SUMMIT HONG KONG, 18-20 NOVEMBER, HONG KONG
Bringing the best of Mongolia‘s investment opportunities to Asia‘s leading investment hub.
Featuring a line-up of Government representatives, business leaders and international investors, the
4th Annual Mongolia Investment Summit provides investors and companies seeking to do business in
Mongolia with a thorough update of Mongolia‘s investment and business climate and showcases its
actual investment opportunities. Key sectors covered include Mining and Mining Services,
Infrastructure, Energy, Financial Services, Retail, Real Estate, Construction and Agribusiness.
Mongolian companies and Mongolia-focused funds seeking to meet with investors and potential
business partners should make attendance at Mongolia Investment Summit Hong Kong 2013 their
number one priority. Click here to download the latest brochure.
BCM members enjoy 15% discount; please quote Priority Code 695BCM15D during registration.
___________________________________________
MINING MONGOLIA AND POWER AND RENEWABLE ENERGY MONGOLIA, 19-21 SEPTEMBER
Mining Mongolia and Power and Renewable Energy Mongolia will be held from 19 to 21 September at
the Buyant-Ukhaa Sports Complex in Ulaanbaatar.
120 companies from 18 countries including pavilions from Australia, Canada, Korea and Germany
will display a wide range of technology, supplies and services for the mining and electric power
generation and transmission sector; on a scale never before seen in Mongolia. Inside and outside
displays, providing a first opportunity for buyers to see technology and learn about new mining and
electric engineering service from industry experts.
BCM is a supporting organization. Register at miningandconstructionmongolia.com or for priority
booking email mongolia@chinaallworld.com.
___________________________________________
BCM LINKS UP WITH RAFFLES HOSPITAL SINGAPORE
Raffles Hospital is a tertiary care hospital and the flagship facility of Raffles Medical Group, a
leading private integrated healthcare provider in Singapore and South East Asia since 1976. Backed
with 30 years of delivering quality medical care, the Raffles brand name is synonymous with quality
and trust and offers a patient centric approach in delivering healthcare services.
The hospital gives a special condition for BCM members to enjoy discounts for treatment at Raffles
Hospital, Singapore:
• 10% discounts on Raffles Enhanced 2013 packages (medical checkup)
• 10% discounts on consultation fee (Raffles Specialist Centre)
• 10% discounts on ward room rates (Raffles Hospital Inpatient)
• 10% discounts on regular-priced Raffles Health Supplements and Raffles Kids Supplements
For further enquiries or to make appointment, please email
enquiries_mongolia@raffleshospital.com and for more information about Raffles Hospital, visit our

website at www.raffleshospital.com.
___________________________________________
BCM’S MINING SUPPLY CHAIN DATABASE
BCM‘s Mining Supply Chain Database is in use. Following the initiative of Oyu Tolgoi LLC, the BCM
has maintained the Mining Supply Chain Database since March 2009. It is an honor to introduce you
to the new version of the database which is totally upgraded as to its content and use of
information technology opportunities.
As of December 31, 2012 suppliers registered on the database totaled 1,405. During 2012, 251 new
supplier entities joined the Database and 236 prior supplier registrants updated their company
profiles. In addition, 22 buyers were also registered and 82 tender announcements were posted.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration—FREE!
If you have any questions regarding the database, please contact 317027.
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
The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks
and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the
Business Council of Mongolia (BCM) and UB Risk Management Consulting:
• Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн
засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,
ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын
19
• Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,
Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ
ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага
хурал, 2013 оны 4 дүгээр сарын 19
• Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,
Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын
албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,
СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4
дүгээр сарын 19
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', ‘MONGOLIAN BUSINESS NEWS’,
‘PHOTO GALLERY’
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available.
• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting
April 22, 2013
• Brian White, Editor, The Mongolist – ―Analyzing Mongolian Politics from the "Middle Layer", at the

BCM Monthly meeting Apr 22, 2013
• Ch. Otgochuluu, Head of Strategic Policy and Planning Department, Ministry of Mining, ―Brief
introduction on mining policy‖ at the BCM monthly meeting Apr 22, 2013
• ―The current flow of investment into Mongolia‖, S. Bold, Chief Economist, Central Bank, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• ―About regulation on FDI‖, S. Javkhlanbaatar, Foreign Investment Regulations and Registration
Department Head, Ministry of Economic Development of Mongolia, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• ―Legal issues of regulation of foreign investment‖, B. Amarsanaa, Academic Secretary of National
Legal Institute, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference
on April 19, 2013 at the Kempinski Hotel.
• ―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, D. Gan-Ochir, Head
of Financial Stability Council, Advisor to President of Central Bank, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• ―On current state of equities foreign investment‖, D. Achit-Erdene, CEO, MICC, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• ―Market Update‖ by Mandal General Insurance LLC
• ―Annual Report 2012‖ by International Monetary Fund
• Ruth Pulaski, Director Marketing & Development, American University of Mongolia – ―American
University of Mongolia: Integrating a Liberal Education Approach to Learning‖ at the BCM monthly
meeting, March 25, 2013
• B. Bayar, Managing Director, ELC LLC – ―Update on Legal Developments Regarding Foreign
Investment‖ at the BCM monthly meeting, March 25, 2013
• Tony Burchill, Australian Consul-General & Trade Commissioner, Austrade – ―The Business of Being
a Third Neighbor‖ at the BCM monthly meeting, March 25, 2013
Other recently added presentations:
• Dr. Brian Fisher, Managing Director, BAEconomics, "Economic Impact of draft Minerals Law" at the
Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Dr. Ch. Khashchuluun, CEO of UBRM Consulting, ―Mongolia and Mining, The policy evolution:
What's the next?‖ at the Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Martin Pow, Partner, Enterprise Risk Services and Learning Leader, Deloitte Onch LLC, ―Black
Swans: Fact or Fiction,‖ A different risk management philosophy at the BCM Risk Management
Working Group meeting, March 14, 2013
The following 3 presentations were added from Coal Mongolia, 21-22 February:
• ―Current state of coal sector of Mongolia and future trends‖ by Minister of Mining D. Gankhuyag at
the Coal Mongolia 2013, Feb 21, SS Convention Center, Ulaanbaatar;
• ―Economic Reform Objectives‖ by Vice Minister, Economic Development, H.E. Mr. O. Chuluunbat
at the Coal Mongolia 2013, Feb 21, SS Convention center, Ulaanbaatar;
• ―Presentation for Coal Mongolia 2013‖, Norihiko Kato, CEO of Khan Bank, Feb 21 at the SS
Convention Center, Ulaanbaatar, Mongolia.
• Presentation by Bold Baatar, CEO of Altan Dornod Mongol, ―Mongolian Mining Investment
Environment‖ at the Mining Industry Open Discussion, February 1, 2013, at Kempinski Khan Palace
Hotel.
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―Selected Macroeconomic Indicators for Mongolia, as of June 2013‖ by International Monetary
Fund;
- ―Polit Barometer April, 2013‖ by Sant Maral Foundation;

- ―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‖;
- ―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.
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.
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.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
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.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,174 fans on our Facebook fans page, 1,243 connections on LinkedIn network, and
692 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.

INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
June 30, 2013 *8.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 7.6% y-o-y, Ulaanbaatar city, June 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]
CURRENCY RATES – JULY 18, 2013
Currency Name Currency Rate
US dollar USD 1,470.36
Euro EUR 1,926.39
Japanese yen JPY 14.67
British pound GBP 2,229.43
Hong Kong dollar HKD 188.55
Chinese Yuan CNY 239.48
Russian Ruble RUB 45.37
South Korean won KRW 1.30
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.

19.07.2013, NEWSWIRE, Issues 282 283

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