23.09.2013, NEWSWIRE, Issue 292

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 292 – September 20, 2013
NEWS HIGHLIGHTS:
Business
 Mining Minister announces completion of OT audit;
 Supreme Court rules against Oyu Tolgoi for wrongful termination;
 Turquoise Hill announces resignation of Jacques as board director;
 Erdenes TT looks to hire advisors in management, finance, and legal;
 Tavan Tolgoi approves power plant pre-feasibility study;
 Mongolia to take Areva uranium stake to help revive investment;
 MSE publishes financial reports of about 200 listed companies;
 Petro Matad awards seismic contracts;
 MGG cancels private placement offering;
 AUM receives grants for resources;
 ING celebrates 5 years in Mongolia;
 Mongolian Properties celebrates opening of real estate office;
 Demystifying Mongolia conference held in W. Australia;
 PetroChina may emerge stronger after huge corruption probe.
Economy
 Mongolia to sell up to USD 1 billion in Samurai bonds, premier says;
 Coal export income decreased by 45 percent;
 Mongolia tugrik rivals Syria and Iran as biggest exotic currency loser;
 Economy suffers as another row erupts over flagship mining project;
 Mongolia seeks to ease dispute over mine;
 Russia-China paved road open by October;
 Central Bank sets MNT 1,700 exchange rate threshold;
 Mongolia falls on WEF Global Competitiveness Index;
 Mongol Bank makes pledges for the economy;
 New film shows Mongolia's nomads looking for leftovers, the precious kind;
 The boy genius of UB;
 Chinggis Khan, the father of 8% of Asian males;
 Emerging markets slumping as developed economies crawl out of crisis;
 Mining: Hazards of the frontier;
 Mining M&A standoff tests bankers' patience and skills;
 China pledges to cut coal consumption;
 Mongolia's choices on economic development.
Politics
 Parliament debates new Investment Law;
 Mongolia to bring in more revenue with new laws for gold mining;
 Task force formed for Long Named Law;
 Mongolia environmentalists held after shot at parliament;
 Mongolia agrees to join talks on abductions;
 Chinese, Mongolian presidents meet on promoting cooperation;
 Chinese VP meets Mongolian Defense Minister;
 2013 Selenge military exercise held 11-18 September;

 Mongolia attends SCO summit;
 Denver gardeners visit UB;
 Mongolia boosts ties with East Asian neighbors;
 New fund to create new financing opportunities, says Mandal Asset Management;
 IAAC arrests Clean Air Foundation officials for graft;
 Toriin Bank officials to see reduced sentences for graft charges;
 CTU protests;
 Mongolia: India's friend and future in North East Asia.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank
International SOS
Wagner Asia Automotive Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BUSINESS
MINING MINISTER ANNOUNCES COMPLETION OF OT AUDIT
Mining Minister Davaajav Gankhuyag is prepared to deliver a summary of a government-led audit of
the first phase of development at the Oyu Tolgoi copper mine at the next meeting of the Cabinet of
Ministers. Gankhuyag, who led the working group responsible for the audit, said the results
indicated that costs for initial development at Oyu Tolgoi had exceeded the initial estimate by 80
percent.
The Oyu Tolgoi mining unit and the Mongolian Government have disputed over the costs of
construction of the mining facility, concentrator, and open-cut mine, with the government claiming

it some USD 2 billion over budget. Oyu Tolgoi, however, claims costs are USD 800 million above the
feasibility study estimate, or 13 percent, totaling USD 6.49 billion. The dispute prompted
government to call a 20-person working group to investigate the costs.
Source: Oyu Tolgoi LLC
SUPREME COURT RULES AGAINST OYU TOLGOI FOR WRONGFUL TERMINATION
Oyu Tolgoi LLC lost its appeal with the Supreme Court in a wrongful termination suit by former
employee Sainkhuu Gantuya. The Supreme Court has ruled in favor of Gantuya, who says she was
wrongfully terminated in spring 2012 after she complained to management about wage disparity.
The decision awards Gantuya with back salary since her termination and will allow her to return to
her position at Oyu Tolgoi. She told media earlier this month that if she won she planned to return
to her job and that she would work with the company's trade union to resolve the issue of wage
disparity.
Gantuya is the sister of MP Sainkhuu Ganbaatar, one of the most vocal critics of the Oyu Tolgoi
mine in Parliament.
Source: Zuunii Medee
TURQUOISE HILL ANNOUNCES RESIGNATION OF JACQUES AS BOARD DIRECTOR
Turquoise Hill Resources Ltd. announced 17 September the resignation of director Jean-Sébastien
Jacques.
Jacques is resigning from the Turquoise Hill board in order to fully concentrate on his many
responsibilities as chief executive of Copper at Rio Tinto Group. A new Rio Tinto-nominated
director will be announced in due course.
Source: Turquoise Hill Resources Ltd.
ERDENES TT LOOKS TO HIRE ADVISORS IN MANAGEMENT, FINANCE, AND LEGAL
Erdenes Tavan Tolgoi LLC on 13 September announced three tenders up for bidding for consultancy
services.
The three tenders are for financial, management and legal consultancy. The financial consultant
would chiefly advise on infrastructure development. For the management consultancy, Erdenes TT
is looking for a internationally recognized engineering and architectural firm to advise on mining
planning, engineering, procurement, and construction. For the legal constancy, the state-owned
miner is seeking a company with at least five branches in the world's biggest cities as well as
experience operating in China. The legal advisor would also have experiencing consulting on coal
sales and other contract negotiations.
Source: Unuudur
TAVAN TOLGOI APPROVES POWER PLANT PRE-FEASIBILITY STUDY
Erdenes Tavan Tolgoi LLC announced its approval of a feasibility study for a 300-megawatt power
plant.
Officials discussed the feasibility study, which was compiled by MCS International LLC and Worley
Parsons Ltd., during a meeting of the Ministry of Energy's Science and Technology Board. The head
of the power station project, M. Enkhsaikhan, gave an update on the progress of the project and
plans for financing it, while Ch. Davaakhuu, vice president of operations and project management
at Mongolian Mining Corp., presented the technical specifications.
Construction of a power plant at Tavan Tolgoi was included in the 2011 Government Action Plan for
providing energy to the Gobi region for its communities and mining operations.
Source: News.mn
MONGOLIA TO TAKE DOMESTIC AREVA URANIUM STAKE TO HELP REVIVE INVESTMENT
Mongolia will take a stake in a domestic uranium venture led by France‘s Areva SA and support its
development, signaling the nation‘s willingness to revive foreign investment, said Prime Minister
Norov Altankhuyag.

―Through this we see that foreign investors are continuing to invest in Mongolia,‖ Altankhuyag said
in an interview in Tokyo on 14 September, at the end of a four-day visit.
Mongolia will take a 34 percent share of the uranium mining unit of Areva Mongol LLC, he said,
adding that this is the level of ownership under domestic law that designates a strategic deposit.
Areva Mongol owns 27 uranium exploration permits in the country and is seeking to upgrade them to
allow mining. It is negotiating an equity interest with state-owned MonAtom LLC. Japan‘s largest
trader, Mitsubishi Corp., is also a potential investor.
Mongolia‘s premier is seeking to revive direct foreign investment, which shrank by 42 percent, or
USD 1 billion, in the first half of the year, due to stricter regulation of overseas companies and the
government‘s dispute with Rio Tinto Group.
The ―hiccups‖ in Mongolia‘s economy are not unexpected and longer-term investors realize that the
issues are par for the course in an emerging market, said Howard Lambert, chief representative of
ING Groep NV in Mongolia, the first foreign lender to open an office in the country. ―Investors want
stability and they want transparency,‖ Lambert said in an interview from Ulaanbaatar. ―In emerging
markets it‘s rare to have all those things at the same time and for extended periods of time.‖
Areva has explored for uranium in Mongolia since 1997 and has 144 staff in the country, according
to its website. MonAtom‘s stake would be in Areva Mongol‘s unit, Areva Mines LLC, the company
that will produce the uranium. Mitsubishi is waiting for Mongolian government approval to exercise
its option on Areva Mongol shares, Japan‘s biggest trading company said in an emailed response to
questions. The approval is expected in the near future, Mitsubishi said.
Source: Bloomberg
MSE PUBLISHES FINANCIAL REPORTS OF ABOUT 200 LISTED COMPANIES
The Mongolian Stock Exchange (MSE) announced the publishing of financial reports of listed
companies on 16 September.
As of 13 September, 182 companies had provided their 2012 year-end financial statement, and 48
companies have provided their statements for the first half of 2013. The reports can be downloaded
here.
Source: Mongolian Stock Exchange JSC
PETRO MATAD AWARDS SEISMIC CONTRACTS
Petro Matad Ltd. said Mongolian geophysical contracting company Khet Co. had been awarded the
contract for the acquisition of 200 kilometers of 2D seismic on Blocks IV and V in Western Mongolia.
Khet has previously been engaged by Petro Matad and successfully acquired 2D seismic data in 2011.
This seismic survey is planned to commence around 1 October 2013 and is expected to take
approximately six weeks to complete.
The seismic program is designed to provide detailed coverage over two prospect areas identified
from earlier seismics and is expected to confirm at least two locations for drilling in 2014.
Source: Stock Market Wire
MGG CANCELS PRIVATE PLACEMENT OFFERING
Mongolia Growth Group (MGG) Ltd. on 16 September announced the withdrawal of its previously
announced offering of units. Due to unsettled market conditions, the company has opted to cancel
its current capital raise.
MGG ended the second quarter with USD 5.7 million in unrestricted cash and has no substantial
capital outlays planned.
Source: Mongolia Growth Group Ltd.
AUM RECEIVES GRANTS FOR RESOURCES
The United States has granted USD 10,700 to American University of Mongolia's English Language
Institute to establish a resources center.
The English Language Resource Center will be located at AUM and will house a large number of
materials both for students and teachers, such as textbooks, audio discs, graded readers, and

reference materials. This grant should allow the English Language Institute (ELI) to purchase several
hundred books and CDs for use by registered students. The grant comes from the U.S. Department
of Small Grants.
In addition, the English Language Office at the U.S. Embassy in Beijing awarded ELI with a USD
1,200 grant specifically to purchase a set of 34 teacher development textbooks. These materials
will be used to enhance ELI teachers' knowledge of current practice in English language teaching
methodology and materials development.
Separately, two ELI teachers, Punsalmaa Batchuluun and Narantsetset Avarzed, were awarded a
scholarship by the U.S. Embassy in Ulaanbaatar to study in the E-Teacher Program for online
professional development. Batchuluun will study ―English for Specific Purposes‖ in order to enhance
her skills in developing curriculum and materials for learners with specific professional English
needs. Avarzed will study ―Critical and Creative Thinking‖ so that she can better encourage her
students to use English in ways that allow them to solve problems and come to unique conclusions
that are important to them.
Source: American University of Mongolia
ING CELEBRATES 5 YEARS IN MONGOLIA
ING Groep NV celebrated its five-year anniversary in Mongolia on 17 September at the Marshall
Palace in Ulaanbaatar.
ING Mongolia has seen great change in Mongolia since opening its representative office in Mongolia
five years ago to become Mongolia's first international bank with an office there. Since then foreign
investor interest has grown considerably, culminating last year with USD 3 billion raised by
Mongolian companies from international debt markets. In a statement, ING notes its role
―facilitating two-way capital flow‖ between Mongolia and the global financial sector.
―As the first international bank present in Mongolia, we have been helping international investors
decode and navigate the changing landscape of the past five years and we plan to offer our clients
on-the ground presence, international franchise and a proven track record going forward,‖ said
Howard Lambert, chief representative of ING Mongolia.
Source: ING Groep NV
MONGOLIAN PROPERTIES CELEBRATES OPENING OF REAL ESTATE OFFICE
Mongolian Properties held a drinks party to celebrate the opening of their newly refurbished
flagship office.
Mongolian Properties, a wholly owned subsidiary of Asia Pacific Investment Partners for real estate
advisory, sales and rental representation, celebrated the event with local dignitaries and local
press. Prior to the cutting of the ribbon, Lee Cashell, chief executive officer of Mongolian
Properties, welcomed guests and thanked them for their continued support and for enabling
Mongolian Properties to remain the largest and most highly regarded real estate agency in the
country. He continued by saying that this office represented the template for the future design of
Mongolian Properties other offices and that it came at an extremely exciting time for the company.
Cashell also said Mongolian Properties would be launching a new state-of-the-art website before the
close of the week.
Source: Asia Pacific Investment Partners
DEMYSTIFYING MONGOLIA CONFERENCE HELD IN W. AUSTRALIA
An international business forum called Demystifying Mongolia took place in Perth, Western Australia
on 11 September. The one day event was co-hosted by the Honorary Consul for Mongolia in Western
Australia and the Chamber of Commerce and Industry of Western Australia, and was organized by
the Honorary Consul and Aspire Mining Ltd.
The target audience for the forum was Australian investors already operating in Mongolia or wanting
to establish businesses there. Although Mongolia‘s natural resources wealth has attracted business
opportunities for international investors in recent years, there remains a level of uncertainty
regarding its culture, methodologies, and legal and political systems. Those uncertainties leave

many investors unsure of where to begin. Key speakers at the event were experienced leaders with
established businesses in Mongolia, such as David Paull, chief executive of Aspire Mining; Bill Colvin,
chief executive of Bayan Airag; John Miragliotta, manager of environment of Sustainability East
Asia; George Lloyd, managing director of Xanadu Mines Ltd.; and David Thomas, chief executive of
R2R Services. Professor Samir Chatterjee of Curtin University, Perth addressed the packed
auditorium on a presentation titled ―The Dilemma of a Nomadic Society Facing a Resource
Pressure‖. The day was characterized by a sense of positive belief that Mongolia would move
towards developing its resources using the latest technology for the benefit of its people and the
foreign investors. The day‘s business session was followed by a social evening with wine, khuumi
(traditional throat singing) and morin khuur performances by Enkhbayar, flown in from Canberra by
the Mongolian Embassy, and traditional dances by Zaya of Perth.
Source: Embassy of Mongolia in Australia
PETROCHINA MAY EMERGE STRONGER AFTER HUGE CORRUPTION PROBE
Nothing about PetroChina Ltd., the operator at the Tamsag oil field in Dornod, is small. It is China‘s
biggest company by market value, one of the world‘s largest producers of crude oil and, now, the
focal point of the biggest Chinese corruption investigation in years.
Chinese authorities have detained four senior PetroChina executives and its former chairman, in
addition to several bosses of smaller oil and gas companies that do business with PetroChina. The
investigations appear first and foremost to be about politics, aiming to cripple the support network
of Zhou Yongkang, the man who had run China‘s public security apparatus until last year and fell on
the wrong side of a leadership power struggle. The so-called ―petroleum faction‖ that had
coalesced around him has now been broken up.
The oil company has been a sluggish performer. When Jiang Jiemin took over as PetroChina‘s
chairman in 2006, the company‘s margin on earnings before interest and taxes was close to 24
percent. When he left at the start of this year, just months before he was placed under
investigation, its margin had fallen to 8 per cent. Its net debt-to-equity ratio rose from zero to
nearly 35 per cent during that time.
PetroChina‘s capital spending nearly doubled to CNY 353 billion (USD 58 billion) last year from CNY
182 billion in 2007. That funded a huge push into downstream refining and petrochemical
operations, which largely have been loss-making. This expansion is now set to slow. Analysts
forecast that PetroChina‘s capital expenditure will be lower this year than in 2012, the first annual
decline since its Hong Kong stock market listing in 2000.
PetroChina still faces two major regulatory risks. From abroad: Some observers have suggested that
PetroChina could face prosecution under the US Foreign Corrupt Practices Act because it has U.S.
depositary receipts listed in New York. From domestic: Laban Yu, head of Asian energy research
with Jefferies in Hong Kong, says Chinese officials may conclude that PetroChina had simply grown
too big for its own good, making corruption unavoidable and hence prompting them to cut it down
to size and perhaps even break it up.
Source: Financial Times
ECONOMY
MONGOLIA TO SELL UP TO $1B IN SAMURAI BONDS, PREMIER SAYS
Mongolia plans to sell as much as USD 1 billion worth of Samurai bonds this year and offer foreign
investors a new way into its largest coal project as Prime Minister Norovyn Altankhuyag seeks to
revive growth.
―This year we‘re hoping to launch a yen-denominated bond issue, which will be equivalent to as
much as USD 1 billion,‖ the prime minister said, citing expanding relations with Japan for the
fundraising plan.
Mongolia will also offer stock in its biggest coal project to foreign investors in power, rail and water
projects around the Tavan Tolgoi basin, he said.

Companies that build the infrastructure at Tavan Tolgoi, which has reserves of more than 6.4 billion
metric tons, will later have the chance to swap their investments for equity in the mine,
Altankhuyag said. Investors may also choose to get paid in coal, he said.
State-owned Erdenes Tavan Tolgoi LLC is in talks with China‘s Shenhua Group and Peabody Energy
Corp. of the U.S. on ―strategic partnerships,‖ Erdenes TT‘s Chief Executive Yaichil Batsuuri said.
Coal exports to China plunged to USD 542.4 million in the first six month of the year from USD 1
billion a year earlier as total first-half exports fell 10 percent, Mongolian state data show.
Mongolian Mining Corp., which accounts for 42 percent of Mongolia‘s coal exports to China, said last
month that average prices for its washed coal used in steelmaking fell 29 percent in the first half,
versus the same period of 2012.
The government sold its first international bonds in November with a USD 1.5 billion issue in the
U.S. currency. Yields on the 10-year government debt known as Chinggis bonds have risen 273 basis
points this year to 8.171 percent as of 13 September.
The Development Bank of Mongolia sold USD 580 million of five-year debt denominated in the U.S.
currency in March last year in its first public bond sale. The yield on the bonds rose to 8.99 percent
as of 13 September from a low of 3.833 percent on 23 October last year.
Source: Bloomberg
MONGOLIA TUGRIK RIVALS SYRIA AND IRAN AS BIGGEST EXOTIC CURRENCY LOSER
After Syria and Iran, Mongolia is delivering the world‘s worst currency returns this quarter as
tumbling international investment and coal revenue starve the country of the foreign exchange
needed to fund imports.
Mongolia‘s tugrik sank 15 percent to 1,692.50 per dollar since June 30, the third-biggest loss among
more than 100 foreign-exchange rates tracked by Bloomberg and the largest drop of about 80 exotic
currencies. The former Soviet satellite‘s tender weakened in all but three of the last 19 years and
sank to a record 1,728 on 1 September.
Currencies of some of the smallest developing economies are taking a hit at the prospect for the
Federal Reserve to announce a withdrawal of monetary stimulus reduces the cash pursuing higher-
yielding assets. A 15 percent drop in coal prices this year eroded earnings from Mongolia‘s biggest
export by 47 percent, while foreign direct investment to the nation slumped 46 percent, both
weighing on the tugrik.
―There‘s no foreign-currency revenue right now, it‘s simply not coming in,‖ Norihiko Kato, the
Ulaanbaatar-based chief executive officer of Khan Bank LLC. ―We may end up with a dollar
crunch.‖
China buys more than 86 percent of Mongolia‘s exports, leaving the country exposed to a slowdown
in Asia‘s biggest economy. Mongolia‘s exports dropped 5.9 percent to $2.7 billion in the first eight
months of 2013, while imports fell 8.6 percent to $4.3 billion, the government said September 10.
Coal exports declined to $693 million from $1.3 billion and accounted for 26 percent of total
shipments. The nation ranked seventh among the world‘s top 10 coking coal producers last year,
according to the statistics office. Mongolia‘s central bank has intervened in the currency market
since November to stimulate business, promote growth and stem accelerating inflation, according
to Sandagdorj Bold, the bank‘s chief economist. Foreign-exchange reserves fell 27 percent to USD 3
billion in July from a year earlier, according to the Bank of Mongolia‘s website. Consumer prices in
Mongolia rose 9.4 percent in August from a year earlier, compared with 8.3 percent in July, the
National Statistics Office said 10 September.
Investors interested in the commodity-rich economy aren‘t ―running for the hills,‖ Howard Lambert,
the chief representative at ING Groep NV in Mongolia. The country has attractive features such as a
democratic political system, a convertible currency and a well-educated population, he said.
The tugrik has slipped 14 percent since Fed Chairman Ben Bernanke signaled the central bank may
trim bond purchases on 22 May. Fed policy makers have kept their benchmark interest rate in a
range of zero to 0.25 percent since December 2008, while the European Central Bank cut its key
rate to a record 0.5 percent from in April.
Source: Bloomberg

COAL EXPORT INCOME DECREASED BY 45 PERCENT
The trade deficit has fallen to USD 1.5 billion according to the National Statistical Office of
Mongolia.
Total exports for the first eight months was estimated at USD 9 billion, falling 7.6 percent
compared with the same period last year. The total for exports in August was USD 2.7 billion
compared with total imports of USD 4.2 billion. In August exports rose 6 percent and imports fell by
6.9 percent.
In the year up to August, coal was responsible for 46.6 percent of total exports for a total of 9.5
million tons. That, however, was a 21.8 percent decline from the same period of last year. Total
income for coal exports totaled USD 693 million, or a 45 percent decline compared with last year.
In August Mongolia exported 1.3 million tons of coal compared with some 700,000 tons of coal for
MNT 150 million.
The Mongolian copper output increased from the first 8 months last year. Iron ore export rose to
18,000 tons. The benefits from exports rose by 24 percent or USD 442 million. There is also reported
a rising indication of oil exports. The total oil export output rose 42 percent to three million
barrels.
Source: News.mn
ECONOMY SUFFERS AS ANOTHER ROW ERUPTS OVER FLAGSHIP MINING PROJECT
Mongolia has called a special two-week-long session of parliament to begin September 16 as it
scrambles to relaunch the development of its flagship copper-gold mining project.
Rio Tinto Group announced in August it would lay off 1,700 Oyu Tolgoi workers because the
development of an underground mine would have to be suspended after it received word from the
government it needed permission from Parliament to raise the financing for it. Meanwhile, the
government is waiting to hear from Rio on some outstanding questions.
"We are still expecting two replies that are supposed to be made from Oyu Tolgoi," Economic
Development Vice Minister Ochirbat Chuluunbat said. "There is the report about the investment that
is being made; the second is about the feasibility study for the underground mining. It [the
feasibility study] should have been submitted to the government."
Mongolia was already seeing flagging foreign investment due to the 2012 "Strategic Entities Foreign
Investment Law" (SEFIL), which raised obstacles for investors for acquiring assets in mining and
other "strategic" sectors named in the legislation. In the first half of 2013 Mongolia saw foreign
investment fall 43 percent from the same period last year, with the mining industry taking a hit of
some 32 percent. Mongolia is also hurting from a decline in coal sales, which has contributed to an
ever-widening deficit in the state budget. Since the August 14 announcement of redundancies at
Oyu Tolgoi—mostly contractors specifically assigned to the construction of the underground tunnel—
the currency has taken a nosedive, plummeting 9.5 percent. The tugrik is now 23 percent lower
than it was a year ago.
The official in charge of the government stake in the project, Davaadorj Ganbold, and the mining
minister are planning to fly to London to discuss the points of contention with Rio management.
"Those who are hoping for a quick resolution to the issues surrounding phase two [of Oyu Tolgoi]
should temper their enthusiasm," reckons Nick Cousyn, chief operating officer of Ulaanbaatar-based
broker BDSec, who alerts investors to comments made by Ganbold that the dispute could not be
resolved solely by the shareholders, but by government too, probably extending the delay.
Source: BNE
RUSSIA-CHINA PAVED ROAD OPEN BY OCTOBER
Mongolia will see a paved road running uninterrupted from Russia to China by October this year,
with the commissioning of an annexed road funded by Millennium Challenge Corp.
Prime Minister Norov Altankhuyag attended an opening ceremony for the road with Road and
Transportation Minister A. Gansukh, U.S. Ambassador Piper Campbell, Millennium Challenge
Executive Director Cassandra Butts, and Dornogobi Aimag Governor P. Gankhuyag. The 176.4-
kilometer paved annex road runs between Choir and Sainshand. Construction of the route included

eight bridges between 10 and 64 meters long, 239 concrete pipes, and a parking lot every 30
kilometers.
Also constructed were roads connection Sainshand with Airag Soum (1.7 kilometers), Dalajargalan
Soums (1.2 kilometers), Khamar Monastery in Khamaryn Khiid (42-kilometer) and Zamyn-Uud (120
kilometers).
Source: Info Mongolia
CENTRAL BANK SETS MNT 1,700 EXCHANGE RATE THRESHOLD
The Bank of Mongolia has pledged to help stabilize a currency exchange rate of MNT 1,700 per U.S.
dollar.
Last week the tugrug appreciated from MNT 1,780 to MNT 1,680 per dollar, with some economists
predicting a further appreciation.
Source: Undesnii Shuudan
MONGOLIA FALLS ON WEF GLOBAL COMPETITIVENESS INDEX
Mongolia fell 14 places to 93rd out of 144 countries on the World Economic Forum's (WEF's) Global
Competitiveness Report.
A large factor in Mongolia's fall was its significant drop for macro-economic stability by 78 places to
130th. Additionally Mongolia fell 10 places in market efficiency in the labor market, one spot in
infrastructure, two spots in market effectiveness, seven for business effectiveness, and nine for
innovation. Mongolia only saw a gain in two areas: Mongolia climbed four spots to 66th for readiness
of technology and one spot to 82nd for higher and professional education.
According to the report, countries placed above 130 are in need of improvements in protecting
intellectual property, independence of the courts, conflicts of interest in government, over-budget
spending, inflation, and quality of education. Topping the list was Switzerland, with the subsequent
nine as follows: Singapore, Finland, German, United States, Sweden, Hong Kong, Holland, Japan,
and the United Kingdom. China ranked 29th and Russia 64th.
Source: Udriin Sonin
MONGOL BANK MAKES PLEDGES FOR THE ECONOMY
The Bank of Mongolia has pledged to continue a monetary policy for the creation of jobs, supporting
investment, and developing internationally competitive industries.
The Central Bank pointed to the shortfall in government revenue as to the cause of sluggish growth
in the country. Over the last nine months, the Central Bank has taken measures to mitigate the
impact on the economy, such as increasing the money supply when necessary, effectively protecting
citizens' incomes, stimulating economic activity, and reducing damages to the economy. The
Central Bank is working to provide a better exchange rate for the tugrug while maintaining
flexibility. The 20 percent depreciation of the tugrug against the U.S. dollar since the start of the
year is a sign of reduced foreign currency inflow and worsening foreign trade conditions, and the
Central Bank hopes to minimize negative impacts from foreign markets to the domestic economy
while supporting production at home and exports, reducing imports, and improving economic
competitiveness.
The Source feels the actions taken by Parliament and government to improve the investment
environment, revive investors‘ trust, and increase the currency inflow will support stable economic
growth for the long term. The government‘s focus to not exceed this year‘s budget deficiency by 2
percent of GDP in accordance with the Law on Budget Stability will build trust in state credit rating
agencies, investors, and international organizations and will help provide a sustainable macro
environment for Mongolia.
MONGOLIA SEEKS TO EASE DISPUTE OVER MINE
Mongolia moved to smooth over a dispute with mining company Rio Tinto Group that has threatened
the operation of the world's third-largest copper-and-gold mine, part of an array of measures the

resource-rich country is using to try to restore the confidence of foreign investors.
The Mongolian government will retreat from disputes between Rio Tinto, said Chimed Saikhanbileg,
a government minister and chief of the Cabinet Secretariat. Mongolia is committed to "a favorable
business environment in the mining sector," he said on the sidelines of this week's World Economic
Forum in this coastal Chinese city. He said the Oyu Tolgoi board would fly to London next week for
a meeting. "It's high time to sit down and relax and solve our problems at a board level,"
Saikhanbileg said.
To ease investment procedures, the government will set up an agency called Invest Mongolia with a
mandate to handle business-registration approvals. Modeled on a Hong Kong agency, it would
commit to making a decision within 14 days of an application filed by a private-sector company.
The Ministry for Economic Development would review foreign enterprises with a majority
government ownership that seek stakes of more than 25 percent in Mongolian assets. In these cases,
a decision would be made within 45 days or it would be approved automatically, the minister said.
The government would guarantee that the tax rate on investments of more than USD 10 million
remains unchanged for five to 10 years, depending on the size.
Other widely expected changes include the repeal of a law that prohibits mining within 650 feet of
bodies of water or forests. Saikhanbileg acknowledged that the decision to suspend hundreds of
mining licenses under this law had come "like a bombshell." The discretion of local governments to
interpret the distance prohibition will be disallowed, which will permit most companies to resume
operations, he said. Mongolia also plans to "give some kind of freedom in exploring for gold,"
abolishing a 5 percent tax on gold sales and cutting in half 5 percent royalty payments under
certain conditions. The aim was to halt smuggling and boost gold production.
Source: Wall Street Journal
NEW FILM SHOWS MONGOLIA'S NOMADS LOOKING FOR LEFTOVERS, THE PRECIOUS KIND
In the film ―Price of Gold,‖ opening in New York this week, the directors Sven Zellner and
Chingunjav Borkhuu observe a ragtag crew of five of these wildcatters, piecing together a
noncommittal, occasionally surreal portrait of hardscrabble lives and omnipresent risk.
―We take what is ours,‖ one worker says, his attitude hovering somewhere between shame and
defiance.
Against a background of saffron dust and violet mountains, Zellner‘s camera peers into a terrifyingly
narrow mine shaft and watches as a worker packs dynamite, a cigarette dangling nonchalantly from
his lips. Fingers paddling in the mercury that‘s used to loosen gold from rock, another man patiently
sifts sludge for signs of glinting particles. With few alternative means of generating income, the
crew members are pragmatic about the hazards of an operation held together with spit and string.
Source: New York Times
THE BOY GENIUS OF UB
Many children in the city play in their apartment buildings‘ driveways, but Myanganbayar Battushig,
16, found the one where he lived was oriented in a particularly dangerous way. Worried about his
10-year-old sister and her friends being hit by an exiting car, he installed a sensor that would flash
a red light outside to warn children to get out of the way when a car was coming.
Battushig is not your typical teenager. He hasn‘t read Harry Potter (―What will I learn from that?‖)
and does not like listening to music (when a friend saw him wearing headphones, he could not
believe it; it turned out Battushig was preparing for the SAT). He unveiled Garage Siren in August
2012, posting instructions and a demonstration video on YouTube. The project impressed officials at
the Massachusetts Institute of Technology (MIT), but at that point they were already aware of his
abilities.
Two months earlier, Battushig, then 15, became one of 340 students out of 150,000 to earn a
perfect score in Circuits and Electronics, a sophomore-level class at MIT. and the first massive open
online course, or MOOC—a college course filmed and broadcast free or nearly free on the web.
Enkhmunkh Zurgaanjin, the principal of the Sant School, was the first Mongolian to graduate from
MIT, in 2009, and he has tried since then to bring science and technology labs to his students.

―My vision,‖ he said, ―is to have more skilled engineers to develop Mongolia. To do that, everything
has to start from the beginning.‖
Zurgaanjin had students watch the Circuits and Electronics MOOC lectures at home. Tony Kim, a
college friend working on his Ph.D. in electrical engineering at Stanford, agreed to visit Mongolia for
10 weeks and guide students through the labs using real equipment. Battushig‘s success also showed
that schools can use MOOCs to find exceptional students all over the globe. After the course, Kim
and Zurgaanjin suggested that Battushig apply to MIT, and he has just started his freshman year.
Stuart Schmill, the dean of admissions, said Battushig‘s perfect score proved that he could handle
the work.
Source: New York Times
CHINGGIS KHAN, THE FATHER OF 8% OF ASIAN MALES
Chinggis Khan is known as the father of Mongolian nation. But, if genetic structures of male
population of the world are studied, he could become the father of the nation in the true literal
sense.
A huge chunk of the male population of the world has the same set of Y-chromosome as carried by
the Mongol leader. Chinggis' philandering lifestyle had created a lineage of more than 20,000
individuals, within a century of his birth. More than 8 percent of the male population of Central
Asia traces their genealogy to the Mongol conqueror. That amounts to almost 0.5 percent of world's
population!
Some traces of Chinggis' genes have also been found in the present Jat population living in the
northern part of India. It was also found that the geographical spread of possessors of the
chromosomes almost exactly matched that of the Mongol Empire. The dynasty was known for its
philandering ways. His brothers and sons fathered hundred of children. These children carried
forward the legacy practiced by their fathers.
It is said, when Mongol armies attacked, their spoils were shared among the troops and officers,
with one exception. The most beautiful women were reserved for Khan. A study conducted on
Hazara population residing in Pakistan found that they are the direct descendants of Chinggis
Khaan.
Source: Daily Bhaskar
EMERGING MARKETS SLUMPING AS DEVELOPED ECONOMIES CRAWL OUT OF CRISIS
Pushed by some of the best macro indicators for many a month, hope is growing that the globe has
finally started a sustainable climb out of crisis towards a genuine recovery, and that it can pick up
the pace in the second half of the year. However, the emerging markets are lagging.
This chart from Markit shows the growing divergence, as the developed economies start to up the
pace but emerging peers stutter. The overall pace of global economic growth picked up in August to
the fastest since early-2011, according to purchasing managers index (PMI) data, but it was almost
entirely thanks to the world's developed markets. Developed world countries, Markit notes, are now
signaling strong and accelerating growth. Emerging markets on the other hand hinted in August at
only a very marginal expansion following a modest decline in July. The near-stagnation seen in the
third quarter so far is the weakest economic performance in the emerging markets since 2009.
The composite PMI for manufacturing and services in the United States rose to its highest for two-
and-a-half years, while the equivalent for the United Kingdom hit a record high for the second
month running. The euro-zone PMI indicated the long-suffering region is recovering and Japan's
index signaled sustained robust expansion. China meanwhile continued to more or less stagnate, as
did Russia. PMIs for India and Brazil signaled ongoing declines, the former seeing the steepest drop
in business activity since March 2009.

Source: BNE
MINING: HAZARDS OF THE FRONTIER
Miners have always had to go where the minerals are and yesterday‘s wild frontier can quickly
become tomorrow‘s backyard, writes James Wilson. Even so, experiences like those Rio's
experience writing down USD 3 billion in Mozambique beg the question of whether miners have
misjudged the balance between risk and reward in a rush for growth to feed China‘s commodities
boom.
The issue is particularly acute for larger diversified listed mining groups. Their projects are likely to
be much more expensive—and their shareholders less forgiving.
―There is a difference between the more risk-tolerant junior miners, which are more used to
blazing a trail where Mother Nature puts the resources, and the bigger miners, which are an
inherently conservative bunch—but they do take risks,‖ says Clive Burstow, manager of Baring
Global Mining Fund in London. ―They know that if they want to own assets that give investors the
best returns, they may have to invest in more marginal, frontier countries.‖
After a generation of chief executives, including Tom Albanese, Rio Tinto‘s former chief executive,
lost their jobs in the past 18 months amid investor discontent at costly mistakes, a new mood of
realism has taken hold. Mark Cutifani, Anglo American PLC‘s new chief executive said his company
must be better at appraising investments. ―The tougher the jurisdiction, the quicker the return [we
need]. That should be the first set of conversations we have,‖ said Mr. Cutifani in July.
But a country‘s demands on a miner can change quickly. ―You can have issues wherever you are,‖
said Jason Burkitt, U.K. mining leader at PricewaterhouseCoopers (PwC), citing the introduction last
year of a ―super profits‖ tax on resources companies in Australia. The industry‘s shift towards
emerging markets seems set to continue. A PwC report on the sector said half of the 40 largest
mining groups by market capitalization have the bulk of their operations in emerging markets—the
largest share ever, driven not just by the search for deposits but by the growth of companies from
the likes of China, India and Brazil.
Source: Financial Times
MINING M&A STANDOFF TESTS BANKERS' PATIENCE AND SKILLS
Bankers trying to move a mountain of mining assets for sale are being tested to the limit by
unreliable buyers, stubborn sellers and a widening gap between them that has already caused
billions of dollars' worth of deals to be shelved.
Global mining firms are under pressure from investors to slim down after boom-year expansion
ended badly for many of them. However, with demand from China's steel mills holding up the iron-
ore price, big miners are unwilling to sell assets cheap—unwanted or no—while potential buyers
want a bargain. The result has been a sharp dip in the value of deals announced in the metals and
mining sector so far this year—just over USD 64 billion, roughly half the value of announced deals at

the same time last year. The number of deals is down by more than a quarter.
"There is some pressure to put assets into the market, but those that have been coming down the
pipe so far have been more difficult for buyers to get comfortable with," Julian Vickers, co-head of
the global natural resources group at Barclays said.
This year has been most painful for bankers close to Oyu Tolgoi miner Rio Tinto PLC, which over the
summer pulled the sale of its diamonds and Pacific Aluminium units after auctions that dragged on
for more than a year. Credit Suisse advised on both of those abandoned auctions and is also advising
on another that bankers expect to be shelved next—the sale of Rio's majority stake in Iron Ore
Company of Canada (IOC), for which the miner wants more than USD 3.5 billion. Canadian Imperial
Bank of Commerce (CIBC) is also advising on the IOC sale. Rio is also expected to pull the sale of its
29 percent stake in Coal & Allied in Australia, in what would be a painful move for Deutsche Bank,
which has been advising it on the deal that had been valued at USD 1.7 billion.
"When you are dealing with the big companies, you have to be careful about trying to cherry-pick,"
one senior industry banker said. "If you only want the great stuff, you won't last long."
Source: Reuters
CHINA PLEDGES TO CUT COAL CONSUMPTION
China's government pledged to reduce overall coal use in eastern parts of the country and said it
would cut dependency on the fuel nationwide, as leaders struggle to respond to rising public
concern over choking levels of pollution.
China's State Council said in a new plan to reduce pollution on 12 September that it would stop
approving new coal-fired power plants in industrial centers such as Beijing and Tianjin in northern
China, and the Yangtze and Pearl River Deltas in eastern and southern China. China has long tried to
tackle pollution from coal, which now accounts for around 70 percent of the energy mix, but has
struggled to curtail coal consumption because of limited domestic alternative-energy resources. On
Thursday the government said it aimed cut coal's portion of the fuel mix to less than 65 percent by
2017. The statement reaffirmed plans to renovate existing coal-fired power plants to burn coal
more cleanly.
Since pollution levels surged last winter, such efforts have accelerated and the government has
made repeated pledges to curtail urban air pollution. The plan largely focuses on developed eastern
areas, but says little about how to control pollution in rapidly developing parts of western China. It
is also unclear how new targets will be measured or enforced, which has been a long-standing
challenge in lowering overall pollution levels. The statement said the contribution of non-fossil
fuels such as wind and solar power will rise to 13 percent by 2017, from 9.1 percent last year.
China's current five-year plan calls for boosting non-fossil fuels to 11.4 percent in 2015.
China's government is attempting to buck its reliance on polluting coal by raising consumption of
cleaner natural gas. It has ambitions to tap potentially vast domestic shale-gas resources in Sichuan
province and elsewhere. Meanwhile, it is working to raise piped natural-gas supplies from Central
Asia as well as shipped liquefied natural gas from Australia, Canada and elsewhere. The government
also promised to speed up the installation of pollution-abatement equipment in heavy industry,
impose stricter limitations on companies setting up operations in environmentally sensitive areas
and provide more transparency on naming polluters.
MONGOLIA'S CHOICES ON ECONOMIC DEVELOPMENT
A sudden sense of economic crisis is spoiling the mood over Mongolia's three years of world-beating
economic growth. This crisis stems from the massive decline in foreign investment and ongoing
uncertainty surrounding the government's partnership with Rio Tinto PLC in the USD 10 billion Oyu
Tolgoi project. In the coming week, two events seek to address this crisis, one with long-term
solutions, the other more immediately.
Mongolia's growth rates exceeding 10 percent for the past three years has been built almost entirely
on mining exploration, coal production and construction associated with Oyu Tolgoi. Now, however,
growth seems threatened by three challenges: scared foreign investors, a drop in Chinese demand

for coal, and uncertainty surrounding Oyu Tolgoi.
World Economic Forum Strategic Foresight, a quasi-consultancy built around the "communities"
involved in the annual Davos event, has drafted scenarios for the long-term context of Mongolia's
development. The scenarios will be presented in a workshop to which Mongolian parliamentarians
and other policy makers and stakeholders have been invited to encourage consideration of how they
make decisions. Next, parliament will convene for an extraordinary session to discuss revision of the
foreign investment law, as well as proposed changes to the mining law. Hints about the investment
law suggest that it will retain controls over state-owned investments but clarify these to create
fewer hindrances for the sale of assets by non-state-owned foreign investors.
A radical investment in analysis capacity and governance structures directly involving the Mongolian
people may be one of a few solutions here. Alternatively, a sale of the state's share in Oyu Tolgoi
would allow the company access to financing. It would also confine the government's responsibility
to regulation and decision-making about revenue streams that now seem threatened.
Julian Dierkes is an associate professor at the University of British Columbia's Institute of Asian
Research and blogs at mongoliafocus.com.
POLITICS
PARLIAMENT DEBATES NEW INVESTMENT LAW
Parliament began its extraordinary session on Monday, focusing on key legislative debate for the
country's economic performance. The agenda outlines five specifics laws to be debated, with the
most important to affect Mongolia's future and the participation of foreign investors in the new
Investment Law.
The new Investment Law comprises six chapters, with one mandating a two-thirds vote from
Parliament to amend the law. The first lays out an equal playing field for foreign and domestic
investors. As populist politicians have tried to win over voters during the 2012 parliamentary
elections, candidates openly expressed their preference for domestic over foreign-invested entities.
This new law reverses that stance by supporting both types of investors while protecting the
country's assets from state-owned enterprises.
The law also removes the ―strategic importance‖ label, removing any further requirements that
were necessary to invest into assets within the sectors of mining, communications and media,
banking and finance. Investors will only come under the labels of ―private‖ or ―state-owned.‖ The
law also removes the USD 100,000 limit of investment before state approval is needed—state
ownership includes any entities with state ownership above 25 percent. The law also looks to
provide tax stability for a five-to-10-year period for investments above MNT 15 billion.
Finally, the new law introduced the Invest Mongolia agency, which has the sole purpose of
attracting foreign direct investment. The agency will provide government a means of engaging
investors in discussions regarding foreign investment and provide a direct source of information to
communicate with stakeholders.
Source: Mongolian Investment Banking Group
MONGOLIA TO BRING IN MORE REVENUE WITH NEW LAWS FOR GOLD MINING
The amendments to the so-called Long Named Law that resulted in the withdrawal of numerous
gold exploration licenses will allow miners ready and willing to perform reclamation to return to
their operations, said MP J. Batsuuri.
―We definitely have to protect the earth, water and land. But we should approach the issue in a
realistic manner,‖ said Batsuuri, who was an MP in 2009 when the law was passed. ―At the time of
passing the ―long-named‖ law I was warning it might push foreign and national mining companies
into a difficult situation. This has been proven to be right today.‖
The law, said Batsuuri, left the companies affected at a loss because Mongolia lacked the funds to
compensate them. He said that although the law had not yet been submitted to Parliament, he said

he was confident the amendments would reflect the idea that Mongolia should allow legitimate gold
miners to continue their exploration under the condition that they keep to their reclamation
responsibilities.
―Reclamation is the legal requirement. It is provided that operations must be suspended if
reclamation is not conducted. There are state inspections which are obliged to control and monitor
such activities.‖
According to the Mongolian Gold Producers Association, the Bank of Mongolia could benefit from a
10 percent tax from a few gold companies and by breaking up the black-market trade of gold. The
volume of gold sold to the Bank of Mongolia by national producers could reach 36 tons by 2016
before adding in the production from the Oyu Tolgoi and Boroo mines. The government hopes to
create more transparency in gold production.
Source: Zuunii Medee, Udriin Sonin
TASK FORCE FORMED FOR LONG NAMED LAW
Members of the Standing Committees on the Economy and Environment and on Food and Agriculture
on 17 September agreed to establish a task force to study the Law to Limit and Prohibit Mineral
Exploration and Mining Operations at the Headwaters of Rivers, Protected Zones of Water
Reservoirs—commonly referred to as ―The Long Named Law.‖
The task force is charged with learning the positions of all parties on the controversial issues
surrounding the amendments to law and to adapt that input into the law. Leading the task force is
MP D. Arvin.
Law makers noted that the long named law from 2009 saw the issuance mining licenses ran
ordinarily for 11 months. During that period four new mining licenses were issued to 120 mining
sites before President Tsakhia Elbegdorj ordered a ban on the issuance of licenses. The 789
exploration special licenses granted before the law was enacted and the 77 operational licenses
granted after the law was passed will not be affected by the new amendments in the law.
However, applications for 346 operational licenses will once again be processed.
Source: News.mn
MONGOLIA ENVIRONMENTALISTS HELD AFTER SHOT AT PARLIAMENT
Nine Mongolian environmentalists protesting against legal changes which they say will loosen
controls on mining were arrested outside parliament on Monday after one fired a shot, reports and
officials said.
Leaders of the Fire Nation NGO coalition, which includes some nationalistic organizations,
attempted to enter the building where Parliament was to meet for a special session but were
stopped by guards, and a gunshot was heard, police said.
News.mn said nine people were arrested and two guns confiscated including a Kalashnikov assault
rifle. There was no immediate official confirmation of this.
"The demonstrators wanted to take a petition into the Parliament house but were stopped by the
guards. The demonstrators didn't shoot on purpose but fired a gun unintentionally," said police
captain Yondon Lkhagvasuren, adding that no one was injured.
Fire Nation leader Tsetsegee Munkhbayar previously said that Mongolian laws delaying mining
activities would be neutralized by the revised proposals, and the group had drawn up a text of its
own.
"We will make them adopt this resolution," he said last week.
Central Tower was evacuated on Monday, employees said, while reports said there was a bomb
threat at the environment ministry nearby. There was no official comment.
Source: The Global Post
MONGOLIA AGREES TO JOIN TALKS ON ABDUCTIONS
Prime Minister Norov Altankhuyag agreed with Japanese Prime Minister Shinzo Abe to hold regular
talks in conjunction with the United States on resolving North Korea‘s abductions of Japanese
during his visit to Japan last week.

Mongolia has diplomatic relations with the reclusive communist state North Korea. The abductions,
committed in the 1970s and ‘80s, have prevented Japan and North Korea from establishing
diplomatic ties.
―I hope we can further strengthen the relationship of mutual benefits,‖ Abe told a news conference
after meeting with Altankhuyag on Friday.
Altankhuyag added, ―Mongolia supports Japan‘s position that the abduction and other issues of
concern that remain unsolved must be addressed in a comprehensive manner.‖
The leaders agreed on a five-year action plan to deepen security and economic cooperation
between their nations. They also discussed free trade talks initiated by Japan and Mongolia last
year. They agreed to ―energetically proceed with and soon conclude the economic partnership
negotiations to dramatically expand trade and investment between the two countries and lift our
economic relations to a new stage,‖ according to a joint statement released with the action plan.
The trade liberalization deal would be Mongolia‘s first.
Source: Japan Times
CHINESE, MONGOLIAN PRESIDENTS MEET ON PROMOTING COOPERATION
Chinese President Xi Jinping met with Mongolian President Tsakhia Elbegdorj in Bishkek on 12
September and both leaders agreed to promote bilateral cooperation.
Xi said China, following the win-win principle, will strengthen its economic and trade cooperation
with Mongolia in the three major areas of mineral resources exploitation, infrastructure
construction and financial cooperation. The three areas are integral parts of the overall bilateral
cooperation and plans to promote cooperation in them should be drafted as a whole, Xi said, adding
the two countries should also implement some big interconnection projects. The Chinese leader
believed the China-Mongolia strategic partnership will continue to make progress through the joint
efforts of both sides.
For his part, Elbegdorj said Mongolia has been implementing the strategy of revitalizing the country
by developing its rich mineral resources. Mongolia hopes to increase cooperation with China in areas
such as energy, mineral resources, economy, trade and infrastructure, he said. The country would
like to implement some big landmark cooperation projects, and take measures to create a good
environment for bilateral cooperation, he added. The Mongolian leader also said his country is
willing to strengthen communication and coordination with China on regional and international
affairs.
Source: Xinhuanet
CHINESE VP MEETS MONGOLIAN DEFENSE MINISTER
Chinese Vice President Li Yuanchao met with Mongolian Defense Minister Dashdemberel Bat-Erdene
on Tuesday, vowing to push forward the strategic partnership between the two countries.
Li said China-Mongolia relations have kept up healthy development in recent years. China would like
to work with Mongolia to promote mutual trust and respect, and to intensify substantial cooperation
of mutual benefits to enrich their bilateral strategic partnership, he said.
Bat-Erdene said Mongolia valued its traditional friendship with China. He said Mongolia expected to
enhance bilateral cooperation with China in various fields in order to forge ahead with bilateral ties
between the two nations and the two armed forces.
Source: Xinhua
2013 SELENGE MILITARY EXERCISE HELD 11-18 SEPTEMBER
This year's Selenge Mongolian-Russian joint military field exercise was held at Doityn Shar Nuur in
Sergelen Soum, Tuv Aimag from 11 to 18 September.
Over 800 soldiers from some 10 units of the Mongolian Armed Forces and 300 militants from the
Eastern Military District of the Russian Armed Forces stationed in the Republic of Buryatia
participated in the event. The opening ceremony for 2013 Selenge on 11 September was held at the
Mongolian Armed Forces management headquarters, with Brigadier General J. Badambazar and
Russia's Major General Mikhail Teplinksy in attendance.

MONGOLIA ATTENDS SCO SUMMIT
President Tsakhia Elbegdorj delivered a speech at Bishkek for the 13th Shanghai Cooperation
Organization (SCO) Summit.
Elbegdorj congratulated the president of Kyrgyzstan, Almazbek Atambayev, for his successful chair
of the SCO. He said Mongolia seeks to expand its participation in projects for the 2012-2016 period.
He added that Mongolia values the initiatives and projects initiated by SCO, including the Energy
Club and a initiative for cooperation in food safety.
This year was the seventh time Mongolia had participated in the event.
DENVER GARDENERS VISIT UB
Ulaanbaatar hosted its Greening of the City summit on 11 September, where representatives from
the United States' Denver Botanical Garden visited to sign a one-year cooperation agreement.
Mongolia's gardening specialists gave a brief presentation on the current level of green development
in Mongolia and discussed what would be needed to advance that level. The Denver representatives
would participate in this endeavor, providing research and education.
Delegates visited the 1,280 hectare Mongolian National Garden along the Tuul River in Bayanzurkh
District. The Denver guests also presented a workshop for local authorities, university students and
faculty, and other guests on creating a master plan for the development of landscape and
horticulture.
Source: UB Post
MONGOLIA BOOSTS TIES WITH EAST ASIAN NEIGHBORS
After decades of economic dominance by neighbors China and Russia, Mongolia is breaking out by
forging new trade ties with East Asian countries. While Korean firms are eyeing construction
contracts, Japan is set to enter the field of energy and mining investment.
In August Japanese media reported that consensus had been reached between Tokyo and
Ulaanbaatar on a majority of the issues behind an Economic Partnership Agreement (EPA). The EPA
will see Japan given privileges in the mining sector, with the prime minister of Mongolia, N.
Altankhuyag, expected to sign the deal during a visit to the country in September. The agreement is
also set to exclude Japan from upcoming laws and regulations that will limit foreign investment in
the financial and communications sectors.
Other infrastructure and energy deals are getting underway with Korean organizations. On 17
August Ulaanbaatar Mayor E. Bat-Uul met with South Korean parliamentarian Park Jin to discuss a
Korean firm‘s plans to build the new city administration building, as well as the Korea International
Cooperation Agency‘s involvement in improving its water supply and heating network.
However, recent cancellations also hint that it is not all plain sailing for the major infrastructure
contracts being awarded. At a Cabinet meeting on 5 August, officials confirmed that the
government was terminating its deal with South Korea‘s Baek Suk Engineering and Construction,
which was in the process of building a 253-kilometer road between Ulaanbaatar and Khuvsgul
Aimag. The move came alongside the cancellation of two other road contracts with Chinese firms,
with the government saying it was not happy with their performances. ―A Korean company which is
building the road between Khuvsgul and Ulaanbaatar has reported to the Ministry of Road and
Transportation that it cannot open the road within 2013 as planned,‖ reported the Ulaanbaatar Post
in July.
Mongolia is also entering into the frontier market of North Korea, with domestic oil trading and
refining company HBOil JSC in June acquiring 20 percent of the state-run entity operating North
Korea‘s Sungri refinery. That Ulaanbaatar is playing a mediation role in talks between Japan and
North Korea also underlines the diplomatic impact of the country's maneuvering into East Asia,
while Mongolian President Ts Elbegdorj is set to visit Pyongyang later this year.
While the move to diversify markets is to be lauded, Mongolia‘s leaders must guard against a

geopolitical backlash from its dominant neighbors, which could see them aim for other strategic
allies.
Source: Oxford Business Group
NEW FUND TO CREATE NEW FINANCING OPPORTUNITIES, SAYS MANDAL ASSET MANAGMENT
A new bill would reduce companies' dependence on loans, said the president of Mandal Asset
Management.
Parliament is set to discuss the Investment Fund Law at the extraordinary sessions, said L.
Byambaa, which would provide companies opportunities for financing through investment. The bill
proposes the creation of a fund for investments through bonds and savings, managed independently
from government officials' influences.
In Mongolia, 96 percent of financing is attained through bank loans. This creates a situation where
only the largest companies and wealthiest individuals are able to take out loans because of the
strenuous collateral requirements.
IAAC ARRESTS CLEAN AIR FOUNDATION OFFICIALS FOR GRAFT
The Independent Authority Against Corruption (IAAC) has arrested five officials from the Clean Air
Foundation for the embezzlement of public funds.
Those arrested are Director N. Khurelsukh, Chief Accountant M. Khulan, and assistant, accountant
A. Boldmaa, in addition to two officers from the Ministry of Environment and Green Development.
―In cooperation with the four others, Director Khurelsukh illegally transferred money from the
foundation to his company account and three other entities' accounts,‖ said E. Amarbat, head of
the IAAC's investigation department. ―We proved that the suspects had been buying cars and
apartments for themselves with the money.‖
TORIIN BANK OFFICIALS TO SEE REDUCED SENTENCES FOR GRAFT CHARGES
Six former Toriin Bank officials charged with graft will see reduced sentences after paying MNT 90
million each to the bank.
The former officials are returning the MNT 90 million bonuses they received after facing corruption
charges [the Source does not explain the charges or if they were related to the bonuses -ed]. Three
of those facing graft charges served as board members and are former Justice Minister State
Secretary G. Bayasgalan, Ministry of Finance Head of the Financial Division B. Batbayar, and Ministry
of Finance Head of the Legal Division L. Zorig. The remaining three are Finance Ministry Internal
Audit Head L. Zorig, Finance Ministry Legal Division Head L. Gerelmaa, and former National
Development and Innovation Committee Deputy Chairman L. Ganbat.
CTU PROTESTS
Members of the Confederation of Trade Unions (CTU) demonstrated on 13 September to protest the
depreciation of the tugrug against the dollar.
Over 1,000 people from 14 organizations demonstrated from 12 a.m. to 2 p.m. The Confederation is
demanding a 40 percent increase in salaries and pensions along with several other demands from
Parliament during its extraordinary session. The confederation set a deadline for 20 September for
a response to its demands.
Source: Udriin Sonin
MONGOLIA: INDIA'S FRIEND AND FUTURE IN NORTH EAST ASIA
While there are few Indians in Mongolia, it looks up to India for being a democratic market
economy. It is also now welcoming global investors who can help the country reduce its crippling
economic dependence on China. While the country has closer cultural ties to Russia, its mineral
exports go mainly to China.

I participated in the World Economic Forum‘s (WEF's) strategic dialogue in Ulaanbaatar where global
business and civil society leaders did some crystal ball gazing on Mongolia‘s future. WEF has
developed three potential scenarios for Mongolia in 2040. First, where it is able to sell its mineral
wealth across the world and also diversify into other products and services. This is the ideal
scenario. The second is where it finds it tough to sell its minerals but is able to expand into other
products and services. This is not ideal, since its growth in this scenario would be moderate. The
third scenario is the nightmare option where it is unable to sell minerals and also cannot diversify.
Industry experts and academics feel that all these are possible but Mongolia will have to think hard
about its policies.
India has to play a critical role by supporting its institutional framework especially in trade and
education. Indian investment in social infrastructure like health and skill development can help our
friend in Northeast Asia diversify its market and reduce its dependence on China. Indeed, Mongolia
must focus on other developing markets to ensure that a few global powers do not control its
destiny. Countries like Japan, India and South Korea can be the gateway to growth for Mongolia.
The author Pranjal Sharma tracks India‘s political economy and its engagement with the world.
Source: DNA India
ANNOUNCEMENTS
MINING MONGOLIA AND POWER AND RENEWABLE ENERGY MONGOLIA, 19-21 SEPTEMBER, UB
Mining Mongolia and Power and Renewable Energy Mongolia is being held from 19 to 21 September
at the Buyant-Ukhaa Sports Complex in Ulaanbaatar.
190 companies from 29 countries including pavilions from Australia, Canada, China, Germany and
Korea 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.
___________________________________________
TOP GOVERNMENT OFFICIALS TO ATTEND NAMBC INVESTORS CONFERENCE, 24-26 SEPTEMBER,
UB.
Minister of Environment and Green Development Sanjaasuren Oyun and Ulaanbaatar Mayor Erdene
Bat-Uul will be featured speakers at the North American Business Council's (NAMBC's) 16th Annual
Investors Conference, to be held from 24 to 26 September at the Kempinski Khan Palace Hotel in
Ulaanbaatar. Registration deadline is September 6
The investors‘ conference will celebrate the 40th anniversary of Mongolia-Canada diplomatic
relations this year. Full simultaneous interpretation will be provided. This conference is the
longest-running international investors forum in or about Mongolia, held annually in Ulaanbaatar
since 1998.
Non-members from any country are welcome. For more information visit nambc.org. Find a
registration form here.
___________________________________________
MONGOLIAN MINING SUMMIT 2013, 29-31 OCTOBER, PERTH, AUSTRALIA
Mining IQ's Mongolian Mining Summit will be held at from 30 to 31 October at Crown Perth, Western
Australia, Australia.
The Mongolian Mining Summit is the perfect forum to bring together senior level executives from
Mongolia and Australia to further business relationships in the resources sector. Send your senior
executives to attend this summit to meet with CEOs, executive directors, MDs, VP, and GMs, and
heads of investment from Australian organizations interested in entering the Mongolian mining

industry.
Speakers include:
- Graeme Hancock, President and chief representative of Anglo American in Mongolia,
- Dr. Battsengel Gotov, Executive director and CEO of Mongolian Mining Corporation.
- Jim Dwyer, Executive director of the Business Council of Mongolia.
BCM is a supporting organization of this event. Register now and pay only AUD $999 for Mining and
Government Companies—register by 23 August 2013.
To register call +61 2 9229 1000 or email registration@iqpc.com.au.
___________________________________________
“DOING BUSINESS IN MONGOLIA” AND BUSINESS TOUR, 12-18 NOVEMBER, LONDON
The Business Council of Mongolia (www.bcmongolia.org) and the Mongolia-British Chamber of
Commerce with support of the Embassy of the Great Britain and Northern Ireland in Mongolia will
host a Mongolian Business Mission to "Doing Business in Mongolia" Workshop with UK, London based
investors and business tour in London, from 12 to 18 Nov 2013. The business tour programme will
include the visits to "Ideal home show at Christmas" Trade fair, UK Parliament House and some
major business institution and companies in the city of London
Benefits available to delegation members are:
• Matchmaking (B2B meeting with UK or UK based Investors at HQ of Anglo American.
• Assistance in arranging and scheduling appointments with UK exhibitors and companies before and
during the programme
• Travel arrangements and hotel bookings
• Assistance with all logistics at the business and some London sightseeing programme
Please call BCM at 976-70114442 or e mail to erka@bcmongolia.org for registration or related
inquiries.
Registration deadline: Oct 07 Monday 2013.
________________________________________
MONGOLIA INVESTMENT SUMMIT HONG KONG 2013, 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 is a supporting partner organization. BCM members will enjoy 15% discount; please quote
Priority Code 695BCM15D during registration.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAY, 19:05-19:15
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:05 to 19:15 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.

BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013
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:
• Joshua Sunga, Internship Program Director, AIESEC- "Youth Leadership Development" at the BCM
Monthly Meeting Aug 26. 2013
• G. Zorig, Country Manager, Tree Global Mongolia – ―Tree Global Mongolia Overview Presentation‖
at the BCM Monthly meeting Aug 26, 2013
• G. Saruul, Deputy CEO, Mongolian Stock Exchange – ―Securities Law Overview‖ at the BCM Monthly
meeting Aug 26, 2013
• Bilguun Ankhbayar, Chief Executive Officer, Mongolian Investment Banking Group LLC,
―MIBG Review‖, at the MSE-BCM Securities Law Overview Session, July 4, 2013
• Robert Rooks, Director, PwC Hong Kong, ―A brief Overview of Custody Services‖, at the MSE-BCM
Securities Law Overview Session, July 4, 2013
• Anthony Woolley, Senior Associate, Hogan Lovells, ―The Revised Securities Market Law‖, at the
MSE-BCM Securities Law Overview Session, July 4, 2013
• B. Saruul, Director General, Securities Department, Financial Regulatory Commission of Mongolia,
―Securities Markets Law – Path to Market Reforms‖, at the MSE-BCM Securities Law Overview
Session, July 4, 2013
• 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
• S. Bold, Chief Economist, Central Bank, ―The current flow of investment into Mongolia‖, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• S. Javkhlanbaatar, Foreign Investment Regulations and Registration Department Head, Ministry of
Economic Development of Mongolia, ―About regulation on FDI‖, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• B. Amarsanaa, Academic Secretary of National Legal Institute, ―Legal issues of regulation of
foreign investment‖, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions"
conference on April 19, 2013 at the Kempinski Hotel.
• D. Gan-Ochir, Head of Financial Stability Council, Advisor to President of Central Bank,
―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• D. Achit-Erdene, CEO, MICC, ―On current state of equities foreign investment‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• 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 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
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―Mongolia Macro Flash‖, Adrienne Lui, Asia Pacific Economics Research, Citigroup Global Markets
Asia Ltd;
- ―Selected Macroeconomic Indicators for Mongolia, as of June 2013‖ by International Monetary
Fund;
- ―Polit Barometer April, 2013‖ by Sant Maral Foundation;
- ―Market Update‖ by Mandal General Insurance LLC;
- ―Annual Report 2012‖ by International Monetary Fund;
- ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International Monetary Fund;
- ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and Development (EBRD);
- ―Official statement of Oyu Tolgoi LLC in relation to information, data and facts related to Oyu
Tolgoi –
―2013 discussed during open session of the State Great Khural‖, dated 1 February, 2013‖;
- ―Mongolia Investment Climate Statement‖, by the Economic and Commercial Section of the U.S.
Embassy;
- ―Mongolia Foreign Labor Force Ratio for 2013‖ by Hogan Lovells International LLP;
- ―How Mongolia will perform in 2013?‖ by Mandal Asset Management;

- ―Mongolia Business Owner and CFO Survey result‖ by BDSec JSC;
- ―The fiscal regime for mining - a way forward‖ by IMF Fiscal Affairs Department;
- ―Taxes for Expatriates in Mongolia‖ by PricewaterhouseCoopers.
BCM's English website includes the ―Mongolia Business News‖ section where the Open Letter to
Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 5th Anniversary BCM Gala dinner on November 5.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
___________________________________________
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,401 fans on our Facebook fans page, 1,454 connections on LinkedIn network, and
753 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn.
BCM WORKING GROUP MEETINGS
The BCM Education Working Group met on Monday, September 16, with 16 members attending.
Moderator: Saha Meyanathan/BCM`s Education WG co-chair and DAS/.
New Member; D. Tugusbayar /KOICA/ was welcomed.
Participants: Nergui D /Director of Mongolian National University /, Mendbayar Sh /Senior manager,
Department of Internal relation and co-operation/.B Munkhjargal /AusAid/
Speakers and topics were
1. Update on resent VETC and TVET events
-Kurt Van Hagen /Manager Pipeline Talent at Oyu Tolgoi LLC/
2. VETC NGO update.
-Saha Meyanathan /BCM`s Education WG co-chair and DAS/.
3. Government Plan in the Higher Education Sector.
- Baterdene R. /Chair, Ministry of Education Working group on Higher Education, CEO American
University of Mongolia.
PS: The Australian Government is organizing Australia Future Unlimited Education Fair Mongolia
2013. For more information please see following link.
http://www.studyinaustralia.gov.au/mongolia,
Please contact:erka@bcmongolia.org
___________________________________________

The BCM Environmental Working Group met on Wednesday, 18 September, with 20 members
attending.
Moderator: Bayarmaa A/ BCM‘s Environmental WG co-chair and Clean Energy, Newcom Group.
Participants: Susanne Roelofs- Mott MacDonald, Bat-Erdene Gansukh -MCS Energy LLC, Tuul
Galtzagd-XacBank, Alex Gallagher-RPS Aquaterra, Zolbayar Khumbagai- MCS Energy LLC
Guest: Charlotte O`Connell- The Solar Project of Mongolia
Speakers and topics were:
Latest updates on air pollution reduction measures in Ulaanbaatar city
Project Results and Updates on Coal and HOB Replacement
-EBRD Clean Air Initiative Phase II Project: Coal Replacement by Susanne Roelofs, Economist at Mott
MacDonald.
-MCS DME Project: Replacing coal with gas by Bat-Erdene Gansukh, Deputy Director at MCS Energy
LLC
Project Results and Updates on Stove Replacement
-XacBank Project by G. Tuul, Director of Eco-Banking Department, XacBank
-Ulaanbaatar Clean Air Project-Ariuntuya Tserendorj, Research coordinator at UB Clean Air Project.
Presentations available at BCM Environmental WG web page.
Please contact: erka@bcmongolia.org
ECONOMIC INDICATORS

INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
August 31, 2013 *9.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 8.4% y-o-y, Ulaanbaatar city, August 31, 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 – SEPTEMBER 19, 2013
Currency Name Currency Rate
US dollar USD 1,638.19
Euro EUR 2,219.26
Japanese yen JPY 16.57
British pound GBP 2,643.38
Hong Kong dollar HKD 211.27
Chinese Yuan CNY 267.63
Russian Ruble RUB 51.89
South Korean won KRW 1.53
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.

23.09.2013, NEWSWIRE, Issue 292

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23.09.2013, NEWSWIRE, Issue 292