November 25 2011

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 195, November 25 2011
SPECIAL ISSUE: RISK MANAGEMENT FORUM - ULAANBAATAR HOTEL, 30 NOVEMBER
NEWS HIGHLIGHTS:
Business
 Progress unclear on TT IPO;
 Government greenlights Prophecy power plant;
 Xanadu to continue drilling through winter;
 Garrison International to become Desert Eagle Resources;
 Enkhgoviin acquires Khavtsgait project;
 Suu’s entrepreneurial brothers seize opportunity in milk;
 Japanese firm hopes to build recycling plant;
 Rio spoils Cameco's bid for Canadian uranium miner;
 Peabody approaches 100 percent ownership of Macarthur;
 Mongolia Energy expects six month profit;
 Russian Railways nine month revenue up, profit off;
 New road project open for bids.
Economy
 Tugrug fluctuations test Mongol Bank;
 Fitch grades Mongolia “B+”;
 Construction sector leads in job creation;
 Meat exports on the rise;
 Mining panel urges government to diversify economy;
 World Bank looks to develop insurance industry;
 BHP cautious on short term outlook for commodities;
 Chile predicts decline in copper demand;
 Disparity between copper and aluminum prices signal dark economic climate;
 Gold continues to break records in 2011;
 Silver shares in some of gold's glory;
 EBRD and ADB partner for focus on development in Central Asia;
 Australia's mining tax clears hurdle;
 Yuan stumbles in its race for dominance.
Politics
 MPP searches for additional revenue for 2012 budget;
 New heads of Anti-Corruption Agency named;
 Government to introduce electronic ID cards;
 MPP headquarters destroyed in fire;
 Japan cuts aid to Mongolia;
 Construction on new bridge complete in 2012;

2.  Japan builds modern school in rural community;
 New KOICA volunteers to serve in Mongolia;
 Mongolia applies to OSCE;
 Government to measure pollution produced at power plants;
 Disabled languish as society continues to ignore their plight;
 Traffic incidents up 17.7 percent;
 Police investigate murder at OT;
 Mongolian fossils indicate rare behavior among dinosaurs;
 Ancient horse returns to Mongolia.
*Click on titles above to link to articles
SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Mongolian Star Melchers Breakthrough PR
Mongolian Properties Oxford Business Group
BUSINESS
PROGRESS UNCLEAR ON TT IPO
Although Mongolia still plans to list its Tavan Tolgoi coal mine in Hong Kong, London, and the
Ulaanbaatar, it is still too early to say exactly when, said the newly appointed chief financial officer for
the project, Angus Caithness. Prior to joining Erdenes Tavan Tolgoi, Caithness was chief financial
officer of Hunnu Coal, which was bought this month for USD 493 million by Thailand's top coal miner,
Banpu.

3. “Obviously with this (listing), there are a number of legal and technical issues to be overcome,”
Caithness said.
Ch. Khurelbaatar, chief of the Cabinet office and member of a government working group on Tavan
Tolgoi, said that Mongolia plans to raise USD 3 billion from the triple listing. Senior politicians have said
the eastern section of the Tavan Tolgoi project would be ready for its stock exchange debut at the end
of the first quarter of 2012, but critics have cast doubt on the timetable.
Before the initial public offering (IPO) can go ahead, Mongolia's Parliament first needs to reach a
decision on an investment agreement for the western block of the project, but the deal remains
contentious, especially ahead of elections next year. Bidders from Japan and South Korea complained
the selection process was unfair after the government excluded them from the project. In July the
government announced 40 percent of the project to China's Shenhua, 24 percent to the United States'
Peabody Energy, and 36 percent shared within a Mongolian-Russian consortium led by Russian Railways,
but that decision is now being revised.
Mongolia has been keen to bring international expertise to Tavan Tolgoi. The coal deposit has
estimated reserves of 7.5 billion tons of coal, including the world's largest untapped deposit of coking
coal used to make steel. It has already shortlisted BNP Paribas, Deutsche Bank, Goldman Sachs, and
Macquarie to handle the listing.
Source: Reuters
GOVERNMENT GREENLIGHTS PROPHECY POWER PLANT
Prophecy Coal, the junior that graduated to the TSX main board last month, received the green light
from the Mongolian government to build its 600-megawatt Chandgana coal-fired power plant in the east
of the country.
The license was the first the government has issued for that size power plant, and sets the project up
to become the first new privately owned-coal fired plant in the country when it starts sending out
electricity in early 2016. Growth in the mining sector may drive power consumption to nearly double
by 2015.
“There is an understanding among all stakeholders that Mongolia, being one of the world's fastest
growing economies, needs additional power,” Prophecy Chairman and Chief Executive Officer John Lee
said.
The next steps for the company before production includes completing a feasibility study, which it
anticipates by the end of the year, followed by a power purchase agreement in the first quarter of
2012. Prophecy then hopes to conclude project financing negotiations in the third quarter of next year
and start building the Chandgana power plant and the mine that will feed it in the first quarter of 2013.
The first 150 megawatt unit is planned to start producing power by January 2016. Prophecy's
Chandgana Tal and Chandgana Khavtsgait coal deposits will supply coal for the plant.
The company expects capital costs to run between USD 600 million and USD 800 million, though the
feasibility study will provide firm estimates.
Source: Mining Weekly
XANADU TO CONTINUE DRILLING THROUGH WINTER
Xanadu Mines Ltd. plans to soon commence drilling at its Javkhlant metallurgical coal exploration
project, as part of its strategic alliance with Noble Group Limited.
“For the first time our drilling program will run right through the Mongolian winter, with results
released progressively over the next three months,” said Chairman Brian Thornton.
The joint venture company Enkhgoviin Chuluu LLC can earn up to 80 percent of the Javklhant coal
exploration license by meeting various spending commitments over two years. The large 1,005-square-
kilometer exploration license is located in the South Gobi Basin. The basin is known is known for its
thermal and coking coal deposits. The Javkhlant opportunity was recognized as part of a regional
reconnaissance exploration program targeting coking coal, conduced by Xanadu's geologists over the
last 18 months.
The project is located in the southwest of Gobi Altai Aimag, approximately 22 kilometers from the
Burgastai border crossing point into China and only 200 kilometers from the Chinese rail network at
Hami. Xanadu is a Mongolian exploration company with two thermal coal assets, Galshar and Khar
Tarvaga.
Source: Xanadu Mines Ltd.

4. GARRISON INTERNATIONAL TO BECOME DESERT EAGLE RESOURCES
Garrison International Ltd. has announced its plans to consolidate its shares and change its name to
Desert Eagle Resources Ltd., pending approval from shareholders in December.
Garrison currently has about 173.3 million common shares outstanding. Garrison has proposed to
consolidate its common shares so that one share would be issued for every 18 common shares
outstanding, resulting in approximately 9.63 million common shares. The firm believes that
consolidation would facilitate future financings through the issuance of additional common shares.
Garrison is a junior mineral exploration company focused on acquiring and developing advanced stage
gold properties in Mongolia.
Source: Garrison International Ltd.
ENKHGOVIIN ACQUIRES KHAVTSGAIT PROJECT
Xanadu Mines Ltd. has recently acquired the Khavtsgait coal project through its joint venture company
with Noble Group, Enkhgoviin Chuluu LLC.
“The Khavtsgait acquisition further underpins the core strategy of [Enkhgoviin]—to identify and develop
significant metallurgical coal opportunities, close to existing structure, that will meet anticipated
current and future demands from China and North Asian markets,” said Chairman Brian Thornton.
The project is located in the Khuvsgul province of northern Mongolia approximately 60 kilometers east
of provincial capital Murun and 230 kilometers west of the established rail spur at Erdenet. The
exploration license overlies a coal deposit similarly aged to other projects in northern Mongolia, such as
the Ovoot coking coal project owned by Aspire Mining Limited. The basin is known to hold hard coking
coal deposits. The company recognized the Khavtsgait opportunity as part of its regional
reconnaissance exploration project conducted by Enkhgoviin's experienced geologists. Initial
exploration indicated materials at Khavtsgait as similar to EC's newly discovered Nuurstei coking coal
project located approximately 60 kilometers to the west. The deal is Enkhgoviin's third major
metallurgical coal acquisition in Mongolia since its creation in March 2011.
Xanadu is a Mongolian exploration company with coal assets, Galshar in addition to Khar Tarvaga.
Source: Xanadu Mines Ltd.
SUU‟S ENTREPRENEURIAL BROTHERS SEIZE OPPORTUNITY IN MILK
Mongolia's largest dairy firm, Suu LLC, is being transformed by the Dagvadorj family. Max purchased the
plant, which first opened in 1958 when individual herders were still bringing containers of milk into the
city, to keep it out of the hands of Russian oligarchs who wanted in on “privatization” in their former
satellite.
“They saw a great potential here,” says D. Munkhjargal, the plant's executive director. They were
telling me if a Russian wants it, it must be valuable. They've got a different mindset—an
entrepreneurial mindset.”
It was clear to the Dagvadorj brothers that this could be another high-margin operation—a
characteristic of every sector they've touched. The plant alone can do at least 15 percent net margins,
but by adding satellites in remote locations—closer to the herds and to customers—they can leverage
their expertise.
With a small public float on top of the family stake and no-import duty on foreign machinery, Suu has
been bringing equipment and global expertise. After two years Munkhjargal has snagged an expansion
loan from the World Bank's International Finance Corp. at a mere 9 percent rate (compare with the 13
percent that is the going rate in Mongolia). Sales of USD 24 million are up from USD 1 million in 2005
and the staff size surged 70 percent in the past year.
Source: Forbes
JAPANESE FIRM HOPES TO BUILD RECYCLING PLANT
Kawashima Group, a Japanese firm with 50 years of recycling experience in Japan, is looking into the
possibility of building a recycling plant in Ulaanbaatar.
Deputy Mayor B. Baatarzorig received representatives of the firm on Tuesday to discuss cooperating on
the project. Kawashima recycles household waste into raw materials for industrial use. Baatarzorig
supported the firm's suggestion and said construction should begin as soon as possible. If the plant is
built, he said its outputs could replace raw materials that are currently imported.
Source: News.mn

5. RIO SPOILS CAMECO‟S BID FOR CANADIAN URANIUM MINER
The Canadian Competition Bureau cleared Rio Tinto's deal to buy Hathor Exploration after the former
upped its bid for CAD 4.70 (USD 4.52) a share, a four percent premium to Cameco's latest bid. Rio is a
49 percent stakeholder in Ivanhoe Mines and could possibly buy control of the majority stakeholder of
the Oyu Tolgoi project. Rio said the lock-up agreement it entered into with Hathor's board as part of
its earlier offer remains in effect. It reportedly owns 5.7 percent of Hathor's shares.
New York-based Hallgarten & Company mining strategist Chris Ecclestone said he believed Cameco
should back down, and avoid the risk of “being suckered into overbidding.” He also said Cameco's initial
hostile offer represented “full and fair value” for Hathor's shareholders, and that it would be unwise to
continue bidding and could lose credibility.
Announcing its first bid, Cameco said it decided to go hostile with the CAD 520 million offer after
Hathor's board rejected it. The uranium producer questioned Hathor's preliminary economic assessment
of CAD 567 million of capital expenditures for a five-million-pound-a-year mine at Roughrider, which
the junior announced on 13 September. The firm's revised offer expires just after midnight on 29
November.
The spot price for uranium jumped nearly 10 percent last week to reach USD 55 a pound, before
slipping to USD 52.50 a pound this week. The nuclear fuel had been selling for up to USD 73 a pound,
before the Fukishima disaster caused the commodity's prices to head south. Ecclestone said uranium
equities were still “dirt cheap.”
Rio wants ownership to get a foot in the door of Saskatchewan's Athabasca basin, which produces
around one-fifth of the world's uranium supplies.
Source: Mining Weekly, Zachs
PEABODY APPROACHES 100 PERCENT OWNERSHIP OF MACARTHUR
Peabody Energy said last week that it had acquired more than 90 percent of Macarthur Coal of
Australia. The announcement allows Peabody, the American coal company that will likely have up to a
24 percent stake in the Tavan Tolgoi Western Tsankhi project, to require Macarthur‟s remaining
shareholders, including South Korean Steel maker Posco, to sell their stakes.
Peabody is also increasing its offer to Macarthur by USD 100 million, to nearly USD 5 billion, as it raised
its bid to USD 16.52 and gained a 90 percent stake.
“We are very pleased to be acquiring 100 percent of Macarthur shares, which brings clear strategic and
financial benefits,” said Peabody Chairman and Chief Executive Gregory H. Boyce.
The announcement comes three weeks after ArcelorMittal, the world's largest steel manufacturer,
pulled out of a joint bid with Peabody Energy for Macarthur.
Source: New York Times
MONGOLIA ENERGY EXPECTS SIX MONTH PROFIT
Mongolia Energy Corporation expected to record a profit for the six months ended 30 September
compared to a loss for the corresponding period in 2010.
The company attributes its expected turnaround to profit to the accounting treatment on the
convertible notes issued by Mongolia Energy. The firm plans to release its interim results by the end of
this month.
Source: Etnet
RUSSIAN RAILWAYS NINE MONTH REVENUE UP, PROFIT OFF
Russian Railways reported revenue from freight services up 6.9 percent year-on-year to RUB 744.1
billion (USD 23.7 billion) in the first nine months of 2011. Russian Railways was awarded 18 percent for
the development of Tavan Tolgoi western block coal mine, but that decision is now being revised and is
also involved in the development of the Mongolian rail system.
The company attributes the growth to a 3 percent increase in freight volume to 921.7 million tons and
a 3.8 percent increase in its revenue rate which generated respectively RUB 20.7 billion (USD 660
million) and RUB 27.4 billion (USD 900 million) of additional revenue.
It also said volume increased primarily thanks to the growth of industrial production in the country.
Freight turnover rose by 8.3 percent year-on-year to two trillion kilometers in the nine months.
Revenues from passenger services plunged 86 percent to RUB 5.2 billion (USD 200 million) as long-
distance services were handed over to subsidiary OJSC Federal Passenger Company as of 1 April 2010

6. and regional route services to suburban passenger companies as of 1 January 2011.
Net profits fell 19.5 percent to RUB 56.1 billion (USD 1.9 billion) from core activities, with total
revenue up 7.8 percent to RUB 962.3 billion (USD 30.6 billion).
The company reported RUB 42.3 billion (USD1.3 billion) in government funding, including RUB 40 billion
(USD 1.25 billion) as a contribution to charter capital for the construction of facilities for the 2014
Olympics in Sochi, RUB 800 million in subsidies for railroad safety and RUB 1.3 billion under a program
to support freight shippers and passenger receiving social benefits.
Source: Steel Guru
NEW ROAD PROJECT OPEN FOR BIDS
The Millennium Challenge Corporation (MCC) and the Mongolian Government have opened the door to
bids for the construction of a 176.4 kilometer road between Choir and Sainshand at the border of
China.
Bidders will have the option of bidding on one of two lots for development or both. The first lot is for
the construction of a 90-kilometer-long road, while the second is 86.4 kilometers.
The bidding process will be governed by the MCC Program Procurement Guidelines, which restrict state-
owned enterprises. All bids must be accompanied by a bid security of USD 1 million. Documents
required for the bid will be accepted until 19 December.
A site visit will be held on 23 November, followed by a pre-bid conference 25 November.
Source: Millennium Challenge Account-Mongolia
ECONOMY
TUGRUG FLUCTUATIONS TEST MONGOL BANK
Fluctuations in Mongolia‟s currency have created uncertainty in doing business, especially in loan and
saving decisions.
Reliance on natural resources has led to a widening trade deficit, as major investments lead to large
imports of machinery, fuel, and mining transport equipment. The deficit reached USD 1.5 billion in
October, more than six times the previous year. Rising inflation also puts the tugrug at risk as people
tend to prefer U.S. dollars for the best value. Warnings from the International Monetary Fund (IMF) and
World Bank of a possible return to 2008 conditions of economic crisis have encouraged the sale of
tugrugs for dollars.
The Bank of Mongolia set the conversion rate at MNT 1,336 a dollar, the tugrug's weakest point since
last year. At the Naiman Sharga market, it reached MNT 1,370.
“It's clearly speculation,” said U. Ganzorig, president of the Financial Market Association. He added
that his expectation is for the tugrug to weaken a little more, but strengthen in the long term.
The Law on the Central Bank tasks the Bank of Mongolia with ensuring stability to the national currency
as its first priority. However, surging inflation puts it in a tough corner, and Mongolia's position as an
importer of most goods does not help things. To return stability to the tugrug, the Bank may participate
in the exchange market by FOREX auction, which takes place on Tuesdays and Thursday within the
officially licensed banks in Mongolia. Before this year, the Central Bank had not actively participated,
but during the last four FOREX auctions, the Bank sold dollars to commercial banks showing signs that
the tugrug's rapid fall is heavy on its mind.
Source: UB Post
FITCH GRADES MONGOLIA “B+”
Fitch Ratings affirmed Mongolia's Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at
“B+” with “Stable Outlook”. The agency has also affirmed its Short-Term IDR at “B” and “Country
Ceiling” at “B+.”
“Mongolia's economy is set to expand rapidly as the mineral sector develops, but a stronger policy
framework is needed to manage the boom,” said Andrew Coguhoun, head of Asia-Pacific Sovereigns at
Fitch. “The economy currently risks overheating amid rapid growth in bank lending and government
spending.”
Mongolia emerged from its International Monetary Fund (IMF) program with a new fiscal policy
framework, but savings have been negligible. Revision to the 2011 budget has exceeded its means as
well, despite legislation put in place to defend against this scenario. Strong growth in entitlement

7. spending 2011 that will be hard to unwind leaves the budget exposed to future commodity-price
volatility. However, the moderate level of government debt—expected at just 25 percent of its gross
domestic product (GDP) by the end of 2011—supports the ratings.
Real GDP grew 20.8 percent in the third quarter year-on-year, up 17.3 percent from the second
quarter. Fitch projects 17 percent growth for the year. Foreign direct investment (FDI), overwhelmingly
into the mining sector, totaled USD 2.7 billion or about 32 percent of GDP in the first nine months of
the year. However, the boom has other drivers beyond mining: government spending was up 43 percent
in October, while credit grew 79 percent. House prices rose a rapid 17 percent year-on-year in
September, as well as inflation by 10 percent.
Read more…
Mongolia's core public institutions and quality of governance are in the “B” range,” although
maintaining these strengths once mineral revenues start flowing strongly will be crucial. Per capita
income of USD 3,100 in 2011 is near the “B” range median but below the “BB” median of USD 3,700.
For the long term, building fiscal buffers against commodity price volatility would be positive for the
ratings, although progress on this around elections for Parliament in 2012 and the presidency in 2013
will likely be slow. Completing banking sector reform and strengthening bank supervision could reduce
risks of further banking crises.
Source: Fitch Ratings
CONSTRUCTION SECTOR LEADS IN JOB CREATION
The Mongolian government has created 64,635 new jobs in observance of its “Year of Support for
Employment” with a majority of jobs created in the construction sector.
Mongolians have found new jobs throughout the country. The majority of Mongolians who have entered
the workforce have taken up work in the construction sector. Over 28,000 of the newly hired are
female. Approximately 31,000 people found work in Ulaanbaatar. Of the jobs created, 12,370 are in
construction, 10,919 in agriculture, forestry and fishery, 8,184 in retail and wholesale, and between
6,000 and 7,400 in mining and exploration.
Source: Zuunii Medee
MEAT EXPORTS ON THE RISE
Mongolia and China have signed a meat trade agreement for 8 million sheep within the next three
years. Mongolian meat exports should contribute to the economy. Mongolia has a population of 2.7
million citizens compared to a domestic animal population over 40 million. Most exported meat is sent
to either Russia or China, but requests were limited up until now because of international hygiene
standards.
The recent agreement will allow for the export of mutton, goat meat, and wheat. Beef and horse mean
have yet to be decided upon while the two parties study the operations of Mongolian processing
companies and how to tax their products. Mongolian will import chicken from China, but not pork while
a ban on pork products from China remains.
Russia recently announced it would lift its ban on meat products from Mongolia. The ban was a result of
contaminated livestock found in Mongolia. Mongolia is preparing to export beef from 9,034 cows, horse
meat from 11,424 horses, and mutton from 3,226 sheep. Russia has expressed great interest in
importing more meat from Mongolia and will apparently dramatically increase the volume of its
imports.
Mongolia also exports meat products to Kazakhstan, Japan, Ukraine, Iran, and Vietnam. Last year's
meat exports grew by 32.9 percent to 23,800 tons from the year before. Mongolia sent 12,400 of beef
and horse meat to Russia; 8,100 tons of goat meat horsemeat, and mutton to Vietnam; and 1,300 tons
of horse meat to China.
Mongolian livestock has reached 45 million this year, while the country has the capacity to prepare
100,000 tons of meat, reported the Ministry of Food, Agriculture, and Light Industry. The meat
processing industry includes 5 large and 62 small meat and sausage producers, of which 60 are located
in Ulaanbaatar.
Source: UB Post
MINING PANEL URGES MONGOLIAN GOVERNMENT TO DIVERSIFY ECONOMY
Experts in the mining sector have recommended that the government invest in other sectors before its

8. resources run out.
A panel at the for “Sustainable Development and Urgent Issues of the Mineral Resource Industry” held
at Mongolian University of Science and Technology last week criticized candidates running for office in
Parliament and the presidency promising more than they can give by law and offering incorrect
interpretations of laws and state policies. Panel members urged government to establish a firm basis of
independent development in rural areas with benefits from mining projects throughout the lifespan of
those projects.
Source: Ugluunii Sonin
WORLD BANK LOOKS TO BUILD UP INSURANCE INDUSTRY
In vulnerable, poorer nations it is the government that bears the cost when disastrous weather hits.
The World Bank and other multinational bodies are responding to these concerns by working with
governments in countries like Costa Rica, Malawi and Mongolia to help them protect themselves
financially against extreme weather and the destruction it can cause.
“The aim is to try to develop the private insurance market, but also to protect insurer solvency in the
early day of underwriting catastrophic risk, as the industry increases its exposure to catastrophic perils
including hurricane and flood risks,” said a specialist at the World Bank. This kind of funding and
support helps “catastrophe insurance markets develop far more rapidly than they would otherwise,” he
added.
Government necessarily takes on the role of insurer of last resort—but in those countries without
developed insurance markets, the cost of disaster falls disproportionately on governments' immediate
financial resources and international aid. Many developing countries also do not have the data or
expertise to predict costs of a disaster—or the channels to sell insurance. This is one of the main areas
where the World Bank invests its own money to promote development.
A long lived and successful scheme is the Turkish Catastrophe Insurance Pool. Since 1985, the country
has suffered a series of massive earthquakes costing billions of dollars in damage and aid requirements.
More recently a similar but more specific scheme was set up in Mongolia when the government asked
the World Bank for help with livestock losses after a string of severe winters and drought resulted in
the death of 11 million livestock.
The World Bank and the Government set up a scheme based on an index of livestock losses from the
Mongolian National Statistics Office. The 2009-2010 season resulted in the largest ever payments,
totaling over USD 1.3 million. The fund was exhausted, and approximately 84 percent of losses were
paid from the contingent credit provided by the World Bank. This financing means the scheme can be
refueled and it has continued to expand to cover more provinces and herders.
Source: Financial Times
BHP CAUTIOUS ON SHORT TERM OUTLOOK FOR COMMODITIES
BHP Billiton, the world's largest diversified miner, said last week it was more cautious on short-term
outlook for commodity markets, but stressed that it remained committed to its USD 80 billion organic
growth plan. Chief Executive Officer Marius Kloppers said that while it was difficult to predict how the
financial markets would perform in the short run, the company was still able to sell what it produced.
“One thing we can probably say is that higher volatility is likely to remain until issues surrounding the
European debt markets are definitely addressed,” Kloppers said. “We have seen production
curtailments in some sectors, and we are generally seeing a more cautious approach in respect of
inventory management by our customers.” BHP long-term outlook is unchanged, however, he said.
Industrialization and urbanization in emerging markets will likely continue for several decades, he
added. For this reason, future long-term demand will likely hold.
Source: Mining Weekly
CHILE PREDICTS DECLINE IN COPPER DEMAND
According to a survey by the Chilean Copper Commission, copper prices should average at USD 3.62 a
pound. Copper is a major export from Mongolia and its prices largely dictate the health of the
Mongolian economy.
Cochilco surveyed 19 local mining analysts to find an insight into the possible trend of the metal which
is a key indicator of health. Chile produces almost 30 percent of global copper production. These
results are lower than previous forecasts because of possible economic slowdown.

9. “The lower prices outlook shows analysts have incorporated the possibility of a recession in the Euro
zone and the slower Chinese growth as a result of a reduced demand in the U.S. and Europe,” Andres
Mclean, Cochilco executive said in a statement.
Earlier, Codelco, Chile's top copper producer, offered a 4.3 percent cut in physical copper premiums to
its Chinese buyers for 2012, possibly indicating a slightly weakening demand in China.
Source: Commodity Online
DISPARITY BETWEEN COPPER AND ALUMINUM PRICES SIGNAL DARK ECONOMIC CLIMATE
Copper prices may indicate greater troubles down the road for the world economy. The trouble lies in
the gap between the marginal cost of supply and the price at which demand gets destroyed.
Copper, which is currently traded at USD 7,600 a ton, trades at 90 percent of its marginal costs of
production. Meanwhile aluminum, which trades at around USD 2,100 a ton, is 16 percent below as
demand grows nearly twice as fast as copper. Copper supply is much tighter and so prices rise until
some consumers are forced to use less. Therefore, China's insatiable appetite for copper has pushed
prices up to a point where demand in the industrialized world falls to accommodate it.
Conversely, aluminum inventories are relatively high and China has an abundance of smelting capacity.
Little fear of a supply squeeze leaves aluminum prices to languish near the marginal cost of production.
If prices fall well below that, high-cost, unprofitable capacity will close, tightening supply.
Investors who fear a China slowdown or Euro-zone credit crunch would be better off owning aluminum
over copper, as the latter has much further to fall before it hits its marginal cost floor. Bulls, however,
might prefer copper, as a commodity with constrained supply will do better when demand is growing.
Source: Wall Street Journal
GOLD CONTINUES TO BREAK RECORDS IN 2011
Gold demand climbed 6 percent to 1,053.9 tons in the third quarter, an all-time high of USD 57.7 billion
in value terms, with European investment demand surging to a quarterly record of 118.1 tons. Gold is a
major commodity of Mongolia, and its new valuations have convinced miners such as Kerry Mining to
concentrate more focus on gold production.
The European investment demand, which was up 135 percent year-on-year, was more than the
combined investment demand from China, India and the United States. The World Gold Council has
attributed the demand mainly to concerns over the Euro zone. Overall investment demand rose 33
percent year-on-year to 468.1 tons, earning USD 25.6 billion.
“The Euro-zone crisis is at its peak, and will continue to drive gold demand further into the start of
2012.” managing director for investment Marcus Grub said.
The crisis was causing investors to price in more factors, including the possible breakup of the 17-
country Euro-zone. Yet, while European investors were using gold as an effective hedge for portfolio
security investment, demand in China and India was also starting to increase for different reasons. This
was owing to people hedging against inflation.
Read more…
In the United States debate over raising the federal debt and the sovereign credit downgrade drove
third-quarter demand. China's demand for gold bars and coins expanded by 24 percent from year-
earlier levels to 60.2 tons. Chinese jewelry demand was 13 percent higher year-on-year at 131 tons,
while Indian demand was sluggish, declining by 26 percent to 125.3 tons.
Although global production levels have recovered to levels of about a decade ago, there was a
perceived geological constraint to more production. New finds tend to be smaller in scope and have
lower ore grades. Global supply was 1,034.4 tons in the quarter, 2 percent higher than year-on-year
levels, and mine production increased by 5 percent to 746.2 tons.
The long-term fundamentals for gold remain strong with a diverse and growing demand base coupled
with constrained supply-side activity,” Grubb concluded.
Source: Mining Weekly
SILVER SHARES IN SOME OF GOLD‟S GLORY
Silver prices were expected to exceed USD 50 an ounce by the end of 2012, Thomas Reuters GFMS
reported. Silver prices far this year have averaged 35.70, a rise of 88 percent year-on-year. In
Mongolia, record breaking prices for precious metals have caused miners to reevaluate their production
to allow for more gold and silver.

10. “We now forecast a full-year average price of USD 35.66 in 2011, and expect further price strength in
2012. The main driver of the price remains investment demand, which has absorbed the substantial
market surplus that has characterized the silver market in 2011,” GFMS said.
“The resultant silver market surplus is expected to once again be absorbed by investors. However,
downside risks remain, including the potential for the sovereign debt crisis to precipitate a liquidity
crunch, impacting the real economy.”
Nevertheless, GFMS said that it expected to see silver's bull run to continue, with the average price
expected to be in excess of USD 45 an ounce in 2012. World investment in silver may reach 278 million
ounces in 2011, its second-highest volume in the GFMS data series.
Read more…
Although this represented a slight fall in ounces from 2010, it would set a new record high in value
terms. Fabrication demand may also increase by some 4 percent in 2011, with industrial offtake set to
rise in spite of the Japanese earthquake, weak economic growth in western economies, and the end of
stock replenishment. Jewelry demand will like edge higher despite strong silver prices, while silverware
and photography would weaken further. Demand for coins and medals, however, is set to establish a
new record high.
The report expects mine production to grow by 4 percent for the ninth consecutive year. Globally,
output from primary silver mines was expected to increase marginally year-on-year.
Source: Mining.com
EBRD AND ADB PARTNER FOR FOCUS ON DEVELOPMENT IN CENTRAL ASIA
The European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB)
have agreed to work together on a range of projects to build capacity and promote public and private
partnerships across the Caucasus and Central Asia. The organizations aim to strengthen and deepen
cooperation in the common countries of operation: Armenia, Azerbaijan, Georgia, Kazakhstan,
Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan.
“Both our institutions are strongly committed to helping unlock the region's vast economic potential by
supporting market-oriented, private sector development, boosting public-private partnerships, and
building road, rail and energy networks necessary to facilitate growth in trade and commerce,” said
Thomas Mirow during a memorandum of understanding ceremony in London.
The ADB and EBRD are partners in the Central Asian Regional Economic Cooperation (CAREC) program,
which later this week celebrates its 10th anniversary with a Ministerial Conference in Baku, Azerbaijan.
Over the past decade, the CAREC partnership has developed energy networks and transport corridors
worth some USD 17 billion, connecting member countries to one another and to the booming markets of
East and South Asia, Europe, and Russia.
Source: Trend News Agency
AUSTRALIA'S MINING TAX CLEARS HURDLE
Australia's controversial tax on mining companies' profits cleared an important hurdle on Wednesday,
passing through parliament's lower house after more than year of debates on how to claw back some of
the growing profits made from natural resources. Such a tax will surely factor into Mongolia's
competitive edge, as Australia's biggest competitor of coking coal to China.
The government expects the tax, which has to pass through the Senate next year, to raise AUD 11
billion (USD 10.8 billion) in the first three years, although some analysts and companies question
whether tax receipts will meet expectations.
“The great advantage of the Minerals Resource Rent Tax is that the higher the mining company‟s profit,
the more tax is paid,” said Deputy Prime Minister and Treasurer Wayne Swan. “The MRRT will allow us
to spread the dividends of the boom.”
Former Prime Minister Kevin Rudd had first proposed a 40 percent tax on mining companies' “super”
profits last year in an effort to even out the growth in Australia's economy, where resource companies
are prospering even as manufacturers and tourism operators struggle. Industry opposition to the tax
helped force Rudd out of office. His successor, Julia Gillard, consulted with the major mining
companies before unveiling the revamped profit tax. The legislation passed parliament and Gillard
expects the bill to pass in the Senate.
The bill currently taxes iron ore and coal miners 30 percent on profits of more than AUD 75 million,
with write-offs for new investments and credits for past investments. The tax has been criticized most

11. vehemently by smaller miners, who say it is biased in favor of bigger groups who could be able to claim
credits for their existing investments.
Source: Financial Times, Wall Street Journal
YUAN STUMBLES IN ITS RACE FOR DOMINANCE
Current data suggests that the Chinese renminbi may be able to overtake the U.S. dollar as soon as
some believe. In its latest monetary policy report, the People's Bank of China revealed that the amount
of cross-border trade settled in the renminbi fell in the third quarter, the first decline since China
started using its own currency for imports and exports in June 2009. China has campaigned to its
surrounding nations, including Mongolia, to encourage more trade using Chinese currency.
“It's quite shocking because things were going so well,” said Dariusz Kowalczyk, Hong Kong-based
strategist at Crédit Agricole. “How fast the renminbi becomes an international currency will depend on
how acceptable it is in trade.”
After two years of uninterrupted increases, the total volume of renminbi-settled deals dropped by 2
percent to CNY 583 billion (USD 92 billion) in the third quarter compared with the previous three
months. As a share of all China‟s current account transactions, the renminbi fell to 7.8 percent, from
8.5 percent in the second quarter. Bankers have said that only a small proportion of the CNY 2,050
billion of trade settled in renminbi since 2009 involved companies outside mainland China or Hong
Kong.
One of the key reasons for the spectacular boom in renminbi trade settlement is that mainland Chinese
companies have been transacting with their own subsidiaries in Hong Kong in order to arbitrage
between the two markets. This activity abated in the third quarter, causing renminbi-settled trade to
decline.
Read more…
In recent months, however, as dollar liquidity has declined and concerns have risen about their
exposure to China, Hong Kong banks have become less keen to lend dollars against letters of credit
from the mainland. Meanwhile, the HKMA has cracked down on “illegitimate” renminbi payments,
threatening banks with penalties if they fail to obtain robust evidence. As long as Chinese currency is
embraced by international companies as well as opportunistic mainland groups, U.S. political
strategists have little to worry about.
Source: Financial Times
POLITICS
MPP SEARCHES FOR ADDITIONAL REVENUE FOR 2012 BUDGET
Members of the Mongolian People's Party (MPP) recently discussed ways to earn additional revenue in
order not to exceed the amount spent in 2011 in its 2012 Budget.
Although the government would like to reduce its proportionate spending for 2012, it has been unable
to make cuts in any programs. This includes MNT 70,000 monthly stipends for university students, MNT
12.4 billion for next year‟s election budget, MNT 16 billion for the distribution of new identification
cards.
Members suggested and approved a motion to sell licenses to the Olon Ovoot deposit for an addition
MNT 65 billion in revenue. It also proposed to raise taxes on trucks that damage roads.
Source: Udriin Sonin
NEW HEADS OF ANTI-CORRUPTION AGENCY NAMED
Government has selected N. Ganbold as the head of the Anti-Corruption Agency and B. Khurts as its
deputy.
Born in 1956 in Ulaanbaatar, Ganbold graduated from Mongolian Railway College before continuing his
studies at the Academy of Internal Security in Russia. During his career he has headed the General
Intelligence Agency and Ulaanbaatar police department, and acted as an advisor to the Mongolian
embassy in Russia.
B. Khurts, recently released from prison in Germany for the kidnapping and assault of D. Enkhbat, who
eventually died in Mongolian prison, has been awarded the deputy position to the agency. Born in 1969
in Ulaanbaatar, he studied at the Construction College in Irkutsk, Russia, the University of Economics
and Statistics in Moscow, and the Russian Academy of Security. He has worked as an economist and

12. lawyer.
Source: Udriin Sonin
GOVERNMENT TO INTRODUCE ELECTRONIC ID CARDS
The government plans to issue electronic identification cards to citizens beginning 20 December.
The cards are a part of the government's plan to develop a database for its public services. The new
form of identification will also provide more security, help the government track citizens, assist the
voting process in elections, and inform officials of a citizen‟s tax status and duty served as a soldier.
Citizens will be able to use the cards for obtaining welfare and security payments, health insurance
identification, and education.
The chip attached the card will be able to hold information such as fingerprints and digital photos of
citizens from last year's civil registration.
Source: Zuunii Medee
MPP HEADQUARTERS DESTROYED IN FIRE
The headquarters of the Mongolian People's Party (MPP) burned a week before its official opening.
Firemen received a call at 11:37 a.m. Sunday 20 November to put out the fire. No one was injured or
died in the fire. The fire occurred on the seventh and eighth floors of the Independence Palace Building
located near Sukhbaatar Square. The cause of the fire is currently under investigation.
“It is very suspicious,” said MPP Secretary General Ts. Sukhbaatar, “because the building was received
for acceptance by the State Professional Inspection Committee on 21 November or tomorrow.”
This is the second time the MPP's headquarter has been destroyed by fire. The building first burned in
2008 after riots broke out among those who opposed that year's election results. The party was able to
rebuild the building with MNT 13 billion worth of donations for its construction in 2009.
The party would have hosted an opening ceremony on 26 November. It suspects the fire may have been
arson committed by competing party officials.
Source: Udriin Sonin
JAPAN CUTS AID TO MONGOLIA
The Japanese government has reduced its aid to Mongolia.
Japanese Ambassador to Mongolia Takenory Shimizu has explained that the Japanese government plans
to focus its attention on health and education instead of non-repayable aid.
The Japanese government was disappointed in July by Mongolia's decision to exclude Japanese firms
from the development of the Tavan Tolgoi western block. Since then, however, the Mongolian
government has decided to revise its decision, further delaying the deal.
Source: Udriin Sonin
CONSTRUCTION OF NEW BRIDGE TO COMPLETE IN 2012
The construction of a new bridge has been requested by the Ministry of Road, Transport, Construction
and Urban Development to help better manage traffic in Ulaanbaatar.
Construction of the Narny Bridge is currently on hold during the winter months and will begin once
again in March, said project authorities. Mongolian companies Yalguusan and Ulaanbaatar Construction
and the Japanese engineering firm JFE are participating on the project.
JFE has said the project will finish by November 2012. The longevity of the bridge will depend on its
maintenance, and the firm warned without proper maintenance the bridge could last only 20 years.
Source: Udriin Sonin
JAPAN BUILDS MODERN SCHOOL IN RURAL COMMUNITY
The new 118th School in Khan-Uul Soum was built by the Japanese firm Di Nippon Konoike using
materials from the Olympic stadium in London.
Protective measures such as rubber linoleum for its floors and rounded edges to pillars and walls have
been installed. It has an underground gym with its own heating stove as well. The school cost MNT 4.6
billion for construction.
Officials from the Japanese Embassy said they would build four other schools similar to the Khan-Uul
Soum school.
Source: Udriin Sonin

13. NEW KOICA VOLUNTEERS TO SERVE IN MONGOLIA
Volunteers will participate in projects for construction, preliminary education, food technology, Korean
language education and x-ray technology using their knowledge and experience. All volunteers will
receive two months of training for language, history, and culture in addition to further activities with
officials before they take up their assignments across the country.
KOICA volunteers have served in Mongolia since 1992 and currently 94 volunteers serve throughout the
country.
Source: Zuunii Medee
MONGOLIA APPLIES TO JOIN OSCE
Mongolia's Ambassador to Austria and permanent representative to International Organizations in
Vienna, J. Enkhsaikhan formally informed member nations of the Organization for Security and
Cooperation in Europe (OSCE) of Mongolia's desire to join the organization.
In making his request, Enkhsaikhan told the ministers about Mongolia's foreign policy, its “third
neighbor policy”, and past cooperation with the OSCE. He also answered questions from the ministers.
The ministers said they supported Mongolia's request, with some ministers noting that the OSCE should
widen its activities to include the Euro-Atlantic and Euro-Asian regions. Mongolia's membership request
will be discussed at a conference of foreign affairs ministers from OSCE member countries in Vilnius in
December.
Source: News.mn
GOVERNMENT TO MEASURE POLLUTION PRODUCED AT POWER PLANTS
The government has introduced new equipment to reduce air pollution in Ulaanbaatar.
Ulaanbaatar's air quality agency has obtained a new tool that measures particulate matter with aid
from Japan's Capacity Development Project for air pollution in the capital. The apparatus will measure
the amount pollutants originating from power plants No. 1, No. 2, and No. 3, 200 boiler heaters, 1,000
coal fired water heaters, and 140,000 ger stoves.
With support from the project, the City government can identify levels of pollutions in certain zones of
the city to help in its effort to reduce air pollution, said specialist G. Davaajargal.
Source: Udriin Sonin
DISABLED LANGUISH AS SOCIETY CONTINUES TO IGNORE THEIR PLIGHT
Mongolia is sorely lacking the capacities to assist its disabled population. Although Mongolia ratified the
U.N. Convention on the Rights of Persons with Disabilities in 2009 to the benefit of disabled persons'
rights, It has few mechanisms to implement or monitor the implementation of laws, says S. Selenge,
director of the Association of Parent of Disabled Children (APDC), a non-profit that campaigns for
legislation to address disabled children's needs.
“There's nothing happening to properly survey and diagnose children and categorize their disabilities,”
she said, “Often it's poorly qualified doctors or even teachers who decide if a child is disabled simply
because the child is not doing well at school. Improper diagnosis is like closing the door on a child. ”
Many children with physical disabilities are not accepted by mainstream schools and often end up
segregated at special-needs schools where they are prepared for a life separate from society. Even
worse, most children don't attend school at all.
According to a 2008 survey by the Ministry of Social Welfare and Labor, only 21 percent of disabled
children attend regular schools, while 5.8 percent attend special-needs schools. The rest simply don't
attend school.
Segregation often puts a vicious cycle of poverty into motion. The State Social Welfare Office estimates
that nearly 80 percent of disabled persons in Mongolia live below the poverty line. With government
benefits for disabled persons at MNT 30,000 per month and another MNT 30,000 per quarter to cover
medical expenses, most of the disabled are unable to afford the treatment they need, activists have
said.
Read more…
Only about 2 percent of the 69,000 adults with disabilities who took part in a survey by the
Independent Trade Union of Disabled Persons of Mongolia hold a job. Most of those disabilities are
“mild to moderate,” usually a result of injuries or accidents. Unemployment remains despite a
government decree mandating companies to employ one disabled worker for every 25 able-bodied.

14. Failing that, employers are required to pay a fine equaling half the minimum salary to the Social
Welfare Fund for Disabled Persons. However, most companies prefer to pay that fine than to
accommodate a disabled worker.
Source: Eurasianet
TRAFFIC INCIDENTS UP 17.7 PERCENT
A conference was recently held to address a spike in traffic incidents this year.
Officials from the Crime Prevention Coordination Council at the Ministry of Justice presented the
Problems Facing Traffic Safety conference in response to increased accidents and deaths caused by
traffic and roadside incidents. Traffic offenses are up 17.7 percent to a total 1,533 offenses so far this
year, said J. Nyamdavaa, a police colonel and the secretary director of the council. Additionally, 299
citizens have died as a result of these incidents.
Source: Zuunii Medee
POLICE INVESTIGATE MURDER AT OT
Oyu Tolgoi LLC is participating in an investigation with police of a murder at its Oyu Tolgoi copper and
gold project.
A man's body was found on 18 November at Khanbogd Soum, Umnugobi Aimag. The man was an
employee of the French firm, Catering International & Services.
So far police have refused to comment on the incident before they know more about the incident. Many
have blamed Chinese workers because of a recent incident when Chinese workers attacked a female
employee a few days prior. The woman is currently at the SOS Medica hospital located at the Oyu
Tolgoi site.
Source: Undesnii Shuudan, Nasdaq
MONGOLIAN FOSSILS INDICATE RARE BEHAVIOR AMONG DINOSAURS
Scientists have discovered a 70-million-year-old nest filled with the remains of baby protoceratops
dinosaurs, providing clues about the dinosaurs' early behavior.
“I, for one, cannot think of another dinosaur specimen that preserved 15 juveniles at its nest in this
way,” says lead author Dr. David Fastovsky, from the University of Rhode Island's Department of
Geosciences.
While large numbers of eggs have been associated with other dinosaurs, such as the carnivorous
oviraptor or certain duck-billed hadrosaurs, finding multiple juveniles in the same dino nest is quite
rare. Fastovsky and his colleagues analyzed the dinosaur remains along the nest, which measured about
70 centimeters in diameter and was round and bowl-shaped. All were found at Djadochta Formation,
Tugrikinshire, where it is believed sand “rapidly overwhelmed and entombed” the youngsters while
they were still alive.
The researches conclude that the 15 dinosaurs all showed juvenile characteristics. These include short
snouts, proportionately large eyes, and an absence of adult characteristics, such as the prominent
horns and large frills associated with adults of this species. At least 10 of the 15 fossil sets are
complete.
The nest and its contents imply that protoceratops juveniles remained and grew in their nest during at
least the early stages of postnatal development. It further implies that parental care was provided. The
large number of offspring, however, also suggests that juvenile dinosaur mortality was high, not only
from predation, but also from a potentially stressful environment.
Source: ABC
ANCIENT HORSE RETURNS TO MONGOLIA
An ancient species known as Przewalski's horse has narrowly avoided extinction thanks to zoos
worldwide and is cautiously being reintroduced to its homeland in Mongolia. Four of the horses returned
home from the Prague Zoo in the Czech Republic this month.
“We expect to move another four horses in 2012,” said the zoo's director, Moslav Bobek. The last of
these horses in Mongolia were seen in 1969, but the zoo in Prague has been breeding them for decades.
More than a third of the 1,800 Przewalski horses living in the world today, including 1,600 in captivity,
are related to horses bred at the Prague zoo.
Prezwalski's horses have thick necks, large heads and stocky bodies. They typically weight 550 to 750

15. pounds and stand about four feet tall at their withers (shoulders).
Source: Washington Post
NEW MONGOLIAN LAWS AND REGULATIONS
The following laws, addenda and amendments were published in the latest weekly Government
bulletin. Unless otherwise decided by Parliament, it will take effect ten (10) days after publication.
Date Laws, Addenda and Amendments
17.11.2011 Law on Driver's Insurance
Amendments to Law on Insurance
Addendum to Law on Traffic Security
Amendments to Law on Auto Transportation
Amendments to Civil Code
Amendments to Law on Seed Plantation
Amendments to Law on Economic Entity Income Tax
Amendments to Law on Social Insurance
Amendments to Law on Notary
Addendum to Law on Advocacy
Law on Ratification of Prisoner Transfer Treaty
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
RISK MANAGEMENT FORUM ON 30 NOVEMBER
The Business Council of Mongolia and Mandal General Insurance are co-organizing the second annual
Risk Management Forum to be held on Wednesday, 30 November 2011, at Ulaanbaatar Hotel.
The forum allows business representatives and industry leaders to discuss policies, strategies and
tactics to manage risk exposure, and provides an ideal setting for them to network and the exchange of
ideas. This year the forum will feature speakers from various sectors to discuss relevant risk
management topics within four panels: “General Risk Management,” “Financial Markets Risk
Management,” “Risk and Society,” and “Mining Risk Management.”
The fee is USD 100 for attendance. Please note that for company Directors there is a possibility to attend the
conference at no fee if they complete a "risk management survey" on the website www.riskforum.mn. Space is
limited so register today at tuya@mandal.mn or at 99797908 and 70107007.
For more information, please visit www.riskforum.mn.
___________________________________________
RUNGE'S TRAINING COURSE--”MINING FOR NON-MINERS,” 5-6 DECEMBER
Runge, a world class mining consulting, software, and training company, is offering its third “Mining for
Non-Miners” course to be held December 5-6 in Ulaanbaatar. BCM is assisting in the organization of the
training course.
The aim of the course is to provide those from a non-mining background with a comprehensive
introductory understanding of the mining industry. The course duration is two days, with the first day
focused on coal mining, and the second day on metal mining.
The two day course will cost USD 700 per student and will be delivered in Mongolian.
The number of participants is limited. Please register by Wednesday, November 30 at
saruul@bcmongolia.org, or call 317027.
___________________________________________
MONGOLIA INVESTMENT SUMMIT 2011, LONDON, 8-9 DECEMBER
Are you looking for the next frontier market to generate stable returns? Do you find it difficult to

16. access investment opportunities and forge partnerships in Mongolia? Do you need to be educated about
Mongolia‟s capital markets and the effects of the stock exchange‟s modernization?
Then you should attend the second annual Mongolia Investment Summit 2011, where government
officials, mining companies, Mongolian businesses and European investors are coming together to
discuss the opportunities and risks surrounding investing in Mongolia.
What to expect:
Over 100 investors, government officials and companies operating in Mongolia will come together to
discuss the opportunities that Mongolia holds for foreign investment. With unique networking
opportunities the Mongolia investment Summit is the meeting place for this market.
Mongolia Investment Summit is taking place in two week‟s time from 8-9 December at the Hilton Tower
Bridge Hotel in London. To find out more please contact Stacey Kelly at stacey.kelly@terrapinn.com.
BCM is a Supporting Organization of the event and BCM members can receive a 15% discount off the
conference ticket price. Please use the following link:
https://secure.terrapinn.com/V5/rCalc.aspx?E=4306&C=1448VCRS.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAYS AT 21:15
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with BCM
on “MM Today”. This English news program is aired every Friday for 10 minutes and is scheduled for
21:15 tonight. Tune in to watch this program that reports stories from today‟s BCM NewsWire.
___________________________________________
“BSPOT” ON B-TV, MONDAY TO FRIDAY AT 21:30
B-TV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every
evening from Monday to Friday at 21:30, taking most of the stories from the BCM NewsWire.
___________________________________________
POSTINGS ON BCM‟S ENGLISH WEBSITE 'PRESENTATIONS' AND 'MONGOLIA REPORTS' AND BCM‟S
MONGOLIAN WEBSITE „NEWS‟ SECTIONS
As a key component of BCM‟s Mongolian website, „News‟ section, articles from the Government‟s
“Open-Government.mn” site are regularly posted. Also several draft laws, still to be discussed in
Parliament, are posted on BCM‟s English website in the Legislative Working Group section.
On BCM‟s English website - „Resource, Presentations‟ section for your review are several speeches at
Discover Mongolia 2011, speeches from BCM‟s 9 monthly meetings in 2011, and the address by Peter
Nicholls, OT‟s VP-Operations, at Global MInES in Sydney on July 4.
Also on BCM‟s English website, „Resource, Mongolia Reports‟ section please note "Blitz and Lead" by
Sant Maral Foundation, August 2011, Z. Batbayar, Deputy Director of the Water Authority, at BCM‟s
Environmental Working Group‟s recent meeting, the Polit Barometer-May 2011 from Sant Maral
Foundation and the U.S. Embassy Mongolia‟s Commercial Section‟s “2011 Mongolia Investment Climate
Statement” - www.bcmongolia.org.
We are now posting some news stories and analyses relevant to Mongolia on the BCM website's
„Mongolian Business News‟ as they come, instead of waiting until Friday to put them all together in the
weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will incorporate
items that are already on the home page, so that it presents a consolidated account of the week‟s
events.
___________________________________________
NETWORK WITH BCM
The Business Council of Mongolia (BCM) is expanding 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 with the
community. Hear breaking news and announcements as they happen when you follow BCM on Twitter
at http://twitter.com/#!/bcmongolia. Connect with BCM on Linked-in to join the diverse group of
professional contacts creating a better business environment in Mongolia today.

17. Of course for news information, interviews, and announcements regarding our organization, visit the
official BCM website at bcmongolia.org and bcm.mn.
___________________________________________
ECONOMIC INDICATORS

18. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
October 31, 2011 *10.9% [source: NSOM]
*Year-over-year (y-o-y)
CENTRAL BANK POLICY 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]

19. CURRENCY RATES – November 24, 2011
Currency Name Currency Rate
U.S. dollar USD 1,321.79
Euro EUR 1,776.88
Japanese yen JPY 17.16
British pound GBP 2,058.56
Hong Kong dollar HKD 169.63
Chinese yuan CNY 207.90
Russian ruble RUB 42.31
South Korean won KRW 1.16
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.