July 26 2013

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 284 - July 26, 2013
NEWS HIGHLIGHTS:
Business
 Oyu Tolgoi CEO to step down in November after term ends;
 Mongolia grants 1-year contract to mine Tavan Tolgoi west block;
 Friedland sends congratulatory remarks for OT export;
 State Bank takes over Savings Bank as controlling shareholder defaults on loans;
 MGG to divest Mandal;
 Wolf Petroleum begins 2D seismic at Sukhbaatar block;
 South Korea’s Caffe Bene to plant flag in Mongolia;
 Volvo tests the waters in Mongolia for heavy equipment supply;
 Spanish tech firm to improve air traffic management;
 MGG sees upswing from government mortgage program;
 Kincora to issue 4.35 million shares to Origo;
 Mongol TV looks west again;
 Korea trade and investment office to open in UB;
 Anglo American results underline challenges for new CEO.
Economy
 Moody's adjusts country ceilings for Mongolia;
 Foreign trade falls 7.3 percent y-o-y as of 15 July;
 Mongolia raising electricity prices for miners by as much as 30%;
 Mongol Bank auction and swap agreement;
 Delegation to travel abroad to report on use of proceeds from Chinggis bond;
 Mongolian firm makes plans for iron-ore plant;
 Judges to receive pay raises up to MNT 6 million;
 Mongolia to implement German technology in coal liquefaction plant;
 New project aims to make UB a ‘Smart City’;
 Foot-and-mouth outbreak in Bayan-Ulgii;
 Snow leopards and wild yaks becoming 'fashion victims';
 Gold hits one-month high on continuation of U.S. QE relief;
 River diversion project spells disaster for herders;
 Signs suggest China warming to idea of stimulus;
 China coal-fired economy dying of thirst as mines lack water;
 U.S. taxpayers to pay USD 240,000 to help improve air quality In Mongolia;
 Extracting investor interest in Mongolia.
Politics
 EU, Mongolia to partner in agriculture;
 Mongolian, U.S. engineers team up to renovate school;
 Mongolia awards Colorado professor ‘Champion of Nature’ honor;
 Mongolia is stressed out;
 Mongolia holds middle ground in 2013 Failed State Index;
 Erdenet director's arrest related to SPC investigation;
 Two N. Koreans caught smuggling medical goods;
 Turkmenistan, too, plans new law on foreign investment;

2.  Gobi Altai gives honors to Gobi bear.
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 Major Drilling
International SOS Wagner Asia Automotive
Wagner Asia Equipment Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BUSINESS
OYU TOLGOI CEO TO STEP DOWN IN NOVEMBER AFTER TERM ENDS
Cameron McRae, chief executive officer of Rio Tinto PLC's Oyu Tolgoi LLC, plans to step down from
his job, three years after taking control of Mongolia's biggest company, according to a person
familiar with the matter.
McRae's departure at the end of his three-year contract, which comes due in November, has been
communicated within the company, said the person, who asked not be identified because the
information isn't public. A successor has yet to be named, the person said.
McRae has steered Oyu Tolgoi through an inception that has included shareholder clashes over cost
over-runs, tax payments and a lack of local participation in the management of the USD 6.6 billion
copper and gold mine. Enough of the disputes were resolved to allow the project to begin copper

3. shipments earlier this month, after two postponements as Mongolia sought to ensure revenue from
the mine is passed through domestic banks.
Source: Businessweek
MONGOLIA GRANTS 1-YEAR CONTRACT TO MINE TAVAN TOLGOI WEST BLOCK
Mongolia has lined up three local firms to mine the West Tsankhi block of the giant Tavan Tolgoi
coal mine for a year, an executive at the state-owned mining company said on Friday, as the
country aims to boost coal output.
Mongolia is racing to start producing coal from the long-delayed project as it is under pressure to
plug a budget gap and help pay down debt to Aluminum Corp. of China (Chalco) amid a sharp
downturn in coal prices. Delgersaikhan Tsagaan-Uvgun, head of mine planning and technical
coordination of state-owned Erdenes Tavan Tolgoi LLC, said the company has finalized a one-year
contract for mining at the 888 million-ton West Tsankhi block to a consortium of three local
companies. The deposit is owned by Erdenes TT, which has contracted work at its East Tsankhi
deposit to Australia's Macmahon Holdings and Germany's BBM Operta.
The company said it expects to mine a total of up to 6 million tons this year at the east block and 2
million tons at West Tsankhi. Chief Financial Officer Batdorj Enkhbat told Reuters that the company
was in talks to export coal to new international markets, such as Japan or Korea, as the landlocked
country looks to ease its dependence on China.
Source: Reuters
FRIEDLAND SENDS CONGRATULATORY REMARKS FOR OT EXPORT
Former Ivanhoe Mines Chief Executive Robert Friedland penned a short statement about the first
shipments from Oyu Tolgoi.
―On July 17, 2001, Ivanhoe Mines reported its deep drilling had discovered a zone of 'potentially
significant gold, copper and molybdenum mineralization' at Turquoise Hill (Oyu Tolgoi),‖ said the
former executive of the company that had its named changed to Turquoise Hill Resources Ltd. after
Rio Tinto PLC took majority control. ―This exploration breakthrough in Mongolia's South Gobi region
by Ivanhoe's geological team opened the door to a decade of discovery and development that
established Oyu Tolgoi as one of the great copper and gold discoveries of all time.‖
He added, ―The initiation of mineral exports gives the people of Mongolia one more achievement to
celebrate at their traditional Naadam summer festival this week.‖
Source: Mining.com
STATE BANK TAKES OVER SAVINGS BANK AS CONTROLLING SHAREHOLDER DEFAULTS ON LOANS
Khadgalamch Bank, Mongolia's fifth-largest lender, has been declared insolvent after affiliated
companies defaulted on loans, and will be taken over by a state-owned competitor, the central
bank said.
Toriin Bank, or State Bank when translated to English, will take over the 503 branches of
Khadgalamch Bank, also known as Savings Bank in English, said Danjilaa Ganbat, director of the
banking supervision department at the Bank of Mongolia on 22 July. Savings Bank was owned by Just
Group, a holding company based in the capital, whose other assets include Just Oil LLC. The
takeover is the first by the government since 2009.
With 1.7 million customers in a nation of 2.9 million, Savings Bank accounts for about 8 percent of
active banking assets and 55 percent of government financial services, such as disbursement of
pensions and payment of utility bills, according to the central bank. Other lenders are healthier,
said Dambadarjaa Jargalsaikhan, an economist and commentator on the television show De Facto.
―The central bank now has things under control,‖ Jargalsaikhan said. ―I don't think all the banks are
like this, but we should draw certain lessons. There was too much risk on one individual and there
was a problem with poor corporate governance and conflicts of interest.‖
Sharavlamdan Batkhuu, Just Group's controlling shareholder, and other companies in that group
have defaulted on loans since 2011, Ganbat said. Savings Bank is the third lender to be taken over
by the government, following Anod Bank JSC in 2008 and Zoos Bank JSC in 2009. The lender has

4. losses of MNT 180 billion and its working capital is MNT 94 billion lower than its assets, the central
bank said. All 503 Savings Bank branches were closed the day of the announcement as the assets
were moved to State Bank, Ganbat said.
Source: Bloomberg
MGG TO DIVEST MANDAL
Mongolia Growth Group (MGG) has labeled its insurance arm, Mandal General Daatgal LLC, a non-
core business in respect to its future direction.
Management of MGG believes that a disposition of Mandal will allow MGG to focus its energy,
corporate resources and capital on its core real estate leasing business with the goal of creating the
most successful institutional property company in the rapidly growing economy of Mongolia. While
divesting Mandal will prevent the company from participating in the future growth of the Mongolian
insurance market, the benefits of a divestiture are expected to include some upsides. This includes
the release of capital to re-invest in the property business, annual costs savings for regular
expenses such as audit, savings from the elimination of recurring marketing losses of Mandal, more
predictable revenues, and reduced risks.
―Mandal no longer fits into the MGG portfolio,‖ said Ulziibayar Ganzorig, president of Mandal. ―MGG
has been very supportive of us from the beginning. They have helped Mandal become one of the
best insurance companies in Mongolia, and we are excited about our future as a standalone
enterprise.‖
Source: Mongolia Growth Group
WOLF PETROLEUM BEGINS 2D SEISMIC AT SUKHBAATAR BLOCK
Wolf Petroleum Ltd. has started acquiring 2D seismic to assist with identifying drillable prospects at
its Sukhbaatar block in Mongolia.
The 451 line kilometer survey will also support upgrading of previous leads to prospects on the
company‘s nearby Baruun Urt block. It is expected to be completed in August. Results will be sent
to the U.S. for processing and interpretations will be carried out by MHA Petroleum. Wolf will shoot
340 kilometers of 2D seismic over the Tuvshiree and Uulbayan sub-basins while another 113
kilometers will be shot over the Talbulag basin and extension.
The company had previously noted all four sub-basins within the block had areas of high heat flow,
which can enhance hydrocarbon cracking and migration, while alteration minerals commonly found
near petroleum seep areas have also been identified. In addition to the seismic acquisition
program, Wolf is collecting more than 7,350 samples from shot holes for geochemical analysis.
A recent geological survey had indicated that the oil generative sediment at the Sukhbaatar block is
up to 9,600 meters thick, the largest and thickest in eastern Mongolia. This is up from the previous
estimate of 4,000 meters and has led the company to suggest that the sub-basins at Sukhbaatar are
a potential main petroleum generation source in the region. The first exploration well is currently
scheduled to spud toward the end of 2013.
Source: Proactive Investors
SOUTH KOREA’S CAFFE BENE TO PLANT FLAG IN MONGOLIA
South Korea‘s Caffe Bene will expand its business into Mongolia and Cambodia after the U.S. and
China.
The coffee chain on Monday said that it signed a franchise deal with local companies in the two
Asian countries and plans to open stores within this year. It will open two outlets, one in downtown
Ulaanbaatar and the other in the Boeung Keng Kang area, which is filled with fancy restaurants and
cafés in Phnom Penh.
Caffe Bene also operates seven outlets in the U.S. and 55 in China and two in the Philippines. It also
plans to open shops in Saudi Arabia and Indonesia within this month.
Source: The Chosunilbo

5. VOLVO TESTS THE WATERS IN MONGOLIA FOR HEAVY EQUIPMENT SUPPLY
Swedish automobile and equipment manufacturer Volvo expressed interest in opening a
representative office in Mongolia to supply heavy machinery.
Lawrence Luo, president of Volvo CE China, met with Construction and Urban Development Ministry
General Secretary R. Erdenburen on 23 July, where they discussed the possibility for Volvo to enter
the market. Erdenburen said Mongolia's construction sector received USD 1.2 billion of investment
this year while noting that Ulaanbaatar was devoted to developing its ger districts, where 60
percent of the city population resides. He said the ger districts would need infrastructure such as
plumbing installed.
Providing housing is a chief aim of the government for Mongolia, said Erdenburen. The ministry was
in the process of developing a bill to reform construction regulations to be submitted to Parliament
in the upcoming fall session. Erdeneburen also pointed to the 8 percent mortgage program for new
mortgages and refinancing.
Source: Info Mongolia
SPANISH TECH FIRM TO IMPROVE AIR TRAFFIC MANAGEMENT
Indra Sistemas SA, a Spanish consultancy and technology firm, is helping Mongolia improve airspace
surveillance and air traffic control.
Under an award from the Mongolian Civil Aviation Authority, the company will install its ADS-B
systems at various points in the country. The automatic dependent surveillance-broadcast will
strengthen the visibility of air movements and complement the Mode S MSSR radar surveillance
systems the company previously deployed in Mongolia and which are currently in service.
―The implementation of these new systems will improve the fluidity of air traffic in a zone crossed
by one of the most important routes linking Europe and Asia,‖ Indra said. ―They will also improve
the control of aircraft approaches to the airport serving the country's capital, Ulaanbaatar.‖
Source: UPI
MGG SEES UPSWING FROM GOVERNMENT MORTGAGE PROGRAM
Mongolia Growth Group Ltd. set a new record for revenues last month on the back of increased
market activity in the real estate sector following the launch of an 8 percent government mortgage
program.
―Needless to say, the magnitude of this program is truly massive and bound to have many very
positive knock-on effects for any business that is tied to the consumer economy,‖ said Chief
Executive Harris Kupperman. ―It goes without saying that given our heavy exposure to retail space,
our company is already seeing sizable benefits from the added liquidity.‖
Kupperman said the decline in mortgage prices for new borrowers and refinancing borrowers would
likely accelerate its time for growth. MGG reported a monthly revenue high in June, pointing to
leases of renovated properties for the growth. The company still has two more properties under
redevelopment to be completed by the year‘s end for a 40 percent revenue gain from June levels.
Source: Mongolian Growth Group Ltd.
KINCORA TO ISSUE 4.35 MILLION SHARES TO ORIGO
Kincora Copper Ltd. announced its intention to issue 4.35 million shares at USD 0.05 a share to
Origo Partners PLC as consideration for annual interest expense relating to its USD 2.5 million
convertible note.
Kincora issued the convertible note in July 2012, bearing interest at 8.7 percent a year, calculated
and paid annually by way of the issuance of common shares of Kincora with principal convertible
into common shares at a price of USD 0.25 a share before 18 July.
Origo is currently the largest shareholder of Kincora, holding 34 percent. The deal is subject to TSX
Venture Exchange approval.
Source: Kincora Copper Ltd.

6. MONGOL TV LOOKS WEST AGAIN
Mongol TV has renewed a number of its U.S. and U.K. imports as well as prepping a Dutch format as
a daily strip and eyeing Korean opportunities.
The channel, currently transforming Mongolian television with a Westernized programming strategy,
has renewed U.S. dramas Homeland, The Good Wife and Hawaii Five-O from CBC Studios
International, as well as U.K. hit Downtown Abbey from NBC Universal. The acquisition all debuted
in February, when the four-year-old channel launched its refreshed programming schedule, with
local productions, localized formats and acquisitions. The network is also working on a second
season of children's gameshow Go 4, based on a format from Belgian production company, Sultan
Sushi, acquired via sister company Red Arrow International.
―We did 20 episodes of Go 4 in mid-season and we're now prepping another 20 for mid-season next
year,‖ said Michel Rodriguez, chief executive of The Format People, who is consulting with the
Mongol channel's chief executive Nomin Chinbat on its new programming plans.
The channel is also adapting 20-year-old comedy quiz format Who Am I?, acquired from Dutch sales
house Absolutely Independent, as a daily primetime strip debuting mid-September. As well as
overhauling Mongolia's television landscape with its new programming strategy, Mongol TV has been
instrumental in bringing a new audience measurement system to the country.
Source: C21 Media
KOREA TRADE AND INVESTMENT OFFICE TO OPEN IN UB
Korea opened its Korean Trade and Investment Promotion Agency (KOTRA) in Ulaanbaatar on 26
July.
The new business center is designed to strengthen economic cooperation between Mongolia and
South Korea, to increase foreign trade and support Korean businesses operating in Mongolia.
Scheduled to attend the ceremony was the agency's president, Oh Young-Ho, Korean Ambassador
Lee Tae-Ro, and President of the Institute of Science and Technology of Korea Mun Kil-Chu.
Source: Info Mongolia
ANGLO AMERICAN RESULTS UNDERLINE CHALLENGES FOR NEW CEO
Anglo American PLC, who opened an office in Mongolia to seek opportunities regarding coal and
copper here, revealed quarterly production figures that analysts compared unfavorably with those
of rivals. The results underline the challenges facing new chief executive Mark Cutifani as he
prepares to unveil his strategy for the underperforming mining group.
On Thursday Anglo American said production of copper and diamonds had risen year-on-year in the
second quarter ending 30 June, but the miner's output of coal, platinum and iron ore fell. Iron ore
from Anglo's South African Kumba subsidiary has been a cash cow for the company, but the
commodity—used in steelmaking—is an area where it has been weak relative to rivals such as BHP
Billiton Ltd. and Rio Tinto PLC, the main operator at the Oyu Tolgoi copper mine.
John Meyer, an analyst at SP Angel Corporate Finance in London, said Anglo's figures ―spoil[ed] a
good run of production numbers‖ from mining companies including BHP Billiton and Rio Tinto. Both
companies this week announced higher iron ore output from their low-cost Australian mines.
Iron ore output at Kumba was down 1 percent year-on-year, partly because of the impact of a strike
last year. Export sales volumes from the subsidiary were down 4 percent. Anglo's copper output
increased 14 percent, but the company said there was a ―backdrop of continued caution around the
operating performance recovery and stability‖ of production of the metal. It left its guidance for
annual copper production unchanged. Anglo also cut its output of coal to be exported for use in
steelmaking, partly because of a weaker market. A small coking coal mine would be temporarily
shut down because of weak prices, Anglo said.
Analysts at Liberum called the production figures a ―mixed bag‖ with no huge surprises. Analysts at
Bernstein said the results were disappointing, but added: ―We cannot say that such performance is
really shocking from a company embarking upon a turnaround path.‖
Source: Financial Times

7. ECONOMY
MOODY'S ADJUSTS COUNTRY CEILINGS FOR MONGOLIA
Moody's Investors Service adjusted the local currency (LC) country risk and foreign currency (FC)
bond and deposit ceilings for Mongolia as well as Thailand and Oman. The sovereign bond ratings
are not affected by the changes in the ceilings.
The changes in ceilings refers to the highest rating that can be assigned to a domestic issuer in
these countries. For Mongolia this means the LC bond ceiling was changed to Ba3 from Baa1; (2) the
long-term LC deposit ceiling was changed to Ba3 from Baa2; (3) the long-term FC bond ceiling was
changed to Ba3 from Ba2; (4) the long term FC deposit ceiling remains at B2; and (5) the short-term
FC bond and deposit ceilings remain unchanged.
Moody's decision to adjust the LC country ceilings for Mongolia is based on application of the rating
agency's Currency Country Risk Ceiling for Bonds and Other Local Currency Obligations methodology
published earlier this year. The adjusted local currency ceilings are consistent with the
methodological framework which positions the ceiling against Mongolia's sovereign bond rating of B1
and sovereign bond methodology factor scores, three of which are the key drivers of the ceiling. In
Mongolia's case these consist of a ―low‖ assessment of economic strength, a ―low‖ assessment of
institutional strength, and a ―high‖ assessment of susceptibility to political, economic, or
institutional risks. Moody's decision to adjust the LC country ceilings for Mongolia is also influenced
by specific risks inherent in the country's operating environment: A history of boom-bust economic
cycles and uncertainties affecting the predictability of the foreign investment regime.
FC ceilings were adjusted to reflect Moody's assessment of moratorium risks given the country's
ability and willingness to service both its public and private cross-border debt obligations. The
ceiling takes into account Mongolia's sizable financing needs on the one hand and its traditionally
open economy with few capital controls on the other.
Source: Moody's Investors Services
FOREIGN TRADE FALLS 7.3 PERCENT Y-O-Y AS OF 15 JULY
Foreign trade fell 7.3 percent at 15 July from the year before, amid shrinking exports and imports.
Mongolia has a current foreign trade balance deficit of USD 1.2 billion, a 0.5 percent decrease year-
on-year. Although the weak foreign trade data is indicative of an overall weakening of the
economy, the year-on-year gap decreasing slightly from 8.5 percent to 7.3 percent does provide
some encouragement.
Mongolia has seen fewer imports of diesel fuel along with heavy machinery which are likely a result
of a flagging mining sector. However, the fall in imports of consumables such as flour and
vegetables indicates that domestic production is stronger than previous years.
Source: Mongolian Investment Banking Group
MONGOLIA RAISING ELECTRICITY PRICES FOR MINERS BY AS MUCH AS 30%
Electricity prices for mining companies that tap into Mongolia's central grid will rise by as much as
30 percent in August, the country's Energy Regulatory Commission (ERC) on 19 July.
―The mining companies are using most of the energy in the country, around 40 percent of the
total,‖ Sainbuyan Otgonbayar, chairman of the commission, said at a briefing. ―So instead of
increasing the price for citizens, we have decided to pass the biggest part of the cost increase to
the mining companies.
The cost of electricity at peak times will rise 30 percent from current rates, with the average price
increase at 24.86 percent, said Sereejav Tsetsgee, the head of ERC's regulation department. The
new rates will go into effect on 5 August. Meanwhile, the change in rates would not affect the Oyu
Tolgoi copper-gold mine because it receives its electricity from China.
Residential rates for apartments will remain at the current MNT 79 per kilowatt hour up to 150
kilowatts of usage. If the usage exceeds 150 kilowatts, the rate will increase to MNT 96 which could
be an increase of up to 15 percent.
Source: Bloomberg

8. MONGOL BANK AUCTION AND SWAP AGREEMENT
The Bank of Mongolia sold USD 90 million in swap agreements to local commercial banks on 25 July.
The central bank auctioned to commercial banks USD 30 million for a bid of CNY 156.5 million (USD
25.5 million).
The foreign exchange auctions are held on Tuesdays and Thursdays. Commercial banks are the only
eligible bidders for the auction, which is used to maintain stability in the foreign exchange market.
Source: Bank of Mongolia
DELEGATION TO TRAVEL ABROAD TO REPORT ON USE OF PROCEEDS FROM CHINGGIS BOND
A Mongolian delegation will be traveling abroad to reconvene with investors in the USD 1.5 billion
2012 Chinggis bond.
Delegates representing the central bank will travel throughout Europe and Asia to report on
spending of the proceeds from the bond. Mongolia hopes to quell any doubts investors may have on
Mongolia in an effort to keep yields low. Mongolian officials first traveled abroad in November 2012
for a road show for the bond.
Source: UB Post
MONGOLIAN FIRM MAKES PLANS FOR IRON-ORE PLANT
Mongolian firm Nano-metal has partnered with Italy's Daniela Group for iron ore processing.
The companies are cooperating for the construction of a processing and enrichment plant for iron
ore at Darkhan in Selenge Aimag. The plant would utilize the Energiron brand of technologies in
place of the aging equipment already in place that would separate the iron by changing it to a
liquid form through the use of coking coal and iron gas.
The companies have planned for a plant that would produce 300,000 tons of iron for export abroad.
Source: Unuudur
JUDGES TO RECEIVE PAY RAISES UP TO MNT 6 MILLION
The Council for General Courts ruled in favor of pay raises for judges for standardized salaries of up
MNT 5 million to MNT 6 million a month.
About 50 percent of wages will amount to a floor of MNT 3.7 million, with additional pay granted
for years worked. The pay raises are scheduled to take effect on 2 January 2014.
Source: Udriin Sonin
MONGOLIA TO IMPLEMENT GERMAN TECHNOLOGY IN COAL LIQUEFACTION PLANT
The Mongolian government is making use of its ties with Germany to bring German technology to its
planned coal liquefaction plant.
Mongolia and Germany entered a strategic partnership for minerals in 2010. Now Mongolia hopes to
make use of this arrangement for a plant that would produce liquid fuel from coal.
The government plans to hold onto 51 percent equity with the remaining 49 percent to be sold on
the Mongolian Stock Exchange.
Source: UB Post
NEW PROJECT AIMS TO MAKE UB A ‘SMART CITY’
The Ulaanbaatar Mayor's office has launched a ‗Smart City‘ project aiming to provide citizens with
opportunities to provide feedback for city services.
The project will allow Ulaanbaatar residents to comment on services as well as attain information
from government and will be implemented in three stages over the next seven years. The first stage
would provide tender applications for bidding online and report on the selection processes of
tenders. The project would also provide citizens with a list of public services online, an electronic
registration database for Ulaanbaatar denizens, and an electronic payment service that would allow
residents to pay traffic fines online.
The project also aims to develop a system that would explain the long-term and short-term goals of
the city administration as well monitor citizens‘ thoughts on the performance of public officials.

9. Source: UB Post
FOOT-AND-MOUTH OUTBREAK IN BAYAN-ULGII
Authorities ordered the extermination of 1,100 heads of livestock infected with foot-and-mouth
disease in Bayan-Ulgii Aimag.
Ulgii Soum, the provincial capital, as well as Sagsai, Tsengel and Ulaankhus Soums have been under
quarantine since 6 July. A total of 1,182 livestock have been found to be infected with foot-and-
mouth, of which 412 were cattle while the rest were sheep and goats.
―Currently the spread of the disease has subsided and although there was no infection in other
areas besides the areas of origin, the five counties neighboring Sagsai Soum are still under
quarantine,‖ said T. Nurlaan, a state inspector at the General Agency for Specialized Inspection.
A program to vaccinate cattle, sheep and goats is 70 percent complete, with the province reporting
it has sufficient veterinary clinic workers, medicine, and equipment. Essential goods are being
provided to the quarantined counties. The government is also inspecting and sterilizing meat in the
Ulgii market to maintain stable prices.
Source: Info Mongolia
SNOW LEOPARDS AND WILD YAKS BECOMING ‘FASHION VICTIMS'
Snow leopards, wild yaks and other iconic wildlife on the world's highest mountains and great
steppes are becoming ‗fashion victims‘ of the surging global trade in cashmere, new research has
revealed.
Scientists found wildlife being driven to the margins of survival by the ‗striking but unintended
consequences‘ of huge increases in the numbers of the goats producing the luxurious lightweight
wool. The herds eat up the grass that previously supported antelopes, wild asses and their
predators. Further problems were retaliatory killings of leopards and wolves by herders after
livestock attacks, the killing of wild animals by herders' dogs and the transfer of disease from
livestock to wild animals.
―In the absence of commitment across global and local scales, this iconic wildlife will cease to
persist as they have for millennia,‖ concluded an international team of researchers in the journal
Conservation Biology. ―Rather than serving as symbols of success, these species will become victims
of fashion.‖
The study showed that 95 percent of all the forage across the Tibetan plateau, Mongolia and
northern India was consumed by goats, sheep and other livestock, leaving just 5 percent for wild
animals. Among the wildlife being squeezed out are the Przewalski horse, Bactrian camels, Tibetan
antelopes and siaga.
Charutt Mishra at India's Nature Conservation Foundation said local herders need to be empowered
to counteract the trend. Examples of small projects that have helped so far, he said, are paying
bonuses for cashmere goods produced by communities that do not shoot snow leopards or poach
wild animals, improvements to the corrals in which the goats live to prevent leopards from killing
them, and the vaccination of goats to prevent the spread of disease.
The United Kingdom is among the top four importers of Mongolian cashmere, a trade which has
grown into a multi-billion dollar industry. In Mongolia alone, numbers of domestic goats have grown
from 5 million in 1990 to almost 14 million in 2010. Ninety percent of cashmere comes from China
and Mongolia.
Source: The Guardian
GOLD HITS ONE-MONTH HIGH ON CONTINUATION OF U.S. QE RELIEF
Gold, a major commodity for Mongolia, jumped more than USD 30 a troy ounce to hit a one-month
high as investors in the precious metal continued to take heart from statements by Ben Bernanke,
the U.S. Federal Reserve chairman, that any retreat from monetary stimulus will be gradual.
The precious metal made steady gains all session and hit a high of USD 1,329.60 as the dollar
weakened, making gold more affordable to non-dollar buyers. Treasury yields also inched lower,
reducing the opportunity cost of holding gold. Gold has fallen into a bear market this year as

10. expectations have grown that central banks, and the Federal Reserve in particular, will begin to
withdraw the supportive monetary policies that have made gold attractive as a store of value and
hedge against inflation. In June gold fell below USD 1,200 a troy ounce for the first time since 2010
as Bernanke suggested the Federal Reserve may begin tapering its program of asset purchases if
U.S. economic data continue to improve.
But last week Bernanke said tapering would not begin without firm signals of economic
improvement. He also said any rise in interest rates would be gradual, reducing the prospect of a
sudden jump in rates that would hurt investors in gold, which does not pay any interest. Gold is now
up more than 10 percent from June lows.
But Barclays analysts pointed out that physical demand for gold, in India and China in particular,
remains lackluster. Financial investors also continue to retreat from the metal. Gold exchange
traded products, which give investors exposure to physical bullion, have seen net outflows for six
consecutive weeks, even as the gold price has strengthened over the past four weeks. The bank‘s
analysts suggested the rally in gold may be partly down to the covering of short positions by
investors who had bet of further price falls.
―In the absence of further short-covering activity, upside momentum looks limited across the
investor space, as physical demand has softened again,‖ Suki Cooper wrote in a note to Barclays
clients.
Source: Financial Times
RIVER DIVERSION PROJECT SPELLS DISASTER FOR HERDERS
As idyllic as the Selenge river basin seems, a threat lurks not too far away: the potential destruction
of Mongolia's ancient way of life by the proposed Orkhon River Diversion project, says non-
government organization Rivers without Borders.
The project is to build a dam several kilometers upstream from Tsetsegkhorol and Dashdavaa in
order to pump water through a 900-kilometer-long underground pipeline in the parched southern
Gobi region. The area could deplete its groundwater resources within the next 10 years unless
additional water sources are promptly located.
―Given that the Orkhon, including the Tuul [its tributary] is already the most exploited river basin
in Mongolia, even an additional 5 percent withdrawal may cause serious problems,‖ said Eugene
Simonov of the Rivers without Boundaries Coalition.
The river water will travel south through eight population centers to government-owned Tavan
Tolgoi coal mine and Oyu Tolgoi copper mine. Estimates show mines guzzle some 191,230 cubic
meters of water every day, far surpassing the combined consumption of livestock herds and
residents. Feasibility reports show that the mining industry is expected to swill no less than 50
percent of the water, while 30 percent will go to crop irrigation and only 20 percent to livestock,
household use and environmental purposes.
A price increase that was implemented to prevent industrial overuse of scarce water resources
represents a major setback for the Oyu Tolgoi copper mine, jointly owned by the Mongolian
government and Rio Tinto PLC. According to a water resources advisor for Oyu Tolgoi, Mark Newby,
the price hike has resulted in the company's footing a water bill that is ―40 times higher than
previously agreed.‖ Higher prices have also made alternative sources such as water drawn from
alluvial deposits, cost ineffective. Classified as ―groundwater‖ because it resides under the Orkhon
riverbed, water extracted from alluvium would cost three times as much as surface water.
―Giant infrastructure projects for which international finance institutions are providing soft loans
are the best option for corporations and lazy development organizations that derive a benefit from
them. They [the projects] usually serve the interests of large businesses, not the local population,‖
Simonov said.
Source: International Press Service
SIGNS SUGGEST CHINA WARMING TO IDEA OF STIMULUS
Signs of a further contraction in China's manufacturing sector added to the bad news on the world's
second-largest economy, testing policy makers' determination to ride out a slowdown without

11. stimulus measures. China's manufacturing sector relies on some of the raw materials extracted from
Mongolia.
While Premier Li Keqiang has often played down the room for stimulus since taking office in March,
many analysts are increasingly confident that the disappointing economic data will yield some
modest pro-growth measures. There were signs that support might arrive sooner than later, with a
statement following a meeting of China's State Council for a reduction in taxes on more than six
million small businesses, support to hard-pushed exporters and boosted investment in railway
construction in China's central and western regions. That comes after widely reported, though
unverified, remarks this week, when the premier stressed his commitment to meeting the 7.5
percent gross domestic product (GDP) target for this year.
―The tolerance of slower growth is not unlimited,‖ said J.P. Morgan's China economist, Zhu Haibin
in a research report.
Zhu expects the slowdown to be met with a series of targeted micro-measures to keep growth on
track. That could include railway construction, new IT and telecoms infrastructure, funding for
green technology, and tax breaks for the service sector and small and medium-size enterprises.
Crucially, these measures would be funded from the central government's budget, unlike past
stimulus programs which often amounted to a license to banks to dole out loans to favored
companies—often state-backed—with little attention to their creditworthiness.
The HSBC flash manufacturing Purchasing Managers' Index, a survey of the crucial manufacturing
sector published Wednesday, provides one of the first insights into what happened in the economy
this month. The index fell to 47.7 from a final reading of 48.2 in June, where anything below 50
indicates contraction. The pressure on China's manufacturing sector, once the mainstay of the
economy, has been ratcheting up in recent years as rising wages and a slowly strengthening
currency conspire to erode competitiveness. That has led to speculation of a ―re-shoring‖ process
with industry moving back to the United States.
Source: Wall Street Journal
CHINA COAL-FIRED ECONOMY DYING OF THIRST AS MINES LACK WATER
At first glance, Daliuta in northern China appears to have a river running through it. A closer look
reveals the stretch of water in the center is a pond, dammed at both ends. Beyond the barriers, the
Walamulun‘s bed is dry. Northern China, like Mongolia, must find some way to allow continued
growth of its mining sector without depleting its water resources.
Daliuta in Shaanxi province sits on top of the world‘s biggest underground coal mine, which requires
millions of liters of water a day for extracting, washing and processing the fuel. Meanwhile coal
industries and power stations use as much as 17 percent of China‘s water, and almost all of the
collieries are in the vast energy basin in the north that is also one of the country‘s driest regions.
―After five years there won‘t be enough water in Ordos in Inner Mongolia,‖ said Sun Qingwei,
director of the climate energy campaign at Greenpeace in Beijing. ―The mines are stealing ground
water from agriculture. Local governments want their economies to boom.‖
The water that does exist is mostly polluted. Severe water pollution affects 75 percent of China‘s
rivers and lakes, and 28 percent are unsuitable even for agricultural use, according to the 2012
book ―China‘s Environmental Challenges.‖ A shortage of coal because of the lack of water to mine
and process the fuel may force China to increase imports, pushing up world prices, according to
Debra Tan, director at research firm China Water Risk in Hong Kong, which mines 45 percent of the
world‘s coal, and may adopt an aggressive ―coal-mine grab‖ to secure supplies, said Tan.
China is responding with harsher limits on water usage, a new tariff structure that allows for steep
price gains, and plans to spend CNY 4 trillion (USD 652 billion) by 2020 to boost water infrastructure
and resources. Caps introduced in January limit the annual increase of water used by the four
biggest coal-producing regions to 2.9 percent annually until 2015, while their combined coal output
is set to increase almost 5 percent a year, according to CLSA.
To alleviate the shortage in the north, the central government in 2002 approved the CNY 500 billion
South-to-North water diversion project, the largest irrigation project in the world. The plan is to
carry 44.8 billion cubic meters of water from the Yangtze River along three routes. Even this

12. massive program may not be enough, as the Asian Development Bank said in a report last year that
China‘s demand for water may exceed supply by as much as 200 billion cubic meters by 2030 unless
―major capital investments to strengthen water supplies are made beyond those presently
planned.‖
Source: Bloomberg
U.S. TAXPAYERS TO PAY USD 240,000 TO HELP IMPROVE AIR QUALITY IN MONGOLIA
The Mongolian government—in partnership with the Children's Hospital of Los Angeles—will spend
USD 240,000 of American tax dollars to improve the eastern Asian country's worsening air quality.
The Mongolia/Southern California Environmental Health Research and Training Center (MSCEHRTC)
partnership will focus ―on the consequences of atmospheric pollution and the introduction of
sustainable control technologies on environmental health across the lifespan in Mongolia,‖
according to the grant abstract approved by the National Institute of Health (NIH).
―We are training young American and Mongolian pediatricians and public health students to monitor
personal exposure to air pollutants in children and various occupations such as ambulance drivers
and traffic cops, and compare this to exposure data in LA,‖ said the leader of the project, David
Warburton, professor of Pediatrics, Surgery and Craniofacial Molecular Biology at the hospital.
Asked about using U.S. tax dollars for such a project, Warburton said he believes ―this international
capacity is a great use of U.S. tax dollars‖ and ―will have an important impact on health and air
quality policy worldwide.
Awarded on 14 February, the USD 240,000 NIH grant will also provide research opportunities for
individuals with the Health Sciences University of Mongolia in Ulaanbaatar and the University of
Southern California (USC). When asked whether the Mongolian government would be receiving any
of the research funds, Warburton replied, ―It will not. My contacts with the Minister of the
Environment have been extremely welcoming, professional and helpful. Over the past 15 years, I
have never been approached for anything like that.‖
According to the abstract, ―this program will be sustainable because in response to evidence-based
approaches by us and other collaborators, the Government of Mongolia has recently demonstrated
its practical commitment to the reduction of air pollution.‖ A number of major Mongolian banks and
government agencies will also participate in the research. They include Mongolia's Ministry of Mining
and Natural Resources, Ministry of Energy, National Agency for Meteorology and Environmental
Monitoring (NAMEM), and National Office of Air Quality, which is directly responsible for monitoring
Mongolia's air quality.
Source: CNS News
EXTRACTING INVESTOR INTEREST IN MONGOLIA
After months of anticipation, Rio Tinto PLC was given the green light last week to begin exporting
its first copper shipments from the giant Oyu Tolgoi mine. This colossal project is predicted to boost
Mongolia's gross domestic production (GDP) by a third in the coming years, giving it one of the
highest per capita GDPs in the world. Mongolia's mining sector presents a tantalizing set of
opportunities, yet one that leaves a complex web of issues in its wake.
The challenge for re-elected President Tsakhia Elbegdorj is to build on the cautiously positive
milestone presented by Rio Tinto and apprehend the steady decline in investor confidence. A series
of regulatory changes have sent a chill through the investment community, coupled with a dip in
coal and other commodity prices and higher operating costs. As a result, foreign direct investment
into Mongolia dropped 17 percent to USD 3.9 billion in 2012, according to the Bank of Mongolia.
The president early this year presented mining legislation that proposed to change Mongolian law to
expand local participation in mining projects and enhance the government's rights to take equity in
certain deposits classified as strategically important. While the strategic deposit concept is already
entrenched in Mongolian law, it is the uncertainty and ambiguity around the process of declaring
certain deposits strategic that can leave investors concerned. For example, a draft regulation
proposing to add new coal, gold and rare element deposits to the list refers to the Khushuut coal
mine, which has already received substantial foreign investment. If Parliament decided to adopt

13. the proposal, consequences could include divesting a larger stake in the project to the government.
While there have been some promising signals, such as the recent enactment of a new securities
law, many investors have been left considering their exit strategies. We have seen valuable mineral
exports starting to flow from Mongolia, with a strong promise of things to come. The question is
whether the government can provide investors with the certainty needed to ease the path of
resources into the open arms of eager buyers.
Author Marius Toime is a partner at Berwin Leighton Paisner.
Source: Financial Times
POLITICS
EU, MONGOLIA TO PARTNER IN AGRICULTURE
A European delegation led by Europe's minister for agriculture and rural development arrived in
Mongolia.
European Minister Dachian Cholosh met with Khaltmaa Battulga to discuss partnership opportunities
in agriculture. Mongolia agreed to attend the 2015 Milan International Expo to pursue an agreement
for Mongolia to participate in a European Union for a preferred trade partner scheme. Mongolia also
pledged to work toward improving its standards to levels set by the European Union for products
such as meats and sea buckthorn.
Mongolia and the European Union first entered into talks during a visit by a European delegation for
the Community of Democracies seventh ministerial meeting held in Ulaanbaatar last April.
Source: Zuunii Medee
MONGOLIAN, U.S. ENGINEERS TEAM UP TO RENOVATE SCHOOL
Despite the generally arid climate in Mongolia's steppe, rain poses a significant threat to a high
school there. A multinational team of engineers and construction specialists are working to solve
that problem during exercise Khaan Quest 2013.
U.S. Marines have teamed up with the Mongolian Armed Force to renovate Erdmiin Oyun High
School, kicking off the project on 20 July. Cracks in the roof and walls have caused leaks into the
school's classrooms and gymnasium and are starting to comprise the structural integrity of the
building.
―The water is filling the cracks,‖ said Army Master Sergeant Andrew Haas, site foreman. ―In winter
this water freezes and expands, which is causing the wall to break away.‖ He added, ―The roof is
getting fixed, the application of the emulsion to the walls will keep rain from getting into the side
of the building, and the new windows will help keep water from getting inside. All three together
will slow down the decay of the wall and prolong the life of the building.
The team is also building a wheelchair-accessible ramp at the front entrance of the school.
Source: DVIDS
MONGOLIA AWARDS COLORADO PROFESSOR ‘CHAMPION OF NATURE’ HONOR
Mongolia awarded Colorado State University (CSU) Professor Dennis Ojima the ―Champion of Nature
and the Environment‖ medal, one of the highest honors provided by the Ministry of Environment
and Green Development.
Ojima studies effects of global climate change on ecosystems, carbon accounting methods for forest
sequestration and adaptation and migration strategies for climate change collaborations. For the
past two decades, he has led and supported social-ecological research in Mongolia, focusing on
protecting fragile and endangered ecosystems and pastoral ways of life. His collaborative work has
helped Mongolian scientists increase their skills in natural resource research methodology and
management, and he has supported Mongolian scientific contributions to research efforts on a
global scale.
―This award is a fantastic recognition of Dennis‘ outstanding work and contributions that are having
a worldwide impact on the advancement of natural resource science, education and outreach,‖ said

14. Joyce Berry, Dean of the Warner College of Natural Resources at CSU.
Ojima over the past 20 years taught courses on ecosystem modeling, remote sensing, geographic
information system,, and social-ecological approaches to assist the Mongolian Agency of Hydro
Meteorology and Environmental Monitoring in natural resource management. He is leading a project
which seeks to better understand the vulnerability of pastoral communities to climate change and
how sustainable development strategies can be used to meet these challenges. He works closely
with his Mongolian counterpart Professor Chuluun Togokh, science advisor to the Environment
Ministry.
Source: MENAFN
MONGOLIA IS STRESSED OUT
Bloomberg ranked Mongolia as the fourth most stressed country in the world in a measure of the
country's living environment.
Nigeria topped the list while Norway placed 74th, making it the least stressful with a score of 5.4.
Comparatively, Mongolia scored 55.4, just 0.3 points above fifth place Guatemala. The measure
factors in homicide rate, gross domestic product (GDP) per capita, income disparity, corruption
perception, unemployment, urban pollution and life expectancy.
Source: News.mn, Bloomberg
MONGOLIA HOLDS MIDDLE GROUND IN 2013 FAILED STATE INDEX
Mongolia ranked 129th out of 178 in the Failed State Index, receiving a score indicating its greatest
stability since it was first ranked in 2006.
On the Fund for Peace Index, Mongolia received a score of 57.8, where a low score indicates
stability, compared with a high of 61.9 in 2009 and an average score of 59.09 over seven years.
Mongolia's neighbors Russia and China received scores of 80.9 and 77.1.
The index is based on 12 indicators and ranks countries based on stability. For each indicator, the
ratings are placed on a scale of zero to 10, with zero being the most stable and 10 being the least.
The indicators used to measure the vulnerability of the state are divided between social, economic,
and political categories.
The social indicators are ―Mounting Demographic Pressures,‖ ―Movement of Refugees and Internally
Displaced Persons,‖ ―Group Grievance,‖ ―Chronic and Sustained Human Flight;‖ the economic
indicators are ―Uneven Economic Development along Group Lines‖ and ―Share and/or Sever
Economic Decline‖; and the political indicators are ―Legitimacy of the State,‖ ―Public Services,‖
―Human Rights Abuse,‖ ―Security Apparatus,‖ ―Factionalized Elites,‖ and ―External Intervention.‖
Mongolia scored poorly in the economic indicators in addition to scores showing room for
improvement in Demographic Pressures and Public Services.
Source: News.mn, Fund for Peace
ERDENET DIRECTOR'S ARREST RELATED TO SPC INVESTIGATION
The arrest of former Erdenet Mining Corp. Director Ch. Ganzorig is connected with an investigation
into the State Property Committee (SPC), said an official at the Independent Agency Against
Corruption (IAAC).
According to an unnamed IAAC official, several people from the SPC will be charged with crimes in
an investigation launched by the IAAC shortly after Naadam. Authorities are investigating the
finances of the Erdenet Mining plant as well as Ganzorig, who had worked at Erdenet from 2008 to
January this year.
Source: Udriin Sonin
TWO N. KOREANS CAUGHT SMUGGLING MEDICAL GOODS
Two North Koreans carrying diplomatic passports were caught by Mongolia's customs office trying to
smuggle large quantities of medical goods.
The two individuals were caught during an inspection on the international train route connecting
Ulaanbaatar and Beijing. Some 1,000 boxes of injection drugs, along with brown powdered

15. medicine, bear spleen products, and alcoholic beverages used for medical purposes were found in
their luggage.
Whether they were actual North Korean diplomats is not yet known, but a criminal investigation has
been launched by Mongolian authorities.
Source: Arirang
TURKMENISTAN, TOO, PLANS NEW LAW ON FOREIGN INVESTMENT
Central Asian nation Turkmenistan is to revise its law on foreign investment, in a bid to encourage
investment and move the country to a market economy. Mongolia, too, is in the process of revising
its foreign investment laws after foreign investment took a dramatic fall after the passage of the
Strategic Entities Foreign Investment Law (SEFIL) in May 2012.
President Gurbanguly Berdymukhamedov has instructed the parliament to revise the law on foreign
investment, in addition to laws on property and the budget system, telling the parliament that the
existing laws are ―out of date.‖ Turkmenistan needs to revise the laws to accelerate its transition
to a fully fledged market economy, Berdymukhamedov said.
Long isolated from the international economy, Turkmenistan has been making a gradual transition
toward a market economy since Berdymukhamedov came to power in 2007. The government also
hopes to develop sectors such as textiles and construction, to diversify the economy away from oil
and gas. Measures taken include unification of exchange rates, modifications of the tax regime and
a partial privatization of the housing sector.
Source: BNE
GOBI ALTAI GIVES HONORS TO GOBI BEAR
Gobi Altai Aimag has declared the Gobi bear as the ―Aimag Animal of Glory.‖ The title was selected
by the province's Citizens Council at a meeting earlier this month in an effort to raise awareness of
the importance of protecting the animal.
In addition to the bear, the province is home to such endangered species as the Snow leopard, Ibex,
Argali (wild) sheep, Saiga antelope, and wild Bactrian camel. Mongolia's Red Book lists Mazaalai, as
the bear is known in Mongolia, as an endangered species. One survey found that the population may
be as low as 22. That includes just eight females that can reproduce. Mazaalai typically lives in
groups of three or four across the 2.1 million hectares Great Gobi Protected Area.
Source: News.mn
NEW MONGOLIAN LAWS
The following law, amendments and annulment of laws and ratification were published in the latest
weekly Government bulletin. Unless otherwise decided by Parliament, they will take effect ten (10)
days after publication.
Date Law
17.07.2013 Amendments to Law on Statistics
Ratification of General Loan Negotiation
24.07.2013 Amendments to Law on Lawyer's Legal Status
Amendments to Law on Partnership
Amendments to Law on Certified Tax Consultancy Service
Amendments to Law on Regulation to Comply Law on Certified Tax Consultancy Service
Amendments to Law on Forest
Annulment of Law on Amendments to Law on National Holiday
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

16. are welcome to email the BCM office: info@bcmongolia.org.
ANNOUNCEMENTS
DISCOVER MONGOLIA, 5-7 SEPTEMBER
The 11th annual Discover Mongolia international investors' forum will be held from 5 to 7 September
in Ulaanbaatar Mongolia.
The forum is Mongolia's main venue for the widest international exchange on Mongolia's minerals
developments. Throughout its 10 years of history, the forum has become one of the hallmark events
in Mongolia's minerals exploration and development sector. The primary mission of the forum is to
support the development of the Mongolian mining sector by connecting people, providing
information, building networks, and realizes the importance of mining exploration sector and its
legal environment. It also acts as a bridge between the Mongolian government and private sector
investors through its "Government Hour" sessions.
For more information, log on discovermongoliaforum.com
___________________________________________
MINING MONGOLIA AND POWER AND RENEWABLE ENERGY MONGOLIA, 19-21 SEPTEMBER
Mining Mongolia and Power and Renewable Energy Mongolia will be held from 19 to 21 September at
the Buyant-Ukhaa Sports Complex in Ulaanbaatar.
120 companies from 18 countries including pavilions from Australia, Canada, Korea and Germany
will display a wide range of technology, supplies and services for the mining and electric power
generation and transmission sector; on a scale never before seen in Mongolia. Inside and outside
displays, providing a first opportunity for buyers to see technology and learn about new mining and
electric engineering service from industry experts.
BCM is a supporting organization. Register at miningandconstructionmongolia.com or for priority
booking email mongolia@chinaallworld.com.
___________________________________________
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.
___________________________________________
BCM LINKS UP WITH RAFFLES HOSPITAL SINGAPORE
Raffles Hospital is a tertiary care hospital and the flagship facility of Raffles Medical Group, a
leading private integrated healthcare provider in Singapore and South East Asia since 1976. Backed
with 30 years of delivering quality medical care, the Raffles brand name is synonymous with quality
and trust and offers a patient centric approach in delivering healthcare services.
The hospital gives a special condition for BCM members to enjoy discounts for treatment at Raffles
Hospital, Singapore:
• 10% discounts on Raffles Enhanced 2013 packages (medical checkup)
• 10% discounts on consultation fee (Raffles Specialist Centre)

17. • 10% discounts on ward room rates (Raffles Hospital Inpatient)
• 10% discounts on regular-priced Raffles Health Supplements and Raffles Kids Supplements
For further enquiries or to make appointment, please email
enquiries_mongolia@raffleshospital.com and for more information about Raffles Hospital, visit our
website at www.raffleshospital.com.
___________________________________________
BCM’S MINING SUPPLY CHAIN DATABASE
BCM‘s Mining Supply Chain Database is in use. Following the initiative of Oyu Tolgoi LLC, the BCM
has maintained the Mining Supply Chain Database since March 2009. The new version of the
database has been totally upgraded as to its content and use of information technology
opportunities.
As of December 31, 2012 suppliers registered on the database totaled 1,405. During 2012, 251 new
supplier entities joined the Database and 236 prior supplier registrants updated their company
profiles. In addition, 22 buyers were also registered and 82 tender announcements were posted.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration—FREE!
If you have any questions regarding the database, please contact 317027.
BCM WEBSITES
MONGOLIAN WEBSITE ‘PRESENTATIONS’ AND ‘NEWS’ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013
The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks
and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the
Business Council of Mongolia (BCM) and UB Risk Management Consulting:
• Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн
засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,
ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын
19
• Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,
Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ
ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага
хурал, 2013 оны 4 дүгээр сарын 19
• Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,
Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын
албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,
СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4
дүгээр сарын 19
___________________________________________

18. ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', ‘MONGOLIAN BUSINESS NEWS’,
‘PHOTO GALLERY’
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available:
• 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.

19. 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 2013discussed 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.
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
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Keep up to date on the latest business deals in Mongolia and how the climate for investment is
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Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
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http://twitter.com/#!/bcMongolia.
We have now 1,264 fans on our Facebook fans page, 1,314 connections on LinkedIn network, and
722 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.

20. ECONOMIC INDICATORS

21. INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
June 30, 2013 *8.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 7.6% y-o-y, Ulaanbaatar city, June 30, 2013
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50%[source: Mongol Bank]
CURRENCY RATES – JULY 25, 2013
Currency Name Currency Rate
US dollar USD 1,501.78
Euro EUR 1,985.95
Japanese yen JPY 14.97
British pound GBP 2,308.39
Hong Kong dollar HKD 192.81
Chinese Yuan CNY 244.76
Russian Ruble RUB 46.12
South Korean won KRW 1.34
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.