1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 245 – October 26, 2012
NEWS HIGHLIGHTS:
Business
OT investors refuse renegotiation plea;
Former MRA head arrested for alleged license transfer to SouthGobi;
Moody's downgrades outlook for MMC;
Media visits Salkhit wind farm;
Softbank plans Gobi wind farm with Newcom;
Mobicom reaches further in developing Gobi region;
EBRD hosts SME round table;
Mitsubishi grants scholarships to 15 MUST students;
Newcom supports Tree Planting Day with 1,100 trees planted;
Peabody profit estimates beaten by cost cuts, China coal demand;
Caterpillar’s reduced 2012 forecast signals dim outlook for mining firms.
Economy
Improved regulations push Mongolia up on “Doing Business” index;
Government to launch tender for new rail line;
Mongol Bank auctions dollars and renminbi;
Unraveling the 2013 budget;
Investor sentiment falls with move to alter OT agreement;
MSE sees biggest loss in 44 weeks;
Power Plant No. 4 to receive upgrade;
ADB to finance health sector;
Coal prices fall at Sehee port;
The face of Mongolia reverts back to copper;
Copper falls on Chinese stimulus uncertainty;
A call to defend UB's Children's Park;
Debate over future of nomadic lifestyle;
Ex-sumo wrestler returns to Mongolia;
China flash PMI shows signs of recovery.
Politics
SouthGobi lawyer detained in Mongolia;
Mysterious line item in Premier's budget raises questions;
Elbegdorj to submit Parliamentary regulations bill;
Investigation finds 120 illegally issued exploration licenses;
Immigration Office deports 60 Chinese workers;
Ulaanbaatar Times' ex-editor sentenced to 25 months;
MPP protests delay Parliament activities;
Immigration establishes phone and fax service for foreign residents;
Conservative Party enters political arena;
Mongolian delegation follows U.S. presidential campaigns;
Hong Kong, Mongolian agencies to cooperate in customs enforcement;
Foreign Minister meets with Austrian officials;
2. Mongolian, Russian officials discuss inter-Parliamentary relations;
Fossil dealer released from house arrest;
Mongolia fossil case reveals larger black market;
Mongolia names falcon as national bird;
Xiao namesake in China determined as Chinggis’ descendants.
ECONOMIC INDICATORS
MSE Top 20 Index by market Capitalization;
Foreign-listed Companies with Mongolian Assets;
Monthly Macroeconomic Overview – September 2012
Inflation;
Central bank policy rate;
Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Breakthrough PR Oxford Business Group
BUSINESS
OT INVESTORS REFUSE RENEGOTIATION PLEA
Turquoise Hill Resources Ltd., Rio Tinto PLC and Oyu Tolgoi LLC jointly rejected a request from
Mongolia's Ministry of Mining that the parties renegotiate the 2009 investment agreement.
Little more than a year ago, Ivanhoe Mines Ltd. (now known as Turquoise Hill) and Rio Tinto
formally told the Mongolian government that they were unwilling to renegotiate their Oyu Tolgoi
investment agreement. The government responded by reaffirming the original investment
agreement. There is a clause in the Oyu Tolgoi agreement that would allow Mongolia to raise its
stake from 34 percent to 50 percent ownership after 30 years, but only after unanimous agreement
among the project's owners. Currently Turquoise Hill Resources, formerly Ivanhoe Mines Ltd., whose
majority owner is Rio Tinto, holds a 66 percent share of Oyu Tolgoi. Mongolia's new government is in
the process of approving a 2013 budget which calls for increasing taxes and royalties on the mine by
3. USD 300 million. However, the 2009 agreement froze tax rates over the life of the mine.
Last week the Democratic Party caucus passed a budget proposal that called for a sliding royalty on
Oyu Tolgoi that could increase to a maximum of 20 percent although the investment agreement set
a maximum 5 percent rate on royalties. The government wants to earn USD 160 million from the
royalty and USD 163 million from corporate income tax for Oyu Tolgoi. Commercial production from
the mine is anticipated to be achieved during the first half of 2013.
In a news release Monday, Kay Priestly, chief executive officer of Turquoise Hill, said, ―We have
invested nearly USD 6 billion, created thousands of jobs for Mongolians and are on the verge of
production based on the investment agreement, which provides a stable legal framework and is a
legally binding document. The investment agreement has been fundamental in building Mongolia's
reputation as an increasingly reliable and secure destination for foreign investment,‖ Priestly
observed.
Mongolia faces a fiscal deficit this year as coal revenues plunged over the summer as China's slowing
economy hurt demand for the country's commodities.
Source: Mine Web
FORMER MRA HEAD ARRESTED FOR ALLEGED LICENSE TRANSFER TO SOUTHGOBI
The Anti Corruption Authority (ACA) has finished its investigation of former head of the Mineral
Resources Authority (MRA), D. Bathuyag, and has filed a case against the former official.
During the investigation, the ACA revealed that Bathuyag had abused his powers and reissued five
suspended mining licenses. The ACA has now transferred the case to the City of Ulaanbaatar
Prosecutor's Office to have him charged for abuse of power and illegal actions.
Bathuyag is accused of illegally reissuing four suspended licenses for SouthGobi Sands LLC and
transferring one license to the director of Zelem, N. Jargalsaikhan, and a former official at the
Mineral Resources Authority N. Davaatsogt. The state registered number for that mining license is
5.261 and the license covers a 72,000 hectar area valued at USD 2 billion in 2010 with 42 million
tons of coal.
The ACA also revealed that SouthGobi Sands was guilty of MNT 150 billion worth of tax fraud.
Source: News.mn
MOODY'S DOWNGRADES OUTLOOK FOR MMC
Moody's Investors Services changed its outlook for the B1 corporate family and senior unsecured
ratings of Mongolian Mining Corp. (MMC) to negative from stable on 17 October.
―The negative outlook reflects the breach of financial covenants by MMC on its bank loans, as well
as its weakened profitability and rising leverage,‖ said Simon Wong, vice president and senior
analyst at Moody's.
Although the company has received waivers from its lenders, Moody's expects it will need to seek
further waivers for its financial year-end results. MMC's operating results for the first half of 2012
were weaker than expected because of poor sales volume and operating margins. In addition,
coking coal prices, which have declined over 20 percent since the end of July, are likely to remain
soft in the near term. The rising proportion of middling output will also add pressure on MMC's
average selling prices and margins.
―However, MMC's ratings continue to be supported by its lower-than-average cost base for
production. Moody's also expects the company to remain flexible on the timing of the construction
of its railroad, should coking coal prices remain weak,‖ said Wong, also Moody's lead analyst for
MMC.
Downward rating pressure could come from the deterioration of industry fundamentals, delays or
the inability to secure covenant-breach waivers, or the beginning of railroad construction when
coking coal prices are soft, or any changes to laws or regulations that adversely affect MMC's
business.
Source: Eurasia Capital
4. MEDIA VISITS SALKHIT WIND FARM
Newcom LLC gave media a look at the construction site for the Salkhit wind farm.
The tour was organized by Millennium Challenge Account-Mongolia (MCA) to introduce the project
and programs MCA has implemented. MCA-Mongolia has been a key partner for the project. Through
its energy and environment project, the organization has funded the upgrade of the Nalaikh
substation and the installation of 28 kilometers of fiber optic cable from substations in Ulaanbaatar
to Nalaikh. A training simulator will be installed at the National Dispatching Center, also as part of
the project.
The wind farm is projected to deliver the energy needs of 100,000 households while saving 190,000
tons of coal and 1.6 million tons of water. It will also cut carbon emissions by 200,000 tons.
Source: Newcom LLC
SOFTBANK PLANS GOBI WIND FARM VENTURE WITH NEWCOM
Japanese telecommunications firm Softbank Corp. announced plans to invest in a U.S.
telecommunications firm, in part to develop wind-power projects in Mongolia.
SB Energy Corp., Softbank's clean energy unit, will set up a venture with Mongolia's Newcom LLC as
early as this month to conduct feasibility studies on wind power generation in the Gobi Desert.
―This venture is the first step for the Asia Super Grid plan as Mongolia has the potential to become
an energy supply station,‖ said Softbank spokesperson Naoki Nakayama.
Nakayama said the venture will examine a site in the Gobi desert for a 300-megawatt wind farm,
with plans to begin operations in 2014.
Source: Business Mongolia
MOBICOM REACHES FURTHER IN DEVELOPING GOBI REGION
Mobile phone service provider Mobicom Corp. has expanded its reach in Umnugobi Aimag.
The mobile phone carrier will now reach Noyon and Bayandalai Soums in Umnugobi Aimag beginning
from September. Additionally, phone service has also come to Tunkhel Soum in Selenge Aimag.
Source: Newcom LLC
EBRD HOSTS SME ROUND TABLE
A half-day round table was held to discuss reforms needed in Mongolia to provide small- and
medium-sized enterprises (SMEs) and other borrowers with wider access to finance.
Secured transactions reform is an initiative to create a legal framework that will enable Mongolian
lenders to secure loans with ―movable collateral.‖ As the European Bank of Reconstruction and
Development (EBRD) reported, this will involve the creation of a nationwide registry for equipment,
accounts receivable, inventory, and other types of movable collateral. The registry will provide real
time information on prior interests against competing claims on the same collateral. As SMEs will be
able to use more of their assets as collateral, the reform can contribute to increased access to
finance.
―Banks are eager to enhance access to finance through this proven approach of systematically
registering movable collateral. This will benefit both lenders and borrowers,‖ explained Bold
Magvan, president of the MBA.
The EBRD's legal transition team contributed to the reform through a technical assistance program
by advising the Ministry of Justice on the draft secured transaction laws and other imported legal
changes required.
―The secured transaction reform aims to improve SME access to finance and thus could be a
contributing factor to Mongolia's economic diversification,‖ explained Philip ter Woort, head of the
EBRD's resident office in Mongolia.
With respect to implementation the International Finance Corp., an arm of the World Bank Group
focused on private sector development, is contributing to the initiative through technical assistance
regarding setting up the registry and training lenders on the best practices for movable collateral
lending.
Source: Fin Channel
5. MITSUBISHI GRANTS SCHOLARSHIPS TO 15 MUST STUDENTS
Mitsubishi Corp. has granted 15 scholarships to students from the Mongolian University of Science
and Technology (MUST) to attend foreign universities.
The company has allotted MNT 7.8 billion for 15 students to receive degrees abroad. Of those
selected for the scholarships, 10 are in pursuit of a Bachelors Degree, three for their Masters, and
two for their Doctorates. Mitsubishi has provided scholarships to students in developing countries
since 2000. Mitsubishi provided 516 scholarships to students of 48 universities and 37 countries for
the 2011-2012 academic year.
Source: Unuudur
NEWCOM SUPPORT TREE PLANTING DAY WITH 1,100 TREES PLANTED
Newcom Group has shown its support of an initiative to repair damage done to the Tuul River by
planting 1,100 trees.
The Tuul River Valley has suffered from heavy deforestation, and restoration of the forest will
require several years of sustained effort.
A presidential decree from 14 April 2010 declares National Tree Planting to take place on the
second Saturday of May and October each year.
Source: Newcom LLC
PEABODY PROFIT ESTIMATES BEATEN BY COST CUTS, CHINA COAL DEMAND
Coal miner Peabody Energy Corp., who was offered a contract to develop Tavan Tolgoi's West
Tsankhi, raced past analysts' estimates as cost cuts started to pay off and sales volumes in Australia
climbed on a pick-up in demand from China, sending its shares up as much as 14 percent.
Record shipments in Australia offset rising production costs during the third quarter, Peabody
Energy said. The company is looking to fund projects that are nearing completion rather than
investing in new ones, aiming at increasing volumes even as prices fall.
―While the global coal environment remains challenged, there are indications that markets are
stabilizing through U.S. gas-to-coal switching, higher European coal-fueled generation and increased
China infrastructure spending,‖ chief executive Gregory Boyce said.
Lower prices, weak demand and high-cost Australian operations have forced coal producers to cut
costs this year. Prices have fallen about 20 percent in the first half of this year.
Peabody Energy said on Monday it would save about USD 100 million primarily through workforce
reductions. The company raised the lower-end of its full-year sales forecast by 10 million tons.
Total sales for 2012 are expected to be between 240 million and 250 million tons.
Source: Reuters
CATERPILLAR‟S REDUCED 2012 FORECAST SIGNALS DIM OUTLOOK FOR MINING FIRMS
Caterpillar Inc., the heavy machinery brand distributed by Wagner Asia Equipment LLC in Mongolia,
slashed its 2012 forecast for the second time this year and warned the global economy was slowing
faster than it had expected.
The caution sign was the latest in a string of comments from multinational manufacturers, including
General Electric Co. and Honeywell International, that the economic recovery remains tenuous and
tepid at best. Caterpillar's retail dealers are selling off inventories, rather than buying new
machines, forcing the company to idle some production at plants earlier this year with additional
shutdowns coming, executives said on Monday.
―As we're moved through the year, we've seen continued economic weakening and uncertainty,‖
Chief Executive Doug Oberhelman said in a statement.
Caterpillar does not expect the global economy to begin to improve until the second half of 2013,
he added. Caterpillar posted better-than-expected third-quarter profit on a rebound in U.S. sales of
heavy equipment from a 30-year low. Europe and parts of Latin America remain tough regions for
Caterpillar. The weakening euro zone is the ―most significant‖ risk to the company's 2013 outlook,
executives said.
Caterpillar's growth is closely linked to global macroeconomic trends, which are now trending ―flat-
6. to-down,‖ said Longbow Research analyst Eli Lustgarten. The company expects sales of mining
equipment to slip in 2013 as falling metal and coal prices force companies to pull back on
production. Sales of construction equipment should improve next year, especially in emerging
markets. And sales of power generators should be flat next year, Caterpillar executives said. The
three areas each comprise roughly one-third of the company's sales.
This was the second time this year that Caterpillar has cut its 2012 forecast. Caterpillar spooked
markets at a major industry conference last month, when it looked three years into the future and
slashed its earnings forecast for 2015. Oberhelman blamed an ―anemic‖ economic outlook, especial
in the mining sector.
Source: Reuters
ECONOMY
IMPROVED REGULATIONS PUSH MONGOLIA UP ON “DOING BUSINESS” INDEX
Mongolia made a dramatic improvement on an important index ranking the ease of doing business in
countries, moving up 10 spots from last year's position.
Mongolia ranks 76 this year compared with 86 last year in the ―Doing Business‖ report by the
International Finance Corp. (IFC), the financial arm of the World Bank. This year's report points to
important trends in regulatory reform and identifies the regions and economies making the biggest
improvements for local entrepreneurs. It also highlights both the areas of business regulation that
have received the most attention and those where more progress remains to be made. Another aim
of the report is to review which regulatory reforms have worked and how.
This year's report highlighted that Mongolia has made starting a business easier by eliminating the
minimum capital requirement for limited liability companies. The report also notes greater access
to credit information by guaranteeing borrowers' right to inspect their personal data and the
expanded protection of investors by increasing disclosure rights.
Overall, the report found Eastern Europe and Central Asia improved the most, overtaking East Asia
and the Pacific as the world's second most business-friendly region. Member nations of the
Organization for Economic Co-operation and Development (OECD) continue to rank first in this area.
Two-thirds of the nearly 2,000 reforms recorded by the report were focused on reducing complexity
and cost of regulatory processes, and research has found simpler business regulations can effect
much faster job growth and business creation.
Source: International Finance Corp.
GOVERNMENT TO LAUNCH TENDER FOR NEW RAIL LINE
The Mongolian government plans to invite bids by the end of the year for the first phase of a USD 7
billion project to build around 6,000 kilometers of new lines, comprising an east-west corridor and
two north-south lines.
The lines will increase the number of connections to neighboring railways and facilitate the
exploitation of minerals. The first phase, costing around USD 2 billion, will be about 1,400
kilometers long and will connect the south Gobi region with Mongolia's eastern border. The second
phase will add another 2,300 kilometers to the network. Two weeks ago the government approved a
third phase totaling 1,700 kilometers. This will consist of a north-south corridor serving the western
side of the country and creating a second link across Mongolia between China and Russia.
The government plans to implement the project past BOT schemes, but intends to retain a
controlling 51 percent stake.
Source: Rail Journal
MONGOL BANK AUCTIONS DOLLARS AND RENMINBI
The Bank of Mongolia sold CNY 152 million at an exchange rate of MNT 221.5 per Chinese yuan and
USD 72 million at MNT 1,389.05 per U.S. dollar.
The auction came at the request of commercial banks to buy the U.S. and Chinese currencies. It is
7. also an exercise in greater transparency in the foreign exchange market and stabilizing the tugrug.
Source: Zuunii Medee
UNRAVELING THE 2013 BUDGET
When it comes to spending, the new government does not look so different from the last. The 2013
budget seems to indicate that the new government will continue the old practices of excessive,
short-sighted spending from the last government.
Parliament is currently reviewing a MNT 7.4 trillion budget for 2013, which, if passed, would be the
largest ever in Mongolian history. The budget is projected to amount to 42 percent of gross
domestic product, down from 45 percent in 2011. Moreover, the budget deficit is projected to be
some MNT 351 billion in 2013.
A third of the budget is investment, another third is government consumption, and the last is
transfer payments. The main criticism for the budget is unwise spending while the economy is
overheating. The Bank of Mongolia has thus far failed in its mission to bring inflation to the single
digits and the government continues to ignore the advice of the World Bank against ―pro-cyclical‖
fiscal policies.
Source: Mongolian International Capital Corp.
INVESTOR SENTIMENT FALLS WITH MOVE TO ALTER OT AGREEMENT
Parliament's move to draw greater royalties and tax from the Oyu Tolgoi copper and gold project
through revision of the investment agreement for the tremendous copper mine has some investors
worried about the political stability and its ability to honor agreements.
The proposed 2013 draft budget has been submitted to Parliament for approval and is believed to
be accepted due to support from the caucus of the Democratic Party (DP), which leads the coalition
government in Parliament.
National statistics show revenue from coal, currently the country's biggest current export, has been
significantly reduced over the summer because of a drop in both price and volume. The situation
has not meaningfully improved with foreign investment remaining cold while investors wait for
clarification over the Foreign Investment Law passed last June. That legislation limits investment to
sectors of ―strategic importance‖ above certain thresholds without government approval.
However, the misstep may be an effect of a government that has not yet gotten its bearings or
defined its long-term stance on foreign investment.
―We believe that the latest news relating to the OT IA partly relates to a lack of dominant political
leadership and unity from June's elections, resulting in a fragmented and fractured ruling coalition
of political parties and agendas,‖ said Origo Partners PLC.
Source: Origo Partners PLC
MSE SEES BIGGEST LOSS IN 44 WEEKS
Last week the MSE Top 20 index plunged 4.57 percent, the largest decline since 16 December 2011.
The index, the main benchmark to Mongolian Stock Exchange (MSE), dropped to a new low of
16,550.12, dropping under 17,000, on which the benchmark found support in the previous week.
The daily trading volume, however, improved to MNT 35.7 billion from MNT 19.8 million of the
previous week.
During the week, equities of 36 companies traded. On the international level, most major markets
advanced while MSCI Frontier Markets index was down last week.
―We view that last week's sell off was primarily influenced by September economic data released on
the previous Friday,‖ said securities boutique Eurasia Capital. ―According to the release, the
Mongolian economy grew 10.2 percent year-on-year in the first three quarters, which missed market
expectations.‖
Source: Eurasia Capital
POWER PLANT NO. 4 TO RECEIVE UPGRADE
The government has decided to expand the capacity of Power Plant No. 4 through the installation of
8. a 100 megavolt turbine generator.
The upgrade projected has a completion target of June 2014. The expansion would provide the
necessary power to satisfy the country's energy needs before the introduction of Power Plan No. 5
to the national grid.
Development of the fifth power plant includes a multi-phase introduction period between 2013 and
2016. The location for the new power plant is currently under revision.
Source: Udriin Sonin
ADB TO FINANCE HEALTH SECTOR
The Asian Development Bank (ADB) has agreed to loans to the government to benefit Mongolia's
health sector at an unspecified value.
At least USD 30 million will go toward the ―5th Health Sector Development Program.‖ Other funds
will be used for hospital infrastructure and equipment, including 300 hospital beds and a new wing
for the Songin Khairkhan District Hospital. There are also plans to bring medical waste and recycling
containers.
Source: Udriin Sonin
COAL PRICES FALL AT SEHEE PORT
Coal prices have fallen at the most trafficked port for coal trade between China and Mongolia.
The price of coal fell 16 percent from CNY 600 (USD 96) to CNY 500 (USD 80) in three months.
Mongolian economists said the fall in prices will likely have a deep impact that the Mongolian
economy is not prepared for. The government is prepared to take MNT101 billion from the MNT332
billion in the Stabilization Fund, established by Parliament as a buffer for swings in commodity
price,
According to the National Statistical Office, coal exports have fallen 6.1 percent compared to last
year. Coking coal has reigned as Mongolia's most exported commodity, pushing aside copper
concentrate, since 2010.
Source: Zuunii Medee
THE FACE OF MONGOLIA REVERTS BACK TO COPPER
Last week the European Bank for Reconstruction and Development made its largest commitment yet
in Mongolia raising the bar leading a USD 350 million loan (USD 250 million directly) to the Tsagaan
Suvarga copper project in the Oyu Tolgoi copper belt. As investors in London, New York and Hong
Kong churn this week over short-term political and commodity volatility, smart money is coming to
Mongolia's copper corridor in the south Gobi.
Within a 150 kilometer footprint, the classic shaping cluster of copper porphyry is emerging with
assets of Oyu Tolgoi (USD 15 billion), Tsagaan Suvarga (more than USD 1 billion), Ulaan Khud and
Kincora Copper Ltd.'s Bronze Fox worth taking a much closer look. Alongside some of the largest
global mining companies now all on the ground in Mongolia's copper belt but with an increasing
sense of urgency to tie up to the next discovery before being painted another BHP Billiton circa
2001.
The European Bank for Reconstruction and Development (EBRD) has committed over USD 840 million
to Mongolia since being in country from 2006, with 30 percent of that coming in the recent single
investment on the copper belt. It is the clearest example yet of confidence in the political situation
by an international investor, comfortable in doing business in Mongolia, with an acute appreciation
for Mongolia's world-class copper corridor.
Source: ResCap's Mongol Minute
COPPER FALLS ON CHINESE STIMULUS UNCERTAINTY
Copper hit a one-month low on Monday due to uncertainty over global demand and Beijing's next
policy move. Copper has been the life raft for Mongolia to hang onto while coal prices continue to
sink.
Recent numbers from China have clouded expectations on whether it will take more steps to shore
9. up growth, with an easing of the country's annual consumer price inflation pointing to ample room
for policy easing, but a strong rebound in September exports suggesting policy changes may not be
needed for now. Three-month copper on the London Metal Exchange (LME) had nudged down 0.2
percent to USD 8,113.50 per ton. It earlier dropped to a one-month low of USD 8.040.
―There is an air of uncertainty today...which makes it hard to predict what [the Chinese
government] will do next,‖ said Andy Du, derivatives director at Orient Futures. ―investors are
divided in their opinions on copper's outlook, which will keep London copper see-sawing in small
daily movements between USD 7,800 and USD 8,600. I doubt China GDP figures will offer a big
enough surprise to decisively sway either bulls or bears.‖
Economists indicated China's annual economic growth probably slowed for a seventh straight
quarter in the July-September period to expand 7.4 percent down from 7.6 percent in the second
quarter and the weakest level since the depths of the global financial crisis. While China's
September copper shipments rebounded 11 percent from a month earlier, analysts said this was due
to bookings made late last year and did not reflect a revival in underlying demand. Compared to a
year ago, September imports were also up just 3.8 percent—the slowest in 13 months.
In Chinese physical markets, traders said their spot sales were still hit by weak downstream
demand.
Source: Reuters
A CALL TO DEFEND UB'S CHILDREN'S PARK
With Ulaanbaatar's green space far smaller than during the Soviet era, over the past ten years city
residents have witnessed the lost of countless courtyards, open spaces, parking lots and parks to
soulless construction.
Over the past couple of months (coincidently since the elections), the city has seen a resurgence in
public spaces built upon. Now it is the Children's Park, the last remaining bastion of green space,
that is set to disappear.
Green spaces in a city are more than something pretty to look at. It is also a form of social and
economic development. It is not enough to know that Ulaanbaatar is the world's most polluted city,
developers must also destroy its very few remaining green spaces.
It is unclear how the government sold out the Children's Park. Official papers say the license for 74
percent of the park was initially sold to Itochu Corp. of Japan for just MNT 69 million before it was
passed over to Bodi Group. What is clear is the government is increasingly controlled by corporate
entities, which can be plainly seen by the corporate headquarters surrounding Sukhbaatar Square
and the Government Palace.
Unlike projects such as Oyu Tolgoi, the Children's Park cannot be renegotiated later on. The current
city government is too inexperienced, immature, and prone to short-sighted decisions. The loss of
the Children's Park is a loss that cannot be undone.
Author Ts. Uyanga is a senior partner at M.A.D. Investment Solutions and is today in charge of all
of its operations. Dedicated to the growth of businesses and their environment within Mongolia,
Uyanga is a dedicated public actor who has lobbied for greater transparency and accountability
from both the public and private sectors of Mongolia.
Source: MAD Investment Solutions
DEBATE OVER FUTURE OF NOMADIC LIFESTYLE
Geographers from the University of Leicester are involved in the research on pastoralism,
environment and livelihoods at a critical juncture in decision-making over the future of Mongolia's
rural areas.
The two-year study ―Community, Place and Pastoralism: Nature and Society in Post-Soviet Central
Asia,‖ funded by the Leveler Trust, involved work in both Mongolia and Kazakhstan, and led to a
meeting in Ulaanbaatar in September 2012. At this meeting herders were able to discuss key land
and livelihood issues directly with ministers, donors and government advisors.
―Mongolian herders are facing multiple pressures on their livelihoods, traditionally based on
nomadic pastoralism, from climate change, mining, desertification and new policies on land,‖ said
10. Upton [first name unspecified in source -ed], the principal investigator for the project.
In recent years, Mongolian herders have been encouraged to form herder groups. These groups are
designed to collaborate in pasture management, labor sharing and environmental conservation, as
well as marketing of their livestock products. A long-debated draft pasture land law seeks to
strengthen rights to key seasonal pastures for families and herder groups. Although this law focuses
on possession rather than ownership rights, for some herders it has raised fears over the ultimate
privatization of pasture land and reduction in the ability to move, particularly in times of need.
The Leverhulme team is finalizing detailed reports and articles to share with herders, international
donors, and government policy makers, as part of their contributions to these vital, ongoing
debates.
Read more…
Government policy is also promoting intensification of livestock production. Thus, there are
tensions between mobile and sedentary livestock production in rural areas and questions are raised
over the place of nomadic culture and identity in modern Mongolia.
―This is a critical moment in decision making about the future of Mongolia's rural areas,‖ said
Upton. Enhanced rights of herders' groups to key seasonal pasture has the potential to make
positive continuations to local livelihoods and to conservation. Increases in mining activity also
make the recognition of land rights especially important, so that herders' voices may be heard in
defending and seeking compensation for land loss and displacement.‖
Source: In Loughborough
EX-SUMO WRESTLER RETURNS TO MONGOLIA
Called the Michael Jordan of sumo wrestling, D. Dagvadorj enjoyed the fastest rise of anyone in the
history of the sport—going from professional debut to champion in just 24 tournaments.
Dagvadorj's office in Ulaanbaatar is large but understated. ―DG,‖ as his employees call him,
launched his family's holding company in 2003. Today the assets include 56 percent of the National
Investment Bank of Mongolia, which he started in 2006 after buying the license of an old Russian
bank, and brokerage firm National Securities. The real-estate portfolio boasts land in central
Ulaanbaatar and his Dream Land Resort near where the ancient capital Kharkhorum resided.
Aside from his wrestling savvy, Dagvadorj boasts another advantage, a U.S. investor, James Passin
of the New York-based Firebird Fund. Firebird is the largest foreign owner of shares on the
Mongolian Stock Exchange. The two became fast friends, with Dagvadorj making a surprise trip to
New York to attend Passin's 40th birthday.
Dagvadorj was 11 when communism ended in 1991 and the Soviets exited Mongolia after 67 years.
His parents and three siblings shared a tiny apartment, just 645 square feet, in Ulaanbaatar. During
his teen years he witnessed some of the worst poverty in the country's history. In his teens
Dagvadorj won a scholarship to study in Japan after scouts saw how good he was at Mongolian
wrestling. Dagvadorj began sumo wrestling in 1999, at the age of 18. Eight months later he won his
first tournament and was recruited into the Takasago stable of sumo and named ―Morning Blue
Dragon,‖ or Asashuryu Akinori.
During his career Dagvadorj had a reputation for partying and fighting and those rumors persist even
today, now that he is back in Mongolia. Dagvadorj is also very active in philanthropy. In one project
he's building a hospital on property he owns by the Ulaanbaatar airport to improve the country's
standard of health care. His Asashuryu Foundation has supported the Mongolian Olympic team,
community centers to support making English the country's second language, and granted
scholarships for study in Mongolia and Japan.
Source: Forbes
CHINA FLASH PMI SHOWS SIGNS OF RECOVERY
The Chinese manufacturing sector showed signs of improved health in October, suggesting a gradual
economic recovery is under way, according to a survey released on Wednesday. Manufacturing
growth and development are important to Mongolia as it relies on China to buy up nearly all of its
mineral exports.
11. Various Chinese economic data released over the past two weeks—from exports increasing 10
percent to double digit growth in retail sales in September—all point to stronger economic growth.
China's gross domestic product (GDP) grew 7.4 percent in the third quarter, the government said
earlier this month.
―The better October flash PMI [Purchasing Managers Index] and September data paint a consistent
picture of a likely further pickup in economic activity on the back of more accommodative
monetary conditions, increasing infrastructure investment, recovering property market activity and
improving external demand,‖ wrote Jian Chinag, China economist at Barclays.
Reflecting this new optimism, producers have started passing through price rises. HSBC economists
Sun Junwei and Qu Hongbin pointed to the increase in prices for steel and cement in recent weeks
because of increased construction activity.
―Both PPI and CPI inflation likely bottomed in September and will see a modest rebound in coming
months,‖ said the HSBC analysts.
But they warned that the outlook for Chinese exports ―remains challenging‖ in view of looming
fiscal problems in the United States and the recession in Europe.
Source: Financial Times
POLITICS
SOUTHGOBI LAWYER DETAINED IN MONGOLIA
A 32-year-old Australian lawyer is trapped in Mongolia after being embroiled in serious allegations
of money laundering, high-level corruption and bribery.
The claims involve senior local officials and hundreds of millions of dollars in mining assets.
Mongolia's Anti Corruption Authority (ACA) arrested Ms. Sarah Armstrong, the Chief Legal Counsel
for SouthGobi Resources Ltd. on Friday as she boarded a flight to Hong Kong. She was released
without charge within hours, but barred indefinitely from leaving the country. Company officials say
they have fears for her safety and Australian consular officials are working to get her out.
A source close to the company said allegations that Armstrong had knowledge of bribery and tax
evasion were baseless. He said her arrest was retaliation for separate allegations of corruption and
bribery she made against Mongolian officials months ago.
―Anyone who knows the situation would see that these allegations are trumped up,‖ he said.
Armstrong has lived in Hong Kong since she began working for SouthGobi Resources two and a half
years ago. Her arrest by Mongolia officials came just over three months after she filed a notice for
an affiliate, which triggered international arbitration proceedings against the Mongolian
government under an investment treaty with Singapore. She alleged Mongolia attempted to seize
several hundred million dollars worth of coal from SouthGobi Sands LLC, her company's Mongolian
operating company. She also claimed Mongolian officials asked for bribes.
―She is not in detention and she has not been charged,‖ the spokesman said. ―We understand she
has been asked to assist local authorities with investigations."
But he said SouthGobi Sands was having a ―tax issue‖ and Mongolian law enforcement organizations
were working on the case. It is believed SouthGobi Sands president, Justin Kapla, a U.S. citizen, has
also been banned from leaving the country for the second time in six months. He was previously
detained in Mongolia as a designated witness for an inquiry into corrupt Mongolian officials from
when he was working for an unrelated company in West Africa.
Source: The Australian
MYSTERIOUS LINE ITEM IN PREMIER'S BUDGET RAISES QUESTIONS
There has been some controversy surrounding a line in the 2013 budget for the Prime Minister
regarding a program called the ―New Government Policy Reserve.‖
The office of the Prime Minister will receive nearly double the budget from last year for a lump sum
of MNT 72.9 billion. The budget will be divided between eight different programs, but there is little
description of the aforementioned program. Only a single line is mentioned in the budget proposal
12. that says, ―This program is aimed to execute structural changes and implement government
decisions.‖
The Prime Minister also has control over the MNT 100.3 billion ―Investment Budget.‖ About half of
that budget, too, will be directed toward the policy reserve program.
Source: Zuuni Medee
ELBEGDORJ TO SUBMIT PARLIAMENTARY REGULATIONS BILL
President Ts. Elbegdorj plans to submit a draft law on regulations over the behavior of Parliament.
The decision comes out of recent political uncertainty regarding the 2013 budget and a lack of
cooperation from the Mongolian People's Party, which lost its control over government in the June
election. The idea from the bill came from a meeting between Democratic Party (DP) member
Elbegdorj and MPP party leader O. Enkhtuvshin and MPP General Secretary G. Zandarshatar.
At the same meeting, all parties agreed that the controversy of the Uvurkhangai electoral district
would not be discussed until after a court decision was made. The district recently saw the MPP
members holding those seats replaced by members of the DP after the General Election Committee
(GEC) ruled the election had been fixed.
Source: Zuuni Medee
INVESTIGATION FINDS 120 ILLEGALLY ISSUED EXPLORATION LICENSES
An investigation by the Anti Corruption Authority has found 120 licenses illegally issued by officials
at the mining ministry and Registry Office for Mining and Geology.
The licenses were found to be illegally issued following Parliament's decision to suspend the
issuance of exploration licenses after amending its Minerals Law. Five of the illegal licenses were
allegedly granted to SouthGobi Sands LLC, including a 72,000 hectare plot of land that reportedly
holds USD 42 million tons of coal and is worth USD 2 billion.
Source: Undesnii Shuudan
IMMIGRATION OFFICE DEPORTS 60 CHINESE WORKERS
The Foreign Citizens Registration Office reported the deportation of 60 Chinese workers it said
overstayed their visas. The Chinese workers were reportedly working in building and road
construction.
Source: Undesnii Shuudan
ULAANBAATAR TIMES' EX-EDITOR SENTENCED TO 25 MONTHS
Do. Chuluunbaatar, the former editor-in-chief of the Ulaanbaatar Times, was convicted along with
former President N. Enkhbayar and two other individuals for the illegal privatization of the
newspaper.
The Sukhbaatar District Court indicted Chuluunbaatar for heavy damage to state property and was
sentenced to 25 months in prison. The sentence said that the printing house registered under
Chuluunbaatar and the holding company for media organization registered under Enkhbayar's sister,
Enkhtuya, were transferred to a subsidiary owned by Enkhbayar.
Source: News.mn
MPP PROTESTS DELAY PARLIAMENT ACTIVITIES
The Mongolian People's Party (MPP) has agreed to return to Parliament while vowing to protest the
swearing in of the two Democratic Party (DP) members.
―This country faces many urgent issues related to the budget and monetary concerns which is more
vital than oath-taking,‖ said MPP members O. Enkhtuvshin. ―The MPP is ready to tend to these
issues to solve these issues. However, Parliament preferred an oath-taking ceremony over issues,
postponing the session for two weeks.‖
The protest is a reaction to the DP's decision to replace two members of Parliament from the MPP
representing Uvurkhangai Aimag after the General Election Committee ruled following its
investigation that the election results were fraudulent.
13. President Ts. Elbegdorj weighed in, saying that the duties of Parliament should take importance
over these contentions. He noted the importance of passing the 2013 budget, which is due two
weeks earlier than in past years.
Source: News.mn
IMMIGRATION ESTABLISHES PHONE AND FAX SERVICE FOR FOREIGN RESIDENTS
The Immigration Agency has introduced a new phone line to provide easy access to the agency.
The telephone number (1882) and fax (7013 3457) will provide foreign residents a way to send and
receive documents and additional materials such as duplicate records. It will also allow them to
schedule in-person consultations and correspondence via email.
Source: Zuunii Medee
CONSERVATIVE PARTY ENTERS POLITICAL ARENA
A new party called the Conservative Party received approval from the Supreme Court this month.
The application for the new party was led by N. Dashdavaa.
Source: Unuudur
MONGOLIAN DELEGATION FOLLOWS U.S. PRESIDENTIAL CAMPAIGNS
A Mongolian delegation visited the state of Virginia in the United States to study the presidential
campaign.
President Ts. Elbegdorj sent the delegation of six to Charlottesville this weekend to take a look at
the campaign process. The group plans to use our presidential election as a model for Mongolia's
next election. The delegation is documenting democracy in action around Charlottesville to learn
the ins and outs of the election process and getting a firsthand look at what if takes to run a
campaign.
―The politics is getting a little dirty in my country. So that's why we came here to learn about the
value of democracy improvement,‖ said a delegate.
The delegates visited Republican and Democratic party campaign headquarters and met with the
city's mayor and vice mayor. They said they were surprised at how many people volunteer their
time to take part in the presidential campaigns. In Mongolia, campaigners are paid workers.
The next Mongolian presidential election is in seven months. The delegation's members say they will
work to create a more transparent campaign that engages more social media. They also want to get
younger people more involved in their election and have more voter participation.
Source: NBC 29
HONG KONG, MONGOLIAN AGENCIES TO COOPERATE IN CUSTOMS ENFORCEMENT
Hong Kong and Mongolia's customs agencies have signed a deal to boost cooperation in
enforcement, reported the Hong Kong Information Service Department.
Commissioner of Customs and Excise Clement Cheung and Director General of the Customs General
Administration of Mongolia D. Tseveenjav signed the agreement in Ulaanbaatar. Speaking at the
ceremony, Cheung said the agreement signified the mutual commitment and determination of the
two administrations to enhance cooperation in combating transnational customs crime. Both parties
agreed to cooperate more closely through mutual administration assistance, including in the
exchange of information and enforcement of customs laws.
Hong Kong has so far signed customs agreements with 18 other agencies.
Source: Business Mongolia
FOREIGN MINISTER MEETS WITH AUSTRIAN OFFICIALS
Minister of Foreign Affairs L. Bold met with Austria's vice chancellor and minister of Europe and
international affairs to negotiate bilateral cooperation.
Negotiations included discussions on measures to commemorate the 50th anniversary of Mongolia-
Austria diplomatic relations. Bold told Vice Chancellor Michael Spindelegger about the work
Mongolia is doing in its role as chair of the Community of Democracies, inviting the minster to
14. participate in a ministerial meeting set to be held in Ulaanbaatar next year.
The discussion moved to a EUR 40 million loan issued by Austria to Mongolia and the importance of
strengthening economic relations. They also promised that their countries would work together to
support their interests in the International Anti Corruption Academy (IACA), the Organization for
Security and Co-operation (OSCE), and the United Nations.
Source: Montsame
MONGOLIAN, RUSSIAN OFFICIALS DISCUSS INTER-PARLIAMENTARY RELATIONS
A head of the Russia-Mongolia inter-parliamentary group at Russia's State Duma met with the
Mongolian ambassador to discuss future cooperation.
Duma member Sergei Mironov met with Ambassador D. Idevkhten to discuss efforts for bilateral
cooperation in trade, their respective economies, education, culture and sciences. The Mongolian
ambassador expressed confidence that their parliamentary ties would bear an important role in the
development of each country and that Mongolia's Parliament places great significance in the
relationship.
Source: Montsame
FOSSIL DEALER RELEASED FROM HOUSE ARREST
A judge released the U.S. citizen man charged with smuggling dinosaur Mongolian fossils into the
U.S. from home detention.
After hearing lengthy arguments, U.S. Magistrate Judge Henry Pitman raised Prokopi's bail to USD
250,000 from 100,000, while lifting a Florida judge's requirements that he be confined to his home.
Prokopi, a fossils dealer who has been free on bail since his Wednesday arrest, is the owner of a 70
million-year-old Tyrannosaurus baatar skeleton that was seized by the government in June in a civil
forfeiture action. The government accused Prokopi of smuggling the bones into the country illegally
from Mongolia before assembling them into a skeleton that was sold by Dallas-based auction house
Heritage Auctions for USD 1.05 million.
Prokopi's lawyer, Georges Lederman, told Pitman that publicity about his client's case had ruined
his business. Bell, though, said a 400-pound box of dinosaur bones was delivered to Prokopi's home
even as the government was searching his residence last week. The prosecutor said the government
also believed Prokopi was trying to move a Tyrannosaurus skeleton stolen from Mongolia to Denver
for its eventual auction through a California gallery.
In court papers, the government has accused Prokopi of manipulating U.S. customs forms to
smuggle dinosaur skeletons. It also said he has been photographed by a witness in Mongolia and that
he has made frequent trips there, including this year. Lederman said the dinosaur bones delivered
to Prokopi's home during the government search belonged to another fossil dealer who wanted
Prokopi to restore them. Lederman said outside court it was possible the government brought
criminal charges to try to end Prokopi's challenge to the government's plan to ship the skeleton to
Mongolia.
Source: Washington Post
MONGOLIA FOSSIL CASE REVEALS LARGER BLACK MARKET
For the past six months, the fate of the Tyrannosaur baatar claimed by Mongolia has been in limbo.
At every step, the case has become more complex. What was thought to be a single, mostly
complete dinosaur turned out to be a jumble of many, and the documents used to import the fossil
to the United States hint that these dinosaurs were indeed smuggled out of Mongolia. Last week
federal officials arrested the man who imported and assembled the contentious skeleton.
According to reports by the Guardian and LiveScience, commercial fossil dealer Eric Prokopi was
involved in many shady schemes. In addition to the disputed Tarbosaurus, documents filed by the
U.S. Attorney's Office charge Prokopi with trying to smuggle a specimen of the small, feathery
dinosaur Microraptor out of China, illegally selling an illicit specimen of the hadrosaur Saurolophus
to auction house I.M. Chait and the sale of two other dinosaurs illegally collected from Mongolia.
The charges against Prokopi include conspiracy to smuggled illegal goods, making false statements
15. and interstate sale and receipt of stolen goods.
Experts knew that this dinosaur was only one visible point of a massive black market that continues
to rob nations of their natural history heritage. Indeed, the new charges assert that the Tarbosaurus
was not the first illegal specimen Prokopi tried to sell and the Florida fossil dealer is hardly unique.
This case may help the United States tighten the laws surrounding fossil sales.
Source: Smithsonian Magazine
MONGOLIA NAMES FALCON AS NATIONAL BIRD
The Cabinet of Ministries has named the falcon as Mongolia's national bird.
All citizens and organizations have been urged to treat the bird as a symbol of Mongolia's history,
culture and ideology of protecting nature, and to implement various measures for saving falcons.
Since the era of Chinggis Khaan, Mongolians have cherished falcons and considered it a symbol of
braveness and power.
Source: News.mn
XIAO NAMESAKE IN CHINA DETERMINED AS CHINGGIS‟ DESCENDANTS
Evidence has indicated that people in central China's Henan province with the family name Xiao are
the descendants of Chinggis Khaan, experts said at a seminar.
The 5,000 people named Xiao finally found their ancestry to be of the Mongolian ethnic group
instead of Han, after 20 years of research by five experts on Mongolian culture and history from the
Chinese Academy of Social Sciences, Nankai University and Inner Mongolian University. The people
living in 30-odd villages in Zhongmu country, all of them identified as Han ethnic group on their
household registration books, are found to be descendants of Chinggis Khaan's grandson, who
migrated to central China with his people, said Ren Chongyue, a researcher with the Institute of
History of the Henan Academy of Social Sciences.
Ren said the experts had been looking for the descendants of the famous Mongolian emperor, and
finally found clues in Zhongmu's country annuals. The tomes revealed that the Xiao family came
from the Mongolian plateau and are related to a Mongolian noble.
"We had found a sense of belonging now that we know our ancestor: My clansmen plan to travel to
Mongolia to worship the tomb of Chinggis Khaan, and try to establish a culture gallery to tell our
own history," Xiao said.
Hundreds of thousands of people are offspring of the Mongolians who migrated to central China and
merged with the Han people after centuries, Ren said.
Source: China Daily
ANNOUNCEMENTS
MONGOLIA INVESTMENT SUMMIT 2012, HONG KONG, OCTOBER 30-31
The Mongolia Investment Summit 2012 will be held from 29 to 31 October at the Four Seasons Hotel
in Hong Kong to once again bring the best of Mongolia's investment opportunities to Asia's leading
investment hub.
Now in its third year, the summit has strongly cemented its position as the largest Mongolian
investment event outside of Ulaanbaatar, providing foreign investors with the most comprehensive
overview of Mongolia's key economic growth sectors all under one roof.
Speakers to the event include Altai Khangai, Chief Executive Officer of the Mongolian Stock
Exchange (MSE), Cameron McRae, President and Chief Executive Officer of Oyu Tolgoi LLC, and
James Passin, Co-founder and Manager of Firebird Mongolia Fund.
BCM is again a Supporting Association for the event. For more information, find a brochure to the
event by logging on to the website: mongoliainvestmentsummit.com.
___________________________________________
MONGOLIA INVESTMENT CONGRESS 2012 IN SHANGHAI, 10 December
16. Mongolian Investment Congress 2012 will be held in Shanghai, China on 10 December. The event is
presented by BCM along with the Mongolian Stock Exchange and Mongolian National Mining
Association, and INBC Global.
From mining, export infrastructure, and power generation to financial services, energy projects,
property development and more, Mongolian Investment Congress 2012 offers investment and
development opportunities at every turn.
Highlights for topics of discussion include international investment opportunities in Mongolia,
challenges for foreign investors in the mining industry and the coal reserves and resources.
The Clean Coal Asia Summit 2012 in Shanghai, 11-12 December
The event serves as the information and networking platform for commercializing clean coal
technologies in Asia and the world. Highlights for discussion include China's government policies in
the clear energy of China's 12th five-year plan (2011-2015) and innovation and new projects in coal
gasification and liquefaction.
___________________________________________
REGISTER NOW FOR MONGOLIAN MINING DIRECTORY - 2013
Mongolian Mining Directory-2013 which provides information database for mining companies,
investors, suppliers, service companies, government and non government organizations will be
published for the fourth year to commemorate the 90th anniversary of the Mongolian mining
industry. The MMD is distributed free of charge to international and domestic mining companies,
international conferences and exhibition, embassy offices in Mongolia and foreign countries to
investors.
BCM is a Supporting Organization of the MMD and welcomes Mongolian mining industry participants
who are interested in advertising their products and services in Mongolian Mining Directory-2013.
For more information please visit: www.mining.mn, www.mongolianminingdirectory.mn or call
+976-7011 5590.
___________________________________________
REGISTER FOR BCM‟S MINING SUPPLY CHAIN DATABASE AT NO COST
The new version of BCM‘s Mining Supply Chain Database is ready for use. Following the initiative of
Oyu Tolgoi LLC, the BCM has maintained the Mining supply chain database since March 2009. It is
honor to introduce you to the new version of the database which is totally upgraded as to its
content and use of information technology opportunities.
We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain
Database. Please visit here for registration.
If you have any questions regarding the database, please contact Undral at undral@bcmongolia.org
or 317027.
___________________________________________
“MM TODAY” on MNB-TV, Friday‟s at 19:15
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:15 to 19:25 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM WEBSITES
MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
Several presentations posted include the World Bank‘s Mongolia Quarterly Economic Update–June
2012 and 11 speeches from the 2nd Coaltrans forum, held on 23 to 24 May in Ulaanbaatar.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
17. government website Open-Government.mn are regularly updated.
___________________________________________
ENGLISH WEBSITE 'PRESENTATIONS', 'MONGOLIA REPORTS' AND „MONGOLIAN BUSINESS NEWS‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available to find recent
postings from BCM‘s September 24th monthly meeting and 9 presentations from Discover Mongolia
2012. The ―Mongolia Reports‖ section includes ―Oyu Tolgoi corrects allegations made in press‖ on
October 25, 2012; ―THE FISCAL REGIME FOR MINING—A WAY FORWARD‖ by IMF Fiscal Affairs
Department; ―Mongolia-A supplement to Mining Journal from Mining Journal October, 2012‖; ―Taxes
for Expatriates in Mongolia‖ from PricewaterhouseCoopers and the 2012 Mongolia Investment
Climate Statement by the Economic and Commercial Section of the U.S. Embassy.
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.
NewsWire will continue to be issued each Friday, incorporating items already on the home page for
a consolidated account of the week‘s events.
___________________________________________
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
Of course for news information, interviews, and announcements regarding our organization, visit
the official BCM website at www.bcmongolia.org and www.bcm.mn.
BCM WORKING GROUP MEETING:
The BCM Risk Working Group met Thursday, October 25, with 12 members attending.
Co-chairs Ganzorig U, UMC Holding, and Martin Pow, Deloitte Onch, moderated the session.
New members: Martin Pow/Deloitte Onch/, Jelena Pesic /PricewaterhouseCoopers Audit LLC/, and
Oyunkhand N, Khan Bank
were welcomed.
Meeting discussion was on the following topics:
- Detailed focus of the group, mid-term goals;
- Fixing the date for Risk Forum on February 27-28, 2013 – co-organizers – what is expected from
the working group members
Next meeting: On November 8, 2012. Members have been divided into three groups:
- 1. Macro Risk
- 2.Enterprise Risk
- 3. Societal Risk.
All interested members welcome to join. Reports will be presented by each group.
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]
September 30, 2012 *14.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 15.1% y-o-y, Ulaanbaatar city, September 30, 2012
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]
CURRENCY RATES – OCTOBER 25, 2012
Currency Name Currency Rate
US dollar USD 1,393.97
Euro EUR 1,812.51
Japanese yen JPY 17.44
British pound GBP 2,245.76
Hong Kong dollar HKD 179.50
Chinese Yuan CNY 223.33
Russian Ruble RUB 44.62
South Korean won KRW 1.26
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.
