Opportunities, challenges, and power of media and information
28.11.2008, NEWSWIRE, Issue 48
1. BUSINESS COUNCIL of MONGOLIA
NewsWire
info@bcmmongolia.org
www.bcmmongolia.org
Issue 48, November 28, 2008
NEWS HIGHLIGHTS:
Business: Draft resolution vague and disappointing, says Do.Ganbold; BHP Billiton calls off Rio
Tinto takeover bid; President discusses financial situation with Peter Morrow; Foreign
companies account for 67,000 work places; 50% workers laid off at Oyu Tolgoi; Gold
mining company completes technical reclamation; Work starts on Altanbulag trade
zone; Construction companies yet to get bank loans; Private carriers raise air fares;
Agency against camps in Khuvsgul protected area; Incomnet expands its Gilat SkyEdge
network; Camel milk dairy coming up.
Economy: Parliament guarantees all bank deposits, raises gold tax threshold; Parties come closer
on budget; Parliament discusses money issues behind closed doors; MPs hurry with
budget reading to meet deadline; Copper drops to near three-year low as global
surplus widens; Zinc price also going down; Joint MPs’ group sets copper price higher
to compute revenue; Social policy to shift direction from cash to jobs; MPs find merit
in audit office proposals; 920-km highway to be built.
Politics: Government likely to do without vice ministers; Korea to take fewer workers; Ministers
review Mongolia-Russia joint ventures; Environment Ministry wants NGOs’
cooperation; Surface water sources drying up fast; Need for policy on the elderly;
Indonesia looks for closer ties; Anti-Corruption Agency staff visits all aimag centers;
US university holds Mongolia week.
An announcement
LAURENZ MELCHERS TAKES OVER AS BCM CHAIRMAN IN JANUARY
The Business Council of Mongolia will begin the new year with a new Chairman, as Mr. Laurenz
Melchers takes over from Mr. Peter Morrow, BCM's founding Chairman, who vacates the position he
took up on a temporary basis when Mr. Alain Fontaine left the position. Mr. Melchers has been on
the BCM Board of Directors since the middle of this year.
Asked about his reaction, the Chairman-designate said, “The offer was completely unexpected and I
feel honored.” What new direction does he hope to give to BCM work? Mr. Melchers said, “The BCM
has a highly skilled and motivated staff, executive board and directors who are already working
hard for it and achieving great results. It will be my goal to continue on this successful path and to
put in my thoughts and ideas where needed. The Council’s interest is to see Mongolia become a
flourishing economy that will benefit all. If there are opportunities for BCM to be a catalyst in this
process, it will take these up and act upon them.”
Mr. Melchers is a co-founder of Mongolian Star Melchers Company (MSM) and has lived in Mongolia
with his family since 1997. MSM is a trade and service company, involved in mining and construction
equipment supply, automotive retail and service, consumer goods distribution, and health care and
hospital supplies.
The MSM motto is Powerful Service. BCM members will be looking forward to some aces from their
new Chairman.
2. BUSINESS
DRAFT RESOLUTION VAGUE AND DISAPPOINTING, SAYS Do. GANBOLD
Do.Ganbold, President of the Mongolian National Mining Association, says that while the basic
outlines of the draft resolution prepared by the MPs’ working group on mining were better than the
suggestions during discussions in Parliament, many of the details in it were impracticable. There
were also contradictions. For example, on Tavan Tolgoi the proposal to work within the framework
of the 2006 law is soon followed by another to study the possibility of setting up a company where
the Mongolian side will own not less than 51 percent. This is against the 2006 law which put the
state’s ownership share in projects where the prospecting work had been done at State expense at
50 percent, and not more.
Investors were generally disappointed, he said. It was clear that the draft “was prepared by people
who don’t understand mining at all”. Also, much in it had been left vague and will merely make for
uncertainty as time goes on, something they were most keen to avoid. He could not be sure
whether these inconsistencies were innocent lapses or deliberate equivocation. In any case,
investors right now are uncertain if the Government will go for investment agreements first or
changes in the law before that. Anyway, with Parliament busy with the budget until December 1,
Do.Ganbold saw little chance of any further progress on the mining issue before the new year.
The deteriorating financial situation was making negotiation prospects worse. Earlier, investors
might have said, “OK, let us accept the Mongolian terms,” but now any such accommodation will be
difficult, with product prices on a downslide, and financial credit hard to come by. Do.Ganbold
thought their present constraints could even lead investors to ultimately reject the conditions that
the Mongolian side might insist upon. In business, what was acceptable in the past may not be so
any longer and “if the Mongolian side does not understand this, they must not talk about market
economy”.
Calling the ideas about asking investors to pay taxes and fees in advance “an absolutely impossible
demand”, Do.Ganbold said, “We don’t need to produce tons of paper before beginning talks.
Investors are ready for them. It is not a matter of who won and who lost. We need to cooperate at
a time of global crisis.”
During the Euromoney Forum some investors openly said, “We are glad that MPRP won the election
as it opens up possibilities of cooperation.” Asked if investors took sides in the country’s political
contest, Do.Ganbold said neither foreign nor local investors could have any overt preference for any
party label, but both wanted to deal with people who were “more organized, more responsible, and
more flexible”.
Referring to MPs frantically working on budget cuts following declining mining revenue, Do.Ganbold
said the situation would not improve even if new investment agreements were signed soon. New
projects will start yielding revenue after three years at the earliest. The budget revenue has fallen
because income from Erdenet has fallen. If work on Oyu Tolgoi had started two years ago the
situation today would be different, as income from there would have been 3.5 times more than that
from Erdenet.
Do.Ganbold rated as bleak Mongolia’s chances to find money for its share of expenses in Oyu Tolgoi
and Tavan Tolgoi unless it went for big loans. Asked about product sharing, he said, loud and clear,
“That is impossible.”
Source: Ardiin Erkh
BHP BILLITON CALLS OFF RIO TINTO TAKEOVER BID
Global miner BHP Billiton Ltd has called off its USD58 billion bid for rival Rio Tinto Ltd, citing
worsening market conditions and demands for both iron ore and coal asset sales from European
regulators as a condition of the deal.
Chairman Don Argus said the decision was first and foremost about BHP Billiton shareholder value
and risks to it. “We have said that we would only seek to complete the transaction if it was in the
best interests of BHP Billiton’s shareholders. While we have not changed our view of the basic
industrial logic of the combination, or of the longer term prospects for natural resource demand
growth driven by emerging economies, we have concerns about the continued deterioration of near
term global economic conditions, the lack of any certainty as to the time it will take for conditions
3. to improve and the risks that these issues imply for shareholder value,” he said.
Marius Kloppers, BHP Billiton’s CEO, said, “We have previously said that similar cultures and the
overlap of key assets and infrastructure make this a compelling combination. Recent global events
and associated falls in commodity prices have, however, altered risk dimensions. BHP Billiton is
very focused on balance sheet strength. Accordingly, the greater debt exposure of the combination
plus the difficulty of divesting assets have increased the risks to shareholder value to an
unacceptable level.”
Source: Reuters.com, www.bhpbilliton.com
PRESIDENT DISCUSSES FINANCIAL SITUATION WITH PETER MORROW
President N. Enkhbayar received Khan Bank CEO Peter Morrow Thursday last week to discuss the
current situation and trends in the banking-financial sphere of Mongolia.
“At a time when the world is facing a financial crisis, when prices and inflation are rising in
Mongolia, I am glad to meet with the CEO of the bank that occupies an important position in
Mongolia's banking system," said the President. Mr. Morrow said that although Mongolia's banking
institutes are linked with the international financial world, the crisis has had no direct effect on
them, and that ways need to be found to solve the present problems of high inflation and tight
money that restrict access of Mongolians to credit.
The meeting discussed issues in the financial and business spheres, the chances of heavy
investments and identifying financial sources, ways to restrict inflation, interest policy, foreign
investments, and the role of the bank in reduction of poverty and unemployment in rural areas.
Source: Montsame
FOREIGN COMPANIES ACCOUNT FOR 67,000 WORK PLACES
The year 2002 was declared “Promoting Investment” year in Mongolia. The result has been that
today there are 3,083 foreign-invested companies from 124 countries doing business in sectors such
as tourism, mining, infrastructure, information technology and agriculture. Joint ventures account
for 60.4% of total foreign investment. Foreign invested companies have created 67,000 jobs.
Source: www.gogo.mn
50% WORKERS LAID OFF AT OYU TOLGOI
Ivanhoe Mines has laid off 50% of its workers at Oyu Tolgoi and 10% of the staff in its Ulaanbaatar
office. The company has also cut its 2009 budget by 70%.
Source: Onoodor
GOLD MINING COMPANY COMPLETES TECHNICAL RECLAMATION
The Mongol Gazar Company has completed a technical reclamation program in Uyanga soum of
Uvurkhangai province, leading local people to say their trust in gold miners has returned. The area
is rich with gold and so drew numerous artisanal miners whose activities became a national tragedy
in the valleys where they dug and cleaned, defying all regulation. Mongol Gazar mined gold in
Buuruljuut valley, where it worked on a thorough reclamation program. Biological reclamation work
will be taken up next year. The company keeps artisanal miners away from the region. Local people
have appreciated the company’s efforts saying their initial opposition to mining for gold has now
disappeared, “as we now live in our own land without worry”.
Source: Undsenii Shuudan
WORK STARTS ON ALTANBULAG TRADE ZONE
Work on the Altanbulag free trade zone in Selenge aimag was formally inaugurated at a ceremony
on November 20 that was attended by the province Governor J.Erdenebat, Russian Ambassador to
Mongolia V.A.Govorin, former head of the Central Bank and now an MP, O.Chuluunbat, E.Bat-Uul,
MP, representatives of the Government, and a number of Mongolian and Russian businessmen.
The day also saw more than 1,000 trade organizations based in seven countries lease 400 hectares
in the trade zone for USD600 million. The director of the trade zone, N.Hanoi, said this was the
beginning of a process of development that would finally become a big settlement of 10,000 trading
4. people by 2011. A variety of businesses, including manufacturing facilities, will operate within the
free trade zone.
Source: Montsame, Mongolia-web.com
CONSTRUCTION COMPANIES YET TO GET BANK LOANS
The Central Bank recently reduced interest rates to make it easier for commercial banks to give
credits. It also announced an agreement with the Ministry of Roads, Transportation, Construction
and Urban Development that construction companies with 80% of the project completed would be
eligible for loans. However, the process had not started until the end of last week, leaving
construction companies starved of essential funds. Banks are taking the safer way of lending against
salary, pension, and accredited savings as collateral. In some cases, they are granting credit to
those with some special relationship with them. As banks play safe, the construction sector and
home buyers are left in the lurch.
Source: Zuunii medee
PRIVATE CARRIERS RAISE AIR FARES
The two private domestic air carriers in the country, Eznis Airways and Aeromongolia, have raised
fares following increased fuel prices. A passenger will now pay MNT480,000 for a one-way ticket to
Bulgan soum of Khovd province, or about MNT1 million for a round trip.
Source: Ardchilal
AGENCY AGAINST CAMPS IN KHUVSGUL PROTECTED AREA
The State Inspection Agency has suggested that all tourist camps be removed on environmental
grounds from the Khuvsgul Lake protected area. The agency recently did a check on 60 tourist
camps run by 30 companies near the Khuvsgul Lake and asked 35 of them to improve their toilet
facilities and sewage disposal system.
Source: en.News.mn
INCOMNET EXPANDS ITS GILAT SKYEDGE NETWORK
Incomnet, one of Mongolia's largest telecommunications service providers, has added Gilat's SkyAbis
cellular backhaul solution to its satellite communications network to serve Mongolia's mobile
operators. SkyAbis is a prepackaged solution for cellular backhaul that enables operators to deploy
hybrid networks extending the reach of their terrestrial and cellular infrastructure to remote
communities.
Earlier this year Incomnet deployed a Gilat SkyEdge network, which provides toll-quality telephony
to Mongolia's rural citizens. The network also provides interactive data networking to selected
Mongolian government agencies and businesses, particularly those in the financial services sector.
"Our present choice is based on our excellent experience with Gilat's advanced satellite
communications technology and our satisfaction with the dedicated customer support we receive,"
said Incomnet CEO Dr. Sanjaa Ganbaatar. "Our ongoing relationship with Gilat has helped us build a
significant customer base as we continue to provide superior telecommunications services. We are
pleased to have the opportunity to extend these services to Mongolia's cellular operators."
Source: Business Wire
CAMEL MILK DAIRY COMING UP
The planned dairy plant for camel milk in Omnogobi province, work on which began last year, is
expected to become operational in the coming four years. Funding is being provided by the United
Nations Industrial Development Organization (UNIDO) and the Czech Republic. It will produce
powdered camel milk to be used as coffee creamers and also in chocolate. Studies have found there
is a good market for the product in western countries.
Source: Mongolia-web.com, Montsame
5. ECONOMY
PARLIAMENT GUARANTEES ALL BANK DEPOSITS, RAISES GOLD TAX THRESHOLD
Jittery over small bank runs and falling commodity prices, Mongolia's Government is guaranteeing
all bank deposits, as the country tries to ward off the global financial crisis. Parliament approved
the law Tuesday to try to shore up confidence in Mongolia's 16 commercial banks, which hold
USD1.1 billion in deposits, and to ensure banks keep lending to buoy the economy.
"The world economic crisis is not affecting Mongolia directly. However, we are feeling the shock,"
Prime Minister Bayar told reporters. He said some Mongolians had started to withdraw their savings
from banks out of concern they might collapse and that in part prompted the Government to act to
issue its 100 percent guarantee for deposits.
Mining, especially of copper, is the lifeblood of the Mongolian economy. High prices for minerals
boosted economic growth to better than 9 percent last year, with most of the output sold to China.
But copper prices have plunged by half this year, as the world economy slows. The drop has
crimped government revenues, most of which come from taxes on copper. As a result, the
Government has been forced to reduce spending, laying off some civil servants and telling others to
cut back on phone calls and driving official cars. Getting large-scale mining projects going will be
the best medicine to reinvigorate the economy, Bayar said. Until then, the Government hopes that
banks will continue to lend money, cushioning the economy.
"The Mongolian banking system is sound and stable. It is not on the edge of collapse or anything like
that," Finance Minister Bayartsogt told Parliament when urging legislators to approve the 100
percent guarantee on bank deposits. "This law is designed to safeguard collapse of the banking
system." To further bolster the banks, the Government has asked Parliament to approve a law to
inject USD250 million in state treasury funds into the commercial banks to encourage lending.
In an effort to curb widespread tax evasion and replenish revenues, Parliament also raised the
threshold price for the windfall profit tax on gold. The 68 percent tax on profits will be now
imposed when gold prices climb above USD850 an ounce, rather than the USD500 mark set two
years ago. The USD2,600 a ton threshold for copper remains unchanged.
Source: Associated Press, International Herald Tribune
PARTIES COME CLOSER ON BUDGET
All major differences between the MPRP and DP groups in Parliament on the draft budget for 2009
have been resolved. The head of the DP group, Ch.Saikhanbileg, has said “budget discussions will
now see the green light” while his MPRP counterpart, D.Lundeejantsan, says, “We are almost
agreed.”
Both groups held their own meeting on Monday. The DP MPs discussed the Government proposal to
use money in the Mongolian Development Fund to create a reserve wheat stock of 100,000 tons, for
Tg466,000 per ton. The DP supported the idea but wanted the price to be fixed at Tg 450,000 per
ton, and the amount from the Fund to include Tg 100,000 for farmers as incentive. Saikhanbileg
said the Government wanted to take Tg40 billion from the Development Fund for the wheat stock
but if the DP suggestion for lower prices were accepted, less money will be needed.
The MPRP group discussed an amendment to Parliamentary rules. It is proposed that if an issue
comes up that needs immediate action, the Prime Minister will submit it directly to the Speaker. If
he is convinced, it will be placed before Parliament, without waiting for the 10 days’ notice that is
mandatory at present. The MPRP group supported this amendment as it would lead to quicker
decisions in emergency situations.
Source: www.news.mn
PARLIAMENT DISCUSSES MONEY ISSUES BEHIND CLOSED DOORS
The present Parliament held its first closed-door session on Monday afternoon to discuss whether
and how much money in the Mongolian Development Fund should be transferred to commercial
banks from the Central Bank. The Prime Minister expressed his position on the matter. Also on the
agenda was guaranteeing citizens that their savings in the commercial banks were secure.
Source: Ardiin Erkh
6. MPs HURRY WITH BUDGET READING TO MEET DEADLINE
Parliament sat up to 10 PM on Friday to finish the second reading of the draft 2009 budget. Two
more readings must be gone through this week as the budget has to be adopted before December
1. S.Oyun wanted an assurance that some of the future income from the windfall profits tax would
be saved, and not all of it spent immediately, as has been done so far. Some members criticized
political parties for making extravagant election promises that would now be very difficult to fulfill.
Friday’s session began with a discussion on the policy guidelines for the Government’s action plan
for its entire four year term. First Vice Prime Minister N.Altankhuyag said the guidelines had five
broad sections. First, they enjoined the Government to focus on mining, to begin early exploration
of the Oyu Tolgoi and Tavan Tolgoi deposits, and to take steps to begin distributing the MNT1.5
million “wealth share” to all citizens in 2009. Second, they wanted industrialization to be
expedited. The emphasis will be on the mining sector, but there must be support for projects in
aimag centers to set up units producing foodstuff, dairy products, and construction material. The
Government also plans to allot MNT50 million to every soum to have small and meduim enterprises.
Third, the Government will continue the present policy of achieving more wheat, flour, and
vegetables production. Fourth, vocational training centers will be modernized and made responsive
to the demands of the market. Fifth, Government activities at all levels will have to be open,
transparent, and responsible. For that, the Government will work together with NGOs. Members
then approved these guidelines after some spirited debate.
Source: Ardiin Erkh, Business.Mongolia
COPPER DROPS TO NEAR THREE-YEAR LOW AS GLOBAL SURPLUS WIDENS
Copper last week fell to near the lowest in more than three years as a global surplus widened with
a deteriorating global economy reducing demand for industrial metals. The International Copper
Study Group has said world copper production exceeded usage by 75,000 metric tons in the first
eight months this year, compared to a surplus of 22,000 tons for the same period in 2007. The
report “adds to the evidence that refined copper is moving into a surplus and putting a downward
pressure on the metal price,” Zeng Chao, an analyst, commented.
Copper for three-month delivery fell as much as 2.4 percent to USD3,455 a ton on the London Metal
Exchange on November 21, the lowest since July 2005. The price is down 48 percent this year,
headed for the first annual drop since 2001. Inventories monitored by the London exchange rose to
283,125 tons on November 21, the highest since February 2004.
Refined copper imports by China, the world’s largest consumer, rose 15 percent to 128,929 tons in
October over the previous month, but total imports declined 13 percent to 1.1 million tons in the
first 10 months.
Source: Bloomberg.com
ZINC PRICE ALSO GOING DOWN
With all eyes on falling copper prices, N.Batbayar (DP) recently drew the attention of his fellow
Members in Parliament to the sharp fall in the price of zinc. Tsairt Mineral, the joint Mongolian and
Chinese company in Sukhbaatar aimag that has been exploring zinc for the last three years, reports
that from a peak of USD2,100 per ton, the price of zinc has now fallen to USD1,100. Batbayar
wants due notice to be taken of this when estimating next year’s budget revenue.
Source: en.News.mn
JOINT MPs’ GROUP SETS COPPER PRICE HIGHER TO COMPUTE REVENUE
A joint working group with MPs from both parties as members has suggested that the average
expected price of copper in the global market in 2009 should be set at USD3,400 per ton and all
revenue should be computed on this basis. The Government favors keeping the estimated average
price at USD3,200. The parties’ decision would mean the anticipated state budget income next year
would rise by MNT3.2 billion, and the fees on mineral resource by MNT5 billion. The standing
committee on the budget supports the MPs’ optimism and its head, Khurelbaatar, also favors the
cut-off rate for the windfall profits tax on gold to be set at USD850 an ounce. He also says that
7. vigorous chopping of expenses has saved MNT180 billion in the budget, so there should not be a
deficit.
Source: Business-Mongolia
SOCIAL POLICY TO SHIFT DIRECTION FROM CASH TO JOBS
Social Welfare and Labor Minister T.Gandi has indicated that the thrust of the Government’s social
policy would be changed to make it more effective. Instead of aiming to provide relief to people
with low income, the policy will now target families as a whole, particularly those in the medium
income bracket. The emphasis would shift from distributing cash to spending the money on creating
durable assets. The Government’s target is to find a job for someone in every family and to help
increase the income of 50,000 families by 2012. The quality of the services offered will also be
improved.
In 2002 170,000 people got MNT20 billion in various forms of social welfare assistance. Last year the
number of recipients rose to 207,900 and the quantum of money to MNT 22.9 billion. Up to
September this year 257,606 people have received MNT25.1 billion. The Government wishes to
utilize the money more productively and also help the people in a more permanent manner.
Source: www.news.mn
MPs FIND MERIT IN AUDIT OFFICE PORPOSALS
The Parliamentary Subcommittee on Budget Expenditure Control is in favor of incorporating in the
2009 budget certain proposals made by the National Audit Office. These include suggestions on
measures to curb expenses on fuel and heating, to reduce administration costs in soums through
better planning, to improve the efficiency of organizations responsible for collecting state revenue,
to change the fiscal year as part of a broader budget reform, and to review the methodology of
copper price prediction. The Audit Office feels that the management model followed in the
Darkhan metallurgical plant and the Erdenet mining corporation should be implemented elsewhere
so that more dividends can accrue to the budget revenue.
Taken together, the suggestions assure MNT30.1 billion in increased budget revenue and a savings
of another MNT154.9 billion in expenses.
Source: Montsame
920-KM HIGHWAY TO BE BUILT
Construction begins next year on a highway to connect Zamiin Uud on the southern border with
Altanbulag on the northern, according to Roads and Transportation Minister Kh Battulga. Technical
and economic feasibility studies on the 920-km project have been completed.
Source: Onoodor
POLITICS
GOVERNMENT LIKELY TO DO WITHOUT VICE MINISTERS
Even almost 100 days after it took office the new government has not appointed any vice ministers
and, the way things are developing, might not do so at all. At one time there was talk about the
need to have two vice ministers in certain Ministries but the imperatives of economizing have
persuaded MPs from both the MPRP and the DP to reconsider the whole issue. The general
agreement now is that work will not be affected if there are no vice ministers, with the State
Secretaries handling the extra responsibilities. Standing Committees would be discussing the matter
soon to put all speculation, and some individual ambitions, at rest.
Source: en.News.mn
KOREA TO TAKE FEWER WORKERS
South Korea has decided to take fewer workers from Mongolia this year than the expected 8,000. It
plans to meet the shortfall with laborers from Vietnam. With figures from the two westernmost
provinces yet to come, 9,300 people, including 50 women, have already been registered as willing
8. to go to work in Korea. From them 5,000 will be selected after medical and Korean language
proficiency tests.
Source: www.news.mn
MINISTERS REVIEW MONGOLIA-RUSSIA JOINT VENTURES
First Vice Premier N.Altankhuyag, who leads the Mongolian side in the Mongolian-Russian
intergovernmental commission, was in Moscow recently to hold talks with his counterpart,
A.B.Gordeev. The Russian Minister of Agriculture is also the special envoy of the Russian President
on all trade, economic and investment cooperation issues concerning Mongolia. They reviewed the
current state of the bilateral trade-economic and scientific-technical cooperation, focusing on
improving the performance of joint venture companies like Erdenet Copper Corporation,
Mongolrostsvetmet, and Ulaanbaatar Railway. They also discussed cooperation in the energy sector.
A regular meeting of the commission will be held in Moscow in December.
Source: Montsame
ENVIRONMENT MINISTRY WANTS NGOs’ COOPERATION
The Ministry for Nature, Environment and Tourism has asked its agencies and organizations to
identify activities and jobs that can be transferred to non-government organizations. The country
has a large number of registered NGOs in the environment sector. They employ three times the
number of government workers and thus their participation in programs can be very effective.
The Ministry had earlier announced that 2008 would be a “year to increase the participation of
NGOs in protecting nature”. A general conference of environment NGOs on November 25 found
about 350 delegates from the city and rural areas discussing the details of the cooperation, and a
formal agreement between them and the Ministry is likely to be signed soon. So far this year, 59
NGOs have been working on projects with total costs of MNT230 million.
Source: Ardiin Erkh, Montsame
SURFACE WATER SOURCES DRYING UP FAST
A nationwide joint survey by the Water Authority and the State Professional Monitoring Agency has
found a sharp fall in the last four years in the number of surface water sources in the country,
raising fears of a severe depletion of water supply in the not too distant future. Over 1,200 of the
5,100 rivers and streams flowing in 2004 are now dry. Of over 3,700 lakes enumerated then, some
2,600 have no water any longer. The number of springs has come down from 93,700 to 70,000.
There were more than 400 mineral water sources four years ago, of which 110 have disappeared.
Global climate change may be partly to blame, but Z. Batbayar, the Water Authority head, feels
the immediate responsibility lies with local human activity. He faults irresponsible and unregulated
gold mining and tanning, both of which use up an enormous quantity of water.
The survey is conducted once every four years. The present one found Mongolia has 64 sewage
plants, 13 hydro power plants, 64 dykes, 102 irrigation systems, and 42,000 wells.
Source: Mongolia-web.com
NEED FOR POLICY ON THE ELDERLY
A national policy on the elderly will soon be on the anvil. Social Welfare and Labor Ministry officials
feel there will be a substantial number of such people in Mongolian society by 2020 and a well-
defined strategy is needed to make their life more productive and to allow the country the benefit
of their skills and experience.
Ts.Natsagdolgor of the Ministry feels the current mindset that sees the elderly as “useless and
dependent on social welfare handouts” has to be changed. Society must devise ways in which the
various capacities and capabilities of these senior people can be effectively used. Instead of
treating them as a liability, they should be banded into “the golden fund of labor,” the official said.
Source: Ardiin Erkh
9. INDONESIA LOOKS FOR CLOSER TIES
Indonesia is currently exploring the possibility of cooperating in various fields with Mongolia,
according to Sudrajat, the country’s Ambassador to China and Mongolia, who was in Ulaanbaatar
last week “to strengthen our bilateral relations” by holding talks with the President and several
Ministers. He identified energy, education, trade, and culture as areas where immediate
cooperation can begin.
Sudrajat said the partnership could spread to various fields as there was “a strong spirit of
togetherness” between the two countries. The move is “part of our effort to diversify the markets
of Indonesia’s products to countries in the Asian region", Sudrajat said. President Enkhbayar plans
to visit Indonesia next month but the exact date is still to be fixed.
Source: ANTARA News
ANTI-CORRUPTION AGENCY STAFF VISITS ALL AIMAG CENTERS
The Anti-Corruption Agency does not have any office outside Ulaanbaatar, so all work in the
provinces is done by staff traveling from the capital. Fanning out to all the 21 aimag centers and 19
soums, agency workers covered altogether 12,000 kilometers last month. They held discussions with
900 people about how corruption harmed the system, and also met with 2,000 state workers, 450
business people and 2,100 citizens to get an idea of how they worked.
They received 33 complaints about corruption among local authorities and have begun investigating
some of them.
Source: en.News.mn
US UNIVERSITY HOLDS MONGOLIA WEEK
Mongolia was the focus of the International Education Week 2008 organized at Montana State
University in the USA between November 17 and 21. This was the sixth year that university
sponsored such a week, where the culture and traditions of a country are offered to the community
through free admission to lectures, film, stories and demonstrations. Mongolia was a natural choice,
according to a university official, as it “shares similar landscapes and environmental challenges
with Montana”.
Bolortsetseg Minjin, a paleontologist who is currently a visiting scholar at the Museum of the
Rockies, kicked off the Discover Mongolia week with a presentation about dinosaurs in Mongolia.
Her non-profit Institute for the Study of Mongolian Dinosaurs in Ulaanbaatar wants to build a
museum in Mongolia to preserve dinosaurs and other national treasures, and to further science
education in the country. Another attraction was a slideshow, Images of Mongolia, by freelance
photographer Gordon Wiltsie, whose work is frequently published in National Geographic and other
magazines.
Source: Mongolia-web.com
Announcement from Canadian Embassy
The Canadian Embassy invites representatives of Canadian companies to an information session on
visa procedures for Mongolians at 5:30 PM on December 1 at the Open Society Forum Building (2nd
floor). Mr. Sidney Frank, Minister Counsellor (Immigration), and Mr. Olivier Jacques, Head of the
Temporary Resident Unit of the Visa Section at the Canadian Embassy in Beijing, will explain visa
application procedures for Mongolians and answer questions or concerns. Canadian companies
wishing to send a representative may please send an E-mail to n_byamba@yahoo.com.
10. SPONSORS
ECONOMIC INDICATORS
MSE WEEKLY REVIEW
For the week ended November 21, 2008, trading activity on the Mongolian Stock Exchange (MSE)
totaled 863,100 shares with 36 companies traded. Total market value of transactions was
MNT139.3 million. Total market capitalization of the 358 companies listed on the MSE was MNT
585.7 billion, and decreased by MNT 14.8 billion or 2.4% from the previous week.
The Top-20 index decreased by 297.64 points or 4.5% compared to the previous week closing at
6,374.28 points. The MSE Composite Index decreased by 121.52 points or 3.7% compared to the
previous week, closing at 3,152.06 points.
Most active stocks traded were: Remicon (357,300 shares), Khuh Gan (176,600 shares), Hermes
Center (141,600 shares), Olloo (58,400 shares), and Genco Tur Buro (49,900 shares).
Major share price percentage gainers were: Teever Darkhan (14.2%), Tsuutaig (12.6%), Makhimpex
(9.1%), Spirt Bal Buram (4.6%), and Khuh Gan (4.3%). Major share price percentage losers were: Sor
(22.9%), Olloo (15.0%), Gobi (14.7%), Zoos Goyol (14.7%), and NIC (14.6%).
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 Avg. 9.0% [source: NSOM]
Year 2007 *15.1% [source: NSOM]
October 31, 2008 *27.9% [source: NSOM]
*year over year (yoy)
11. CURRENCY RATES – November 27, 2008
Currency name Currency Rate
US dollars US 1166.86
Euro EUR 1502.68
Japanese yen JPY 12.09
British pound GBP 1765.05
Hong Kong dollar HKD 150.47
Chinese yuan CNY 170.89
Russian ruble RUB 42.63
South Korean won KRW 0.78
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.