March 30 2012

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 215 – March 30, 2012
NEWS HIGHLIGHTS:
Business
 E-TT needs USD 400 million pre-IPO;
 OT reaches 72.7 percent completion;
 Shenhua ready to resume TT talks after elections;
 Clean Energy Asia to export energy to Japan;
 Haranga announces iron-ore prospects at Selenge project;
 EBRD provides financing for Salkhit wind farm;
 MIAT expands partnership ties with Korean Airlines;
 Mongolian firms and the country itself win big at Mines and Money awards ceremony;
 Mongolian Mining Corp. debt offering attracts huge demand;
 XacBank hoping to follow success of DBM and MMC bond offerings;
 Ikh Gobi seeks up to USD 200 million pre-IPO;
 Petrovis launches sale of block of Mongolian Mining Corp. shares;
 MAK contracts global engineer for copper project;
 New Erdenes MGL executive vows fair management;
 TDB reports over 50 percent gains in assets and equity;
 Mobicom executive finds new home at Skytel;
 Petro Matad appoints new board director;
 Leighton names new Asia boss;
 Flooding wounds Peabody's Australian coal production;
 Areva predicts comeback for nuclear energy;
 Cameco hopeful for restart to nuclear programs.
Economy
 Big opening for Mongolia's entrance into international debt markets;
 UB to invest more in public transportation;
 Mongolia, China extend currency swap agreement;
 Eurasia Capital executive sees Mongolia with world's top growth in 2012;
 Mining sector contributes 56.7 percent to state budget revenue;
 Mining interests crowd out tourism industry;
 Local producers reach for foreign markets;
 Students look abroad for education as job market grows more specialized;
 Mongol Bank to introduce national card service;
 City government plans for new public transportation network;
 Investors need to get going while the going is good;
 Australia, Canada, and Chile remain top mining destinations;
 China makes plans for greater reliance on coal imports;
 Drag on debt;
 China cloud fogs miners' way;
 China's forex market shows signs of hot money vulnerability;
 Russian economy slow to recover, World Bank says.
Politics
 Russian investor balks at new railroad contract for TT;

2.  Former police officials arrested for deaths in 2008 riots;
 Mongol Bank loans MNT 60 billion to supplement Human Development Fund;
 Constitutional Court challenges new election law;
 Parliament to consider VAT tax;
 Cambridge system to launch in schools in April;
 NATO approves partnership agreement for defense;
 Corruption prevails in Mongolian politics;
 United Nations calls for greater support to reindeer herders.
SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Mongolian Star Melchers Breakthrough PR
Asia Pacific Securities Oxford Business Group
BCM MEETING RECAP
The meeting on 26 March with Laurenz Melchers in the chair was attended by 90 members and
invited guests. Melchers announced that BCM has distributed surveys asking members for their input
on the quality of its NewsWire service, and encouraged all members to participate.
BCM Executive Director Jim Dwyer announced that BCM‘s recently formed Risk Institute of Mongolia
Working Group, headed by John Wheadon and U. Ganzorig, has the medium-term goal of becoming
an independent Mongolian NGO. One step toward that goal will be for the Working Group to take
over the organization of next February's 3rd Risk Management Forum of Mongolia. Jim said the
Legislative Working Group met last Friday focusing on draft laws on the agenda of the spring session
of Parliament. The Capital Markets Working Group recently was addressed by the marketing head of
the MSE. The WG also reviewed the fact that the MSE‘s regulator, the FRC, is understaffed and
underfunded and will offer to assist the FRC with the implementing of its strategic plan. The
Education Working Group has made headway with its ‗BCM in the University Classroom‘ program,

3. holding its first speaking event with the CEO of Oyu Tolgoi LLC, Cameron McRae. Additionally,
Prince Michael of Kent, a cousin of Her Majesty the Queen and a Patron of the London School of
Business and Finance will attend the Education Working Group‘s session on 16 April during his visit
to Mongolia.
BCM membership now stands at 210 members. The five recently joined members are:
Elgin Group LLC – Elgin is a privately-owned independent financial company headquartered in Baar
in the canton of Zug, Switzerland. Elgin primarily specializes in highly personalized, quality
investment services for affluent individuals, but also financial planning via regular savings
contribution plans, pensions, educational fee planning and life insurance.
Haranga Resources Ltd. - This miner is an Australian-listed company focused on developing high
quality iron ore projects in Mongolia. The Company controls 60% of the Selenge project, located in
the world class iron ore province of Selenge in northern Mongolia. The Company also holds majority
interests in the Shavdal, Sumber, and Tumurtei Khudag iron ore projects. Haranga Resources
operates and manages the Khundlun project which it owns 100% and each of its other 4 projects on
behalf of the joint ventures.
Minter Ellison – Based in Australia, this international law firm is one of the largest law firms
operating in the Asia Pacific. More than 284 partners and 870 legal staff work in 14 offices across
Australia, New Zealand, Hong Kong, the People's Republic of China and the United Kingdom. Its
large and diverse client base includes leading multinationals and Fortune 500 companies, global
financial institutions, and numerous government departments and agencies in Australia and
overseas.
Rock Discovery Drilling LLC - This exploration drilling company employs over 90 staff and holds
responsibility to provide foreign and domestic clients with professional consulting services and
mining drilling solutions in Mongolia. Its mission is to become a leader in the mining drilling
industry, provide valuable contributions to the future development of Mongolia and to remain a
reliable partner of clients.
Standard Investment - This brokerage house and boutique investment bank has offices in
Ulaanbaatar, Hong Kong and Zurich. Standard Investment links international investors to high-
potential business projects in Mongolia. It holds an underwriting license and is providing investment
advisory, brokerage and dealing services in Mongolia.
Standard Investment is part of the Standard Group with companies Standard Property, Standard
Management, Standard Finance and InfoActive which is running the national lottery of Mongolia.
L. Bolormaa, Deputy CEO of the Development Bank of Mongolia, gave the first presentation to
discuss the bank‘s objectives and its means to meet its financial ends. The bank is Mongolia‘s first
policy bank and in less than a year since its conception has led Mongolia‘s entrance into the
international market with its USD 600 million (totaling USD 580 after a USD 20 million private
placement for the railways last year) Euro Mid-term Note program offering. She also mentioned the
banks intention to upscale that offering in light of orders exceeding the offer by 13 times, totaling
USD 6.6 billion.
The bank was created to create paths to finance projects to aid in Mongolia‘s development. These
include infrastructure projects to Mongolia‘s railway system, housing, and the Sainshand Industrial
complex. She also noted that the bank is looking into projects with energy saving goals. The
development of roads, lack of capacity for road construction, the poor quality of roads already
built, and the absence of monitoring pose the greatest challenges, she said. The bank intends to
address these issues in part through partnerships with entities such as the Chinese Development
Bank. She added that the bank was also looking into developing the foreign exchange market with
ING Bank and has signed a memorandum of understanding with Barclays for objectives in risk
management and forecasts.
From Resource Investment Capital LLC (ResCap) Managing Director Eric Zurrin gave a description of
how Mongolian investors now see Mongolia. Living in Mongolia, he said, has many of us fixated on

4. looking at the world from the inside, but it is important to remember that people from the outside
looking in see a different picture.
The Mongolian story is a simple one: selling raw minerals to China. However, it is not foolproof.
Relying so heavily on one customer may not inspire much confidence among investors. However,
Hong Kong and New York are currently struggling, and they are looking for the next big success
story in the emerging markets. Financial firms are also always trying to outdo themselves and top
their own benchmarks.
Politically and geographically, Mongolia has the challenges of meeting the needs of an export
economy for labor and infrastructure. However, the government is supportive of the private sector;
there are no religious divides.
―To investors a nomadic culture means an entrepreneurial spirit that is always looking for progress
and growth,‖ said Zurrin.
Hot button issues for investors include strong local partnerships, the valuation of opportunities
(quantity and quality), and structuring mechanics. For that last point, he gave the example of
Mongolian Mining Corp.‘s acquisition of QGX Ltd., where the ultimate purchase price will range
between USD 450 million and USD 950 million depending on the milestones hit. The number of
access points are limited but are growing, he said, as evidenced by the recent debt offering by the
Development Bank of Mongolia. However, for now, investors are left with just domestic private
equity purchases, international funds, opportunities via the Mongolian Stock Exchange and
international capital markets.
The final presentation was given by S. Ganbaatar, the President of the Confederation of Mongolian
Trade Unions. He implored members of the private sector to take a more active role in helping
chart a course for Mongolia's proper development without taking shortcuts. He said policy makers
lack the skills and know-how to direct this incoming wealth into the most prudent investments,
something the private sector has in abundance.
―Politicians don't even know what they don't know,‖ Ganbaatar said. ―They are not the experts they
think they are.‖
The trade union representative said above all else Mongolia needs fair distribution of the wealth
pouring in, fair taxation, in addition to a wage policy. He reminded his audience that a trade union
is powerless without businesspeople to create jobs. Ganbaatar went on to liken Mongolia to a
window shop, filled with goods but lacking any means for production. Mongolia will need to use this
money today to build the infrastructure to stand on its own tomorrow, he said.
BUSINESS
E-TT NEEDS USD 400 MILLION PRE-IPO
State-owned Erdenes-Tavan Tolgoi, owner of one of the world's largest coking coal deposits, will
need to raise up to USD 400 million this year provided it can list its IPO late this year, a senior
executive said on Thursday.
Erdenes-Tavan Tolgoi had been planning to list 29 percent of the company in London and Hong Kong
by May in a float that analysts expect could raise about USD 3 billion, but it cannot go ahead until
Parliament passes a Securities Law. Once it is passed, the initial public offering (IPO) timing could
also be affected by progress on government talks with a consortium of companies from Russia,
China, Japan, South Korea, and the United States to develop the west block portion of the big
Tavan Tolgoi deposit, and talks on developing rail routes from the mine.
Resolution of those issues would help improve valuations on the company ahead of an IPO. With the
float pushed back, the company is going to need to raise funds to pay for work at the site.
―Provided we could list late this year, USD 400 million should cover everything we would want to
do,‖ Erdenes-Tavan Tolgoi chief operating officer, Graeme Hancock said. He added that the
company would probably look to raise USD 200 million first, then raise more later, depending on the
timing of the IPO.

5. Hancock said there were too many uncertainties to be able to predict whether the IPO would even
go ahead this year at all. He said he was hopeful that the Securities Law would pass in this session
of Parliament, but there were no guarantees.
Source: Reuters
OT REACHES 72.7 PERCENT COMPLETION
Ivanhoe Mines has plans to begin production at the Oyu Tolgoi copper and gold mine in September.
Preparation for the mine is reportedly 72.7 percent complete.
Providing electricity for the project remains the main challenge. In October last year, work began
on the installation of power lines along the 95 kilometers of road to the Chinese border. Ivanhoe
Mines and its parent company Rio Tinto PLC have established a fund for a 50-megawatt power
station to be built before 2015. Both companies have promised to pay 40 percent of the credit to
the fund in 2015 and the remainder in 2016.
Work first began at Oyu Tolgoi on 1 April 2010. Since then the project has received USD 5 billion in
investment. Oyu Tolgoi LLC has hired 14,760 workers, of which 6,550 are Mongolian nationals, with
3,600 participating in training programs. In addition is the construction to two ore-processing
plants. Progress on the plants has reached 73.2 percent completion. They will be able to process
10,000 tons of copper daily.
On 18 March Ivanhoe Mine's board approved a financing plan to obtain loans worth USD 4 billion for
the next phase of construction through the European Bank of Reconstruction and Development,
Exim Bank of Canada, International Finance Corporation, BNP Paribas and Standard Chartered Bank.
Source: Zuunii Medee
SHENHUA READY TO RESUME TT TALKS AFTER ELECTIONS
Shenhua Energy Co. Ltd., China's largest coal producer, expects its negotiations to invest in
Mongolia's giant Tavan Tolgoi coal mining project to restart after the country's parliamentary
elections in June, its chief executive officer said.
―Because this year is Mongolia's election year, I think we will restart our talks when the election is
over,‖ Shenhua Energy's Chief Executive Officer Ling Wen told reporters at the company's results
briefing.
Shenhua Energy is the most competitive bidder for the project given its technology, transport
infrastructure, access to the Chinese market and the backing of the Chinese government, he said.
The company's Chairman, Zhang Xiwu, added that the launch of a railway linking Inner Mongolia's
Baotou city with Mongolia later this year would give a further boost to Shenhua Energy in the race
for a piece of the project.
In July last year, the Cabinet said it would give Shenhua a 40 percent stake in Tavan Tolgoi's
western block and 24 percent to Peabody Energy Corp. of the United States. The remaining 36
percent would be given to a Mongolian-Russian consortium led by Russian Railways. But after
bidders from Japan and South Korea branded the process unfair, the Mongolian government
backpedaled and said nothing had been decided yet.
While the Tavan Tolgoi has an estimated total reserve of 6 billion tons, the western block to be
decided upon holds an estimated 1.2 billion tons. Shenhua Energy is scouring the world for other
asset buys and is in talks to buy coal mines in North America, Africa, Australia, and Indonesia, Ling
said. The company posted an 18 percent rise for 2011 net profit on higher domestic coal prices and
increased production volume. Chairman Zhang said he expected coal sales volume to reach 425
million tons this year, slightly exceeding its previous target.
Source: Reuters
CLEAN ENERGY ASIA TO EXPORT ENERGY TO JAPAN
The negative sentiment towards nuclear energy in Japan stemming from the Fukushima nuclear
plant has it interested in importing energy produced from renewable sources in Mongolia. Newcom
LLC is leading the movement toward renewable energy with its Salkhit wind farm.
―Mongolia is the closest place with renewable energy to Japan,‖ said Newcom Executive Director

6. Byambasuren, while discussing a recent trip to meet with Japanese officials. ―I talked about
research on the potentials for buying energy from Mongolia and establishing the Asian energy
transmission network.‖
To deliver the energy to Japan, Mongolia would need to install a high voltage network that could be
placed under the ocean. Byambasuren mentioned an underwater glass-cable transmitter network
that already exists and allows Mongolia to connect with the United States' Internet network.
Newcom will use wind turbines supplied by General Electric Co. for the project, due for completion
this fall. Newcom would sell its energy through its subsidiary Clean Energy Asia with its partner,
Japan's Softbank Corp. Funding will come 70 percent from the Bank of Holland and the European
Bank of Reconstruction and Development (EBRD). The executive said that the question of financing
has been fully resolved.
Source: Udriin Sonin
HARANGA ANNOUNCES IRON-ORE PROSPECTS AT SELENGE PROJECT
Iron-ore explorer Haranga Resources Ltd. has reported substantial iron mineralization and wide iron
lodes at Dund Bulag and Huiten Gol prospects within the Selenge iron-ore project. An exploration
target of 120 to 250Mt of iron-ore has been estimated for Dund Bulag.
Both prospects received minimal drilling in 2011 but will be targeted in the 2012 exploration
program. A JORC compliant resource of 32.8 metric tons at 24.4 percent iron was recently
announced at the neighboring Bayantsogt deposit. Mangentite skarn hills such as Bayantsogt and
Dund Bulag have proven amenable to low strip ration mining and simple, coarse beneficiation at
nearby Eruu Gol, Mongolia's largest iron-ore export mine.
Metallurgical testing on all mineralization at the Selenge project is underway as part of the
preliminary scoping study.
Source: Haranga Resources Ltd.
EBRD PROVIDES FINANCING FOR SALKHIT WIND FARM
The European Bank of Reconstruction and Development (EBRD) is extending a loan for the
development of Mongolia‘s first wind energy project—the Salkhit wind farm with General Electric
Co.‘s wind turbines. Mongolia‘s first wind energy project, the 50 megawatt Salkhit wind farm is
getting USD 47 million in financing from the EBRD.
Clean Energy is currently 75 percent owned by Newcom LLC and 25 percent owned by EBRD. The
bank will also take a further USD 4.4 million equity stake in Clean Energy.
―The Salkhit wind farm is a flagship project for Mongolia‘s renewable energy. It marks the dawn for
Mongolia‘s aspiration to becoming Asia‘s renewable energy champion,‖ said B. Byambasaikhan,
chief executive of Newcom.
Located about 70 kilometers away from Ulaanbaatar, Salkhit will generate enough current to
answer about 5 percent of the country‘s needs while achieving a carbon dioxide emission reduction
of approximately 164,000 metric tons annually. The wind turbines project will also generate carbon
credits that Clean Energy can sell. The site is expected to come online this year.
―We hope this transaction paves the way for increased private interest in the renewable power
sector, which can reduce Mongolia‘s dependence on coal and its carbon footprint, and will
contribute to Mongolia‘s sustainable development,‖ said Nandita Parshad, the bank‘s director for
power and energy.
Mongolia‘s current installed renewable energy capacity is around 800 megawatt. The Salkhit project
will be the first significant renewable energy generator in the country.
Source: Reuters
MIAT EXPANDS PARTNERSHIP TIES WITH KOREAN AIRLINES
Authorities of the state-owned MIAT Mongolian Airlines and Korean Airlines Co. have signed a
memorandum on widening their strategic partnership.
Korean Airlines will work to help raise MIAT's quality of service to that of an international level as
part of the latter's strategic goal to join the SkyTeam airline alliance and improve safety.

7. The companies' authorities consider air transport key to expanding the economic and commercial
development of both countries.
Source: Montsame
MONGOLIAN FIRMS AND COUNTRY ITSELF WIN BIG AT MINES AND MONEY AWARDS CEREMONY
Hunnu Coal Ltd. received the ―Deal of the Year‖ award for the acquisition of the firm by Banpu of
Thailand. Australia and Mongolia received the major awards in the first Asia Mining Awards which
honored the top executives and companies in the exploration, mining, mining finance, and
investment areas.
These awards, given on 22 March during the 5th Annual Mines and Money Hong Kong, were
nominated by the industry shortlisted by a panel of international mining. Experts and nominees
were again voted on by the industry before the winners were named.
Other winners from Mongolia include Oyu Tolgoi LLC for Project Development of the year, James
Passin of Firebird Mongolia Fund for ―Fund Manager of the Year,‖ and Robert Friedland, founder and
chief executive officer of Ivanhoe Mines Ltd. for ―Mining Personality of the Year.‖ The country
itself, Mongolia, took the title ―Mining Country of the Year.‖
Source: The Asset
MONGOLIAN MINING CORP. DEBT OFFERING ATTRACTS HUGE DEMAND
Investors continued to pile into the bond offerings by Mongolian issuers as they poured large orders
into the inaugural public debt financing by Mongolian Mining Corp. (MMC).
The Hong Kong-listed coal mining company on 22 March priced a five-year USD 600 million issue at
par with similar coupon and yield of 8.875 percent. This was at the tight end of the revised price
guidance of between 8.875 percent and nine percent, which was will inside the early guidance of
9.375 percent area.
The transaction immediately attracted strong interest from investors as it garnered a demand of
about USD 1 billion just hours after opening the books on 21 March. The final order book amounted
in excess of USD 5.5 billion from over 330 accounts with 56 percent of the bonds distributed in the
United States, and 22 percent each in Asia and Europe. By type of investors, fund managers
accounted for 75 percent, banks 11 percent, and insurance companies, private banks and others 14
percent.
MMC will use the proceeds to fund the transportation infrastructure improvement and development
projects, including its Ukhaa Khudag-Gashuun Sukhait railway projects, as well as for working
capital and other general corporate purposes, including exploration and debt refinancing.
Bank of America Merrill Lynch, ING Bank, and J.P. Morgan & Co. are the joint bookrunners for the
transaction, as well as joint lead managers together with Standard Bank and Standard Chartered
Bank. The robust demand for the MMC bonds followed a similar reception for the Development Bank
of Mongolia, which earlier last week priced a USD 580 million debt offering that attracted an order
book of USD 6.25 billion from 320 accounts.
Read more…
Moody's, which assigned a B1 rating to the bonds, considered Mongolian Mining well-positioned to
benefit from the strong outlook for Mongolian coal exports. It has large capital expenditure plans in
2012-2013 totaling USD 940 million, according to Moody's, which impacts on its liquidity profile. In
addition, it has current maturities of USD 425 million as of December 31 2011. With the debt
maturities, Mongolian Mining has recently closed a syndicated loan of up to USD 300 million to
refinance a maturing loan from Standard Bank.
Source: The Asset
XACBANK HOPING TO FOLLOW SUCCESS OF DBM AND MMC BOND OFFERINGS
XacBank is hoping to follow the success of Mongolia Mining Corp. and the Development Bank of
Mongolia, which drew 11.75 billion of demand between them, demonstrating the strong appetite for
Mongolian credits.
―Real money investors have now opened up for Mongolia, so these issuers are taking advantage of

8. this,‖ said a banker away from the deal.
The bank will meet investors in Hong Kong, Singapore, and London from Thursday and may issue a
Reg-S bond next week, depending on feedback from investors and the condition of the market. ING
Bank and UBS AG are arranging the roadshow.
XacBank's transaction will be drawn from its USD 300 million Euro Medium-term Note Program, set
up by ING and UBS last year. Bankers hope investors‘ appetite from the two recent issues will also
apply to XacBank---and will be more than enough to overcome Moody's plan to downgrade XacBank—
along with three other Mongolian lenders.
Moody's which rated the deal Ba3, placed XacBank on review for downgrade, as well as Golomt
Bank, Khan Bank, and Trade and Development Bank of Mongolia (TDB). Moody's expects XacBank to
be downgraded by one notch, bringing its rating in line with the sovereign.
The bank will use the proceeds of the bond sale for debt refinancing and general corporate
purposes, said Fitch, which has rated XacBank's proposed bond deal B.
Read more…
XacBank will be the third issuer from Mongolia this year after two other first time issuers in the
global bond market—and only the fourth Mongolian borrower to ever tap the bond market. TDB was
for a long time the only Mongolian credit to sell bonds, issuing three deals worth USD 250 million.
But Development Bank of Mongolia sold USD 580 million of bonds in the second week of March, and
Mongolian Mining Corp. (MMC) followed with its own USD 600 million deal, and origination bankers
now expect several more deals in the country.
Source: EuroWeek
IKH GOBI SEEKS UP TO USD 200 MILLION PRE-IPO
Privately-owned Mongolian coal miner Ikh Gobi Energy LLC is seeking investment of between USD
100 million and USD 200 million this year, ahead of a planned Hong Kong initial public offering (IPO)
in 2013, its chief executive announced.
―We started to look for investment just two months ago,‖ E. Chuluunbat, Chief Executive Officer of
the firm, said in Hong Kong.‖We are open for discussion and it would be either debt or equity,‖ she
said, adding that the money would be used for the company's working capital.
Ikh Gobi also planned to tap the Hong Kong IPO market to raise funds for development and would
hire investment banks at the end of this year, Chuluunbat said. The company's wholly owned
Mandakh Nuur coking coal project, 165 kilometers from the Mongolian-Chinese Hangi-Mandal
border, will start production in late July or early August.
Its key market will be China, the world's largest coal consumer, where it will compete with
SouthGobi Resources Ltd., whose Ovoot Tolgoi coal mine is about 40 kilometers from China.
The project is expected to have a deposit of 100 million tons of coal. The company plans to produce
50,000 tons of coal this year, rising to 20 million a tons a year in 2015.
Source: Reuters
PETROVIS LAUNCHES SALE OF BLOCK OF MONGOLIAN MINING SHARES
Petrovis LLC has launched a block sale of Mongolian Mining Corp. shares to raise up to HKD (USD
84.7 million). It is offering 83 million to 86 million secondary shares at HKD 7.35 to HKD 7.65 each,
representing discounts of 2.3 t0 6.1 percent to the one-day VWAP and 4 to 7.8 percent to the 10-
day VWAP. The deal size is equivalent to 2.2 to 2.3 percent of the company capital. Macquarie is
sole bookrunner and placement agent. Petrovis‗s stake in MMC of 11.3% will be reduced by 2.35% to
9.1%.
Source: International Financing Review
MAK CONTRACTS GLOBAL ENGINEER FOR COPPER PROJECT
Engineering giant WorleyParsons has won a contract to build a copper and molybdenum processing
plant at Tsagaan Suvarga.
The company said it had been awarded the engineering, procurement and construction
management contract for the Tsagaan Suvarga project operated by the largest privately-owned firm

9. in Mongolia, Mongolyn Alt Corporation (MAK).
WorleyParsons said it expected revenues of about USD 65 million from the contract, which will
involve a 14.6 million-ton-a-year copper and molybdenum concentrator, including a 280-kilometer
power line. Chief executive John Grill said WorleyParsons recently opened an office in Ulaanbaatar
and wanted to secure a long-term presence in the nation.
Source: Sky News
NEW ERDENES MGL EXECUTIVE VOWS FAIR MANAGEMENT
The recent appointment of Ya. Dolgorjav as executive director of Erdenes MGL LLC, the parent
company to Erdenes-Tavan Tolgoi LLC, may have raised eyebrows as he is not a mining professional
and is now in charge of 15 strategically important mines. However, the new executive contends
that his divergent background is perhaps an asset rather than a hindrance.
―What could popularly be seen as a disqualification is actually by biggest qualification for the job,‖
said Dolgorjav. ―True, I have never held any mining-related license or owned shares in a mining
company, and am a comparative stranger in this field. But the fact that I have no axe to grind is my
strength. I am free to put the people's interests ahead of everything else.‖
Dolgorjav has served as ambassador to Cuba, in addition to employment as a professor and
administrator at the National University of Mongolia. He has also served as committee director to
the Mongolian People's Revolutionary Party (MPRP)—now now known as the Mongolian People's
Party—and policy adviser to former President N. Ariuntuya. He pointed to his push for better
education and training for workers and directing the revenue from mining into the country's
development early on as additional factor he believes led to his appointment.
Dolgorjav said his company's immediate priorities are strengthen ties to the subsidiary companies,
update regulations so they fall more closely in line with Parliament's laws, address issues regarding
the issuance of shares of Erdenes-TT to the population.
Source: Mongolian Mining Journal
TDB REPORTS OVER 50 PERCENT GAINS IN ASSETS AND EQUITY
Trade and Development Bank of Mongolia (TDB) reported 56 percent total asset growth in its 2011
audit report.
Assets grew to MNT 2,090 billion, wrote TDB President Randolph Koppa in a letter to investors.
Equity grew 58 percent to MNT 139.4 billion and net profits increased 103 percent to MNT 42.1
billion.
Source: Trade and Development Bank
MOBICOM EXECUTIVE FINDS NEW HOME AT SKYTEL
The former chief executive of Mobicom, Mongolia's most widely available mobile phone network,
has moved to its competitor Skytel for the same position.
Skytel has hired D. Bolor as chief executive officer after nine years of work at Mobicom. The
executive said the move was partially motivated by a rotation principle the company has that
mandates that a single office holder can only hold a position for a set period of time. Bolor said he
has received an offer to work for Newcom LLC, Mobicom's parent company, to lead its renewable
energy project, but was not interested in working in another field after working 29 years in
communications.
―I received several other offers, including one to step into politics, but I prefer a creative position
that holds possibilities for development and bringing the company to a higher level,‖ said Bolor. ―I
will work at Skytel, striving to develop new possibilities for the company using principles of
honesty, business professionalism and innovation without creating any causes for conflicts of
interests.‖
Source: Udriin Sonin
PETRO MATAD APPOINTS NEW BOARD DIRECTOR
Petro Matad LLC's board has appointed Amarzul Tuul as a director.

10. ―In addition to the recent announced board changes, it gives me great pleasure to welcome Amaraa
[Amarzul], a young and talented Mongolian to the company's board of directors,‖ said the company's
chief executive officer, Douglas McGay. ―The appointment strengthens executive and management
representation on the board.‖
Amarzul has been a part of Petro Matad and its group companies from its formation since 2006,
supported the company's listing process on the Alternative Investment Market (AIM) in 2008 and was
instrumental in applying and signing production sharing contracts with the government of Mongolia
over Blocks IV and V in 2009.
As executive director of Petro Matad and its Mongolian subsidiary Capcorp Mongolia LLC, she
oversees and manages the group's operations in Mongolia including maintaining a solid relationship
with its Mongolian stakeholders, including government agencies, and serves on the group's executive
management committee.
Source: Petro Matad LLC
LEIGHTON NAMES NEW ASIA BOSS
Leighton Holdings has appointed Ian Edwards as managing director of Leighton Asia, India and
Offshore, which employs more than 11,000 people and generated revenue of 1.4 billion in 2011. In
Mongolia Leighton Asia provides mining services to projects such as Mongolia Energy Corp.'s (MEC‘s)
Khushuut and Mongolia Mining Corp.'s (MMC's) Ukhaa Khudag coal mines.
Edwards has more than 30 years of experience in the construction industry, and has been Leighton's
executive general manager for its business in Hong Kong, Macao, China, and Taiwan since 2008. He
replaces acting managing director Bob Cooke, who was appointed in August 2011 after former
Leighton Asia managing director Hamish Tyrwhitt was elevated to chief executive of Leighton
Holdings.
Source: Trading Room
FLOODING WOUNDS PEABODY'S AUSTRALIAN COAL PRODUCTION
Peabody Energy Corp., the largest U.S. coal miner and one of the potential major investors in Tavan
Tolgoi's western block, said it expects first-quarter earnings to be near the lower end of its prior
forecast as recent storms and flooding in Australia hurt production at some mines, and stopped port
and rail movements. Australia is Mongolia's top competitor for coal exports to China and overcame
in sales in 2011 due to disruptions to production after flooding in Queensland.
The company is likely to take a hit of about USD 50 million in the first quarter because of lower
production and sales volumes, as well as higher costs. Actual results may vary depending on the
pace of recovery from the flooding, it said in a statement.
St. Louis-based Peabody Energy had forecast adjusted earnings of USD 0.50 to USD 0.75 per share.
Wall Street analysts were expecting USD 0.65. The company had projected earnings of USD 500
million to USD 600 million before interest, taxes, depreciations and amortization.
Source: Reuters
AREVA PREDICTS A COMEBACK FOR NUCLEAR ENERGY
French nuclear reactor builder Areva said it expected a recovery soon in global interests in nuclear
projects following Japan's Fukushima disaster, adding it will bid this year with EDF Group for
Poland's first nuclear project. Areva currently has operations in Mongolia for uranium exploration.
Some countries announced plans to quit the nuclear industry after an earthquake and tsunami in
March last year triggered the world's worst atomic disaster in 25 years at the Fukushhima plant in
Japan.
―[The disaster] has obviously slowed down a certain number of projects but when we look now as a
global situation, we think this will pick up soon,‖ Luc Oursel, Areva's chief executive officer, told
reporters at Seoul. Except for Germany and a few others, most countries with nuclear power plants
and projects were continuing their nuclear programs, he said.
Oursel said Areva would jointly bid with French utility EDF for Poland's nuclear power plant
technology tender, expected this year. Poland aims to build a 3 gigawatt station by the early 2020s.

11. It was also engaged in talks with various utilities that were increasingly concerned about raw
material procurement, he said. Areva is the world's second-largest uranium producer, with an
output of 9,142 metric tons in 2011, according to its website.
Source: Reuters
CAMECO HOPEFUL FOR RESTART TO NUCLEAR PROGRAMS
Japan, which has taken all but one of its 54 nuclear reactors off line in the wake of the Fukushima
disaster, has not indicated that it is planning a permanent shift away from atomic power, said the
head of Cameco Corp. One of the world‘s largest publicly-traded uranium companies, Cameco owns
a small portfolio of uranium exploration projects in Mongolia through its subsidiary Cameco
Mongolia LLC.
Cameco has offered to buy excess material from Japanese utilities, but they are not selling, said
Chief Executive Tim Gitze. That has Cameco confident that Japan will bring at least a portion of its
reactor fleet back online in the near future.
―I think over the next months we'll start to see some reactors come back on,‖ said Gitzel. ―It will
be a slow process, but eventually they'll bring those back on.‖
While a few utilities have asked to defer deliveries over the last year, none have moved to reduce
their inventories, he added, noting that Cameco's Japanese partners remain committed to
developing new mines.
Japan's final operating reactor is scheduled to shut down in May and the timeline for restarts
remains unclear. Stress test results are currently being reviewed by the country's nuclear regulator;
then the government will need to green-light restarts based on public and political support.
For its part, China could have some 40 reactors online by 2015 and another by 20 or 30 in operation
by 2020, said Gitzel. With 104 reactors, the United States is the largest consumer of uranium in the
world and Cameco is the top uranium producer in the country, producing some 2.2 million pounds in
2011. That has the company eyeing more output in the United States, despite the often ―laborious‖
permitting environment.
Source: Reuters
ECONOMY
BIG OPENING FOR MONGOLIA'S ENTRANCE INTO INTERNATIONAL DEBT MARKETS
Given Mongolia had the world's fastest growing economy in 2011, it was only a matter of time
before the country sought to leverage its position as the latest global financial hotspot in order to
raise funds on the international bond markets and underpin its go-to investment status. And that
was just what happened in recent days as both Mongolian Mining Corp. (MMC) and the Development
Bank of Mongolia (DBM) tapped fixed-income investors with benchmark-sized issues.
In total, the landmark MMC offering attracted USD 5.5 billion of orders from over 330 accounts.
The euphoric reception of MMC's pioneering corporate issue mirrored the frenzied buying that
surrounded the USD 589 million, 5.75 percent, March 2017 bond issued by the Development Bank of
Mongolia on 14 March. DBM‘s offering attracted a total of USD 6.6 billion of orders. The State-
guaranteed DBM, established in 2010, is a government-controlled development bank that sees itself
as a poster child for the Mongolian economy, which grew by 17.3 percent in real terms in 2011.
That rampant growth was fueled by its position of a prime supplier of basic commodities to China,
which enabled it to attract a record USD 3.8 billion in foreign direct investment (FDI) in 2011.
The DBM was marketed as a key player in Mongolia's emergence from economic zero to hero, with
the policy institution viewed as a prime driver in the country's efforts to drive forward its industrial
and social infrastructure development, which is forecast to cost at least USD 25 billion in the
current decade. This will involve the construction of at least 100,000 affordable apartments plus
the building of new rails, road, and energy projects.
According to Dosbergen Musaev, chief economist at investment bank Eurasia Capital, the DBM will
have to pull from the international debt markets again and become a frequent issuer to meet the

12. financial needs of infrastructure funding. He also believes that foreign investors are likely to look
more favorably on local bond issues in Mongolia now that there is offshore benchmark issuance.
Source: Business News Europe
UB TO INVEST MORE IN PUBLIC TRANSPORTATION
Ulaanbaatar will divert the bulk of investment to develop its transportation sector, the city‘s mayor
said Friday.
The city‘s new development plan outlined some 115 projects to be finished by 2030 and these
projects require a total investment of nearly USD 9.9 billion, said G. Munkhbayar, Ulaanbaatar‘s
mayor at a forum jointly hosted by his office and the Asian Development Bank (ADB). The main
purpose of the forum was to introduce some high priority projects and discuss the legal
environment for investment, said Munkhbayar.
Robert Shoelhammer, the ADB‘s mission director, said the ADB would help the city modernize its
public transport system and the development of its vast ger areas, where municipal services such as
heating and power supply are hard to get. These districts are home to some 60 percent of
Ulaanbaatar‘s residents.
According to the latest official statistics, over 1.2 million people, or 42.7 percent of the country‘s
total population, are living in Ulaanbaatar, and 48.6 percent of Mongolia‘s gross domestic product
(GDP) is generated by the city. However, the mega city is also troubled with thorny problems such
as traffic congestion, air pollution, and a lack of infrastructure.
Source: Xinhuanet
MONGOLIA, CHINA EXTEND CURRENCY SWAP AGREEMENT
The People's Bank of China (PBOC), the country's central bank, announced Wednesday that it has
signed supplementary currency swap agreements with the Bank of Mongolia, doubling the scale of a
2011 bilateral swap deal.
The supplementary currency swap agreement allows the two central banks to swap CNY 10 billion to
MNT 2 trillion (USD 1.6 billion) compared to CNY 5 billion to MNT 1 trillion agreed in 2011. Both
sides believe the extension will help maintain regional financial stability and facilitate bilateral
trade and investment between China and Mongolia.
Since the onset of the global financial crisis in late 2008, China has signed currency swap
agreements totaling CNY 1.3 trillion with 16 countries and regions, including the South Korea, Hong
Kong, Belarus and Argentina, to reduce the use of the U.S. dollar in bilateral trade settlement and
investment.
Source: Xinhuanet
EURASIA CAPITAL EXECUTIVE SEES MONGOLIA WITH WORLD'S TOP GROWTH IN 2012
Mongolia could be the fastest growing economy in the world this year, with gross domestic product
expanding 20 percent, according to Alisher Ali, managing partner at Silk Road Management.
―You're starting from a low base so even if commodity prices go down, the increase in output will
still allow Mongolia to be the fastest growing economy,‖ Ali told CNBC, whose firm manages a USD
30 million fund invested in various asset classes in Mongolia, including public and private equity,
and property.
He added that a slowdown in China would not dent Mongolia's growth trajectory because Beijing will
seek long-term resource supply deals from its neighbor.
Ali expects the benchmark MSE Top 20 Index to gain 30 percent in 2012. His top stock pick is
Mongolia Mining Corporation (MMC), which is the country's largest coking coal producer with
deposits located along the Chinese border.
Source: CNBC
MINING SECTOR CONTRIBUTES 56.7 PERCENT TO STATE BUDGET REVENUE
Mongolia's mining sector contributed 56.7 percent to Mongolia's state budget revenue last year,
amounting to MNT 2.2 trillion.

13. Mongolia has some 280 mining firms, with only about 150 active and paying taxes, comprising 0.4
percent of all taxpayers in the country. Comparatively, in 2008 mining firms had made up 30
percent of the state budget through taxes.
Meanwhile debt has grown to USD 9 billion over the last three years, said economist B. Oyubilegt.
Some economists suspect that the taxes paid by miners have been misappropriated.
Source: Zuunii Medee
MINING INTERESTS CROWD OUT TOURISM INDUSTRY
In recent years, mining has eclipsed tourism as an engine for growth in Mongolia.
―Traditionally, [agriculture] was always tourism's main competitor, but now it's mining,‖ Indraa
Bold, the director of the Mongolian National Tourism Organization (MNTO), a lobbying organization.
In 2004 tourism accounted for 13.4 percent of the country's gross domestic product (GDP). Though
the government says tourism still accounts for approximately 10 percent of Mongolia‘s GDP, that
number is falling. The mining sector's portion of GDP, meanwhile, is about 30 percent and rising,
according to Resource Investment Capital, an investment banking boutique based in Ulaanbaatar.
He said mining companies have acquired land-use rights in several places of historic interest,
including the Bitchigt Khad Valley, which is celebrated for its petroglyphs, the Darkhad Valley,
famous for its shamans and stunning landscape, and religious importance.
Industry insiders say competition for human resources has had a significant impact on tourism. Ts.
Enebish, who operates Tseren Tours, said she had lost five of her employees, as soon as they had
become competent and skilled, to the mining industry. Hospitality and transport services are also
increasingly catering to mining interests as high-class hotel cluster in Ulaanbaatar, with no benefit
to the countryside.
One thing that skews tourism data is the fact that many foreigners traveling to Mongolia ostensibly
to pursue business opportunities enter the country on tourist visas. Government figures state
457,514 tourists arrived in the country in 2011; 43 percent were Chinese and mostly entrepreneurs.
Some tourism operators contend that mining has little influence while others such as G. Damba
from Sustainable Tourism development Center, a local non-government organization, are taking a
wait and see approach.
―Mongolia is big enough [for both mining and tourism] at the moment, but with land protection laws
still weak, this can be easily reversed,‖ said Damba. What Mongolia requires is clear zoning policies
where mining can develop and where locals have the right to retain land-use rights to preserve their
[nomadic] heritage—the real tourism product of Mongolia.‖
Source: Eurasianet
LOCAL PRODUCERS REACH FOR FOREIGN MARKETS
USAID has made headway providing new opportunities for local producers to send their products
abroad for export.
Officials recently visited Arkhangai Aimag to see examples of what impact its aid has made in rural
regions. From 1991 to 2011 the U.S. organization has provided more than USD 222 million of
investment. Its main goals are to establish good governance and ensure economic growth in the
private sector.
One benefit has been the added value of yak fur, which has become more profitable than
cashmere. Just three years ago, herders who were all too happy to sell one kilogram of yak fur for
MNT 1,800 today sell that same product for MNT 5,000. Yak fur has a similar quality to that of
cashmere and in some aspects is even better.
Herders have formed the Union of Regional Herders to sell their products to countries such as
France and the United States. The cooperative has been successful in exporting one kilogram of
partially processed yak's fur from EUR 28 (USD 37) to EUR 36, and 100 grams of thread made from
yak hair for EUR 8.80. Another cooperative based in Uliastai Soum, Zavkhan Aimag has specialized
in the production of felt products such as deels (a traditional Mongolian robe), waistcoats, slippers,
comforters, and small carpets as souvenirs since 2003 but now hopes to export to Japan, Finland
and Switzerland.

14. Source: Unuudur
STUDENTS LOOK ABROAD FOR EDUCATION AS JOB MARKET GROWS MORE SPECIALIZED
The number of Mongolian students given the opportunity to study abroad grew by 10 percent
compared with the year prior, said a specialist at the Ministry of Education, Culture and Science
(MECS).
Seventy-four more students were able to study abroad than the year before, bringing the total to
806 students sent to 16 countries. More students were able to study as more students received
scholarships from China, Russia and Turkey. India permitted 20 more scholarships that last year,
totaling 50, and next year Ukraine plans to host 20 students, according to the MECS's website.
Some schools have adjusted their requirements for scholarships, giving preference to students with
relevant background to the country they would study in, said Ch. Shinebayar, a senior specialist at
the MECS. For example, Turkey is now targeting students who have studied at Mongolian-Turkish
schools, while Russia and China now call for students to have studied at language preparation
centers within the country in question. In the past students have chosen studies in the fields of
international relations, economics, and medicine, but now schools are asking that students choose
different studies.
While student with backgrounds in medicine have reportedly had no problems finding employment,
graduates with backgrounds in economics, business, and law are over-saturating the job market as
Mongolia provides educations in these areas. However, there are increasingly more jobs opening up
that Mongolia cannot provide an education for, including bio and nano-technology, in addition to
civil, electrical, and mechanical engineering. Statistics show that more than 70 percent of all
scholarship applications are for studies in these areas. Meanwhile studies in areas such as
agriculture receive only a handful of applicants.
Host countries typically provide free tuition and stipends to cover room and board. Students are
typically expected to manage expenses for travel and health insurance themselves.
Source: Zuunii Medee
MONGOL BANK TO INTRODUCE NATIONAL CARD SERVICE
The Central Bank has announced a national brand for card services that it expects will overtake the
market for card services, pushing aside the international brands Visa and MasterCard.
Trade and Development Bank of Mongolia (TDB) will be the first to distribute cards backed by the
new brand, T, with plans to release them in April. Several steps will be needed for the government
to fully introduce the cards to government organizations, said J. Tsogtsaikhan, including
demonstrations on how to use the card for informational services at the General Police Department.
Officials have also discussed how the cards could be used for the distribution of the Human
Development Fund (HDF) using these cards. The Bank of Mongolia has implemented a policy on the
usage of the card for government services, including for pensions payments and benefits, in
addition to payments to shareholders of Erdenes-Tavan Tolgoi. However, it will be up to
commercial banks to distribute the cards, not the central bank. The central bank will only be
responsible for maintaining policies and regulations.
Officials believe these cards will be able to overtake international cards as they require additional
fees to banks abroad. Using these cards will direct surcharges to domestic banks. It will be up to
commercial banks to decide on the fees for card use with ATMs.
Last year statistics showed that even those who receive their salaries through direct deposit to their
bank accounts preferred to pull cash from banks to use at stores. Officials believe these new cards
will increase the number of payments made through cards, which would create more records for
money received by companies and prevent them from avoiding tax payments.
Source: Undesnii Shuudan
CITY GOVERNMENT PLANS FOR NEW PUBLIC TRANSPORTATION NETWORK
A project to provide greater public transportation services to Ulaanbaatar would add isolated tracks
for buses to avoid public traffic.

15. The city government has planned for the project to complete within seven to 10 years, said official
Kh. Bulga. It would cost USD 272.9 million, with USD 215.9 million financed through investment
from the Asian Development Bank, and USD 57 million from the government.
The first phase of the project would introduce 7.7 kilometers of special tracks between 2012 and
214 from Peace Bridge, with an additional 14 kilometers of tracks down a second line. The next
stage would begin in 2015 and a third between 2014 and 2016 to introduce even more tracks, said
the official.
The public transport lines would be separate from public motor traffic so buses could stay on
schedule. Citizens would pay MNT 400 without worrying about traffic and making their destinations
on time, said Bulga.
Source: Zuunii Medee
INVESTORS NEED TO GET GOING WHILE THE GOING IS GOOD
The window for cheap valuations may be nearing its close, said Frontier Securities' founder and
chief executive. The political uncertainty leading up to June's elections has opened up opportunity
for making good before prices jump when things cool down following the elections.
―There may still be political uncertainty in Mongolia before the elections but one thing is certain: if
you're thinking of buying a Mongolian investment opportunity, better consider doing it now while
valuations are still cheap,‖ said Masa Igata, Frontier Securities' chief executive officer. ―It is clear
that after any election euphoria, investors and hot money will rush into the country.
This could only be the beginning the source noted. The investment firm feels that while some worry
about issues such as resource nationalism in upcoming elections, Mongolia has a level head on the
situation.
―Politicians are bright. ―They know how to balance. They know how to manage.‖ said Frontier
Securities' Chief Market Strategist, Dale Choi.
He added that Mongolia is also becoming more aware of its strategic relevance to nations such as
the United States, Japan and South Korea, due to its geographical positioning between Russia and
China.
Source: Frontier Securities
AUSTRALIA, CANADA, AND CHILE REMAIN TOP MINING DESTINATIONS
Australia, Canada and Chile have remained the top resource investment destinations, while Russia,
Bolivia, at the Democratic Republic of Congo and Papua New Guinea fell to the lowest rated
countries of the 25 considered in minerals industry adviser Behr Dolbear's yearly ranking. Behre
Dolbear reported that the top and lowest ranked countries saw little movement during the year,
however, there was substantial movement in the middle of the ranks, with Mongolia falling two
places to 12th place.
China and Mongolia fell by three and two points respectively, which resulted in China dropping from
thirteenth place last year, to seventeenth this year. Mongolia fell from tenth place to twelfth
place.
Behre Dolbear rates countries on their economic and political systems, social issues, permitting
delays, corruption, currency stability and tax regime. Meanwhile, the advisory firm stated that the
initial resurgence in mineral consumption during the first half of 2011 appeared to have abated,
with mineral prices and demand both retreating from recent highs. However, producers were still
cautiously expanding capacity to meet the expected growing demand from the emerging market
consumers. Competition for minerals resources would make those countries perceived to have the
lowest political risk able to attract a significant portion of global mineral investment, as well as
receive a premium for their resources over countries with perceived instability exists.
The outlook for 2012 remained uncertain, mostly owing to the ―band-aid‖ approach the European
Union was using to resolve the debt problems in Greece, Portugal, Spain and Italy. Behre Dolbear
noted that this uncertainty had impacted commodity prices since austerity measures or a collapse
of the euro as a currency would have potentially serious impacts on the marginal global demand for
minerals. Similarly, should fears of a ―hand landing‖ come true in China, that would also devastate

16. global commodity demand, the firm said.
Source: Mining Weekly
CHINA MAKES PLANS FOR GREATER RELIANCE ON COAL IMPORTS
China plans to raise its coal output by 11 percent over four years to 3.9 billion tons by 2015, the
country's top economic planner said, a figure that is likely to increase its reliance on imports.
Mongolia is China's top importer of coal with heavy supply to come from Tavan Tolgoi once rail lines
have been put in place.
China is the world's largest producer and importer of coal and the modest production target implies
a deceleration in growth to around 2 percent a year over the next four years, compared with
growth rates of above 10 percent a year.
China aims to have 4.1 billion tons of coal production capacity in 2015. Coal transportation via rail
is also seen reaching 2.6 billion tons that same year to prevent infrastructure bottlenecks. China,
which produced 3.52 billion tons of coal in 2011, has proven coal reserves of 3 trillion tons and
consumed some 3.7 billion tons of the resource last year. It imported a total of 182.4 million tons of
coal last year, with next imports of 167.7 million tons.
The plan also aims to improve energy efficiency and curb coal consumption in an attempt to reduce
pollution, which is among the worst in the world. But it stopped short of setting a hard target,
saying ―it would be appropriate‖ to cap coal consumption at 3.9 billion tons by 2015.
Source: Mining Weekly
DRAG ON DEBT
Although remote and often times a place where life feels cut off from a lot of the world, Mongolia
cannot escape the debt issues that are plaguing the rest of the world. Slow global growth creates a
chain reaction that hits China when export demand wanes, and inevitably Mongolia when China's
demand for metals and fuels weakens. Investors will have to learn to navigate the current
atmosphere as best they can to come up ahead, explained Nicos Cotsapas of Elgin Group LLC at a
seminar held this week at the Blue Sky Tower, because all signs seem to indicate that more time
must pass before economic recovery can come.
―Debt is good because governments need to provide services, corporations need to grow, and
households need to borrow. But too much is a problem,‖ said Cotsapas.
Eighteen of the Organization for Economic Cooperation and Development (OECD) countries have a
300 percent debt to gross domestic product ratio, he said. The picture only gets worse when you
add financial debt from the banking sector to the equation. Although governments recommend
austerity, it hinders growth and the private sector is not in a position to do it on its own.
Emerging markets can help and are already experiencing 80 percent of the world‘s growth.
Cotsapas added that China alone, Mongolia's number one importer of its commodities, accounts for
24 percent of that growth. However China is entering the stage of ―middle-age‖ where the easy
steps for growth and development are behind it, said Cotsapas. It has high investment that
represents 50 percent of its total GDP and spends vast sums on research and development, but it
must develop its domestic market and allocate capital and labor efficiently.
Moving forward investors will have to be wary of forecasts as they have all proven untrustworthy.
Very few predicted the 2008 global recession, and those voices that did went unheard. Even
Goldman Sachs Inc., known for recruiting only the best educated and most competent was way off
the mark, Cotsapas said. A debate continues over whether China is currently experiencing a ―hard
landing‖ and how that might affect Mongolia, but caution may be the best strategy for the next few
years.
Source: BCM
CHINA CLOUD FOGS MINERS' WAY
Slowing Chinese growth is a worry for investors, for major mining companies, it is a potential game
changer.
China's support for the mining industry has become a familiar story: Its share of global seaborne

17. iron-ore demand is likely to have reached 66 percent last year, having doubled since 2004. But if
Beijing proves unable to handle the economic and political challenges China faces, some miners
may have to rethink their investment plans.
Miners are dampening expectations already, as China moves to a less investment-driven growth
phase. BHP Billiton, which with Rio Tinto PLC and Vale account for about 70 percent of global iron-
ore output, expects 4.4 percent compound annual growth in global seaborne demand from 2010 to
2020, down from 8.4 percent over the previous decade. That still implies annual shipments, more
than one billion tons now, rising by 60 million tons on average each year. That seemingly justifies
miners' current expansion plans.
But these investment decisions are becoming less clear-cut. The outer harbor investment could
generate a 14.1 percent internal rate of return, just under the 15 percent rate that mining
companies usually aim for. But if capital spending overruns by 20 percent, the expected return
could fall to 12.6 percent. And if iron-ore prices fall 20 percent below their USD 75 a ton long-run
forecast, the return could slip to 10.9 percent—just above BHP's estimated 8.9 percent cost of
capital.
With spot iron-ore prices now about USD 145 a ton, such a price drop may look far-fetched. But
given the recent political unrest in Beijing, it may be equally far-fetched to expect China's economy
not to falter over the next decade too.
Source: Wall Street Journal
CHINA'S FOREX MARKETS SHOW SIGNS OF HOT MONEY VULNERABILITY
Traders in China's foreign-exchange markets are reporting two weeks of yuan selling—suggesting
capital exiting the country. Calculations based on data from the central bank suggest hot money
leaving China in four of the last five months, with more than CNY 200 billion (USD 31.7 billion)
heading for the door.
Diminished expectations for yuan appreciation are a big part of the picture. The central bank set
the yuan at a record high against the dollar Friday and Monday. Despite that, the Chinese currency
has registered only a 0.2 percent gain against the greenback in the first quarter. That compares
with 5.1 percent appreciation in 2011. With little hope for easy gains on the exchange rate,
speculative capital is heading for the exit.
Policy implications include an exodus of funds from China's financial system that threatens to starve
banks of liquidity. Moves to increase the flexibility of China's exchange-rate regime could be below
the daily fixing. The central bank wants to widen that hand to allow greater two-way flexibility,
discouraging investors from taking one-way bets on yuan appreciation by bring speculative capital in
the country.
But China's central bank still lives in the long shadow of the Asian financial crisis, when sudden
outflows of capital brought neighboring countries to their knees. Widening the band at a time when
speculative capital is already heading for the door could trigger even great yuan-selling pressure.
Source: Wall Street Journal
RUSSIAN ECONOMY SLOW TO RECOVER, WORLD BANK SAYS
Mongolia's neighbor to the north, Russia, is rebounding from the global recession more slowly than
other developing countries despite high oil prices, according to a report Tuesday by the World Bank
that hints at problems awaiting Vladimir Putin as he assumes his third term as president. Mongolia
has many trade relations with Russia and is heavily dependent on its oil exports.
A number of factors are weakening the Russian economy, the World Bank said: the aging
population, unproductive workers, and business executives who are reluctant to invest over the
long term, fearful of risk in general but with specific concerns about Russia. The report calls low
capital investment a particular concern. High oil prices have obscured these economic
vulnerabilities. Russia had a budget surplus equivalent to 0.8 percent of gross domestic product
(GDP) last year.
"On a closer examination, the country's economic situation reveals a number of weaknesses," Kaspar
Richter, the bank's chief economist for Russia, said about the report, a quarterly analysis of the

18. Russian economy.
The bank estimated that Russian economic growth would slow from 4.3 percent last year to 3.5
percent this year, before picking up slightly in 2013. Russia's public finances appear robust
compared with ailing European neighbors, however. Its public sector debt is only 10 percent of its
GDP, compared with more than 100 percent for many European states.
The slower growth has brought added risk for Russia. Increases in public-sector spending since 2008
helped buoy the economy but also increased the risks of budget deficits if oil prices decline. That is
now looking more likely as worries of war in Iran fade.
Government welfare spending accounted for 11 percent of Russian household incomes in 2007; by
2011 government spending made up 18 percent. Such benefits for the population are extraordinarily
difficult to reverse without dire political consequence. The added spending kept the poverty rate,
at about 13 percent of the population, level over the past four years despite high food inflation, the
bank noted.
Source: New York Times
POLITICS
RUSSIAN INVESTOR BALKS AT NEW RAILROAD CONTRACT FOR TT
Problems with developing a new jointly-owned Mongolia-Russia railroad company have further
complicated the selection process to the Tavan Tolgoi-West block's investor selection.
Minister Ts. Dashdorj of the Ministry of Road Transportation, Construction and Urban Development
(MRTCUD) proposed the creation of the state-owned firm, Mongolian Infrastructure Development, at
a Cabinet meeting this week. The Cabinet decided it would go forward in creating that state-owned
company which would own at least 51 percent of the railway-base structure.
The Minister of Transportation has been allocated MNT 518 million from the state fund for the
company's joint stock and to issue a credit guarantee of MNT 399 billion for the Development Bank
of Mongolia to finance the New Railway Project.
However, Mongolia's Russian partner has apparently balked at the change. The head of the state
secretariat, Ch. Khurelbaatar, said a contract concerning a proposed new rail company, which
would be used to permit the construction of a new rail line from Tavan Tolgoi to the planned
Sainshand Industrial Complex, has created objections within a Mongolian-Russian consortium.
The Russian party complained they had already agreed to an earlier contract drawn up by MRTCUD.
They objected in particular to having 51 percent of the interest in the railroad line, which passes
through Russia, given to the Mongolian government, with the remainder allocated to the strategic
investors. Former Minister of the MRTCU Kh. Battulga had the new contract drawn up without
alerting government officials, but any actions made to have a new contract signed prior to approval
from the Cabinet would have been illegal, as this is such a large deal concerning a strategic
location, said Khurelbaatar.
Khurelbaatar said he had seen the contract and it would be released to the public in due time.
Source: UB Post, Montsame
FORMER POLICE OFFICIALS ARRESTED FOR DEATHS IN 2008 RIOTS
Three former top officials have been arrested for investigation of allegedly ordering the shooting of
protesters during post-election riots nearly four years ago.
The Sukhbaatar district court in Ulaanbaatar has ordered the police officers to be put into a
detention center and stand trial soon for their alleged role in ordering the shooting to death of four
protesters during riots in July 2008, in the wake of parliamentary elections in the country.
The reports said families and some police officers were protesting the detention of the three
officials—Ch. Amarbold, major general and former chief of the Mongolian police force, O. Zorigt,
colonel and former chief of the Ulaanbaatar police force, and Sh. Batsukh, colonel and chief of the
police patrol unit. On 1 July 2008, thousands of people took to the street in central Ulaanbaatar to
protest alleged election fraud. The building housing the headquarters of the ruling Mongolian

19. People's Party (MPP) was burned down and vandalized.
After the riots four protesters were found dead with bullet wounds and police were blamed for
having used live ammunition to disperse the crowds. The case has polarized society, with some
people criticizing authorities for orchestrating the trial of the police officials who were only
following orders from above.
Former Prime Minister S. Bayar has accused Ts. Elbegdorj, the then chairman of the opposition
Democratic Party (DP), of ―instigating the riot and misleading the people.‖
The officials in detention denied they had ordered the shooting and insisted no live ammunition was
given to the police during the crackdown.
Source: Xinhuanet
MONGOL BANK LOANS MNT 60 BILLION TO SUPPLEMENT HUMAN DEVELOPMENT FUND
The Finance Minister has informed the press that it has taken out a loan of MNT 60 billion to ensure
that the Human Development Fund (HDF) has enough money to continue making payments to
citizens.
The government has used the HDF to pay for its MNT 21,000 a month allowances to make good on
election promises. However worries over reports from economists that the HDF did not have enough
money to continue these payments grew worse this month when banks were late to receive the
payments. The chief cause for the shortage of funds seemed to be due to the government's inability
to collect on an upfront payment from investors to the Tavan Tolgoi-West block project as the final
selection of investors had not yet been finalized.
―Financing to the Human Development Fund slowed down this month, so we had to pay attention to
the funds available,‖ said Minister of Finance D. Khayankhyarvaa. ―We took several steps, including
a loan and an advance fee.‖
He said Parliament approved Resolutions 39, 53 and 57, all related to the issuance of shares from
Erdenes-Tavan Tolgoi and MNT 1 million allowances. The first priority is the allowances due to the
elderly and disabled, totaling MNT 334 billion, said Khayankhyarvaa. However, the government has
still not decided exactly how much it will disperse to these recipients.
Source: Undesnii Shuudan
CONSTITUTIONAL COURT CHALLENGES NEW ELECTION LAW
All political parties in Mongolia are now busy selecting candidates for the parliamentary elections
scheduled for the third week in June, which some reports say will be set for June 24.
This is the first time Mongolians go to the polls under the new election system adopted by
Parliament in December 2011. Voters will cast two ballots: one for candidates in each of the 48
direct-election constituencies and a second to fill 28 seats by voting for party lists.
A court challenge to the election reform law has been filed by one of the smaller parties that
argues the Mongolian constitution requires direct elections and that party list voting would require
a constitutional amendment. This week the Constitutional Court returned the whole law to
Parliament for reconsideration. Parliament has 15 days to review the Constitutional Court‘s
objections to the law. Parliament can accept the Court‘s objections and change the law, reject the
objections and keep the law as it is, or revert to the previous law. If Parliament rejects the Court‘s
objections, the Court will then reconvene and rehear the matter and their ultimate decision will be
final.
In a separate development, the General Election Commission awarded a contract for new election
voting and counting equipment and software to Dominion Voting Systems of Canada.
Source: NAMBC; BCM
PARLIAMENT TO CONSIDER AMENDMENT TO VAT TAX
The Cabinet has pushed forward a new amendment to the Law on Value-added Tax for
consideration by Parliament.
The draft will mandate a tax to any individual or enterprise with an income that exceeds MNT 50
million a year. Any entity below the minimum income of MNT 50 million will be taxed just 1

20. percent. At the meeting, the Ministry of Finance also proposed an exemption to the tax to imported
lumber products and semi-manufactured wood as wood factories are in urgent need of raw
materials.
Source: CPS International
CAMBRIDGE SYSTEM TO LAUNCH IN SCHOOLS IN APRIL
Thirty-one schools will begin implementing standards from the University of Cambridge
International Examinations (CIE) beginning next week. Prime Minister S. Batbold initiated a shift in
the Mongolian education system to the CIE system about two years ago. Currently the secondary
schools Shine Erin, Shine Ehlel, and Mongol Temuulel adhere to CIE standards.
A newly reworked form of CIE for Mongolian children will begin testing at one school in each
province and 10 schools in Ulaanbaatar beginning 5 April. Over 300 teachers have taken part in a
five-day training program held at Shine Erin Secondary School with overview from educational
experts.
―During the last century, we successfully introduced a Russian education system for our country,‖
said S. Batbold during a visit to a school on 26 March. ―Our dream to domesticate a world education
program and standards to our country is starting to be implemented in real life. Whether CIE is
going to be implemented in Mongolia will depend on Mongolian teachers, so training is essential.‖
Beginning 5 April children from the fifth, sixth, ninth, and tenth grades will enter the new
programs. On 1 September children from all grades will be taught under the CIE system. As one
teacher said, the difference lies in the methodology teacher‘s use.
The CIE is the world's largest provider of international education programs and qualifications for
students between the ages 5 and 19. These standards have been implemented in over 160 countries
and recognized by universities, education providers, and employers across the world.
Source: UB Post
NATO APPROVES PARTNERSHIP AGREEMENT WITH MONGOLIA FOR DEFENSE
The North Atlantic Council of NATO has formally approved an individual partnership and cooperation
program with Mongolia. This formalizes and further develops relations, building on existing
operational cooperation with Afghanistan and, earlier, in Kosovo.
NATO's partnership with Mongolia aims to promote common understanding through consultation and
cooperation. It is based on a shared commitment to peace, democracy, human rights, rule of law
and international security.
―NATO attaches great importance to our partnership with Mongolia,‖ James Appathurai, an official
for political affairs and security policy. ―Mongolia's contributions to alliance efforts in Afghanistan
and past operations in Kosovo are very welcome, and show Mongolia's intent and capability to
contribute to international peace and security.‖
Mongolia is keen to enhance interoperability with the forces of NATO member and partner
countries, further developing its capacity to support multilateral peace-support efforts. Other
important objectives for Mongolia include addressing common enduring and emerging security
challenges—such as terrorism, proliferation and cyber defense—as well as developing mechanisms
for crisis prevention and management.
In Afghanistan Mongolia has contributed to the United States-led counter terrorism operation in
Afghanistan, Operation Enduring Freedom, since 2003 and 156 Mongolian soldiers are currently
serving under this operation. Since 2003, a total of 1,309 soldiers (including current deployments)
have served under the NATO-led International Security Assistance Force (ISAF).
Source: NATO
CORRUPTION PREVAILS IN MONGOLIAN POLITICS
Mongolia seems to be succeeding at creating the legal environment to tame corruption, but laws
and agencies will be powerless in the absence of political will and interest to clean up the
Mongolian public service before massive mining revenues appear from 2013.
Mongolia regressed again in the Transparency International Corruption Perception Index, falling

21. from 116 to 120 in 2011. It was 43 in 1999. It seems laws are powerless without political will and
commitment. Parliament may not be ready to fight against corruption but ready, albeit reluctantly,
to approve the laws with lesser penalty and potential execution.
Two examples would be the Law on Anti-Corruption and the Law on Conflicts of Interests. Both laws
were passed by Parliament but only a handful of members pushed for their passage. The former
established the Anti-Corruption Agency, but looking carefully at the laws shows that legislators did
not want to give law enforcement powers to this organization. It looks like a corruption study think
tank to develop a corruption index, policies, programs, and to do analysis. Any non-governmental
organization (NGO) can do the research and indexing. Let this agency conduct independent criminal
investigations and eradicate corrupted officials from public service.
The second law was indeed a success because this was the first time Mongolia succeeded, on paper,
at disconnecting business and political interests. The initial bill was intended to be valid from 15
July 2012, but the president vetoed that date and suggested implementing the law before upcoming
parliamentary elections in June. They also changed the title of members of Parliament from public
servants to state servants.
The positive note is that Mongolians freely criticize the government, but sadly public officials are
not responsible or reactive to public inquiry and for their actions. Some politicians may be just
waiting for the good time to bust his or her opponents. The only way forward is to give more power
to government law enforcement agencies and judiciary rather than politicizing them.
Professionalism must succeed populism and corruption.
Source: University of British Columbia
UNITED NATIONS CALLS FOR GREATER SUPPORT TO REINDEER HERDERS
Urgent action is needed to support Mongolia's reindeer herders and protect them from unregulated
mining, logging, water pollution, and climate change, among other threats, according to a report by
a U.N. environmental agency.
A report by the U.N. Environment Program (UNEP) found that many herders have abandoned
pastures because of damages caused by unregulated, small-scale artisanal mining of gold and jade,
which leads to deforestation, forest fires, chemical contamination and poisoning of water sources.
The report assesses the current living situation of Mongolia's reindeer herder community, the
Dukha, of which only some 200 members remain, and explores ways to guarantee their livelihoods,
as well as of preserving the ecosystem in which they live in.
The challenges faced by the herders reflect challenges faced by communities across the world,
which are seeking to transition to a sustainable future that generates jobs and livelihoods while still
protecting the environment. For Mongolia the transition to a market economy in the 1990s resulted
in eight million livestock added to its pastures, significantly affecting traditional herding practices.
In addition, certain measures to conserve biodiversity in the region, such as the creation of national
parks and stricter hunting laws, have limited access to pastures and affected herding communities
negatively since their subsistence depends on trapping wild animals. Droughts and extreme winters
have also led to widespread livestock deaths.
Other activities such as tourism have been both beneficial and detrimental for the Dukha
community, the report says, as it provides herders with incomes and alternative ways to participate
in the market economy. However, herders have altered reindeer migration routes to accommodate
tourists, forcing animals to graze on pastures of poorer quality and limited their ability to increase
the herd size.
Source: United Nations

22. NEW MONGOLIAN LAWS
The following laws, annulments, amendments and addenda to laws were published in the latest
weekly Government bulletin. Unless otherwise decided by Parliament, they will take effect ten (10)
days after publication.
Date Laws
21.03.2012 Law on Court of Mongolia
Annulment of Law on Court of Mongolia
Addendum to Law on International Agreement
Amendments to Law on Prosecutor Organization
Law on Judge Legal Status
Law on Lawyer Legal Status
Annulment of Law on Advocacy
Annulment of Law on Lawyer Selection
Annulment of Some Provisions of Law on Special Permits for Economic Entity
Activity
Amendments to Law on Administrative Case Settlement
Amendments to Law on 2012 Budget of Mongolia
Amendments to Law on 2012 Budget of Social Insurance Fund
Amendments to Law on Budget
Amendments to Law on Regulation of Public and Private Interest, Prevention from
Interest Conflict in Public Service
Addendum to Law on Pension, Allowance Provided from the Social Insurance Fund
Addendum to Law on the Regulation on Usage of Laws on Social Insurance
Please visit BCM's website, Legislative Working Group, for a summary of new Mongolian laws. BCM
members who wish to access complete versions of the laws and regulations in Mongolian language
are welcome to email the BCM office: info@bcmongolia.org.
ANNOUNCEMENTS
RUNGE'S MINING FOR NON-MINERS COURSE, 2-3 APRIL
Runge is offering its fourth Mining for Non-Miners course from 2 to 3 April in Ulaanbaatar.
The world-class mining-consulting software company, Runge, has been holding its training course,
Mining for Non-Miners, since last year after establishing its office in Ulaanbaatar. The aim of the
course is to provide those from a non-mining background with a comprehensive introductory
understanding of the mining sector.
The course duration is two days, with the first day focused on coal mining and the second on
metals. Click here for the full schedule. The Runge staff features featuring both expatriate and
local national staff.
Runge is holding classes for USD 700 per student for the two-day course. The number of participants
is limited with just 1 or 2 seats left. For more information or registration email
saruul@bcmongolia.org, or call 317027.
___________________________________________
REGISTERING 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

23. investors.
BCM welcomes everybody who is interested in advertising their products and services in Mongolian
Mining Directory-2013 to Mongolian mining industry participants. For more information please visit:
www.mining.mn, www.mongolianminingdirectory.mn or call +976-7011 5590.
___________________________________________
REGISTER BEFORE 6 APRIL TO COALTRANS MONGOLIA FOR USD 150 SAVINGS
The second Coaltrans Mongolia Forum will be held 23 to 24 May at the Chinggis Khan Hotel in
Ulaanbaatar. Those who register before 6 April will save up to USD 150.
With public offerings such as Erdenes-Tavan Tolgoi JSC expected this year, questions are arising
concerning the availability of capital in the current economic climate. Mongolia has a range of
projects that require financing, but what is the risk appetite of banks at the international and
domestic levels.
Guest speakers will include Graeme Hancock, chief operating officer of Erdenes-Tavan Tolgoi and
G. Battsengel, chief executive officer of Mongolian Mining Corp.
BCM is pleased to again be a Supporting Organization for Coaltrans Mongolia.
For more information visit coaltrans.com/mongolia. For registration call +852 2192 8038 (Hong
Kong) or +44 20 7779 7222 (United Kingdom); or email coaltrans@euromneyplc.com
___________________________________________
“MM TODAY” on MNB-TV, Fridays at 18:30 [TONIGHT]
BCM is pleased to announce Mongolian National Broadcasting continues its cooperation with BCM on
―MM Today‖. This English news program is aired every Friday for 10 minutes and is scheduled for
18:30 tonight! Tune in to watch this program that reports stories from today‘s BCM NewsWire.
___________________________________________
“BSPOT” ON B-TV, MONDAY TO FRIDAY AT 18:20
B-TV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every
evening from Monday to Friday at 18:20, taking most of the stories from the BCM NewsWire.
___________________________________________
POSTINGS ON BCM‟S ENGLISH WEBSITE 'PRESENTATIONS' AND 'MONGOLIA REPORTS' SECTIONS
AND BCM‟S MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
New for 2012 is a ‗Presentations‘ section on the BCM Mongolian website which can be reached via
link to bcm.mn/itgeluud. Several presentations already posted including 9 from Coal Mongolia on
February 9-10, 2012.
As a key component of BCM‘s Mongolian website, ‗News‘ section, articles from the Government‘s
―Open-Government.mn‖ site are regularly posted.
On BCM‘s English website, ‗Resource, Presentations‘ section, for your review are 2 presentations
from BCM monthly meetings on March 26, 2012, 11 presentations from Coal Mongolia 2012, 7
speeches from the Mongolian Investment Summit on December 8-9 in London, several speeches at
the Risk Management Forum on November 8 co-organized by BCM and Mandal Insurance, speeches at
Discover Mongolia 2011, and speeches from BCM‘s monthly meetings in 2011-2012.
Also on BCM‘s English website, ‗Resource, Mongolia Reports‘ section, please note "Blitz and Lead" by
Sant Maral Foundation on August 2011, Z. Batbayar, Deputy Director of the Water Authority, at
BCM‘s Environmental Working Group‘s recent meeting and the Polit Barometer-May 2011 from Sant
Maral Foundation.
We are now posting some news stories and analyses relevant to Mongolia on the BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until Friday to put them all together in
the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will
incorporate items that are already on the home page, so that it presents a consolidated account of
the week‘s events.
___________________________________________

24. NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events with the
community. Hear breaking news and announcements as they happen when you follow BCM on
Twitter at http://twitter.com/#!/bcMongolia. Connect with BCM on Linked-in to join the diverse
group of professional contacts creating a better business environment in Mongolia today.
Of course for news information, interviews, and announcements regarding our organization, visit
the official BCM website at bcMongolia.org and bcm.mn.
ECONOMIC INDICATORS

26. 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]
February 29, 2012 *12.5% [source: NSOM]
*Year-over-year (y-o-y)
CENTRAL BANK POLICY RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
CURRENCY RATES – March 28, 2012
Currency Name Currency Rate
U.S. dollar USD 1325.16
Euro EUR 1766.57
Japanese yen JPY 16.04
British pound GBP 2108.66
Hong Kong dollar HKD 171.06
Chinese yuan CNY 210.08
South Korean won KRW 1.17
Russian ruble RUB 45.26
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.