BCM News Wire Issue 452

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 452 – November 11, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each
article is kept to a maximum of 150 words for brevity, but click on the link next to
“Source” to read the full article.
NEWS HIGHLIGHTS:
Business:
• EMC’s processing capacity reaches 32 million TPA
• ENGIE and Ferrostaal join forces on Sainshand wind farm project
• Energy Resources looks to Japanese, Korean shores for coal sales
• PM urges Oyu Tolgoi to hire even more Mongolian staff
• Khushuut coal used to produce ‘eco-coal’
• Kincora closes milestone for IBEX
• Former PM’s sea buckthorn factory opens beside Khaan Jims resort
• Government appoints members of Erdenet Mining Corp. board
• International investors to meet in Ulaanbaatar
• Naadam brand clothes talks sheep farming and sweaters
Economy:
• Mongol Bank: FX auctions, 1-week bills, T-bills
• IMF concludes mission in Mongolia
• Mongolian officials back IMF program amid widening budget gap
• National debt soars as Mongolian tugrik falls
• German meteorologist predicts coldest winter in 100 years
• Mongolia to receive EUR 40 million aid from Austria
• Prime Minister urges mining companies to agree on coal price
• 5 percent quota set for foreign staff
• Mongol Bank looks plans sustainable lending for 8% mortgages
• Khushig valley airport to commission in May 2017
• Government orders adjustments for MNT5 bn feasibility study
• Euro-4 standard to be sold in UB, cities nationwide
• Mongolia, Laos plan to launch meat trade
• Mongolia to train Energy-Saving managers
• 3 miners saved at Nalaikh mine
• UN backs Mongolia-initiated resolution on eradicating illiteracy
• Hong Kong photo auction to help Mongolia’s suffering tent children
• Herder discovers giant fossil skull
• Coal burns brightly after 5-year downturn
• Copper rally could signal break of downtrend but short-term dips loom
• US Election 2016: Asia markets bounce back after Trump win

2. Politics:
• Former PM Altankhuyag to run for president in 2017
• Mongolia, China form council for minerals, energy and infrastructure
• Mongolia expresses interest to join EEU, ambassador says
• Former roads and transportation authorities arrested
• IAAC opens investigation into former justice minister
• Authorities place travel ban on former PM Altankhuytag’s wife
• Trump team moves to reassure world on transition
• Asia responds to Trump’s presidency win
BCM Updates:
• Dale Carnegie Tips
• Working Groups News
• Job vacancies at member organizations
• Member-to-Member Special Offers & Benefits
• Websites Update - Presentations, Mongolia Reports, Interviews
Economic Indicators:
• Inflation
• Central Bank Policy Rate
• Currency Rates
*Click on titles above to link to articles.
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BUSINESS
EMC’S PROCESSING CAPACITY REACHES 32 MILLION TPA
Erdenet Mining Corp. boosted its ore processing capacity to 32 million on 2 November,
Mining Minister Ts. Dashdorj told Parliament’s Standing Committee on Economy that same
day. The Erdenet copper plant was commissioned in 1978 with annual processing capacity

3. of 16 million tons. That was bumped up 1.6 times in 2014.
Source: Montsame
ENGIE AND FERROSTAAL JOIN FORCES ON SAINSHAND WIND FARM PROJECT
ENGIE, one of the world’s energy leaders, and Ferrostaal, a leading global project
developer and industrial service provider, have signed a joint development agreement to
build and operate the Sainshand wind farm project. The project brings more than USD100
million in foreign direct investment into Mongolia and is in line with the government’s
objective to evolve towards a greener economy and a better environment.
With a potential reduction of more than 200 tons of CO2 emissions per year, the Sainshand
wind farm contributes to the country’s ambitions to reduce its greenhouse gas emissions
by 14 percent. This objective was defined by Mongolian authorities as part of the Climate
Change Agreement negotiated at COP21 last year and which entered into force on 4
November. The Sainshand wind farm will have a total installed capacity of 55 MW and will
provide the equivalent of the electricity consumption of 130,000 people in Mongolia.
Source: Eco-business.com
ENERGY RESOURCES LOOKS TO JAPANESE, KOREAN SHORES FOR COAL SALES
Mongolian Mining Corp. will turn its attentions to reaching third markets in the wake of a
debt dispute settlement. Mongolian Mining has been held up by debt owned by BNP Paribas
and Industrial and Commercial Bank of China, in addition to USD600 million with from
investors. “In general, the company reduced its overdue debt of about USD830 million in
total to about USD425 million,” said G. Battsengel, the chief executive Mongolian Mining’s
unit for the Ukhaa Khudag mine nearby the state-owned Tavan Tolgoi coking coal mine.
“Also the interest rate was reduced to be 5-8 percent by coordinating the coal price, and
the loan term also was postponed till 2022 or by six years”
With its debt responsibilities behind it, the Hong Kong-listed miner will next focus on
reaching the Japanese and Korean markets, he said. “Before the end of the year, we are
working to do trial shipments to Japan for exporting enriched coal.”
Source: Udriin Sonin
PM URGES OYU TOLGOI TO HIRE EVEN MORE MONGOLIAN STAFF
Prime Minister Jargaltulga Erdenebat urged Oyu Tolgoi LLC hire hire more Mongolian staff
and focus on improving employees’ professional skills during a working-tour visit to the
copper-gold mine last weekend. The role of the Oyu Tolgoi project in Mongolia’s growth
will not be measured solely by the tax contribution, said the prime minister, but also the
opportunities it provide from employment of staff and national contractors. The project is
expected to triple in efficiency and expand economic Mongolia’s growth.
Oyu Tolgoi reported some 1,600 Mongolians employed for the underground work force in
its third quarter report, and it expects to expand that number to 2,400 by the end of the
year. “More than 90 percent of the employees of the underground mine development
project are Mongolians,” said Oyu Tolgoi LLC Executive Director B. Munkhbaatar.
Source: Montsame, 2, News.mn, Oyu Tolgoi LLC
KHUSHUUT COAL USED TO PRODUCE ‘ECO-COAL’
Mongolia’s first low-emission coal-based fuel is having a tough time reaching home stoves
while it lacks a presence at the black markets where most low-income residents of
Ulaanbaatar’s “ger” districts shop, according to a sales manager. Nomin Shiltgeen

4. Construction LLC’s launched its daily production of 160 to 200 tons of its eco-coal fuel a
little over a year ago. The company already provides free delivery of its fuel, which emits
less smoke when burned, but has had limited exposure to the target market so far.
Nomin Shiltgeen processes coal extracted at the Khushuut coal mine in Darvi Soum, Khuvd
Aimag. The factory also purchases again the customized bags it delivers its coal in for
MNT100 each.
Source: Montsame
KINCORA CLOSES MILESTONE FOR IBEX
Kincora Copper Ltd. has closed its milestone for the IBEX transaction following satisfaction
of all key Mongolian processes and approvals, and acceptance by the TSX Venture
Exchange. Kincora now holds an industry leading proposition of copper-gold and gold
targets, and the dominate landholding in this proven but under-explored gold rich
porphyry district, it reported on 7 November. “Closing the IBEX transaction results in
Kincora being the largest landholder in the belt at a time when various incumbents are
again looking to increase their exploration footprint and advance exploration efforts, with
increased activity of potential new entrants undertaking due diligence revisiting the
Southern Gobi’s copper-gold potential,” said Sam Spring, Kincora’s president and chief
executive officer.
On 25 May, Kincora and High Power Ventures Inc., a private company controlled by High
Power Exploration Inc. agreed on the so-called IBEX transaction, which was a deal to
consolidate their respective Mongolian land holding and services subsidiaries.
Source: Kincora Copper
FORMER PM’S SEA BUCKTHORN FACTORY OPENS BESIDE KHAAN JIMS RESORT
Former Prime Minister Norov Altankhuyag launched operations at the Khuba Khaya sea
buckthorn factory opened on 2 November. The factory was built with help of German
engineering and outline and meets the European standards. It will market goods for
relieving stress, maintain beauty and provided added nutrition. The orange berry is richer
in Vitamin E, three times as much Vitamin A as red carrots, and four times more
superoxide dismutase than ginseng, according to the company, and berry oil is the only
phytogenic source of fatty acids Omega 3,6,7 and 9.
The factory is located next to the former prime minister’s Khaan Jims resort, where
Chinggis Khan is said to have settled for winter in Mongolia. The company borrowed from
Khan Bank LLC to open the plant.
Source: Montsame, Zuunii Medee
GOVERNMENT APPOINTS MEMBERS OF ERDENET MINING CORP. BOARD
New appointments have been made to Mongolia’s 51 percent owned Erdenet Mining Corp.’s
board of directors. The government has appointed U. Byambasuren, G. Nandinjargal, D.
Demberel and N. Dorjsembed to four-year terms. The deputy chairman of the Cabinet
Secretariat, U. Byambasuren, was appointed as the board’s director. Previously,
Byambasuren worked as general secretary of the MPP Youth Organization and state
secretary for the Ministry of Social Protection and Labor. The director and board members
will receive salaries of between MNT250,000 and MNT300,000, according to the head of
the Government Procurement Agency, Ts. Nyam-Ochir,
The seven-member board includes four seats reserved for the Mongolian government,
while the rest are filled by appointments from Mongolian Copper Corp., which holds the

5. remaining 49 percent. The private shareholder has appointed Da. Ganbold, O. Orkhon and
M. Munkhbaatar.
Source: News.mn, Unuudur
INTERNATIONAL INVESTORS TO MEET IN ULAANBAATAR
“Why should investors focus on Mongolia?” is the name of a round table discussion with
investors and government officials to be held on 25 November at the Government Palace in
Ulaanbaatar. A few years ago, Mongolia was one of the fastest growing economies in the
world and focus for international investment. However, the fall in world market prices for
natural resources has hit the Mongolian economy very hard and the flow of investment has
largely dried up. More than 40 delegates from the Mongolian government, international
banks, financial institutions and mining companies are expected to discuss these issues and
more.
Source: News.mn
NAADAM BRAND CLOTHES TALKS SHEEP FARMING AND SWEATERS
“It’s a long story, but somehow I found myself stranded in Mongolia,” Matthew Scanlan of
Naadam Cashmere recounted the origin of his business for an intimate gathering of style-
hounds. “I lived with a family for three weeks, and even though they didn’t know me, they
took care of me, fed me. I was so grateful.”
When he get home to America he realized he wanted to help the people he’d met. He set
up Gobi Revival Fund, an organization that provided veterinarian training to care for their
livestock and manage water supplies, and a few years later a sweater company was born.
Steven Alan was one of the first stores to sell the cashmere brand. “I’m not looking at
price as much as I’m look for something that’s a good value. If a leather jacket sells for
USD2,000 it should be something that could sell for, or might be worth, USD4,000.”
Source: New York Magazine
ECONOMY
MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS, T-BILLS
The Bank of Mongolia on 8 November rejected USD62.2 million and CNY101.4 million in
bids from commercial banks at currency auction. That day, it also rejected an equivalent
of USD34 million in tugrik swap agreements.
On 9 November, the central bank issued MNT70 billion worth of one week bills at a
weighted interest rate of 15 percent. Also that day, it received MNT145 billion in bids in
12-week treasury bills with a face value of MNT145 billion that was sold at a discounted
price and with a weighted average yield of 16.848 percent. It received MNT5 billion in bids
in 39-week treasury bills with a face value of MNT5 billion (originally MNT40 billion) that
was sold at a discounted price and with a weighted average yield of 16.99 percent. It
received MNT5 billion in bids for 52-week bonds with a face value of MNT5 billion
(originally MNT40 billion) that was sold at a discounted price and weighted average yield
of 17 percent.
Source: Bank of Mongolia
IMF CONCLUDES MISSION IN MONGOLIA
An International Monetary Fund (IMF) mission led by Koshy Mathai visited Ulaanbaatar
during 24 October to 4 November. Neil Saker, the IMF’s resident representative in

6. Mongolia, issued the following statement at the conclusion of the visit:
“The mission held very productive discussions with the Mongolian authorities on the 2016
Article IV Consultation as well as on policies that could become part of an IMF-supported
economic and financial program. Common policy views were developed in many key areas.
The team will now return to IMF headquarters to give time for further consultations on
both sides. We would like to thank the authorities for their warm welcome and close
cooperation and look forward to continuing our joint work to help address the challenges
facing the Mongolian economy.”
Source: International Monetary Fund
MONGOLIAN OFFICIALS BACK IMF PROGRAM AMID WIDENING BUDGET GAP
With the currency hitting record lows and the budget deficit worsening, senior Mongolian
officials said they support an assistance program from the International Monetary Fund.
Foreign Minister Munkh-Orgil Tsend said he was confident an agreement with the IMF
would be in place by February. Khayankhyarvaa Damdin, chairman of the ruling party’s
parliamentary caucus, said at press conference on Monday that “Mongolia should enter the
IMF program. In fact, we are losing time on this process.’’
In its first 100 days in office, the Jargaltulga Erdenebat government’s cut spending,
brought off-budget expenses into a single consolidated budget and conducted a probe into
money owed to private and foreign companies. Munkh-Orgil doesn’t expect to see a
balanced budget until 2020. The IMF “held very productive discussions with the Mongolian
authorities’’ on policies that could become part of an IMF-supported economic and
financial program, the fund said last week after two weeks of talks.
Source: Bloomberg
NATIONAL DEBT SOARS AS MONGOLIAN TUGRIK FALLS
The downward spiral of the tugrik is creating crippling debt for banks. In September,
however, it was reported that banks faced a credit risk of MNT765.8 billion, including
MNT115.3 billion held by banks, as a direct result of the tugrik’s depreciation. The tugrik
hit MNT2,430 against the U.S. dollar on 8 November, after months of steady rise amid
economic turmoil. Mining figured in the most heavily, representing 37 percent of total
total credit risk, indicating that the largest pillar of the economy had been operating at a
considerable loss.
Source: News.mn
GERMAN METEOROLOGIST PREDICTS COLDEST WINTER IN 100 YEARS
Mongolia may see its coldest winter in 100 years this year, according to a German climate
researcher. Meteorologist Dominik Jung said the 2016-2017 winter season promised to be
“unusually cold,” with consensus from the Mongolian Research Institute for Hydrology and
Meteorology. Mongolian superstitions suppose that Mongolia sees its harshest winters
during the Year of the Monkey, which started last February with the Tsagaan Sar Lunar
New Year.
Localities have reported adequate supplies for winter. Nationwide, herders have prepared
284,000 tons of hay or 24 percent of what’s needed for winter. Provinces have stockpiled
emergency storages of 3,722 tons of hay and 504 tons of fodder. Mongolia will need at
least 1.2 million tons of hay and 100 thousand tons of animal fodder for winter, according
to olloo.mn.
Source: Montsame

7. MONGOLIA TO RECEIVE EUR 40 MILLION AID FROM AUSTRIA
Parliament has approved a EUR40 million credit line from Austria for use by the Mongolian
government on financing projects in health, education, social welfare and infrastructure.
The loan, which was originally agreed up on 10 June, comes with 0.4 percent interest for
two years.
Source: News.mn
PRIME MINISTER URGES MINING COMPANIES TO AGREE ON COAL PRICE
Prime Minister Jargaltulga Erdenebat in a meeting with Mongolia’s coal miners at the
Tavan Tolgoi coal seam gave companies the ultimatum of either forming a national
“Mongolian Coal” brand name for the country’s coal exports and set prices for the
industry, or face government intervention. The prime minister met representatives of
Erdenes Tavan Tolgoi LLC, Mongolian Mining Corp.’s mining unit for the Ukhaa Khudag
mine—Energy Resources—and Mongolia Stock Exchange-listed Tavan Tolgoi JSC this week to
discuss the failing profits in the industry as competition drives each other’s prices down.
Erdenebat delivered a serious warning to the companies that the government might
consider a price arrangement on the stable commercialization of the Tavan Tolgoi coal.
Source: Montsame
5 PERCENT QUOTA SET FOR FOREIGN STAFF
Companies will be held to a 5 percent quota for foreign workers on staff next year, the
Cabinet Secretariat ruled on 9 November. As of October 2016, Mongolia had a total 11,072
foreign nationals employed, or 33 percent less than 2015.
Mongolia has granted residencies to 651 foreign nationals this year. That includes 320 from
China, 120 from South Korea, 45 from Japan, 38 from Russia, 32 from the United States
and 96 from elsewhere around the world. In all, Mongolia has granted work permissions to
8,654 foreigners, 797 for investment and 96 for marriage.
Source: Montsame, News.mn
MONGOL BANK LOOKS PLANS SUSTAINABLE LENDING FOR 8% MORTGAGES
The central bank will no longer subsidize the 8 percent mortgage program, instead opting
for sustainable lending utilizing past issued loans. The president of the Bank of Mongolia
has decreed that new mortgages each month billion must be financed by mortgages
already being paid into. Currently, banks are collected between MNT22 billion and MNT25
billion on interest and principals.
Source: Unuudur
KHUSHIG VALLEY AIRPORT TO COMMISSION IN MAY 2017
The new international airport currently under construction at the Khushig Valley is due to
open next May. Project planners have estimated USD34.9 million in initial management
costs, including USD171 million to be paid by the Mongolian government. Minister of Road
and Transportation D. Ganbat said the country will borrow from Japan to pay for it.
Source: Udriin Sonin
GOVERNMENT ORDERS ADJUSTMENTS FOR MNT5 BN FEASIBILITY STUDY
The government has nixed a plan to build a new water treatment facility in Mongolia,
citing not enough capacity to meet the capital’s needs. A MNT5 billion feasibility study for
a new water treatment facility in Ulaanbaatar has been complete, the head of the

8. standing committee for environment, food and agriculture reported. However, the
committee determined that new working group would have to be established to develop
ways to increase its capacity.
Source: Undesnii Shuudan
EURO-4 STANDARD TO BE SOLD IN UB, CITIES NATIONWIDE
Government and private organizations are working together to develop a Mongolian fuel
that meets Euro-4 standards. The government is gotten involved as part of its efforts to
combat air pollution Ulaanbaatar and Mongolia’s other cities.
Source: Unuudur
MONGOLIA, LAOS PLAN TO LAUNCH MEAT TRADE
Meat trade was a chief topic of discussion in Prime Minister Jargaltulga Erdenebat’s
meeting with Lao Ambassador Sialungon Seng on 9 November.
Source: AKIpress
MONGOLIA TO TRAIN ENERGY-SAVING MANAGERS
The German Enterprise for International Cooperation (GIZ) is launching the first-ever
energy-saving managers’ training in Mongolia for employing projects aimed at improving
energy efficiency. The training program has been co-authored by a German company and
the Mongolian University of Science and Technology.
Source: Montsame
3 MINERS SAVED AT NALAIKH MINE
Emergency response saved three miners on 7 November after being trapped underground
for three hours. About 328 people continue to mine for coal in Nalaikh by hand at great
risk. Artisanal miners have only their own two hands and truck only to pull out coal from
underground. Around 10 people work around one hole, and five of them work underground.
It’s dangerous work for MNT15,000 a day. Too much air can destroy the hole’s foundation
while too little can cause suffocation.
This month’s rescue follows an incident in June where five people were saved.
Source: Udriin Sonin
UN BACKS MONGOLIA-INITIATED RESOLUTION ON ERADICATING ILLITERACY
A Mongolia-proposed a draft resolution on education of literacy has been approved by the
U.N. Despite decades of efforts from the global community on improving literacy
throughout the world, there are over 760 million illiterate adults and 650 children. About
38 percent of illiterate children lack access to education materials, according Mongolia’s
proposal, which attempts to work on Mongolia’s Sustainable Development goals from 2015.
The program aims to target vulnerable children and those living in rural regions of the
country.
Mongolia recorded a literacy rate of 98.4 percent in 2015.
Source: Mongolia.GoGo.mn
HONG KONG PHOTO AUCTION TO HELP MONGOLIA’S SUFFERING TENT CHILDREN
When they found Dolgoon, the 18-month-old girl had been left alone, her hand tied to a
mattress, in a small home in one of the poorest suburbs of the Mongolian capital,
Ulaanbaatar. It was mid-October, minus 6 degrees Celsius outside, and she was cold,

9. thirsty and hungry. Her mother, a single parent of four who struggles with alcoholism, had
left her in the care of her older brother, six, who’d gone to a friend’s house to escape the
cold. Dolgoon’s case is one of the many that inspired Chimgee and her family to start the
small Hong Kong-registered charity that provides care for children in impoverished
Ulaanbaatar’s Chingeltei district. By 2013, they’d raised enough funds to build a laryurt
house, and can now welcome 50 children.
On 8 November, the Tsolmon Ireedui Foundation is holding a “Red Hero” auction of
photographs by Hong Kong-based photographer Paul Cox. All profits will go to the charity.
Source: South China Morning Press
HERDER DISCOVERS GIANT FOSSIL SKULL
A herder recently discovered a fossil skull of a Rhinocerotoidae at Khongor Soum of
Darkhan-Uul. Herder G. Batsukh reported the finding of the fossil at a region called
Khushuut Tokhoi to authorities from the local museum. Paleontologists from Ulaanbaatar
and staff from the local museum are currently studying the skull, which measures 80 by 35
centimeters.
Source: News.mn
COAL BURNS BRIGHTLY AFTER 5-YEAR DOWNTURN
After a five-year downturn coal is burning brightly again. The price of coking coal, a key
steelmaking ingredient, has just topped USD300 a ton for the first time since 2011 as Asian
mills and traders scramble for supplies. The rebound marks a striking turnround in fortunes
for coal, which has been shunned by investors because of its poor performance and
reputation as the planet’s dirtiest fossil fuel. The last time coking coal traded above
USD300 a ton was in 2011 when widespread flooding disrupted production in Australia.
The coal market renaissance reflects supply curbs in China, the world’s biggest consumer
of commodities. These were introduced in April in an effort to improve the profitability of
the country’s heavily indebted coal industry. They have also boosted the price of thermal
coal, burnt in power stations to generate electricity. The fuel has more doubled in the
past six months with benchmark Australian material trading at USD110 a ton.
Source: Financial Times
COPPER RALLY COULD SIGNAL BREAK OF DOWNTREND BUT SHORT-TERM DIPS LOOM
Copper could be poised eventually to shatter a five-year downtrend after a scorching rally,
but the weight of speculators piling into the market makes the red metal vulnerable to a
short-term reversal, technical analysts and traders say. Copper, regarded by some
investors as a bellwether of the global economy due to its wide range of industrial uses,
hit a 15-month high on Wednesday of USD5,443 a ton, after powering ahead by 10 percent
over the past week.
Axel Rudolph, senior technical analyst at Commerzbank, is cautious but reckons copper has
put that long downtrend behind it. "Because we've moved so quickly and so far, first of all
I'd expect some consolidation for days if not weeks before we move higher."
Source: Reuters
US ELECTION 2016: ASIA MARKETS BOUNCE BACK AFTER TRUMP WIN
Asian share markets have surged back after Wednesday's sharp sell-off in the immediate
aftermath of Donald Trump's U.S. election victory. Thursday's rally followed rises in Europe
and the United States, as the market meltdown many had anticipated failed to

10. materialize. Japan's Nikkei 225 index soared 6.7 percent, more than recovering losses from
the previous session. Hong Kong's Hang Seng index added 2.1 percent with Australia's ASX
index up 3.3 percent.
Nariman Behravesh, chief economist at IHS Markit said that "after the initial shock,
investors seem to feel that a Trump administration could be good news for U.S. businesses,
with lower taxes and a reduced regulatory burden." He added that while Trump had set
out several broad economic policies, including corporate tax breaks and the renegotiating
or scrapping of trade deals, there was no certainty these would go ahead. “As in the past,
it is unclear how much of the campaign bluster will translate into actual policy
initiatives,” Behravesh said.
Source: BBC
POLITICS
FORMER PM ALTANKHUYAG TO RUN FOR PRESIDENT IN 2017
Former Democratic prime minister Norov Altankhuyag has announced that he will run for
president in next year's election. Altankhuyag announced his intentions to run a campaign
on 9 November at the Tuushin Hotel on 9 November. In his statement, he accused the
Mongolian People’s Party of breaking its election campaign pledges and trying to seize
power at all levels of government.
Altankhuyag served as prime minister from 2012 to 2014 before being ousted by MPs,
including some of his own party, in a 'no-confidence' vote. He has been accused of
economic mismanagement, corruption and nepotism. Altankhuyag’s announcement to run
preceded an incident where his wife was stopped by authorities from leaving the country.
(See: Authorities place travel ban on former PM Altankhuytag’s wife)
Source: News.mn
MONGOLIA, CHINA FORM COUNCIL FOR MINERALS, ENERGY AND INFRASTRUCTURE
The deputy prime minister will serve as a chair for Mongolia in a new join council for on
mineral resources, energy and infrastructure with China. The first meeting is scheduled in
Beijing next month.
Source: Montsame
MONGOLIA EXPRESSES INTEREST TO JOIN EEU, AMBASSADOR SAYS
The Eurasian Economic Union (EEU) is of great interest for Mongolia, the country's
ambassador to Russia, Banzragch Delgermaa, said Saturday. “As you know, the process of
integration and establishment of regional blocs is underway in the world, and that is why
Mongolia, located between such powerful states as Russia and China, and without access
to the sea, is glad to join some economic blocs and work effectively, In this regard, the
Eurasian Economic Union is of great interest for us," Delgermaa said in an interview.
The Eurasian Economic Union is a Russia-initiated regional political and economic bloc
which aims to streamline the flow of goods and services between its members, namely
Russia, Kyrgyzstan, Armenia, Belarus, and Kazakhstan. Delgermaa said on Saturday that
Mongolia hopes to boost trade and economic relations with Russia, but noted that there
were misbalances in bilateral trade with the turnover amounting to USD1.2 billion and
Russian export to Mongolia—over USD1 billion.
Source: Sputnik News

11. FORMER ROADS AND TRANSPORTATION AUTHORITIES ARRESTED
Authorities have arrested a former department head at the roads and transportation
ministry, J. Byambatsogt, and advisor to the former minister A. Gansukh. The former
government officials stand accused of fraud regarding a 2012 bid for providing
transportation management software. Police say the ministry officials received MNT4
billion for a contract that was won by the Bulgarian firm Kontaks Ead.
When the Ministry canceled the contract in 2014, the Bulgarian company reportedly did
not complain. The Independent Agency Against Corruption and the Criminal Police
Department said they had investigated the case for more than one year.
Source: Udriin Sonin
IAAC OPENS INVESTIGATION INTO FORMER JUSTICE MINISTER
An investigation has been opened into the the former Justice Minister D. Dorligjav.
Dorligjav, who is also a former state prosecutor general, has been accused of corruption
related to the illegal obtainment of funds. The Independent Agency Against Corruption
(IAAC) declined to give any further details.
Source: Unuudur
AUTHORITIES PLACE TRAVEL BAN ON FORMER PM ALTANKHUYTAG’S WIFE
The wife of former prime minister Norov Altankhuyag has received an exit band amid
investigations into corruption. Kh. Selenge was prohibited from departing for Germany on
30 September when authorities said that her name was included in a list of individuals
banned from leaving the country. Selenge waited the investigator for more than an hour
after being told an investigator would come to meet her who never arrived. “The ban is
true, but it is not possible to say on what grounds,” said a spokesperson from the IAAC.
The government under Prime Minister Jargaltulga Erdenebat has made announcements
that they were trying to ease off on the use of travel bans, especially regarding foreign
investors. Erdenebat has stated that the government has released hundreds of foreign
nationals from exit bans in recent months.
Selenge was stopped after her husband Altankhuyag announced that he would run for
president in 2017. (See: Former PM Altankhuyag to run for president in 2017)
Source: Udriin Sonin, Montsame
TRUMP TEAM MOVES TO REASSURE WORLD ON TRANSITION
Senior Republicans sought to reassure the world that Donald Trump would oversee a
smooth transition of power in Washington and bring in heavyweight figures to his
administration after the political outsider’s stunning victory roiled markets and shocked
U.S. allies. The shock from Trump’s surprising win was felt with an immediate, wide-
ranging sell-off during Asian trading hours and expressions of concern from U.S.-led
security and trade alliance .“We just assume the U.S. policy will, in the coming times, be
less predictable for us,” said Frank-Walter Steinmeier, Germany’s foreign minister.
But chief among the foreign adversaries expressing renewed optimism was Russia’s
Vladimir Putin—a liability for Trump during the campaign. Putin said his nation was eager
to restore ties with the United States that frayed badly after the annexation of Crimea and
have suffered further during the Syria war. “Russia is ready and wants to restore fully
fledged relations with the U.S. It won’t be easy, but we’re prepared to do our part,” Putin
said in a congratulatory message. He added that this held out the promise of “positively
impacting” international affairs.

12. Source: Financial Times
ASIA RESPONDS TO TRUMP’S PRESIDENCY WIN
Chinese state media has warned the U.S. president-elect against isolationism and
interventionism, calling instead for the United States to actively work with China to
maintain the international status quo. President-elect Donald Trump threatened to tear up
trade deals and pursue a more unilateral foreign policy under his "America First" principle
during a tempestuous election campaign. But China and other foreign governments are
uncertain how much of Trump's rhetoric will be translated into policy because he has at
times made contradictory statements and provided few details of how he would deal with
the world.
Meanwhile, U.S. President-elect Donald Trump pledged his commitment to defend South
Korea under an existing security alliance during a phone call with South Korean President
Park Geun-hye on Thursday, her office said. She asked Trump to join in the effort to
change North's leadership and use deterrence against Pyongyang, especially at a time of
transition in the United States when the North has tried in the past to test the will of the
new U.S. administration. There are about 28,500 U.S. troops based in South Korea in
combined defense against North Korea.
Source: Reuters, 2
BCM WORKING GROUP NEWS
- Risk Working Group meeting on “Draft Amendments to Law on Disaster Protection” 13
October 2016
- Business Ethics Working Group meeting “Third Party Bribery Risks” 27 September 2016
- Education & Innovation Working Group Meeting on “Opportunities for Fostering
Innovation in the Mongolian Market” 22 September 2016
- Energy & Environment Working Group’s consultation meeting with J.Batbayasgalan,
Deputy Governor of Capital City on “MUNICIPALITY’S ACTION PLAN FOR THE NEXT 4
YEARS”, 15 September 2015
- Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June
2016
- Capital Markets Working Group Meeting on “OYU TOLGOI UNDERGROUND PROJECT
FINANCING”, 5 April 2016
- Tax Working Group Meeting on “VAT LAW”, 2 March 2016
JOB VACANCIES AT MEMBER ORGANIZATIONS
1. World Vision is hiring Supply Chain Manager. Deadline for application: Nov 21, 2016. For
more information, please contact at: 7015-5323 /ext124, 125, 128/
2. World Vision is hiring Finance Officer for Uvurkhangai and Arvaikheer AdPs. Deadline for
application: Nov 16, 2016, for more information please contact at: 7015-5323 /ext124,
125, 128/
Please click here to view full list of Job Vacancies at member organizations.

13. MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- Orchuulga 24 is providing 15% discount on written translation services to BCM Members
- MNC HD TV offers BCM members 20% discount from the fee to be showcased in their “The
Story of Business/Бизнесийн түүх” TV program.
- American University of Mongolia is offering BCM members a 20% discount on all of ELI
Summer Courses.
- Matoza LLC is offering 15% special discount to BCM members on Intensive Business English
Language Course in Poland with a Sightseeing Trip.
Please click here to view full list of Member-to-Member special offers & Benefits.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
- Presentations from “Invest Mongolia 2016” Conference
Please click here to view full list of Presentations.
MONGOLIA REPORTS:
- World Bank, “Mongolia Economic Brief”, Sep 2016
- WPP and Y&R Mongolia, BradnZ’s first ever “Spotlight on Mongolia”, Sep 2016
- ADB, “Asian Development Outlook 2016: Asia’s Potential Growth” (forecasts of the next 2
years for the 45 economies in Asia and the Pacific including Mongolia)
- Invest Mongolia, “Your Guide to Invest in Mongolia” 2016
- BTI, “Mongolia Country Report” 2016
- World Bank, “Doing Business: Economic Profile of Mongolia 2016"
Please click here to view full list of Reports.
ECONOMIC INDICATORS
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]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
September 30, 2016 *-0.1% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: -0.7% y-o-y - Ulaanbaatar City, September 30, 2016

14. CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]
May 6, 2016 10.50% [source: Mongol Bank]
August 18, 2016 15.00% [source: Mongol Bank]
CURRENCY RATES – 10 November 2016
Currency Rate
U.S. dollar 2,453.39
Euro 2,681.43
Japanese yen 23.23
British pound 3,050.91
Hong Kong dollar 316.37
Chinese Yuan 361.23
Russian Ruble 38.73
South Korean Won 2.13