BCM NewsWire Issue 454

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 454 – November 24, 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:
 Erdenes TT negotiates higher coal prices
 Erdenet to recover USD10 million debt from Kazakhstan
 Tavan Tolgoi power plant investors meet in Singapore
 SoftBank’s clean-energy goals find welcome in Mongolia’s desert
 Moody's downgrades Development Bank of Mongolia's rating to Caa1 from B3
 MAK to build power lines to its copper mine and towns in Umnugobi
 Erdene reports 22.7 g/t at Bayan Khundii gold project
 Investors get preview into Kincora’s IBEX licenses
 TerraCom recommences mining operations in Mongolia
 Mongolian Mortgage plans to issue debt offering
 Mongolia’s first privately owned stock exchange opens
 Holiday Inn hotel opens in UB
 Contract signed for construction of Bulgarian greenhouse
 Farmers market to open at Khan-Uul district
 TIKA to finance honey farm in Selenge
 Mongolian producer to nominate a Mongolian movie for Oscar
 Wolf Petroleum appoints non-executive director
 Kincora appoints exploration VP
 Haranga exec resigns
 5.11 Tactical sponsors MMA match and shooting competitions
 Oyu Tolgoi finances new hospital
 XacBank launches Peter Morrow Scholarship
Economy:
 Mongol Bank: FX Auctions, t-bills
 Mongolia rating cut as Moody’s expects elevated debt burden
 Fitch downgrades Mongolia to B-; outlook ‘Stable’
 No end in sight for economic problems
 Coldest winter in 100 years? Not so fast
 Extreme weather halts coal transport to China amid surge in exports
 Italian fashion industry craves Mongolian cashmere

2.  Authorities place temporary ban on export of live horses
 Companies tasked to reserve 30 days of fuel
 2016 harvest meets national demand for wheat and potatoes
 5,100 tons meat exported in 2016, disease outbreaks affect sales
 Government cuts cellular service payments for civil servants
 Mongolia to receive grant from World Bank
 Mayor appealed for citizens’ participation in snow removal
Politics:
 Former Speaker Enkhbold to continue leading until December
 Former PM Bayar denies offshore allegations
 PM promises to rectify problems outlined in U.S. Embassy report
 26 November declared public holiday
 MPP divided on leadership for Erdenet Mine
 Government has nothing to do with Dalai Lama’s visit, FM says
 China says Dalai Lama's Mongolia visit could harm ties
 N. Korea defends worker exchange program
 Ambassador hands over humanitarian assistance to North Korean side
 Mongolia selected as vice chair of UNESCO’s media development group
 Authorities arrest sister of former PM Altankhuyag
 Dalai Lama says will visit Trump in move bound to anger China
BCM Updates:
• Member-to-Member Special Offers & Benefits
Economic Indicators:
• Inflation
• Central Bank Policy Rate
• Currency Rates
*Click on titles above to link to articles.
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3. National News Corporation International SOS
BUSINESS
ERDENES TT NEGOTIATES HIGHER COAL PRICES
The state-owned miner for the multi-billion ton Tavan Tolgoi coal fields has renegotiated
for better prices from the coal it sells to China—nearly twice as much as it previously was
selling by next year. Erdenes Tavan Tolgoi LLC has negotiated to raise the average selling
price for its coal by 85 percent to USD50 a ton in December to the distribution company
TTJVCo. In the first quarter of next year, coal is expected to sell for USD60 per ton from
the East Tsankhi block. Meanwhile, the companies SGS [Source is not clear, but this may
be SouthGobi Sands LLC -ed], Khishig Arvijak and Monnis LLC plan to extract a combined
1.1 million tons of coal from the West Tsankhi.
Erdenes TT hopes to repay in coal deliveries the USD350 million it borrowed from
Aluminum Corp. of China in 2011, as well as money owed to TTJVCo. Meanwhile, the East
and West Tsankhi blocks are projected to pay USD100 million tax revenue in first half of
2017.
Source: News.mn, Mongolia.GoGo.mn
ERDENET TO RECOVER USD10 MILLION DEBT FROM KAZAKHSTAN
Kazakhstan has agreed to repay USD10 million to Erdenet Mining Corporation for debt it
claims for copper deliveries that were never paid for. Erdenet supplied a private company
based in Kazakhstan that was processing copper ore into concentrate in the 1990's until
the company went bankrupt. Mongolia brought up the issue multiple times the matter of
USD10 million it was owed for copper during visits to Kazakhstan, but to no results until
now.
Source: News.mn
SOFTBANK’S CLEAN-ENERGY GOALS FIND WELCOME IN MONGOLIA’S DESERT
SoftBank Group Corp. plans to build more wind projects in Mongolia as the company’s
chairman, Masayoshi Son, pushes to connect countries across Asia with transmission lines
to supply cheap, clean energy. The Tokyo-based company’s first wind farm in Mongolia is a
50-megawatt project being developed with Newcom LLC in Mongolia’s Gobi desert. The
project is an outgrowth of a venture between Newcom and SoftBank’s clean-energy unit
called Clean Energy Asia LLC that was set up in 2012. SoftBank is now looking into two
more wind projects in Mongolia, with plans to possibly add 200 megawatts of solar and
wind at the site of its first project, according to Shinsuke Moriya, who manages SoftBank’s
electricity business planning group.
It’s the first time JICA is co-financing a project with the European Bank for Reconstruction
and Development, and China has emerged as a strong supporter of interconnections.
Source: Bloomberg
TAVAN TOLGOI POWER PLANT INVESTORS MEET IN SINGAPORE
Mongolian officials will meet with investors next month to discuss plans for moving forward
with a 450 megawatt thermal power station to be built at the Tavan Tolgoi mine. The
USD1 billion power plant is key project for powering mines in the Gobi desert, including

4. the Oyu Tolgoi copper mine. Representatives of Marubeni Corporation and MCS Group will
meet in Singapore on 2 December at the request of Oyu Tolgoi LLC, which asked that the
meeting be postponed from an earlier scheduled date.
Investors currently plan to provide 30 percent of the capital and raise the remainder from
international investors. Construction is estimated to span between three and four years.
Source: Undesnii Shuudan
MOODY'S DOWNGRADES DEVELOPMENT BANK OF MONGOLIA'S RATING TO CAA1 FROM B3
Moody's Investors Services downgraded Development Bank of Mongolia's rating to caa1 from
b3, and changed it outlook to stable. Sovereign-backed senior unsecured debt and tugrik
program rating are downgraded to caa1/(p)caa1 from b3/(p)b3. Downgrade of the bank’s
rating is driven by its strong linkages with the Mongolian government. The downgrade
reflects rising short-term liquidity pressure stemming from USD580 million payment due
march 2017. It’s driven by increased uncertainty over ability to meet its direct and
indirect debt service obligations over next 18 months.
Also driving the downgrade was the expectation that the budget deficit will remain wider
for longer. Combined with a weaker growth outlook in the next two years, this will raise
government's debt burden.
Source: Reuters
MAK TO BUILD POWER LINES TO ITS COPPER MINE AND TOWNS IN UMNUGOBI
The Mongolyn Alt Corporation (MAK) has been granted a USD32.2 million contract to build
overhead power lines between its Tsagaan Suvarga copper mine and Rio Tinto’s Oyu Tolgoi
copper-gold mine. The Cabinet Secretariat on 16 November gave its permission for the
National Development Agency to sign a concession agreement with MAK where the
government would be responsible for costs estimated at USD32.231 million.
Power lines will also be built to connect Mandakh and Khatanbulag Soums of Dornogobi
Aimag to the central power grid system.
Source: Montsame, Udriin Sonin
ERDENE REPORTS 22.7 G/T AT BAYAN KHUNDII GOLD PROJECT
Erdene Resource Development Corp. reported “impressive” intersections “with good
continuity and high grades” at the wholly owned Bayan Khundii gold project in southwest
Mongolia. The company reported 22.7 grams of gold per ton of ore in its third batch of drill
results from its third-and fourth-quarter drill campaign from a 56 meter seam with an
average 1.2 grams per ton at the Striker Zone. Also highlighted was 71 meters of 1.1 grams
per ton along the eastern end of the exploration spot.
Fourth quarter drilling will continue with with results anticipated through early quarter-
one 2017.
Source: Erdene Resource Development
INVESTORS GET PREVIEW INTO KINCORA’S IBEX LICENSES
Kincora Copper Ltd. has given investors a preview of its new assets from the so-called IBEX
transaction that consolidated new exploration licenses. Kincora ran a comprehensive
workshop and field visit in the fall with industry leading specialists and geologists with
expertise in the gold-rich souther Mongolian copper belt that identified priority targets
and a pipeline of regional prospects, the copper explorer said in a a 17 November
statement. “Location, team and targets are the key ingredients for a successful

5. exploration play,” said President and Chief Executive Officer Sam Spring.
“Since closing the IBEX transaction we have started outlining key positive developments on
these fronts that differentiate and positions Kincora well moving forward, with systematic
exploration advancing our targets up the value curve.”
Source: Kincora Copper Ltd.
TERRACOM RECOMMENCES MINING OPERATIONS IN MONGOLIA
TerraCom Ltd. has recommenced mining operations at its Baruun Noyon Uul coal mine in
the south Gobi in Mongolia, it said in a 18 November statement. The relaunch follows a
binding, five-and half-year offtake agreement of hard coking coal from the mine with
Kingho Group last week, one of the largest private coal companies in China, for an
estimated 7.5 million tons of hard coking coal sales. The offtake agreement was the final
piece on the implementation of TerraCom’s implementation of an alternative supply chain
for its BNU mine this year.
Source: TerraCom Ltd.
MONGOLIAN MORTGAGE PLANS TO ISSUE DEBT OFFERING
Mongolian Mortgage Corporation has requested from government permission to issue
MNT200 billion worth of bonds. If approved, it would be the ninth time the company has
issued debt to investors such as the Bank of Mongolia and commercial banks. So far, total
debt from Mongolian Mortgage totals MNT2.5 trillion.
The central bank currently holds 90 percent of Mongolian Mortgages debt, while
commercial banks own the remainder.
Source: Unuudur
MONGOLIA’S FIRST PRIVATELY OWNED STOCK EXCHANGE OPENS
A private stock exchange platform has launched to rival the state-owned Mongolia Stock
Exchange. “We plan to issue our first IPO in first quarter of 2017,” said Ch. Baasandavaa,
a senior trade system monitoring specialist, about the newly launched Mongol Securities
Exchange. Baasandavaa added that to be eligible for a a public offering on their new
bourse, companies should fit meet criteria such as recording profits in the last years. The
Mongolian Stock Exchange has around 130 companies, of which only 30 to 40 are active,
and most shares are owned by only a handful of people, Baasandavaa said.
The chief executive officer of the exchange, S. Davaasambum, said their exchange
planned use the same software used by the United State’s NASDAQ exchange, X-Stream.
“Now, we have eight brokerage companies as our member and another 10 companies are
talking with us about membership,” he said.
Source: Udriin Sonin, Unuudur
HOLIDAY INN HOTEL OPENS IN UB
Mongolia’s first Holiday Inn opened in Ulaanbaatar on 18 November. The franchise, which
boasts more than 5,000 hotels worldwide, is managed by Max Group in Ulaanbaatar and
sent staff to the United Kingdom and Russia for training. The hotel includes a children’s
play room, three conference rooms and a restaurant. The Holiday Inn has 169 rooms and is
located just west of Tengis Cinema, on Sambuu Street.
Source: Udriin Sonin

6. CONTRACT SIGNED FOR CONSTRUCTION OF BULGARIAN GREENHOUSE
Bulgaria will spend approximately about EUR868,771 to build a greenhouse for the
production of tomatoes, cucumbers and peppers at Ulaanbaatar. The exact value of the
5,000 square meter construction is estimated at 1.4 million Lev. The facilities will not
serve to grow exotic vegetables or fruits, but traditional Bulgarian products: 40 percent
tomatoes, 30 percent peppers and 30 percent cucumbers.
The project has been described as high-tech, with a greenhouse that will withstand
temperatures between -50 and +40 degrees Celsius, being thus tailored to the Mongolian
climate. According to earlier statements by the Bulgarian authorities, the greenhouse is a
pilot project that Bulgaria will try to run on the Mongolian market.
Source: frognews.bg, Fresh Plaza
FARMERS MARKET TO OPEN AT KHAN-UUL DISTRICT
Farmers will have a new market to sell their goods directly to customers at Ulaanbaatar’s
Khan-Uul District. Dairy, honey, sea buckthorn and more agricultural goods will be for sale
at the farmers market at prices below those found at traditional stores. Savings are made
by cutting out the middle-man procurers.
The market also comes equipped with a lab for testing the quality of goods. It’s located at
between Yarmag bridge and Viva City.
Source: Udriin Sonin
TIKA TO FINANCE HONEY FARM IN SELENGE
The Turkish Cooperation and Coordination Agency (TIKA) has agreed to invest USD30,000
into a honey operation at Selenge Aimag. The 200-square meter honey farm will be based
at Shaamar Soum, where almost 90 percent of small businesses for honey production are
located. The facility will allow bee keepers to care for their hives year-round.
Source: UB Post
MONGOLIAN PRODUCER TO NOMINATE A MONGOLIAN MOVIE FOR OSCAR
A Mongolian film will have a chance at an Oscar next year. Producer D. Angarag has joined
the Oscars’ Academy by joining the U.S. Producers Union and is now able to nominate an
Mongolian film for the category “Best Foreign Language Film.” "I am working on a business
plan to cycle MNT15-20 billion to the entertainment market of Mongolia for 2016-2018,”
said Angarag. “Financial companies and law firms of Mongolia and Hollywood are
cooperating on the plan."
Source: Unuudur
WOLF PETROLEUM APPOINTS NON-EXECUTIVE DIRECTOR
Wolf Petroleum Ltd. has appointed Siying Guo as a non-executive director to its board, it
announced on 17 November. Guo currently works in sales and project implementation with
CCC Financial Leasing Co., Ltd.
Source: Wolf Petroleum Ltd.
KINCORA APPOINTS EXPLORATION VP
Kincora Copper Ltd. has appointed a new vice president of its exploration. Peter Leaman
has been appointed as senior vice-president of exploration and John Holliday as Chairman
of the newly formed Technical Committee, Kincora announced on 14 November. The
Technical Committee will lead exploration efforts across the expanded portfolio, which

7. following the IBEX transaction has more than tripled in size to over 1,500km2, creating the
dominant landholding in the Oyu Tolgoi-Tsagaan Suvarga Devonian copper belt, with
multiple targets currently being advanced.
Source: Kincora Copper Ltd.
HARANGA EXEC RESIGNS
Haranga Resources Ltd.’s executive director, Marshall Cooper, has resigned from his
position. “The Board thanks Mr Cooper for his contribution to the Company,” reads a 17
November statement.
Source: Haranga Resources Ltd.
5.11 TACTICAL SPONSORS MMA MATCH AND SHOOTING COMPETITIONS
The local branch of U.S. outdoors and technical gear retailer 5.11 Tactical has sponsored a
mixed martial arts (MMA) match series. The competition will match Mongolian team, MGL-
1, with the Japanese team DEEP at the Mongolian Wrestling Stadium. Each team had seven
fighters, including one woman.
The event was organized together with 5.11 Tactical’s Mongolian dealer, Brother
Merchants LLC.
Source: NAMBC
OYU TOLGOI FINANCES NEW HOSPITAL
A new hospital financed by a development fund from Oyu Tolgoi LLC has opened at
Dalanzadgad Soum, Umnugobi. The two-story hospital built by Suvargan Gobi LLC comes
equipped with 10 beds, a garage and other amenities, and it will employ 18 staff. “On
behalf of the South Gobi aimag and the citizens of the Bayan-Ovoo Soum, we are thankful
to the Oyu Tolgoi team for close collaboration and cooperation and in funding this newly
built hospital building,” said Umnugobi Aimag Governor N. Naranbaatar.
The hospital was built using financing from the Gobi Oyu Development Support fund and
was managed in partnership with local community members. Construction began last June
and was complete in October. The fund was established as part of the Cooperation
Agreement between Oyu Tolgoi and its partner communities in April 2015.
Source: Oyu Tolgoi
XACBANK LAUNCHES PETER MORROW SCHOLARSHIP
XacBank LLC has dedicated a scholarship program in memory of Peter Morrow, former
Board Member of the Business Council of Mongolia and former independent Board Member
of XacBank. The scholarship will cover one year’s tuition to three students on their third or
fourth year to earning their Bachelor’s degree. The scholarship is directed to students
successfully studying banking, finance and economics, and those who are willing to pursue
career in commercial banks.
Source: XacBank LLC
ECONOMY
MONGOL BANK: FX AUCTIONS, T-BILLS
The Bank of Mongolia on 22 November sold USD27 million and CNY16 million in bids from
commercial banks at currency auction for closing rates of MNT2,444.91 and MNT354.51,
respectively. That day, it also rejected an equivalent of USD2 million in tugrik swap

8. agreements.
On 23 November, the central bank issued MNT152 billion worth of one week bills at a
weighted interest rate of 15 percent. Also that day, it canceled 52-week bills with a face
value of MNT40 billion due to a lack of bids.
Source: Bank of Mongolia
MONGOLIA RATING CUT AS MOODY’S EXPECTS ELEVATED DEBT BURDEN
Mongolia’s debt rating was downgraded by Moody’s Investors Service as there is
"heightened uncertainty" over the government’s ability to meet its debt service obligations
over the next two years and an expectation that the debt will increase. The nation’s long-
term issuer and senior unsecured rating was cut one step to Caa1 from B3 by Moody’s, the
same level as Barbados and Belarus, with a stable outlook, the debt rating company
announced on Friday.
The country faces USD800 million in external debt service obligations in 2017, equivalent
to 7.5 percent of GDP, Moody’s said. In addition to these existing debts, the budget deficit
this year is projected to be 19.5 percent of gross domestic product, up from five percent
in 2015, according to the statement. “It’s worth noting that credit rating changes rely on
lagging economic indicators, and new signs of revival in Mongolia’s economy are starting to
take shape," Bilguun Ankhbayar, chief executive officer of the Mongolian Investment
Banking Group, said.
Source: Bloomberg
FITCH DOWNGRADES MONGOLIA TO B-; OUTLOOK ‘STABLE’
Fitch Ratings downgraded Mongolia's Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) to B- from B on 22 November. The outlooks are “Stable.” The issue ratings
on Mongolia's senior unsecured foreign-currency bonds have also been downgraded to 'B-'
from 'B'. The Country Ceiling has been downgraded to 'B-' from 'B' and the Short-Term
Foreign- and Local-Currency IDRs have been affirmed at 'B.’
The downgrade reflects the deterioration of Mongolia's fiscal indicators and increased
external liquidity risks. Large pre-election spending programs and weaker economic growth
contributed to a dramatic widening of the general government deficit to 19.7 percent of
GDP in 2016, the highest among Fitch-rated sovereigns based on our adjusted measure that
includes commercial spending by the Development Bank of Mongolia. Fitch expects greater
borrowing and the sharp depreciation of the tugrik over the past year to push gross general
government debt to 84.3 percent of GDP at end-2016, compared to the B category median
of 51.2 percent.
Source: Fitch’s Ratings
NO END IN SIGHT FOR ECONOMIC PROBLEMS
Economic data shows no slow down in Mongolia’s economic problems. Estimates for this
year’s balanced of payments have been revised to USD176.4 million, which is a 46 percent
decrease from 2016. The budget deficit was MNT2.3 trillion. Capital and financial accounts
showed a surplus of USD177.9 million, which is 43 percent less from the previous year.
Money supply grew by 16.2 percent to MNT11.5 trillion at the end of October compared
with the same period in 2015. Loans outstanding were up by 4.7 percent compared with
2015, while principals in arrears grew by 3 percent to MNT97.6 billion—or 12.4 percent
month-on-month. The total from non-performing loans was up 30.4 percent in October
compared with 2015.

9. Source: Bank of Mongolia, Montsame, 2
COLDEST WINTER IN 100 YEARS? NOT SO FAST
Last week, Mongolia received the chilling news that this year’s winter promised to be the
coldest in a century. But reporters may have goofed. German researcher Dominik Jung
prediction that this would be the coldest winter in 100 years appeared in a paper
published in October where Jung merely warned about record lows in Europe. Although
extremely cold temperatures last weekend seemingly confirmed what may have been
exaggerated reports, Jung on the social-media platform Twitter, bemused by his mention,
posting “good to know. “I never spoke to anybody in Mongolia,” Jung said in an interview.
P. Gomboo at the Mongolian Research Institute of Meteorology and Hydrology said it was
impossible to predict if this year would be the worst in 100 years, saying that the
journalists “mixed it up.” “We never called this the coldest,” Gomboo said. “But our
outlook is definitely cold, and with unusually heavy snowfall.”
Source: UB Post
EXTREME WEATHER HALTS COAL TRANSPORT TO CHINA AMID SURGE IN EXPORTS
Some coal deliveries to China have been delayed from western Mongolia due to extremely
cold winter conditions. Khuvd Aimag was covered by between averages of 25 to 35
centimeters of snow this month, raising some concern that this could be the second time
in two years Mongolia must manage the winter phenomenon where extremely difficult
winter conditions kill off millions of animals. Known as a “dzud,” authorities have issued
alerts to 18 counties in eight provinces.
Meanwhile, the heavy snowfall resulted in delays to the coal being transported through the
Barlag Mountain Pass to China. Mongolia’s deliveries to coal comprised 11 percent of
China’s total imports as of September. Exports were up 64 percent last months with 11.4
million tons of deliveries. Mongolia hit its peak for coal imports in 2011, representing 47
percent of all imports of coal to China, following severe weather that cut off supply from
Australia.
Source: News.mn, Mongolia.GoGo.mn, SXCoal.com
ITALIAN FASHION INDUSTRY CRAVES MONGOLIAN CASHMERE
Italy is the biggest export market of Mongolian combed cashmere, data shows. Italy
consumed 74 percent of the total volume of cashmere during the first nine months of
2016. Just behind Italy was the United Kingdom and then China as the second and third
largest buyers. The total from the sale of combed cashmere from this year of USD26
million was less than last year, however.
Exports to Japan have climbed 3.8 percent following the consummation for the Economic
Partnership Agreement Ulaanbaatar signed with Tokyo that eliminated tariffs for imports
of finished cashmere garments and more from Mongolia. Japan took home 1.1 percent of
total Mongolian combed cashmere exports in the first three quarters of 2016.
Source: News.mn
AUTHORITIES PLACE TEMPORARY BAN ON EXPORT OF LIVE HORSES
Mongolian authorities have suspended the export of live horses until the end of spring next
year to prevent deaths during this year’s extremely harsh winter conditions. Horses may
travel great distances across the country for export through the Bichigt land port to China.
The Agency for Specialized Inspection ordered the ban to prevent unnecessary deaths from

10. exhaustion the lack of grass for horses to eat because of snow cover and and other
challenges because of the extreme winter. Horses even risks freezing their own eyes
during these extremely cold temperatures.
Source: Mongolia.GoGo.mn, Udriin Sonin
COMPANIES TASKED TO RESERVE 30 DAYS OF FUEL
Fuel importers have received orders to stockpile 30-days of fuel reserves orders from the
Minister of Mining and Heavy Industry. Minister of Ts. Dashdorj ordered 16 companies to
collect a combined 81,900 tons of fuel. In August of 2015 and 2016, companies imported a
total of 982,000 tons of petrol and diesel fuels.
Source: Montsame
2016 HARVEST MEETS NATIONAL DEMAND FOR WHEAT AND POTATOES
Mongolia grew enough wheat and potatoes this year to meet national demand, according
to the minister of food, agriculture and light industry, in the face of what looks to be an
extremely cold and difficult winter. Preliminary results of this autumn’s harvest were
presented to the Cabinet by Minister P. Sergelen on Wednesday. This autumn, Mongolia
harvested a total of 475,000 tons of grains, including 460 thousand tons of wheat. It also
grew 153,000 tons of potatoes, 93,000 tons of vegetables, 20,000 tons of oil plants and
50,000 tons of soiling crops.
Source: Montsame
5,100 TONS MEAT EXPORTED IN 2016, DISEASE OUTBREAKS AFFECT SALES
Outbreaks of disease among livestock continues to limit Mongolia’s potential for meat
exports. The Ministry of Food and Agriculture reported 5,100 tons of meat exports for
2016, but three outbreaks of disease resulted in temporary bans of imports from Mongolian
by the Chinese government that are still in place. Food and Agriculture Minister P.
Sergelen visited Russia this year to propose meat exports there, and is currently working
on legislation that would bring veterinary hospitals up to international standards to deal
with animal health issues.
Agriculture currently comprises 13.7 percent of GDP, or MNT3.7 trillion. Last year,
agricultural products represented 7.1 percent of total exports, or USD332.2 million.
Source: UB Post
GOVERNMENT CUTS CELLULAR SERVICE PAYMENTS FOR CIVIL SERVANTS
Mongolia is expected to save MNT265 million a year with its decision that it will no longer
pay for government workers’ bills for their mobile phones. Government has discontinued
its benefits paying for the cellular services of 107 workers from the Parliament offices, 52
central government workers and 89 officials for local municipalities.
This year, the cut is expected to save MNT90 million.
Source: Mongolian Economy
MONGOLIA TO RECEIVE FREE GRANT FROM WORLD BANK
The World Bank will give a USD250,000 grant to finance projects in Ulaanbaatar that aim
to improve heating and energy capacities in Mongolia. The main aim of the grant is to
combat Mongolia’s growing air pollution problem, with Ulaanbaatar having some of the
worst in the world.
Source: News.mn

11. MAYOR APPEALED FOR CITIZENS’ PARTICIPATION IN SNOW REMOVAL
Ulaanbaatar’s mayor has asked residents of the capital to pitch in with the snow removal
to make up for its only failures to do so last weekend. The capital city’s streets are coated
with up to 20 centimeters of packed ice after heavy snow fall last weekend. Ulaanbaatar
Mayor S. Batbold said the city this week had sent out 149 workers with 41 trucks to clear
the streets, although most of the snow had already hardened into ice since the weekend.
Meanwhile, there have been reports of over 200 accidents from the slippery roads,
according to the National Trauma Orthopedic Research Center.
This year’s winter looks to be particularly cold and dangerous, with this year marking 13
cases of snowfall—or as many as the total instances from last year. “The weather
departments are giving out prognosis that this snowfall is likely to continue for a while,”
said Batbold.
Source: Montsame, Mongolia.GoGo.mn
POLITICS
FORMER SPEAKER ENKHBOLD TO CONTINUE LEADING UNTIL DECEMBER
Former Parliamentary Speaker Zandaakhuu Enkbhold will stay on as the leader of the
Democratic Party until a successor is chosen. The Democrats' National Consultative
Committee granted the duties to Enkhbold, who was voted out of office last June, at a
party meeting on 16 November. Enkhbold resigned after a stunning defeat by the
Mongolian People’s Party, taking more than 85 percent of the legislature.
Source: News.mn
FORMER PM BAYAR DENIES OFFSHORE ALLEGATIONS
Former Prime Minister S. Bayar has denied allegations that he held money in offshore
accounts while being vetted for a diplomatic post at the United Kingdom. Some members
of Parliament have balked at the appointment of Bayar, who headed government from
2007 to 2009, as the next ambassador to the United Kingdom because of allegations from
earlier this year that he secretly has offshore accounts. "I don’t have an offshore
accounts,” Bayar said. “I think that politicians should not own offshore accounts. I abide
by the law and am fully prepared to be investigated regarding the offshore allegations."
The name “S. Bayar” was included in an online database published by the International
Consortium of Investigative Journalists (ICIJ) from leaks known as the Panama Papers.
However, there was already one case of mistaken identity regarding a Mongolian official
linked to the leak.
Source: News.mn
PM PROMISES TO RECTIFY PROBLEMS OUTLINED IN US EMBASSY REPORT
Prime Minister Erdenebat is working to address issues outlined in the U.S. Embassy’s
summary of investment in the country. “Investment Climate Statement,” released last
June, is an annual summary of how Mongolia is dealing with investors and the degree to
which businesses can run freely. “The new government has acted quickly both to publicly
define problems and to address them,” said U.S. Ambassador Jennifer Galt said on 22
September.
She added, “Government leaders have met with investors and vowed to correct missteps
that contributed to Mongolia’s economic decline.”
Read the full report here.

12. Source: Mongolian Business Database
26 NOVEMBER DECLARED PUBLIC HOLIDAY
The Cabinet has called 26 November a public holiday for the founding of Mongolia’s
democracy. Friday will be a day off preceding Saturday, which is a holiday observing
Mongolia's independence.
Source: Udriin Sonin
MPP DIVIDED ON LEADERSHIP FOR ERDENET MINE
A month has passed with no appointment made for the next director of Erdenet Mining
Corp. amid party infighting. Former food and agriculture minister T. Badamjunai, a close
associate of party leader Miyeegombo Enkhbold, was rejected amid some conflicts of
interest. He is the father-in-law of a board member for Trade and Development Bank of
Mongolia LLC (TDB), which helped finance the purchase of a 49 percent shareholding in the
mine. The owner of the company that made the purchase, Mongolian Copper LLC, is also
on TDB’s legal staff.
Other rejected candidates are G. Ganzorig; the head of Altjin Group, G. Altan, and former
minister of mining and energy, D. Zorigt.
Source: Udriin Sonin
GOVERNMENT HAS NOTHING TO DO WITH DALAI LAMA’S VISIT, FM SAYS
The government has denied any connection to this week’s visit by the Dalai Lama to
Mongolia, which could throw a wrench in talks with China for a bail out from the current
economic crisis. The Dalai Lama is seen as a dangerous separatist by China, and it made a
strong statement last week advising Mongolia not to permit him into the country. “The
Government of Mongolia has nothing to do with the visit,” said Foreign Minister Ts. Munkh-
Orgil.
The Buddhist leader, who currently resigns in India, came to Mongolia at the invitation of
the Gandantegchinlen Monastery, he added.
Source: Montsame
CHINA SAYS DALAI LAMA'S MONGOLIA VISIT COULD HARM TIES
China urged Mongolia on Sunday to take steps to protect the two countries' relations after
the Dalai Lama visited the central Asian country at the weekend, despite Beijing
repeatedly voicing its opposition. Chinese foreign ministry spokesman Geng Shuang, in a
statement, said Mongolia should "adopt effective measures to eliminate the negative
effects of the Dalai Lama's visit, in order to prevent the disruption of the healthy
development of China-Mongolia relations." Mongolia had repeatedly ignored China's
cautions against allowing the visit, much to Beijing's dissatisfaction, the statement said.
Beijing frequently expresses its anger with countries that host the 81-year old Nobel Peace
Prize winner, who fled to India in 1959 following a failed uprising against the Chinese.
China regards the Dalai Lama as a separatist, though he says he merely seeks genuine
autonomy for his Himalayan homeland Tibet, which Communist Chinese troops "peacefully
liberated" in 1950.
Source: Reuters
N. KOREA DEFENDS WORKER EXCHANGE PROGRAM
North Korea has defended its right to send workers to Mongolia amid some concerns about

13. their treatment and welfare in Mongolia, in addition to some who claim that Mongolia and
other countries should no longer accept because of the country’s increasingly aggressive
behavior. Mongolia currently employs about 2,500 North Korean workers for jobs in
construction, textile production and more through a contract between its and Mongolia’s
governments.“Our workers are working in foreign countries only guided by their free will
and demands,” said North Korean Ambassador Hong Kyu in an 18 November statement.
The statement adds that these workers are in full compliance with Mongolian law and pay
into Mongolia’s social welfare programs. “Providing them (North Korean workers) with
favorable conditions to work and live is a priority provision of contract made between
corresponding companies in strict compliance with the pertinent legislation and
regulations of the given country.”
Source: Montsame
AMBASSADOR HANDS OVER HUMANITARIAN ASSISTANCE TO NORTH KOREAN SIDE
Ulaanbaatar has donated warm blankets and clothes to North Korea following disastrous
floods that rocked the country last summer. North Korea’s deputy foreign minister of
foreign affairs, Ri Kil Song, expressed gratitude to the donation from Mongolian
Ambassador to North Korea, S. Tsoggerel.
Source: Montsame
MONGOLIA SELECTED AS VICE CHAIR OF UNESCO’S MEDIA DEVELOPMENT GROUP
The U.N. Education Science and Communication Organization (UNESCO) has appointed
Mongolia as its vice chair of its global initiative for developing mass media in countries.
Kh. Naranjargal will represent Mongolia’s position as the vice chair position of the 39-
member International Programme on the Development of Communication until 2017.
Source: Montsame
AUTHORITIES ARREST SISTER OF FORMER PM ALTANKHUYAG
The younger sister of former prime minister Norov Altankhuyag has been arrested. The
Independent Agency Against Corruption has been running an investigation into Altankhuyag
and has called in relatives and advisers for questioning. The IAAC declined to answer
question about the arrest of Altankhuyag’s sister, N. Narantsetseg, on 17 November at the
Chinggis Khan International Airport while attempting to travel to Germany, According to
her attorney, O. Chuluunchimeg, the courts have refused her client’s release on the basis
that she had been arrested with no justification. “I think Mongolian judicial authorities has
became afraid of IAAC,” Chuluuchimeg said.
Courts have found a former senior advisor, L. Gansukh, guilty corruption around a coal
program. Altankhyag’s daughter A. Saranzaya is under investigation for crimes related to
the same program while her husband G. Denzen is suspected of defrauding state-owned
Erdenes Tavan Tolgoi LLC. Altankhuyag’s wife E. Selenge was stopped and given a travel
ban also before attempting a trip to Germany on 5 November.
Source: Udriin Sonin
DALAI LAMA SAYS WILL VISIT TRUMP IN MOVE BOUND TO ANGER CHINA
Exiled Tibetan spiritual leader the Dalai Lama said on Wednesday that he would visit U.S.
President-elect Donald Trump, a meeting that would infuriate Beijing which views the
Nobel Peace Prize-winning monk as a dangerous separatist. Speaking during a visit to
Mongolian capital Ulaanbaatar and asked about the U.S. election, the Dalai Lama said he

14. had always considered the United States a "leading nation of the free world". "I think there
are some problems to go to United States, so I will go to see the new president," he told
reporters, without elaborating.
The Dalai Lama, speaking in English, brushed off some of the U.S. election campaign
rhetoric. "Sometimes I feel during election the candidate has more freedom to express.
Once elected, having the responsibility, then they have to tell you their sort of vision,
their works according to reality."
Source: Reuters
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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]
Year 2015 *1.9% [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
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]

15. 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 – 23 November 2016
Currency Rate
U.S. dollar USD 2,451.72
Euro EUR 2,604.83
Japanese yen JPY 22.08
British pound GBP 3,042.71
Hong Kong dollar HKD 316.12
Chinese Yuan CNY 355.66
Russian Ruble RUB 38.26
South Korean Won KRW 2.09