Bcm news wire issue 417 (1)

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 417 – March 4, 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:
 Khan Resources asks Ottawa to stop Mongolian aid pending settlement;
 Xanadu Mines on bonanza gold discovery streak in Mongolia;
 Gobi Coal & Energy to expand across energy resources value chain;
 Kincora focuses on new license after ‘dropping’ another;
 MIAT to launch local flights in mid-April;
 Air Astana flies to Mongolia, Iran;
 Flights between Manzhouli and UB resumes;
 Mongolian engineers create a residential hybrid energy system;
 MNB cancels Jargal de Facto’s show after interview with dismissed judge;
 Hogan Lovells, 5.11 execs join NAMBC board;
 Narantuul catches fire again;
 Turquoise Hill could be the new black for acquisitive miner Rio Tinto;
 Oyu Tolgoi builds sports hall at Manlai Soum.
Economy:
 Mongol Bank: currency auctions, swaps, 1-week bills, T-bills;
 Modi’s USD1 bn credit line to Mongolia to start rolling soon;
 Mongolia in the clear from Russian debt;
 Parties allowed up to MNT3.4 bn for campaign budgets;
 Government lists mining products exempt from VAT;
 Government tax revenue falls by a quarter;
 Khushig Valley airport on track to finish for ASEM;
 Sudden cold and snow storm expected from 4 March;
 Livestock in danger after drought, harsh winter;
 Traffic accidents fall by 40%;
 ASEM info center opens at Montsame;
 Mongolia to hire students to work ASEM;
 Livestock smallpox outbreak spreads to the capital;
 PM orders expanded Internet access, lower prices;
 ADB experiments with TV drama to promote financial education;
 Mongolia and China unite efforts against desertification;
 UB needs USD400 mn for water plant;
 Gers a growing part of urban landscape;
 Child jockeys injured at horse race;
 Moody’s cuts China outlook and affirms rating.

Politics:
 Fines to be handed out for spitting in public;
 Health Ministry to be party to construction concession;
 MRA head, top nuclear inspector appointed;
 Olympic team leaders chosen;
 Baasankhuu vows to resign if loses his proposed debate with PM;
 Education, defense to improve with help from Italy and France;
 Mongolia seeks help from U.N. to combat drug trade;
 Young members of the MPRP protest actions of the IAAC;
 Suspects arrested for carrying ‘ice’;
 Mayor's office issues decree to prevent crime;
 Khentii province clamps down on the “colored stone” trade;
 New details revealed on death of Mining Journal's editor-in-chief;
 Mongolia: time to rethink your risk assessment?—EDITORIAL.
BCM Updates:
 Announcements;
 BCM BGI Q4-2015;
 New Mongolian Laws;
 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News
 BCM in the University Classroom Series;
 Cooperation & Member discounts;
 Websites Update - Presentations, Mongolia Reports, Interviews;
 Social Networks;
 Member Vacancies.
Economic Indicators:
 Inflation;
 Central Bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
SPONSORS
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BUSINESS
KHAN RESOURCES ASKS OTTAWA TO STOP MONGOLIAN AID PENDING SETTLEMENT
A Canadian mining company wants the federal government to suspend millions of dollars in foreign
aid to Mongolia until the Asian country pays for taking the firm’s uranium mine and giving it to the
Russians. The request, made Tuesday, comes exactly one year after an international trade tribunal
told Mongolia to give Toronto-based Khan Resources Inc. more than USD100 million in compensation
for the lost uranium mine, and is the latest gambit in a long-running dispute sparked by cold war-
era geopolitics. It also coincides with a major mining convention in Toronto next week, where
Mongolian officials plan to pitch their country as a great place for Canadian and other global mining
companies to invest.
“Why is the government of Canada continuing to invest and prioritize Mongolia for foreign aid?”
Khan president Grant Edey said. “They kicked us out. And expropriation without compensation is
against international law. So why should we promote bad actors?”
Source: Financial Post
XANADU MINES ON BONANZA GOLD DISCOVERY STREAK IN MONGOLIA
Xanadu Mines Ltd. has revealed some spectacular rock chips from the newly discovered quartz-
carbonate-sulphide veins at Oyut Ulaan copper-gold project in Dornogobi Aimag. Bonanza grade
results—a gold industry term given to samples returning high grades of gold—from the project 90
percent owned by Xanadu includes 305.8 grams per ton of gold, 171.6 grams and 123.2grams. The
multiple high-grade rock chip samples define three parallel epithermal lode structures within 1.5
kilometers.
“We had the belief the geology displayed all the ingredients required for significant shallow high-
grade gold mineralization, which has been confirmed by this surface sampling,” said Andrew
Stewart, chief executive officer. “The team is now developing plans for accelerated exploration as
there is tremendous scope for a very significant discovery in this area.”
Source: Proactive Investors
GOBI COAL & ENERGY TO EXPAND ACROSS ENERGY RESOURCES VALUE CHAIN
Gobi Coal & Energy LLC is exploring opportunities throughout the energy resources value chain in
hard coking coal, coking coal mine consolidation, and graphite and uranium development and
mining both inside and outside of Mongolia. "We are excited about the progress our company has
achieved since 2014 towards expanding into other energy resources in a weak coal price
environment,” said Gobi Coal Chairman Mohammed Munshi.
During 2015, Gobi Coal completed a drilling program at its primary coking coal mine, Shinejinst,
revealing a 44-meter thick coal seam with low volatile materials. Lab testing of samples confirmed
hard coking coal properties and the potential for a new sub-basin at Shinejinst. Successful water
testing confirmed that the area has significant water potential, which is important for future mine
development. Beginning in 2015, Gobi Coal analyzed numerous uranium acquisition opportunities
with a focus on the China market.
Source: Gobi Coal & Energy
KINCORA FOCUSES ON NEW LICENSE AFTER 'DROPPING' ANOTHER
Kincora Copper Ltd. will discontinue work at one of its licenses after securing a new license where
its sees more promise, it said in a 1 March statement. Kincora secured a new license, called Ulaan
Khudag, that has shown 2 percent copper and 0.25 grams per ton of gold from samples. The
Northern license, also recovered from the government, “has been dropped,” said the company, as
it “continues to review prospective Mongolian opportunities.
“The Company continues to seek to advance our existing prospects in a capital responsible manner,
further expand our Mongolian footprint and aggressively pursue more advanced opportunities in
other jurisdictions where we feel we have a competitive advantage to create shareholder value,”

said Sam Spring, president and chief executive officer.
Source: Kincora Copper Ltd.
MIAT TO LAUNCH LOCAL FLIGHTS IN MID-APRIL
MIAT Mongolian Airlines has received orders from the government to work out a plan to serve
regular flights to western Mongolia by mid-April, said Prime Minister Chimed Saikhanbileg at a 24
February press conference. Flights would travel between Ulaanbaatar and Bayan-Ulgii, Uvs and
Gobi-Altai Aimags said Saikhanbileg in a joint statement with MIAT's chief executive officer, T.
Tamir, who said he would work with the Civil Aviation Authority to provide flights by 15 April. He
added that it would work with the smaller private airline, Aero Mongolia LLC, to service the routes.
The air routes are meant to be complementary to the roads paved between the western provinces
in recent years. Although they allow for more travel and expanded trade, it is still a long arduous
journey for passengers traveling on land.
Source: Montsame
AIR ASTANA FLIES TO MONGOLIA, IRAN
Kazakhstan’s Air Astana will launch its first flights to Mongolia and Iran this summer. Commencing in
early June, the airline will offer three weekly flights from Kazakhstan’s capital city, Astana, to
Ulaanbaatar. Services will operate every Monday, Thursday and Sunday using a 97-seat Embraer
E190 aircraft.
Also in June, Air Astana will commence its first ever flights to Iran. The new route from
Kazakhstan’s largest city, Almaty, to the Iranian capital Tehran will run three times a week. Air
Astana has also announced that it will launch a fourth daily frequency on its Astana-London route in
June.
Source: Travel Daily Media
FLIGHTS BETWEEN MANZHOULI AND UB RESUMES
A direct flight linking Manzhouli, China's largest land port with Russia, with Ulaanbaatar resumed on
29 February. Flights between the two localities were launched in October 2013 by a Mongolian
airline. Due to a drop in interest for flights the route was halted during the Chinese Lunar New Year
holiday this year, according to an official with Manzhouli's Xijiao International Airport.
Manzhouli City, which borders Mongolia and Russia, in north China's Inner Mongolia Autonomous
Region, processes more than 70 percent of all the land cargo between China and Russia.
Source: Xinhua
MONGOLIAN ENGINEERS CREATE HYBRID ENERGY SYSTEM FOR GERS
Mongolian engineers at the Organic Energy Group and Green City Association on 26 February
unveiled a new hybrid energy system for informal housing that they claim will cut down on air
pollution. The air pollution from coal burned at the power plant located in Ulaanbaatar and in the
ger districts that lack access to Mongolia's central heating system have caused severe health effects
in Mongolia. Organic Energy hopes to cut down on the amount of coal families must burn for
warmth, while saving money using their hybrid system powered by renewable sources [Source does
not specify what kinds -ed] and electricity.
“It takes 14,380 kilowatts of energy per year to heat a ger with five walls, and those households pay
MNT301,000 annually to the Ulaanbaatar Electricity Distribution Network,” said project engineer
Kh. Unur-Otgon. “By using this equipment, the cost of power per kilowatt can reach MNT25, or
paying MNT63,000 per household.”
Source: UB Post
MNB CANCELS JARGAL DE FACTO’S SHOW AFTER INTERVIEWING DISMISSED JUDGE
Mongolian National Broadcaster (MNB) has canceled an interview program hosted by the economist
and television personality D. Jargalsaikhan after his interview with a dismissed court official caught
up in a political storm. Jargalsaikhan's show broadcast an interview with the former head of the

Constitutional Court, J. Amarsanaa, on 22 February on Mongolian Medee—a branch of MNB. The
former judge was dismissed in January after a court decision that suspended the government's 8
percent subsidized mortgage lending program. Parliament Speaker Zandaakhuu Enkhbold, who
vowed to punish those responsible for halting the program, called a special session of Parliament
during a legislative recess in February to confirm the resignation.
The Mongolian People’s Party have been vocal critics against Amarsanaa's dismissal and boycotted
the special session where lawmaker's confirmed his resignation.
Source: UB Post
HOGAN LOVELLS, 5.11 EXECS JOIN NAMBC BOARD
Executives from the Ulaanbaatar branch of global legal practice Hogan Lovells LLP and an American
brand for technical work wear have joined the board of the North America-Mongolia Business
Council. Hogan Lovell's managing partner, Chris Melville, and managing director of sales at 5.11,
Brian Tipp, “bring important new strengths and experience to our board, and we’re delighted to
welcome them,” said NAMBC Chair Pamela Slutz.
Melville has been based in Mongolia since 2012. He has a broad-based practice, including advising
foreign investors, Mongolian clients and the Mongolian government on corporate, joint venture,
banking and finance, and infrastructure projects. Brian Tripp is managing director of sales and
marketing for Asia Pacific at 5.11 Tactical, a manufacturer, marketer and supplier of innovative
purpose built apparel and gear to public safety, military, industrial and retail sectors.
Source: NAMBC
NARANTUUL CATCHES FIRE AGAIN
Narantuul international market caught fire at around 02:00, the National Emergency Management
Agency (NEMA) reported. The market will be closed for three days after a fire went ablaze at a
section where silk and other fabrics are sold. The flames were fully extinguished by NEMA staff at
around 07:00 on 3 March.
Traders at the market have complained about troubles at the market for over a decade, including
another fire back in 2013. This is the second time the market has caught fire during the middle of
the night, and none of the six or seven guard stations there noticed the fire as it occurred.
Source: Mongolia.GoGo.mn
TURQUOISE HILL COULD BE THE NEW BLACK FOR ACQUISITIVE MINER RIO TINTO
Almost a decade after Rio Tinto Group took its first bite of Ivanhoe Mines Ltd., speculation is
building that Rio may seek to grow its stake in the company now known as Turquoise Hill Resources.
Increasing a company's stake in a jointly-owned mine is one of the lowest-risk acquisitions, given
the buyer already has full knowledge of the asset it is bidding for. Goldman Sachs banker Luke
Gordon is rumored to be advising Rio on a process to increase its stake in Turquoise Hill, but Fairfax
Media was unable to confirm that because Gordon declined to speak from his Toronto office on
Wednesday.
But Mongolia remains a risky place to invest in, and the Oyu Tolgoi copper-gold mine remains the
focus of fierce public debate in the developing nation. Rio may want to know the outcome of the
June elections before deciding whether it is ready to take another bite of Turquoise Hill.
Source: Sydney Morning Herald
OYU TOLGOI BUILDS SPORTS HALL AT MANLAI SOUM
Residents of Manlai Soum, Umnugobi, have access to a new sports hall as it officially opens on 26
February. The modern facility funded by Oyu Tolgoi LLC will be used by the local school for physical
education classes, for hosting regional sporting competitions, and be open to local residents for
leisure activities.
“By supporting education, health and wellbeing, and skills development, particularly through our
Cooperation Agreement with our partner communities, we can ensure that human development
flows from the region’s natural wealth,” said Oyu Tolgoi President and Chief Executive Officer

Andrew Woodley. “The sports hall is another example of this sustainable and long term
relationship.”
Source: Oyu Tolgoi LLC
SPONSORS
Oxford Business Group The New Media Group
Mongolian Economy Magazine
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS
The Bank of Mongolia on 1 March sold USD8.25 million (out of USD31.55 million in bids) and CNY17.5
million to central banks in currency auctions for closing exchange rates of MNT2,035 and
MNT310.59, respectively. Also that day, it accepted tugrug swaps with commercial banks for an
equivalent of USD20 million. It rejected U.S. dollar swaps totaling USD20 million.
The Bank of Mongolia on 2 March issued 1-week bills worth MNT62 billion at a weighted interest rate
of 12 percent. Also that day, the central bank received MNT7.5 billion in bids for the auction of 28-
week treasury bills with a face value of MNT7.5 billion (compared with an original value of MNT15
billion) that were sold at a discounted price with an average weighted yield of 14.93 percent.
Source: Bank of Mongolia
MODI’S USD1 BN CREDIT LINE TO MONGOLIA TO START ROLLING SOON
India and Mongolia are likely to kick off talks in March on the USD1 billion credit line, which Prime
Minister Narendra Modi announced during his visit to the country in May 2015. “We are expecting a
delegation from Mongolia to arrive in India in March, to lay down the priority areas for the mega-
credit line as declared by Prime Minister Modi,” an official familiar with India’s policy for Mongolia
said. The official added that the talks would likely focus on infrastructure, IT, and educational
projects.
India has an operational credit line of USD20 million for Mongolia and out of that USD1.5 million is
being utilized for an IT consultancy project. The credit line is part of a strategy to emerge as the
“third pole” in Mongolia’s international relations which so far have been dominated by China and
Russia.
Source: The Hindu
MONGOLIA IN THE CLEAR FROM RUSSIAN DEBT
Mongolia this week has resolved all of its debt obligations to its northern neighbor, Russia. Prime
Minister Chimed Saikhanbileg handed over a document to Russian Ambassador I. I. Azizov that made
official Mongolia's full repayment of its debt on 29 February after the Ministry of Finance repaid
Mongolia's remaining USD3.8 million in debt. “By extinguishing this debt, I believe that many

economic opportunities are opening,” said Saikhanbileg.
PARTIES ALLOWED UP TO MNT3.4 BN FOR CAMPAIGN BUDGETS
Parties will be permitted to spend up to MNT3.4 billion in this year's election. Voters will be
heading to the polls on 29 June in what is expected to be a close race between Prime Minister
Chimed Saikhanbileg's Democrats and the opposition Mongolian People's Party. The budget was set
by the Mongolian National Audit Office.
GOVERNMENT LISTS MINING PRODUCTS EXEMPT FROM VAT
Mongolia has revealed a list of upstream mineral goods, or “final mining products”, that will be
exempt from value-added tax. A government resolution lists five types of washed and enriched coal
to receive zero VAT during trade.
Source: PricewaterhouseCoopers
GOVERNMENT TAX REVENUE FALLS BY A QUARTER
Individuals' contributions to government tax revenue have fallen about 10 percent as incomes fell
during this period of slowing growth. In January, General Government Budget saw a deficit of
MNT79.8 billion, according to the State Registration and Statistics Office, or 5.5 percent less than
the same period in 2016. Tax revenue fell 25.2 percent, with individual tax payers' contributions
falling 9.9 percent.
Source: Montsame
KHUSHIG VALLEY AIRPORT ON TRACK TO FINISH FOR ASEM
The new international airport set to replace Chinggis Khan airport is on track to finish before the
arrival of guests for the Asia-Europe Meeting summit to be held in Ulaanbaatar in July. The project
to build the new international airport at Khushig Valley is 5 percent ahead of schedule, said lead
project planner N. Enkhbat, and is due to complete by 1 July. “We are working to complete our job
within this year,” he said.
Contractors have thus far been paid JPY30 billion (USD264 mn) for the airport's construction.
Mongolia received JPY28.8 billion (USD253 mn) with 0.2 percent interest over 40 years in 2008 and
JPY36.8 billion (USD 324 mn) with 0.1 percent annual interest over 20 years to finance the airport.
A Japanese consortium that includes the Narita and Haneda airports, Mitsubishi Group and Japanese
Airlines have submitted a proposal for running the airport, but timing is running out before
government must decide, said Enkhbat. “If we do not decide, the airport management team soon
will be late,” he said.
Source: Undesnii Shuudan
SUDDEN COLD AND SNOW STORM EXPECTED FROM MARCH 4
Chilling temperatures and snow storms are expected to return after a week's reprieve from difficult
weather conditions that threaten a natural disaster for the country. Mongolia's government is on
alert to protect its nomadic herders from widespread animal deaths as a result of the tough winter
conditions seen this year—a regular natural disaster called a “dzud” by locals. The Information and
Research Institute of Meteorology this week warned of snow and dust storms expected across the
country for 3 and 4 March that would likely make travel difficult.
Weather forecasters predicted snow storms in western Mongolia until 5 March, with night
temperatures falling up to 24Celsius in the west and 19Celsius in the east.
LIVESTOCK IN DANGER AFTER DROUGHT, HARSH WINTER
The Mongolian herder gazed out of his felt tent at the half-eaten carcass of what was his riding
horse, now lying in blood-stained snow and being devoured by hungry dogs. "I had 700 head of

cattle," Huyag Tserennyam said while staring out into the white wilderness in the remote
mountainous area of Ulziit. "I've lost 150 so far."
It has been a harsh winter in Mongolia following an especially dry summer — a weather pattern
unique to the country and known here as a "dzud" (pronounced "dzuhd")—killing tens of thousands of
livestock and prompting the Mongolian government this week to formally launch a dzud appeal,
seeking foreign aid, for the first time in six years. Mongolia's government announced its dzud appeal
on Tuesday. The Asian Development Bank is contributing USD3 million in assistance toward local
infrastructure and risk management plans, including helping districts prepare shelters for herders,
as well as emergency training. Further assistance is coming from Red Cross societies of Britain,
Japan and Finland, said Purevjav Jambalragchaa, a coordinator with the Mongolian Red Cross
Society.
Source: AP
TRAFFIC ACCIDENTS FALL BY 40%
The number of fatalities from traffic accidents has fallen 40.7 percent for the month of January
compared with last year, according to statistics [Source does not cite details -ed]. Mongolia
registered 174 traffic accidents in January 2015 compared with 114 this year, while the number of
deaths were 27 and 16, respectively. Injuries are also down, falling 43.5 percent.
Source: News.mn
ASEM INFO-CENTER OPENS AT MONTSAME
Montsame News Agency is hosting a new information center for the upcoming Asia-Europe Meeting
(ASEM) summit scheduled for 15 and 16 July. Mongolia is making careful preparations for the ASEM
event, which is expected to be one of the biggest in Mongolia's history. The information center that
opened at the Montsame building on 1 March will serve as an information hub for journalists, said
the chairman of the ASEM Preparation Office, D. Gankhuyag.
Source: Montsame
MONGOLIA TO HIRE STUDENTS TO WORK ASEM
Students will be able to earn wages by helping the government make its preparations for the Asia-
Europe Meeting (ASEM) summit scheduled for July, the Mongolian Students Federation announced on
29 February. A survey [Source does not cite details -ed] shows that 72 percent of students would
like some form of employment, with many claiming that since September 2015 they have not
received the MNT70,000 a month allowance promised by government. Positions as guides
interpreters and coordinators for cultural events will be available to students.
The Ministry of Finance has stated that it has not been able to finance the allowances, but budget
approval may come in April.
Source: News.mn
LIVESTOCK SMALLPOX OUTBREAK SPREADS TO THE CAPITAL
Authorities have put a quarantine in Ulaanbaatar's Bayanzurkh District following an outbreak of a
form of small pox that affects livestock. The smallpox that spreads between goat and sheep, but
not humans, has spread throughout Mongolia's eastern provinces, according to the Ulaanbaatar
Emergency Commission, to Sukhbaatar, Khentii, Dornod, Dornogobi and Tuv Aimags. The governor
of Bayanzurkh issued a 21-day quarantine in the 20th khoroo, warning against travel to the area.
The district has also banned the sale of animal hides and other raw materials.
Source: Undesnii Shuudan, Udriin Sonin
PM ORDERS EXPANDED INTERNET ACCESS, LOWER PRICES
Prime Minister Chimed Saikhanbileg has promised to put Internet costs in rural Mongolia on par with
that of Ulaanbaatar. Mongolia has done well bringing digital access to nomads and residents of rural
towns throughout the country, but the scarcity of users and a lack of infrastructure means higher
costs and slower digital speeds. Saikhanbileg in a 2 March press conference said he had given orders

to improve service in the countryside as well as roll out the 4G digital Internet service that the
government has promised to put online this year. He told the heads of the IT, Post and
Communication Authority and Communication Network LLC to begin employing these developments
by 15 March.
Source: Montsame
ADB EXPERIMENTS WITH TV DRAMA TO PROMOTE FINANCIAL EDUCATION
People get hooked on stories. The multi-billion dollar film and video industries have gotten this
down to a profit-making science. Development agencies have also maximized this penchant for
stories to promote behavior changes by couching information in compelling narratives. In Mongolia,
a project assisted by Asian Development Bank (ADB) and the Japan Fund for Poverty Reduction used
storytelling to help people protect themselves through saving and financial planning.
After reviewing survey results that showed 80 percent of the population cited television as their
main source of information and widespread popularity for soap operas, the project developed a
drama called A Course that Helps You Become a Millionaire. The 24-episode show that was last
year's most-watch program showed six figures from different socio-economic backgrounds striving to
enhance their personal financial management skills by attending the course. Throughout the
episodes, the characters faced and solved financial challenges, mostly related to bank loans and
savings.
Source: Montsame
MONGOLIA AND CHINA UNITE EFFORTS AGAINST DESERTIFICATION
Mongolia and China are partnering against the so-called yellow storms expanding Mongolia's arid
territory. Mongolia has been especially vulnerable to the effects of climate change, which is a key
component for desertification here, in addition to human activities. Mongolia and China are now
planning to spend CNY3.9 million monitoring and evaluating the situation as chemicals from
industrial production adds to the problem.
Environment, Tourism and Green Development Minister N. Battsereg in a meeting with his Chinese
counterpart Chin Jining during a visit suggested they work together for the disposal of chemical
waste exacerbating desertification in Mongolia. The chemicals are mostly a byproduct of oil
production from PetroChina Daqing Tamsag LLC, as well as Zongheutian, which together produced
500 tons of chemical waste in 2014, said Battsereg.
Source: Montsame
UB NEEDS USD400 MN FOR WATER PLANT
A water treatment complex planned will cost up to USD400 million and the relocation of several
families between Gachuurt and Nalaikh, according to the Ulaanbaatar administration. The Ministry
of Environment, Green Development and Tourism will meet with locals before deciding on the
project, which is expected to span three years. The issue of financing has also yet to be resolved.
Source: News.mn
GERS A GROWING PART OF URBAN LANDSCAPE
The suburbs of Mongolia’s capital, Ulaanbaatar, has seen a steady increase in construction of
traditional nomadic Mongolian gers, or yurts. The problem is, they were never designed for city
living. Many of the city’s migrants are former nomadic herders who lost their animals over a series
of harsh winters. From 1998-2002, more than 11 million livestock — including goats, yaks, horses
and cows—died, leaving many nomadic families without a livelihood. The gers were originally built
for the remoteness of Mongolia’s vast steppe, but today, hundreds of thousands can be seen in the
suburbs of capital Ulaanbaatar.
In the past, the government thought the problem could be solved by moving the residents into
apartments, but apartments are often still too expensive for many. Ger residents are excited about
the government’s new policy, saying the plan is more practical than moving them into apartments.
Source: CCTV America

CHILD JOCKEYS INJURED AT HORSE RACE
More than 10 children were injured at a horse race in Tuv Aimag amid growing concerns for the
safety of child jockeys. Tuv Aimag's governor in February ordered the ban of races this winter out of
concern for the safety of children younger than 10 years old riding in them. At the race held on 28
February accidents occurred because of the snow on the ground and patches of ice that led to
injuries for 10 children and 3 horses. Organizers said the injuries were not serious, although some
children were seen riding without the proper protective equipment.
Source: Unuudur
MOODY’S CUTS CHINA OUTLOOK AND AFFIRMS RATING
Moody’s Investors Service cut its outlook for the Chinese government’s credit rating, due to growing
concerns about a slowing economy, shrinking foreign reserves and a weakening currency. China is
Mongolia's top trade partner and has helped the country avoid a currency crisis with a currency
swap between the People's Bank of China and the Bank of Mongolia. The U.S. ratings firm said it
lowered its outlook on China’s credit rating to negative from stable, while affirming the still-
respectable Aa3 grade on its sovereign debt. Moody’s cited China’s rising debt, the continuing
depletion of its foreign reserves, and doubts about Beijing’s ability to carry out economic reforms
as reasons for its move.
A negative outlook typically indicates a higher chance of a rating change over the medium term
and, on average, a rating change follows within a year. About half of the time, issuers are
downgraded or put on review for downgrade.
Source: Wall Street Journal
POLITICS
FINES TO BE HANDED OUT FOR SPITTING IN PUBLIC
Frog in your throat? Got a cold? Keep your fluids to yourself or you may face a fine. Parliament on
29 February passed a new law that orders fines of between MNT5,000 and MNT1 million to
individuals caught spitting in the streets. Enforcing the law will be police as well as a coalition of
activists and volunteers.
Source: News.mn
HEALTH MINISTRY TO BE PARTY TO CONSTRUCTION CONCESSION
The Ministry of Health and Sports will see to completion a project to build a new hospital
specifically for treating civil servants as patients. The ministry will utilize a build-operate transfer
agreement for the hospital with private partner, University Hospital LLC.
Source: Montsame
MRA HEAD, TOP NUCLEAR INSPECTOR APPOINTED
Mongolia has appointed D. Uuriintuya as the new head of the agency responsible for approving
licenses for minerals exploration and mining, the Mineral Resource Authority. Also receiving
appointment was acting head of the General Agency for Specialized Inspections, Ts. Sharavdorj, as
the general inspector for nuclear and radioactive monitoring.
Source: Montsame
OLYMPIC TEAM LEADERS CHOSEN
The Mongolian National Olympic Committee has appointed its deputy president, J. Khatanbaatar, to
lead the Mongolia team for the Rio games in 2016. Khatanbaatar holds the title of “Doctor of the
People” as well as being a medical practitioner and professor. The deputy leader will be Ts.
Damdin, a silver medalist from the 1980 Moscow Olympics, who is also deputy president of the
Mongolian National Olympic Committee.
Source: News.mn

BAASANKHUU VOWS TO RESIGN IF LOSES HIS PROPOSED DEBATE WITH PM
Prime Minister Chimed Saikhanbileg's most outspoken critic has promised to put his job on the line
with his challenge for a public debate. The Mongolian People's Revolutionary Party's O. Baasankhuu
campaigned in Parliament all last year for Saikhanbileg's resignation, but failed when the vote
finally came to legislators. He has now called the prime minister out for a debate after seeing all of
the 32 bills he's proposed denied by the Cabinet Secretariat. Those bills included one he said would
have supported industry in Erdenet as well as another for protecting the heritage of cities and
villages. “I want to prove that my bills should be accepted by the government,” he said.
“I will reject my seat as MP,” if he loses the debate, said Baasankhuu, adding that he still has a law
career to fall back on. “It is no big deal to become politically “dead”, if I reject my seat. I am a
trained lawyer and have worked in this profession. I was not born a politician.”
Source: News.mn
EDUCATION, DEFENSE TO IMPROVE WITH HELP FROM ITALY AND FRANCE
Mongolia has made official partnership agreements with European partners, France and Italy, to
develop areas such as education and defense. The Cabinet Secretary on 29 February approved
intergovernmental agreements with France to cooperate in the fields of education, culture, science
and ICT as well as plans for a joint-scholarship program. The agreement with Italy will see
cooperation in defense, but will also require a signature from Prime Minister Chimed Saikhanbileg.
Source: Montsame
MONGOLIA SEEKS HELP FROM U.N. TO COMBAT DRUG TRADE
A U.N. official has discussed the possibility of sending officers who specialize in combating narcotics
trade to Mongolia. The executive director for the U.N. Office on Drug Crimes, Yuri Fedotov,
discussed sending crime-fighting representatives during a meeting with the State Secretary for
Justice, J. Bayartsetseg, while in Vienna.
Source: Zuunii Medee
YOUNG MEMBERS OF THE MPRP PROTEST ACTIONS OF THE IAAC
Members of a youth group associated with the Mongolian People's Revolutionary Party (MPRP) held
demonstrations last week against the Independent Authority Against Corruption's (IAAC)
investigations into members of the party. The IAAC last month arrested multiple MPRP members, as
well as opened an investigation into the former prime minister and president Nambar Enkhbayar to
rule whether he should be allowed to hold office after being found guilty of corruption in 2012. The
protesters from the Mongolia Democracy and Justice Youth Federation gathered outside the IAAC
headquarters on 26 February to protest, accusing the agency of being tarnished by political
influences and persecuting members of the party.
“It is not 1937, it is 2016,” said P. Amar, the protesting group's general secretary. “The IAAC’s well
organized persecution, targeting one political party and one person, proves that it has already been
exposed to political intervention. Therefore, we believe that it cannot carry out independent
operations further.”
Source: UB Post
SUSPECTS ARRESTED FOR CARRYING 'ICE'
Mongolia's police have arrested two suspects caught with nearly 20 grams of illegal
methamphetamine drugs. Police said they arrested the two outside the Peace Bridge Hotel parking
lot for carrying on their persons 18.7 grams and 0.5 grams of ice, the street name for the stimulant
drug methamphetamine. Another 1.1 grams were found inside their car.
Source: News.mn
MAYOR'S OFFICE ISSUES DECREE TO PREVENT CRIME
Ulaanbaatar's Mayor's Office plans to launch an anti-crime program to improve the monitoring of
dangerous areas and prevent crimes such as theft in the city. N. Bataa, the deputy for finance and

economic matters, will lead the city's “Neighborhood Watch” program to bring government officials
and police authorities together to install better lighting and cameras in ger districts and parking
lots.
KHENTII PROVINCE CLAMPS DOWN ON THE “COLORED STONE” TRADE
Local authorities at Khentii Aimag are banning the sale and cracking down on the trade of precious
gemstones seen to be destroying the environment. Most of the stones from Mongolia are sent to be
sold in China, where there is greater demand for turquoise and other colorful stones. Critics say the
practice is overly destructive to pasture land and ruins the idyllic scenes of unspoiled wilderness
that tourists come to Mongolia to see.
The smuggling of precious stones has grown common in several counties throughout Khentii, police
said, including Bor-Undur, Darkhan, Galshar, Bayanmunkh, Batnorov and Binder.
Source: News.mn
NEW DETAILS REVEALED ON DEATH OF MINING JOURNAL'S EDITOR-IN-CHIEF
Foul play may have been involved in the death of journalist and head of the trade magazine,
Mongolian Mining Journal, L. Bolormaa. The investigation into the death in November originally
concluding that Bolormaa's death was a stroke saw many people calling for a second opinion
because of her investigations into politically sensitive topics. The medicine court has found that the
stroke resulted from a concussion.
Source: Udriin Sonin
MONGOLIA: TIME TO RETHINK YOUR RISK ASSESSMENT?
Four years ago, Mongolia’s economy was the fastest growing in the world, the stock market was
booming and the future looked very bright. This year, the consensus is for growth at no more than 1
percent and all of the rating agencies have sovereign risk at speculative grade. But, while accepting
that Mongolia is certainly not for the risk averse, the investment case is worth a second look. This
year, with the Oyu Tolgoi project expected to move forward, even USD2 billion of FDI in two years
would have a very significant positive impact on the economy.
Chris Weaver is a partner at Macro-Advisory, a Moscow-based consultancy.
Source: Financial Times
BCM UPDATES:
BCM BGI Q4-2015
The BCM Business Growth Index is a regular Centigrade thermometer of business climate in Mongolia
which tracks movements in business confidence quarterly. This is a third release of the Business
Growth Index which relates to the Fourth Quarter of 2015. The overall BCM Business Growth Index
Temperature for Q4-2015 is -3C. It is 3 degrees warmer than the previous quarter. The highest
temperature is shown for the “Expectation of your business investment plan for the next year” to
be +6C, which increased by 4C from Q3. The lowest temperature is shown for the “Business
situation in your enterprise compared to last year” to be -15C, which is exactly the same as in Q3.
The total sample size of BCM BGI Q4-2015 is 80. All respondents are BCM member organizations.
More detailed information about methodology and results of BCM BGI Q4-2015 are available in the
report here. The pie charts for each indicator results compared to the BCM BGI Q3-2015 are
available here in Mongolian and English.

NEW MONGOLIAN LAWS
The following law as well as amendments, addenda and annulments to/of laws were published in
the latest weekly Government bulletin. Unless otherwise decided by Parliament, it will take effect
ten (10) days after publication.
Date Laws
19.02.2016 Criminal Code /revised version/
Amendments to Law on Fight against alcoholism
Amendments to Law on Issuing guarantee on money savings in banks
Amendments to Law on Prevention of crimes
Amendments to Law on Fight against domestic violence
Amendments to Law on Government Special Fund
Amendments to Civil code
Amendments to Law on Fight against terrorism
Amendments to Law on State and local property
Amendments to Law on Court decision implementation
Annulment of some provisions of law on Presidential elections of Mongolia
Annulment of some provisions of law on Parliament elections of Mongolia
Annulment of some provisions of law on Capital city civil representatives council
elections
Annulment of some provisions of law on aimag, soum, district civil representatives
council elections
Annulment of some provisions of law on civil service
Amendments to Law on Human development fund
Law on hygiene
Amendments to Law on Petroleum products
Amendments to Law on Immunization
Amendments to Law on Ensuring food safety
Annulment of Law on Sanitation
Amendments to Law on Employment promotion
Addendum to Law on Small, medium industry
Addendum to Law on Minerals
Amendments to Law on Vocational Education, training
Amendments to Law on Employment promotion
Addendum to Higher education
Amendments to Law on Legislation
Amendments to Law on Administrative case settlement
Annulment of some provision of Law on Civil case settlement at court
Amendments to Law on Criminal procedure
Please visit BCM's website, Legislative Working Group, for a summary of 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.
ANNOUNCEMENTS
1ST ANNUAL BCM SUMMIT, 21 APRIL, BLUE SKY HOTEL
The Business Council of Mongolia (BCM) will host its 1st Annual BCM Summit on 21 April at Blue Sky
Hotel and Tower in Ulaanbaatar. The forum will provide a venue for a wide spectrum of
informative, meaningful and innovative topics important to Mongolia's business community. The

focus will be on business strategies to cope with survival in an economic downturn, mining and
industrial supply, capital markets, innovative business trends and more.
BCM continues to maintain a strong membership base consisting of nearly 240 business
stakeholders—both national and international—including international financial institutions,
embassies and educational institutions. BCM has more than 350 volunteers in its 8 working groups
lending their wealth of experience in recommendations used by BCM to advocate for a better
business climate.
Registration is MNT100,000 per head for members, compared with the regular fee of MNT120,000.
Save money with the early bird rate of MNT80,000 for members and MNT100,000 for non-members
by registering before 21 March. For more information, email Saruul at saruul@bcmongolia.org.
The cost for booking a booth to exhibit your company or brand at the event is USD500.
_________________________________________
MONGOLIA MINING FORUM, 8 MARCH, AT PDAC, TORONTO
Mongolia will promote the progress made in its mining and geology sectors in recent years on 8
March at PDAC, the world’s leading annual International Convention, Trade Show & Investors
Exchange for minerals exploration and mining scheduled on 6 to 9 March in Toronto.
The Mongolian delegation led by the Ministry of Mining and Mineral Resources Authority (MRA) will
consist of representatives of the ministry, major mining companies including Erdenes Mongol, MRA,
Invest Mongolia Agency, the Petroleum Authority, and more. A working group led by MRA will
provide Mongolian businesses the opportunity to promote their projects to investors and have one-
to-one meetings with potential investors during this world leading international mining investors’
conference.
For more information, call Tsetsegmaa, the senior manager at Invest Mongolia, at +976 88008161,
or email tsetsegmaa@investmongolia.com. You can also reach MRA External Affairs Officer Chinzorig
at +976 99000357 or cmunhuu@yahoo.com.
_________________________________________
MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE
Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the
Government Palace on 30-31 March.
This year's two-day event will be held under the theme “Lessons learned, Facing challenges and
Solutions pending,” where participants will seek to define the country’s current national and global
context, as well as outline alternatives for the promotion of future economic and social prosperity
in Mongolia.

BCM members will have a 30 percent discount on registration. Register here, and send an email to
info@meforum.mn mentioning your BCM membership to receive your discount. For more
information email the same address or call 11 321051.
_________________________________________
MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX
The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year
from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will
feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors
representing the industry's major companies. Guest speakers from the government, universities, and
companies will lead seminars of the government policy for mineral resources and new laws focused
on mining and infrastructure in Mongolia.
For more information, contact Munkh-Erdene via email at munkh@minex.mn or call at 344488.
_________________________________________
7TH ANNUAL NATIONAL FORUM FOR RENEWABLE ENERGY, 6 APRIL, CORPORATE HOTEL AND
CONVENTION CENTER
The National Renewable Energy Forum, Mongolia's premier conference on the renewable energy
sector since 2008, will open on 6 April at the Hotel and Convention Center in Ulaanbaatar. At the
forum, speakers will review the initiatives and activities that address key issues for the renewable
energy sector.
Registration is MNT35,000, and there is no limit to the number of registrations. For more
information, email Myagmardorj at e.myagmardorj@gmail.com.
‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES
Guest Speaker: Anthony Willoughby and Josephine Stoker, Nomadic School of Business
Presentation topic: "Organizational Leadership"
Where & When: University of the Humanities, 25 February 2016
Anthony Willoughby and Josephine Stoker, Nomadic School of Business co-delivered a presentation
titled "Organizational Leadership" at the University of the Humanities (UH) on 25 February. The
lecture, which consisted of an individual exercise of mapping one's life journey, was attended by
138 students.
Both Anthony and Josie began the lecture by sharing their own life journeys, which fascinated many
students in the audience. Students were asked to share their life journey map with neighbors, as
said by many students was the highlight of the lecture.
For more information about the lecture, please contact Khulangoo P, Working Group Coordinator at
khulangoo@bcmongolia.org
_________________________________________
Guest Speaker: Gerelt-Od Ts, Ministry of Environment, Green Development and Tourism (MoEGDT)
Presentation topic: "Climate Change of Mongolia & COP21"
Where & When: National University of Mongolia, 23 February 2016
Mr. Gerelt-Od Ts, MoEGDT, delivered a presentation titled "Climate Change of Mongolia & COP21".
Over 50 students attended the lecture.
Mr. Gerelt-Od was one of the three representatives from Mongolia to enter into the negotiations at
the 2015 United Nations Climate Change Conference, COP 21 held in Paris, France, from 30
November to 12 December 2015. Mr. Gerelt-Od's comprehensive presentation covered Mongolia's
historic engagement in the global movement against climate change to recent highlight of
Mongolia's pledge of 50'000 US dollar to the Green Climate Fund. The presentation is available here.
_________________________________________
Guest Speaker: Amartuvshin Sh, CEO-AFAcademy

Presentation topic: "Personal development: New season"
Where & When: The Institute of Finance and Economics, 18 February 2016
Amartuvshin Sh, CEO of AFAcademy, delivered a presentation titled "Personal Development: New
season" at the Institute of Finance and Economics (IFE) on 18 February. Over 60 senior students
attended the lecture.
Mr. Amartuvshin, an experienced motivational speaker and family counselor, shared a success
formula, which he has been using for his lectures to CEOs of key businesses in Mongolia. Students
expressed their gratitude to Mr. Amartuvshin and expressed their interest in various tools that can
be used for personal development.
For more information about the lectures, please contact Khulangoo, Working Group Coordinator at
khulangoo@bcmongolia.org
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 24 February in partnership with our member,
The Nomadic School of Business LLC, on the topic "Exploring your career, purpose, and the leader
within you". A total of 42 people attended the training session representing 26 member
organizations. The directors of The Nomadic School of Business - Anthony Willoughby, who first
visited Ulan Bator in 1975, has over 30 years of experience pioneering leadership development in
Asia, working with executives in Google, Coca Cola, Morgan Stanley and many other frontier
thinking companies – and Josephine Stoker, who has worked in one of the leading strategic
consultancy companies in Singapore, guided the participants through a unique process of
development. Included were a new way of looking at your career; exploring your life plan, purpose
and motivation; working out where you want to focus and the skills you need to develop; and
understanding a simple and creative tool, which you can use to gain insights into your priorities.
BCM ADVOCACY NOTES
Latest draft of Labor Law bill - Government working group
An open discussion was held between the Ministry of Labor and the private sector on the draft Labor
Law on 16 February. The December draft is reflective of many of the recommendations proposed by
the BCM's Legislative Working Group. Labor Minister G. Bayarsaikhan reported that the draft will be
submitted in April for the autumn Parliamentary session. New Working Group members assigned by
the Labor Minister to draft the bill were introduced and promised to review further comments from
the private sector.
For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.
Click here to read the latest draft of the bill.
BCM WORKING GROUP NEWS
Tax Working Group
BCM’s Tax Working Group’s 2016 kick-off meeting was held on Wednesday, 2 March at Suite 101,
12th floor Express Tower, with 16 members in attendance, representing Oyu Tolgoi, PwC, Deloitte
Onch Audit, Sumitomo Corporation Mongolia office, International SOS, WCS, MahoneyLiotta, Lehman
Lee & Xu and PATC.
Agenda of the meeting: 16:00 - 16:10 Opening remarks (Chair, Tsendmaa Choijamts, PwC) 16:10 -
17:00 Introducing new VAT law (Altankhorol O, Senior state tax inspector, Revenue department of
the General Department of Customs and Taxation) 17:00-17:30 Q&A session and discussion on TWG
plans for 2016 (Members, state tax inspector)
Ms. Altankhorol, General Department of Customs and Taxation of Mongolia, reviewed the newly
adopted Value-Added Tax (VAT) law of Mongolia, which took effect on 1 January 2016. The

presentation covered key policy changes, changes in the other related regulations and frequently
asked questions from businesses. Members in attendance were interested in the procedural changes
in the new VAT law, such as the registration and de-registration as a VAT payer, VAT-exempt goods
and services and VAT zero-rated goods and services.
Ms. Tsendmaa Ch, Tax Executive Director of PwC Mongolia, shared with the members Tax Working
Group’s draft plan for 2016. As Chair of Tax Working Group, Ms Tsendmaa, informed the members
of the intent of engaging representatives from the government entities to the WG meetings in order
to learn more about legal and procedural changes and to exchange expert views with
representatives from government bodies.
Next meeting is scheduled for May. For more information about this meeting, please contact
Khulangoo Purevjav, Working Group Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Business Ethics Working Group
Business Ethics Working Group meeting was held on 1 March 2016 at Express Tower from 16:00 to
17:30 with 12 members in attendance representing Atlas Copco, Transparency International, Mandal
General Insurance, US Embassy, Wagner Asia, Deloitte Onch Audit, Asia Foundation, Valliant Art and
Interiors, World Vision and the Institute of Finance and Economics.
Agenda of the meeting: - Introduction of members and guests (Anders Berglund, Atlas Copco) -
Recap from the last meeting (Christine Hudetz, TI Mongolia) - Insurance sector transparency (Zaya
Bolorbold, Mandal Insurance) - Discussion on topics and plan for 2016 (Christine Hudetz, TI
Mongolia).
The meeting begun with recap of the last meeting: development of the draft plan for 2016 and
collective agreement on the need to reach-out for more local companies as members of the
Working Group. Given the delicacy of the issues the WG intends to cover at its meetings and the
subsequent low interest from BCM members to sign-up for this WG, nonetheless members have
agreed to continue with its meetings and aim to draw more attention from local companies.
Ms Zaya, Mandal Insurance, presented an overview of the insurance industry and Mandal fight
against kickbacks and the adverse effects of kick-back culture within the industry. Attendees were
highly impressed with Mandal’s meticulous top-down approach against kick-backs, from its
philosophy to its hiring procedure. During the discussion time on plan for 2016, Wagner Asia has
volunteered for a presentation in November and Asia Foundation offered to share its study findings
on corruption in Mongolia.
Co-Chair reminded the members of the next meeting topic item: Gift giving policy on Tuesday, first
week of May. For more information about this event, please contact Khulangoo Purevjav, Working
Group Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Energy & Environment Working Group
BCM’s Energy and Environment Working Group’s kick-off meeting was held on Thursday, 25 February
at the Open Society Forum’s meeting room with 17 members in attendance. Represented were
GGGI, US Embassy, XacBank, Mongolian Bankers’ Association, Arig Bank, Invest Mongolia, Wildlife
Conservation Society, Techenomics, Mongolian National Mining Association, Mongolian Wind
Association, Newcom Group, Economic Development Center and the newest addition to the Working
Group, the Institute of Energy Economics.
The meeting was organized under the theme of: "Green credit - private and public initiatives".
Agenda of the meeting:
- Sustainable Finance Initiative: Latest developments, progress towards private fund establishment,
Mr. Tumurkhuu, Head of Sustainable Finance Initiative Steering Committee and CEO of Arig Bank
- National concessions list: Latest developments, quick look at near-term projects, Mr. Ts.
Batbayar, Head of Concessions Division, Invest Mongolia
- Facilitated discussion on business implications of green finance and concessions opportunities in
Mongolia, Mr. Tumurkhuu, CEO of Arig Bank.

Mr. Tumurkhuu emphasized that the Sustainable Finance Initiative is in full swing with initial loans
being issued at 14 commercial banks of Mongolia since 2015. Mr. Batbayar, Division Head at Invest
Mongolia, shared latest developments on concession and the Agency’s efforts in improving the legal
environment for regulating concession issues in Mongolia. Mr. Jon Lyons, co-chair of the Energy &
Environment WG (EEWG,) facilitated the discussion on green finance and concessions opportunities
in Mongolia. Working Group members were mostly interest in the government’s guarantee to the
concessionaire and the updates of the Water Treatment Facility and CHP-ͷ concessions. As part of
BCM’s effort in increasing stakeholders from the government entities, Mr. Amarsanaa, Head of the
Institute of Energy Economics (IEE), an institute under the Ministry of Energy, attended the meeting
and agreed to introduce the IEE at the next Working Group meeting. For more information about
this meeting, please contact Khulangoo Purevjav, Working Group Coordinator of BCM at
khulangoo@bcmongolia.org.
_________________________________________
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th
floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan
Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate
Capital Ltd and Mongolian Bankers’ Association.
Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes
proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG
(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working
towards increased foreign investment in Mongolia’. It was suggested by members to include more
emerging players in the capital markets such as the insurance industry and most importantly engage
other stakeholders from government entities with the Working Group. Updates were given on the
development of ‘custodian banking’ and how the WG can leverage its efforts towards sound
regulations for custodian banks.
On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the
Treasury, Oyu Tolgoi will deliver a presentation on project financing.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Risk Working Group
BCM’s Risk Working Group’s 2016 kick-off meeting was held on Thursday, 21 January at Suite 101,
12th floor Express Tower, with 14 members in attendance, representing Mandal General Insurance,
MIG Insurance, Deloitte Onch Audit, XacBank, Wagner Asia, Iarudi, Golomt Bank and Bagatumurch
LLC.
•16:00-16:10 Introduction and Opening remarks by Working Group Co-Chairs
•16:10-16:50 "Case studies on tax related cases tried at the Supreme Court of Mongolia"
(Bolorchimeg Kh, Lawyer, ELC LLP)
•16:50-17:35 Discussion on proposed topics and finalize plan for 2016
Guest speaker, Bolorchimeg of ELC LLP, emphasized that her presentation was illustrative only and
did not go into details or the legal implications. The presentation focused on: (i) Tax cases resolved
by the Supreme Court - last 3 years, (ii) Tax Dispute Resolution Process and (iii) Case Study of
Tuushin LLC vs Tax Inspectors of General Tax Authority. Members in attendance were interested in
the tax inspectors’ inspection process and what it entails, and in the statistics of the tax-related
cases resolved by the Supreme Court.
Zaya Bolorbold, co-chair of the Risk WG (RWG), presented an overview of the last year’s activities
and introduced proposed plans for 2016. Working group members supported the draft plan for 2016,

with some members volunteering as main speakers from Deloitte Onch Audit, Bagatumurch LLC.
Given the current weather conditions in Mongolia, it was decided that BCM should reach-out to the
NEMA and/or State Emergency Commission to request a presentation on the 'dzud* situation; it was
also agreed that the presentation can be complimented with Risk Working Group members’
presentation on how the impacts of the dzud will be translated into insurance claims. Next meeting
is scheduled for 3rd week of February.
_________________________________________
BCM’s Logistics Working Group
BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office
Building with 7 people in attendance representing Monex, Representative Office of Mitsui & Co.,
Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-Dolgoon Delgerekh LLC.
• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”
• Discuss and plan WG’s 2016 activities
Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.
Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the
company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service
in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in
the delivery logistics within Ulaanbaatar.
Meeting participants were interested in the expansion plans of the company, such as delivery
services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave
comprehensive answers about the company’s plan for establishing cargo service between South
Korea and Mongolia initially and delving into other markets.
Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.
He again encouraged our members to read through the soft ideas laid out and provide comments.
Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,
so that members interested or operating in that topic area can actively participate and bring in
more insight.
The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the
questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.
Coordinator of BCM, at khulangoo@bcmongolia.org.
_________________________________________
BCM Education Working Group
BCM’s Education Working Group was held on 26 November at the Executive Excellence International
Business Center, 10F Galaxy Tower from 16:00 to 18:00. Fifteen people attended the event
representing foreign mission in Mongolia, private sector, universities and consultants of donor
funded projects:
Foreign Mission: Canadian Embassy;
Universities: National University of Mongolia, Mongolian University of Science and Technology
Private sector: PwC, Minter Ellison
Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education
and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The
Global Fund;
Meeting minutes summary:
Opening remarks by Education Working Group Chair - Saha Meyanathan. Saha related information
about being selected as the best Working Group of the year 2015.
Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB
funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities

will be organized first week of December.
During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of
building the capacity of the professors, as they are the ultimate knowledge givers to the students.
The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher
education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to
highlight a few:
For more information about this event, please contact Khulangoo Purevjav, Working Group
COOPERATION & MEMBER DISCOUNTS:
Discounts:
- News.mn offers 20% discount of its products and services for BCM members
- Mongolian Economy offers 50% discount for its advertisements & paid articles on website and 55%
subscription discount on its online magazine for BCM members
- NPC&Mandal offers 20% discount to BCM members
- Birches Group offers 10% discount on Mongolia Compensation and Benefits Survey for BCM
members
- New Media offers 25-50% discounts to BCM members on its online accounting software, E-
commerce platform, web & mobile application development and job searching software.
For more information about announcements and discounts, click here or contact Otgongerel,
Partnership Manager at otgongerel@bcmongolia.org.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
Presentations:
BCM Monthly Meeting, 22 February:
- A. Baatarpurev, Director of Markets Development Department, Financial Regulatory Commission -
"Financial Market Developments in Mongolia"
- Jennifer Bielman, Country Director, MercyCorps Mongolia - "Mercy Corps: Building Resilience in
Mongolia"
- D. Uuriintuya, Chairman, Mineral Resources Authority of Mongolia - "Mongolian Events during PDAC
2016 in Toronto"
- N. Munkhnasan, General Director, Monpolyment - "Overview of Monpolyment"
_________________________________________
BCM Monthly Meeting, 25 January:
- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of
the Second Compact agreement between Government of Mongolia and the USA Millennium
Challenge Corporation -
“Development process of the second compact agreement between government of Mongolia and USA
Millennium Challenge Corporation”
- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”
_________________________________________
BCM Monthly meeting on December 7:
- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better
Leaders Through Education & Idea Exchange”
- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant
Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –

STOPP”
- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against
Corruption (IAAC) of Mongolia - “Introduction of IAAC”
- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”
_________________________________________
Mongolia Projects & Investment Summit Hong Kong, 16-17 November:
- Zoljargal Naidansuren, Governor, Bank of Mongolia, “The new equilibrium: reforms to sustainable
growth and savings"
- Narantuya Zagdkhuu, Chair, Financial Regulatory Commission of Mongolia, "Making Mongolia a
frontier again: financial market developments"
- Norihiko Kato, CEO, Khan Bank, "Where does the banking sector fit it?"
- Munkhsukh Sukhbaatar, Rio Tinto, "The way forward for Oyu Tolgoi underground"
- Bat-Uul Erdene, Mayor of Ulaanbaatar city, "City of Ulaanbaatar-2030"
- Matthieu Le Blan, EBRD Head office in Mongolia, "The importance of economic diversification and
import replacement opportunities EBRD's role in enabling progress"
- Tuvshintugs Batdelger, Economic Research Institute, "Transaction Cost of Conducting Business in
Mongolia: SME perspective"
- Oliver Thirlwall, Asian Real Estate Capital, "Distressed opportunities-banking and real estate"
- Kevin Trzcinski, Vice President Corporate Development at Worldwide Power & Technology (HK)
Ltd., "Mongolia as a destination for Scientific Research & Development"
- Randolph Koppa, President, Trade and Development Bank, "Challenges and Opportunities for
Growth"
_________________________________________
Mongolian Annual Risk Management Forum, 11 November:
- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -
Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group
- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western
International Mongolia
- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,
NPC&Mandal LLC
- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head
Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor
- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General
Insurance
- "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC
Mongolia
- "Corporate Crises Management" - G.Odbayar, Mining National Operator
_________________________________________
BCM Monthly Meeting on 2 November:
- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper
business”
- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -
“Introduction to Transparency International’s Business Principles for Countering Bribery”
- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor
Law”
_________________________________________
Mongolia Reports:
- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”
- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform

Priorities (Sep 2015)
- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"
- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"
- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"
- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,
2015, “FDI Environment in Mongolia”
- Hogan Lovells, “Law on State Registration of Legal Entities”
_________________________________________
Interviews:
- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More
Effective"
- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)
- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,
August 20, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV
News, August 20, 2015;
- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview
______________________________________________
Website:
According to Google Analytics report, as of 24 February, the daily web traffic to BCM website was
65 visitors with 93 sessions. 83% were from Mongolia, 4% from Japan and 2% from Hong Kong and
United States each.
SOCIAL NETWORKS
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 https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the BCM NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.
Social stats: BCM now has 11,419 fans on our Facebook fans page, 1,979 connections on
LinkedIn network, and 1,981 followers on Twitter.
_________________________________________
MEMBER’S VACANCIES
- SD Guard at U.S. Mission in Ulaanbaatar: Deadline for application is 16 March 2016
For more information about vacancies, click here. To post your vacancy on BCM website, contact
Dolgorsuren at dolgorsuren@bcmongolia.org.
_________________________________________
BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column
featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and

proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study
Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia
Technology Innovations."
_________________________________________
The BCM NewsWire is used as source for the "MM Today" News program in English aired by Mongolia
National Broadcasting (MNB) on Fridays at 19:00.
_________________________________________
BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.
From January 2013 to February 2016 we posted a total of 110 news items related to BCM activities,
economic and business related updates.
_________________________________________
The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos
from BCM events.
As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy
newly introduced interactive features such as: edit your organization's profile information; post
vacancy notices from your organization; post cooperation proposals with other members or deals
you would like to offer to other BCM members; and start a forum and ask questions directly on the
web platform. Of course you can also visit our website for news information, interviews, event
photos, videos and announcements regarding BCM.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
January 31, 2016 *1.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.0% y-o-y, 4.0% Core - Ulaanbaatar City, January 31, 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]
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]
CURRENCY RATES – 3 March 2016
Currency Rate
US dollar USD 2,040.97
Euro EUR 2,218.13
Japanese yen JPY 17.88
British pound GBP 2,877.05
Hong Kong dollar HKD 262.51
Chinese Yuan CNY 311.90
Russian Ruble RUB 27.55
South Korean won KRW 1.68

Bcm news wire issue 417 (1)

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