January 20 2012

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 205 – January 20, 2012
NEWS HIGHLIGHTS:
Business
 Erdenes-TT to drop Hong Kong listing for IPO;
 Voyager Resources makes new discovery at KM Copper Project;
 Erdene gets golden results;
 Centerra Gold says delay holds up Gatsuurt project;
 Entrée Gold releases work results from Shivee West;
 Mongolian Mining triples border capacity to 1,200 trucks;
 ZHCH Mining signs coal transport deal with Energy Resources;
 Kincora Copper agrees to acquire adjacent licenses from Temujin;
 Denison to pursue uranium mine development in 2012;
 Prophecy completes Chandgana feasibility study;
 Khan Resources pressed for information by TSX;
 Rio to sponsor Olympic athletes;
 Early investment by Coca-Cola in Mongolia pays off;
 MAK to introduce CTL technology for domestic fuel production;
 Zoos Bank case transferred to District Court;
 BCM appoints Oyu Tolgoi tax head to co-chair Tax Working Group;
 Petro Matad appoints new COO;
 Winsway appoints D.L. Lobb of Peabody Energy as non-executive director;
 ING shelves Asian banking IPO;
 Altan Rio completes 2011 drilling program;
 Rio finalizes Hathor deal.
Economy
 Government introduces Price Control Council;
 Release of meat reserves helps balance prices;
 Government sets out to grapple with exchange rates and fuel prices;
 Mongol Bank auctions USD 11.8 million;
 Oil and Gas Association head blames Mongol Bank for fuel price hikes;
 ADB and government team up to combat poverty;
 Commodity prices to make or break 2012 growth;
 Rise of resource nations;
 Copper inventories hit 13-month low;
 Gold company executives anticipate USD 2,000 an oz for gold in 2012;
 Mongolia makes big improvements on Index of Economic Freedom;
 Beijing defends against inflation;
 China has taken its “soft landing,” says BRIC economist.
Politics
 President weighs in on price gains;

2.  Government imposes penalties for hikes to fuel prices;
 DP ministers resign;
 Cabinet discharges nuclear official;
 Election breaks up coalition government;
 Umnugobi residents still without power;
 DP looks to position itself for greater influence on free market policies;
 Parliament approves student stipends;
 Mongolia and China move to strengthen economic and political ties;
 Memoir by U.S. Ambassador due for 2012 release as duty's end nears;
 Police interrogate journalists and demand sources;
 New media group speaks out to defend environment;
 Citizens form community watch group to combat animal thievery;
 Border to close for Chinese New Year;
 President endorses wider use of traditional script.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Eznis Airways
Kempinski Hotel Khan Palace Mongolian National Broadcasting
Mongolian Star Melchers Breakthrough PR
Mongolian Properties Oxford Business Group

3. BCM MONTHLY MEETING NOTICE
BCM‘s next monthly meeting for members will be Monday, January 23, at5 PM at the KEMPINSKI HOTEL
KHAN PALACE, 2nd floor, Altai Ballroom. Parking will be reserved in front of the hotel for BCM
Members.
The bilingual meeting will feature the following presentations:
- Call to Order/Business Council of Mongolia: Laurenz Melchers, Chairman, BCM
- BCM Report: Serod Ichinkhorloo, Vice Director, BCM
- Kherlen Shilkhuu, Managing Director, Mining.mn – ―Coal Mongolia–2012 Conference Information‖
- B. Enkhtsetseg, Journalist, Mongolia Economic Journal – ―Mongolia Economic Journal – For a Green
Development‖
- Jonathan Addleton, Ambassador Extraordinary and Plenipotentiary of the United States of America to
Mongolia – ―Cracking the Commercial Oyster: Reflections on the 25th Anniversary of US-Mongolia
Bilateral Relations‖
A networking reception will be held for all attendees immediately following the business portion of the
meeting in ―Oasis‖ Restaurant, 1st floor, Kempinski Hotel.
BUSINESS
ERDENES-TT TO DROP HONG KONG LISTING FOR IPO
Erdenes-Tavan Tolgoi LLC, the state-owned entity charged with developing the eastern block of the
Tavan Tolgoi coal mine, has decided to drop for now Hong Kong as a venue for its up to USD 3 billion
initial public offering (IPO). The IPO will reportedly occur in May.
The company will seek an IPO in London and Ulaanbaatar. The London listing would take place through
global depositary receipts because of the speedier approval process. Erdenes-TT executives and
bankers working on the deal met in Mongolia in the past days to discuss the plans, who are still taking
into consideration a Hong Kong listing after the IPO.
B. Enebish, Executive Director at state-run Erdenes MGL LLC, said the IPO would likely take place in
May and that the firm still intends to list in Hong Kong. Hong Kong does not currently allow companies
domiciled in Mongolia to list in the Asia IPO hub, though Erdenes-TT can seek exemptions to list in the
Chinese city.
BNP Paribas, Deutsche Bank, Goldman Sachs, and Macquarie were hired to manage the listings.
Source: Reuters
VOYAGER RESOURCES MAKES NEW DISCOVERY AT KM COPPER PROJECT
Voyager Resources Limited has made a new minerals discovery at its KM copper porphyry project. The
firm reported 168 meters of 0.75 percent copper and 5.4 grams per ton of silver.
Voyager has placed exploration targets of between 50 and 150 million tons at between 0.8 and 1.5
percent copper on the hydrothermal breccias at the KM copper project, not including the larger copper
porphyry stock targets. The exploration team has also intersected mineralization at the Gaans North,
Zam Duguukh, and Eistel prospects.
Voyager Resources is currently exploring and developing resources in Mongolia.
Source: Voyager Resources Limited

4. ERDENE GETS GOLDEN RESULTS
Erdene Resource Development Corp. announced last week that its drilling program at its wholly owned
Altan Nar property in southwest Mongolian had found encouraging amounts of gold.
―We are very excited by these results,‖ said Erdene's president and chief executive officer Peter
Akerley. ―The high-grade gold extension at depth and large zones of gold mineralization along trend
suggest we have made a significant gold discovery.‖
The firm reported on two drill holes in particular. In one, drill hole 19, Erdene hit its broadest high-
grade gold discovery yet, cutting 29 meters at 4.3 grams per ton of gold and 24.1 grams per ton of
silver. Ken MacDonald, Erdene‘s Chief Financial Officer and Vice President of Business Strategy said
drilling confirmed deeper and ―increasing gold values,‖ while showing that ―the system could in fact be
larger and deeper than earlier indicated or envisioned.‖
The prospect was only identified late last year. Since then, Erdene has spent nearly USD 1 million, most
of it drilling 20 exploration holes. To date, it has received assay results from 11 of them. Last month,
Erdene raised USD 2.2 million through a private equity placement with Mongolian investors to explore
its Mongolian properties. The company has been looking for copper, gold, and molybdenum in
southwest Mongolia, near the Chinese border since 2009.
Source: The Chronicle Herald
CENTERRA GOLD SAYS DELAY HOLDS UP GATSUURT PROJECT
Centerra Gold Inc. said it could not predict when it would start production at its Gatsuurt project in
Mongolia due to continued delays in receiving permits and approvals.
The Toronto-based company said it expects total gold production of 635,000 ounces to 685,000 ounces
for the full year. For 2011, the company produced 642,380 ounces of gold. The company added that the
outlook for 2012 does not include any production from the Gatsuurt project.
Centerra said pending discussion of the water and forest law amendment in the Mongolian Parliament,
it is difficult to predict the timing of the start of production at the Gatsuurt project. The company also
expects gold production to be impacted by four days in the first quarter, due to scheduled mill
maintenance.
Source: Reuters
ENTRÉE GOLD RELEASES WORK RESULTS FROM SHIVEE WEST
The work results report released by Entrée Gold Inc. about its Shivee West project has revealed more
about the gold content at the Argo Zone site.
Entrée Gold's final work results have shown between 19.3 grams per ton over three meters and 42.4
grams per ton over four meters in the Argo zone at its Shivee West project. The company uncovered
2.21 grams per ton over 3 meters in hole EGRC-11-111 and 1.82 grams per ton over 14 meters in hole
EGRC-11-112. The company yielded 1.44 grams per ton of gold over six meters and 0.69 grams per ton
of gold over another six meters
Entrée Gold Inc. is a Canadian mineral exploration company focused on the worldwide exploration and
development of copper and gold projects. It plans to start surface work and further drilling in the
second quarter of 2012 to outline mineralized gold in the Argo Zone and Zone III.
Source: Entrée Gold Inc.
MONGOLIAN MINING TRIPLES BORDER CAPACITY TO 1,200 TRUCKS
Mongolian Mining Corporation Limited (MMC) announced the completion of a project to expand the
border crossing capacity at the Gashuun Sukhait border checkpoint for coal transport. The company and
its subsidiary, Energy Resources LLC, worked jointly with the state-owned firm Erdenes MGL LLC for the
project.
According to a government resolution, Erdenes MGL led the consortium, and MMC subsidiary Gobi Road

5. LLC managed the construction and project management of the border crossing expansion at the border
point, which began in June 2011. The consortium deemed operations completed on 12 January.
The project included the construction of eight new lanes for cross-border trucks, in addition to existing
four lanes. Also was the addition of support buildings, infrastructure and facilities for inspection at the
―no-man‖ buffer zone between Mongolia and China. The Gashuun Sukhait border point now has the
reported capacity for 1,200 loaded trucks to China each day, a three-fold increase.
The expansion should boost coal export volume and truck turnaround over the border point, reducing
transportation costs for MMC. The company also expects the project will result in better environmental
and safety conditions.
Source: Mongolia Mining Corporation Limited
ZHCH MINING SIGNS COAL TRANSPORT DEAL WITH ENERGY RESOURCES
ZHCH Mining LLC has contracted with Transgobi LLC for a coal transport deal which could generate
revenues of USD 20 million a year.
The firm signed a contract with Transgobi LLC to transport coal from it Ukhaa Khudag coal mine at
Tsogttsetsii Soum, Umnugobi Aimag to Tsagaan Khad. ZHCN and Transgobi are currently finalizing the
date on when to begin transport.
ZHCH Mining is owned by Nova Mongolia Pte Ltd., while Transgobi is owned by the coal producer Energy
Resources LLC.
Source: Nova Minerals Limited
KINCORA COPPER AGREES TO ACQUIRE ADJACENT LICENSES FROM TEMUJIN
Kincora Copper Limited has signed a letter of intent with Forbes and Manhattan (F&M) and Temujin
Mining Corp. to acquire the firm Golden Grouse LLC from Temujin Mining Corp. for its Manlai mineral
exploration licenses, which are adjacent to Kincora Copper's Bronze Fox project.
The licenses, called the Manlai licenses, are located to the immediate west of and north of the borders
of Kincora Copper's Buyant license. They lie on an east-west trending splay off the Zuunbayan fault
zone, where there is supposedly porphyry-style copper and gold mineralization at Suvarga, Tsagaan
Suvarga, Shuteen and Olut Ulaan, and possibly Kharmagtai. The entire distance totals to a 150-
kilometer strike length.
―This transaction suits the company's strategic goals and will add a significant tenement to the
company's prospect pool of promising targets,‖ said Igor Kovarsky, President and Chief Executive
Officer of Kincora Copper. ―On closing of the acquisition, our tenement will encompass two of Ivanhoe's
former high priority prospects, the Bronze Fox and Tourmaline Hills.‖
Kincora Copper will issue 35 million shares to Temujin which shares are intended to be dividended out
by Temujin to its shareholders. It will also appoint one nominee of Forbes and Manhattan (F&M), the
Canadian merchant bank which currently holds Temujin Mining, for election to its board. Concurrent
with the acquisition it is intended that F & M will subscribe for units of the Company (the "Units") for
proceeds of up to $2.8 million, and that certain insiders and other investors may also subscribe for
Units with proceeds to Kincora of up to a further $3.2 million for combined proceeds of up to $6
million.
Source: Kincora Copper Limited
DENISON TO PURSUE URANIUM MINE DEVELOPMENT IN 2012
Diversified miner Denison Mines Corp. said it plans to aggressively pursue its exploration and
development projects in Mongolia in its 2012 operating plan outline.
The firm submitted its mining license applications for four of its five license areas in Mongolia in 2011.
The company is also in the process of acquiring the Russian interest in the Gurvan Saikhan joint
venture, in preparation for restructuring it to meet the requirements of the Mongolian Nuclear Energy

6. Law.
The company expects to begin a projected USD 4.1 million exploration and development program for
2012, contingent upon receipt of the mining licenses in mid-2012. Included in its budget is a USD 1.6
million, 17,500 meter exploration program focused on the Ulziit and Urt Tsav 2011 discoveries. The
development activities will include drilling of initial test patterns and pilot plant designs.
Source: Denison Mines Corp.
PROPHECY COMPLETES CHANDGANA FEASIBILITY STUDY
Prophecy Coal Corp. announced its plans to begin construction on it Chandgana power plant following
the completion of its feasibility study. The company hopes to have its first 150 mega watt unit
operating in October 2015 and subsequent units to roll out in April 2016, October 2016, and April 2017.
―The feasibility study has outlined the robust financial return for the Chandgana power plant based on
conservative parameters,‖ said John Lee, chief executive officer of Prophecy Coal.
―Our low-cost coal supply enables future delivery of affordable and stable electricity to both Central
and Eastern Mongolia. The opportunity represents a potential long-term revenue stream from power
plant operation, as well as from coal operation, without coal transportation issues.‖
The projected cost for the project is some USD 744 million for the four 150 mega watt units, or USD
1,240 per kilo watt. This includes the power plant, overhead transmission lines, and administrative
costs. However, it does not take into account development of the Chandgana Tal mine, which the
company plans to utilize to fuel the power plant. Projections for mine development have been made by
Leighton Asia. Prophecy Coal plans to finance the project with 30 percent equity and 70 percent with a
10-year-term loan.
The scope of the feasibility study covers technical specifications, deployment, and financial analysis of
the thermal power plant to be built adjacent to the Chandgana Tal coal deposit, which contains 140
million tons of measured coal. With proper maintenance the project would have a lifetime of 30 years.
Source: Prophecy Coal Corp.
KHAN RESOURCES PRESSED FOR INFORMATION BY TSX
Canadian uranium explorer Khan Resources said it received a request from the Toronto Stock Exchange
(TSX) to furnish information related to its current business operations. The letters is part of the fact-
gathering process to determine whether the company continues to meets the TSX's listing
requirements, Khan said in a statement.
Shares of Khan Resources, which focuses on mining in the Dornod area in northeastern Mongolia, have
lost a quarter of their value in the past three months. The letter from the TSX also said if the company
has discontinued a substantial portion of its business, it will be required to meet the original listing
requirements (OLR) of the TSX.
The exchange will start a delisting review if the company does not come up with a plan to meet the
OLR within 120 days from the date of the letter.
Source: Mining Weekly
RIO TO SPONSOR OLYMPIC ATHLETES
Rio Tinto PLC, which manages the Oyu Tolgoi copper and gold mine, is sponsoring two Mongolian
athletes for the Olympics.
The miner is helping to fund training, travel, and other costs for L. Purevjargal, a judo champion, and
G. Mandakhnaran, a free style wrestler, as they prepare for the London 2012 Olympics. Rio Tinto has
been working as a partner for the Mongolian National Olympic Committee, and is also providing the
metal used in the medals awarded during the 2012 Olympics. Some of the metal will originate from the
Oyu Tolgoi mine.
―This is a wonderful gesture and I am glad that Rio Tinto is such an enthusiastic and visible supporter of

7. Mongolian sporting ambition,‖ said Mandakhnaran. ―Winning a medal is my biggest ambition and
winning one containing Mongolian metal would be an added bonus.‖
The two deals come on top of the 'gold partner' agreement Rio Tinto signed with the Mongolian National
Olympic Committee in August last year. Cameron McRae, Rio Tinto's Mongolia's country director and
president of Oyu Tolgoi LLC, said he wished the two luck and hopes they come back with some medals.
Almost exactly a year ago, Mongolia informed the International Olympics Committee of its intention to
bid for the 2040 Olympic Games.
Source: Mining Australia, Sports Promo Media
EARLY INVESTMENT BY COCA-COLA IN MONGOLIA PAYS OFF
Coca-Cola's investment into Mongolia has reportedly paid off, with an increase of 66 eight-ounce
servings per capita in six years.
In 2002, before Mongolia gained much attention, Coke opened a local bottling plant. It was a bet
expressing confidence in a country that was small but ascendant, exotic but bent on connecting with
the world. Of course, it did not hurt that rival PepsiCo had yet to build a factory in Mongolia, but the
choice to bottle domestically instead of import was about costs. The central factor is making Coke
affordable to the average person.
When the Mongolian plant opened nearly a decade ago, Mongolia's yearly consumption was four eight-
ounce servings per capita. As of 2008, that number had ballooned to nearly 70. Coke spent USD 22
million on a bigger plant east of Ulaanbaatar that opened on 24 August 2008.
But even as it grows more cosmopolitan, marketing strategies in Mongolia have to consider local tastes.
Although young people have expressed resentment towards the characterization that Mongolia is a land
of herders, rustic traditions and ideals still exist within society. However, those asked said marketing
should focus on the country's modernization.
Coke's local bottling partner has had a front seat to Mongolia's development. MCS Group started as an
energy consulting firm but has diversified into a variety of fields: cashmere, property, fashion,
restaurants, and beverages—including vodka. The partnership has allowed many Mongolian workers to
receive training at the Coca-Cola University in Shanghai.
Source: GlobalAtlanta
________________________________
Note from Editor: GlobalAtlanta will soon release a special email report on Mongolia which will be
posted to BCM‘s website - Resources, Mongolia Reports. Click here for more coverage.
MAK TO INTRODUCE CTL TECHNOLOGY FOR DOMESTIC FUEL PRODUCTION
Mongolia‘s dependence on Russia has driven companies such as Mongolyn Alt (MAK) to look for methods
to develop a domestic fuel industry. Coal-to-liquid fuels would allow Mongolia to gain a bit more fuel
dependence and diversify the Mongolian economy.
MAK plans to build a factory near the Aduuchuluun mine at Bayantumen Soum in Dornod Aimag, which
has the capacity to produce 400,000 tons of coal-to-liquid fuels. The company hopes to produce fuel
with a similar makeup to AI-92 grade gasoline, which would cover 40 percent of domestic needs.
According to a 2011 November report, the annual price of imported fuel increased by 64.7 percent from
2010. The fuel proposed by MAK would serve as a cheaper alternative to petroleum. The company
estimates 1 ton of the coal-to-liquid fuel would cost USD 900, or MNT 1,200 a liter. A study reports that
Mongolia has enough reserve oil for 35 to 40 years and gas for 60 to 70 years, compared with coal to
last up to 250 years. The reserves at the Aduuchuluun mine alone, which contains a reported 284.7-ton
reserve, would supply fuel for 47 years. The construction of three or four CTL factories would produce
enough fuel to meet Mongolia‘s needs and export fuel for sale. The company hopes to introduce its CTL
fuels to compete against imported fuel as soon as 2017.
Source: Zuunii Medee

8. ZOOS BANK CASE TRANSFERRED TO DISTRICT COURT
The case against Zoos Bank's former heads has been transferred to the Chingeltei District court.
The Economic Crime Investigation Department of the State Investigation Office has investigated Sh.
Chudanjil, former president of Zoos Bank, and other figureheads of the bank as to misappropriation of
bank funds and violating laws. The report from the investigations concludes that the bank holds total
capital of MNT 187 billion and debt of MNT 195.3. Of its total debt, 33.4 percent is from a reported bad
loan held by the former bank.
Some employees have been convicted of embezzling bank capital and counterfeiting documents. Some
cases have been transferred for additional investigation.
Source: News.mn
BCM APPOINTS OYU TOLGOI TAX HEAD TO CO-CHAIR TAX WORKING GROUP
BCM has recently appointed Arthur Cookson as the co-chair of its Tax Working Group to replace
outgoing co-chair Sebastian Merriman. Currently working as the head of tax at Oyu Tolgoi LLC, Cookson
will serve alongside D. Onchinsuren of Deloitte-Onch LLC.
―My co-chair Onch and I will look to further develop tax law and understandings in Mongolia,‖ said
Cookson.
The new co-chair said he would work with the Mongolian Tax Authority as well as help present
workshops to further achieve the aims of the Tax Working Group.
Cookson has 30 years of experience working with The Shell Group as an internal advisor to its tax
division, five years with the U.K. Inland Revenue, and three years experience with
PricewaterhouseCoopers in China advising the government on tax reform. He has worked at Oyu Tolgoi
for eight months tending to tax and treasury responsibilities.
BCM Executive Director Jim Dwyer said that he was confident that Cookson would provide a great
service to businesses in Mongolia, following the strong efforts of his predecessor Merriman.
Source: BCM
PETRO MATAD APPOINTS NEW COO
Petro Matad has promoted drilling manager Mark Zebrowitz to the role of Chief Operating Officer.
The former officeholder, Rodney Graham is leaving Petro Matad to resume his career in the mineral
sector, but will still be based in Mongolia. He will continue to consult for Petro Matad, managing its oil-
shale prospects, the firm said.
Zebrowitz, who joined the company last year, is an experienced oil industry professional with more
than 25 years international experience.
―Mr. Zebrowitz has proven himself a skilled oil industry professional and has integrated well into the
company's team and Mongolia since his appointment as drilling management of the company,‖ said
Petro Matad's chief executive Douglas McGay.
Thanking Graham for his service, McGay said he had been instrumental in helping to build the firm's in-
country operations team which was put together effectively from scratch.
Source: Petro Matad
WINSWAY APPOINTS D.L. LOBB OF PEABODY ENERGY AS NON-EXECUTIVE DIRECTOR
The board of Winsway Coking Coal Holdings Limited, a supplier of Mongolian coking coal to China, has
appointed Delbert Lee ―D.L.‖ Lobb as a non-executive director as Cui Guiyong resigned as a non-
executive director.
D.L. Lobb has more than 30 years of global coal industry experience with roles in engineering and
operations management. He is Senior Vice President of Operations Development for Asia at Peabody
Energy Corporation. Lobb has been responsible for large-scale surface and underground mines for
Peabody and others in the United States. He is also a current member of the board of directors of the

9. joint venture Peabody-Winsway Resources B.V.
Source: Winsway Coking Coal Limited
ING SHELVES ASIAN BANKING IPO
The Dutch financial services group ING, which has a commercial and investment banking office in
Ulaanbaatar, said last week that it would not pay a dividend to shareholders until it had repaid all of
the state aid it received during the recent financial crisis. The move is part of an overall plan to reduce
exposure to the sovereign debt crisis, which includes a decision not to pursue an initial public offering
(IPO) for its Asian-European banking services.
Last Thursday, ING announced that it was abandoning plans for an IPO of its combined Asian and
European business, citing turbulence in the equity markets. The firm said it was not considering a sale
of its Asian business, but still planned to pursue a separate IPO for its European arm.
Chief Executive Jan Hommen said ING was focused on repaying the bailout it received in 2008 of EUR 10
billion (USD 12.8 billion) from the Dutch government. ING said it would pay the state aid owed, which
currently stands at EUR 3 billion, ―as soon as possible.‖ It also has to split up its banking and insurance
assets by the end of 2013 to comply with requirements attached to the bailout.
―Given the ongoing crisis in the euro zone and increasing regulatory capital requirements, we need to
take a cautious approach and pay special attention to liquidity, funding and capital,‖ Hommen said in a
statement. ―In 2011, market circumstances became increasingly difficult and volatile, and we expect
that to remain the case in the near future.‖
Read more…
The company's stock has fallen 2 percent by the close of trading in Amsterdam on Friday, the day ING
made its announcement, and 20.5 percent over the last 12 months. The Dutch company expects to save
EUR 300 million a year by 2015 through so-called procurement initiatives, which will look to centralize
purchasing across the firm to reduce costs. It also wants to reduce its cost-income ratio—a measure of a
bank's profitability—to 50 to 53 percent by 2015 compared to 55.8 percent at the end of the 2011 third
quarter.
Source: New York Times
ALTAN RIO COMPLETES 2011 DRILLING PROGRAM
Altan Rio Minerals Limited has completed drilling at the Chandman copper-gold project in Khovd Aimag.
Encouraged by 2009 and 2010 results from two drill campaigns, Altan Rio developed a larger drilling
program for 2011. The firm employed Falcon Drilling Mongolia LLC to drill 13 diamond drill holes for a
total of 7,815.5 meters for its 2011 Chandman drill program. The company expects results from
exploration to materialize in early 2012.
The Chandman-Yol project is located in mountainous basin and range country in eastern Khovd, about
1,050 kilometers west of Ulaanbaatar. Altan Rio has invested approximately USD 15 million to date,
exploring the project with work that includes geophysical surveys, geochemistry, sampling, trenching,
and diamond drilling. Altan Rio, founded in 2007 and based in Vancouver, explores large-scale gold and
copper projects in Mongolia. The company currently has exploring licenses totaling more than 153,310
hectares.
Source: Altan Rio Minerals Limited
RIO FINALIZES HATHOR DEAL
Oyu Tolgoi project manager Rio Tinto PLC has completed its acquisition of Canadian uranium junior
Hathor Exploration Limited as the company bets on the sector recovering from the Fukushima Nuclear
disaster.
Rio Tinto said it had compulsorily acquired the remaining 7.9 million shares not voluntarily after
offering AUD 623 million (USD 642 million) as a takeover bid in October. The miner offered CAD 4.70

10. (USD 4.63) a share to secure Hathor Exploration, trumping North American-focused uranium company
Cameco's CAD 4.50 a share bid.
―Rio Tinto is now the registered holder of 134,290,661 Hathor common shares, representing 100
percent of the outstanding Hathor common shares on a fully-diluted basis,‖ Rio said in a statement.
Hathor is based near western Canada's Athabasca Basin and supplies about a fifth of the world's
uranium. Uranium prices have suffered since the Fukushima disaster in March last year. Many analysts,
however, are tipping a recovery with demand driven by China and India as they look to boost their
nuclear power capacities.
Source: AFP
ECONOMY
GOVERNMENT INTRODUCES PRICE CONTROL COUNCIL
The government has established a Price Control Council tasked with containing the country's rising
inflation. The council, headed by former Finance Minister S. Bayartsogt, will oversee the
implementation of a price control program and report to the government every month.
The government has urged all its agencies and local governments to improve the supply of consumer
goods, oversee prices, and save expenditures. It has also approved a proposal put forward by Ch.
Khurelbaatar, Chief of the Cabinet Secretariat, to stabilize the price of gasoline, food and public
transportation fares.
Under the proposal, the government is expected to regulate prices of the above-mentioned consumer
goods and services as well as the Mongolian currency's exchange rate against the U.S. dollar. Mongolia's
consumer goods prices have been increasing dramatically over the last two years. Inflation in the
country reached 10.2 percent in 2011.
Source: CRI English
RELEASE OF MEAT RESERVES HELPS BALANCE PRICES
Meat prices have fallen shortly after the release of meat reserves by the government. The Ulaanbaatar
budget allocated MNT 6.8 million to reserve meat preparation.
Residents of the capital say reserved meat sales help drive down the prices of meat products. About
12,000 tons of meat from 22 companies was sold at supermarkets. A kilo of beef costs MNT 3,700; 3,200
for mutton; and 2,600 for goat meat. The prices are twice as cheap as meat prices from last week.
The price fall comes just as hikes in fuel prices threaten to push up the prices of consumer goods across
the board.
Source: News.mn
GOVERNMENT SETS OUT TO GRAPPLE WITH EXCHANGE RATES AND FUEL PRICES
In light of a recent price low for the tugrug and rising fuel prices, the government held council to
organize and supervise the implementation of a new program to stabilize changes in prices at a cabinet
meeting. Last week, the Mongolian tugrug valued at MNT 1,410.54 against the U.S. dollar, while gas
prices reach 1,800 per liter for the most widely used regular gasoline at Petrovis gas stations.
The government advised the governor of the Bank of Mongolia to take measures that would lower the
exchange rate to limit artificial growth in fuel prices. It also assigned ministers to negotiate and
establish agreements with foreign countries to create a stable supply and prices for petroleum
products. Deputy Minister of Minerals Resources and Energy B. Ariunsan will lead a task force to
determine the source of the price fluctuations. Other ministers will review the affairs of the Fair
Competition and Consumers authority and Consumer Rights Protections Society, which the government
said have failed to follow through with their objectives.
The government expects the task forces to examine the situation and make conclusions about whether

11. the price fluctuations are the result of an intentional scheme. If it is discovered that any officials have
behaved inappropriately, the government has promised to take measures against those individuals. The
government has also said it would cancel the permits of any importers that allow the import of fuels if
it finds any importers have manipulated the market.
The tugrug has depreciated since the second half of 2011. The Central Bank has intervened with a plan
to sell USD 280 million, or 10 percent of its total foreign exchange reserves, to bring the exchange rate
to MNT 1,400. Coal and copper export prices have worsened external market conditions, making the
dumping of foreign currency reserves a risky solution, said Dale Choi, Frontier Securities' chief market
strategist. Choi said the government has employed foreign currency auctions, and noninterference with
growth in the exchange rate thus far for stabilization. MPs have said they must review the current
exchange rate policy.
Source: Frontier Securities
MONGOL BANK AUCTIONS USD 11.8 MILLION
The Bank of Mongolia has directed the exchange rate to stability by selling USD 11.8 million on 13
January.
Commercial banks submitted proposals to sell USD 20 million; however the Bank of Mongolia did not
make any purchases. Instead, the Central Bank accepted the offer to buy MNT 22.8 million, with the
lowest rate of MNT 1,355 and the highest at MNT 1,398, and has sold 11.8 million USD at the closing
rate of MNT 1,387.
Source: InfoMongolia.com
OIL AND GAS ASSOCIATION HEAD BLAMES MONGOL BANK FOR FUEL PRICE HIKES
The head of the Oil and Gas Association and director of the oil firm M-Oil Group, Mr. Batbayar, said
that price increases are a result of several months of appreciation to the U.S. dollar. When the Oil and
Gas Association discussed the matter with the government, it said that the rally of the U.S. dollar
would soon end, but only rose further afterwards. The weakness of the tugrug forced the group to
decide upon price hikes, he said.
Batbayar criticized the Bank of Mongolia, which has said that it held USD 2.5 billion in its reserves, but
did not act to stall further appreciation of the U.S. dollar. The U.S. dollar has appreciated exclusively
in Mongolia, yet the Bank did not act, he said.
He added that around 70 companies have the right to import gasoline, but less than 10 are currently
active. He used this fact as evidence of just how difficult and cutthroat this industry is.
Source: Zuunii Medee
ADB AND GOVERNMENT TEAM UP TO COMBAT POVERTY
The Asian Development Bank (ADB) and the Ministry of Finance have established two grants to improve
urban services in Ulaanbaatar's ger districts to improve financial services for the low-income
households. The grant for the Ulaanbaatar Urban Services and Ger Areas Development Investment
Program and the grant for Promoting Inclusive Financial Services for the Poor, for USD 1.5 million and
USD 2.5 million respectively, are financed by the Japanese Fund for Poverty Reduction (JFPR).
―The new ADB project will be the single largest investment to create jobs and improve livelihoods in
Ulaanbaatar's rapidly expanding ger areas,‖ said Robert Schoellhammer, who signed the agreements on
behalf of ADB.
The grants will be used to prepare a set of projects to provide basic urban infrastructure in ger areas—
mainly water, wastewater, and heating—while improving urban services to provide more job
opportunities and livelihood services. Ger areas house 60 percent of the population of Ulaanbaatar.
However, the lack of urban planning, services and basic infrastructure is severely damaging the
environment, threatening the health of city residents, and causing a high level of congestion in the city

12. center. The situation is also constraining the economic growth of ger districts.
The grant for Promoting Inclusive Financial Services for the Poor will help improve and expand savings
and credit services for low income households, especially in rural areas. It will ensure that savings and
credit cooperatives grow responsibly under strong regulation by the Financial Regulatory Committee
(FRC). Financial education in the form of television dramas will also be introduced.
Source: Montsame
COMMODITY PRICES TO MAKE OR BREAK 2012 GROWTH
While 2012 looks to be another year of growth, it will largely depend on the commodities market.
Preliminary estimates by the National Statistics Office (NSO) indicate real gross domestic product (GDP)
growth of 17.3 percent in 2011.
The agency attributed growth to increases by 42.6 percent in wholesale and retail trade; 17.3 percent
in automobile and motorcycle repair; 14.3 percent in construction; and 8.7 percent in mining.
The World Bank has posited that overall growth is driven by infrastructure development for the mining
sector as the economy prepares for operations to begin at the Oyu Tolgoi project. Net taxes on
products are the biggest contributor to growth, reported the NSO.
―Frontier Securities believes that the latest NSO data shows that infrastructure spending, expansionary
fiscal policies, strong commodity prices, booming mineral exports, ongoing development of large mining
projects, [and] surging credit growth is translating into very strong consumer spending...‖ said Dale
Choi, chief investment strategist of Frontier Securities.‖
Choi said the consensus in the industry is that ―furious expansion‖ will continue and reported a forecast
of growth between 15.1 percent and 16.6 percent in 2012 if commodity prices remain favorable.
―Mongolia is completely at the mercy of commodity prices," said Choi, ―[as] a mineral dependent
economy and bust is just around the corner.‖
Source: Frontier Securities
RISE OF RESOURCE NATIONS
What do Bolivia, Mongolia and Burkina Faso have in common? The three are members of the rapidly
growing category of commodities-dependent countries—nations that rely on minerals and hydrocarbons
for more than 25 percent of their exports.
The number of commodities-dependent countries has risen sharply over the past 15 years in tandem
with the increasing prices fetched by raw materials. The trend is particularly pronounced from 2002
when miners and oil companies moved to frontier territories, putting more countries on the world's
resource map.
According to a recently published study by consultancy Oxford Policy Management, the number of
commodities-dependent countries with low and middle incomes is up from 46 to 61 countries. The rise
has profound implications both for the global economy and the natural resource industry. The increase
means that more low-and-middle-income countries have become dangerously dependent on
commodities exports, leaving them highly vulnerable to a global economic downturn. Moreover, the
recent and rapid rise in commodities dependence would suggest that more countries are at risk of the
―resource curse‖—where commodities wealth does more ill than good to poor countries. Mongolia was
one of 12 nations mentioned by Oxford Policy Management that is at risk from the resource curse for
minerals.
The rise in the number of commodities-dependent countries also presents a challenge, usually in the
form of demands for much higher revenues from the extraction of commodities; including royalties,
taxes, salaries, and social investments. The fundamental mismatch between local expectations and
what companies can actually deliver in terms of benefits is a driver of much of the social tensions
witnessed in relations to resource projects over the last decade. Worse, ―local conflicts can easily
escalate to national-level political battles,‖ as almost occurred here in Mongolia when 20 MPs

13. demanded a larger stake in the Oyu Tolgoi project.
Source: Financial Times
COPPER INVENTORIES HIT 13-MONTH LOW
Copper inventories in London Metal Exchange (LME) warehouses have dropped to a 13-month low. More
declines are seen likely as a pick-up in U.S. demand and concerns about a market deficit outweigh a
slowdown in buying from top consumer China. Copper is already a major commodity in Mongolia that is
due to expand in 2013 once Oyu Tolgoi LLC begins commercial production.
LME inventories of the metal used in power and construction fell this week by a further 1,150 tons to
353,425 tons, their lowest level since mid-December 2010, which represents movements a day in
arrears. Canceled warrants, or metal earmarked for delivery, account for nearly 20 percent of stocks.
Inventories are due to fall in coming weeks below 300,000 tons to the lowest levels since 2009.
A 25 percent drop in LME copper prices in the fourth quarter, which touched a low of USD 6,635 a ton
in October, triggered restocking in China, which accounts for about 40 percent of global copper
consumption. But Chinese buying is now likely to take a back seat as prices have recovered to about
USD 8,150 per ton, business slows ahead of the Lunar New Year and the London-Shanghai arbitrage is no
longer favorable.
Balancing the expected slowdown in copper buying from China are some emerging bright spots for
demand, with recent U.S. data from the labor market to manufacturing showing signs of a pick-up in
economic activity.
An anticipated market deficit this year may also be pushing copper stocks down. The global market for
refined copper is seen in a 250,000 ton production deficit in 2012, before easing to become nearly
balanced in 2013.
Source: Reuters
GOLD COMPANY EXECUTIVES ANTICIPATE USD 2,000 AN OZ FOR GOLD IN 2012
Mining companies expect the price of gold to continue to increase this year, with firms surveyed by
PricewaterhouseCoopers (PwC) expecting the precious metal to peak at USD 2,000 an ounce this year.
Rising gold prices have had companies such as Ivanhoe Mines Ltd. put greater emphasis on gold
production to offset production costs, and have further drawn independent ninja miners to the precious
metals.
In its latest ―Gold Price Report,‖ PwC said that 80 percent of mining companies expect higher gold
prices in 2012, with only 6 percent anticipating a decline. Predictions from executives surveyed
hovered at the USD 2,000 an ounce mark, with the higher prediction at USD 2,500 an ounce and the
lowest at USD 1,350 an ounce. Gold, which topped at USD 1,900 an ounce last year, traded at USD
1,640 an ounce on Monday.
The PwC report also found that mining companies were struggling to reap the full benefits of a high
gold price. More than half of the respondents said the price of gold was positively impacting on their
stock price, but the impact was less than what they expected.
More companies were also expected to spend for acquisitions in 2012. PwC stated that acquisitions
remained on the minds of gold mining executives with 29 percent of those surveyed expected to spend
their cash on acquisitions in 2012—up from 19 percent in 2011. About 40 percent of companies were
planning to replace reserves through acquisitions. Over 500 gold acquisitions valued at about USD 11.2
billion were completed during 2011 compared with 483 acquisitions with a value of USD 18.2 billion in
2010.
The ―Gold Price Report‖ assessed gold companies globally, with companies surveyed representing 26.5
million ounces of gold mined in 2011, and 37.5 million ounces to be mined in 2012.
Source: Mining Weekly

14. MONGOLIA MAKES BIG IMPROVEMENTS ON INDEX OF ECONOMIC FREEDOM
Mongolia ranks 81st on the 2012 Index of Economic Freedom, receiving an economic freedom score of
61.5. Its overall score is 2.0 points higher than last year mainly due to increased scores in fiscal
freedom and government spending.
The Mongolian economy registered one of the 10 largest core improvements in the 2012 Index,
regaining the status of a ―moderately free‖ economy. Renewed progress in advancing economic
freedom has restored momentum for institutional reforms that are critical to ensuring long-term
economic vitality. Mongolian entrepreneurs have benefited from better access to financing following
banking reforms. Competitive tax rates and open trade regime are also promoting a vibrant private
sector.
Although Mongolia experienced no decline in any area covered by the index, corruption and weak rule
of law drags on economic development. Accelerating judicial reforms, along with the continued efforts
to streamline public administration, will help sustain economic growth and improve living standards.
For over a decade, the Wall Street Journal and The Heritage Foundation, a Washington D.C. think tank,
have tracked the march of economic freedom around the world with the Index of Economic Freedom. It
claims to have brought the theories of Adam Smith to life by creating 10 benchmarks that gauge the
economic success of 184 nations.
Source: The Heritage Foundation
BEIJING DEFENDS AGAINST INFLATION
Inflation in China slowed slightly in December, but was marginally above market expectations. Experts
have pointed to inflation in China as an external factor creating inflationary pressures in Mongolia, as a
large exporter of Chinese goods.
―We think Beijing is reasonably comfortable with policy settings, with any shift in the near term likely
to take the form of lower bank-reserve requirements rather than cuts in benchmark interest rates,‖
Royal Bank of Canada economist Brian Jackson said in a note.
Analysts widely expect China's central bank to lower the reserve ratio—which would free up funds for
banking lending—by the Lunar New Year holiday, which starts 22 January. The People's Bank of China
last lowered the reserve ratio at the end of November, effective from December, but has resisted
making any more powerful measures, such as cutting interest rates.
Source: Wall Street Journal
CHINA HAS TAKEN ITS “SOFT LANDING,” SAYS BRIC ECONOMIST
Jim O'Neil, the economist who coined the term BRIC a decade ago, said China's fourth-quarter growth
rate, while the slowest in more than two years, was stronger than many analysts had forecast and was
a ―blow‖ to those predicting a ―hard landing‖ for the nation's economy.
China's economy grew 8.9 percent in the fourth quarter from a year earlier, the statistics bureau said
yesterday in Beijing. That exceeded the 8.7 percent median estimate of 26 economists surveyed by
Bloomberg News and is above the 8 percent that signals a ―soft landing‖ for China. O'Neill, chairman of
Goldman Sachs Asset Management, said that if China grew an annual rate of 7.5 percent this decade, as
he forecast, it would contribute more to world growth in dollar terms than the United States and
Europe combined. A hard landing would have meant drastic consequences, as Mongolia is heavily reliant
on China's consumption of its metals and energy products.
One of China's key economic challenges is its overheated property market, Yet China's policy makers, by
tightening monetary policy, managed to stem the property bubble, O'Neill said, something Western
policy makers had failed to do before the subprime property meltdown that began in the United States
in the middle of the last decade.
―China's property prices have turned lower because Chinese authorities have deliberately stopped
them,‖ he said. He went on to further discuss how China manages its currency: ―There are two ways of

15. dealing with exchange-rate issues, one is moving the nominal exchange rate; the second is to raise your
prices and wages higher than everybody else, and the Chinese are deliberately doing that with wages.‖
Source: Bloomberg
POLITICS
PRESIDENT WEIGHS IN ON PRICE GAINS
President Ts. Elbegdorj has recommended to Prime Minister S. Batbold that no individual should serve
as both an MP and minister during a recent conversation discussing how the government shall move
forward following the resignation of Democratic Party (DP) members. The two leaders discussed the
current situation as Mongolia suffers from political and economic discord.
―Irresponsible state servants cannot be appointed to the significant positions, so it is vitally important
to investigate or to study those seeking the highest posts,‖ said the president.
Party members have left their posts as the DP has pulled out from the coalition government and now
must be replaced. The rise in prices to fuel and consumer goods are the faults of policy makers, the
president said. He added that these problems had been discussed since last year, and there should be
no further delay to their resolution.
Elbegdorj said that talks could only be held after the Prime Minister has been informed on the situation
on prices jumps. Batbold also committed to the effort to study the issue and develop proposals to
submit to Parliament.
Source: Montsame
GOVERNMENT IMPOSES PENALTIES FOR HIKES TO FUEL PRICES
The government imposed fines and dismissed government heads after it determined that raised prices
were significantly higher than what the exchange rate volatility warranted. An inspection team said
that importers who had coordinated to raise prices violated a competition law, and that the working
group that negotiated the price rise did not have the authority to do so.
The Bank of Mongolia compared the average currency rate in November to that of 7 January, when gas
prices jumped some MNT 150, and determined a price appropriate to the currency fluctuations. It
found that prices hikes should had ranged between MNT 133 to MNT 170 depending on the type of fuel,
compared with MNT 235 to MNT 260 as some importers priced fuel.
The government plans to impose fines equal to six percent of last year's profits on the companies the
government believes has manipulated fuel prices. After listening to a report by the Fair Competition
and Consumer Protection Agency (FCCPA), cabinet members decided that agencies had not taken
timely action to prevent the price gains. Cabinet members dismissed D. Amarsaikhan, the head of the
Petroleum Authority for this negligence. From the FCCPA, D. Mandakh, the agency head, and deputies
Ts. Amaraa and Ts. Dorjpalam resigned upon request. Those of the FCCPA received criticism for walking
out on a supposedly illegal discussion taking place in a working group meeting led by the Deputy
Minister of Mineral Resources and Energy, B. Ariunsan, to set the prices, and thereby allowing prices to
rise.
Source: CPSI NewsWire, Undesnii Shuudan
DP MINISTERS RESIGN
First Deputy Premier N. Altankhuyag handed the resignations of Democratic Party ministers last week to
Prime Minister S. Batbold. The action comes after the DP's recent decision to pull out of the coalition
government pact between the DP and the Mongolian People's Party (MPP).
―Our action is based on the decision made at the 35th meeting of the DP National Consultative
Committee on 11 January, and on the law on government,‖ says the letter.
The letter of resignation includes the signature of Altankhuyag, Minister of Finance S. Bayartsogt,

16. Minister of Environment and Tourism L. Gansukh, Minister of Defense L. Bold, Minister of Road
Transportation, Construction and Urban Development Kh. Battulga, and Minister of Health S. Lambaa.
Source: Montsame
CABINET DISCHARGES NUCLEAR OFFICIAL
The head of the Nuclear Energy Agency (NEA), S. Enkhbat, has been discharged from his post this week.
Cabinet members criticized the official for neglecting certain aspects of his work, and for what they
believed to be bad implementation of the tasks he was responsible for. Cabinet members said that
Enkhbat failed to present his work to the Cabinet in August as he was assigned to do. Members also said
he traveled abroad several times without receiving permission.
Source: Montsame
ELECTION BREAKS UP COALITION GOVERNMENT
The dissolution of the Grand Coalition in Parliament is still a work in progress, with leaders of both
parties working for a smooth transition. Last week the Democratic Party (DP) confirmed its decision to
pull out from its cooperative pact in Parliament with the Mongolian People's Party (MPP).
Changes in policies simply because of the dissolution of the coalition would be unexpected. The
Democratic Party pulled out of the arrangement, citing the upcoming June 2012 elections.
―Besides filling the cabinet seats being vacated by the DP with MPP appointees, the ruling MPP may
reshuffle some other ministerial portfolios, which is common in many democratic parliamentary
systems as elections approach,‖ said Steve Saunders, President of the North America-Mongolia Business
Council.
Source: NAMBC
UMNUGOBI RESIDENTS STILL WITHOUT POWER
Dalanzadgad Soum has been without power for over a week. The turbine generators of the power plant
in Dalanzadgad of Umnugobi Aimag have been down since 18 December, while the power plant has
failed to supply power to the provincial capital since 10 January.
The generator is reportedly down because of coal stone content. The local administration has invested
USD 3.9 million for the construction of a power plan extension in 2011, but it had problems during its
testing. For now diesel stations generate heat for the city, but can only do so for a limited time.
Provincial officials have sent requests to the central government and State Emergency Commission that
five communities have had difficulty with electricity and heating due to the failure at the power plant.
The Trade Union of Umnugobi Aimag held a meeting where officials from the power plant and local
resident demanded the immediate connection of a 110 kilo watt line between Tsogttsetsii Soum and
Dalanzadgad. A power plant will begin operation in Tsogttsetsii in September. At the meeting,
attendees also demanded an explanation for the cause for the power failure.
Source: News.mn
DP LOOKS TO POSITION ITSELF FOR GREATER INFLUENCE ON FREE MARKET POLICIES
The Democratic Party has proposed that it play a larger role in the private sector with a series of
proposals to Parliament.
Party members officially proposed that the ban on mining licenses in Parliament extend until the
passage of the Law on Minerals. It has also suggested it should lead certain matters with the Standing
Committee on Economy. The first issue would be in regard to the government's stake in the Oyu Tolgoi
project and the second to form a working group to study the operations of Energy Resources. It said
that the company has received extensive coverage in the media, so therefore needs more attention
from government.
Source: Udriin Sonin

17. PARLIAMENT APPROVES STUDENT STIPENDS
Parliament approved the MNT 70,000 monthly student stipend this week with 82.1 percent approval.
The passage was made during a discussion for amendments to the Law on Special Funds by the
Government and the Law on Financing Higher Education and Social Guarantees to Students.
This week the government has released a report that explains the regulations of the law, with details
to the new amendments made. The report explains that the grants will come from the State Education
Fund and will be given to 150,000 students of 94 universities.
Source: Zuuni Medee
MONGOLIA AND CHINA MOVE TO STRENGTHEN ECONOMIC AND POLITICAL TIES
Mongolia and China will cooperate in a number of mining and energy projects this year, said the
Minister of Foreign Affairs and Trade during a visit last week. Over the course of his visit, Minister G.
Zandanshatar discussed a number of intentions for mutual cooperation work between the two nations.
―In Mongolia there are some large scale mining projects to be commissioned soon, and one of them is
Oyu Tolgoi copper and gold mine,‖ said Minister G. Zandanshatar.
The Aluminum Corporation of China has reportedly tried to obtain interest in the Oyu Tolgoi copper and
gold project, but has not succeeded, said a source from the Mongolian embassy in China. China Shenhua
Group is a selected stakeholder to jointly develop the Tavan Tolgoi coal mine. Zandanshatar said the
firm would ―play a very important role,‖ and added that China and Mongolia agreed to address a
number of important issues concerning other energy needs for Mongolia.
China is reportedly ready to provide petroleum products in the short term, and Zandanshatar hopes the
two countries set up a joint refinery to meet increasing demand for petroleum products in Mongolia.
Over the last decade, China was reportedly Mongolia's largest investment and trading partner.
Zandanshatar reported a bilateral trade turnover increase of USD 5.7 billion and that by the end of last
year 90 percent of Mongolian exports had landed in China.
Zhou Yongkang, a member of the Standing Committee of the Political Bureau of the Communist Party of
China's Central Committee pledged for cooperation as well. He called for the two countries to expand
exchanges in education, culture, and ties between the youth of each nation. China and Mongolia have
also cooperated in defense, as exchange visits of senior officials have become common. In 2011 the
Chinese Defense Ministry assisted in building a rehabilitation center for peace keepers near
Ulaanbaatar.
―As a neighbor, we enjoy excellent relations and cooperation with China,‖ said Zandanshatar. ―We will
realize the existing potential to expand and intensify this cooperation.‖ He added that the rise in status
of China is ―not a threat,‖ but rather a great opportunity.
Source: China Daily, CRI English
MEMOIR BY U.S. AMBASSADOR DUE FOR 2012 RELEASE AS DUTY'S END NEARS
As the current U.S. Ambassador to Mongolia's three-year tour of duty is slated to end this fall, a book
discussing his 25 years of experience with Mongolia is due for release this year.
Ambassador Jonathan Addleton has written a book covering 25 years diplomatic relations between the
United States and Mongolia, with the working title A Most Helpful Factor: US-Mongolian Diplomatic
Relations 1987-2012. Approval from the State Department for publication of the manuscript may push
its release date to June or later. The Mongolian edition, sponsored by the Jack Weatherford
Foundation, is likely to be published earlier.
Addleton's replacement will have to pass a series of internal vetting procedures. One would be selected
by the State Department from career officers by the end of January. After that person's approval, the
candidate would be nominated by the president in March or April, confirmed by the Senate by July,
sworn in by September, and arrive in Ulaanbaatar after Addleton departs in the fall.
U.S presidential and congressional elections this year could delay the proceedings however. The White

18. House will be preoccupied and the Senate will be in sessions for fewer days because of additional
recesses for national party conventions.
Source: NAMBC
POLICE INTERROGATE JOURNALISTS AND DEMAND SOURCES
The Mongolian Journalists Union and TV-9 have reported increasing pressure from police officials to
disclose their unnamed sources.
Police officials have gone as far as to threaten reporters with charging them with crimes if they do not
give up their right to keep their unnamed sources confidential. Police have focused their attentions on
one program by TV-9 in particular. The police have reportedly interrogated journalist N. Binderya,
general producer D. Turmunk, and other staff about the program. The police have demanded that
journalists name their sources and the content of the program. TV-9 has since decided to suspend the
release of that program.
The reports come recently after the International Federation of Journalists (IFJ) condemned an assault
on the Khongor Television news crew on 2 January, where guards reportedly assaulted journalist T.
Danaasuren and camera operator J. Tuvshintulga during an incident between independent artisan
miners and guards from the Special Mines Company in Bayankhongor Aimag. The television crew was
reportedly approached by the company's guards while entering Special Mines' premises to investigate
the dispute. The guards reportedly threatened to kill the news crew, and stuck their truncheons into
the face of Danaasuren. The guards seized the crew's camera and detained them in an unheated ger for
two hours. The camera was destroyed during the scuffle between the camera operator and the guards.
Source: Zuunii Medee
NEW MEDIA GROUP SPEAKS OUT TO DEFEND ENVIRONMENT
The new group of journalists, Nomad Green, has been advocating for the environment on the web. It
has spotlighted issues such as water and air pollution. The articles produced by the group are originally
posted in Mongolian language, but some have been translated in Chinese and English.
Student B. Munkhtsatsral has reported the effects of global warming since 1970, which includes
wildfires, dust storms and blizzards. Another article by N. Bulgantsetseg argues that although gers, the
traditional Mongolian dwelling, contribute to pollution in the capital, their use in the countryside is
more appropriate.
―Every year there's 600,000 cubic meters of trash. Twenty five percent is paper, 17 percent is organic,
34 is percent plastic cans bottles and ash,‖ said E. Bolorerdene, another contributor.
Other reports discuss the effects industry has contributed to environmental degradation. For example,
detergent factories have contributed to the pollution of the Tuul River.
Source: Rising Voices
CITIZENS FORM COMMUNITY WATCH GROUP TO COMBAT ANIMAL THIEVERY
Citizens living within Tuv Aimag have responded to a spike in animal theft last year by forming a
community organization aiming to deter crime.
Last year in Tuv, the crime rate rose 7.4 percent to 671 reported crimes. Of those crimes, 65 percent
were resolved by the authorities, which left many people living in the outskirts of the city and in the
countryside unhappy, said Police Colonel D. Boldbaatar. The group attributed crime within the province
to proximity to the city and higher prices for meat.
Community members have divided 24 communities within the province into four sections to combat
animal theft. The group of herders now holds regular meetings with local government to address
grievances and discuss reported crimes.
The group has placed at least some of the blame for the increase in theft on themselves, saying they
have not taking responsibility into their own hands before now. Boldbaatar said that the community

19. watch group helped apprehend a gang of 10 animal thieves last year.
Source: Zuunii Medee
BORDER TO CLOSE FOR CHINESE NEW YEAR
The Mongolian-Chinese border will close in observance of the Chinese Lunar New Year, which is to
occur 22 to 24 January this year. Airway and railway ports, however, will operate on schedule.
China closes its border ports on 1 January, the first three days of the Chinese New Year, and the first
three days of May and October. Mongolia closes its border ports on 1 January, the first two days of
Tsagaan Sar (the Mongolian Lunar New Year, which falls on 22 to 23 February this year), 8 March, 1
June, 11 to 12 July for the Naadam summer celebration, and November 26.
Source: InfoMongolia.com
PRESIDENT ENDORSES WIDER USE OF TRADITIONAL SCRIPT
President Ts. Elbegdorj called learning the classical Mongolian script the duty of every Mongolian in an
appeal for its more widespread use at a recently held national calligraphy contest.
―Making traditional script a part of everyday life requires time and effort. Though we are encountering
many challenges, the number of people who know the script is on the rise year by year,‖ he said.
Last July the president ordered the use of the vertical script in high-ranking official letters and
documents such as birth and marriage certificates and graduate diplomas.
The traditional Mongolian alphabet was used until 1946, when Cyrillic was introduced from Russia. The
government started a campaign to re-introduce it for public use in the early 1990s, but Cyrillic remains
the mainstay of daily life and is used in almost all books and newspapers.
Source: Xinhua
ANNOUNCEMENTS
PMESSENTIALS AT ULAANBAATAR IN FEBRUARY
The American University of Mongolia's Center for Executive Education will hold three consecutive two-
day intensive Project Management Essentials (pmEssentials) programs in February 2012 in Ulaanbaatar.
This two-day intensive workshop is delivered by an experienced, practicing project manager and
academic to introduce project management concepts, principles, and procedures based on the Project
Management Body of Knowledge. Upon completion participants will learn practical and ready-to-use
tools and techniques of project management. Skill to learn include identifying project aims, objectives,
and outcomes; writing a project plan; monitoring progress and taking corrective actions; using project
management techniques.
Enrollment is based on a first-come-first-served basis, and is limited to only 15 participants per
workshop. For more information, visit aum.mn for a detailed program description and enrollment
forms; or contact Program Manager Muggie Davaa by email at munkhjargal@newcom.mn or by phone at
9911 7429.
___________________________________________
MICHAEL ALDRICH: OLD PEKING AS A MONGOLIAN CAPITAL, 26 JANUARY, 5:30 PM
Michael Aldrich will speak on the ongoing Mongolian contributions to China at the Mongolian University
of Science and Technology on Thursday 26 January at 5:30 PM. The lecture, organized by the American
Center for Mongolian Studies (ACMS), will be held in the central library/E-School building, in
conference room 405.
The Mongolian contributions to Chinese culture has often been presented as a brief chapter in text
books, while many Chinese have thought of the Yuan dynasty of the Mongols (1271-1368) was one of
uncultured barbarians. Aldrich will present a lecture on Old Peking as a Mongolian capital to China. He

20. will discuss how and why Mongolian leaders transformed Peking into a city carefully modeled on
Chinese cosmological principles whose traces can still be seen today.
Aldrich is the Managing Partner of the Ulaanbaatar office of Hogan Lovells and frequently writes and
lectures on Asian history and culture. He has lived in Asia for nearly a quarter of a century, and in 2009
moved to Mongolia to develop his firm's Mongolia practice.
____________________________________________
PDAC 2012 IN TORONTO, 4 MARCH – REGISTER NOW AT BCM
The Business Council of Mongolia with support from the Trade Department of the Canadian Embassy is
now registering its Mongolian business delegation to participate in the International Mining Investment,
Services and Equipment Trade Fair, PDAC 2012. The event will be held in Toronto, Canada from 4 to 7
March 2012.
This four-day annual convention held in Toronto, Canada has grown in size, stature and influence since
it began in 1932. Today it is the event of choice for the world‘s mineral industry. In addition to meeting
over 1,000 exhibitors and 27,700 attendees from 120 countries, participants will have the opportunity
to attend technical sessions, short courses, as well as social and networking events.
Please call 317027 or email saruul@bcmongolia.org, undral@bcmongolia.org for registration and
additional information about the event.
Registration deadline is 6:00 PM, 27 January 2012.
___________________________________________
COAL MONGOLIA, 9-10 FEBRUARY, ULAANBAATAR
The Coal Mongolia Conference will be held to attract technical and financial investments into the coal
sector of Mongolia in Ulaanbaatar at the SS Convention Center on 9-10 February.
The conference will cover topics for both extractive and mineral processing industries. Presenters will
introduce advanced environmental and technical practices they believe Mongolia should embrace. The
producers also hope the conference can be used to build corporate ties to ultimately strengthen
Mongolia's competitiveness in the region and develop personal networks.
The event is intended for Public sector representatives, coal prospecting and mining companies,
investment funds, banking and financial institutions, engineering and consulting firms, suppliers and
vendors, and professional associations. Attendees can expect seminars and workshops, exhibition
showcasing various projects and companies, a plenary session, an awards presentation dinner in honor
of best performers of the coal sector, and a site visit.
BCM is an Official Supporting Organization for this conference. BCM members will receive a 10%
discount when registering. They should contact Saruul at BCM, call at +976-11-317027 or email
saruul@bcmongolia.org.
___________________________________________
USETEC - COLOGNE, GERMANY MARCH 05-07.2012
The Business Council of Mongolia with support of the GIZ‘s Integrated Mineral Resources Initiative
project is now registering Mongolian business delegation to USETEC (One of the World‘s biggest
international mining and industrial used machinery trade fair) Cologne, Germany March 05-07. 2012.
The event will have used machinery dealers with a wide range of products on offer. A large number of
exhibitors and visitors will participate in this event from all over the world. The exhibitors will have
huge selection of machines and all these machines will be displayed in the fair.
The program includes also business & entertainment activities in Cologne.
Please contact 317027, 99066062 or serod@bcmongolia.org for registration and additional information
about the event.
Registration will close 6:00PM, Feb 10, 2012.

21. ___________________________________________
“MM TODAY” ON MNB-TV, FRIDAYS AT 18:20
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with BCM
on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is scheduled for
18:20 tonight. Tune in to watch this program that reports stories from today‘s BCM NewsWire.
___________________________________________
POSTINGS ON BCM‟S ENGLISH WEBSITE 'PRESENTATIONS' AND 'MONGOLIA REPORTS' SECTIONS AND
BCM‟S MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS
New for 2012 is a ‗Presentations‘ section on the BCM Mongolian website which can be reached via link
to bcm.mn/itgeluud. More than 10 presentations already posted!
As a key component of BCM‘s Mongolian website‘s ‗News‘ section, articles from the Government‘s
―Open-Government.mn‖ site are regularly posted.
On BCM‘s English website‘s ‗Resource, Presentations‘ section for your review are 7 speeches from the
Mongolian Investment Summit on December 8-9 in London, several speeches at the Risk Management
Forum on November 8 co-organized by BCM and Mandal Insurance, speeches at Discover Mongolia 2011,
speeches from BCM‘s 10 monthly meetings in 2011, and the address by Peter Nicholls, OT‘s VP-
Operations, at Global MInES in Sydney on July 4.
Also on BCM‘s English website‘s ‗Resource, Mongolia Reports‘ section, please note "Blitz and Lead" by
Sant Maral Foundation on August 2011, Z. Batbayar, Deputy Director of the Water Authority, at BCM‘s
Environmental Working Group‘s recent meeting and the Polit Barometer-May 2011 from Sant Maral
Foundation.
We are now posting some news stories and analyses relevant to Mongolia on the BCM website's
‗Mongolian Business News‘ as they come, instead of waiting until Friday to put them all together in the
weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will incorporate
items that are already on the home page in its comprehensive consolidated account of the week‘s
events.
___________________________________________
NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks. Keep
up to date on the latest business deals in Mongolia and how the climate for investment is improving
each day with BCM.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events with the
community. Hear breaking news and announcements as they happen when you follow BCM on Twitter
at http://twitter.com/#!/bcmongolia. Connect with BCM on Linked-in to join the diverse group of
professional contacts creating a better business environment in Mongolia today.
Of course for news information, interviews, and announcements regarding our organization, visit the
official BCM website at bcmongolia.org and bcm.mn.

22. ECONOMIC INDICATORS

23. 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-over-year (y-o-y)
CENTRAL BANK POLICY RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
CURRENCY RATES – January 19, 2012
Currency Name Currency Rate
U.S. dollar USD 1,387.41
Euro EUR 1,782.54
Japanese yen JPY 18.16
British pound GBP 2,140.01
Hong Kong dollar HKD 179.47
Chinese yuan CNY 219.52
Russian ruble RUB 44.01
South Korean won KRW 1.22
Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is selected
from various news sources. Opinions are those of the respective news sources.