BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 330 – June 20, 2014

NEWS HIGHLIGHTS:

Business

Erdenes TT ramps up coal exports with Shenhua deliveries;

Moody's rates TDB program‟s debt (P)B1;

Bank of China to loan $25mn to Tuushin;

Aspire buys 50% of Mongolia coal deposit in venture with Noble;

Moly World study identifies low-capex, high-return options;

Newera completes ground magnetic survey at Ulaan Tolgoi;

Kincora Copper: exclusivity agreement on Bronze Fox;

84 Lumber preps for 'blitz build';

CAA Eleven finds rights buyers in Mongolia and South Korea;

Mongolemimpeks enters pharmaceutical joint venture with Chinese firm;

Mongolia to privatize MIAT, MSE;

“Made in Germany” conference held in UB;

Mongolian Industry & Business Association launched in Istanbul;

10th Trilateral Business Forum for Mongolia, Russia, China held in UB;

Dacheng partner is Mongolia's first foreign-admitted lawyer;

The Cartel makes its way onto Mongolia TV;

Market cap of MSE falls.

Economy

Mongol Bank: FX auction, swap agreements, 1-week bills, treasury bills, bonds;

Mongolia FX reserves decline to „worrying‟ level, says Morgan Stanley;

UB to see hike in water costs;

PP3 annex goes online; PP5 will launch soon;

Naadam horse-racing stadium to be finished before 11 July;

Coal mining and exports fall;

Mongolia to export EUR 3mn in textiles;

Altanbulag leads Zamyn Uud in investments into free trade zones;

Late night transport service launches again in UB;

Gants Khudag detention facility closed;

Air pollution committee sends out warnings to 2,000 to clean up their acts;

Korea supports Mongolian forest-planting projects;

UQ research helps Mongolia tackle gender violence.

Politics

Tuvdendorj appointed as Minister of Industry and Agriculture;

Economic Standing Committee rejects dismissal of Economic Minister;

MPP appoints N. Nomtoibayar deputy chief;

Public holiday for Naadam extension proposal to Parliament;

Latvian president visits Mongolia;

Mongolia and Argentina to boost collaboration in agriculture;

South Korea to send troops to Khaan Quest;

Mongolia, France to cooperate in defense;

Mongolia and Vietnam statistics offices cooperate;

Erenhot cancels entrance fees for Mongolians;

Mongolia to provide visa-free entrance to 42 countries;

Mongolia, Turkey commemorate the 45th anniversary of diplomatic relations;

UN to partner with Mongolia to protect Gobi bear;

Demonstrators protest on Chinggis Square against uranium mining;

Mongolia to restore Kherlen Bars.

Others

Announcements;

BCM Updates - Working Groups; Websites; Social Networks; Photo Gallery.

ECONOMIC INDICATORS

Weekly Market Indicators;

Inflation;

Central bank Policy Rate;

Currency Rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank

International SOS

Wagner Asia Automotive

Invest Mongolia Agency

BCM MONTHLY MEETING ANNOUNCEMENT

BCM‟s monthly meeting for members will be on Monday, June 23 at 5PM at the BLUE SKY HOTEL,

3rd floor, “Crystal” conference room

The bilingual meeting will feature the following presentations: - Call to Order/Business Council of Mongolia: B. Byambasaikhan, Chairman, BCM - BCM Report: Jim Dwyer, Executive Director, BCM - Bekhbat Sodnom, Director General, Department of Innovation and Public Private Partnership, Ministry of Economic Development - "PPP current development in Mongolia" - B. Purevdorj, Director, Mongolia Immigration Agency – “Reducing Regulations” - Gansuld Tumentur, Executive Director, Outotec Mongolia - "Outotec Mineral Processing Solutions and Experience in Mongolia"

- Lisa Gardner, Journalist & Media trainer - "Mongolia's Media Laws: Defamation, Libel and Threats to Press Freedom"

New Members: 1. ESKO Services - provision of camp and remote site services, catering, housekeeping, camp management, camp design & construction and others. 2. Grandsmart - main activities focus on sales, marketing and distribution and after sales service of mobile and smart phones and sanitary ware, tile, stationary produced by Nokia and BIC, Grohe, RAK Ceramics across Mongolia. 3. Mobile Fleet Services - also known as BuyBigTires.com, offers the largest selection of off the road tires for mine sites, mining contractors, equipment dealers, and tire dealers across the planet. 4. Trafigura Mongolia - Commodities trader. Markets a wide range of minerals/chemicals including copper concentrate. Recently signed an off-take agreement with OT. 5. World Vision Mongolia - development and advocacy organization dedicated to working with

children, families and communities to overcome poverty and injustice.

BUSINESS

ERDENES TT RAMPS UP COAL EXPORTS WITH SHENHUA DELIVERIES

Erdenes Tavan Tolgoi LLC expects to see USD 21.8 million from coal sales to China's Shenhua Energy

Corp. this month.

Erdenes Tavan Tolgoi this week launched coal sales to Shenhua Energy, with the state-owned miner

set to export 450,000 tons of coal to Shenhua in June at a price of USD 48.5 per ton. Last year

Prime Minister Norov Altankhuyag struck a deal for the sale of 1 billion tons of coal from Erdenes

TT, Energy Resources LLC and Tavan Tolgoi JSC over two decades. The deal has coal prices to be set

on a monthly basis.

Erdenes TT will also provide 4.25 million tons of coal to eight other Chinese companies, for sales of

about USD 150 million at the lowest projected price of USD 35 per ton. Erdenes TT earned USD 17.4

million from coal export last month, out of total earnings of USD 21.8 among coal miners.

Source: Udriin Sonin

MOODY'S RATES TDB NOTES PROGRAM‟S DEBT (P) B1

Moody's Investors Service has assigned a (P)B1 rating on the long-term senior unsecured debt under

the Trade and Development Bank of (TDB) Mongolia LLC's USD 1 billion global medium term notes

program.

The program carries a letter of support from the Ministry of Finance on behalf of the government of

Mongolia (B1, negative). At the same time, Moody's has assigned a B1 rating to TDB's proposed

senior unsecured notes, which will be drawn from the GMTN program. All ratings have a negative

outlook.

The program's ratings do not immediately apply to any individual notes issued under the program.

Ratings on individual notes issued under the program will be subject to Moody's satisfactory review

of the terms and conditions set forth in the final base and supplemental offering circular and

pricing supplements of the notes to be issued.

Source: Moody‟s Investors Service

BANK OF CHINA TO LOAN $25MN TO TUUSHIN

Bank of China on 13 June signed a USD 25 million loan agreement with Mongolian transportation

company Tuushin LLC.

The loan is the first loan to a Mongolian company by Bank of China, one of the country's four largest

banks. The move could be the first step for the bank to open a local branch in Mongolia, as it says it

intends to do. About 40 Mongolian companies in energy, processing and infrastructure development

have applied for a sum total USD 3 billion in loans.

A bank representative said Bank of China plans to support more than 7,000 Chinese businesses

currently operating in Mongolia. However, the bank does not plan to compete with local banks for

deposits and loans to individuals.

Source: Undesnii Shuudan

ASPIRE BUYS 50% OF MONGOLIA COKING COAL DEPOSIT IN VENTURE WITH NOBLE

Aspire Mining Ltd. said it agreed to buy 50 percent of a venture with Noble Group Ltd. to expand its

footprint in the Asian nation.

Aspire will issue 10 million shares to Xanadu Mines Ltd., which currently holds the stake in the 50-50

venture with Noble, the Perth-based company said today in a statement. Aspire will give Xanadu a

further 5 million shares should the coking coal deposit the venture controls be able to certify that it

holds 30 million metric tons of resource. Noble and Aspire are expanding their partnership in

Mongolia, which already involves the Hong Kong-based commodity trader providing project

financing, port and rail access for the Australian miner. Noble, which owns 7.7 percent of Xanadu

Mines Ltd., is seeking to boost its supply of metallurgical coal from Mongolia as the nation neighbors

China, where about half of the world‟s steel is produced.

“Noble and Aspire have also agreed to work together to identify additional near term Mongolian

coking coal production opportunities with terms to be agreed on a case by case basis,” Aspire said

in the statement.

The venture with Noble owns 60 percent of the Nuurstei coking coal deposit that sits between two

of Aspire‟s projects in northern Mongolia. Coal from Nuurstei could blend with that of Aspire‟s

Ovoot project, providing marketing and operation synergies, the Australian company said. A mine at

Nuurstei would also help Aspire load the railway route it‟s planning to build to connect its northern

projects with the east of Mongolia, home of the bulk of the nation‟s railroads. This would open up

the potential to transport coal south to China or north to Russia. Aspire said it will make an

additional USD 200,000 payment to Xanadu once Nuurstei wins a mining license. Noble Group

retains control of all coal sales from Nuurstei, Aspire said.

Rio Tinto Group‟s SouthGobi Resources Ltd. owns 18.8 percent of Aspire, while Noble has a 15

percent stake.

Source: Bloomberg

MOLY WORLD STUDY IDENTIFIES LOW-CAPEX, HIGH-RETURN OPTIONS

Origo Partners PLC announced the results of a scoping study on the Mandal Moly molybdenum and

tungsten project in northwest Mongolia.

Origo's portfolio company Moly World Ltd. has identified the potential for an initial small scale open

pit operation (producing 3,000 tons of molybdenum and 155 tons of tungsten concentrate a year)

that could be brought into production for an investment of USD 43.6 million, including working

capital, with the option of further expansion, dependent upon future molybdenum prices. The study

has estimated that the Mandal Moly project is capable of a 46.8 percent internal rate of return,

with a net present value of USD 80.8 million (at a 12 percent discount rate), at current molybdenum

prices.

"The results of the study confirm the potential to develop an initial small scale operation at Mandal

Moly with high rates of return and low initial capital investment. This approach minimizes risks

whilst giving us the option to significantly expand production at a later date," said Origo Chief

Executive Chris Rynnin.

Work on a detailed mining feasibility study will begin shortly and discussions with the government

around conversion of the project's license to a mining license are underway.

Source: Origo Partners PLC

NEWERA COMPLETES GROUND MAGNETIC SURVEY AT ULAAN TOLGOI

Newera Resources Ltd. announced the completion of an over 700 line kilometer ground magnetic

survey covering the northern sector of the Ulaan Tolgoi license area in the South Gobi basin.

The survey lines ran north to south in the survey area and were at an east west line spacing of 200

meters. The survey commenced on 25 May and was completed on time and within budget.

Mongolian registered geophysical contracting company GeOron LLC has now completed the

modeling of the data collected and presented Newera with the final images and analysis of the most

coal prospective areas.

Source: Newera Resources Ltd.

KINCORA COPPER: EXCLUSIVITY AGREEMENT ON BRONZE FOX

Kincora Copper Ltd. has announced that it has entered into an agreement granting exclusive rights

to carry out due diligence with respect to a potential joint venture, earn-in, strategic alliance,

equity investment or other transaction in respect to Kincora's wholly owned Bronze Fox project.

The exclusivity agreement contemplates various work programs being undertaken by the third party

during a staged review period in order to advance toward a potential transaction, and maintain

certain exclusive rights to such a potential transaction and access to the properties or data room.

The exclusivity agreement does not impact or restrict Kincora's ability to undertake ongoing

exploration activities or other customary corporate initiatives, such as private placements. Neither

party is obligated to proceed with a potential transaction.

"Kincora is the last remaining listed copper junior in Mongolia without a strategic partner,” said Sam

Spring, president and chief executive officer of Kincora. He added, “The Company has attracted

interest from various existing large-scale copper producers and welcomes advancing discussions

with this particular group as we continue our ongoing drilling and other exploration activities at

Bronze Fox.”

Source: Kincora Copper Ltd.

84 LUMBER PREPS FOR 'BLITZ BUILD'

It takes 75 days for the building materials to reach the country, but Mark Reginelli and 84 Lumber

have been asked by the Mongolian prime minister and government to demonstrate how quickly the

U.S. style of home construction can be done and the quality of the methods.

"We call it a blitz build," Reginelli said.

84 Lumber's materials are being used to construct the first U.S.-framed subdivision in the country

and if things go well with blitz build, the potential for future business could be huge. Reginelli said

Mongolia is a big target for 84 Lumber and as it's been the fastest-growing economy in two of the

last three years. In Mongolia's ger district alone there are 700,000 people living in shanty towns that

can be replaced with small social housing, Reginelli said. The company started its international

department in 1998, but since the Chilean earthquake in 2010, 84 Lumber has been placing a

greater focus on growing international sales in recent years.

"Following the earthquake we sent 200 homes that were given away to people in need," Reginelli

said. "After we saw the impact and demand that was out there, we thought we should get more

involved and expand."

With its international business, Reginelli said 84 Lumber mostly ships complete house packages for

the construction of small homes in the 400- to 800-square-feet range. While there are challenges

with language barriers, time differences and differences in customs, Reginelli said at its core 84

Lumber is building its international business the way founder Joe Hardy and company President

Maggie Hardy Magerko built its business locally.

The 84 Lumber Company was founded in 1956 in the rural town of Eighty Four, PA, 20 miles south

of Pittsburgh, starting with a single building supplies store. Today, 84 Lumber operates more than

257 stores in 30 states, in addition to various housing component factories, and employs more than

4,200 people. They still maintain their corporate headquarters in Eighty Four, PA., where the

original store continues to operate.

Source: Biz Journals, NAMBC

CAA ELEVEN FINDS RIGHTS BUYERS IN MONGOLIA AND SOUTH KOREA

CAA Eleven, UEFA's arm's length rights agency for centralized European qualifying games for the

2016 European Championships and the 2018 FIFA World Cup, has signed deals in South Korea and

Mongolia.

In Mongolia broadcaster Sansar Cable has taken the package, while South Korean pay-TV

broadcaster SPOTV has signed a deal with CAA Eleven. Sansar Cable is the current broadcaster of

the English Premier League in Mongolia.

Source: SportsPro

MONGOLEMIMPEKS ENTERS PHARMACEUTICAL JOINT VENTURE WITH CHINESE FIRM

Mongolia's Mongolemimpeks and China`s Dong A Holdings Co., Ltd. have partnered to bring the local

pharmaceutical industry good manufacturing practice standards. The companies aim to build a

facility to provide quality and affordable medicine to people.

“We will complete the construction in 2015, and from 2016 we will provide our products to the

market. For the first stage, we will produce 100 million tablets,” said Mongolemimpeks Project

Manager A. Oyungerel.

Source: Unuudur

MONGOLIA TO PRIVATIZE MIAT, MSE

Mongolia is preparing to sell majority stakes in its state-owned miner airline and market exchanges,

said the State Property Committee chair.

Mongolia plans to privatize 66 percent of MIAT Mongolian Airlines, the Mongolian Stock Exchange,

and Agriculture Market Exchanged each, said D. Tsogbaatar, chairman of the State Property

Committee. Mongolia would privatize large companies through public offerings while auctioning

smaller assets.

“We look at example of other countries, where usually 50 to 60 companies are always owned by the

state, and there is a good blend of partnership between state-owned and private businesses

because the state supports companies of national importance during hardship and withdrawing state

funds when it is no longer needed.”

Source: Udriin Sonin

“MADE IN GERMANY” CONFERENCE HELD IN UB

The "Made in Germany" Conference and Exhibition for the 2014 German-Mongolian Corporate Days

event was held 17 and 18 June at the Blue Sky Tower in Ulaanbaatar.

Germany-based Horvath & Partners Management Consultants offered a three-hour professional class

for managers and specialists. The session covered the management of large-scale projects,

particularly for engineering, procurement and construction. Also at the event, representatives of

Mongolian businesses took part in a panel discussion for the topic “Corporate Governance in Family-

owned Businesses; Lessons Learnt from Germany's Mittelstand.”

German equipment and service providers from over 40 companies exhibited at the event, displaying

products such as crane motors, construction materials, and hotel service goods.

Source: Info Mongolia

MONGOLIAN INDUSTRY & BUSINESS ASSOCIATION LAUNCHED IN ISTANBUL

The Mongolian Industry & Business Association (MIBA) has been established in Istanbul to support

and strengthen bilateral ties in economy and trade.

MIBA, which currently has 70 members, visited the Embassy of Mongolia in Ankara on 11 June where

Mongolian Ambassador Badamdorj Batkhishig congratulated delegates for launching the group.

Source: Info Mongolia

10TH TRILATERAL BUSINESS FORUM FOR MONGOLIA, RUSSIA, CHINA HELD IN UB

The 10th Trilateral Business Forum for Mongolia, China, and Russia's commerce organizations was

held on 12 June in Ulaanbaatar.

About 100 delegates attended the forum, which is organized to support business between Mongolia,

China, and Russia and resolve issues for trade. Chambers of commerce from Mongolia's provinces

signed 17 memorandums of understanding with counterparts from Russia and China.

Source: Info Mongolia

DACHENG PARTNER IS MONGOLIA'S FIRST FOREIGN-ADMITTED LAWYER

Dacheng senior partner Lu HaDa has been granted the certificate to be a foreign-admitted lawyer

from the Ministry for Justice.

Lu becomes the first foreign lawyer with such a certificate since registration of foreign lawyers in

Mongolia was required. Lu is head and equity partner of Dacheng LLP, a Mongolia-based branch

office of Dacheng. The firm said that the acquisition of the certificate will have a significant

bearing on legal service market expansion in Mongolia and the growth of Dacheng‟s Global Legal

Services Network.

Source: The Lawyer

THE CARTEL MAKES ITS WAY ONTO MONGOLIA TV

The Cartel, a successful drama series from the Caracol TV Internacional catalogue, is scheduled to

debut on the Mongolian channel Edutainment TV next week.

The Cartel follows the life of a middle-class young man who gets mixed up in the dangerous world

of drug trafficking. The show, which has aired in more than 50 countries, stars Manolo Cardona,

Karen Martinez, Diego Cadavid and Robinson Diaz. It is set to premiere in Mongolia on Monday 16

June and will then broadcast on weekdays at 22:10.

Source: World Screen

MARKET CAP OF MSE FALLS

The Mongolian Stock Exchange's TOP-20 index fell by 368.1 points in May from April, while

capitalization fell by 5.2 percent, or MNT 82.7 billion. The MSE saw MNT 46.6 billion in securities

trade in May,

Although MSE has still yet to have officially announced a new chief executive following the

resignation of Kh. Altai last year, officials have stated that G. Togtokhbaatar has been elected to

the position. Togtokhbaatar has 15 years of experience at the Bank of Mongolia.

Source: UB Post

SPONSORS

Oxford Business Group

Mongolian Economy Magazine

Milestone GRP

ECONOMY

MONGOL BANK: FX AUCTION, SWAP AGREEMENTS, 1-WEEK BILLS, TREASURY BILLS, BONDS;

The Bank of Mongolia on 19 June reported that it sold USD 7.5 million and CNY 43 million to

commercial banks for closing rates of MNT 1,824 and MNT 293, respectively. The central bank also

reported that it had received an equivalent of USD 25 million from swap agreements with

commercial banks.

The central bank reported on 18 June the issue of one-week bills worth MNT 196.2 billion at a

weighted interest of 10.5 percent a year.

The central bank reported on 18 June MNT 53.5 billion in bids for the issue of 52-week treasury bills

with a face value of MNT 20 billion. Each unit was sold at a discounted price of MNT 1 million each

with a weighted average yield of 9.494 percent. Also on 18 June, the central bank reported MNT

33.5 billion in bids for three-year government bonds with a face value of MNT 10 billion. Each unit

was sold at a premium price of MNT 1 million each and with a weighted average yield of 11.535

percent.

Source: Bank of Mongolia

MONGOLIA FX RESERVES DECLINE TO „WORRYING‟ LEVEL, SAYS MORGAN STANLEY

Mongolia‟s foreign currency reserves may have fallen to an estimated USD 1.7 billion at the end of

April, according to a 16 June report by Morgan Stanley analysts Desmond Lee and Gaurav Singhal.

Mongolia‟s foreign currency reserves were at USD 2.195 billion at the end of February, according to

the nation‟s central bank. A “few more months” of foreign currency outflow will bring Mongolia

closer to the two-month import cover, the same point where Mongolia received International

Monetary Fund (IMF) assistance in 2009.

Morgan Stanley remains underweight on the Mongolian sovereign credit due to “low headroom” on

foreign currency reserves and lack of clarity on the Oyu Tolgoi phase two dispute.

Read the full report here.

Source: Bloomberg, Cover Mongolia

UB TO SEE HIKE IN WATER COSTS

Water authorities have increased the price Ulaanbaatar households will pay for clean water to MNT

0.48 a liter, beginning 1 July.

The Regulatory Council for Urban Water Provisions, Services and Sanitation ordered the raise in the

price to MNT 0.48 for clean water and MNT 0.24 for “sour” water. Mongolia will also charge for 24-

hour water provisions outside of Ulaanbaatar. Residents of Tuv Aimag and Ulaanbaatar's Nalaikh and

Baganuur Districts will pay MNT 2,500 a month. Another six centrally located provinces will pay MNT

1,800 a month.

Source: Zuunii Medee

PP3 ANNEX GOES ONLINE; PP5 WILL LAUNCH SOON

Prime Minister Norov Altankhuyag Monday attended an opening ceremony for the 50-megawatt

annex for Power Plant No. 3.

The annex is the largest upgrade for the energy sector in the last 25 years. Mongolia contracted

China‟s Human Industrial Equipment Installation for the work, which was paid USD 35 million, with

funds used from the 2012 Chinggis bond proceeds.

A 120-megawatt annex for Power Plant No. 4 is expected to go online by October, followed by the

300-megawatt Amgalan Power Station in November, said Energy Minister Sonompil. Construction for

Power Plant No. 5 will launch soon, he added, as soon as a deal is signed, which is expected this

month. Setting up the Ministry of Energy "gave a big impetus to raising large investments and to

start the great construction in the energy sphere, which had been unsuccessful for many years,”

Energy Minister M. Sonompil said.

Other projects to launch for power generation in Mongolia include the Umnugobi power plant and

the Eg River hydro power plant.

Source: Montsame

NAADAM HORSE-RACING STADIUM TO BE FINISHED BEFORE 11 JULY

Ulaanbaatar Mayor Erdene Bat-Uul last Sunday inspected the Khui Doloon Khudag for horse racing,

which is currently under construction.

Work for this year includes the paving of a 2.7-kilometer road and an 800-meter sidewalk as well as

construction of a parking lot able to hold 500 cars before the Naadam festival begins on 11 July.

Rail buses will travel the 2.3 kilometer's distance to the horse-racing stadium this year, in addition

to five buses.

The Naadam complex will be for winter sport events, in addition to the summer festivities.

News: Montsame

COAL MINING AND EXPORTS FALL

Coal exports fell sharply by 63 percent in May compared with the year before. Mongolia has mined

6.7 million tons of coal and shipped 5.3 million tons. In all of 2013, 33.3 million tons were

produced and 18.1 million tons were exported.

Source: Unuudur

MONGOLIA TO EXPORT EUR 3MN IN TEXTILES

A Polish-Turkish textiles firm has agreed to purchase EUR 3 million (USD 4.07 million) in garments of

Mongolia‟s Exclusive clothing brand, said representatives of the textile industry at a press

conference. Rubin is purchasing mainly jackets from Exclusive.

Source: UB Post

ALTANBULAG LEADS ZAMYN UUD IN INVESTMENTS INTO FREE TRADE ZONES

Poor relations have delayed growth at Mongolia's free-trade zones, said administrators of the areas.

Agreements between investors have fallen through multiple times, said D. Batsaikhan, head of

Zamyn Uud, during a report to the Standing Committee on Security and Foreign Policy led by Deputy

Economic Development Minister O. Chuluunbat. Investment never even reached the region until

2007, four years after it received its status as a free-trade zone, he added.

News regarding Altanbulag was more upbeat, however. “We've made agreements for investment

with companies since 2006. Now, 82 companies have made agreements for investment, of which

three companies started their operations and invested MNT 2.1 billion in the free trade zone.

Mongolia first passed legislation for free trade zones in 2002. It adopted additional legislation to

establish Altanbulag as a free-trade zone in 2001 and Zamyn Uud in 2003.

Source: Undesnii Shuudan

LATE NIGHT TRANSPORT SERVICE LAUNCHES AGAIN IN UB

Late night public transportation service launched on 14 June in Ulaanbaatar.

The late night trolley service will run between 20:00 and 2:00 am from the Khaniin materials center

to the Officers Palace. Buses will operate the routes from 7 Buudal to Mongolian State University of

Education (MSUE) and from Nisekh to the Mongolian State University of Education (MSUE). Tickets

for adults are MNT 1,000 and MNT 200 for children.

Late night public transportation first launched last year.

Source: News.mn

GANTS KHUDAG DETENTION FACILITY CLOSED

The sole pre-trial criminal detention facility serving Ulaanbaatar, Gants Khudag, has closed.

MP J. Batzandan called for the close of the facility. The Gants Khudag prison, which was established

in 1920, was known for being overcrowded, offering poor medical care, and having generally poor

living standards. Prominent intellectuals, such as poets and scholars, have been detained at the

detention facility.

The government plans to auction the land where the prison is located.

Source: News.mn

KOREA SUPPORTS MONGOLIAN FOREST-PLANTING PROJECTS

The Korea-Mongolia Greenbelt Forestation Project aims to plant some 3,000 hectares of trees to

combat drought and desertification in Mongolia.

“The project aims to plant some 3,000 hectares of trees by 2016 in Mongolia,” said Choi Young-tae,

a director of the Korea Forest Service‟s international cooperation division. “We have so far spent

KRW 7.4 billion (USD 7.3 million) in planting 1,498 hectares of trees including local trees named

saxaul in the Lun Som and Dalanzadgad areas,” he added.

The Korea Forest Service also runs plant nurseries in which saplings are grown until they reach a

usable size in order to carry out more efficient forestation projects in Mongolia. The nurseries

contain greenhouses, seed storehouses and compost depots.

The South Korean government is also working to provide its forestation know-how to Mongolian

officials. From 2009, they have run a training center to foster specialists in forestation technology.

A total of 60 Mongolian officials have received related training in both Korea and Mongolia.

As part of efforts to boost Mongolia‟s capacity, some of Korea‟s forestation projects have begun to

be transferred to the Mongolian government from this year to give them more direct control over

the projects. The Korea Forest Service will continue to support its Mongolian counterpart by helping

it monitor joint forestation projects and provide consulting services.

Improving the capabilities of local Mongolian residents is important too, said the Korean official.

The Korea Forest Service plans to build follow-up management and training systems for local

residents so that they can cultivate crops within the forestation areas. Both governments are also

doing joint research projects in related areas including the selection of tree species for plantation,

irrigation tests, soil improvement and the selection of drought-resistant grass.

“With our management skills and expertise, we aim to make this project a best practice in

combating desertification,” Choi said.

Source: Korea Herald

AIR POLLUTION COMMITTEE SENDS OUT WARNINGS TO 2,000 TO CLEAN UP THEIR ACTS

The National Committee for Air Pollution Reduction on 11 June sent out 2,000 notices to companies

and individuals warning that they could face punishment unless they reduce their pollution output.

Most of the offenders were using low-pressure heaters, which account for 20 percent of

Ulaanbaatar's pollution, said the group. The letters ordered that they improve their equipment so

that that meet standards before the next winter or face the punishment proscribed by Mongolia's

laws.

The air pollution team said it planned to issue warnings to those in violation of Mongolia's many laws

that prohibit polluting, but were not known to the general public.

Source: Zuunii Medee

UQ RESEARCH HELPS MONGOLIA TACKLE GENDER VIOLENCE

New research from The University of Queensland has helped find practical solutions to gender-based

violence issues stemming from Mongolia‟s mining boom.

The university's Centre for Social Responsibility in Mining Research project has helped prompt a USD

280,000 memorandum of understanding between Mongolia‟s National Committee on Gender Equality

and Erdenes Tavan Tolgoi LLC. Research manager Isabel Cane said her research had identified

connections between mining activities and gender-based violence in the South Gobi region of

Mongolia.

“Domestic violence, sexual assault and alcohol-fueled violence have increased, causing a rise in

personal traumas, family break-ups, health-related issues and broader community insecurity,” Cane

said. “This MOU is a positive start, but stronger legislative and social awareness will be required to

prevent the potential growth of gender-based violence in a nation undergoing a minerals boom.”

Cane said the MOU, developed after a roundtable discussion about the findings of her research,

provided recommendations to policy makers. She said her research in Mongolia could be applied in

other developing countries where mining was affecting gender relations. Cane‟s research, which

was funded by the International Mining for Development Centre, has been released in a Mapping

Gender Based Violence and mining infrastructure in Mongolian mining communities, a comparative

analysis report.

Source: University of Queensland

POLITICS

TUVDENDORJ APPOINTED AS MINISTER OF INDUSTRY AND AGRICULTURE

Parliament on 12 June confirmed the appointment of MP Sh.Tuvdendorj as Minister of Industry and

Agriculture with 85 percent of the vote.

Thirty-four out of 40 MPs voted in affirmation of Tuvdendorj's nomination following a vow by

President Tsakhia Elbegdorj that he would veto an appointment of him. Elbegdorj said he would not

allow for Tuvendorj's appointment because he is a member of Parliament and minister

appointments should henceforth follow the so-called “Double Deel” law to take effect in 2016. The

law prohibits members of Parliament from serving on the Cabinet Secretariat to deter possible

conflicts of interest.

Kh. Battulga resigned from the position as the minister in May, also because of his support for the

Double Deel bill. “It is inappropriate for me to hold this position as I supported the [Double Deel]

bill myself,” he said in his resignation letter to Parliament.

Source: News.mn

ECONOMIC STANDING COMMITTEE REJECTS DISMISSAL OF ECONOMIC MINISTER

The Economic Standing Committee on 17 June rejected the proposal to dismiss the economic

development minister.

Only one out of 14 parliamentarians in attendance voted in favor of N. Batbayar's dismissal.

Mongolian People's Party (MPP) parliamentarian S. Byambatsogt called for Batbayar's resignation due

to the degrading economy and his alleged breach of Mongolian law.

"The economic conditions are getting worse, and the number of wage-earners and salaried

employees is decreasing. Investment is frozen and dozens of organizations are closed down. Besides

that, the economic development minister violated the Law on Sustainable Budget,” said

Byambatsogt in a statement backed by 26 parliamentarians from the MPP.

The issue of Batbayar's dismissal will next come before Parliament.

Source: News.mn

MPP APPOINTS N. NOMTOIBAYAR DEPUTY CHIEF

The Mongolian People's Party has appointed parliamentarian N. Nomtoibayar as Deputy Chief.

Nomtoibayar replaces S. Byambatsogt and will lead the party alongside D. Oyunkhorol.

Source: Udriin Sonin

PUBLIC HOLIDAY FOR NAADAM EXTENSION PROPOSAL TO PARLIAMENT

The Cabinet Secretariat on 14 June pushed forward a Parliament legislation that would extend the

Naadam festival holiday to 5 days.

Parliament will receive a proposed amendment to Mongolia's public holidays to add two additional

days to Naadam. Also this year, Parliament extended the length of the public holiday for the

Tsagaan Sar holiday, Mongolia's celebration for the lunar new year, from one to three days.

Source: Montsame

LATVIAN PRESIDENT VISITS MONGOLIA

Latvia's president, Andris Berzins, paid an official visit to Mongolia upon the invitation of President

Tsakhia Elbegdorj.

Berzins' visit was the first ever visit by a Latvian head of state to Mongolia. Elbegdorj and Berzins

had a private meeting for their official talks. He also met with Prime Minister Norov Altankhuyag

and Deputy Speaker R. Gonchigdorj. Berzins discussed mutual relations and cooperation with the

Mongolian officials, focusing on bilateral cooperation in trade and investment. They also discussed

how Mongolia could export its goods through Latvia to reach the European market. Berzins also

noted that Latvia, as chair of the European Council in 2015, would support Mongolia's initiative to

launch an agreement for partnership and cooperation between Mongolia and the European Union.

Mongolia and Latvia signed a visa waiver agreement for diplomatic and official passport holders, in

addition to agreements such as those for roads and transport.

Source: Info Mongolia

MONGOLIA AND ARGENTINA TO BOOST COLLABORATION IN AGRICULTURE

Mongolia and Argentina signed a memorandum of cooperation on 16 June.

Deputy Minister of Industry and Agriculture of Mongolia Ts. Tuvaan and Javier Rodriguez, Argentina's

secretary for political and institutional coordination and agricultural emergency, signed the

agreement for collaboration in research in fields of mutual interest, increasing production and

productivity within agriculture, and improving standards. Mongolia hopes to introduce technology

for the fattening of cattle, improve animals' health, and developing vaccines with this cooperation

as well as through their support of joint ventures.

Source: UB Post

SOUTH KOREA TO SEND TROOPS TO KHAAN QUEST

South Korea will dispatch troops to an annual multinational peacekeeping exercise set to kick off in

Mongolia this week, the Marine Corps here said Wednesday.

Some 34 South Korean Marines as well as 8 service members of the Army, Navy and Air Force will

participate in the Khan Quest exercise in the landlocked country. The exercise is set for 20 June to

1 July. During the drill, the troops are scheduled to practice how to carry out operations in conflict

areas, provide humanitarian aid and perform their duty of supporting those facing calamities, the

Marine Corps said. The field training and command post exercises are to take place in realistic

settings, it noted.

Mongolia has held Khaan Quest every year since 2003, with the help of the U.S. Pacific Command.

This year, about 1,200 troops from 21 countries, including the United States, China, and Indonesia,

will join the drill, according to the Marine Corps.

"We will master combat techniques to carry out our duties in any part of the world via this joint

drill with the multinational forces," said Ham Young-du, a lieutenant colonel who leads the team.

South Korea sent working-level officers as observers to the exercises in Mongolia from 2006 to 2008

and became a full participant in 2009.

Source: Korea Herald

MONGOLIA, FRANCE TO COOPERATE IN DEFENSE

Mongolia has made its first agreement for cooperation in defense with France.

Defense Deputy Minister A. Battor met Kader Arif, state secretary for war veterans and memory at

the French Defense Ministry, while attending the Eurosatory 2014 exhibition for international

defense and security on 17 and 18 June. The agreement signed covered technical cooperation

between the two countries.

Source: Montsame

MONGOLIA AND VIETNAM STATISTICS OFFICES COOPERATE

The heads of Mongolia and Vietnam's statistics offices have signed a memorandum of understanding

to support each other's data collection.

Vietnamese Deputy Director General Van Lieu Nguyen paid an official visit to Mongolia's National

Statistical Office while visiting from 14 to 19 June. The Vietnamese delegates during the visit

familiarized themselves with Mongolia`s system for calculating and releasing statistics.

Source: News.mn

ERENHOT CANCELS ENTRANCE FEES FOR MONGOLIANS

Mongolian citizens may now enter Erenhot without having to pay entrance fees thanks to an

agreement made by Zamyn-Uud Soum and Erenhot administrators at recent meeting.

The entrance fee was CNY 5 for Mongolians traveling to Erenhot. The total annual sum collected

from fees paid by Mongolians was on average CNY 12 million (USD 1.93 million).

Source: UB Post

MONGOLIA TO PROVIDE VISA-FREE ENTRANCE TO 42 COUNTRIES

The Cabinet Secretariat on 13 June declared its intention to provide visa-free access to Mongolia for

the 42 countries with the highest economic growth rates and highest rankings on the human

development index by 2015.

The Cabinet intends to open its borders to countries such as Norway, Luxembourg, Switzerland, and

Chile to benefit tourism to Mongolia. Currently only U.S., Japanese, and German passport holders

are provided this privilege, although the same privilege is given to British diplomats.

Source: Montsame

MONGOLIA, TURKEY COMMEMORATE THE 45TH ANNIVERSARY OF DIPLOMATIC RELATIONS

Mongolia and Turkey commemorated the 45th anniversary of relations in Ulaanbaatar from 17 to 20

June.

Special events for Turkish foods were held 17 June at the Kempinsky Khaan Palace Hotel and 19

June at the Turkish Embassy, followed by an art exhibit, musical performance and fashion show at

the Turkish Embassy on 20 June. A poetry and essay competition was held among students from

Secondary School No. 5, which is named after the founder of the Turkish state, Mustafa Kemal

Ataturk. The Turkish rock group Mongollar (tr: Mongols) will perform at Chinggis Square, also on

June 20, along with Mongolian rock group Kharanga.

Source: Info Mongolia

UN TO PARTNER WITH MONGOLIA TO PROTECT GOBI BEAR

The U.N. resident coordinator and UNDP resident representative to Mongolia has vowed to support

Mongolia in its effort to protect the Gobi bear.

“I was upset because I thought that any activity to save the Mazaalai would be a failure, but now

my thoughts have changed,” said Sezin Sinanoglu.

The Gobi bear, or Mazaalai as it is known in Mongolia, has been found to be vulnerable to the

affects of desertification. A lack of rainfall effects Mazaalai's sources of food and water as well as

other species in the Gobi.

Source: News.mn

DEMONSTRATORS PROTEST ON CHINGGIS SQUARE AGAINST URANIUM MINING

Environmentalists held protests on 9 June on Chinggis Square for the development of a uranium

mine by French miner Areva SA.

Thirty protestors from the groups Bosoo Khokh Mongol, Greenpeace Mongol, Gal Undesten, and

three other NGOs displayed banners calling for a united front against mining and the nuclear

industry.

“Since the Areva Company started uranium exploration in Ulaanbadrakh and Zuunbayan Soums in

Dornogobi, the cases of livestock disease, mortality and birth of genetically damaged animals has

grown,” said D. Gantumur, a farmer from Dornogobi Aimag. “Recently the citizens of Ulaanbadrakh

Soum decided they would stop the exploration and excavation of uranium, but the government now

says the uranium business will be a solution for the economic recession.” Ten other companies have

special licenses for uranium in the area, he added.

Areva in April 2013 denied claims that its exploration ever contributed to the birth defects of

animals. Researchers later backed up the claim, reporting that they found that traces of selenium

in the area were responsible for the birth defects.

Source: Udriin Sonin

MONGOLIA TO RESTORE KHERLEN BARS

Mongolian officials have signed an agreement for the restoration of an ancient urban settlement in

Mongolia known as Kherlen Bars.

Altangerel Purev, state secretary at the Ministry of Culture, Sports and Tourism, and Yang

Qingdong, a political counselor at the Chinese Embassy, inked an agreement for the restoration and

repairs on 13 June. At the site are small-scale ruins and a three-meter-tall tower.

Kherlen Bars was once part of the ancient state of Kitan.

Source: News.mn

ANNOUNCEMENTS

STILL TIME TO REGISTER FOR MONGOLIA BUSINESS SUMMIT IN UB, JUNE 19-20

Registration is still open for the Mongolia Business Summit held 19 and 20 June in Ulaanbaatar.

Prime Minister Norov Altankhuyag is presiding over the two-day conference, where up-to-date and

sector-specific information on current and planned Public-Private-Partnership projects in mining,

infrastructure, processing industries, agriculture, wool and cashmere, and the food and building

materials sectors will be discussed. Speakers include cabinet ministers, members of Parliament as

well as Mongolian and foreign business leaders. Optional add-on tours are also offered.

View the agenda for the forum here; or for online registration click here.

___________________________________________

“MM TODAY” ON MNB-TV, FRIDAY, 19:00 TO 19:10

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 from 19:00 to 19:10 tonight. Tune in to watch this program that reports on stories from

today‟s BCM NewsWire.

BCM WORKING GROUP NEWS

The BCM Logistics Working Group met on Tuesday, 10 June, with 7 members attending.

Mattias Ahlin-Scania, Chairman, moderated the session.

New members: D Enkhbat CEO-Mongolian Express; Rentsendorj Yondon, Mongolian Opportunities

Fund; Buyanderler Tsogt-Ochir, Logistics Supervisor, Cummins Mongolia; Nobuo Okada, General

Manager, Mitsui Co.

BCM`s Logistics Working Group Chair, Mattias Ahlin is leaving the country. Tengis Garamgaibaatar,

Chief Executive Officer, Monroad, was elected as WG chairman. Congratulations to him for his new

role as BCM`s Logistics Working Group Chairman.

Speakers and topics were:

1. Follow up from last meeting‟s discussion

a. Main challenges for the Mongolian Logistic sector

2. Discussion about BCM Logistics Working group role and focus areas

(Mission Statement)

a. Transport modes; road, rail, air

b. Customs efficiency

c. Legal framework; Loads and dimension, safety, standards

d. Stakeholders: Ministries, customs, transport organizations, vehicle manufacturer association

e. Transport efficiency

3. Discussion about meeting intensity and organization

4. Other business

Next meeting was scheduled on 7 August 2014. If you have any interest joining the new and

growing Logistics Working Group, please contact Erdenetsetseg at erka@bcmongolia.org

___________________________________________

The BCM Capital Markets Working Group met on Thursday, 29 May, with 11 members attending.

Howard Lambert /ING Bank/ and Nick Cousyn /BDSec/, Co-chairmen, moderated the session.

Guest: Michael O`Malley-Executive Director at ISG MineElect.

Speakers and topics were:

Facilitating foreign direct investment (FDI) and Capital Markets update - by Byambaa Losolsuren,

Leader of FDI Capital Markets group of 100 Day Revitalization Council, and Partner of Mandal

Capital LLC.

If you have any recommendations on Capital Markets for the Revitalization Council, please contact:

erka@bcmongolia.org

___________________________________________

The BCM Tax Working Group met Thursday, May 22, with 12 members attending.

Onch D. - Co-chair, BCM‟s Tax WG and Deloitte Onch a moderated the session.

Attending were representatives from the following BCM member entities - Deloitte Onch, PwC,

Ernst & Young, KPMG Tax, OT, Terra Energy, Petro Matad, MahoneyLiotta, TMZ and BCM.

New members: Amarbayasgalan and Tuvshinbayar from Terra Energy.

Meeting agenda:

• Overview - B. Byambasaikhan, Secretariat, 100 Day Revitalization Program; Chairman, BCM

• Initial new tax policy thoughts from WG members.

On May 29 BCM‟s Tax Working Group sent a detailed study of the current value added tax (VAT)

deficiencies and recommendations for efficiencies to result in greater tax revenue to the 100 Days

Revitalization Council.

Please contact T.Erdenetsetseg, BCM Working Group Coordinator, erka@bcmongolia.org.

___________________________________________

The BCM „expanded‟ Legislative Working Group (LWG) met on Tuesday May 20, with 42 members

attending at Corporate Hotel meeting room.

This was the third expanded WG meeting on the draft Amendments to the Minerals Law. The 2 ½

hour session included BCM members from mining companies, embassies and the MNMA. Special

guests were 5 members of Parliament and others from the Mining Ministry, Geological Society and

Export Society.

LWG Co-chair, James Liotta, Mahoney Liotta, moderated the session.

The following 11 presentations were made:

-A healthy Private Sector Driven Industry (1997 and 2006 Minerals Law / Amendments / what to

look for. By Doug McGay – longtime resident in the Minerals and petroleum industry;

- Investor views and concerns about making investments in Mongolia and its mining sector. By

Randolph Koppa – Vice Chairman, BCM and President, TDB;

- A view from the Mining Majors by Sunjidmaa Jamba from Peabody Energy;

- A supply side view by Stephen Potter, Wagner Asia;

- Tax Issues impacting the Minerals Industry by D. Onchinsuren – Co-chair BCM Tax Working

Group and Deloitte Onch Audit;

- Use of MSE for State Privatizations by Nick Cousyn – Co-chair, BCM Capital Markets Working

Group and BDSec;

- Views from within the Industry by N. Algaa – Executive Director, MNMA;

- Transparency and Public Comment by David Wyche – Economic/Commercial Section Chief,

Embassy of the United States of America

- International Agreements that attract bi-lateral investment, and views on the State ownership

of assets by Maxim Berdichevsky – Counselor & Senior Trade Commissioner, Embassy of Canada

- Some specific thoughts on the Amendments by James Liotta – Co-chair, BCM LWG and

MahoneyLiotta Law Firm; Bayar Budragchaa - Co-chair, BCM LWG and ELC Law Firm.

As MP Garamgaibaatar, Chair of the Standing Committee on Economic Affairs and Head of the

Parliamentary Working Group on the Draft Amendments to the Minerals Law, commented at the

meeting's conclusion - "We should not really change general structure and core contents of the draft

Amendments."

Also MP Garamgaibaatar welcomed BCM sending any additional comments directly to his Working

Group.

„BCM IN THE UNIVERSITY CLASSROOM‟ NEWS

Business Council of Mongolia (BCM) has progressed with its „BCM in the University Classroom‟ series

since March 2012. Led by BCM‟s Education Working Group, the program provides lectures at

universities to help inspire students and give them direction for their future careers. The series has

grown to include an average of 10 lectures per academic year. Now 1,544 students and teachers

have participated to BCM in the University Classroom Project.

Thanks to all who have participated in BCM in the University classroom project. We are now

collecting specific lecture topics for the next year academic year to end 1 June 2015.

University of the Humanities joined our BCM in the University Classroom project in May. So BCM‟s

project has expanded to 4 of Mongolia‟s largest universities -- National University of Mongolia,

Institute of Finance and Economics, Mongolian National University and University of the Humanities

-- with over 40,000 students collectively.

If you like to share your experience on some specific topic, you can discuss with us for the next

school term. Please contact: erka@bcmongolia.org

BCM WEBSITES

PRESENTATIONS (in Mongolian):

The following statistics and reports posted on Presentations section in Mongolian:

http://bcmongolia.org/mn/илтгэлүүд

• Монгол банкны 2013 оны жилийн тайлан • Монгол улсын нийгэм эдийн засгийн байдал, 2014 оны 5 сарын байдлаар, Үндэсний

статистикийн хороо

• Монгол улсын нийгэм эдийн засгийн байдал, 2014 оны 4 сарын байдлаар, Үндэсний

статистикийн хороо

• Мандал Женерал Даатгал тайлан, 2014 оны 5 сар

• Сант марал сангаас гаргасан УЛС ТӨРИЙН БАРОМЕТР №13(47), 2014 ОН 3 САР

• Монгол улсын нийгэм эдийн засгийн байдал, 2014 оны 3 сарын байдлаар, Үндэсний

статистикийн хороо

• “Anti-Corruption legislation and State Policy” (Mongolian) by D. Munkhjargal, Prevention and

Public Awareness Department, Senior Commissioner, Independent Authority Against Corruption

(IAAC) Mongolia at the “ANTI-CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE

ON TRANSPARENCY” Training seminar, Mar 06, 2014

The presentation below was made at Mongolian National University as part of the “BCM in the

University Classroom series” on February 27, 2014:

• Ser-Od Inchinkhorloo, Vice Director, BCM, “Investment environment: Past, Present, Future”

(Mongolian)

The presentation below is from the February 24 BCM monthly meeting:

• О. Зоригт, Гүйцэтгэх захирал, Майн Инфо "Майн Инфо ХХК-ний товч танилцуулга", МБЗ-ийн 2

сарын 24-ний сарын хурал

Dr. Khashchuluun, Executive Director, National Council of Private Sector Support, “Taxation Impact

Research” to BCM Tax Working Group, February 19, 2014

• ТАТВАРЫН БАГЦ ХУУЛИЙН ӨӨРЧЛӨЛТ: ХУВИЙН ХЭВШИЛД, Ч. Хашчулуун, Хувийн хэвшлийг

дэмжих үндэсний зөвлөлийн гүйцэтгэх захирал 2014.02.19

20 Presentations from Coal Mongolia, 20-21 February, 2014:

• Уул уурхайн сайд Д. Ганхуяг, Төрөөс Эрдэс Баялгийн Салбарт Баримтлах Бодлого, Нүүрсний

Салбарыг Хөгжүүлэх Стратегийн Чиг Хандлага, Коал Монголиа 2014, 2 сарын 20-21.

• Сангийн сайд Ч.Улаан, МОНГОЛ УЛСЫН САНГИЙН ЯАМ, Улсын төсөвт нүүрсний салбарын

үзүүлэх нөлөө, татварын орчин шинэчлэл, Коал Монголиа 2014, 2 сарын 20-21.

• Монгол орны нүүрсний салбар дахь байгаль орчны асуудал, Байгаль орчин, ногоон хөгжлийн

яам, ХБОБНГ-ын дарга Д.Энхбат Коал Монголиа 2014, 2 сарын 20-21.

• НҮҮРСНИЙ АЖ ҮЙЛДВЭРЛЭЛИЙГ ХӨГЖҮҮЛЭХ ТЭЭВЭР ЛОЖИСТИКИЙН АСУУДЛУУД:

Л.ПҮРЭВБААТАР ТӨМӨР ЗАМЫН ИНЖЕНЕРҮҮДИЙН ХОЛБООНЫ ЕРӨНХИЙЛӨГЧ, “УУЛ УУРХАЙН

БҮТЭЭГДЭХҮҮНИЙ ТЭЭВЭРЛЭЛТ” Коал Монголиа 2014, 2 сарын 20-21.

• МОНГОЛ УЛСЫН НҮҮРСНИЙ САЛБАР ДАХЬ ХӨРӨНГӨ ОРУУЛАЛТ, ХУДАЛДААНЫ ТААТАЙ ОРЧИН

БҮРДҮҮЛЭХ НЬ,ЭДИЙН ЗАСГИЙН ХӨГЖЛИЙН ДЭД САЙД О.ЧУЛУУНБАТ Коал Монголиа 2014, 2

сарын 20-21.

• Уул уурхайн дэд сайд О. Эрдэнэбулган, Олон улсын нүүрсний зах зээл дэх Монгол улсын

өрсөлдөх чадварыг нэмэгдүүлэхэд төрийн оролцоо Коал Монголиа 2014, 2 сарын 20-21.

• Ж. Батцэнгэл, Монголын Уул Уурхайн Корпорацийн дарга, МОНГОЛЫН НҮҮРСНИЙ САЛБАРЫН

ӨНӨӨГИЙН НӨХЦӨЛ БАЙДАЛ, Тулгарч буй бэрхшээл ба шийдэх боломж Коал Монголиа 2014, 2

сарын 20-21.

• Аршад Саеид, Пийбоди Энержи компанийн Монгол ба Энэтхэг улсыг хариуцсан Ерөнхийлөгч,

Дэлхийн нүүрсний зах зээл, Монгол улсад үзүүлэх нөлөөлөл, Коал Монголиа 2014, 2 сарын 20-

21.

• МОЗА гүйцэтгэх захирал Ч. Хашчулуун, Занарын дэлхии ̆н хувьсгал ба Монголын эдии ̆н засагт

үр нөлөө, Коал Монголиа 2014, 2 сарын 20-21.

• Багануур Энержи Корпорэйшн ХХК, Нүүрс хийжүүлэх, шингэрүүлэх цогцолбор парк төслийн

товч танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.

• АДУУНЧУЛУУНЫ ЦАХИЛГААН СТАНЦ, БЕНЗИНИЙ ҮЙЛДВЭРИЙН ТӨСӨЛ, Ж.Золжаргал –

Төслийн удирдагч, Коал Монголиа 2014, 2 сарын 20-21.

• Ц.Ганцог, Жени Ойл Шэйл Монголиа ХХК Гүйцэтгэх захирал, ШАТДАГ ЗАНАРЫГ АШИГЛАХ

БОЛОМЖ, Коал Монголиа 2014, 2 сарын 20-21.

• Фэн Вэй эрчим хүчний зөвлөгөө өгөх компани, 2014 оны хятадын нүүрсний зах зээлийн

шинжилгээ болон үнийн таамаглал, Коал Монголиа 2014, 2 сарын 20-21.

• Я. Батсуурь, Эрдэнэс Таван Толгой ХК, Танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.

• Хишиг Арвин Индустриал ХХК, ҮНДЭСНИЙ КОМПАНИУДЫН ТӨЛӨВШИЛ, ӨРСӨЛДӨХ ЧАДВАР,

Коал Монголиа 2014, 2 сарын 20-21.

• Виртген Групп, МОНГОЛЫН НҮҮРСНИЙ ЗАХ ЗЭЭЛ ДЭХ WIRTGEN БРЭНДИЙН SURFACE MINER

БУЮУ АНГИЛАН ОЛБОРЛОГЧИЙН ТЕХНОЛОГИ БОЛОН АШИГЛАХ БОЛОМЖУУД, Коал Монголиа

2014, 2 сарын 20-21.

• “Тавантолгой” ХК-ийн Гүйцэтгэх захирал Р.Сэддорж, Дэвшилтэт технологи ба инновацийг

нутагшуулах нь, Коал Монголиа 2014, 2 сарын 20-21.

• “УУЛ УУРХАЙН ДЭД БҮТЦИЙН ХӨРӨНГӨ ОРУУЛАЛТЫГ ДЭМЖИХ ТӨСӨЛ” Төслийн Зохицуулагч

Б.Энхбаатар,Коал Монголиа 2014, 2 сарын 20-21.

• ДЭД САЙД Д.ДОРЖПҮРЭВ, Эрчим Хүчний Яам, 2014 ОНД ЭРЧИМ ХҮЧНИЙ САЛБАРЫН

ХИЙГДЭХЭЭР ТӨЛӨВЛӨСӨН АЖЛУУД БОЛОН ТӨРӨӨС БАРИМТАЛЖ БУЙ БОДЛОГО, Коал

Монголиа 2014, 2 сарын 20-21.

• Ай Эм Си Монтан Компани, Нүүрс баяжуулах талаар, Коал Монголиа 2014, 2 сарын 20-21.

The below presentation is from the January 27 BCM monthly meeting:

• ОЙ ХАМГААЛАЛД СУУРИЛСАН БИЗНЕС, Цэсэдийн БАНЗРАГЧ /Ph.D/, БОНЯ- ны ОЙ

ХАМГААЛАЛ, ОЙЖУУЛАЛТЫГ ЗОХИЦУУЛАХ ХЭЛТЭСИЙН ДАРГА, МБЗ-ийн 1 сарын 27-ны

гишүүдийн сарын хурал дээр

___________________________________________

ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „INTERVIEWS„, MONGOLIAN

BUSINESS NEWS‟, „PHOTO GALLERY‟

3 presentations from BCM monthly meeting on May 26, 2014:

• B. Lakshmi, Director, Mongolia Economic Forum – “Why Mongolia Business Summit?” at the BCM

Monthly meeting May 26, 2014

• Nick Cousyn, Co-chair, BCM Capital Markets Working Group – “Use of MSE for State Privatizations”

at the BCM Monthly meeting May 26, 2014

• Peter Benson, VicRoads Team Leader, ADB Capacity Building Project – “Mongolia Roads –

Achievements and Challenges”at the BCM Monthly meeting May 26, 2014

• China Metals & Mining Thermal Coal, Coking Coal, Copper, Gold, Steel by Macquarie Capital

Securities Limited

4 presentations from 3rd Mongolia Trade and Commodity Finance Conference, May 13, Blue Sky-UB:

• Mongolia – New Investment Laws, Stephen Tricks, Consultant, Clyde & Co;

• Mongolia Investment Law: select issues, B. Enkhbat, Partner, MDS & KhanLex Law Firm;

• Mongolia‟s promise of mineral wealth, Arnout van Heukelem, Head of Metals & Mining Asia ING;

• Utilising international partnerships to extend access to trade finance, Marco Nindl, Trade Finance

Banker, EBRD.

16 Presentations at 2014 Mongolia Investment Summit London, April 30-May 1:

• Assessing developments in current economic policy and how the government will manage and

improve existing regulations, Ochirbat Chuluunbat, Vice Minister for Economic Development,

Ministry of Economic Development, Mongolia

• How should investors interpret the shift in government policy and the introduction of the new

investment law?, Andrew Danenza, Founder and Managing Partner, Melbury Capital, UK

• Examining legal developments and what this means for the stimulation of FDI, Chris Melville,

Partner, Hogan Lovells, Mongolia

• Examining Mongolian mining policy and how it could benefit the production and export of mineral

resources, Rentsendoo Jigjid, State Secretary, Ministry of Mining, Mongolia

• Analyzing the Mongolian coal market: how could mining companies best respond to the operating

environment and fluctuations in demand?, Battsengel Gotov, Executive Director and CEO, Mongolian

Mining Corporation, Mongolia

• Examining how Mongolian banks and financial institutions are dealing with the challenges and

opportunities of a fast growing economy, Norihiko Kato, CEO, Khan Bank, Mongolia

• Spotlight presentations: a chance to showcase your services and projects to a wide investor

audience, Leading bank of Mongolia: Golomt Bank - Munkhbat Davaatseren CEO, Golomt Securities

LLC, Mongolia

• To what extent has Mongolia retained its previously high levels of investment appeal? Alisher Ali

Chairman, Eurasia Capital, Mongolia

• How can Mongolia attract private investment in power development? Philip Lam, Senior Banker,

Power and Energy Utilities, EBRD, UK

• Examining the potential for successful renewable energy projects in Mongolia and the benefits

cleaner energy will bring for foreign investors, Bolor J. Artan, Deputy CEO, Newcom Group,

Mongolia

• Spotlight presentations: a chance to showcase your services and projects to a wide investor

audience, Michael Jonas Director, Genie Mongolia and Executive Vice President, Genie Oil and Gas,

Mongolia

• Assessing the Mongolian Stocks Exchange‟s cooperation with the London Stock Exchange and how

this can benefit investors, Jon Edwards Deputy Head of Primary Markets- Emerging Markets, London

Stock Exchange, UK

• Spotlight presentations: a chance to showcase your services and projects to a wide investor

audience, Boldbaatar Lamjav, Board Member, Nuudelchin, Mongolia

• Mining infrastructure case study: examining the development of infrastructure to support Erdenes

Tavan Tolgoi and how a continuation will bring, Badarch Enkhbat, CFO, Erdenes Tavan Tolgoi,

Mongolia

• Developing strategic mineral assets and infrastructure in Mongolia: Examining the timescales and

how obstacles can be overcome, Sainbuyan Odon CEO, Erdenes MGL LLC, Mongolia

• How could you ensure an effective IPO and the raising of the necessary capital for your business?,

Ayuna Nechaeva, Business Development Manager – Russia, CIS and Mongolia, London Stock

Exchange, UK.

_________________________________________________________________________-

•“BCM‟s Green Office Initiative: Starting from waste management and recycling”, A. Bayarmaa,

Head of BCM Environmental Working Group/Senior Carbon Finance Specialist, Clean Energy LLC, at

the BCM monthly meeting April 28, 2014

•“Socio-Political Situation in Spring 2014”, L. Sumati, Director, Sant Maral Foundation, at the BCM

monthly meeting April 28, 2014

• “Public-Private Partnership in Mongolia: Now and Future Prospects”, E. Enerelt, Investment

Officer, ADB and Ts. Batbayar, Director of Concession Division, Ministry of Economic Development

at BCM monthly meeting, March 24, 2014;

• “Areva in Mongolia: 15 years of presence – New perspectives in uranium mining”, Thierry Plaisant,

General Director, Areva Mongol at BCM monthly meeting, March 24, 2014;

• “Impact of Corruption in Mongolia” by L. Sumati, Director of Sant Maral Foundation at the “ANTI-

CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY” Training

seminar, Mar 06, 2014;

• “Anglo American Business Integrity policy and its application within the Business Globally” , Dr.

Graeme Hancock, President and Chief Representative Mongolia of Anglo American at the “ANTI-

CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY” Training

seminar, Mar 06, 2014;

Mongolia reports: http://bcmongolia.org/en/mongolia-reports

• Social and economic situation of Mongolia as of May 2014 by National Statistical Office • Real Estate Report 2014 by Mongolia Properties

• ASIA Reaching for the Top by International Monetary Fund, June 2014

• ASIA Achieving Its Potential by International Monetary Fund, June 2014

• Social and economic situation of Mongolia, as of April 2014, by National Statistical Office

• Mongolia: Economy outlook 2014, by Asian Development Bank;

• Selected Macroeconomic Indicators as of Jan 2014, by International Monetary Fund;

• Monthly statistical bulletin, March, 2014 , by Mongol Bank;

• Social and economic situation of Mongolia as of March 2014 by National Statistical Office of

Mongolia (available in Mongolian language - Монгол улсын нийгэм эдийн засгийн байдал 2014

оны 3 сарын байдлаар, Үндэсний статистикийн хороо)

• Polit Barometer, March 2014, by Sant Maral Foundation.

Interview Section: http://bcmongolia.org/en/interviews

• Talking to United World, the Executive Director of the Mongolian Drilling Association (MDA)

Professor J. Tseveenjav. Source: http://www.worldfolio.co.uk/

• Jim Dwyer, Executive Director, BCM – “Business need more business”;

• Damshnamjil Tsogtbaatar, Chairman of the SPC: “Privatizing Mongolia”;

• Jan Hansen, Economist, ADB: “The depreciation should help to increase the competitiveness and

to develop the non-mining industrial sector”;

• Jim Dwyer, Executive Director, BCM: “Minerals Policy”;

• D. Bayasgalan, Director of Golomt Bank: “Golomt has no problem”;

• From the Oxford Business Group, Mongolia Reports 2013 book;

• B. Byambasaikhan, Chairman, BCM: “Talk is cheap”;

• President Ts. Elbegdorj: “Diversifying for growth”;

BCM's English website includes the “Mongolia Business News” section. BCM continuously posts news

stories and analysis of relevance to Mongolia at „Mongolian Business News” before they are all put

together each week for Friday's weekly NewsWire.

The “Photo Gallery” contains photos from the 6th Anniversary BCM Renewal dinner on November

11, 2013.

BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-

en/album?albumid=200

The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home

page for a consolidated account of the week‟s events.

___________________________________________

SOCIAL 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 https://www.facebook.com/TheBusinessCouncilOfMongolia to read the

latest announcements and comment on events carried in the 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 5,817 fans on our Facebook fans page, 608 connections on LinkedIn

network, and 1,109 followers on Twitter.

Of course for news information, interviews, event photos, VIDEOS and announcements regarding our

organization, visit the official BCM website at http://bcmongolia.org/en/

ECONOMIC INDICATORS

INFLATION

Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]

Year 2007 *15.1% [source: NSOM]

Year 2008 *22.1% [source: NSOM]

Year 2009 *4.2% [source: NSOM]

Year 2010 *13.0% [source: NSOM]

Year 2011 *10.2% [source: NSOM]

Year 2012 *14.0% [source: NSOM]

Year 2013 *12.5% [source: NSOM]

May 31, 2014 *13.1% [source: NSOM]

*Year-over-year (y-o-y), nationwide

Note: 13.9% y-o-y, Ulaanbaatar city, May 31, 2014

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]

CURRENCY RATES – 19 JUNE 2014

Currency Name Currency Rate

US Dollar USD 1,824.94

Euro EUR 2,484.66

Japanese yen JPY 17.93

British pound GBP 3,103.49

Hong Kong dollar HKD 235.45

Chinese Yuan CNY 292.73

Russian Ruble RUB 53.24

South Korean won KRW 1.79

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.