BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 352 – November 21, 2014

NEWS HIGHLIGHTS:

Business

Authorities open new investigation into SouthGobi Sands;

SOE losses narrow;

Mogul Power partners with China SOE for Gobi power plant;

Livestock trade trials held in Bayankhongor;

Two companies approved for Mongolian meat export to Russia;

Suu opens dairy farm in Selenge;

Mongol Tashuur Contruction” company opened a white putty factory;

Mongolia Business Database launches;

Luxury knitwear brand crowdfunds Mongolian Yak wool project;

Mongolia Investment Summit Hong Kong kicks off;

Minter Ellison partner honored for resource practice;

Company to install $14.2mn card admittance system for public transport;

Anglo American partners with local groups to protect snow leopard;

France wants former Peugeot chief Varin as Areva chairman.

Economy

Mongol Bank: FX currency auctions, swaps, 1-week bills, treasury bills;

Mongol Bank targets 7% inflation for 2015;

Government cuts spending on agencies, splurges on social welfare;

Fitch posts negative outlook for Malaysia, Japan, Mongolia;

Education official hope to expose phony credentials with digital records;

World Bank introduces plans for Sustainable Livelihoods at rural communities;

UB Apartment prices on decline;

UB rolls out online app for heat and energy;

Aviation industry must spread its wings;

Mongolia's national bird under threat by urbanization;

Coal rallies on Glencore mine closures;

It's official: Japan falls into recession;

Discriminatory tax – EDITORIAL.

Politics

Mongolian budget passes but government still lacks premier;

Saikhanbileg granted security detail;

PM candidate Saikhanbileg promises a way out of economic turmoil;

Enkhbold ready for a fresh start;

Amarjargal says he'll vote for Saikhanbileg in PM vote;

MPP Management Board rejects Saikhanbileg for premier;

Finance ministers orders tax bosses to return bonuses;

Mongolia on patrol for red jasper ninjas;

Campaign Calls for firearm registration;

Russia, Mongolia switch to simplified visa regime;

Prisoners swapped in exchange;

Ulaanbaatar and Moscow ink cooperation agreement;

Welfare officials arrested on graft charges;

GIA suspects unknown MP may be behind SMS hacking;

4 out of 6 UB deputy mayors face dismissal;

UNESCO inscribes Mongolian religious text in Memory of the World.

Others

Announcements;

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

ECONOMIC INDICATORS

Weekly Market Indicators from MIBG;

Inflation;

Central bank Policy Rate;

Currency Rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank

International SOS

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Invest Mongolia Agency

BUSINESS

AUTHORITIES OPEN NEW INVESTIGATION INTO SOUTHGOBI SANDS

Another investigation has been opened into SouthGobi Sands LLC months after a court judge

throughout the Independent Authority Against Corruption's case against the company for tax

evasion, citing weak evidence. Authorities of the General Agency for Specialized Inspection are

looking at 35 licenses obtained by the company in 2007.

Source: Montsame

SOE LOSSES NARROW

Mongolia's state owned companies have narrowed their losses by 29.8 percent this year compared

with the year with more efficient operations, according to a lead official for state-owned property.

State-owned business saw a total loss of MNT 40 billion this year, compared with 57 billion last year

and MNT 67 billion in 2012, State Property Committee Chairman D. Tsogtbaatar. Losses have

narrowed because of improved planning for companies by the State Property Committee, he said, in

addition to stricter regulations.

State-owned companies will grant MNT 9.7 billion in dividends to the government next year, with

another MNT 25 billion to come from the privatization of such companies. The government has so

far earned MNT 12 billion from the public auctions of state assets. Mongolia currently has 88 state-

owned companies, with 22 up for partial or full privatization.

Source: Undesnii Shuudan

MOGUL POWER PARTNERS WITH CHINA SOE FOR GOBI POWER PLANT

A Mongolian energy company backed by an affiliate of New York-based Firebird Management LLC

has signed a binding Memorandum of Understanding with a Chinese state-owned company for the

development and financing of a coal-fired power plant.

China's SEPCOIII Electric Power Construction Corporation will assist Mongolia's Mogul Power for the

600 megawatt Tevshiin Gobi mine mouth power project, requiring an estimated USD 1 billion. Mogul

Power will retain ownership of the power plant, which is set for construction at Santsagaan Soum,

Dundgobi province. The power plant feasibility study was completed by an American energy

engineering firm, Burns and Roe Enterprises Inc., and approved by the Mongolian Ministry of Energy

in 2013. The project has received a permit to construct from the Mongolian Energy Regulatory

Commission, and approval of its Environmental Impact Assessment from the Ministry of

Environment.

Source: Mogul Power LLC

LIVESTOCK TRADE TRIALS HELD IN BAYANKHONGOR

The Mongolian Stock Exchange ran the first trial of its Agricultural Exchange Mongolia in

Bayankhongor Aimag on November 14.

The market saw each sheep sell for MNT 1,850 per kilogram, or about MNT 83,250 per head. The

local company Khongoriin Tavan Erdeniin Khishig facilitated trade for the farmers and herders. The

exchange is taking orders from brokerages at 16 provinces this year. Local herders and farmers that

are members of cooperatives may make their trades online.

Source: Montsame

TWO COMPANIES APPROVED FOR MONGOLIAN MEAT EXPORT TO RUSSIA

Two more Mongolian meat producers are set to begin export to Russia.

The meat producers Erdmiit and Prekom have both received approval for export to Russia out of the

10 companies they observed by Russian inspectors. Specialists from Russia's veterinary control

agency visited 12 meat processing factories in Mongolia.

Russia hopes to replace meat imports from Latin America. Russia agreed to take in 10,000 tons of

Mongolian meat during the visit of Russian President Vladimir Putin's September visit, while

Mongolian meat producers hope to export as much as 110,000 tons.

Source: News.mn

SUU OPENS DAIRY FARM IN SELENGE

Suu LLC has imported 300 Goldstein breeding cows from the Czech Republic and Slovakia for a

modern dairy farm to open at Mandal Soum, Selenge Aimag. Each cow can produce between 25 and

30 liters of milk a day and 7,500 to 14,000 liters per year. The farm is the first of its kind in two

decades and is scheduled to open in December 2014.

Source: Unuudur

MONGOL TASHUUR CONSTRUCTION” COMPANY OPENED A WHITE PUTTY FACTORY

Mongol Tashuur Construction has commissioned a new white putty factory for construction use on

15 November.

The factory can manufacture 80 tons of putty a day. Able to produce up to 30 percent of market

demand, Mongol Tashuur's product beats the cost of import alternatives.

Mongol Tashuur received MNT 250 million from the Development Bank of Mongolia to build the

factory as part of the government initiative to provide eased lending to companies with the aim of

stimulating industry. The company provided 30 percent of construction costs itself.

Mongolia currently imports MNT 10 billion worth of putty each year, said the company.

Source: Unuudur

MONGOLIA BUSINESS DATABASE LAUNCHES

Mongolia's first business-to-business (B2B) web service is garnering global attention.

The Mongolia Business Database celebrated the one-month anniversary of the launch of its website

B2BMongolia.com on 21 October. As of 19 November, the website had received 9,478 page views

from 34 countries. The service also has a Facebook page where it regularly posts breaking business

and economic news from local and international news sources.

“Mongolia Business Database aims to serve as a bridge for the products and services between

Mongolia and the rest of the world,” said the database's founder and chief executive officer,

Ichinkhorloo Ser-Od. Parter organizations supporting the Ulaanbaatar-based B2B service include the

Business Council of Mongolia, Mongolian National Chamber of Commerce and Industry, UKTI, and

Bloomberg TV Mongolia.

Source: B2BMongolia.com

LUXURY KNITWEAR BRAND CROWDFUNDS MONGOLIAN YAK WOOL PROJECT

Fair trade luxury knitwear brand Tengri has launched a Crowdfunder campaign to raise funds for its

ethical fashion projects in Britain and Mongolia. Hosted by Britain's biggest rewards-based

crowdfunding platform, the campaign aims to connect communities and to raise the company’s

profile.

London based Tengri works collectively with yak herders in Mongolia as a fair-share business—

sourcing and purchasing 100 percent pure yak wool, which it says is as soft as cashmere and warmer

than merino wool. The luxurious yak wool is then used to create bold knitwear pieces designed by

Royal College of Art graduate and Knitting Industry blogger Carlo Volpi, and crafted by local hand-

knitters and manufacturers in the town of Hawick in the Scottish Borders, which is known for its

high quality knitwear manufacturing heritage. It has been shortlisted to showcase its debut Warrior

collection for the London and Paris Fashion Week 2015 Fashion Scout panel.

“I’m thrilled that Tengri has been shortlisted by Fashion Scout to showcase our debut collection at

the 2015 London and Paris Fashion Week. It’s been an amazing journey for Tengri,” said Nancy

Johnston, Tengri’s founder. “From working directly with herders in Mongolia to source the wool,

creating a fashion brand, designing and producing the collection in the U.K.—it’s an adventure.”

The idea behind Tengri was conceived by Nancy Johnston, a social entrepreneur, when she was

traveling with friends and staying with herder families in Mongolia. Nancy became fascinated by the

delicate and interwoven relationship between people, animals and the land, developing a deeper

understanding and respect for the bond between the herder families' livelihoods, their yaks, and

the Mongolian landscape.

Source: Knitting Industry

MONGOLIA INVESTMENT SUMMIT HONG KONG KICKS OFF

The annual Mongolia Investment Summit kicked off in Hong Kong on 17 November with optimism for

Mongolia's Oyu Tolgoi copper-gold mine and the economy.

The conference opened to 150 delegates with talks given by two government keynote speakers,

Deputy Minister of Economic Development Ochirbat Chuluunbat and Bank of Mongolia Governor

Naidansuren Zoljargal, predicting that an agreement for Oyu Tolgoi would be complete by the

year's end.

“That's consistent with what the new PM might be committed to accomplish," said Business Council

of Mongolia (BCM) Executive Director Jim Dwyer in response. “An agreement on Oyu Tolgoi's

second-phase financing could be imminent by Q1 2015, which would be a wonderful signal to the

global community that the stage was being set for renewed double digit growth,” he added.

However, one issue that Mongolia can't control is Chinese demand for its key commodities, such as

coal and copper. During a panel on how Mongolian miners could stay competitive, David Paull,

managing director of Aspire Mining, said the effort would have come be nationwide. Ochir

Lkhagvasuren, director of financing and investment at Erdenes Tavan Tolgoi LLC, said Mongolia

would have to find ways to cope with the "soft infrastructure costs in China."

"The rates of growth may be slowing in China, but China will continue to be resource constrained

for another decade... an opportunity for Mongolia," said John Johnson, chief executive officer of of

CRU China.

Source: News.mn

MINTER ELLISON PARTNER HONORED FOR RESOURCE PRACTICE

Minter Ellison's Mongolia-based managing partner in Ulaanbaatar Elisabeth Ellis was named the

“Best Energy and Resources Lawyer” at the Asian Women in Business Awards on 13 November.

The Euromoney award celebrates the achievements of women in the legal sector and honors

females lawyers who have become influential in their districts. The criteria for the award may

include candidate's achievements in their professional field, firm and economic region, as well as

their roles in decision-making.

"I'm honored to have been named Asia's pre-eminent Energy and Resources Lawyer, particularly as

the award is based on client and peer feedback,” said Ellis. “The Euromoney Women in Business

Law Awards are wonderful encouragement for all women in the legal profession to achieve

excellence."

The award acknowledges strong professional reputation and an outstanding track record of work

throughout the region. For about two decades Ellis has advised on mining projects in Australia,

Indonesia and now Mongolia. She has also brought her expertise to power and water projects

throughout Asia, and significant liquefied natural gas (LNG) and gas projects in China and Australia.

Source: BCM

COMPANY TO INSTALL $14.2MN CARD ADMITTANCE SYSTEM FOR PUBLIC TRANSPORT

Public transport bus companies will roll out a new cashless payment system that lets commuters

swipe cards for entrance beginning April in 2015.

Ulaanbaatar has contracted out installation of the system to Data Card Consortium LLC, which the

Ulaanbaatar City Transport Authority has stated will cost USD 14.2 million. Companies hope to

employ the ticket collectors as bus monitors to ensure that the ticketing system is used correctly.

Citizens are advised to buy their cards before using the public transport. The design and cost for

the public transport cards are still under discussion, but discounts for students, seniors and the

disabled will still be in effect.

Source: News.mn

ANGLO AMERICAN PARTNERS WITH LOCAL GROUPS TO PROTECT SNOW LEOPARD

Anglo American PLC has partnered with Mongolia's environment ministry and local environmental

groups for the preservation of Mongolia's snow leopards.

The conservation plan will run until 2021, said environmentalist at a joint statement made by the

Foundation for Protection and other groups. The head of the Foundation for Protection of snow

leopards B. Monkhtsog named a number of initiatives taken by Mongolia's Ministry of Environment

and Green Development and partners organizations to protect the species. One step being taken is

environmentalists are placing tracking collars on snow leopards to monitor populations size and the

conditions they face, such as how deep snow is piling up in their habitats.

“So far, 25 leopards are carrying monitoring collars. The most recent carrier of such collars is a

three-year-old leopard which was caught at Tsagaan Shuvuut, Uvs Aimag and was returned to the

wild," Mr Monkhtsog said.

Mongolia's snow leopard populations is the second largest in the world, behind China, at about

1,000, but it's become threatened by human activities. Life for the snow leopard grows more

difficult as the numbers of bighorn and wild goats—their main prey—dwindles, forcing them to hunt

livestock and for herders to retaliate.

The global snow leopard is estimated at between 3,900 and 6,400 throughout Afghanistan,

Mongolia, China, Russia and India.

Source: Montsame

FRANCE WANTS FORMER PEUGEOT CHIEF VARIN AS AREVA CHAIRMAN

The French government wants Philippe Varin, former head of PSA Peugeot Citroen, to take over as

chairman of the board at state-owned nuclear group Areva, a source at the economics ministry

said.

Varin has already been named to become a board member at utility EDF. The source said on Friday

that his appointment to Areva would ensure more coherence between the strategies of the two

state-controlled firms. On Friday, shareholders of EDF, the world's largest operator of nuclear

plants, will vote on its new board, including Varin.

"The state wants Philippe Varin to enter the board of Areva with a view to become its chairman," a

source close to Economy Minister Emmanuel Macron said. He would succeed Pierre Blayau as head

of the board.

The source said a new Areva executive board would replace the existing supervisory board. Areva's

supervisory board will meet by the end of next week to propose a new list of board members to

Areva shareholders, he said.

Last month, Areva said Chief Operating Officer Philippe Knoche would serve as chairman and chief

executive until its next general assembly, after the firm's current head Luc Oursel had decided to

step aside for health reasons. Oursel has run the company since 2011, but pressure has mounted on

him this year as the group struggles to sell new reactors and suffers under heavy debts. The

planned change in governance followed a scathingly critical report by the top public auditor of

Areva's management under Oursel's predecessor Anne Lauvergeon, who has denied all wrongdoing.

Source: Reuters

SPONSORS

Mongolian Business Database

Oxford Business Group

Mongolian Economy Magazine

ECONOMY

MONGOL BANK: FX CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, TREASURY BILLS

The Bank of Mongolia on 20 November reported the sale of USD 6.3 million CNY 47.5 million in

currency auctions for closing rates of MNT 1,883.51 and MNT 307.60, respectively. Also that day,

the central bank accepted USD 70 million from commercial bank ask offers and USD 1.5 million in

bid offers via a U.S. dollar swap agreement.

The Bank of Mongolia on 19 November announced the issue of one-week bills worth MNT 128 billion

at a weighted interest of 12 percent a year.

On 19 November, the Bank of Mongolia reported MNT 15 billion in bids for 28-week treasury bills

with a face value of MNT 15 billion. The treasury bills were sold at a discounted price with a

weighted average yield of 16.3 percent. Also that day, the central bank reported MNT 53 billion in

bids for five-year treasury bills with a face value of MNT 50 billion, sold to banks at a premium

price and weighted average yield of 16.8 percent.

Source: Bank of Mongolia

MONGOL BANK TARGETS 7% INFLATION FOR 2015

Mongolia is aiming for 7 percent inflation for 2015, according to Bank of Mongolia President

Naidansuren Zoljargal.

The central bank hopes to continue the downward trend of this year, which saw peak inflation of 15

percent fall to today's 12.1 percent. “We estimated the 7 percent based on the connection between

the increase in people’s real income, or production price, and a potential inflation decrease,” said

Zoljargal.

The depreciation of the tugrug against the dollar was responsible for more than 40 percent of

inflationary pressures, he added. “The currency exchange rate starts influencing inflation after six

months at most,” he said, but he sees that as playing less of a role next year.

“The import production price rate is relatively high at present, but if the currency exchange rate

stays steady, it will not rise. Seeing the real situation, inflation is likely to be at 9 percent, and,

along with it, correct and effective policy will lead to 7 percent inflation.”

Zoljargal said the central bank provided input in this year's budget, and, if heeded, it should help

bring stability to the economy. That includes the close of the Price Stabilization Program, which

saw the government lend to food producers to help control costs. “The price stabilizing program

launched in 2012 was intended to be implemented for a short period. We planned to transfer it to a

free market economy system in 2015.”

Source: Undesnii Shuudan

GOVERNMENT CUTS SPENDING ON AGENCIES, SPLURGES ON SOCIAL WELFARE

Mongolia is set to introduce sweeping budget cuts and redundancies with the 2015 budget that

passed 14 November.

The 2015 budget has cut MNT 118 billion in spending from previous years, according to the state

secretary of finance. This year's budget cuts spending on travel and has banned the purchase of

furniture for any existing offices. Government agencies are receiving 50 percent less funding from

last year, with exception for the offices of the president, prime minister, parliament, and Ministry

of Foreign Affairs. It will also see 345 cuts of vice and deputy directors, advisers and contract

workers for the state.

Additional spending is being made in social welfare still. This year's budget will spend an additional

MNT 380 billion from last year on salaries, around MNT 100 billion for pensions, and MNT 20 billion

for welfare payments.

Source: Udriin Sonin

FITCH POSTS NEGATIVE OUTLOOK FOR MALAYSIA, JAPAN, MONGOLIA

Fitch Ratings said on Tuesday that Mongolia and two others out of the 18 Asia-Pacific sovereigns it

rates are on negative outlook, according to its November report.

Japan, Malaysia and Mongolia are the three countries with negative outlook in the Fitch list. In

Mongolia, loose macro policy settings pose growing risk to economic and financial stability, Fitch

said. Inflationary pressures are much higher with CPI rate at 13 percent and budget deficit of 11

percent is also huge for Mongolia. In addition to that, foreign exchange reserves are down 31

percent year-on-year by September and the currency has weakened around 10 percent. Non-

performing loans are growing at 10 percent, complicating the case of the country that borders

China and Russia.

Japan was affirmed A+ in May 2014 on erosion of credit profile by high and rising public debt ratios.

Fitch said Japan's future now lies on the likelihood of the next round of sales tax hike as the

country is burdened with huge public debt.

"Abenomics could break Japan out of its downward spiral if nominal and real GDP growth can be

strengthened sustainably as stimulus wears off," Fitch said.

The only positive is for New Zealand as Vietnam, which was rated B+ with positive outlook in the

previous report has been upgraded to BB- with stable outlook, on the back of improved

macroeconomic stability and stronger external balances, Fitch said. Structural economic

challenges, including China's rebalancing and reform processes, and tighter U.S. monetary policy,

are contributing to the broadly stable outlook for regional sovereign credit, according to the ratings

agency.

Source: International Business Times

EDUCATION OFFICIAL HOPE TO EXPOSE PHONY CREDENTIALS WITH DIGITAL RECORDS

The Education Ministry is launching a new system that tracks students' records in July to combat

against fraud in the education system.

“The system will contain all of the information, from enrollment of kindergarten to graduation from

high school,” said L. Luvsanjamts, Head of the Department for Controlling, Monitoring, Internal

Auditing at the Ministry for Education and Science. “Thanks to this, fake diplomas will be easily

exposed.”

Forty-seven percent of the work for system is complete already, according to the Ministry for

Education and Science. He said the program would also help defend against schools from pulling in

extra funds by misrepresenting the number of students in attendance. The system is already able

operating to accept registration, but once commissioned the information collected can be found

online at esis.edu.mn.

Source: Unuudur

WORLD BANK INTRODUCES PLANS FOR SUSTAINABLE LIVELIHOODS AT RURAL COMMUNITIES

The World Bank has laid out plans to a parliamentary standing committee to improve quality of life

in some of Mongolia's remote rural communities with the next phase of it Sustainable Livelihood

project.

The third phase of the Sustainable Livelihoods project will focus on refining local governance, said

James Anderson, the permanent World Bank representativeness for the World Bank in Mongolia.

The Smart Government initiative supports greater efficiency and transparency with government, in

addition to providing wider access for citizens to state services.

The project will also brought out an “E-health” project, which aims to consolidate health

information into a single system and present tech solutions for delivering health services to remote

areas. An education reform program aims to improve the quality of primary education with more

focus on reading and mathematics fostering better focus among students.

Source: Montsame

UB APARTMENT PRICES ON DECLINE

Apartment prices declined 2.68 percent in October from the month before, according to an index

compiled by market participants released on 12 November.

Apartment prices are down less than 1 percent from January, shows the report, which explains that

the loss is most likely related to because of a more than 30 percent decline in mortgage borrowing

and the flagging economy. Apartment prices are expected to decline further as new supply hits the

market.

The index is compiled by real estate companies Tenkhleg, Aktiv Zuuch and Mongolian Properties.

Source: Undesnii Shuudan

UB ROLLS OUT ONLINE APP FOR HEAT AND ENERGY

The state-owned company responsible for managing the heating network in Ulaanbaatar says it is

fully prepared for the coming winter and is launching a new online platform for services.

Customers may now make payments online, as well as review bills and submit complaints through

its website my.tog.mn. Another website, ubedn.mn, allows customers to share information on how

the electricity and heat is operating at their homes, while tno.ubedn.mn can be used to fine out

information on fixed prices, schedule repairs and send complaints.

Ulaanbaatar is also planning to expand the grid to deliver these services. The city has improved

heat and energy delivery to 43,474 households over the last two years, but there is still the need

for a higher capacity with the added 30,000 energy consumers to the city each year.

Source: News.mn

AVIATION INDUSTRY MUST SPREAD ITS WINGS

A vast land with an increasing number of millionaires and an overflow of aviation staff is a good

foundation for Mongolia’s general aviation industry—but is the country’s infrastructure enough.

General aviation means all non-scheduled, non-airline flights, both private and commercial—such as

gliders, corporate jets, helicopters, flying clubs, and flight training. Currently, there are only 10

aircrafts currently in Mongolia under this classification and scheduled flights take up 99 percent of

the market, which means plenty of room for growth in Mongolia's wide-open skies.

In the United States, general aviation contributes more than USD 150 billion to the U.S. economy

each year, and employs more than 1.2 million people, according to data 2014 from the General

Aviation Manufacturers Association. That kind of potential is why 21 transport ministers from 21

countries included in the Asia-Pacific Economic Cooperation (APEC) forum adopted a set of core

principles to facilitate industry in the region. The Asia-Pacific region more than doubled its market

share of annual business aircraft deliveries between 2007 and 2012. Closer to home, China has

opened its aviation sector step by step to the outside world, even christening an aircraft

supermarket in Beijing last year. Russia last October approved its own plan to develop the industry

there.

Mongolia has six companies operating within general aviation, providing private commercial flights

at a rate of USD 1,500 to USD 4,000 an hour, depending on the type of aircraft. Those prices,

however, are 30 percent higher than the world average—they could be brought down to USD 300 to

USD 400 for small aircraft.

“Due to seasonal weather difficulties, there are 250 days good for small recreational aircraft

flights, which could mean up to 500 to 700 hours annually of flight per aircraft in Mongolia. This

would mean a profit per plane of USD 200,000 per year, after fuel and maintenance costs,” said

Buren-Erdene Khuldorj, President of the Mongolian General Aviation Association and chief executive

officer of Thomas Air, a private aviation company.

Source: Mongolian Economy

MONGOLIA'S NATIONAL BIRD UNDER THREAT BY URBANIZATION

Mongolia has recorded an increasing number of falcons being electrocuted by power lines.

The Ministry of Environment and Green Development put out a statement that it would move to

protect the birds from accidents with power lines after dozens of Saker Falcons were found dead in

Bayankhongor Aimag from such accidents last year.

Mongolia in 2012 named the Saker falcon, which is native to Mongolia, China and India, its national

bird of pride. It is a bird of prey that is allowed limited exported from Mongolia at a hefty price to

countries such as Qatar, Bahrain, Kuwait, the UEA and Saudi Arabia.

Source: News.mn

COAL RALLIES ON GLENCORE MINE CLOSURES

Thermal coal rallied on Friday after Glencore said it would halt production at its Australian mines

over the Christmas period to try to tackle a global supply glut.

Slack demand, supply growth in Australian and Indonesia and a stronger US dollar have combined to

drive down the price of thermal coal this year. Material shipped from the Australian port of

Newcastle – the market for the Asian market—has dropped 25 percent during the past year and is

down 17 percent since May. Last week, prices hit a five-year low. But Australia thermal coal, as

assessed by Argus, rose 93 cents to USD 62.60 a ton on Friday as the market digested Glencore’s

move in Australia.

Analysts estimate that about a third of seaborne coal is being sold at a loss. But rather than cut

production most mining companies have looked to cut costs and pump out more material in an

effort to lower units costs and improve their position on the cost curve. While Glencore’s three-

week shut down will reduce global supply by only five million tons, analysts said the move was

significant and would be closely followed by the industry.

Glencore and its boss Ivan Glasenberg have repeatedly criticized rivals, including BHP Billiton Ltd.

and Rio Tinto PLC, for expanding their operations in commodities such as iron ore and pumping

more material into an oversupplied market. However, that argument has been seen in some

quarters as self-serving because Glencore will be responsible for half the new thermal coal coming

to market over the next year.

Glencore expects the seaborne thermal coal market to shift back into deficit next year, on the back

of improved demand and slowing supply growth. By 2017, it sees a deficit of about 80 million tons,

driven by increased demand in India. Separately, China said on Monday it would phased out in two

years a 6 percent tax on high-grade thermal coal shipments from Australia. A 3 percent import tax

on coking coal will also be removed under the terms of a new trade deal between the two

countries.

Source: Financial Times

IT'S OFFICIAL: JAPAN FALLS INTO RECESSION

The Japanese economy unexpectedly entered recession in the third quarter, a surprise that may

ensure Prime Minister Shinzo Abe will call snap elections and delay a consumption tax increase

scheduled for next October.

Japanese gross domestic product (GDP) decreased by an annualized pace of 1.6 percent in the third

quarter, versus forecasts that it would rebound by 2.2 per cent. The economy has been in a deep

slump since a rise in Japan's consumption tax in April. The prior quarter's 7.1 percent annualized

slump was revised down to -7.3 percent.

Business spending drove the third-quarter decline, falling 0.2 percent. Personal consumption rose

0.4 percent. In revised second-quarter numbers, private consumption fell 5 percent and business

consumption dropped 4.8 percent.

Source: Financial Times

DISCRIMINATORY TAX - EDITORIAL

In a country like Mongolia, with such a widespread shadow economy, cash transactions have

become the norm and sales taxes hasn't always paid in full. Mongolia asks for heavy taxes because

of this, but there's a better way.

Value-added tax (VAT) makes up 33 percent of tax revenues, which is why the government is

hesitant to reduce it. The introduction of a consumption tax such as VAT led to many disputes and

the law was revised multiple times. It was first raised to 13 percent that same year it was

introduced, then 15 percent in 2000, before it was brought back to 10 percent in 2006.

VAT represents the value added to a product at each stage of production, and it is a control

mechanism to be paid by the seller on behalf of the buyer. Thus, the final consumer pays the tax in

full. But in our country, a large majority does not pay this tax, which leads to tax data distortion.

Not every company pays VAT either.

To ease the tax burden on companies, Parliament is looking to raise the threshold of minimum

revenue earned before tax must be paid from MNT 50 million to MNT 250 million. But in developed

countries, income tax revenue from individuals and companies is usually two or three times more

than VAT. These countries have no minimum revenue levels, so everyone pays VAT and only social

welfare goods and services are eligible for exemptions. Some countries even pay taxes in brackets.

However, in developing Mongolia individual income taxes don’t make up even 10 percent of tax

revenue. VAT is designed to monitor who is adding value to a product. To encourage everyone to

pay this tax, the minimum revenue levels should be removed and VAT levels should be drastically

reduced (down to 3 percent). This way, individuals and businesses will start paying this tax and the

size of the shadow economy will decrease.

The tax has to be decreased so that every citizen in Mongolia contributes.

Dambadarjaa “De Facto” Jargalsaikhan is an independent media representative of Mongolia. He is

the host of the interview television program DeFacto on NTV Mongolia the DeFacto radio program.

Source: UB Post

POLITICS

MONGOLIAN BUDGET PASSES BUT GOVERNMENT STILL LACKS PREMIER

Mongolia finally passed a budget on November 15, just a day before the legal deadline, but the

country is still without a permanent prime minister, and a battle is taking place within the ruling

party at a time of faltering economic growth.

Mongolia's parliament passed a budget with MNT 7.6 trillion tugrik worth of spending and a MNT 500

billion deficit after twice striking down proposals by former Prime Minister Norov Altankhuyag's

government. Spending is up about 36 percent from this year, despite projections that growth is on a

downward slide. The budget was passed without a finance minister and with Deputy Prime Minister

Zandaakhuu Enkhbold filling in as the acting head of government.

Seven ministers were kicked out of office in October because of economic troubles, including the

ministers of finance and mining. Parliament approved Altankhuyag's proposal to consolidate

government ministries to 13 from 16, and replace key positions in his cabinet. However, Parliament

didn't quit there and next voted Altankhuyag out of office. A caucus held by Altankhuyag's

Democratic Party quickly selected a replacement in Rinchinnyam Amarjargal, but a committee that

runs the party ignored that vote and has put up the cabinet secretary Chimed Saikhanbileg as the

choice for the parliament to vote on instead. Amarjargal was seen as the candidate to steer the

country in a new direction, while Saikhanbileg is seen as someone to maintain Altankhuyag's

policies. Though some will baulk if Saikhanbileg is confirmed, it may save Mongolia the strain of

having to rebuild its government from the ground up.

“The fact that Saikhanbileg has been part of the government for the past two years suggests that

he may well leave many ministerial posts [beyond the ministers themselves] alone, while

Amarjargal’s maverick instincts might lead him to replace more people,” blogs Julian Dierkes, an

associate professor at the University of British Columbia who observes politics in Mongolia closely.

He also reckons the Democratic Party might swap its current grand coalition partners for the now-

opposition Mongolian People's Party (MPP). That would allow for “more decisive action that would

have a broad enough majority to not be threatened by caucus-internal debates,” he says.

Parliament had to pass a budget that pegs foreign debt below 40 percent of gross domestic product

(GDP). The debt ceiling is a new restriction for next year that Altankhuyag had attempted to raise,

but Parliament wouldn’t budge. Mongolia currently has a debt-to-GDP ratio of about 49 percent, a

civil servant familiar with this year's budget-making process said. The cap on foreign debt can be

kicked down the road, says the civil servant. The law won't be enforced until the government

reviews the 2015 budget in April, which will give whoever succeeds Altankhuyag time to make

another attempt to raise the debt ceiling or bring down the external debt level.

“They are taking action to bring it down by the end of the year,” says the civil servant, “but they

have expressed some concern that they might not be able to do so – they say it would be very hard

to bring it down below 40%.”

Source: BNE

PM CANDIDATE SAIKHANBILEG PROMISES A WAY OUT OF ECONOMIC TURMOIL

The Democratic Party's nominee for prime minister Chimed Saikhanbileg is already making promises

to address Mongolia's troubles with the economy.

“One general issue is the economic crisis we are currently facing. How to get out of this situation

will be the goal of the next government. Hence, all the people with seats in Parliament will leave

behind their personal endeavors and focus on the nation’s development. This will be our main

principle,” he said.

Saikhanbileg said that there will not be many structural changes in his new government, so as to

make everything “stable and in accordance with policies.” As was speculated, Saikhanbileg

confirmed that he will continue the Altankhuyag government’s action plan through 2016 and “work

to implement all large scale projects.”

When asked about division inside the Democratic Party on Saikhanbileg’s nomination, Parliament

Speaker Zandaakhuu Enkhbold said the National Consultative Committee, which nominated

Saikhanbileg despite a caucus vote in favor of challenger R. Margalit, is a “higher representative

organization within the party,” and members should respect the committee. Enkhbold also denied

the suspicions of a conspiracy behind Altankhuyag’s removal from the Democratic Party. Particular

attention has been given to the Shonkhor faction, which played a vital role in the collapse of

Altankhuyag’s government.

“Such conflicts were not there. There might have been some groups that made it seem like there

were such conflicts. Factions can [have different views] but they must be within their party

limits... Having lots of factions means a party is healthy,” maintained the Speaker of Parliament.

Source: UB Post

SAIKHANBILEG GRANTED SECURITY DETAIL

Prime Minister Nominee Chimed Saikhanbileg was put under the protection of state security on

Friday, as is the norm for government figureheads although. Saikhanbileg has not yet been

confirmed by Parliament, state security agents are taking the necessary precautions because of his

presumed ascension to office.

Source: News.mn

ENKHBOLD READY FOR A FRESH START

Recently appointed Democratic Party Head Zandaakhuu Enkhbold says he has learned his lesson

from the fallen Norov Altankhuyag government, as he plans to stomp out inter-party fighting for a

more stable government.

“For the last three years we worked on our rule. We will make the rule simpler to avoid fighting

within the party,” said Parliament Speaker Zandaakhuu Enkhbold.

The head of a party should not be included in the Cabinet, said Enkhbold. “It would make problems

for the government because the present Parliament does not have a majority party.” He also said

he would like to remove the party regulation that allows for the expulsion of party members –

which was the fate Prime Minister Norov Altankhuyag called for to the Democratic Party

parliamentarians who failed to attend the 5 November vote that cost him his job.

Enkhbold said the prime minister should be free to choose the minister of his own preference,

without his intervention. However, he warned, he should learn from the mistakes of Altankhuyag

who allowed to many conflicting interests into his Cabinet.

“The previous PM had a hard time because of pressure of factions among ministers, and we should

avoid that now. It would be better if the ministers were selected from outside of Parliament.”

Source: Udriin Sonin

AMARJARGAL SAYS HE'LL VOTE FOR SAIKHANBILEG IN PM VOTE

Democratic Party challenger for the prime minister spot R. Amarjargal says he won't delay forward

progress in government, and plans to vote in favor of Chimed Saikhanbileg's nomination. However,

he was dead against the idea of participating in the Cabinet Secretariat."I will not work with the N.

Altankhuyag's government," he said.

Source: News.mn

MPP MANAGEMENT BOARD REJECTS SAIKHANBILEG FOR PREMIER

The managing board of the opposition Mongolian People's Party (MPP) has rejected the nomination

of the Democratic Party's nominee for prime minister Chimed Saikhanbileg. The rejection came

despite the support of 19 MPP caucus members. The final vote for the board was 12 to seven,

opposed.

Source: News.mn

FINANCE MINISTERS ORDERS TAX BOSSES TO RETURN BONUSES

The Finance Ministry has ordered the removal of policy that rewards head bureaucrats at the Tax

Authority with bonuses for tax collecting extra tax after critical media reports came out that the

agency was extorting business.

Tax Authority Chief T. Batmagnai received orders to remove that regulation after a report came out

in Unuudur newspaper on 14 November that criticized the bonus rewards system as tool that

encourages tax officials to collect more tax than companies were legally required to pay. Unuudur

reported that the Independent Agency Against Corruption had found that tax officials had collected

MNT 6.6 billion in bonuses. The reward was granted to tax departments that were able to collect 60

percent of projections.

The order from the ministry compels department heads to return any bonuses they received from

this regulation. The reward system traces back to 2007, under the watch of former Finance Minister

Chultem Ulaan under the Sanjaag Bayar government led by the Mongolian People's Party from 2007

to 2008. That reward system was renewed in November 2012 by Ulaan when he was again made

finance minister, this time the Norov Altankhuyag government.

Source: Udriin Sonin

MONGOLIA ON PATROL FOR RED JASPER NINJAS

The State Specialized Inspection Agency is seeking a ban on the export of certain semi-precious

stones at customs.

The proposed ban is a response the growing popularity of red jasper stones among so-called ninja

miners who dig for precious stones and metals without license and unregulated. The trade for red

jasper has grown only in recent years, and it's also dangerous. Two men were recently found dead

after they went digging for the red stone.

Local police authorities have begun paroling popular dig sites, but trying to control informal mining

is a steep challenge that still haunts the country. Police are now collaborating with agents from the

General Intelligence Agency to identify the principal individuals and groups digging for red jasper.

Source: News.mn

CAMPAIGN CALLS FOR FIREARM REGISTRATION

The General Police Agency of Mongolia has registered 2,576 firearms nationwide this year.

The police authorities have launched the “Firearms Registration - 2014” campaign by establishing

registration centers. The campaign has resulted in the issuance of 100 new firearm licenses, 31

license renewals, and 92 seizures. Authorities have also identified 13 firearms dealers who are

suspected of misconduct and 109 unregistered firearms. Fines amounting to MNT 45,000 have been

issued, in addition to 2,467 citations.

Source: News.mn

RUSSIA, MONGOLIA SWITCH TO SIMPLIFIED VISA REGIME

The Russian-Mongolian agreement on easing visa requirements entered into force on 14 November.

The counselor said the overall duration of stay should not exceed 90 days over six months.

Vladimir Goryachev, the counselor of the Russian embassy in Mongolia, said that Russians will now

be able to stay in Mongolia, and Mongolians in Russia, for 30 days without visas. “Persons who plan

to stay over 30 days, as well as persons who go to study, work or engage in commercial activity,

should get visas,” Goryachev said.

“There is no talk of a full cancellation of the visa regime, but this simplification is rather significant

and it makes trips substantially easier for citizens who intend to maintain business, economic,

cultural and kin relations,” he said.

The agreement on terms of mutual trips by citizens was signed September 3, 2014 in the presence

of Russian and Mongolian presidents Vladimir Putin and Tsakhia Elbegdorj. According to Goryachev,

over 15,000 Russians visited Mongolia and some 18,000 Mongolians visited the Russian Federation

last year.

Source: Itar-Tass

ULAANBAATAR AND MOSCOW INK COOPERATION AGREEMENT

Representatives of Ulaanbaatar and Moscow have inked a cooperation agreement on professional

training for land management and urban planning.

A Mongolian delegation headed by Ulaanbaatar Citizens Council Chairman D. Battulga on 17

November met in Moscow with the City Duma Chair Aleksei Shaposhnikov to discuss contemporary

urban-planning and land uses practices there. They also discussed policies on health, the

environment and youth.

“The policy has been greenlit, and Moscow will always be ready to assist our Mongolian friends,”

said Shaposhnikov.

Source: Montsame

PRISONERS SWAPPED IN EXCHANGE

Mongolia has participated in a prisoner swap with South Korea. A South Korean prisoner was

released to authorities at a Buyant Ukhaa office. Mongolia has participated in three prisoner

exchanges with Russia. It first agreed on prisoner exchange with South Korea in May 2007 and

established the Takhar Service agency to employ prisoner exchanges last July.

Source: News.mn

WELFARE OFFICIALS ARRESTED ON GRAFT CHARGES

Two officials at the Government Implementation Agency have been arrested for defrauding their

agency. Director General of Social Welfare and Service D. Bayarsaikhan was arrested on 17

November, according to an unnamed staff member of the 1st District Prosecutor. Also arrested was

the head of the finance and registration division there, Erdenebulgan, said the source. [The Source

does not provide a full name -ed].

Source: Zuunii Medee

GIA SUSPECTS UNKNOWN MP MAY BE BEHIND SMS HACKING

An MP may be behind the dozens of SMS messages falsely attributed to parliamentarians, according

to one an intelligence worker.

The General Intelligence Agency opened an investigation after dozens of politically charged SMS

messages were sent seemingly from the phones of members of Parliament in October. Expert teams

from mobile phone operators MobiCom Corporation and Unitel's found that the SMS messages were

sent from Romanian mobile phone network operator Vodafone and users in Malta. At least 20

customers' phone numbers were used, but the total number of messages sent is still unknown. The

case remains under investigation, and may result in charges of abuse of power against any MP

suspected of malfeasance.

Source: News.mn

4 OUT OF 6 UB DEPUTY MAYORS FACE DISMISSAL

Ulaanbaatar's mayor will see more than half his top officials lost from redundancies because of

budget cuts.

Parliament called for 345 state redundancies during debate over the 2015 state budget, including

deputy, vice and assistant positions at all levels of governance. Parliament also called for the

removal of deputies wherever there may be more than two. Ulaanbaatar Mayor Erdene Bat-Uul

leads the nation in the number of deputies with a total six.

Source: News.mn

UNESCO INSCRIBES MONGOLIAN RELIGIOUS TEXT IN MEMORY OF THE WORLD

UNESCO on 19 November commemorated the addition of Mongolia Sutra Great Deity Tara to

UNESCO's Asia-Pacific Register of the Memory of the World. The sutra, which is one of the smallest

books in the world, was approved for the register last May. Minister of Culture, Sport and Tourism

Ts. Oyungerel was there to witness the event.

Source: News.mn

___________________________________________________________

ANNOUNCEMENTS

MONGOLIA PROJECTS & INVESTMENT SUMMIT, 18-19 NOVEMBER, HONG KONG

The Mongolia Projects & Investment Summit will be held in Hong Kong from 18 to 19 November.

The context of the Summit will be a constructive, productive and sincere appraisal of Mongolia as a

place for FDI, given the current circumstances, and what is being done to strengthen its

attractiveness to the international investment community. The Mongolia Projects & Investment

Summit Hong Kong will bring together leading business, investment and governmental figureheads

in an environment of progressive discussion and action.

The implementation of the new Investment Law, amendments made to the Mining Law, a realized

dedication to PPP and more do show that the government is moving in the right direction. The

question on investors’ minds is what tangible progress has been made since last November which

would warrant a return of FDI?

BCM members are eligible for a 15 percent early bird special. Download the brochure for the

conference agenda here. For registration logon here, or for more information email

info@beaconevents.com or call: +852 2219 0111.

_____________________________________________________________________

2014 RISK FORUM CONFERENCE, 27 NOVEMBER, UB

The 2014 Risk Forum will be held at the Tuushin Hotel on 27 November.

This year is the conference's fifth to bring together professionals from the local insurance industry,

local business representatives, and government leaders to present an analysis of the economic and

social risks and have an opportunity to share the best risk management practices. The event will be

organized by Mandal General Insurance, the leading provider of the risk management solutions.

“This is the biggest business lobby event in Mongolia with regard to improvement of risk

management framework” said Ganzorig Ulziibayar, chairman of Mandal, who is also chairman of

BCM risk management working group.

The morning session of the forum will put a focus on current political and economic situation and

risks that threatens businesses and companies. It includes key highlights from the Risk report

published by Mandal Insurance, currency rate fluctuation risks, and other impacts caused by

economic downturn.

Speakers during the second session will be focusing on social risks that are caused mainly because

of flawed planning for a catastrophic event in UB. Presentations from NEMA, UB City authority will

give a comprehensive overview on the current situation and effective solutions to businesses that

operate in UB as well as municipal agencies involved in home rule of UB City.

__________________________________________________________________

‘BCM IN THE UNIVERSITY CLASSROOM’ NEWS

Business Council of Mongolia (BCM) has been pushing forward 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 2,045 students

and teachers have participated with BCM in the University Classroom Project.

Most recently Bulganmurun Tsevegjav, senior officer at GGGI and BCM`s Environmental Working

Group chair, gave a presentation entitled “Role of International Organizations in Mongolia’s Path to

Green Growth: Global Green Growth Institute” to an audience of 33 students, postgraduate

students and teachers at department of Geo ecology and environmental study, National University

of Mongolia on 23 October.

The next ‘BCM in the University`s Classroom’ series lecture will be held on 20 November at the

Institute of Finance and Economics. GTs Advocates will be invited to speak. Presentation title:

"Corporate Business Law in Mongolia". For further details, please contact Erdenetsetseg T, BCM

Working Group Coordinator at erka@bcmongolia.org

______________________________________________________________________________________

BCM WORKING GROUP MEETINGS

Education Working Group

The BCM Education Working Group met on Wednesday, October 15, with 21 members attending.

Saha Meyanathan-/DAS/ moderated the session.

New Members: Tsetsentsolmon Baatarnaran-Higher Education Reform Project, Uyen Ganzorigt-PwC,

Battuvshin Chuluundorj-University of the Humanities, Ph.D Dorjderem Nyamjav-Mongolian Institute

for Resources and Technology.

New Participants: Telmen Erdenebileg, Owen Roach, Mark Dvorak -Save the Children, Shinbayar

Gan and Battugs B-Labor Exchange Central Office of Mongolia, Julian Woll-GIZ were welcomed.

Guest: Peter McLinton-STVET project Support to Mongolia's Technical and Vocational Education and

Training Sector.

Speakers and topics were:

1.Update on Higher Education

-Update on Higher Education Reform Project activities (Ms B.Tsetsentsolmon-Higher Education

Specialist at Higher Education Reform Project)

-International Accreditation Process of the ISU (Dr Robert Stearns)

-German-Mongolian Institute for Resources and Technology (Ph.D Dorjderem Nyamjav)

-Higher Education Update from PwC Academy-(Uyen Ganzorigt)

-List of best University's in Mongolia (Mr.Misheel Dashdavaa, Mr.Undral A- Forbes Mongolia)

2. VETC Update

-Update on VETC partnerships by (Mr.Pascal Houben-GIZ)

Please contact:erka@bcmongolia.org

Tax Working Group

BCM`s Tax Working Group met on 1 October with 14 people attending.

Co-chair Tsendmaa Ch, Tax Executive Director of PwC, moderated the meeting.

New members: Rentsenkhand D - BDO, Nyamdulam N and Zoljargal Ch - PATC.

New Participants: Enkhmaa D, Munkhtsetseg S from MSM.

Speakers and topics were:

1."The changes to tax regulations" in 2014 by Azzaya L, Senior Tax Consultant of PwC, and

Tsendaa Ch, Tax Executive Director of PwC

2. Open discussion

Members discussed various tax law applications in Mongolia and asked any agenda topics for next

WG meeting.

If you have any suggestions for the next Tax WG meeting agenda, please send it to

erka@bcmongolia.org.

Logistics Working Group

BCM`s Logistics Working Group met on 30 September with 9 people attending.

Chairman Tengis G, Chief Executive Officer of Monroad, moderated the meeting.

New Participant: Inca Bataa from Santa Fe Relocation Services

Speakers and topics were:

1. "Mongolian Customs"- Amgalan N, Regulatory Reform Manager at Business Plus Initiative (USAID).

2. Defining the mission in a position paper of the Working Group.

Members discussed the Logistics WG mission and suggested it include the following key areas:

1. Logistics policies-influence

2. Transparent customs-inspection agency

3. Logistics routes

4. Logistics centers

5. Transport insurance

6. Transportation cost (import, export, nationwide)

If you have any comments or suggestions on the Logistics WG mission, please send them to

erka@bcmongolia.org.

The next working group meeting is scheduled on 25 November with the following agenda:

1. Discussion of Logistics WG Mission statement

2. Guest: Federation of Freight Forwarder of Mongolia.

We still welcome those who have interest to join our BCM`s Logistics Working Group.

______________________________________________________________________________________

BCM WEBSITES

MONGOLIAN WEBSITE: ‘PRESENTATIONS’

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

http://bcmongolia.org/mn/илтгэлүүд

6 Presentations at Discover Mongolia, Children’s Palace, UB, 4-5 September, 2014 (MNG)

• Б.Оюунгэрэл - "Монголын Геологи, Уул уурхайн Мэргэжлийн Институт" Дисковер

Монголиа 2014

• Б.БААТАРЦОГТ ГЕОЛОГИЙН БОДЛОГЫН ХЭЛТСИЙН ДАРГА - "ГЕОЛОГИ ХАЙГУУЛЫН

ТАЛААР ТӨРӨӨС АВЧ ХЭРЭГЖҮҮЛЭХ АРГА ХЭМЖЭЭ" Дисковер Монголиа

• Монголын алт үйлдвэрлэгчдийн холбооны Удирдах зөвлөлийн дарга Т.Ганболд - "АЛТНЫ

САЛБАРЫН ӨНӨӨГИЙН БАЙДАЛ, ЦААШДЫН ЗОРИЛТ" Дисковер Монголиа 2014

• Лхамаасүрэнгийн Раднаасүрэн УУЯ-ны СБТГ-ын ТБХ-ийн дарга "МОНГОЛ УЛСЫН

НҮҮРСНИЙ ЭКСПОРТЫН ӨНӨӨГИЙН БАЙДАЛ" Дисковер Монголиа 2014

• Г. Эрдэнэбилгүүн "Ашигт малтмалын нөөц ашигласны төлбөр, холбогдох асуудлууд,

боломжит шийдлүүд" Дисковер Монголиа 2014

• УИХ, ЗАСГИЙН ГАЗРЫН ГИШҮҮН Д.ГАНХУЯГ "ЭРДЭС БАЯЛГИЙН САЛБАРЫН ЭРХ З ҮЙН

ОРЧНЫ ШИНЭЧЛЭЛ"2014 ОНЫ 09 ДҮГЭЭР САРЫН 04 ДИСКОВЕР МОНГОЛИА

________________________________________________________________

• U.S. Ambassador Piper Campbell's speech at Invest Mongolia 2014

__________________________________________

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

BUSINESS NEWS’, ‘PHOTO GALLERY’

2 Presentations at BCM Monthly Meeting on November 10, 2014:

• Ambassador Takenori Shimizu, "Economic relations between Japan and Mongolia: Latest

trends and developments"

• Matthew Pottle, Country Managing Partner, PricewaterhouseCoopers, "Global CEO Survey

2014"

3 Presentations at Risk Management and Insurance Solutions conference, Corporate Hotel, 16

October, 2014

• Vlad Bobko, Chief Broking Officer, Director Large Accounts and Specialty, Aon CEE, CIS and

Mongolia - "Political Risks and Trade Credit Workshop"

• Munich Re Group - "MINING RISKS - insuring the un-insurable?"

• Vlad Bobko, Chief Broking Officer, Director Large Accounts and Specialty, Aon CEE, CIS and

Mongolia "Risk Management and Insurance Solutions Conference for Mongolian Industries"

2 Presentations at BCM Monthly Meeting on September 22, 2014:

• Peter A. Markey, Managing Partner, Ernst & Young Mongolia – "Business Risks in the Mining

and Metal sector"

• Kh. Dorjpalam, Officer Treasury, Oyu Tolgoi - "Overview of the Risk Management and

Insurance Conference in October in UB"

9 Presentations at Discover Mongolia, Children’s Palace, 4-5 September, 2014 (ENG)

• Cameron McRae, Executive Chairman, SkyPath Partners LLC, Mr. Geoff McNamara, Pacific

Road Capital, Financial Regulation Committee, Ministry of Economic Development, Moderator: Jim

Dwyer, Executive Director, Business Council of Mongolia - "Panel Discussion"

• Amarbayasgalan.E, Director, Investment Banking Division, Golomt Bank - "Banking and

Mining" Discover Mongolia 2014 International Mining Investors Forum, September 4-5, 2014

• Neil Ashdown, Deputy Head of Asia, IHS - "Mongolian Competitiveness among Asian

Emerging Market" Discover Mongolia 2014 International Mining Investors Forum, September 4-5,

2014

• Paul Cromie, Chief Geoscientist for Asia Pacific, Anglo American - "Anglo American Global

Exploration" Discover Mongolia 2014 International Mining Investors Forum, September 4-5, 2014

• Peter Akerley, President & CEO, Erdene Resource Development - "Mining Exploration

Project" Discover Mongolia 2014 International Mining Investors Forum ,September 4-5, 2014

• George Lloyd, CEO, Xanadu Mines - "Mining Exploration Project" Discover Mongolia 2014

International Mining Investors Forum, September 4-5, 2014

• Adrian Buck, Geo Consultant - "TSIM Geophysics: Mongolian Case Studies" Discover Mongolia

2014

• Sebastian Rosholt, Senior Associate, Minter Ellison LLP - "Amendments to the 2006 Mineral

Law of Mongolia: Private sector overview" Discover Mongolia 2014 International Mining Investors,

September 4-5, 2014

• Bilguun Ankhbayar, CEO, MIBG LLC - "Review and Outlook of Mongolian Investment

Environment" Discover Mongolia 2014 International Mining Investors Forum, September 4-5, 2014

12 Presentations at Invest Mongolia, Blue Sky Hotel, 2-3 September, 2014 (ENG)

• APIP - "Trends and Dynamics of the Real Estate Market in UB" Invest Mongolia 2014

• "Mongolian Cashmere Industry Overview" Invest Mongolia 2014

• B.Tsogtgerel, Vice Minister - "MINISTRY OF INDUSTRY AND AGRICULTURE" Invest Mongolia

2014

• Toshinobu KATO, JICA Mongolia - "Perspective on Long-term Development Strategy in

Mongolia～Japanese experience and cooperation" Invest Mongolia 2014

• Tokyo Stock Exchange - "Opportunities for Mongolian Companies to Raise Capital in Japan"

Invest Mongolia 2014

• Matthew Pottle, Country Managing Partner, PwC - "Mongolia: capitalising on the

megatrends" Invest Mongolia 2014

• Graeme Hancock, President, Anglo American Mongolia - "ANGLO AMERICAN AN

INTRODUCTION" Invest Mongolia 2014

• John Johnson, CEO, CRU China-"China's top commodity trends and what this means for

Mongolia" Invest Mongolia 2014

• Batsukh Galsan, Chairman, "OYU TOLGOI" PROJECT" Invest Mongolia 2014

• Ya. Batsuuri, CEO, Erdenes Tavan Tolgoi JSC - "Largest developing coking coal deposit in the

world" Invest Mongolia 2014

• Graeme Knowd, Associate Managing Director - "Mongolia Banking System Outlook Mongolian

Banks Face Cyclical and Structural Challenges " Invest Mongolia 2014

• Erdenedalai Odkhuu, Associate; Bolormaa Gulguu, Associate, Hogan Lovells (Mongolia) LLP -

"Legal Developments in 2014 :Changes and Future Developments" Invest Mongolia 2014

2 presentations from BCM monthly meeting on June 23, 2014:

• T. Gansuld, 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”

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

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

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

Privatizations”

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

Achievements and Challenges”

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

Securities Limited

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

• Mongolia Economic Report – August 2014 by BCM;

• World Investment Report 2014 by United Nations Conference on Trade and Development ;

• Social and economic situation of Mongolia as of May 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);

• 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;

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

• Polit Barometer by Sant Maral Foundation, March 2014.

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

• Peabody Energy's Greg Boyce Says Don't Write Off Coal

• 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”.

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

11, 2013.

___________________________________________

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 6,500 fans on our Facebook fans page, 1,779 connections on LinkedIn

network, and 1,340 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/

________________________________________________

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]

October 31, 2014 *12.1% [source: NSOM]

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

Note: 12.7% y-o-y, Ulaanbaatar City, October 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]

July 30, 2014 12.00% {source: Mongol Bank}

CURRENCY RATES – 20 NOVEMBER 2014

Currency Name Currency Rate

US Dollar USD 1,883.13

Euro EUR 2,360.97

Japanese yen JPY 15.88

British pound GBP 2,946.44

Hong Kong dollar HKD 242.79

Chinese Yuan CNY 40.36

Russian Ruble RUB 307.49

South Korean won KRW 1.69

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.

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