BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 412 – January 22, 2016

BCM NewsWire provides short summaries of news collected from around the world. Each article is

kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full

article.

NEWS HIGHLIGHTS:

Business:

Oyu Tolgoi reports record levels of production for Q4;

Aspire Mining finalizes rail approvals for Mongolian coal;

Erdenet union head demands lower royalties, greater transparency;

Direct flight between Delhi and Mongolian capital by March;

Zinc concentrate plant employee dies from exposure to nitrogen;

EBRD investment in Central Asia hits €1.4 billion (USD1.52bn);

Canned meat factory launches in Darkhan;

South Korean clothing brand opens UB store;

PM meets Mongol Post shareholders;

Mongolia Business Forum at PDAC in Toronto on 8 March;

Oyu Tolgoi deploys SmartCap technology to stop accidents before they happen;

Canadian brothers' hockey documentary 'Rinks of Hope';

North Korea Is newest frontier for daredevil investor;

Rio freezes pay from CEO downward.

Economy:

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

Mongolia looking to tap dollar bond market;

Moody's affirms Mongolia's B2 sovereign rating, negative outlook;

Fitch rates Mongolia's USD bond 'B(EXP)';

Inflation falls to 1.9%;

Health insurance cap increases 11%;

Financial sector represents 4.7% of GDP, says Parliament speaker;

Excise tax hikes mitigate losses in government revenue;

Cargo, passenger rail transport figures slide;

PM vows to continue energy-grid expansion;

Livestock population reaches 56 mn;

Crop harvests fall in 2015;

Government promises aid to herders to prevent 'dzud' disaster;

Mongolia's foreign workforce;

Mongolia reaches out to its 8,500 Chinese foreign residents;

Pregnant woman dies from H1N1 flu;

U.S. Embassy measures air quality in UB;

App for UB transport launches;

Authorities warn of frigid weather;

The elephant in the room for Toshiba is nuclear;

Thermal coal prices tumble as industrial demand weakens; oil prices weigh;

China GDP growth at slowest pace since 2009, data shows.

Politics:

Mortgage program restored with Parliament's approval of amendment;

Parliament receives PM no-confidence motion;

Parliament rejects president’s bill on officials' conduct;

New Public Referendum bill asks the public if Constitution needs amending;

Doctors back health care bill for improving public services;

Ministry focuses on exporting food products;

S. Odontuya elected as head of Democratic Women’s Federation;

S. Ganbaatar elected as head of KhUN;

Mongolian seminarian returns home ahead of ordination;

Traffic rules set for Tsagaan Sar;

Mongolia as a neutral state — EDITORIAL.

BCM Updates:

Knowledge Sharing Sessions;

Advocacy Notes;

Working Groups News

BCM in the University Classroom Series;

Websites Update - Presentations, Mongolia Reports, Interviews;

Social Networks.

Economic Indicators:

Inflation;

Central Bank Policy Rate;

Currency Rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank Invest Mongolia Agency

Mongolian Business Database

BUSINESS

OYU TOLGOI REPORTS RECORD LEVELS OF PRODUCTION FOR Q4

Last year saw record levels of production for Oyu Tolgoi copper mine's second year of commercial

operations as total throughput of ore grew 8.5 percent to reach an all-time high in the fourth

quarter. Copper production for the quarter increased 2.3 percent over the third, according to a 19

January production update, while gold increased 68.3 percent. The 202,200 tons of copper

produced last year exceeded the guidance of 175,000 tons from the 66 percent stakeholder in the

mine, Turquoise Hill Resources Ltd., tallying 195,000 tons. Annual gold production was 653,000

ounces.

Compared with 2014, mine production increased 19.3 percent in 2015; concentrator throughput

increased 23.9 percent; concentrate production increased 39.9 percent; copper production

increased 36.3 percent and gold production increased 10.9 percent. In 2016, Oyu Tolgoi is expected

to produce 175,000 to 195,000 tons of copper and 210,000 to 260,000 ounces of gold in

concentrates.

Read the full results here.

Source: Oyu Tolgoi LLC

ASPIRE MINING FINALIZES RAIL APPROVALS FOR MONGOLIAN COAL

Metallurgical coal company Aspire Mining has achieved the milestone of obtaining final approval for

the 547-kilometer Erdenet-to-Ovoot railway. This progress follows confirmation that Aspire's local

subsidiary Northern Railways received its construction license for the railway line. The approval

followed a string of other recent milestones, including a Scoping Study which indicated there were

no technical obstacles to building a rail connection from Ovoot to the Russian city of Kyzyl.

Advancement of Aspire's rail plans for proposed coal operations has coincided with new

enhancements of the mining assets. Last month, Aspire confirmed that its Nuurstei project will be

able to produce a low-to-mid volatile, top tier hard coking coal that would be attractive to end-

users in the market for cleaner coal properties. A maiden coal resource at Nuurstei is expected for

the near term, with an exploration target contemplating a resource of up to 25 million tons.

Source: Proactive Investors

ERDENET UNION HEAD DEMANDS LOWER ROYALTIES, GREATER TRANSPARENCY

The trade union head for Erdenet Mining has made demands from government that includes the

charge that royalties for the state-owned miner be put on par with the Oyu Tolgoi copper gold

mine. Erdenet is Mongolia's oldest mine and is frequently one of Mongolia's highest tax payers. P.

Battur made demands in a letter to the government that royalty payments be lowered from 16

percent to 5 percent, the payment of dividends to Russia owed since 2012, and transparency in its

operations on par with the regulations laid out in the Glass Accounts Law that puts up information

regarding state-owned assets online. Oyu Tolgoi, however, is only a partially state-owned with

royalty rates locked in at 5 percent with an investment agreement dating back to 2009.

“The general director of Erdenet sued me saying that I libeled the company,” said Battur. “I did not

libel Erdenet... The police investigated me for 21 days.”

Source: Zuunii Medee

DIRECT FLIGHT BETWEEN DELHI AND MONGOLIAN CAPITAL BY MARCH

Mongolian national carrier MIAT Mongolian Airlines is set to open air traffic with India by opening a

direct flight between Delhi and Ulaanbaatar before the end of March. MIAT, one of two

international Mongolian carriers, has appointed Delhi-based cargo firm Zeal Global Services as its

General Sales Agent (GSA) to handle its sales, marketing and distribution business prior to spreading

its wings to the Indian skies. A GSA is a sales representative for an airline in a specific country or

region, responsible for selling all products including tickets and cargo services in the region where

the airline does not operate.

The agreement was signed following Prime Minister Narendra Modi's visit to Mongolia in May last

year.

Source: Economic Times

ZINC CONCENTRATE PLANT EMPLOYEE DIES FROM EXPOSURE TO NITROGEN

An employee at the Mongolia-China joint venture for zinc concentrate Tsairt Mineral has died from

exposure to nitrogen. The death occurred after being sent to Ulaanbaatar for treatment from

Sukhbaatar Aimag, where the plant is located. “Among other symptoms, his lung swelled because of

the nitrogen poisoning,” said D. Munkhzul, head of the Sukhbaatar Aimag central hospital.

Source: Zuunii Medee

EBRD INVESTMENT IN CENTRAL ASIA HITS €1.4 BILLION (USD1.52 BN)

European Bank for Reconstruction and Development (EBRD) invested a record amount in the Central

Asian region, in 2015. Last year’s total investment rose 75 per cent to EUR1.4 billion (USD1.52bn)

from EUR803 million (USD870mn) in 82 different transactions following 71 projects in 2014. This

brings the total EBRD financing in Central Asia to just over EUR10 billion (USD10.9bn). Kazakhstan

reported the largest total volume; Tajikistan and Mongolia tripled and quadrupled investment

compared with the previous year; and the Kyrgyz Republic and Turkmenistan kept up pace with

2014.

Mongolian investment increased more than four times year-on-year, to EUR467.3 million

(USD510mn) in 2015 compared with EUR117 million (USD130mn) in 2014. Matthieu Le Blan, the EBRD

Head in Mongolia, said 2015 was an exceptional year for the EBRD in Mongolia in many ways. “Not

only did the bank invest at levels equal to about 4 percent of Mongolia’s GDP last year, but it has

also reached out to new sectors of the economy, such as telecom and the knowledge economy.”

Source: AzerNews

CANNED MEAT FACTORY LAUNCHES IN DARKHAN

The Mongol Laaz canning facility has commissioned at Darkhan-Uul, with canned meat scheduled to

hit store shelves by spring of 2016. The factory is part of a national strategy to encourage private

companies to produce import replacements, as Mongolia currently spends USD6 million a year

importing canned goods. Each can may contain between 210 and 5,000 grams of food.

Source: Zuunii Medee, News.mn

SOUTH KOREAN CLOTHING BRAND OPENS UB STORE

A South Korean clothing brand with 700 stores worldwide has opened its first retail center in

Ulaanbaatar. Alpha Asia’s president, Dun Ja, was in Mongolia this week to attend the opening

ceremony of the store.

Source: Udriin Sonin

PM MEETS MONGOL POST SHAREHOLDERS

Khishig Arvin Industrial LLC and Ard Group have become shareholders in Mongol Post following the

privatization on the Mongolian Stock Exchange last week. The government sold a 34 percent

shareholding in the state-owned postal service last week, raising MNT6.2 billion. Prime Minister

Chimed Saikhanbileg met with representatives of Khishig Arvin and Ard, and some of the 300

individuals who bought shares on 19 January, promising to protect their interests with the

government's management of the company.

“The more protected the interests of the shareholders, the more people will become interested in

investing in privatizations and the stock market,” said Saikhanbileg.

Source: Montsame

SIGN UP FOR MONGOLIA BUSINESS FORUM AT PDAC, TORONTO, MARCH 8

The Mongolia Business Forum will be held on 8 March in Toronto as part of the convention for the

Prospectors and Developers Association of Canada (PDAC), the world's largest annual mining

conference. Mining Minister R. Jigjid, other Mongolian officials and top private sector leaders in the

extractive industries will be among the speakers discussing foreign investment opportunities. They

will also seek a dialogue between the government and private-sector attendees on ways to increase

competitiveness for companies operating in Mongolia.

The event is sponsored by the Mongolian Ministry of Mining, Mongolian Embassy to Canada and the

North American-Mongolian Business Council (NAMBC).

Source: NAMBC

OYU TOLGOI DEPLOYS SMARTCAP TECHNOLOGY TO STOP ACCIDENTS BEFORE THEY HAPPEN

Oyu Tolgoi LLC will keep employees tired eyes wide open with a new accident-prevention safety

device, said the company in a 15 January statement. A small device that can attach to hats or head

bands, called the SmartCap, will alert Oyu Tolgoi's control room if an employee such as a heavy

machinery operator is at risk of falling asleep by monitoring the wearer's brain activity. Fatigue

induced micro-sleep, while operating vehicles and heavy machinery, is one of the most common and

dangerous risks faced in the mining industry, said the Source.

Developed specifically for improving safety in mining operations, the technology was first

introduced in Rio Tinto Group’s Australian coal mines. Rio indirectly owns 66 percent of the Oyu

Tolgoi mine through subsidiary Turquoise Hill Resources Ltd. “As a young and growing business, we

have the opportunity to adopt cutting edge technology to drive improved safety performance,” said

Oyu Tolgoi president and chief executive officer Andrew Woodley.

Source: Oyu Tolgoi LLC

CANADIAN BROTHERS' HOCKEY DOCUMENTARY 'RINKS OF HOPE’

A love of playing and teaching ice hockey has taken Nate Leslie and his brother Boe around the

world, from Switzerland to New Zealand, England, and across the United States. But the trip that

sticks out most in Nate's mind is the one that's now the subject of a documentary called ‘Rinks of

Hope: Project Mongolia’. Mongolia is not known for hockey. In fact, the country ranks last among

the hockey-playing nations tracked by the International Ice Hockey Federation. In less than a week

spent in the country, Nate and Boe taught more than 300 players and coaches. “We impressed upon

them the ability to break skills down and learn them, then apply them to the game, that's always

the lasting impression we try to leave in groups.”

The film—written and directed by CBC journalist Karin Larsen—premiered on 18 January at the sold-

out Vancity Theatre in Vancouver.

Source: CBC News

NORTH KOREA IS NEWEST FRONTIER FOR DAREDEVIL INVESTOR

He searched for oil in the badlands of Somalia and fueled a stock market boom in Mongolia. Now, he

is betting on North Korea. James Passin, a hedge fund manager at Firebird Management, believes

the nuclear-armed country sits on as much as a billion barrels of crude—enough to make it as big a

producer as Oklahoma. Firebird owns nearly half of a Mongolian company, HBOil, which entered a

joint venture with the government of Kim Jong-un in 2013. The partnership gave the small company

expansive rights to overhaul North Korea’s primitive energy sector by opening 100 gas stations,

restarting a derelict refinery and drilling for oil and gas.

Some analysts worry that any oil exploitation would fortify Un and others in the country’s ruling

elite, but Passin dismisses such concerns. He said business with North Korea would both benefit

ordinary people and encourage the totalitarian state apparatus to become “more open and less

harsh.”

Source: New York Times

RIO FREEZES PAY FROM CEO DOWNWARD

Rio Tinto Group will freeze salaries for 2016 as the world’s second-biggest mining company warned

that it sees no signs of respite in the commodities rout that’s eroded profits and threatened

dividends for producers. The freeze applies from the chief executive officer downward, Sam Walsh

said in an e-mail to staff.

Last month, Rio said capital spending will be about USD5 billion in 2016, a reduction from an earlier

estimate of less than USD6 billion and down from about USD8 billion in 2014. Underlying profit fell

43 percent to USD2.9 billion in the six months through June on lower prices. The squeeze on the

biggest mining companies has prompted Anglo American to announce plans to scrap its dividend, cut

the number of mines it owns by more than half and reduce staff to 50,000 from 135,000, while

Glencore is carrying out a USD13 billion debt-reduction plan aimed at bolstering its finances.

Source: Bloomberg

ECONOMY

MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS

The Bank of Mongolia on 19 January sold USD35.48 million and CNY8 million to central banks at

currency auction (out of USD69.4 million and CNY28.3 million in bids) for closing exchange rates of

MNT2007.01 and MNT305.05, respectively. Also that day, it accepted tugrug swaps with commercial

banks for an equivalent of USD12.95 million after receiving offers worth USD12.95 million for tugrik

swaps and USD40 million for U.S. dollar swaps.

The Bank of Mongolia on 20 January issued one-week bills worth MNT167.5 billion at a weighted

interest rate of 12 percent. Also that day, the central bank received MNT24.3 billion in bids for 12-

week treasury bills with a face value of MNT15 billion that were sold at a discounted price and with

a weighted average yield of 13.560 percent. It canceled the auction of three-year treasury bills with

a face value of MNT15 billion after failing to receive bids.

Source: Bank of Mongolia

MONGOLIA LOOKING TO TAP DOLLAR BOND MARKET

Mongolia may take the plunge into the international bond markets for the first time since 2012. The

landlocked mining-focused economy has got a number of Western banks on board to arrange

investor meetings next week. Mongolia last tapped dollar bond markets in late 2012, offering

USD1.5 billion in debt that earned the moniker “Chinggis Bonds”. At the time, it managed to

borrow at a lower yield than Spain. Now, the yields stand at 8.64 percent, up from 4.5 percent as

recently as May.

Sentiment towards emerging markets has been heading rapidly south over the last 12 months amid a

U.S. rate rise, slowing growth and a commodities rout, which has certainly done no favors for

Mongolia, where mining accounts for about one-fifth of GDP. The cost of borrowing in dollars for

developing countries has jumped over the last year, and any looking to issue bonds face a

potentially tricky task getting investors on board.

Source: Financial Times

MOODY'S AFFIRMS MONGOLIA'S B2 SOVEREIGN RATING, NEGATIVE OUTLOOK

Moody's Investors Service on 14 January affirmed Mongolia's government bond rating at B2. The

outlook on the rating remains negative. Concurrently, Moody's has affirmed the government's B2

issuer rating, its senior unsecured MTN rating at (P)B2 and the short-term Not Prime issuer rating.

The affirmation of the rating signifies Moody's view that Mongolia's credit profile will remain in line

with B2 peers over the medium term, with current credit-negative trends dissipating over the

coming one to two years. Key credit supports include strong potential growth and abundant mineral

resource wealth. The decision to maintain a negative outlook reflects Moody's view that while some

of the credit pressures that drove our assignment of the outlook in July 2014 have diminished,

others have emerged.

Source: Moody's Investors Services

FITCH RATES MONGOLIA'S USD BOND 'B(EXP)'

Fitch Ratings on 14 January assigned Mongolia's forthcoming U.S. dollar-denominated bonds, issued

under the government of Mongolia's global medium-term note program, an expected rating of

'B(EXP)'. The expected rating is in line with Mongolia's Long-Term Foreign-Currency Issuer Default

Rating (IDR) of 'B' with “Stable Outlook.” The rating would be sensitive to any changes in Mongolia's

Long-Term Foreign-Currency IDR.

On 24 November 2015, Fitch downgraded Mongolia's Long-Term Foreign-Currency IDR to 'B' with a

Stable Outlook. The Long-Term Local-Currency IDR is also 'B'.

Source: Fitch Ratings

INFLATION FALLS TO 1.9%

Inflation dipped below the 2 percent threshold last month, falling two percentage points to 1.9

percent, year-over-year at 31 December, 2015. Falling inflation has been one of a few bright spots

during the economic downturn that has followed slowing growth in China. “The reduction of meat

and meat products was the main factor effecting inflation,” reads a statement from the State

Registration and Statistical Authority.

Comparatively, 2013 tallied 12.5 percent inflation, followed by 11.0 percent in 2014.

Source: News.mn

HEALTH INSURANCE CAP INCREASES 11%

The cap on how much patients can claim from the state health insurance has increased 11 percent.

Anyone who pays health insurance fees can now collect up to MNT2 million for healthcare

procedures compared with MNT1.8 million previously. “Due to this change, people will now receive

more medication and discounts when they are in a hospital,” reads a statement from the Social

Insurance Authority.

Source: News.mn

FINANCIAL SECTOR REPRESENTS 4.7% OF GDP, SAYS PARLIAMENT SPEAKER

Parliament Speaker Zandaakhuu Enkhbold called for mobilization to expand finance activity in

Mongolia. “Currently, 4.7% of GDP is generated by the financial sector,” said Enkhbold. “Of this

figure, 4 percent is the banks.”

“This indicates that the development of the financial sector is not enough, in comparison with other

countries.”

Source: News.mn

EXCISE TAX HIKES MITIGATE LOSSES IN GOVERNMENT REVENUE

Total revenue collected from excise taxes increased 30.4 percent from the year before after

Parliament hiked the taxes on products such as tobacco and alcohol. Overall tax revenue fell by 0.3

percent to 14.3 billion after a slow year with falling commodity prices and little foreign investment.

The extra funds collected from excise taxes helped balance out losses after the total collected from

value-added tax fell 24.4 percent.

Deficit spending totaled MNT1.16 trillion last year.

Source: Montsame

CARGO, PASSENGER RAIL TRANSPORT FIGURES SLIDE

Total revenue for the railway slid 9.4 percent to MNT387.5 billion after a year of less cargo and

passengers transported. Total freight transported last year was down 19.7 percent compared with

the year before. The number of passengers was down, too, by 24.5 percent.

On the other hand, revenue from cargo and passengers traveling by air was up by 0.6 percent,

despite 17.4 percent less cargo and 9.6 percent less passengers.

Source: Montsame

PM VOWS TO CONTINUE ENERGY-GRID EXPANSION

Prime Minister Chimed Saikhanbileg has promised to continue with government actions beginning

last year to put on line more power plants and re-evaluating tariffs so that they operate profitably.

Mongolia is going forward with plans to expand the country's infrastructure for generating and

delivering more power to homes throughout the country. The Saikhanbileg government plans to

build coal-fired thermal power stations at Ulaanbaatar, Baganuur and Tavan Tolgoi. Plans for

renewable energy generation plants include a hydro power plant at the Egiin River.

Last year, Mongolia imported 1.4 billion worth of energy from Russia and China. The government

hopes to ease this dependence on its neighbors by expanding its own power grid and improving

competitiveness with more liberal pricing regulations that follow market demand.

Source: Montsame

LIVESTOCK POPULATION REACHES 56 MN

Mongolia's livestock population was up across the board last year, with cattle leading with 10.7

percent growth. Mongolia tallied 56 million heads of livestock nationwide last year—3.8 million

cattle, 3.3 million horses, 24.9 million sheep, 23.6 million goats and 386,000 million camels. The

horse population followed closely behind cattle’s increase of 10 percent; while the sheep

population grew 7.4 percent, goats by 7.2 percent and camels by 5.4 percent.

Last year saw a total 625,600 animals lost, or 1.2 percent of all livestock from the start of the year.

Source: Montsame

CROP HARVESTS FALL IN 2015

Harvests last year were down in 2015 from the year before after droughts ravaged crops in summer,

according to the National Statistical Office, with grain production falling 58.3 percent. Vegetable

production fell 31 percent, compared with a 12.7 percent decline in hay, and 0.9 percent in fodder.

The potato harvest was the one bright spot, with production growing 1.4 percent.

Source: Montsame

GOVERNMENT PROMISES AID TO HERDERS TO PREVENT 'DZUD' DISASTER

Ulaanbaatar has promised supplies to herders suffering from this year's harsh winter conditions. The

Chimed Saikhanbileg government has budgeted MNT1.4 billion in aid to better cope with the harsh

winter conditions, said Deputy Prime Minister Ts. Oyunbaatar. The situation could be labeled a

natural disaster known as a “dzud” if the heavy snowfall and cold temperatures result in many

animals deaths. That includes the delivery of 6,580 tons of hay and 2,672 tons of fodder as aid.

Russia has also promised to help by donating vehicles to hospitals at areas worst hit and MNT600

million. The government also will provide additional aid in the form of vaccines to manage

outbreaks of small pox, Oyunbaatar said.

Source: Montsame, 2

MONGOLIA'S FOREIGN WORKFORCE

Mongolia had 6,800 foreign workers from 78 countries last year, according to a report from the

National Statistical Office. Chinese workers led the pack, comprising 35.4 percent all foreign

workers, followed by North Koreans with 23 percent. Most foreign workers were in construction (28

percent), followed by mining (21.4 percent) and education (14.1 percent).

Workers of other nationalities included Russians (8.3 percent), South Koreans (6.7 percent),

Americans (4.2 percent), and Vietnamese (3.4 percent).

Source: Mongolia.GoGo.mn

MONGOLIA REACHES OUT TO ITS 8,500 CHINESE FOREIGN RESIDENTS

Mongolia is making moves to better monitor the treatment of the thousands of Chinese workers

here. Mongolia has 8,500 Chinese citizens with residency, including 3,200 documented for

employment, said D. Bold, the chairman of the Citizenship and Migration Authority. In a meeting

with Chinese Ambassador Xing Haiming, Bold also promised to work toward providing more

information regarding responsibilities to maintain legal residency and Mongolia's laws.

Source: Montsame

PREGNANT WOMAN DIES FROM H1N1 FLU

A woman has died after giving birth while sick from the H1N1 flu in Uvurkhangai Aimag amid a

vaccine shortage. The deadly flu virus is most threatening to infants, pregnant women, the elderly

and individuals with chronic illness. Another 6 people in Uvurkhangai are receiving treatment for

the disease, while 7 people have been diagnosed in Ulaanbaatar. No quarantines have been set.

In 2009, more than 10 people died of H1N1 in Mongolia.

Source: Udriin Sonin

U.S. EMBASSY MEASURES AIR QUALITY IN UB

The U.S. Embassy in Ulaanbaatar has launched its Air Quality Monitoring program measuring the

amount of health-threatening substances in the air. Equipment to measure particulate matter of 2.5

microns (pm 2.5) have been installed at the Selbe river bridge and 100 Ail micro district. PM 2.5

matter can be a hazardous pollutant that may lead to cancer. Meanwhile, the embassy has limited

the amount of time its employees work outside and requires that they wear masks when they do.

“Air pollution is a problem which has no boundaries. Therefore, we hope that our effort on raising

awareness by providing hourly information about air pollution can serve in making creative and

proper decisions toward improving air quality,” said an embassy official.

The monitoring devices, which reportedly have 95 percent accuracy, cost USD22,000 each.

Source: Montsame

APP FOR UB TRANSPORT LAUNCHES

A new app for android devices has launched for beta testing that provides timetables and maps for

Ulaanbaatar's public buses. Another version for iOS devices will reportedly soon follow.

Source: News.mn

AUTHORITIES WARN OF FRIGID WEATHER

Weather forecasts have warned herders and truck drivers of frigid weather conditions throughout

the country this week. The coldest temperatures were expected in the west, with temperatures

dipping down to -48 Celsius at the Ider River in Khuvsgul. Temperatures in Ulaanbaatar were

expected to range from -33 Celsius at night to -19 Celsius during the day.

Source: Mongolia.GoGo.mn

THE ELEPHANT IN THE ROOM FOR TOSHIBA IS NUCLEAR

Toshiba Corp. has been revealed by a Japanese magazine as a central figure in 2011 talks for an

uranium “leasing” program that was shelved after widespread outrage from Mongolian citizens

concerned about the dangers of nuclear energy and the possibility that their country could turn into

a nuclear waste dump. In 2006, Toshiba bought a majority share in the American manufacturer

Westinghouse, which had branched out from home electronics into nuclear power plant

construction. Then, in 2011, news spread to Mongolia that Japan was considering buying uranium

mined in Mongolia. More significantly, it would include nuclear fuel reprocessing facilities for the

acceptance of high-level nuclear waste from Japan and other countries. The Japanese publication

Aera reviewed emails during the time between Toshiba’s then president, Norio Sasaki, and an

official of the U.S. Dept. of Energy that called for secrecy in the talks.

Source: Japan Times

THERMAL COAL PRICES TUMBLE AS INDUSTRIAL DEMAND WEAKENS; OIL PRICES WEIGH

Benchmark thermal coal prices for prompt delivery have all fallen to or below USD50 a ton for the

first time since before the 20087-2009 global financial crisis as industrial demand and a mild winter

in the northern hemisphere dent consumption. Prices are further weighed by the plunge in oil,

which analysts say is having a deflationary effect on the entire commodity sector. "Oil has been

leading everything lower. Moreover, the lagged deflationary pressure will push industry cost

structures for other commodities even lower," Macquarie said this week.

China's coal imports slumped 30 percent to 204.1 million tons in 2015, hit by a slowdown in

domestic demand, and imports could fall further this year. “We would avoid exposure to steel,

aluminum, thermal coal, potash and nitrogen markets,” Macquarie said. "Thermal coal (is) the big

loser in the clean energy push and from industrial underperformance," it added.

Source: Mining Weekly

CHINA GDP GROWTH AT SLOWEST PACE SINCE 2009, DATA SHOWS

China's GDP grew at its slowest pace since 2009 in the fourth quarter, a development that is

unlikely to reassure investors that all is well in the world's second-largest economy. Investors have

been on edge in recent weeks as turmoil returned to China's stock and currency markets, the results

of unexpected policy moves by Beijing. The economy grew at a 6.8 percent pace in the fourth

quarter, official data released on Tuesday showed, slightly slower than the 6.9 percent rate

economists had forecast and the slowest expansion since March 2009. For the full year, the

economy grew 6.9 percent, just below the government's target of approximately 7 percent.

The numbers, coupled with concerns that Beijing is struggling to manage a precarious economic

slowdown and curtail the country's reliance on debt-fueled growth, may have global consequences.

Source: New York Times

POLITICS

MORTGAGE PROGRAM RESTORED WITH PARLIAMENT'S APPROVAL OF AMENDMENT

Parliament has passed a bill that will allow the 8 percent mortgage plan to continue after a judge's

decision from the constitutional court put a halt to the program last month. Banks discontinued all

mortgage lending after a judge declared the subsidized mortgage program rolled out in 2014 was in

violation of the Law on Immovable Properties. The amendment, which passed with 86 percent

approval by Parliament, puts out measures to mitigate risk in credit repayment and delays in

repayment, thereby resolving the judge's issues with the program.

Source: Montsame

PARLIAMENT RECEIVES PM NO-CONFIDENCE MOTION

Prime Minister Chimed Saikhanbileg may face a no-confidence vote after his enemies in Parliament

gathered 19 signatures calling for his dismissal. G. Uyanga, a parliamentarian from the Mongolian

People's Revolutionary Party, on 19 January submitted to Parliament a petition for the prime

minister's removal with 19 signatures. Her charge is based on outrage against the signing of a

contract with Rio Tinto Group last May for the relaunch of development of an underground mine at

the Oyu Tolgoi copper mine.

R. Amarjargal said on Twitter that he has since recanted his endorsement of the petition, but no

change for the discussion scheduled for 21 January was announced.

Source: News.mn, 2, 3

PARLIAMENT REJECTS PRESIDENT’S BILL ON OFFICIALS' CONDUCT

Parliament has rejected a bill sponsored by President Tsakhia Elbegdorj that sought to hold

government officials more accountable outright for discussion. Parliament voted against a hearing

from the president on the bill.

Source: News.mn

NEW PUBLIC REFERENDUM BILL ASKS THE PUBLIC IF CONSTITUTION NEEDS AMENDING

The decision whether or not the Constitution needs amending could fall to the public if a new bill is

passed. MP N. Batbayar on 14 November submitted to Parliament revised legislation on the Law on

Public Referendum after some lawmakers criticized the original legislation passed on 6 November

last year [Source does not specify what those criticisms are -ed]. Batbayar's legislation, if passed,

would require public referendum on whether the Constitution should be amended if Parliament

could not come to a decision. “If any issue could not be tackled after three meetings of Parliament,

this issue should be resolved through the referendum,” Batbayar said.

Source: Montsame

DOCTORS BACK HEALTH CARE BILL FOR IMPROVING PUBLIC SERVICES

A new bill for medical aid and services would help raise the standards of public hospitals, doctors

told Parliament on 19 January. Health and Sports Minister on 14 January submitted a bill regulating

the dispensing of medical aid and services by international groups and an amendment to the Law on

Medicine and Medical Facilities that are meant to resolve issues that make it difficult for public

hospitals to attract talented doctors and deliver medical services. “A common problem is

financing," said the director of the National Oncology Center, L. Tumurbaatar, in an address to

Parliament. “Being paid low salaries, most of the skillful specialists and physicians are more

interested in working in private hospitals rather than in public health care.”

Source: Montsame, 2

MINISTRY FOCUSES ON EXPORTING FOOD PRODUCTS

The Chimed Saikhanbileg government is getting its ducks lined up in a row for greater food exports

after last year's drought cut down harvests significantly and with the expectation of numerous

animal deaths caused by harsh winter conditions. The Development Bank of Mongolia is committed

to financing MNT100 billion to farmers, said Food and Agriculture Minister R. Burmaa on 14 January

during the prime minister's weekly press conference. Meanwhile, the government has removed the

value-added tax on an expected 20,000 tons of wheat seed to be imported this year. The

government has set aside MNT80 billion to expand meat reserves and MNT100 billion to raise meat

products in Mongolia to a level for export.

Mongolia currently exports meat products to Russia, China and Vietnam.

Source: Montsame

S. ODONTUYA ELECTED AS HEAD OF DEMOCRATIC WOMEN’S FEDERATION

Parliament's S. Odontuya won an election to run the Democratic Women's Federation. Odontuya,

who is a member of the Shonkhor faction within the Democrats' ranks, won in two different votes

after the first was contested by runner-up B. Urgamaltsetseg.

Source: News.mn

S. GANBAATAR ELECTED AS HEAD OF KHUN

The popular elected official Sainkhuu Ganbaatar has taken the lead position at the National Labor

Party (KhUN) in less than a month since joining the party. Ganbaatar, who is a vocal critic of the

Oyu Tolgoi copper mine, was elected as the party head with 98 percent of the vote.

Source: Udriin Sonin

MONGOLIAN SEMINARIAN RETURNS HOME AHEAD OF ORDINATION

Baatar Enkh, a Mongolian seminarian studying in South Korea, has returned to his homeland months

before he is scheduled to become the first Mongolian Catholic priest. Enkh, 29, returned to

Ulaanbaatar on 19 January after graduating from Daejeon Catholic University. He is scheduled to be

ordained 28 August in the Mongolian capital's Cathedral of St. Peter and St. Paul. "I'd like this to be

a just world of humane love, one where we transcend things like religion, nationality, ideology, and

philosophy so that everyone can be happy," he told The Hankyoreh newspaper.

Enkh was introduced to Catholicism by a French missionary when he was eight years old. He

majored in bioengineering in Mongolia before arriving in South Korea in August 2008 with the aim of

becoming a priest.

Source: ucanews

TRAFFIC RULES SET FOR TSAGAAN SAR

Weekend traffic rules restricting cars from the road depending on the last digit of their license

plates will hit in the weeks leading up to the Mongolian lunar new year, Tsagaan Sar. From 10:00 to

20:000 on weekends, cars with license plates numbers ending with odd digits will be allowed on the

road on Saturday 30 January and 5 February. Even digits will be permitted on Sunday 31 January

and 6 February.

Source: Mongolia.GoGo.mn

MONGOLIA AS A NEUTRAL STATE—EDITORIAL

Mongolia as a neutral state. I have long pondered this issue, but now the time has come to discuss

it publicly. Every Mongolian cares about the further consolidation of our country’s freedom,

independence and sovereignty. And every Mongolian endeavors to make his own contribution to

this cause. Many view that being a neutral state perfectly serves that very interest. International

law views the neutrality status quo for times of war and indefinitely. Mongolia’s neutrality would

reflect the spirit of agreements and treaties concluded with neighboring states.

Neutrality enables a country to maintain equal and balanced international relations. The territorial

immunity of a neutral state is reassured by international law. This includes both air and water

borders.

Tsakhia Elbegdorj is the President of Mongolia.

Source: World Economic Forum

BCM UPDATES:

ANNOUNCEMENTS

"BEST OF BEST" CONCERT BY TUMEN EKH, 23 JANUARY 2016, UB

"Tumen Ekh" National Song and Dance ensemble, Mongolia’s leading traditional song and dance

ensemble, is presenting its “Best of Best” concert on 23 January at 4:00 PM. The concert will

feature some of the best traditional folk art including Majestic Tsam mask dance, Khuumii (throat

singing), ethnic group dance, contortion, and many more. All proceeds of the concert will go to

funding "Ger District Children's Bathhouse" project. We invite you to come and join a brief tour to

Mongolia’s rich culture of folk art, where vast steppes of grassland, clear blue skies, and a nomadic

way of life and contribute to an important cause. More information is available here.

KNOWLEDGE SHARING SESSIONS

"BCM KNOWLEDGE SHARING SESSION", 27 JANUARY, at SANTIS EDUCATIONAL SERVICES

A BCM Knowledge Sharing Session will be held on January 27 at Santis Educational Services. The

session will be organized in partnership with our member Santis Educational Services on the topic

"Benchmarking standards for language acquisition in the workplace". The session will be led by

Andrew Orgill, President of Inlingua Mongolia, together with Orgilmaa D., Director General of Santis

Educational Services. The session is offered free of charge to BCM members only and will be in

English language with interpreter available on-site at the Santis conference room.

A BCM Knowledge Sharing Session was organized on 24 December at the Ulaanbaatar City Public

Library with 31 people from 19 member companies attending. The topic of this month's session was

“Implementation of System Certification Standards and its Benefits” facilitated by D.Otgonbat,

Director of Observe Consulting LLC. The topic covered System Certification standards, why they are

important for business and how to adopt and implement SC standards in Mongolia. The feedback

collected from attendees showed that 95% informed that their training needs were met; 60% said

their expected topics were fully covered; the remaining 40% informed their expected topics were

partially covered. 25% of participants proffered to extend the duration of the session. Otgonbat D is

a Certified Management Consultant and Lead Auditor for QMS (ISO9001), EMS (ISO14001), OHSMS

(OHSAS18001) and EnMS (ISO50001) certified by the Professional Evaluation and Certification Board.

Mr. Otgonbat also works as a national trainer for Sustainable Finance Initiative.

BCM ADVOCACY NOTES

Majority supports review of the “Long-Term Sustainable Development Mission of Mongolia” in

Parliament

On 13 January the State Structure’s Standing Committee was convened to discuss whether to submit

the draft resolution regarding the Long-Term Sustainable Development Mission of Mongolia 2016-

2030, initiated by ten members of Parliament namely B.Garamgaibaatar, S.Byambatsogt and

N.Battseregby and others, to the parliamentary session for review. At the Standing Committee’s

meeting, MP S.Byambatsogt, one of the initiators of the draft law, delivered a presentation on the

draft resolution. 66.7 percent of the members who participated in the meeting agreed to submit

the draft resolution for review at the parliamentary session. Review of the draft resolution is billed

as the 10th issue on today’s parliamentary session.

Source: www.parliament.mn

Parliamentary draft resolution of “Long-Term Sustainable Development Mission of Mongolia” is

presented

On 4 January the Chairman of the State Great Khural (Parliament) Mr. Zandaakhuu Enkhbold was

presented a parliamentary draft resolution regarding the Long-Term Sustainable Development

Mission of Mongolia 2016-2030. The presenters were the Chairman of the State Structure’s Standing

Committee MP A. Bakei, Vice-Chair of the Democratic Party Caucus MP S. Odontuya, Chair of the

“Justice Coalition” at the Parliament MP N. Battsereg, and MP S. Demberel. To view the draft

resolution in Mongolian language, please click here.

Draft Labor Law (Draft Law) is returned to the Government

The Draft Labor Law (Draft Law) was returned to the Government by the Parliament. No further

meeting was convened by the Draft Law working group and the draft law is on hold. The Draft Law

working group is not intending to re-submit the Draft Law to the Parliament in the near future.

On 10 December in the plenary session of the Parliament it was decided to return the Draft Labor

Law (Draft Law) to the Government based on multiple conceptual and editorial comments provided

by a wide range of stakeholders. Furthermore, the working group is aiming to submit the amended

Draft Law to the spring session of Parliament, which will be held around April 2016.

The Economic Council, established by the decree of the Prime Minister Ch. Saikhanbileg in 2015, is

currently working on the draft Law on Arbitration. BCM’s Legislative Working Group reviewed the

draft law and provided key comments. In its scheduled meeting on Friday, December 11, the

Economic Council was positive toward BCM's comments.

For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.

BCM WORKING GROUP NEWS

‘BCM in the University Classroom’ series

Guest Speaker: Jon M. L. Lyons, Country Representative, GGGI,

Presentation topic: "Pathways to Greening Economic Growth in Mongolia and beyond"

Where & When: at the University of Humanities on 24 November 2015 and at the Institute of

Finance and Economics on 3 December 2015.

Jon M. L. Lyons, Country Representative, GGGI, gave presentation titled "Pathways to Greening

Economic Growth in Mongolia and beyond" at the University of Humanities (UoH) on 24 November

2015 and at the Institute of Finance and Economics (IFE) on 3 December 2015. Over 80 senior

students attended the lecture at the UoH and over 70 students at the IFE.

Mr. Lyons, fluent in Mongolian, delivered his presentations in Mongolian. The presentations were

followed by question and answer sessions. While students at the UoH were curious about his recent

project on model green public kindergarten to be built in Songinokhairkhan district of Ulaanbaatar,

students at IFE were asking questions about the size of projects eligible for green finance,

monitoring and reporting requirements for donor-funded projects and vacancy at GGGI or possibility

of doing an internship there.

For more information, please contact Khulangoo, Working Group Coordinator at

khulangoo@bcmongolia.org and Bayarmaa Amarjargal, Vice Director at bayarmaa@bcmongolia.org.

_________________________________________

Business Ethics Working Group

BCM’s newest and eighth Working Group, Business Ethic’s meeting was held on 18 January at the UN

House from 16:00 to 17:30 with 15 members in attendance.

Private sector: Atlas Copco, Mandal General Insurance; Government: Independent Agency against

Corruption (IAAC)

Other stakeholders: U.S. Embassy, UNICEF, Transparency International, World Vision, Extractive

Industry, Transparency International, Research Planning Institute;

Agenda of the meeting:

- Introduction of Working Group’s objectives

- Featured guest speaker: Anders Berglund, “The Business Code of Practice at Atlas Copco Group”

- Proposed topics and plan for 2016

The formation meeting focused on identifying collective objectives for the group and finalizing

topics for 2016. At the meeting, members volunteered to speak and some have proposed specific

deliverables as milestones as a group achievement for the year. It was decided to meet once every

two months and attract more local companies to hear their challenges in maintaining their integrity

in their respective sector.

For more information about this event, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

BCM’s Logistics Working Group

BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office

Building with 7 people in attendance representing Mongolian Express Co., Ltd. (known as Monex),

Representative Office of Mitsui & Co., Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-

Dolgoon Delgerekh LLC.

Agenda of the meeting:

• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”

• Discuss and plan WG’s 2016 activities

Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.

Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the

company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service

in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in

the delivery logistics within Ulaanbaatar.

Meeting participants were interested in the expansion plans of the company, such as delivery

services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave

comprehensive answers about the company’s plan for establishing cargo service between South

Korea and Mongolia initially and delving into other markets.

Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.

He again encouraged our members to read through the soft ideas laid out and provide comments.

Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,

so that members interested or operating in that topic area can actively participate and bring in

more insight.

The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the

questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.

For more information about this meeting, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM, at khulangoo@bcmongolia.org.

_________________________________________

BCM’s Energy and Environment Working Group

BCM's Energy and Environment WG meeting was held on 3 December, 2015 at EEIBC from 16:30-

18:30. The meeting was attended by 16 people with the following stakeholders:

Private sector: Newcom, Sopocco LLC, Areva Mongol LLC, Observe Consulting LLC, MCS Energy

Government: Ministry of Environment, Green Development and Tourism, Energy Development

Center of Ministry of Energy

Others: GGGI, WCS, French Embassy, Embassy of Canada

Guests: Sustainable Fiber Alliance

New members: D. Otgonbat, Observe Consulting LLC and Ch. Sarnai, Clean Energy Asia of Newcom

Group

Agenda of the meeting:

Discussion Topic: What's happening in Paris during Climate change events: What are the implications

for private sector?

Introduction and Opening remarks by Working Group Chair

"Introduction about Climate Change Conference/21 and Mongolia's commitment status" by D.Saruul,

Project Manager, Biennal Update Report to UNFCCC.

"Introduction about French Embassy and Overview about COP21 in Paris" by Raphael Droszewski,

First Advisor, Chief Adjoint de mission et Consul, The Embassy of France in Mongolia

Discussion on the topic among participants

Meeting minutes summary:

Bulganmurun Tsevegjav, Senior Program Officer of GGGI-Mongolia and Chair of the BCM’s Energy &

Environment WG (EEWG), introduced Jon Lyons, GGGI’s Country Representative to Mongolia, as an

upcoming Chair of the EEWG for 2016 during her absence.

Key points agreed during the meeting was to organize the next meeting in Jan or Feb 2016 following

up on the COP21 outcomes, updates on financial mechanisms, available funds and incentives for

private sector to develop low-carbon projects and to discuss its implications for the private sector.

For more information, please contact Bayarmaa Amarjargal, Vice Director at

bayarmaa@bcmongolia.org.

_________________________________________

BCM Risk Working Group

BCM’s Risk Working Group’s “year-end” meeting was held on Thursday, 3 December at Silk Road

Restaurant, with 14 members in attendance representing Mandal Insurance, Thiess Mongolia,

XacBank, Churchill’s, Wagner Asia, Erdenes Tavan Tolgoi, Deloitte Onch Audit, Bagatumurch and

Observe Consulting.

Agenda of the meeting:

• Featured guest speaker: Christine Hudetz, Transparency International Managing Compliance Risk –

TI TOOLs and examples

• Working group's overview of year 2015

• Discuss and plan WG’s 2016 activities

BCM’s upcoming 8th WG-Business Ethics Co-chair Ms. Christine delivered comprehensive

presentation about Transparency International (TI) and examples of innovative tools developed by

TI. Members were interested in the UK Bribery Act, which straddles the public/private divide to

encompass all commercial activities.

Zaya Bolorbold, Co-chair of the Risk Working Group (WG) introduced plans for 2016, with Mark

Bailey Co-chair of the Risk WG clarifying the proposed idea for disaster management drill exercise.

It was agreed to send the WG plan for 2016 to members for comments and convene for next

scheduled meeting in January 2016.

The “year-end” meeting was concluded with delicious dinner graciously provided by Mandal General

Insurance. For more information about this meeting, please contact Khulangoo Purevjav, Working

Group Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

BCM Education Working Group

BCM’s Education Working Group was held on 26 November 2015 at Executive Excellence

International Business Center, 10F Galaxy Tower from16:00 to 18:00. Fifteen people attended the

event representing foreign mission in Mongolia, private sector, universities and consultants of donor

funded projects:

Foreign Mission: Canadian Embassy;

Universities: National University of Mongolia, Mongolian University of Science and Technology

Private sector: PwC, Minter Ellison

Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education

and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The

Global Fund;

Agenda of the meeting:

16:05-16.10 Introductions

16:10-16:25 Update on Higher Education Reform Project activities (IRIM/Saha)

16:25-16.40 Update on Vocational and Technical Education Activities (VETP/Pascal)

16:40-17:10 Update on Labor Law Amendments, TVET Law Amendments: Higher Education

Amendments (IRIM/Saha)

17:10-17:30 Updates by members (FLP, Mandal)

Meeting minutes summary:

Opening remarks by Education Working Group Chair-Saha Meyanathan with passing of the

information about being selected as the best Working Group of the year 2015.

Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB

funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities

will be organized first week of December.

During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of

building the capacity of the professors, as they are the ultimate knowledge givers to the students.

The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher

education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to

highlight a few:

For more information about this event, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

BCM Capital Markets Working Group

The BCM Capital Markets Working Group meeting was held on Tuesday, 15 September, at

Ulaanbaatar City Public Library program room with 42 participants attending.

The expanded meeting included 34 companies from BCM members.

Moderator of session was Nick Cousyn, COO, BDSec and co-chair of the BCM Capital Markets WG.

The following presentations were made during the meeting:

- "Khan Bank update" - by Norihiko Kato, CEO of Khan Bank

- "Trade & Development Bank update" - by Randolph S. Kappa - President of Trade & Development

Bank

Please contact Erdenetsetseg T, BCM Working Group co-coordinator at khulangoo@bcmongolia.org

for more information about the meeting outcomes.

_________________________________________

BCM Tax Working Group

The BCM Tax Working Group (TWG) met on Thursday, 27 August, with 12 members attending.

Onch Dendevsambuu-Deloitte Onch and Tsendmaa Choijamts-PricewaterhouseCoopers, Co-Chairs of

the TWG, moderated the session.

New participants: Bolortsetseg T, Khan Bank; Boloroo T, Thiess Mongolia.

Meeting agenda was to review the draft amendments to the CIT Law.

The summary comments from the TWG will be sent next week to BCM's chair, Byambasaikhan B, for

follow-up with key GoM officials.

Next TWG meeting will review the newly adopted VAT Law which will be in effect 1 January, 2016.

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

WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS

Presentations:

BCM Monthly meeting on December 7:

- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better

Leaders Through Education & Idea Exchange”

- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant

Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –

STOPP”

- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against

Corruption (IAAC) of Mongolia - “Introduction of IAAC”

- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”

_________________________________________

Mongolia Projects & Investment Summit Hong Kong, 16-17 November:

- Zoljargal Naidansuren, Governor, Bank of Mongolia, “The new equilibrium: reforms to sustainable

growth and savings"

- Narantuya Zagdkhuu, Chair, Financial Regulatory Commission of Mongolia, "Making Mongolia a

frontier again: financial market developments"

- Norihiko Kato, CEO, Khan Bank, "Where does the banking sector fit it?"

- Munkhsukh Sukhbaatar, Rio Tinto, "The way forward for Oyu Tolgoi underground"

- Bat-Uul Erdene, Mayor of Ulaanbaatar city, "City of Ulaanbaatar-2030"

- Matthieu Le Blan, EBRD Head office in Mongolia, "The importance of economic diversification and

import replacement opportunities EBRD's role in enabling progress"

- Tuvshintugs Batdelger, Economic Research Institute, "Transaction Cost of Conducting Business in

Mongolia: SME perspective"

- Oliver Thirlwall, Asian Real Estate Capital, "Distressed opportunities-banking and real estate"

- Kevin Trzcinski, Vice President Corporate Development at Worldwide Power & Technology (HK)

Ltd., "Mongolia as a destination for Scientific Research & Development"

- Randolph Koppa, President, Trade and Development Bank, "Challenges and Opportunities for

Growth"

_________________________________________

Mongolian Annual Risk Management Forum, 11 November:

- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -

Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group

- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western

International Mongolia

- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,

NPC&Mandal LLC

- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head

Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor

- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General

Insurance

- "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC

Mongolia

- "Corporate Crises Management" - G.Odbayar, Mining National Operator

_________________________________________

BCM Monthly Meeting on 2 November:

- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper

business”

- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -

“Introduction to Transparency International’s Business Principles for Countering Bribery”

- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor

Law”

_________________________________________

BCM’s “Knowledge Sharing” event at EEIBC on October 9

- Dr. Nigel Finch, Managing Director, Saki Partners, “Strategically Managing Mongolia’s Sovereign

Credit and Perception Ratings”

_________________________________________

Presentations at BCM Monthly Meeting on 28 September:

- Mend-Orshikh, Founder & President, New Media Group, “Sales and business opportunities using

BCM online platform”

- Steve Potter, Executive Director, Wagner Asia Group, “Corporate Ownership vs. Corporate

Responsibility: How a foreign owned company can contribute to the well-being of Mongolia. Case

Study: WAGNER ASIA Group”

- Cameron McRae, Chief Executive Officer of Tarva Investment and former CEO of OT LLC,

“Competitiveness in Central Asia”

- Saha Meyanathan, CEO, EEIBC and Chairman of BCM Education Working Group, “BCM and

Mongolia's Education & Capabilities Agenda”

_________________________________________

Presentation at Discover Mongolia 2015 on 3 September:

- S. Javkhlanbaatar, General Director, Invest Mongolia Agency, “Opportunity to invest in the mining

industry”

_________________________________________

Presentations at BCM Monthly Meeting on 24 August:

- Jennifer Bielman, Country Director, Mercy Corps Mongolia, "Mercy Corps in Mongolia - 15 Years of

Progress"

- Lee Cashell, CEO, APIP, “Overview of the Property Development Market”

- Anthony Woolley, Senior Associate, Hogan Lovells, “Legislative Update - 2015”

_________________________________________

Mongolia Reports:

- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”

- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform

Priorities (Sep 2015)

- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"

- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"

- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"

- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,

2015, “FDI Environment in Mongolia”

- Hogan Lovells, “Law on State Registration of Legal Entities”

_________________________________________

Interviews:

- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More

Effective"

- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)

- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;

- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,

August 20, 2015;

- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV

News, August 20, 2015;

- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview

SOCIAL NETWORKS

The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.

Keep up to date on the latest business deals in Mongolia and how the climate for investment is

improving each day with BCM.

Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the

latest announcements and comment on events carried in the BCM NewsWire with the community.

Hear breaking news and announcements as they happen when you follow BCM on Twitter at

https://twitter.com/bcmongolia.

The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's

Mongolian-speaking audience and members. Please click on the below link to follow us on our new

LinkedIn page.

http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.

Social stats: BCM now has 11,050 fans on our Facebook fans page, 1,957 connections on

LinkedIn network, and 1,947 followers on Twitter.

According to Google Analytics report as of 19 January, the daily web traffic to BCM website was 42

visitors with 70 sessions. 84% were from Mongolia, 3% from the Canada and 3% from Singapore.

_________________________________________

BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column

featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and

proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study

Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia

Technology Innovations."

_________________________________________

The BCM NewsWire is used as source for the "MM Today" News program in English aired by Mongolia

National Broadcasting (MNB) on Fridays at 19:00.

_________________________________________

BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.

From January 2013 to October 2015 we posted a total of 103 news items related to BCM activities,

economic and business related updates.

_________________________________________

The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos

from BCM events.

According to Google Analytics report as of January 19, 2016, the daily web traffic to BCM website

was 42 visitors with 70 sessions. 84% are from Mongolia, 3% from the Canada and 3% from Singapore.

As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy

newly introduced interactive features such as: edit your organization's profile information; post

vacancy notices from your organization; post cooperation proposals with other members or deals

you would like to offer to other BCM members; and start a forum and ask questions directly on the

web platform. Of course you can also visit our website for news information, interviews, event

photos, videos and announcements regarding BCM.

ECONOMIC INDICATORS

INFLATION

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

Year 2007 *15.1% [source: NSOM]

Year 2008 *22.1% [source: NSOM]

Year 2009 *4.2% [source: NSOM]

Year 2010 *13.0% [source: NSOM]

Year 2011 *10.2% [source: NSOM]

Year 2012 *14.0% [source: NSOM]

Year 2013 *12.5% [source: NSOM]

Year 2014 *11.0% [source: NSOM]

December 31, 2015 *1.9% [source: NSOM]

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

Note: 1.1% y-o-y; 4.8% Core, Ulaanbaatar City, December 31, 2015

CENTRAL BANK POLICY LOAN RATE

December 31, 2008 9.75% [source: IMF]

March 11, 2009 14.00% [source: IMF]

May 12, 2009 12.75% [source: IMF]

June 12, 2009 11.50% [source: IMF]

September 30, 2009 10.00% [source: IMF]

May 12, 2010 11.00% [source: IMF]

April 28, 2011 11.50% [source: IMF]

August 25, 2011 11.75% [source: IMF]

October 25, 2011 12.25% [source: IMF]

March 19, 2012 12.75% [source: Mongol Bank]

April 18, 2012 13.25% [source: Mongol Bank]

January 25, 2013 12.50% [source: Mongol Bank]

April 8, 2013 11.50% [source: Mongol Bank]

June 25, 2013 10.50% [source: Mongol Bank]

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

January 14, 2015 13.00% {source: Mongol Bank}

January 14, 2016 12.00% [source: Mongol Bank]

CURRENCY RATES – 21 January 2016

Currency Rate

US dollar USD 2,007.10

Euro EUR 2,198.44

Japanese yen JPY 17.19

British pound GBP 2,843.26

Hong Kong dollar HKD 256.73

Chinese Yuan CNY 305.06

Russian Ruble RUB 23.91

South Korean won KRW 1.65