BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 318 – March 28, 2014

NEWS HIGHLIGHTS:

Business

Rio Tinto faces further setbacks at Oyu Tolgoi;

Rio names Mongolia as 4th largest tax recipient;

SouthGobi warns of debt default; shares tank;

SouthGobi decides against dry coal handling unit;

Centerra Gold prepared to spend up to USD 370 million at Gatsuurt;

Nikken Sekkei Group to design 68-story building in UB business district;

Printer toner factory opens;

Pandrol complains of unfair bidding for new railway project;

Kincora announces completion of USD 4.48 million private placement;

South African official explores cooperation opportunities at Shivee Ovoo;

Imax signs two-theater deal in Mongolia;

Mongolian Railway appoints CEO;

State University of Agriculture to cooperate with Missouri State University;

China-Mongolia Business Council to launch in April;

Khan Bank provides finance lessons for youth;

PetroChina's healthy embrace of market reality;

Sinopec speeds up shale gas development.

Economy

Mongolia to spend MNT 1 trillion on industrial production;

Volume of gold sales grows 8-fold y-o-y;

Coal miners lay off workers amid difficult market climate;

New Customs system to launch Tuesday;

Ulaanbaatar to issue MNT 370 billion bond;

New sewage plant for Arkhangai;

Mongolian investors hope good times will roll again;

Mongolia puts ger shantytowns on the map;

Nigel Finch joins effort to strengthen Australia-Mongolia ties;

Australia to grant more scholarships;

NGO staff receives scholarships to mark end of 2-year development program;

Zorig Foundation to launch Young Scholars Program;

EPCRC released 2013 index for competitiveness among provinces;

EU to provide EUR 6.5bn to Mongolia and 11 other Asian nations;

Copper rebounds from recent sell-off;

Pollution killed 7 million people worldwide in 2012, report finds;

Guessing China's plans for growth;

Yuan's decline raises concerns over currency war.

Politics

Parliament adjusts timetable for spring session;

New state-owned company replaces ministries' construction departments;

Former premier submits bill on trade regulations;

Roads minister submits draft resolution for Roads Policy;

Blair meets with Altankhuyag for private talks;

Australian, Mongolian governments announce Mongolian mining partnership;

China, Mongolia vow to cement party-to-party exchanges;

Parliamentary Offices of Mongolia and Laos to cooperate;

Kuwaiti ambassador visits Bayan-Ulgii province in Mongolia;

Albania, Mongolia to strengthen relations;

Ministry extends NGO management at Khustai;

Allens reviews regulations for investment agreements under Investment Law;

Mongolian Kakuryu promoted to yokozuna, sumo’s highest rank;

Malaysia premier releases statement on fate of MH370.

ECONOMIC INDICATORS

MSE Top 20 Index by market Capitalization;

Foreign-listed Companies with Mongolian Assets;

Supermarket Price Comparison – March 2014;

Inflation;

Central bank policy rate;

Currency rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank

International SOS

Invest Mongolia Agency

Mongolian Economy Magazine

Oxford Business Group

BCM MEETING RECAP

The BCM meeting on 24 March with Vice Chairman Randolph Koppa in the chair was attended by 110

members and invited guests. Koppa noted that many of those who attended were dividing their

time with the day's Mongolian Economic Forum. ―The theme this year is to work for the initiative to

move forward to 2040 to develop a strategy and priorities to develop Mongolia among a number of

scenarios,‖ he said, referencing the three scenarios presented by the World Economic Forum at the

event.

Executive Director Jim Dwyer reported on the happenings at BCM's working groups, including what

looks to be imminent additional comments from the Legislative Working Group on the new draft of

Amendments to the Minerals Law possibly soon after the opening of the spring session of Parliament

on April and the appointment of Khulan, Tax Manager at Oyu Tolgoi LLC, as co-chair of the Tax

Working Group. Khulan is replacing Arthur Cookson who is stepping down to focus on his work with

Rio Tinto PLC. Dwyer also reported on a meeting of the Capital Markets Working Group, where

Mongolia Growth Group's new chief executive officer, Paul Byrne, spoke on the new directions of his

company. The CEO of Wolf Petroleum Ltd. also presented that evening to provide an overview on

the oil explorer's activities.

Also during the evening, BCM Chairman Bayanjargal Byambasaikhan signed a memorandum of

understanding with the Invest Mongolia Agency head Sereeter Javkhlanbaatar. ―We have just signed

an MoU for you, please utilize the opportunity for both BCM and Investment Mongolia,‖ said

Javklhanbaatar. ―We will be your partner, and we will do our best.‖

The following new BCM members were introduced:

1. Mongol Bridge Group is a union of six individual companies that together dedicate their full

efforts in bringing global practices and know-how to the Mongolian market, each in their respective

fields. By reaching this goals Mongol Bridge hopes to bring to Mongolia the most efficient and

effective methods in their respective fields, backed by flexible management, excellent executive

teams, and young leadership.

Member company activities encompass business consulting, real estate, natural rehabilitation, food

and beverages, and mining.

2. Resource Mincom LLC is a foreign invested company established in October 2010. The company

runs fluorspar enrichment operations able to produce 20,000 to 25,000 tons of enriched fluorspar a

year at Batnorov Soum, Khentii Aimag.

3. Terra Energy LLC, since its establishment in 2011 as the 100 percent-owned Mongolian subsidiary

of Guildford Coal, has aimed to support local communities through its preference of employing a

local workforce and contracting local suppliers while focusing on the development of sustainable

cooperation with local communities.

Terra Energy is currently developing two projects in Mongolia, one in Dundgobi Aimag and another

Umnugobi Aimag. The Umnugobi project is a large open-cut coking and thermal coal prospect that

is located 60 kilometers from the Chinese border and is adjacent to two operating coal mines,

SouthGobi Sands LLC and Mongolyn Alt (MAK) Group. The project in Umnugobi is now almost ready

for mining and the export of high-quality coal.

John Grogan, chairman of the Mongolian-British Chamber of Commerce, presented first, discussing

British links with Mongolia. ―Last year we celebrated 50 years since Britain became the first country

to recognize Mongolia,‖ he said. ―Obviously relations have developed over the years,‖ he said,

including the contract between the Mongolian Stock Exchange and London Stock Exchange, as well

as partnerships in manufacturing and architectural design.

Grogan noted the importance that the Tavan Tolgoi and Oyu Tolgoi projects play in the economy,

noting that it was important that Mongolia carefully balance interests. He also lauded Mongolia for

its forward visions in renewable energy generation.

The second speakers of the evening were E. Enerelt, investment officer for Asian Development

Bank, and Ts. Batbayar, director of the concession division at the Ministry of Economic

Development, where they discussed the development of Mongolia's private-public partnership (PPP)

agreements. Enerelt began by explaining the purpose of PPPs, including the sharing of knowhow and

resources. ―The main objective is to provide public good while maximizing asset utilization,‖ said

Batbayar, adding, ―Contract arrangements between public and private entities through skills,

assets, and financing shares the risks and rewards.‖

Batbayar introduced how Mongolia was taking advantage of PPPs, mainly through the use of

concession agreements where ownership is held by the private entities during development and

transferred to the government upon completion or at a future date. Other options were agreements

for leasing, management, and contracted services. Mongolia first began utilizing PPP agreements in

2009 by contracting out technical assistance and drafting the Concession Law, he said. Since then,

Mongolia has considered 121 concession proposals, with 51 still under consideration by the Cabinet

Secretariat. Thus far, only two are coming close to being enacted, he said.

The final speaker of the evening was Thierry Plaisant, general director for Areva Mongol LLC. He

began by recounting the French uranium and renewable energy firm's history in Mongolia, beginning

with the establishment of COGEGOBI LLC in 1996. Then, in 2003, Areva acquired the Dulaan Uul

uranium deposit, followed by the Zoovch Ovo deposit in 2009. The Dulaan Uul and Zoovh Ovoo

resources were later registered by the Mineral Resources Authority at 6,259 and 57,700 tons of

uranium, respectively.

―We have been here a long time—15 years—and expect to be here for 30, 40 years more,‖ said

Plaisant.

Areva has taken its responsibility of community relations as a great priority, he said, including MNT

1 billion in social spending and a three-year community development plan.

BUSINESS

RIO TINTO FACES FURTHER SETBACKS AT OYU TOLGOI

Rio Tinto PLC‘s expansion of the vast Oyu Tolgoi copper mine could be further delayed because a

deadline to secure project finance may be missed, according to the company that owns the

Mongolian project.

Rio and the Mongolian government are trying to iron out disagreements over bearing some

development costs of the mine, one of the largest global copper deposits to come on stream this

decade and a crucial plank in Rio‘s growth plans. However Turquoise Hill, the Rio-controlled

company that owns 66 per cent of Oyu Tolgoi, said these ―shareholder issues‖ might not be resolved

until a feasibility study for the mine‘s growth is completed, expected in the first half of the year.

That puts Rio at risk of missing a 31 March deadline to close project finance agreements with

commercial banks as well as with two multilateral development banks.

In a further setback, Turquoise Hill also cut its estimates of output this year from the part of the

mine already operating by 15,000 tons, after ramp-up problems in recent weeks. Oyu Tolgoi is now

expected to produce between 135,000 and 160,000 tons of copper in concentrates this year,

compared with a previous forecast of 150,000 to 175,000 tons. Turquoise Hill also trimmed its

estimate for output of gold, a byproduct at the mine.

Rio has said repeatedly it would rather take time to strike the right deal for a project that will last

for many years. ―It‘s a big project, it‘s a complex project, it is a very long-life project, you need to

get these things right up front,‖ said Sam Walsh, chief executive, last month.

But Walsh warned Mongolia on the project finance talks, saying: ―The government is aware of the

deadlines and the importance of the project finance. These agreements are in place. It would be a

backward step if we had to renegotiate those.‖

Source: Financial Times

RIO NAMES MONGOLIA AS 4TH LARGEST TAX RECIPIENT

Mongolia was the fourth largest recipient of tax payments from Rio Tinto PLC in 2013, out of any of

the countries it operated in 2013 that year.

Rio Tinto reported USD 220 million in taxes and fees paid to Mongolia in 2013, out of USD 9.4 billion

paid globally for the year. Oyu Tolgoi copper mine operator Rio Tinto voluntarily reported individual

payments of over USD 1 million made to governments.

―This report demonstrates the significant contribution Rio Tinto makes to public finances in the

countries where it operates around the globe,‖ said Rio Tinto Chief Financial Officer Chris Lynch.

―We are a strong advocate for global tax transparency and this is reflected through this report and

our founding membership of the Extractive Industries Transparency Initiative".

Australia received the most in tax from Rio, with more than USD 5.7 billion paid last year, followed

by Canada (USD 523 million), and Chile (USD 380 million).

Source: Info Mongolia

SOUTHGOBI WARNS OF DEBT DEFAULT; SHARES TANK

Canada's SouthGobi Resources Ltd. said it could default on a debt repayment and was looking to

raise money, sending its shares down as much as 29 percent in afternoon trading.

The company, controlled by Rio Tinto PLC through its unit Turquoise Hill Resources Ltd., also

reported a bigger quarterly loss, mainly due to impairment charges. A delay in securing additional

financing could result in a default of USD 250 million debentures held by China Investment Corp,

SouthGobi said in a statement on Monday. SouthGobi shares plunged to 52 Canadian cents in

afternoon trading, making it one of the biggest percentage losers on the Toronto Stock Exchange.

The company had working capital—the difference between current assets and liabilities—of USD

41.7 million as of 31 December, compared with USD 120.4 million a year earlier. As of 24 March, the

company had USD 10 million cash on hand. SouthGobi said it expects liquidity problems to continue

and margins to remain weak as coal prices are likely to stay anemic in China this year, echoing U.S.

rivals such as Alpha Natural Resources and Arch Coal Inc. Producers of metallurgical, or

steelmaking, coal have been hit by weak demand amid slowing growth in China.

SouthGobi is being investigated by Mongolia's Independent Authority Against Corruption (IAAC) and

State Investigation Office (SIA) for possible breaches of anti-corruption, money laundering and

taxation laws. The company said on Monday it had received a notice from the Mongolian authorities

that might lead to criminal actions against three of its former employees and SouthGobi could be

held liable as "civil defendant."

The company's net loss widened to USD 138.7 million, or 75 cents per share, in the fourth quarter

ended December 31, from USD 56.6 million, or 31 cents per share, a year earlier. SouthGobi took

impairment losses of USD 106.8 million in the quarter. The company reported revenue of USD 32.5

million. SouthGobi reported revenue of USD 1.2 million in the year-earlier quarter, hurt by

suspension of production at its flagship Ovoot Tolgoi mine in Mongolia.

Source: Reuters

SOUTHGOBI DECIDES AGAINST DRY COAL HANDLING UNIT

Mongolia-focused SouthGobi Resources Ltd. said it is now looking for new financing and after review

will not proceed with a dry coal handling facility (DCHF) at the Ovoot Tolgoi semi-soft coking coal

mine, as it takes a USD 66.9 million charge related to the decision.

The partly constructed DCHF facility will no longer be part of the company's product strategy for

the foreseeable future as it seeks to minimize costs. SouthGobi reported a fall in product pricing for

its coals, which are exported to China, as it sold more standard grade semi-soft coking coal rather

than its premium grade into a weaker market and booked a USD 138.7 million loss for the fourth

quarter, compared with a USD 56.6 million loss for the same period in 2012.

"The Mongolian coal industry faced strong competition from seaborne and domestic Chinese coal

producers. These factors led to both lower prices and a reduction in market share of 16% for

Mongolian coal producers in Chinese coking coal imports in 2013 compared to 2012," it said.

The first phase of the DCHF project comprised a coal rotary breaker intended to reduce screening

costs and improve yield recoveries. This equipment was successfully commissioned in February 2012

and operated briefly, but was not used further since mining activities that were halted later in 2012

recommenced in March 2013. The second phase of the DCHF project included the installation of dry

air separation modules and covered load out conveyors with fan stackers to take processed coals to

stockpiles and enable more efficient blending.

As coal markets improve and production from Ovoot Tolgoi increases in line with anticipated

capacity of nine million tons a year of run-of-mine production, the DCHF will be reviewed again,

SouthGobi said. Further, SouthGobi said it recorded a USD 30.2 million impairment loss in the fourth

quarter, related to USD 33.6 million in prepaid toll washing fees to Ejinaqi Jinda Coal Industry Co.

Source: Platts

CENTERRA GOLD PREPARED TO SPEND UP TO USD 370 MILLION AT GATSUURT

Centerra Gold Inc. is prepared to invest up to another USD 320 million into the Gatsuurt god deposit

once government permission arrives, said Centerra's vice president at the Prospectors and

Developers Association of Canada (PDAC) conference in Toronto, Canada in March.

―Confidence in the mining industry of Mongolia has been recovering,‖ said Jeff Parr, who is also

Centerra's chief financial officer. ―We have invested USD 50 million in the Gatsuurt deposit. In the

future, we are ready to make additional investment of USD 270-320 million.‖

The government banned exploration at Gatsuurt after the passage of the so-called 2009 Long-Name

Law that banned exploration and mining activities at areas near forests and head waters. Miners

await a controversial amendment to the law to learn the final decision on where mining activities

will be allowed.

Source: Zuunii Medee

NIKKEN SEKKEI GROUP TO DESIGN 68-STORY BUILDING IN UB BUSINESS DISTRICT

Mongolia's Mon Uran LLC 11 March signed a letter of agreement with Japanese architect Nikken

Sekkei Group for the construction of what would be Ulaanbaatar's largest tower during the MIPIM

international real estate show held in Cannes, France.

Dubbed the Tower Project, the building would be Mongolia‘s first ever 68-story building in

Ulaanbaatar city. Blueprints show plans to develop a 110,000 square-meter high-rise building

situated 1.1 hectares south of the Children‘s Palace. The 250-meter tower would feature

earthquake resistance, an observatory deck at the top floors, residential area for sale, serviced

apartments, a five-star hotel, commercial office and retail space, indoor and outdoor parking.

―We agreed that MIPIM would be an ideal international platform for us to sign our agreement and

we intend to showcase the project here next year,‖ said Mon Uran Chief Executive Officer B.

Oyunchimeg. ―We chose Nikken Sekkei because this project requires high quality and vision, and we

believe that they have the right credentials to deliver such a design,‖ she added.

The project is scheduled to begin in 2014 and complete December 2018.

Source: Info Mongolia

PRINTER TONER FACTORY OPENS

The Mongolian company Tugs Dardas has opened Mongolia's first laser printer and copy machine

toner factory.

The factory has the capacity to produce more than 30 types of toner for some 50 types of printers,

such as HP, Canon, Lenovo, Samsung, and XEROX. The factory has two production lines with 16

workers and will produce 300 printer toners per day, with production to utilize imported parts.

Organizations such as mobile telecoms company Unitel and the SME Support Fund have committed

to using Tugs Dardas' products.

Source: Unuudur

PANDROL COMPLAINS OF UNFAIR BIDDING FOR NEW RAILWAY PROJECT

The British railway part manufacturer Pandrol has complained of an unfair bidding process for

Mongolia's railway construction process.

Pandrol has complained that Samsung C&T's decision to partner with Germany's Vossloh for railway

fastening and sleeper parts for the construction of 267 kilometers of rail was unfair because

Vossloh's parts have not been tested in Mongolia yet, which is a requirement for its use. A working

group established by the Road and Transportation Ministry has been tasked with investigating the

complaint.

Source: Undesnii Shuudan

KINCORA ANNOUNCES COMPLETION OF USD 4.48 MILLION PRIVATE PLACEMENT

Kincora Copper Ltd. announced the completion of an oversubscribed CAD 5 million (USD 4.48

million) private placement.

Funds from the capital raising will be used for high priority drilling, and other exploration activities,

at our flagship and wholly owned Bronze Fox license in the upcoming 2014 field season. Kincora has

closed the first tranche of financing for gross proceeds of CAD 4.575 million through the issuance of

91.5 million units at a price of CAD 0.05 per unit. Each unit consists of one common share and one

common share purchase warrant. Each whole warrant entitles the holder to acquire one common

share of Kincora for a period of two years, expiring 24 March 2016 at a price of CAD 0.105 per

share.

"Kincora attracted significant demand for the Offering, which has been well oversubscribed,

illustrating strong interest and support for our proposed field season activities at Bronze Fox,‖ said

Sam Spring, Kincora president and chief executive. He added, ―The Company‘s focus is now

mobilizing field season activities and advancing a number of corporate initiatives. Drilling, and

other follow up activities, are planned shortly at Bronze Fox based on extremely promising previous

drill results, new geophysical and other 'long lead' time / technical activities undertaken in 2013.‖

Kincora paid finder‘s fees of USD 190,642 for the first tranche of the offering, with efforts led by

the Private Office SA and Resource Investment Capital Limited (ResCap), and assisted by SkyPath

Partners LLC, Pareto Securities Limited and The Mongolian Investment Banking Group LLC (MIBG).

The company proposes to issue further approximately 8.5 million units for proceeds of

approximately USD 425,000 to Khayyam Minerals Ltd.

Source: Kincora Copper Ltd.

SOUTH AFRICAN OFFICIAL EXPLORES COOPERATION OPPORTUNITIES AT SHIVEE OVOO

A South African delegation led by Godfrey Oliphant, the deputy minister of the country's mineral

resources, visited the Shivee Ovoo coal mine last week on Thursday.

The delegation inspected the mine's operations and capacity and learned the long-term goals for

the mine. Executive director of the mine O. Otgonbaatar met with the Oliphant to exchange views

on ways to introduce to Mongolia technology being implemented in South Africa and how their two

nations could cooperate. The South African official said that his visit was the start of fruitful

cooperation.

The mine, located 260 kilometers from the city, is Mongolia‘s largest brown coal deposit providing

30 percent of domestic coal demand and 70 percent of coal demand of energy production for the

central region.

Source: Montsame

IMAX SIGNS TWO-THEATER DEAL IN MONGOLIA

IMAX has signed a deal with New Tour Safaris Co. to bring two of its screens, and super-sized

Hollywood blockbuster movies, to Mongolia. The operator of the Urgoo Cinemas chain has inked a

deal to install two IMAX theaters in new construction projects in Ulaanbaatar, the nation‘s capital.

"With the rapid expansion of our international theater network and an increased number of local-

language films, we are now more globally diversified than ever and today‘s agreement underscores

our continued focus on globalization," Andrew Cripps, president of IMAX EMEA, who is charged with

the company's expansion beyond North America, said Friday in a statement.

The Mongolian deal gets IMAX into 58 countries and follows the large format exhibitor expanding in

Asia, and especially China, with Hollywood and local-language movie titles. Urgoo Cinemas

currently has seven screens in Mongolia, and has plans to bring seven to ten new multiplex cinemas

to the country within five years, while including IMAX screens.

Source: Hollywood Reporter

MONGOLIAN RAILWAY APPOINTS CEO

Mongolian Railway's governing board last week Friday appointed P. Batsaikhan as chief executive

officer. From 2006 to 2008 Batsaikhan served as state secretary to the Road and Tourism Ministry.

He also has worked as director of railroad projects for Millennium Challenge Corp. in Mongolia.

Source: Zuunii Medee

STATE UNIVERSITY OF AGRICULTURE TO COOPERATE WITH MISSOURI STATE UNIVERSITY

Representatives of the Mongolian State University of Agriculture (MSUA) and the United States'

Missouri State University (MSU) Monday signed a cooperation agreement for the launching of a

student and cultural exchange program.

Signing the agreement Monday was Kh. Altantsetseg, deputy director of the MSUA department of

international cooperation, and Stephen Roninette, the MSU vice president for international

programs. The universities agreed to roll out a joint bachelor‘s degree program utilizing students

could either study at MSUA for three years and then complete a final year at MSU or study at MSUA

for two years, MSU for one year, and then return to MSUA for a final year.

Source: Montsame

CHINA-MONGOLIA BUSINESS COUNCIL TO LAUNCH IN APRIL

The first meeting of a China-Mongolia Business Council will be held 4 April at the Mongolian National

Chamber of Commerce and Industry (MNCCI).

The council's main objectives are to widen Mongolia-China trade and economic cooperation, expand

the opportunities for Mongolian businessmen in the Chinese market, attract Mongolian enterprises

to joint ventures with Chinese companies, help Mongolian businessmen collaborate with China‘s

state-run and private organizations, and protect the legal interests and rights of Mongolian entities.

Members will elect council‘s members at the 4 April meeting.

Source: Montsame

KHAN BANK PROVIDES FINANCE LESSONS FOR YOUTHS

Khan Bank LLC organized multiple programs to broaden the financial education of young people

during Global Boney Week.

Khan Bank joined the Global Money Week program with the launch of two major programs for pupils

between fifth and seventh grade at 9 districts and 21 provinces. Khan Bank provided lessons to

approximately 5,700 students on the topics of money, the value of money, wise spending, saving

money, and how banks operate.

Lessons were also taught at Gegeerel, an unofficial education center in Sukhbaatar District for

children from 9 districts who have dropped out of school.

Source: Khan Bank LLC

PETROCHINA'S HEALTHY EMBRACE OF MARKET REALITY

Even China's state energy champions are bending to market realities. But that doesn't mean they

will behave entirely like their Western counterparts.

PetroChina Co. Ltd., the country's largest oil firm by production and the sole producer of petroleum

products from Mongolia, said Thursday that it slashed capital expenditure by 9.6 percent in 2013, a

sign that efficiency has become a priority over blind expansion. That's the first time capex has

declined since the state-owned company listed in 2000. It's budgeting another 7 percent cut this

year. The cuts come after years of bloat.

At its peak in 2012, PetroChina's USD 58 billion in capital expenditures outstripped the cash it

earned from operations by some USD 19 billion. It borrowed to bridge the gap, pushing net debt to

roughly 37 percent of equity that year from near zero in 2007. The company focused only on

growing size and pushed further into loss-making refining and chemicals, besides its core

exploration and production activities. Such profligacy is hard to continue, even more so with Brent

crude prices slumping 15 percent in the last two years. Western oil majors have responded by

scaling back costs and shedding assets. Investors will be glad to see a state-owned Chinese company

doing the same.

Yet PetroChina has much more cutting to do. Its capital expenditure was still 22 percent higher

than Exxon Mobil Corp.'s in 2013, though the Chinese firm produced 7 percent less oil and gas.

PetroChina is cutting in refining, pipelines and retail—everywhere except exploration and

production—unlike some Western majors who are dialing back drilling.

PetroChina is likely acting on Beijing's directives for state firms to be more market-oriented. That's

welcome, as is China latest increase to household natural gas prices this week, which lets the

company pass on costs. The danger for investors is PetroChina's continued tightness with the most

powerful forces in government. Last year, PetroChina was the stage for a corruption scandal linked

to top-level Communist Party infighting. Investors should wait for more signs of reform before

believing that PetroChina is ready to embrace market forces for real.

Source: Wall Street Journal

SINOPEC SPEEDS UP SHALE GAS DEVELOPMENT

Chinese oil company Sinopec Ltd., the company investing into a coal gasification plant in Mongolia,

will put its first shale gas field into commercial operation sooner than expected, aiming for annual

production of 10 billion cubic meters by 2017 as the country seeks to reduce its reliance on

imported oil and gas.

China‘s second-largest oil company is positioning itself as the flag-bearer of a drive to develop more

domestic fuel as the country seeks to mimic the U.S. shale revolution. Sinopec‘s decision could help

China reach its target of producing 6.5 billion cubic meters from shale by 2015, a target that most

analysts had thought could not be met because of disappointing early results.

Sinopec engineers were excited by initial results at wells drilled this year at Fuling, near the

southwestern metropolis of Chongqing. The company plans annual capacity at Fuling to reach 1.8

billion cubic meters by the end of this year, rising to 5 billion cubic meters by 2015, well above its

earlier target of 2 billion cubic meters by next year from all its shale plays. Media reports say it

could spend USD 4 billion on Fuling, a number the company did not confirm. Proceeds from a

planned sale of a 30 percent stake in Sinopec‘s cash cow petrol stations could be ploughed into

shale.

―The new capital from outside investors will be used for adjusting capital structure, further

exploiting shale gas fields, investing in environment and safety, and upgrading quality of oil

products,‖ Chairman Fu Chengyu told reporters in Hong Kong on Monday.

Sinopec, PetroChina Ltd. and Cnooc Group all cut back on capital expenditures in 2013, coming in

under budget for the year and signaling further cuts in 2014, in line with a global trend by oil groups

to reduce capex. PetroChina cut capex by 10 percent in 2013 and plans another 7 percent cut in

2014. ―We expect the CNPC group will be more prudent in its acquisition strategy under the new

management,‖ wrote Moody‘s analyst Kai Hu.

Sinopec cut expected capital expenditures by 4 percent to CNY 161.6 billion (USD $25.96 billion)

this year, after coming in 7 percent under budget last year.

Source: Financial Times

ECONOMY

MONGOLIA TO SPEND MNT 1 TRILLION ON INDUSTRIAL PRODUCTION

Prime Minister Norov Altankhuyag at the Mongolian Economic Forum held this week noted the

importance of domestic production in Mongolia and how the government initiative to finance

Mongolian production of end products can help strengthen the economy.

The announcement fit this year's theme, ―Let's Create in Mongolia,‖ which encourages at home-

production in Mongolia for export goods and goods to replace regular imports. He noted that

Mongolia has allotted MNT 1 trillion to help finance start-ups aiming to replace imported goods and

export goods for construction materials, woven clothing, food, and mining.

―The number of end-product manufacturers in Mongolia are too few to count, with Mongolia

importing 88 percent of total consumer goods.‖ said Altankhuyag. ―Meanwhile the total export

estimates for raw materials accounts for over 90 percent. We should fix this system immediately,

otherwise expect an economic dilemma to appear easily.‖

This year's forum was its fifth year and featured a presentation by the World Economic Forum on

three development scenarios for Mongolia that were first introduced at Davos.

Source: Info Mongolia

VOLUME OF GOLD SALES GROWS 8-FOLD Y-O-Y

The Bank Mongolia reported that the volume of gold it purchased in February was eight times

greater than the year before in an economic report. Mongolia sold 1,114.5 kilograms of gold in

February compared with138.6 kilograms last year. The volume of January gold purchases was 255.8

kg.

Source: Zuunii Medee

COAL MINERS LAY OFF WORKERS AMID DIFFICULT MARKET CLIMATE

State-owned miners Baganuur and Shivee Ovoo have laid off over 100 workers each due to market

weakness for coal.

Mongolia had more than 50 coal mining companies in 2012, but saw only 5 retain operations last

year. This year, only Mongolyn Alt Group (MAK) exported a small volume of coal while others

curtailed production, instead investing in the project with ground work. MAK gave employees long

holidays with salary rather than lay off workers. Energy Resource LLC was the only company to

export washed coal last year, but only last week lifted a suspension of production put in place June

last year. Energy Resources employed 2,400 at peak production, but only retained workers with

partial pay during the period of suspended operations.

MAK, Energy Resource, SouthGobi Sands LLC, and Shenhua MAK Nariin Sukhait LLC—the major coal

miners in the Mongolian coal market—saw only small profits last year from small volumes of exports

while companies such as Mongolia Energy Corp. (MEC) Ltd. cut out export completely. MEC currently

had 70 employees at the Khushuut mine who received salaries during the operations suspension.

Khushuut operations are expected to resume in July.

B. Gulguu, a specialist for MEC, said the losses seen while operating were lesser than if they were

to suspend all activities. MEC has nearly finished its dry enrichment factory and is building washing

and enrichment factory in China.

Source: Undesnii Shuudan

NEW CUSTOMS SYSTEM TO LAUNCH TUESDAY

Mongolia is preparing to reform its customs system with a new operating structure to launch 1 April,

said Cabinet Secretariat Minister Ch. Saikhanbileg at the Border Point Reform meeting 19 March.

Government established two working groups tasked with identifying ways to reduce the number of

special permissions required by government. Mongolia has 46 border ports, 9 of which operate 24-7.

However, 60 percent of border ports lack the capacity to serve passengers and 30 percent do not

have any check points. Mongolia's Custom Law requires that the amount of paperwork that must be

presented at the border be reduced from 11 to 13 documents to two to four.

Another law expected to create greater efficiency in Customs, the Specialized Inspection Law bill,

will be discussed at the spring session of Parliament.

Source: Undesnii Shuudan

ULAANBAATAR TO ISSUE MNT 370 BILLION BOND

Ulaanbaatar Mayor Erdene Bat-Uul on March 26 announced the decision to release a MNT 370 billion

bond during a meeting with the chairman of the Mongolian-British Chamber of Commerce

Bat-Uul received an invitation from Mongolian-British Chamber of Commerce Chairman John Grogan

to discuss the Mongolian Investment Summit conference to be held in London from April 29-May 2.

On the agenda for the conference are discussions for bringing accounting to the international level,

creating consistencies between Mongolian and international law, and creating a favorable

investment environment. They also discussed a bond offering that city officials have worked on for

a year for the Mongolian exchange. The Ulaanbaatar City Council is scheduled to discuss the bond in

April before a finished plan is submitted to the city cabinet.

―I will be attending the upcoming Forum in London myself and hope fruitful collaboration with you,

particularly in investment and bond issues,‖ said Bat-Uul.

Source: Info Mongolia

NEW SEWAGE PLANT FOR ARKHANGAI

A sewage plant is under development for construction 8 kilometers from Tsetserleg Soum, Arkhangai

Aimag. Some MNT 8 billion has been allotted for the plant. Officials said construction was expected

to start this year, with commissioning expected for 2015.

Source: Montsame

MONGOLIAN INVESTORS HOPE GOOD TIMES WILL ROLL AGAIN

Mongolia does not attract the same amount of foreign investment as it used to and many investors

have cut their losses and left. But some high-profile executives are standing their ground with the

expectation that the good old days will return soon.

"There's a lot of money that needs to come into Mongolia, and it's not going to come in by itself,"

says Cameron McRae, who took on the role of executive chairman at Ulaanbaatar-based investment

and advisory firm SkyPath Partners after nearly three years as the country manager for Rio Tinto

PLC in Mongolia, where he headed the giant USD 6.5 billion Oyu Tolgoi copper-gold mine.

McRae has spent much of his career in Mongolia as a peacemaker managing the fraught relations

between Rio Tinto and the government. He is also advising Kincora Copper, which had to explain to

investors a CAD 7 million write-down because of the canceled licenses. He thinks the Mongolian

government understands investors' gripes, however, and it is doing its best to build the kind of

environment required to flourish.

McRae is not alone in his optimism about Mongolia. Property development veteran Paul Byrne is

chief executive officer of the commercial real estate-focused Mongolia Growth Group Ltd. His

resume boasts eight years leading commercial real estate development activities for the USD 3.2

billion Hong Kong International Airport and client representative to the New York Port Authority for

reconstruction of the World Trade Center. While the USD 80 million that Byrne says MGG invested

pales in comparison to the multi-billion-dollar projects and company portfolios he's worked with in

the past, he sees more growth potential in sheer scale here. The Western market "doesn't see step

changes like emerging markets," says Byrne.

Meanwhile McRae intends to help investors learn how they can participate in the massive

reconstruction effort, as well as other basic societal needs missing in the more remote corners of

the world's most sparsely populated country. Mongolian Prime Minister Norov Altankhuyag has

ordered that USD 230 million of a USD 1.5 billion sovereign bond issued in 2012 be used to finance

the establishment of at-home industries for downstream processing of the minerals mined here, as

well as agriculture, light industry and the production of materials for home and building

construction. And that's just where the country should be headed, says Byrne.

"Sometimes what you see in emerging markets is, until you get enough critical mass on the bones,

the peaks and troughs are very big," says Byrne while recalling his experience with economic crises

throughout Asia. "Once you have a bit more meat on the bones, the peaks and troughs are less."

Source: BNE

MONGOLIA PUTS GER SHANTYTOWNS ON THE MAP

Gers have been an iconic part of Mongolian nomadic culture for centuries. These white, mobile

tents have been home to generations of Mongolian warriors and herders, through the ebb and flow

of the nation‘s fortunes since the time of Genghis Khan. Perfectly suited to a nomadic lifestyle, gers

were never meant to serve as housing for urban residents. Yet today they have become the symbol

of Ulaanbaatar‘s growing slums, the ger districts.

A new city master plan approved by Parliament in February 2013 sets a first ever framework for the

ger districts upgrade, bundling them up in six sub-centers to be equipped with the necessary

infrastructure to give residents access to basic services. When the black smokes coming out of the

gers‘ stoves started contaminating the whole city, the government scrambled to approve relocation

schemes based on construction developments and cheap mortgages. Yet these programs largely fell

short as most ger residents simply could not afford them.

―When you upgrade poor urban areas, the best approach is to redevelop on site engaging with local

communities, because their network is there, as opposed to force people to move far away,‖ Asian

Development Bank (ADB)‘s urban development specialist Arnaud Heckmann observes.

The ADB and municipality have drafted a USD 320 million program to bring basic infrastructure to

the six sub-centers. Private developers are already negotiating deals with residents asking them to

swap their land plots for newly built apartments in the area. However, the idea of living in walled,

permanent apartments raises eyebrows for those who spent their entire lives in gers. Also, trust in

authorities is extremely low. That‘s why entire blocks belonging to the Bayankshoshuu and Selbe

sub-centers, the first two to be upgraded, still appear reluctant to agree to any sort of land swap

agreement.

Gers remain one of the most fundamental traditions of Mongolian unique nomadic culture, and still

provide home of almost half of Mongolians nationally today. Now that Ulaanbaatar‘s gers are on the

map, there is a chance that they can become the link between an ancient nomadic lifestyle and

modern-day living, without necessarily standing for poverty and deprivation.

Source: The Diplomat

NIGEL FINCH JOINS EFFORT TO STRENGTHEN AUSTRALIA-MONGOLIA TIES

Resource-rich and strategically located between China and Russia, Mongolia is the world‘s most

sparsely populated country, with 2.8 million people spread over an area almost as big as

Queensland, Australia. For most of the 20th century, Mongolia was a satellite state of the former

Soviet Union with a largely agrarian and centrally-planned economy. However, with the collapse of

Communism and a series of structural reforms in the 1990s, the country is now an emerging

democracy with one of the fastest-growing economies in the world.

―Mongolia is at a crossroads in its economic development, with major projects in the mining and

agricultural sectors now underway, and the Mongolians are keen to acquire Australian technology

and knowhow in these crucial areas,‖ said Finch, director of the newly formed Australia Mongolia

Business Council and associate dean for undergraduates at the University of Sydney's Business

School.

He went on to say that Mongolia is also keen to further strengthen its educational links with

Australia. The Federal Government currently funds 40 places for Mongolian students at Australian

universities.

―There is already a strong relationship between the two countries, and the Australia Mongolia

Business Council will strengthen that relationship further,‖ Finch added.

The new business council will promote business opportunities in Mongolia; encourage mutually

beneficial cooperation between Australian and Mongolian companies; and work to reduce barriers to

trade and investment. It will also represent the interests of the more than 200 Australian companies

already operating in Mongolia. The Council will be chaired by Mark Green, Minter Ellison‘s

international managing partner.

―Australia has had a positive trade relationship with Mongolia for over 40 years, and in recent

times, the level of trade and investment into Mongolia from Australia has risen significantly,‖ said

Green.

Mongolia‘s Ambassador of Mongolia, Ravdan Bold, has welcomed the establishment of the Council

saying that his embassy was ―very supportive of the initiative and looks forward to working with the

Council in its future endeavors.‖

Source: University of Sydney

AUSTRALIA TO GRANT MORE SCHOLARSHIPS

Australia promised to grant more scholarships to Mongolian students during a visit last week by

Foreign Affairs Minister Luvsanvadan Bold.

Bold met with Australia's Minister of Foreign relations in Canberra, J. Bishop, where they agreed to

further development the relationship between their two countries with AUD 20 million in aid over

the next five years for a total of 43 scholarships—five more than last year.

Separately, Bold and his Australian counterpart agreed to continue to negotiate on a work-travel

program for Mongolian youths, and signed a memorandum of understanding for consular services.

Source: Zuunii Medee

NGO STAFF RECEIVES SCHOLARSHIPS TO MARK END OF 2-YEAR DEVELOPMENT PROGRAM

The Mongolian Center for Development Studies (MCDS) held a closing ceremony for the two-year

Local NGO Capacity Building Program at the Local NGO Marketplace Forum held at the Institute of

Finance and Economics (IFE), said the Swiss Agency for Development and Cooperation on its website

Tuesday.

The forum was the first of its kind for 75 local non-government organizations (NGOs), where they

showcased their achievements at the event and 15 organizations were awarded scholarships for a

new Master's Degree of NGO Management. Government representatives from three ministries

attended the event.

―We have big government, but how can we have smart government without NGOs?‖ asked the IFE

Deputy Director and host of the NGO Capacity-Building Program Batjargal. ―This is an opportunity to

show the government how NGOs contribute to national development.‖

A total of 120 organizations took part in the two-year program, learning how to improve their

organizational and management skills through a series of trainings covering subjects such as fiscal

management, strategic management, and leadership. A jury of representatives from IFE and MCDS

awarded members of 15 organizations with scholarships. Recipients came from 10 provinces and

specialized in areas such as government monitoring, environmental protection, and the promotion

of rights for people with disabilities.

The master‘s degree course will be offered either as a Saturday course or for two three-week blocks

per year over an 18-month period. The course will also feature materials from the MCDS that are to

be adapted for the future.

Source: Montsame

ZORIG FOUNDATION TO LAUNCH YOUNG SCHOLARS PROGRAM

The Zorig Foundation is launching its Mongolian Young Scholars Program, which aims to prepare

promising Mongolian high school students for admissions into leading universities abroad.

The Mongolian Young Scholars Program will bring 30 Mongolian High School students on a seven-day

trip in late June this year to visit universities where they will be taught in English by

undergraduates from leading U.S. universities. The undergraduate instructors will present lectures

on the liberal arts, English language composition, and college preparation. The program will also

offer the opportunity for participants to engage with leaders from Mongolian society and to

participate in diverse extracurricular activities.

Student participants are to be recruited through a nationwide application process based on

academic performance and English-language ability.

Source: Zorig Foundation

EPCRC RELEASED 2013 INDEX FOR COMPETITIVENESS AMONG PROVINCES

The Economic Policy and Competitiveness Research Center (EPCRC) in a recently published report

named Orkhon Aimag as the province with the greatest competitiveness in Mongolia.

EPCRC announced the result of its study on the competitiveness of each province, with Orkhon and

the city of Erdenet leading the country. In second place was Umnugobi Aimag, where the Oyu Tolgoi

and Tavan Tolgoi projects are, followed by Darkhan-Uul in third, then Dornogobi Aimag, Tuv Aimag,

Selenge Aimag, Sukhbaatar Aimag, Gobi Sumber Aimag, and Dornod Aimag. Sukhbaatar was noted to

have the most positive business environment while Dundgobi had the least.

Arkhangai took the last spot, one spot behind its position last year. Dundgobi earned 156 points for

last year, for a score of 43, due to the construction of paved roads that lead to Ulaanbaatar.

Arkhangai also earned an additional four points for a score of 41.

The competitiveness index is evaluated based on 180 criteria, grouped into four main

classifications: economics, governance, business environment, and infrastructure. EPCRC said noted

hindrances in the development of some provinces were the absence of a provincial development

policy, infrastructure, and a fair business environment, with priorities listed in that order. Currently

12 provinces are connected with Ulaanbaatar via paved roads. Khuvsgul, Dornod, Umnugobi,

Sukhbaatar, Gobi-Altai and Zavkhan Aimags are all expected to have new roads connecting to the

capital this year, while Bayan Ulgii, Khovd and Uvs will see roads complete next year.

Source: Udriin Sonin

EU TO PROVIDE EUR 6.5 BN TO MONGOLIA AND 11 OTHER ASIAN NATIONS

European Union Commissioner for Development Andris Piebalgs on 20 March announced EUR 6.5

billion in financial support to Asian countries and organizations, including Mongolia, between 2014

and 2020.

Piebalgs made the announcement during a two-day event for a discussion with national and regional

authorities on development. The pledge for funding is a 20 percent increase from that of between

2007 and 2013, and will address issues within these nations that are targeted by Brussels and the

Association of Southeast Asian Nations (ASEAN). Priority issues include social protections,

healthcare, education, job creation, and the better integration of nations into regional and global

economic partnerships.

"The E.U. is committed to cooperation with Asia for the long-run. The future programs are expected

to help achieve the Millennium Development Goals in the region, address climate change, promote

energy efficiency, facilitate business and trade through better market access and support regional

integration, said Piebalgs"

Source: Info Mongolia

COPPER REBOUNDS FROM RECENT SELL-OFF

Copper continued to recover from a recent sharp sell-off, rising more than 2 percent on Tuesday as

traders closed bearish positions.

The red metal, which is used extensively in construction and electrical applications, hit a three-

and-half year low earlier this month on concerns about China, which accounts for 40 percent of

global copper demand. Copper for three-month delivery on the London Metal Exchange rose USD

115 to USD 6,585 a ton on Tuesday, lifted by a flurry of short covering in China and news of an

industrial dispute at a large mine in Chile, the world‘s leading copper producer.

Worries about supply disruption prompted investors to close their bearish positions. The slump in

the prices was sparked by China‘s first corporate bond default in modern history. This triggered a

reassessment of credit risk in the country and in turn raised concerns that financing deals could be

liquidated. Copper is a popular source of collateral for loans in China.

Disruptions to copper mines ran at their lowest level in almost a decade in 2013. This was a key

factor in boosting world mined production by 8 percent to 18 million tons, according to the

International Copper Study Group. While improved maintenance schedules and better planning

played a large part in reducing outages, losses because of strikes, particularly in Chile, were also

reduced.

On the demand side, investment by China‘s grid companies has risen sharply in the first two months

of the year, helping to disband some of the doubts over copper demand in China.

―China‘s grid companies invested a total of Rmb40bn in the first two months of 2014, an increase of

22 per cent year-on-year,‖ said Barclays. ―This growth was achieved despite a high base; in

January-February 2013, investment rose 44 per cent from a soft 2012. Other indicators were also

healthy; grid companies added 11 per cent more transmission lines in the same time period and 61

per cent more transforming capacity,‖ the bank added.

Aurubis, Europe‘s biggest copper smelter, was reported on Monday as saying the recent slump in

copper prices had generated more demand in Europe for its products.

Source: Financial Times

POLLUTION KILLED 7 MILLION PEOPLE WORLDWIDE IN 2012, REPORT FINDS

From taxi tailpipes in Paris to coal-fired stoves in Ulaanbaatar, air pollution claimed 7 million lives

around the world in 2012, according to figures released Tuesday by the World Health Organization

(WHO). More than one-third of those deaths occurred in fast-developing nations of Asia such as

Mongolia, where rates of cardiovascular and pulmonary disease have been soaring.

―The big news is that we have a better understanding of how large a role air pollution plays in

strokes and coronary heart attacks,‖ said Carlos Dora, coordinator of public health and the

environment at WHO. ―Given the astronomical costs, countries need to find a way to prevent these

noncommunicable diseases.‖

Breakneck urbanization in the developing nations of Asia, especially China, is a major force

contributing to the air pollution problem. The WHO report, released in Geneva, coincided on

Tuesday with the publication of a World Bank study in Beijing concerning China‘s drive to urbanize.

The study, issued with the Development Research Center of China‘s State Council, argued that

many of the country‘s cities had been allowed to sprawl wastefully and called for better-planned,

denser cities instead. The bank estimated that China will spend USD 5.3 trillion on urban

infrastructure over the next 15 years, as it plans to move 100 million farmers to cities and to better

integrate another 100 million who already live in urban areas but lack full access to schools and

hospitals. The study said the Chinese government could save USD 1.4 trillion of that cost—or about

15 percent of the country‘s total economic output last year—by planning its cities more rationally.

In China, a big culprit for pollution is coal, which supplies two-thirds of the country‘s energy. A

study published last year in Proceedings of the National Academy of Sciences estimated that people

in northern China, where the air pollution is worst, lived an average of five fewer years than those

in the south. Alarmed by the worsening smog and the rising discontent among urban residents,

Chinese leaders have taken note, promising to reduce reliance on coal and introduce cleaner-

burning motor fuels and more energy-efficient construction methods.

Source: New York Times

GUESSING CHINA'S PLANS FOR GROWTH

Another disappointing economic start for Mongolia's top trade partner this year has investors looking

to Beijing to prime the pump.

HSBC's preliminary manufacturing purchasing managers index fell to 48.1 in March from 48.5 in

February. It is the first reading since the distorting effects of the Lunar New Year and confirms

what many have been denying: China is in slowdown mode again. This is the third year in a row that

the economy has stumbled out of the gate. Each time the government quietly initiates a stimulus

that only becomes fully apparent several months down the road. By year's end, the economy hits

the growth target, albeit at the expense of efforts to reduce the economy's addiction to debt and

infrastructure spending.

It's an object lesson in China's inscrutability that analysts differ wildly on exactly what Beijing might

do. Some say a stimulus is not even needed, given that job creation, a key ingredient in the

Communist Party's survival, is holding up. Others see a stimulus program that is already well under

way. Low interbank interest rates suggest the central bank is allowing liquidity to accumulate. The

recent fall in the yuan provides relief to exporters, while construction projects get a green light.

The question is whether this year Beijing can perform the same tricks. It has left itself room to

again fall back on debt-driven growth, setting the money-supply growth target at 13 percent,

aggressive given that nominal gross-domestic-product growth has fallen below 10 percent the past

two years. Yet debt is like alcohol, in that the more often one drinks, the more servings it takes to

get drunk. Credit efficiency, or the jolt an economy gets per yuan of debt, has fallen substantially

since 2008, according to Nomura calculations. Companies are borrowing more to repay existing

loans, rather than generating new economic activity.

That will keep bankers busy, but it's unclear if it will help everyone else.

Source: Wall Street Journal

YUAN'S DECLINE RAISES CONCERNS OVER CURRENCY WAR

The recent sharp decline in the Chinese currency is threatening to exacerbate China's trade tensions

with the United States and raising concerns over a potential currency war in Asia. Mongolia is also

using yuan currency swaps to bolster its own currency—last week the Bank of Mongolia announced it

would double its currency swap line with China.

China's central bank has intervened since late February to drive down the value of the yuan against

the U.S. dollar by 2.8 percent so far in 2014, almost erasing all of its gains last year and ushering in

a rare period of weakness for a currency which has steadily appreciated over the past decade. The

People's Bank of China argues the depreciation is needed to drive out speculators who were betting

the yuan would continue to rise, according to people with direct knowledge of the central bank's

thinking. Bank officials also contend China's move to allow market forces to play a greater role in

setting the yuan's value has exacerbated the weakness.

Still, officials and politicians in the United States and other Asian nations believe China is

intentionally keeping the yuan below its true market value to give exporters an edge over

competitors in overseas markets. And a persistent drop in the yuan also risks igniting a race among

Asian countries to devalue their currencies.

To be sure, China's trade surplus has narrowed sharply in the past few years, as policy makers tilt

the economy to rely more on consumption and less on exports. And many expect the yuan to

continue its upward climb later this year, fueled by capital inflows. Some observers, though, say

the decline shows China still views export competitiveness as important. Sherrod Brown, a U.S.

Democratic senator and a member of the Senate Finance Committee, on Thursday called on

Congress to pass a law to sanction China. "As the Chinese government continues to push down the

value of the yuan, the urgency for passing our bipartisan bill addressing currency manipulation

rises," Brown said.

Source: Wall Street Journal

POLITICS

PARLIAMENT ADJUSTS TIMETABLE FOR SPRING SESSION

Parliament Speaker Zandaakhuu Enkhbold on Monday issued a decree to reschedule the time for

Parliament to meet during the spring session. Parliament sessions are now scheduled to convene

every Thursday and Friday at 09:00 and at 14:00, beginning 7 April.

Source: Montsame

NEW STATE-OWNED COMPANY REPLACES MINISTRIES' CONSTRUCTION DEPARTMENTS

Mongolia has dissolved the construction management departments within ministries to be replaced

with the state-owned Construction Development Center.

The new agency is responsible for construction projects to be funded by the state for the Ministry of

Education and Science, Ministry of Health, and Ministry of Culture, Sport and Tourism. The agency

will be responsible for establishing regulations for construction as well as policies and standards. It

will also be the office responsible for receiving blueprints for state-funded construction projects.

Source: Unuudur

FORMER PREMIER SUBMITS BILL ON TRADE REGULATIONS

A group of Parliament members have submitted a bill for the regulation of trade in Mongolia.

Former Prime Minister and sitting member of Sukhbaatar Batbold as well as parliamentarians D.

Demberel, Ya. Sodbaatar and J. Enkhbayar said that a lack of information about the commercial

sector was a cause for problems in crafting efficient policy. They proposed that the country

consolidate registration and information on trade to create a database for policy decision making.

The bill comprises 29 clauses, with 9 articles that would regulate domestic and external trade, they

said.

Source: Montsame

ROADS MINISTER SUBMITS DRAFT RESOLUTION FOR ROADS POLICY

Minister of Road and Transportation A. Gansukh Tuesday submitted to Parliament Speaker Z.

Enkhbold a draft resolution for state policy on roads and transportation.

"By having adopted this policy document, I want to deal with such problems and to change

standards of auto road transportation services,‖ said Gansukh.

Gansukh said that Mongolia faces many challenges for its road sector. For example, the unregulated

transport of goods has triggered a black market that has contributed to a number of road accidents

because of poorly prepared drivers. The draft resolution would regulate safety for the transport of

passengers and freight, he said.

Source: Montsame

BLAIR MEETS WITH ALTANKHUYAG FOR PRIVATE TALKS

Former British Prime Minister Tony Blair met with Prime Minister Norov Altankhuyag for private

talks during a visit to Mongolia last week.

In addition to his meeting with the premier, Blair met with members of the opposition Mongolian

People`s Party (MPP).

During his last visit to Mongolia, Blair said he would work with the Mongolian government to help

bring in its intended reforms and offered technical assistance to the Cabinet Secretariat in the form

of his ―delivery unit‖ concept. Blair's visits to Mongolia both last year and this year coincided with

the Kazakh Holiday of Nauriz.

Source: News.mn

AUSTRALIAN, MONGOLIAN GOVERNMENTS ANNOUNCE MONGOLIAN MINING PARTNERSHIP

Australia and Mongolia's governments have announced a new five-year program focused on the

sustainable development of mining in Mongolia.

The USD 20 million program, dubbed The Australia-Mongolia Extractives Program, will use Australian

mining expertise to spread the benefits of the industry across the nation's population. Commenting

on the new partnership, Australian foreign minister Julie Bishop said "releasing Mongolia's fledgling

mining industry from a failed mining tax has greatly benefited the economy.‖

"Australia is pledging to support the Mongolian government with financial assistance and expertise

that will improve governance in the mining sector, opening their economy up to international

investment and development opportunities,‖ she said. "The program will also improve access to

technical and vocational education and training in disadvantaged communities in Mongolia, so they

are better equipped to gain employment in the mining industry."

This is not the first time the Australian government has strengthened its mining ties with Mongolia

via the mining industry. In 2011 former Prime Minister Julie Gillard welcomed Mongolian Prime

Minister Sukhbaatar Batbold to the country. At the time Batbold noted the increased interest of the

Australian mining industry and its involvement in the nation, in particular its provision of expertise

in geological, drilling, mining software, environmental management, financial, legal and training

sectors to develop Mongolia‘s minerals and energy sector. The two heads of state participated in a

number of memorandums to expand Australia‘s mining presence in the country, in particular a

memorandum of understanding on vocational education cooperation designed at helping Mongolia

build its mining work force. They also signed a memorandum of understanding between the

Australian Academy of Science and the Mongolian Academy of Sciences to promote the exchange of

ideas and the review of studies in common interest areas, such as geology.

Source: Ferret.com

CHINA, MONGOLIA VOW TO CEMENT PARTY-TO-PARTY EXCHANGES

A senior leader of the Communist Party of China (CPC), Liu Yunshan, vowed on Thursday to beef up

party-to-party exchanges with Mongolia.

Liu, a member of the Standing Committee of the Political Bureau of the CPC Central Committee,

made the pledge during his meeting with a Mongolian delegation led by Chairman Miegombyn

Enkhbold of the Mongolian People's Party (MPP), also vice chairman of Mongolian Parliament. Liu

said China expected to strengthen political trust with Mongolia, facilitate exchanges between ruling

parties, governments and parliaments, and enhance cooperation in such areas as mineral resources

and infrastructure building. He said China was committed to deepening reforms, in order to push

forward greater development of the country, improve people's livelihood and contribute to world

peace and development.

Enkhbold said he was happy to be visiting China at a time of the 65th anniversary of Mongolia-China

diplomatic ties. He said he had witnessed China's development achievements during his visit, which

will also take him to south China's Guangdong Province. He hopes to further boost party-to-party

exchanges and pragmatic cooperation between both countries through his visit.

Enkhbold is visiting China from 17 to 21 March at the invitation of the International Department of

the CPC Central Committee.

Source: Xinhua

PARLIAMENTARY OFFICES OF MONGOLIA AND LAOS TO COOPERATE

Representatives of Mongolian Parliament and the Laotian National Assembly signed a memorandum

of cooperation for inter-parliamentary cooperation.

B. Boldbaatar, the secretary-general of the Parliamentary Office of Mongolia, and his Laotian

counterpart Ungeev Vutila signed the agreement where each country's parliament agrees to

collaborate at bilateral meetings during forums of the Inter-Parliamentary Union and other

international and regional meetings. Mongolia and Laos have also agreed to exchange delegates to

allow members to participate in experience sharing on the functions of each legislative body and

their bill drafting processes.

Source: Montsame

KUWAITI AMBASSADOR VISITS BAYAN-OLGII PROVINCE IN MONGOLIA

Kuwait's Ambassador to Mongolia Khaled Al-Fadhli made an official visit to Bayan-Ulgii Aimag last

week on Thursday.

The visit was in response to an invitation by the province's Governor Kh. Darmen to attend the

Nowruz festivities, set to kick off on Friday. Upon his arrival, Ambassador Al-Fadhli was received by

Governor Darmen, president of the Citizens' Representative Council at the province, a number of

Islamic society representatives, and Islamic school students. Afterwards, the Kuwaiti diplomat held

an official meeting with the province's governor and leaderships, during which they conveyed their

great appreciation to Kuwait's major support and aid to Mongolia and Bayan-Olgii province, lauding

at the same time assistance from the Kuwaiti public, as well as Kuwaiti philanthropic societies in

building and restoring the province's mosques.

Ambassador Al-Fadhli expressed his delight at attending the celebrations for what it represents of

historic legacy and significance, expressing also his pride in being the first Arab ambassador to visit

the province. Furthermore, he pointed out his aspiration to boost bilateral relations between

Kuwait and Mongolia.

Source: Kuwaiti News Agency

ALBANIA, MONGOLIA TO STRENGTHEN RELATIONS

Albania and Mongolian representatives signed a memorandum of understanding for strengthened

relations, reported the Albanian Telegraphic Agency (ATA).

Albanian Deputy Foreign Minister Sokol Dervishaj held a meeting with Mongolian Deputy Foreign

Ministry Damba Gankhuyag during his visit to observe the 65th anniversary of diplomatic relations

between the two countries. Dervishaj briefed Gankhuyag on Albania's achievements, Albanian

government priorities and the country's active role in the region, said ATA. Gankhuyag confirmed

his readiness to promote cooperation between their two countries by improving the legal framework

for cooperation between Albania and Mongolia.

Source: Shanghai Daily

MINISTRY EXTENDS NGO MANAGEMENT AT KHUSTAI

Khustai National Park Trust managing board chief N. Enkhbold and Environment and Green

Development Minister Sanjaasuren Oyun Monday signed an agreement to extend the park's term of

management for another 10 years.

The park is mostly known as the location where the Takhi, also known as Przewalski‘s horse, were

released. After the government declared Khustai National Park a specially protected area in 1993,

the park was managed by the Mongolian Association for the Conservation of Nature and the

Environment from 1992 to 2003. Afterward, the Khustai National Park Trust took control.

Khustai extends through the Khentii Mountains and includes the western edge of the Mongolian

steppe, at the boundaries of Altanbulag, Argalant and Bayankhangai Soums of Tov Aimag. The park

is about 100 kilometers west from Ulaanbaatar and covers 50,600 hectares. The grounds are home

to 459 species of vascular plants, 85 species of lichens, 90 species of moss and 33 species of

mushrooms. It is also where 44 species of mammals have been spotted, including Red deer,

Mongolian gazelle, Roe deer, Wild boar, Wild sheep, Ibex, Mongolian marmots, Grey wolves, Lynx,

Pallas cat, Red fox, Corsac fox and the Eurasian badger. It is also home to 217 species of birds,

including the Golden eagle, Lammergeier, Great bustard, Whooper swan, Black stork, Daurian

partridge and Little owl; 16 species of fish; 2 species of amphibians; and 385 species of insects.

Source: Montsame

ALLENS REVIEWS REGULATIONS FOR INVESTMENT AGREEMENTS UNDER INVESTMENT LAW

On 21 October 2013, the Source reported on the introduction of Mongolia's new Investment Law,

which regulates foreign investment in Mongolia. The law's introduction was seen by many as an

indication of the government's desire to re-establish Mongolia's status as an attractive investment

destination. The Law was enacted after a period of uncertainty attributable to earlier legislative

reforms and proposals that were not generally regarded as supportive of foreign investment.

Following the law's introduction, key Mongolian political leaders, including the president of

Mongolia, have actively sought to attract renewed investor interest in Mongolia through several

high-profile visits to Hong Kong, London and New York.

The Investment Law provides that for large investments of more than MNT 500 billion (USD 284

million), if requested by an investor, the government may enter into an investment agreement to

stabilize the environment in which the investor will be carrying out its operations. The government

has recently passed the regulations in order to govern the process of entering into an investment

agreement under the Law.

The regulations do not apply to agreements for certain agreements. Agreements concerning nuclear

energy are relegated to the Nuclear Energy Law, deposit development agreements to the Minerals

Law, and production-sharing agreements to the Law on Petroleum. Accordingly, these agreements

will continue to be subject to the provisions contained in the applicable legislation.

The regulations set out the process of applying for, negotiating and executing an investment

agreement. The regulations also describe the content of an investment agreement and how it will

be monitored once it is signed.

Click here for the full report.

Source: Allens

MONGOLIAN KAKURYU PROMOTED TO YOKOZUNA, SUMO‟S HIGHEST RANK

Kakuryu of Mongolia was promoted to yokozuna on Wednesday, becoming the sixth foreign-born

wrestler to reach sumo‘s highest rank.

The 28-year-old Kakuryu won the Spring Grand Sumo Tournament with a 14-1 record en route to his

second career title and was unanimously voted to become the 71st grand champion. Kakuryu, whose

real name is Mangaljalav Anand, joins fellow Mongolians Hakuho and Harumafuji as the three

wrestlers at the top rank. Sumo has not had a Japanese grand champion since Takanohana retired in

2003.

Kakuryu becomes the fourth Mongolian to reach yokozuna. Asashoryu, who retired in 2010, was the

first.

Source: Washington Post

MALAYSIA PREMIER RELEASES STATEMENT ON FATE OF MH370

Malaysian Prime Minister Najib Razak made the following statement on Monday in a news

conference, in which he said that new data showed that Flight MH370 ended in the southern Indian

Ocean. At least two of the passengers on the plane were en route to Mongolia.

―This evening I was briefed by representatives from the U.K. Air Accidents Investigative Branch

(AAIB). They informed me that Inmarsat, the U.K. company that provided the satellite data which

indicated the northern and southern corridors, has been performing further calculations on the

data. Using a type of analysis never before used in investigation of this sort, they have been able to

shed more light on MH370′s flight path.

―Based on their new analysis, Inmarsat and the AAIB have concluded that MH370 flew along the

southern corridor, and that its last position was in the middle of the Indian Ocean, west of Perth.

This is a remote location, far from any possible landing sites. It is therefore with deep sadness and

regret that I must inform you that, according to this new data, flight MH370 ended in the southern

Indian Ocean.‖

Source: Wall Street Journal

ANNOUNCEMENTS

DELOITTE LAUNCHES CFO PROGRAM IN MONGOLIA

Deloitte Onch is launching its CFO program in Mongolia with the first CFO roundtable on 2 April.

The Deloitte CFO program will feature a series of roundtable events to offer the opportunity for

CFOs in Mongolia to network, share insights, best practices and discuss timely issues facing the CFOs

of today. Deloitte launched its CFO program worldwide in 2008 and today it is active in more than

30 countries. The program is a CFO-centric initiative that includes a series of events and discussions

on leadership. Today‘s CFOs are expected to step up to act as strategic advisor to CEOs. Therefore,

the roundtable will focus on how CFOs can share their best practices to become catalysts and

strategists rather than traditional stewards or operators.

For more information email E. Enkhsanaa at eerdeneochir@deloitte.com

___________________________________________

MINEINFO'S MONGOLIA ORIENTATION CULTURAL ADJUSTMENT COURSE, 10 APRIL

MineInfo is hosting the Mongolia Orientation training 10 April at the Continental Hotel in

Ulaanbaatar.

Once again, Mongolia has become an attractive destination for foreign investors. It is important to

give foreigners a correct understanding about Mongolia, the Mongolian people, culture and

traditions. The Orientation Training will provide foreigners and expats living and working in

Mongolia with a full range of information about the country and its people, with the aim to ensure

an easier and softer adaptation to a new and completely different environment.

The training is delivered by renowned researchers and lecturers from the Mongolian universities,

organized in a comfortable and luxury environment.

The cost is MNT 940,000 per student. A 5% discount will be given to BCM members to register. For

more information call 99053285 or 99098223.

___________________________________________

BCM MEMBERS RECEIVE 15% DISCOUNT FOR OIL AND OIL SHALE MONGOLIA, 9-10 APRIL

The Oil and Oil Shale Mongolia 2014 international investment conference, hosted by the Petroleum

Authority of Mongolia, will be held in Ulaanbaatar from 9 to 10 April 2014.

The event will be attended by international investors, oil, gas, and oil shale companies, service

providers, consultancies, equipment suppliers, and traders.

Delegates will have a unique opportunity to network with industry's key contacts at the country's

first international investment conference on oil, gas, and oil shale. They will have the opportunity

to obtain vital information on legislation and policies on oil, gas, and oil shale exploration and

production regulations from the officials of the Ministry of Mining and Petroleum Authority of

Mongolia. Moreover, projects on oil refinery, exploration, production, plus oil shale projects will be

presented.

BCM members will receive an exclusive 15 percent discount. For more information call +976 9909-

1765 or 9910-5877, email info@oilmongolia.com or logon to OilMongolia.com.

___________________________________________

MONGOLIA INVESTMENT SUMMIT, LONDON, 29 APRIL-2 MAY

The second annual Mongolia Investment Summit in London will be 29 April to 2 May.

An additional post-summit workshop will be held, giving participants four whole days of

presentations, discussions, panels and networking opportunities. Keynote speakers include Ochirbat

Chuluunbat, vice minister for economic development, Dorjpurev Dulamsuren, vice minister for

energy, and Clemente Cappello, chief investment officer at Sturgeon Capital

BCM members can take advantage of a special 25 percent discount by using the offer code

UL912BCM when registering. Register online at mongoliainvestmentsummit.com/London, call +44

(0) 207 216 6056, or email cs@resourcefulevents.com

___________________________________________

GTR‟S 3RD ANNUAL MONGOLIA TRADE & COMMODITY FINANCE CONFERENCE, BLUE SKY HOTEL,

13 MAY

GTR announces that the Mongolia Trade & Commodity Finance Conference will return to

Ulaanbaatar on May 13, 2014 for the third edition of this annual series.

The Mongolia Trade & Commodity Finance Conference is the only event of its kind. Building on the

success of the 2013 conference, which welcomed 175 delegates from 13 different countries, the

2014 event will once again provide an unrivaled platform for discussion and debate with the

region‘s leading local businesses and trade finance practitioners.

With its focus on Mongolia‘s mining, minerals and vast commodity-led growth, this will be the key

trade gathering for the country‘s senior business leaders, providing timely insight on the challenges

facing the local banking and private sectors, as well as offering perspectives from the industry‘s key

supporting actors.

BCM members will receive a 10% discount at registration. Please contact saruul@bcmongolia.org to

get a special discount code. Click here to register, or visit exportagroup.com for more information.

___________________________________________

PPP HANDBOOK FOR PUBLIC AND PRIVATE STAKEHOLDERS LAUNCHED

Mongolia‘s Ministry of Economic Development launched the PPP manual on 19 February 2014.

Prepared with ADB support, the manual guides public and private stakeholders in the preparation of

PPPs. ADB Principal PPP Specialist, Craig Sugden, stressed that Mongolian PPP environment has

three strengths now: the Concession Law, the PPP implementing unit, and the handbook. In

addition, the first in a series of Public Private Partnership Stakeholders Consultative Meetings to be

organized quarterly by MOED was held on 21 Feb in Best Western Tuushin Hotel. Contact Innovation

and PPP Department, MOED, Tel: 264726 for the manual.

ADB has supported Mongolia‘s PPP work since 2009 and was appointed as the mandated advisor to

the PPP for Combined Heat and Power Plant 5.

___________________________________________

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

BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with

BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is

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

today‘s BCM NewsWire.

BCM WORKING GROUP NEWS

The joint BCM Education Working Group–VETP Education Working Group met on Tuesday, March 25,

with 30 members attending.

Saha Meyanathan/DAS/and Kern Von Hagen /OT/ moderated the session.

New Member: Olga Khardaeva, PwC was welcomed.

Speakers and topics were:

Update on TVET and Higher Education:

-Update on TVET (Mr. Saha Meyanathan, BCM Education WG co-chair; Mr. Luke Raffin.

-Update on Higher Education (Ms. Nasanbayar, MoE)

-PWC Academy (Ms. Olga Khardaeva, PwC)

-Newsletter 1/2014 and Website/Database (Mr. Pascal Hobin, GIZ)

The newly formed BCM Logistics Working Group‘s first meeting will he held 8 April at 4 PM at

Express Tower, 12th floor, in the Business Plus Initiative meeting room /BPI/. Express Tower is

located just west of the Central Post Office. Members with interest can still contact Erdenetsetseg

at erka@bcmongolia.org to join this WG or for more information. We welcome the registered

members of the Logistics Working Group to our first meeting.

BCM WEBSITES

MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS

The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.

As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the

government website Open-Government.mn are regularly updated.

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

Public Awareness Department, Senior Commissioner, Independent Authority Against Corruption

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

ON TRANSPARENCY‖ Training seminar, Mar 06, 2014

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

University Classroom series‖ on February 27, 2014:

• Ser-Od Inchinkhorloo, Vice Director, BCM, ―Investment environment: Past, Present, Future‖

(Mongolian)

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

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

сарын 24-ний сарын хурал

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

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

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

дэмжих үндэсний зөвлөлийн гүйцэтгэх захирал 2014.02.19

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

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

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

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

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

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

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

• НҮҮРСНИЙ АЖ ҮЙЛДВЭРЛЭЛИЙГ ХӨГЖҮҮЛЭХ ТЭЭВЭР ЛОЖИСТИКИЙН АСУУДЛУУД:

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

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

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

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

сарын 20-21.

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

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

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

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

сарын 20-21.

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

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

21.

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

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

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

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

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

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

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

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

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

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

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

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

Коал Монголиа 2014, 2 сарын 20-21.

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

БУЮУ АНГИЛАН ОЛБОРЛОГЧИЙН ТЕХНОЛОГИ БОЛОН АШИГЛАХ БОЛОМЖУУД, Коал Монголиа

2014, 2 сарын 20-21.

• ―Тавантолгой‖ ХК-ийн Гүйцэтгэх захирал Р.Сэддорж, Дэвшилтэт технологи ба инновацийг

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

• ―УУЛ УУРХАЙН ДЭД БҮТЦИЙН ХӨРӨНГӨ ОРУУЛАЛТЫГ ДЭМЖИХ ТӨСӨЛ‖ Төслийн Зохицуулагч

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

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

ХИЙГДЭХЭЭР ТӨЛӨВЛӨСӨН АЖЛУУД БОЛОН ТӨРӨӨС БАРИМТАЛЖ БУЙ БОДЛОГО, Коал

Монголиа 2014, 2 сарын 20-21.

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

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

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

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

гишүүдийн сарын хурал дээр

___________________________________________

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

BUSINESS NEWS‟, „PHOTO GALLERY‟

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

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

at BCM monthly meeting, March 24, 2014;

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

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

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

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

seminar, Mar 06, 2014;

•―Anglo American Business Integrity policy and its application within the Business Globally‖ , Dr.

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

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

seminar, Mar 06, 2014;

•Change of the package of taxation laws: private sector, Dr. Ch. Khashchuluun, Executive Director,

National Council for Private Sector Support, at the BCM`s Tax working group's meeting Feb 19,

2014;

•Economic and Capital Markets Update, Nick Cousyn, Chief Operating Officer, BDSec at the BCM

Monthly Meeting, Feb 24, 2014

15 Presentations at Coal Mongolia, February 20-21:

•Impact of Coal Sector on Government's Budget and the Taxation Regime , Ch. Ulaan, Minister of

Finance, MINISTRY OF FINANCE OF MONGOLIA

•Environmental issues in Mongolian coal mining sector, D.Enkhbat Ministry of Environment and

Green Development, Head of Environment and Natural Resources Department

•COAL INDUSTRIAL DEVELOPMENT, TRANSPORT AND LOGISTICS ISSUES: PRESENTATION TOPIC:

TRANSPORTATION OF THE MINING PRODUCT" Purevbaatar Luvsandagva, Head, Association of Railway

Engineering of Mongolia

•INVESTMENT INTO MONGOLIAN COAL MINING SECTOR AND CREATING AN ATTRACTIVE ENVIRONMENT

FOR INTERNATIONAL TRADE, VICE MINISTER OF ECONOMIC DEVELOPMENT, O. Chuluunbat, Vice

Minister, Ministry of Economic Development

•Government Involvement and Support to Enhance the Mongolian Competitiveness in Coal Sector,

O. Erdenebulgan, Vice Minister of Mining

•MONGOLIAN COAL INDUSTRY, Overcoming challenges in volatile market conditions, G.Battsengel,

Director, Mongolian Mining Corporation

•Global Coal Markets and Implications for Mongolia , Arshad Sayed, President of Mongolia & India,

Peabody Energy

• Introduction of CTL Plant Project, T. Munkhtur, Baganuur Energy Corporation

• ADUUNCHULUUN POWER AND CTL PROJECT, J.Zoljargal, Project Manager, MAK

• OIL SHALE OPPORTUNITIES IN MONGOLIA, Ts.Gantsog, Executive Director, Genie Oil Shale

Mongolia

• China Coal Market Lookout 2014, Fenwei Energy Consulting

• Erdenes Tavan Tolgoi JSC, Y. Batsuuri, CEO

• WIRTGEN SURFACE MINING TECHNOLOGY AND CHALLENGES IN COAL IN MONGOLIA by Wirtgen

Group

• "MINING INFRASTRUCTURE INVESTMENT SUPPORT PROJECT", Project Coordinator, B. Enkhbaatar at

the Coal Mongolia 2014, Feb 20-21.

• Coal Processing by IMC Montan.

The following presentations are from the January 27 BCM monthly meeting:

- "The year 2014 starts with new IPO on the Mongolian Stock Exchange", Richard Kobayashi, CEO,

Standard Investment LLC

- "IMA Consultancy Services for Investors and Account Manager's Role", D. Irmuun, Director of

Division for Promotion and Consultancy Services, Invest Mongolia Agency

The following have been added to Interview Section:

• Jim Dwyer, Executive Director, BCM: ―Minerals Policy‖;

• D. Bayasgalan, Director of Golomt Bank: ―Golomt has no problem‖;

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

• B. Byambasaikhan, Chairman, BCM: ―Talk is cheap‖;

• President Ts. Elbegdorj: ―Diversifying for growth‖;

• Jim Dwyer, Executive Director, BCM: ―Non-mining sectors budding‖;

• Peter Morrow, Chairman, American University of Mongolia: ―Filling in the blanks‖;

• N. Zoljargal, Governor, Bank of Mongolia: ―Sustainable vision‖;

• Gansukh, Minister of Roads and Transportation: ―Accessing new markets‖;

• J. Od, President, MCS Group: ―Building interest‖.

BCM's English website includes the ―Mongolia Business News‖ section.

Mongolia Reports section:

• 2014 Article IV staff report for Mongolia by International Monetary Fund;

• BCM comments on draft Amendments to the Minerals Law made to Mr. D. Gankhuyag, the Minister

of Mining, February, 2014;

• BCM Open Letter to Parliament and Government is available for download.

BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business

News‖ before they are all put together each week for Friday's weekly NewsWire.

The ―Photo Gallery‖ contains photos from the 6th Anniversary BCM Renewal dinner on November

11, 2013.

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

en/album?albumid=200

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

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

SOCIAL NETWORK WITH BCM

BCM LAUNCHES NEW LINKED-IN COMPANY PAGE

The Business Council of Mongolia has launched a new company page on the social networking

website LinkedIn to network its members and followers including small-medium enterprises (SMEs).

The new page will allow BCM to alert followers to the latest news and information critical to their

businesses. Members‘ businesses will be promoted. Additionally, BCM plans to deliver monthly

infographics on the latest data as well as videos and other media content as they come. The bulk of

the content on the new page will be in Mongolian language to better cater to BCM's Mongolian-

speaking audience and members. The following link can direct you to the new BCM's Linked-in page.

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

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.

Social stats:

BCM now has 5,266 fans on our Facebook fans page, 1,620 connections on LinkedIn network,

and 997 followers on Twitter.

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

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

BCM IN THE UNIVERSITY CLASSROOM NEWS

Business Council of Mongolia (BCM) has been progressing with its BCM in the University Classroom

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

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

grown to include an average of 10 lectures per academic year. Now 1,293 students and teachers

have participated with BCM in the University Classroom Project.

Next BCM in the University Classroom series will be on 8 April at the (IF&E). Mr. Nick Cousyn, COO,

BDSec will speak -- "Update of Mongolian Capital Markets".

ECONOMIC INDICATORS

SUPERMARKET PRICE COMPARISON – MARCH 2014

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]

February 28, 2014 *12.2% [source: NSOM]

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

Note: 12.0% y-o-y, Ulaanbaatar city, February 28, 2014

CENTRAL BANK POLICY LOAN RATE

December 31, 2008 9.75% [source: IMF]

March 11, 2009 14.00% [source: IMF]

May 12, 2009 12.75% [source: IMF]

June 12, 2009 11.50% [source: IMF]

September 30, 2009 10.00% [source: IMF]

May 12, 2010 11.00% [source: IMF]

April 28, 2011 11.50% [source: IMF]

August 25, 2011 11.75% [source: IMF]

October 25, 2011 12.25% [source: IMF]

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

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

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

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

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

CURRENCY RATES – 27 MARCH 2014

Currency Name Currency Rate

US dollar USD 1,784.28

Euro EUR 2,457.49

Japanese yen JPY 17.48

British pound GBP 2,957.53

Hong Kong dollar HKD 229.99

Chinese Yuan CNY 287.25

Russian Ruble RUB 50.12

South Korean won KRW 1.67

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.