March 7 2014

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 315 – March 7, 2014
NEWS HIGHLIGHTS:
Business
 Rio Tinto closer to striking a deal on Mongolia mine;
 MMC secures $150m pre-export loan facility and $50m greenshoe;
 MGG appoints Paul Byrne as CEO to lead next phase;
 Khovd Council greenlights MEC to commission Khushuut in 2014;
 Baotou Steel to establish steel JV in Mongolia;
 Vossloh wins first rail contract in Mongolia;
 Zinc, lead plant to open in March;
 Kincora announces non-brokered financing of up to $5 million;
 Government revokes Asia Coal's Saikhan Uul license;
 Khan Bank introduces “contactless” payment card;
 Xanadu Mines’ Brian Thornton retires as director;
 Premier makes site visit to Erdenet Copper;
 U.S. EPA stalls Alaska copper mine plans;
 PDAC welcomes Prime Minister Harper to talk mining.
Economy
 MNT 1,700 is “appropriate” exchange rate, says Zoljargal;
 Tugrug may appreciate after June, says government working group head;
 Exchange rate is best gauge on health of economy, says MBA president;
 Mongol Bank: 12-week bills, foreign exchange and swap agreements;
 8% refinancing totals MNT 486.7 billion, MNT 897.5 billion for new financing;
 Rural counties to receive MNT 5bn in aid from government;
 888 projects are selected for “Made in Mongolia” initiative;
 Mongolia negotiates with China for overhaul of operations at border;
 Program launched to support middle-age employment;
 More than $11m pledged to develop green economies;
 Mongolia’s supply of FMD vaccines wears thin;
 Cow-pox disease occurred in Khuvsgul province;
 150 students will receive Indian Government scholarships;
 University in London to grant 10 Mongolian students scholarships;
 Cabinet approves construction of winter sports complex;
 Mongolia's water scarcity could threaten its economic boom;
 Tobacco smoking in Mongolia;
 Mongolia can grow iron ore revenue 50%, research shows;
 Gold claims biggest monthly gain since July;
 Uranium market in doldrums as upside creeps closer, says Cameco at PDAC;
 China's economic growth forecast at 7.5% this year, says premier.
Politics
 Mongolia may lift ban on new mining exploration permits – Minister;
 Parliament to consider amendment to IMF agreements;
 Belarus, Mongolia to step up cooperation in transport;
 S. Korea to ship used military equipment to Mongolia;
 Minister Oyun ranks among world’s top performing females in mining;

2.  Ambassadors’ Club becomes operational;
 Civil servants submit declarations to IAAC;
 IAAC investigates Defense Ministry officials;
 National team heads to Sochi 2014 Paralympics with Mongolian flag.
*Click on titles above to link to articles.
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BUSINESS
RIO TINTO CLOSER TO STRIKING A DEAL ON MONGOLIA MINE
Signs that Rio Tinto PLC is close to striking a deal with the Mongolian government to develop
the second stage of the huge Oyu Tolgoi mine continue to mount, with an engineering
contractor advertising for workers on what appears to be the famous copper and gold mine.
Progress on the USD 6 billion second stage of Oyu Tolgoi—which arguably ranks as Rio's most
important growth project—has been frozen due to Rio's inability to strike an investment
agreement with the Mongolian government. But expectations that a deal will be sealed before
the end of this month were heightened on Wednesday when it emerged the company that
helped build stage one of the mine—UK engineering and project management company AMEC—
had started hiring workers for a major underground, copper and gold mining expansion in
Mongolia.
Source: Sydney Morning Herald
MMC SECURES $150M PRE-EXPORT LOAN FACILITY AND $50M GREENSHOE OPTION
Mongolian Mining Corporation (MMC) on 5 March announced it negotiated with one or more
banks for a coal pre-export loan facility of USD 150 million, and a greenshoe option for a
possible additional USD 50 million.
The facilities will be used to refinance the existing term loan facilities for up to USD 300
million granted 8 March 2012. MMC said it had ―drawn down‖ USD 200 million of that facility
and that it had canceled the remaining USD 100 million facility for an outstanding balance of
USD 130 million. The funds will allow MMC to extend maturity of funding facilities and finance
its general working capital as well as its capital expenditure requirements.

3. MMC is scheduled to repay the facilities in installments, with the last repayment date on 1
December 2016. The facilities will be considered in default if MMC's parent company, MCS Ltd.,
and shareholders Odjargal Jambaljamts and Od Jambaljamts who between them hold at least
30 percent of the issued share capital of the Hong Kong-listed company, breach that ownership
position. If a breach, the bank may cancel the total commitments of up to USD 200 million;
declare that all or part of the loans be immediately due and payable to the bank; or direct the
security agent to exercise any or all of its rights, remedies, powers or discretions under the
finance documents.
Source: Mongolian Mining Corp.
MGG APPOINTS PAUL BYRNE AS CEO TO LEAD NEXT PHASE
Mongolia Growth Group Ltd. 3 March announced the appointment of Paul Byrne as chief
executive officer. Former Chief Executive Harris Kupperman will remain actively involved in
the oversight of the company, as he transitions into the newly created role of executive
chairman.
Byrne has nearly three decades of experience with real estate developments and investment
portfolios, various consortia and joint venture projects, combined with organizational
leadership experience at the highest levels of market leading property companies in both the
private and the public sectors. Most recently, Byrne served as a board member and chief
executive officer of Majid Al Futtaim (MAF) Properties, headquartered in Dubai, a USD 6 billion
property company with developments and property assets in 10 countries. The MAF portfolio
includes four million square meters of land for mixed use developments, 11 hotels and resorts,
16 major shopping malls including the iconic Mall of the Emirates with its famous indoor ski
slope and a subsidiary in the property funds management business.
―While in Dubai and the MENA Region, I witnessed how the resource wealth of the Gulf created
robust and sustainable consumer spending. In addition, I observed, how being a pioneer in high
quality retail and commercial properties allowed MAF to unlock pent-up consumer spending in
previously untapped markets,‖ said Byrne. ―It seems inevitable that Mongolia will witness a
confluence of these two trends.‖
Additionally, Byrne spent eight years leading all commercial real estate development activities
at the new Hong Kong International Airport, which include 35 commercial projects, totaling
approximately USD 3.2 billion. Byrne was client representative for the New York Port Authority
in planning the redevelopment of the new World Trade Center and Rail Terminal hub, a world
renowned mixed-use real estate development (approximately USD 12 billion). Over the course
of Paul‘s career, he has successfully overseen initiatives that have raised approximately USD 10
billion in combined debt and equity.
Source: Mongolian Growth Group Ltd.
KHOVD COUNCIL GREENLIGHTS MEC TO COMMISSION KHUSHUUT IN 2014
The Khovd Aimag Citizens` Representatives Khural on 20 February approved Mongolia Energy
Corporation‘s (MEC) request to launch mining operations at the Khushuut coal mine project this
year.
The provincial council met with 6,000 residents of seven counties of the province to hear their
opinions, requests and ideas for the agreement. MEC agreed to pay MNT 1 billion per year to
the Khovd-Khushuut Development initiative in addition to USD 1 per ton of coal it exports from
Khushuut, but an agreement was set at MNT 600 million plus USD 0.6 per tons of exported coal
for the first year. MEC also agreed to put 10 million tons of coal on reserve for the province.
Source: Unuudur
BAOTOU STEEL TO ESTABLISH STEEL JV IN MONGOLIA
Chinese steelmaker Inner Mongolia Baotou Steel Union Co., Ltd. plans to build a joint-venture
steel plant with an annual production capacity of five million tons in Mongolia.
Liu Jinyi, deputy general manager with Baotou Steel, reiterated that as planned, Baotou Steel
would build a joint-venture steel plant in Mongolia and the annual production capacity was five
million tons. He said the plant could be completed within two to three years, and a major rare

4. earth mine of it would be shut down. And by then, it would see rare earth raw materials mainly
from the development of tailings dams.
People in the know disclosed that it was in close talks with the Mongolian party and provided
that everything went on well, the steel plant would be completed in two phases within three
years and production capacity of the phase. In order to ease pressure from rising demand for
iron ores, it planned to use pig iron as raw materials in the phase-two project and the annual
production capacity would be two million tons. Liu pointed out that this was actually a win-win
deal and in addition to the Chinese firm, Mongolia would benefit much from it. Mongolia had
only one steel plant currently and the annual production capacity was only about 300,000 tons.
Steel turned out by the plant could not have well satisfied the demand of the nation. In
addition, it had had a plan to develop its own mineral resources.
The deputy general added that the cooperation involved an iron ore mine, too, and so far both
sides had almost reached agreement over most of the details. They were busy negotiating
major ones including investment proportion and management mode currently and the worst
result would be that they would jointly operate the plant. After that, the Shanghai-listed firm
would kick off the construction.
Baotou Steel plans to import about 4.5 million tons of iron ore this year, up three million tons
from a year ago.
Source: MENAFN
VOSSLOH WINS FIRST RAIL CONTRACT IN MONGOLIA
German rail technology provider Vossloh won a contract to supply fastening systems for 270
kilometers (168 miles) of rail lines in Mongolia.
The contract, which is Vossloh‘s first with Mongolia, is worth only EUR 20 million (USD 27
million), Vossloh said on Thursday, but added that it hopes it will be the first of many contracts
from Mongolia. The country is planning new rail lines with a total length of 5,500 kilometers in
the coming years.
Delivery of fastening systems for the route connecting Mongolia's massive Tavan Tolgoi coal
mine with the Chinese border will begin in a few weeks and be completed in the first half of
2015.
Source: Reuters
ZINC, LEAD PLANT TO OPEN IN MARCH
China is investing in a plant [the Source does not specify the type of investor] in minerals in
Western Mongolia.
The plant, which is due to open 10 March at Nogoonnuur Soum, Bayan-Ulgii Aimag, would have
the capacity to process 300,000 tons of lead and zinc each year. The facility will be located at
the site of an underground mine and nearby another concentrator in the Dulaan Har Uul
mountain area.
The plant will create 600 new jobs.
Source: Zuunii Medee
KINCORA ANNOUNCES NON-BROKERED FINANCING OF UP TO $5 MILLION
Kincora Copper Ltd. announces a non-brokered private placement of up to USD 5 million
through the issuance of up to 100 million units at a price of USD 0.05 per unit.
Each unit will be comprised of one common share and one share purchase warrant. Each
warrant is exercisable to purchase a common share at a price of USD 0.105 per share for a
period of two years from the date of the close of the financing. Proceeds from this financing
will be used for further exploration of Kincora's mineral properties in Mongolia and general
working capital.
Source: Kincora Copper Ltd.
GOVERNMENT REVOKES ASIA COAL'S SAIKHAN UUL LICENSE
Asia Coal Ltd. announced it received notice from the Minerals Authority of Mongolia that the
mining license for the Saikan Uul deposit had been revoked.

5. The license was revoked initially on 22 September 2008 because the annual license fee was
paid on 17 September 2008, a few days after the due date of 5 September 2008. However, the
license was subsequently restored by an order of the then director of Minerals Authority on 13
November 2008. Asia Coal said its subsidiary holding the license, SMI LLC, has paid the relevant
annual license fee in a timely manner since 2008. The notice from the MRA states that the
restoration order had been invalidated and that the initial decision to revoke the license has
been restored.
Asia Coal is seeking to dispute the revocation of the license and has submitted a formal request
to the Cabinet of Ministers and Ministry of Mining to cancel the decision to revoke the license.
Source: Asia Coal Ltd.
KHAN BANK INTRODUCES “CONTACTLESS” PAYMENT CARD
Khan Bank LLC is introducing the ―contactless payment card,‖ for the first time in Mongolia,
which it says will make purchases quicker and more convenient for consumers.
The contactless card, named ―Kiss‖, features a chip which emits radio waves and
communicates with the card reader through induction technology and requires only close
proximity to an antenna to complete a transaction. They are often used when transactions
need to be processed quickly or hands-free such as on mass transit systems, where a smart card
can be used without even removing it from a wallet and payments can go through at very close
distances. So far, a total of 1,400 Point-of-Sale terminals have been installed in merchants.
Besides delivering fast, secure transactions such as fare payments, the card itself protects
personal information. The contactless Kiss card is offered as part of a package service which
also includes Internet banking and SMS Alert service, loyalty service and delivery of statements
via email. Furthermore, Kiss cardholders will receive certain discounts from loyalty merchants.
Source: Khan Bank LLC
XANADU MINES‟ BRIAN THORNTON RETIRES AS DIRECTOR
Xanadu Mines Ltd. announced 28 February that the impending retirement of Director Brian
Thorton, first announced 22 October 2013, had gone into effect.
Thornton founded Xanadu in 2005 with Ganbayar Lkhagvasuren and was instrumental in the
company establishing operations in Mongolia. Since then, Xanadu has been active in the
exploration of gold, copper and coal in Mongolia.
―Brian has built a strong corporate presence and professional exploration team in Mongolia to
support the company‘s project portfolio and remains a substantial shareholder,‖ said Xanadu‘s
managing director, George Lloyd. ―As a result the company is in an excellent position to
capitalize on its opportunities and we are all indebted for his hard work and vision.‖
Source: Xanadu Mines Ltd.
PREMIER MAKES SITE VISIT TO ERDENET COPPER
Prime Minister Norov Altankhuyag made a visit to the Erdenet copper mine in Orkhon Aimag.
The visit began with a meeting with local business people where they discussed a recently
announced industrialization project by the government and how it could support local small
business. Afterwards Altankhuyag met with employees of the Russian-Mongolian joint venture
Erdenet Mining Corp. for an update on the achievements made in 2013 as well as plans for
2014. In 2014, Erdenet plans to procure 13 types of products worth MNT 40.3 billion.
Altankhuyag praised the plant for its support of domestic production and transparent
procurement. Erdenet is leading a project for the opening of a regional diagnosis center able to
receive 500 people a day. With government funding, the project could come to service in 2015,
said officials.
Source: Montsame
U.S. EPA STALLS ALASKA COPPER MINE PLANS
A controversial plan to mine the world‘s largest undeveloped copper deposit in Alaska—a
deposit if developed would rival Mongolia‘s Oyu Tolgoi mine—is facing action from the U.S.
Environmental Protection Agency (EPA) that could result in the project being blocked.

6. The EPA said on Friday it was exercising rarely-used powers under the Clean Water Act to
investigate how to protect the abundant salmon fisheries of Bristol Bay on Alaska‘s south coast
from being harmed by waste from the proposed Pebble copper and gold mine. The project is
led by Northern Dynasty, a Canadian company in which Oyu Tolgoi lead mining agent Rio Tinto
PLC has a 19.1 percent stake. While the investigation is under way, the U.S. Army Corps of
Engineers, which is responsible for approving waste disposal at the planned mine, cannot award
any permits. At the end of the process, which could last into next year, the EPA has the power
to block the project by denying permission for waste disposal.
Gina McCarthy, the agency‘s administrator, said that the action was ―not the end of the road‖
for the project, but studies of the area had shown that the mine ―would likely have significant
and irreversible negative impacts‖ on Bristol Bay. The area provides almost half the world‘s
supply of wild sockeye salmon. Pebble is one of the world‘s most significant undeveloped
deposits, with its estimated 25 million tons of copper compared with Oyu Tolgoi‘s estimated 37
million tons of recoverable copper.
The world‘s biggest mining companies have been shying away from the project. Last year Anglo
American PLC withdrew from a joint venture to develop Pebble, taking a USD 300 million
charge and handing the project over to its former partner Northern Dynasty. Rio Tinto said in
December it was reviewing its shareholding, bought for more than USD 200 million, with a view
to a possible sale. It took a writedown of USD 131 million on the value of its stake last year,
and last week a Rio executive stepped down from Northern Dynasty‘s board. Rio said in
December it was focusing on other copper mines, including Grasberg, and two development
projects, one in Peru and one in Arizona.
Source: Financial Times
PDAC WELCOMES PRIME MINISTER HARPER TO TALK MINING
Canadian Prime Minister Stephen Harper on Monday became the first-ever prime minister to
attend the Prospectors and Developers Association of Canada's (PDAC's) International
Convention, Trade Show and Investors Exchange, where BCM has sent a mission of 10 Mongolian
businesspeople to engage potential Canadian counterparts. Harper's attendance is a testament
to the growing clout the once-modest yearly gathering of explorers and miners has.
In a moderated question and answer session with incoming PDAC president Rodney Thomas,
Harper focused on the strength of the economy and on measures the government was taking to
help Canadian companies engaged in the mining and extractive industries flourish, both at
home and abroad.
―Canada is one of the world‘s leading mining nations. The sector employs tens of thousands of
Canadians both in communities across this country and around the world. Our government
recognizes the importance of the industry and has been taking important steps to help make it
more competitive and productive,‖ the prime minister told about 600 delegates in a special
presentation on the government's support for the mineral industry.
These measures included supporting junior mineral exploration in ―Economic Action Plan
2014,‖ streamlining the review process for major economic natural resource projects, lowering
taxes and keeping them low, opening international market access like never before, and
working to match skills training with employer needs. The prime minister also discussed the
government‘s efforts to promote access to international markets, including the agreement-in-
principle reached with the European Union on a comprehensive trade agreement that would be
of great benefit to Canadian businesses.
Source: Mining Weekly
ECONOMY
MNT 1,700 IS “APPROPRIATE” EXCHANGE RATE, SAYS ZOLJARGAL
Central bank Governor Naidansuren Zoljargal called the MNT 1,700 exchange rate against the
dollar ―appropriate,‖ and said the bank had the resources to maintain the tugrug at that rate.
Mongolia saw its trade balance come out of deficit for the first time in five years in January,
said Zoljargal. He said the negative trade balance and weak coal prices have put a significant

7. burden on the economy, but an exchange rate of MNT 1,700 would be enough to maintain a
positive foreign trade balance.
Mongolia received USD 280 million in foreign investment for the first two months of the year.
Gold purchases by the central bank have risen from 500 kilograms to 1,300 kilograms year-on-
year. He said gold purchases could make up for the losses seen in the coal market.
Zoljargal said the bank had enough foreign currency reserves and tools to maintain the current
exchange rate.
Source: Business-Mongolia.com
TUGRUG MAY APPRECIATE AFTER JUNE, SAYS GOVERNMENT WORKING GROUP HEAD
A government working group has predicted that the exchange rate for the tugrug will hold
steady before possibly appreciating in July, but warned the economic conditions will not
improve unless the government is able to address issues related to Oyu Tolgoi and bring in
investment.
The working group, which was established by the Economic Standing Committee to monitor the
economy, found that the fall in the exchange rate was largely due to stagnating business
activity in recent months, a low flow of foreign investment, and the dwindling supply of foreign
currencies circulating in the market, said working group head B. Garamgaibaatar. Although the
working group predicts that the tugrug will not make any drastic movements over the next four
months, after July the currency could appreciate if progress is made regarding the phase two
financing for Oyu Tolgoi. Garamgaibaatar, who is also a member Parliament, said other events
to possibly benefit the economy would be any address to the transportation bottlenecks
preventing larger volumes of coal exports to China and effective enforcement of the 2013
Investment Law.
The 2013 budget was drafted with an exchange rate for the tugrug against the dollar of MNT
1,384, as the currency hovers above MNT 1,700 for one U.S. dollar. Lackluster coal export data
and no signs of resolution between Oyu Tolgoi lead investor Rio Tinto PLC and the government
provide little optimism for the economic turnaround Garamgaibaatar predicted.
Source: Udriin Sonin
EXCHANGE RATE IS BEST GAUGE ON HEALTH OF ECONOMY, SAYS MBA PRESIDENT
The exchange rate for the tugrug is the best measure of the strength of Mongolia's economy,
said the head of the Mongolian Banking Association (MBA), and that promoting the domestic
production of goods is the best option Mongolia has at its disposal to protect itself against
currency fluctuations.
―In our economy, USD can be a indicator how well we are doing economically,‖ said M. Bold,
president of the MBA. ―One of the outcomes of having weak export production and a weak food
and service industry is the current situation.‖
Bold said Mongolia's reliance on its mines and dependence on foreign imports have put the
country in a vulnerable position. He added that intervention by the Bank of Mongolia only
exacerbates the country's weaknesses by creating an unsustainable safety net for the economy.
―Intervening with the real exchange rate will create depravity.‖
The banking industry representative said that what was most important was that the
government did not stand in the way of advancements being made by private business.
―Government should not intervene or conduct private business,‖ he said, adding, ―It needs to
stop putting barriers and excessive taxes on business.‖
He went on to laud the government for amending the Minerals Law to cut the royalty on gold to
2.5 percent, and said the move could help bolster the tugrug against foreign currencies.
Source: Business-Mongolia.com
MONGOL BANK: 12-WEEK BILLS, FOREIGN EXCHANGE AND SWAP AGREEMENTS
The 12-week maturity government treasury bill was announced at face value of MNT 40 billion
and each unit was worth MNT 1 million. With a face value of a MNT 40 billion out of MNT 48
billion in bids, the government treasury bills were sold to the banks at a discounted price and
with weighted average yield of 10.60 percent.

8. The Foreign Exchange Auction held on 4 March saw the Bank of Mongolia sell USD 5 million at a
closing rate of MNT 1,749.90 to local commercial banks. Also on 4 March, the central bank
accepted a tugrug-dollar swap agreement offer for an equivalent of USD 12.3 million from local
commercial banks.
Source: Bank of Mongolia
8% REFINANCING TOTALS MNT 486.7 BILLION, MNT 897.5 BILLION OF NEW FINANCING
The government-backed 8 percent mortgage program had released a total MNT 486.7 billion
worth of refinanced mortgages to 17,233 citizens and MNT 897.5 billion in new mortgages for
15,867 citizens, as of 4 March. That total is out of MNT 844.8 billion of requests for refinancing
and MNT 926.9 billion for new mortgages.
Source: Cover Mongolia
RURAL COUNTIES TO RECEIVE MNT 5BN IN AID FROM GOVERNMENT
Sixteen counties of 16 provinces will receive MNT 5 billion each to as part of the government's
Soums Center Reform Program.
The government plans to spend a total MNT 80 billion for the program that would see these
counties create comfortable living conditions, renovate existing infrastructure, and establish
fixtures for social services such as schools, hospitals, or cultural centers.
Additionally, the U.N. Development Programme (UNDP) plans to launch a USD 200,000 project
for improving water sanitation in eight counties in 2014.
Source: Montsame
888 PROJECTS ARE SELECTED FOR “MADE IN MONGOLIA” INITIATIVE
Mongolia has selected 888 project proposals to finance in its program to encourage domestic
production, reported the minister of economic development.
The Ministry of Economic Development has rejected 200 proposals that failed to meet the
government's objects as well as an additional 63 from a total 1,151 submitted proposals for
funding, said Minister of Economic Development N. Batbayar. The government last month
announced it would use the remaining proceeds from the 2012 USD 1.5 billion Chinggis bond to
fund projects that would help Mongolia increase the number of exports and replace imports
with domestically produced goods. The government has a budget of MNT 7.3 trillion for the
initiative, of which 57 percent was included in the 2014 budget for investments.
The kind of projects to encourage export fall into the categories of minerals processing, heavy
industry, raw agriculture production, food production, light industry, and the production of
construction materials. Meanwhile, the bulk of the kinds of production for the second goal to
stimulate at-home production to replace imported goods are in the categories of construction
materials, foods, as well as heavy and light industry. Of the proposals selected, 524 will be
launched in Ulaanbaatar. The second-most popular location was Dornogobi Aimag, followed by
Tuv Aimag. Khentii Aimag was the location least chosen for projects.
The financing will arrive to project planners in the form of tugrug-denominated, five-year loans
at an interest rate of 9 percent. The companies leading the projects have the authority to
choose which bank they deal with, which will be responsible for managing any risks associated
with the projects.
Source: Zuunii Medee
MONGOLIA NEGOTIATES WITH CHINA FOR OVERHAUL OF OPERATIONS AT BORDER
A Mongolian delegation led by Cabinet Minister Ch. Saikhanbileg visited the Gashuun Sukhait
and Gants Mod border points between China and Mongolia to negotiate for better conditions
with the Bayanuur province of Inner Mongolia.
The cabinet minister said he made the visit so he could familiarize himself with the site and
negotiate with Chinese officials for the terms set out by Mongolia‘s Parliament for international
trade. Parliament last December approved a new border control law to take effect 1 April to
reform daily procedures for registration, as well as streamlined controls and monitoring
procedures. That includes a new network linking Mongolia‘s border, customs, inspection and

9. immigration offices as well as the removal of 10 levels of border procedures to bring the
duration for customs clearance to 7 days. Mongolia has also installed a 12-lane toll road to
allow for 1,500 passing vehicles each day at the Gashuun Sukhait border point on Mongolian
soil. Also planned for the site are the construction of four control platforms to reduce wait
times at customs as well as a soon-to-appear e-pass procedure to allow truck driver‘s to
expedite visas and registration using only fingerprints.
The government hoped to negotiate for expanded hours of operation at Gants Mod border in
China. Currently the port closes from 11 a.m. to 2 p.m. each day for break and the facility
closes for the day at 5:30 p.m. The Source reported the work hour constraints as a main
contributor to the delay of copper concentrate exports from Oyu Tolgoi. Mongolian officials
said it would be necessary to have the port operating 24-7 and introduce more tolls so that
each of the 12 roads had a toll booth for traffic to pass through, rather than the current 8 toll
booths. An electronic registration system, similar to the one introduced at Gashuun Sukhait, for
Gants Mod would also make services more effective, said officials. Mongolia also negotiated to
remove fees placed on Mongolian goods entering China, such as a CNY 20 ―pollution‖ fee for
every ton of coal and CNY 4 for road use.
The Mongolian and Chinese authorities reportedly came to an agreement on some of the items
discussed, including the electronic registration, but Bayanuur officials said the 24-7 hours of
operation and removal of fees would have to be discussed internally with higher authorities of
the province.
Last year, Mongolia exported 18 million tons of coal, of which over 60 percent passed through
Gashuun Sukhait and 65,000 tons of copper concentrate. Statistics show, however, that the
volume of exports fell 10 percent compared to the year before, which officials explained was
due to heavy traffic at the border ports. For 2014, Mongolia plans to export twice as much coal
as 2013, and last year Prime Minister Norov Altankhuyag negotiated for the export of one
billion tons of coal deliveries annually for the next 20 years.
Source: Info Mongolia
PROGRAM LAUNCHED TO SUPPORT MIDDLE-AGED EMPLOYMENT
Prime Minister Norov Altankhuyag introduced in a speech Wednesday a new program to help
middle-aged workers find employment.
―The government has been paying attention to employment support programs dedicated to
target groups,‖ said Altankhuyag.
The program is one of nine projects the government has planned that targets specific groups
who may face discrimination in employment. Mongolia currently has 12,000 people nationwide
who are above forty years old and are actively seeking employment, with 3,500 of them in
Ulaanbaatar, said the prime minister.
The program would see the Employment Service Center offer civil service jobs to jobseekers,
such as crossing guards, school patrol officers, and nature conservancy assistants. The program
will also provide assistance to middle-aged individuals interested in sales or operating
businesses.
Source: Montsame
MORE THAN $11M PLEDGED TO DEVELOP GREEN ECONOMIES
Economic growth for developing countries such as Mongolia can—and must—be achieved
without damage to the environment, a U.N. official said in Dubai on Tuesday.
Achim Steiner, U.N. under secretary general and executive director of the U.N. Environment
Program (UNEP), was speaking at the first day of the Partnership for Action on a Green
Economy. Ministers of finance, environment, labor and trade from more than 30 countries
attended the event, which aims to encourage efficient use of resources through government
policies.
The first day saw more than USD 11 million pledged by donors including Finland, Norway, South
Korea, Sweden and Switzerland to help governments develop strategies for green economies. In
addition to Mongolia, countries such as Burkina Faso, Peru, Mauritius, and Senegal have
expressed an interest in the scheme.

10. ―It is becoming increasingly evident that generating growth and prosperity can and must be
achieved within the ecological boundaries of a resource-constrained world,‖ said Steiner. He
said one way to encourage green growth would be to show the price paid for unrestrained use
of natural resources. ―How do you price roughly four to five million people dying each year
prematurely due to indoor and outdoor pollution?‖ said Steiner. ―What is the cost or what is
the benefit of avoiding that kind of price?‖
Sanjaasuren Oyun, Mongolia's minister of environment, said that was the reason for her country
joining the partnership. After nearly a decade of steady economic growth, Mongolia is about to
invest a large amount in new infrastructure, Oyun said. Two hundred new schools, dormitories
and kindergartens will be built this year. The government wants to make them green buildings,
but will need much help to do so. ―We are actually not asking for investment, we are asking for
the knowledge before we invest. We are very excited to be part of this partnership and we
have huge expectations in its outcome,‖ she said.
Source: Eco Business
MONGOLIA‟S SUPPLY OF FMD VACCINES WEARS THIN
A recent shipment of vaccines for Foot and Mouth Disease (FMD) from Russia has arrived frozen
and unusable.
The company that bid on the purchase and delivery of MNT 2.5 billion in vaccines was
reportedly 20 days late in its deliveries by rail to Mongolia, while supplies arrived frozen and
without the necessary paperwork indicating their origin. The 1.6 units of the vaccine were an
emergency purchase from China. Russia and China provided the vaccines as aid. While Mongolia
has exhausted it supply of vaccine reserves at the Veterinarian and Breeding Department in the
month since the quarantine of three provinces to prevent against outbreaks of Hoof and Mouth
Disease, a recent shipment from Russia of 9.3 units of the vaccine was enough to inoculate up
to 18,000 sheep.
The government has spent MNT 5.8 billion to finance the employee salaries working in 12
counties throughout the provinces as well as for vaccines, syringes, disinfection solutions and
gasoline. Meanwhile, the disease has spread to Zamyn Uud and Sainshand Soums of Dornogobi
Aimag. Organizations met last Saturday to discuss what to do next, but they were not able to
resolve any issues.
Source: Undesnii Shuudan
COW-POX DISEASE OCCURRED IN KHUVSGUL PROVINCE
The provincial capital of Khuvsgul Aimag was quarantined for 14 days following an outbreak of
cowpox.
Officials put Murun Soum under quarantine beginning 26 February after a cow died of cow-pox
four days prior in Murun's eighth micro district. Since then, 9 people, 4 horses, 61 cows, 41
sheep, 17 goats and 3 dogs have received treatment for the illness.
Source: Unuudur
150 STUDENTS WILL RECEIVE INDIAN GOVERNMENT SCHOLARSHIPS
India's charge d'affaires to Mongolia agreed to provide 150 scholarships to Mongolian students to
universities in India during a visit to Darkhan Uul 26 February. Indian Charge d'Affaires Shailish
Lahtakia agreed to the scholarships to be financed by the Indian government during a meeting
with Darkhan Governor S. Nasanbat.
Source: Montsame
UNIVERSITY IN LONDON TO GRANT 10 MONGOLIAN STUDENTS SCHOLARSHIPS
Mongolia's Ambassador to Britain and Northern Ireland N. Tulga signed a memorandum in
London with Limkokwing University that commits it to provide 10 Mongolian students with
scholarships each year. The scholarships will be available to students pursuing their Bachelors‘
or Masters‘ degrees, with preference given to students with economic need.
Source: Montsame

11. CABINET APPROVES CONSTRUCTION OF WINTER SPORTS COMPLEX
The Cabinet of Ministers approved a new project for the construction of a Winter Sport Palace
to help train Mongolian athletes for winter sports in the Olympics and other international
sporting competitions.
Minister of Economic Development N. Batbayar received orders to organize bidding for the
project via a ―build-use-own‖ concession agreement. Although Mongolia has participated in the
Winter Olympics since 1964, none of its athletes has ever won a medal.
Source: Udriin Sonin
MONGOLIA'S WATER SCARCITY COULD THREATEN ITS ECONOMIC BOOM
Impinging on the rapid economic growth of Mongolia is the tricky question of water availability,
as Mongolia suffers from extremes in seasonal runoff, local water stress and chronic deficits.
"In the coming two decades, water demand is expected to triple even as water suppliers are
shrinking," states 2030 Waterway Recovery Group (WRG) report, which predicts a 244,000 cubic
meter per day water deficit by the end of the next decade. The link between water stress and
mineral exploitation is where much of the concern currently lies. A substantial proportion of
Mongolia's copper and gold reserves are in the south Gobi where rainfall ranges between zero
and a measly 50 millimeters per year.
One of the most ambitious possible solutions would see the country pump in water via a 600
kilometers pipeline from the Orkhon River in the country's north. At USD 550 million, the
project's price tag puts its viability in doubt. Desalination is another, but whether landlocked
Mongolia has the deep pockets or indeed the hydrological conditions to make it happen is
questionable.
"There's a lot to be shared and gained by visiting each another's projects and setting among
ourselves the height of each other's bar," said Mark Newby, environment manager for Rio Tinto
PLC's huge Oyu Tolgoi copper-and-gold mine in Umnugobi Aimag.
From the "get-go", Oyu Tolgoi realized water efficiency would be make or break for the
project, said Newby. Campaign groups have claimed that Oyu Tolgoi could jeopardize local
water availability. Rio Tinto maintains that an impermeable layer above its main aquifer
separates the brackish water that it extracts from the cleaner, shallower water on which local
communities depend. The company has also installed sensors in over 30 wells in the area and
has trained local herders in their use, promising them real-time data on water levels.
The most pressing water-related headache facing Mongolia relates to Ulaanbaatar itself. With
around 1.3 million people, the city's infrastructure is already under huge strain. Rural-urban
migration is set to exacerbate this further in the coming years.
Source: The Guardian
TOBACCO SMOKING IN MONGOLIA
Findings in a survey identify males, urban dwellers and Mongolian youth as groups that should
be targeted by public health measures on tobacco consumption.
The study corroborated results found in a 2009 survey that found 48 percent of males aged 15
or over in Mongolia consumed tobacco, placing Mongolia among the countries with the highest
prevalence of male smokers in the world. The 2010 study found that 46.3 percent of males
surveyed and 6.8 percent of females were smokers. This practice was especially dominant
among males and urban dwellers, and more so among the middle-aged (45 to 54 years old)
while still displaying a high prevalence among Mongolian youth (15.5 percent).
The probability of smoking was independent of the level of education. Although the level of
awareness of the health hazards related to tobacco smoking was generally very high in the
population, this was influenced by the level of education as more people with a primary and
secondary level of education believed that smoking at least one pack of cigarette per day was
required to harm one's health. Finally, this knowledge did not necessarily translate into a
behavioral outcome as 15.5 percent of the population did not object to people smoking in their
house, and especially so among males.
Tobacco use is one of the four major risk factors contributing to the global burden of non-
communicable diseases (NCDs)—the leading cause of mortality in Mongolia. However, the

12. knowledge, attitudes and practices of the Mongolian population with regards to smoking are
largely unmeasured.
Source: BMC Public Health
MONGOLIA CAN GROW IRON ORE REVENUE 50%, RESEARCH SHOWS
Mongolia could increase revenue from iron ore by 50 percent with downstream processing,
according to research from Glogex LLC.
Mongolia could increase iron ore revenue from USD 867 million to USD 1.3 billion, according to
the Glogex research. For years Mongolia has exported raw iron ore to China's Inner Mongolia
Autonomous Region for USD 65 to USD 70 a ton. Mongolia hopes to add value to its iron ore
minerals with the production of 10.8 million tons of processed minerals a year, beginning 2016.
Mongolia's volume of iron ore exports has increased 6.5 times in the last five years, and is likely
to continue to grow. Mongolia currently exports 6.5 million tons of the steelmaking ingredient a
year. Mongolia has an estimated total resource of 985 million tons of iron ore, or 0.6 percent of
the world's reserves, according to research by the Glogex. The Mongolian company estimated
that Mongolia has over 56 deposits of iron ore, of which 32 are located in the central region, 13
in the east, 6 in the southwest mountainous area, and 5 in the west. The iron ore content of
Mongolia's minerals typically meets the commercial reserve standard of 25 to 60 percent metal.
Source: Montsame
GOLD CLAIMS BIGGEST MONTHLY GAIN SINCE JULY
Gold held firm above USD 1,320 a troy ounce to register its biggest monthly gain since July as
concerns about the United States and Chinese economies persisted. Bullion rose 7 percent
during February and is up 10 percent since the start of the year.
Weak economic data, a lower dollar and the political crisis in Ukraine have all supported the
price of the yellow metal since December. ―The gold market continues to show its ability to
recover,‖ said James Steel, precious metals analyst at HSBC. ―While sentiment is not bullish,
the fact that the price is holding above USD 1,300 shows that we are moving towards neutral.‖
Following a decade-long surge, the bullion price plummeted 28 percent last year—the most
since 1981. The fall was sparked by North American and European investors selling holdings in
gold-backed exchange traded funds. With the precious metal having fallen so out of favor as a
store of wealth and Western economies appearing to move on to a sounder footing, few
analysts expected gold to rise this year. But the price hit USD 1,345 on Wednesday—a four-
month high. Spot gold traded at USD 1,326 on Friday afternoon.
With some investor confidence now returning, gold exchange-traded funds (ETFs) have
stabilized and funds were on track to have a net inflow in February for the first time in more
than a year. Though modest in volume, ―the direction of the flow is very important,‖ UBS
noted this week.
But demand for physical gold in Asia, by far the world‘s biggest market, has slowed. Consumers
in India and China, who invest in gold coins, small bars and jewelry, appear to have been put
off by the higher prices. On the Shanghai Gold Exchange, the traditional premium—the
difference between the locally quoted price and the global spot price for bullion—turned into a
discount this week, suggesting that buying appetite has tailed off.
―We are now past the traditional seasonal weakness in China but demand has not picked up,‖
said Walter de Wet, analyst at Standard Bank in South Africa. ―Year-to-date volumes there are
below what they were in 2013.‖
Source: Financial Times
URANIUM MARKET IN DOLDRUMS AS UPSIDE CREEPS CLOSER, SAYS CAMECO AT PDAC
The continued shuttering of Japan‘s reactor fleet, low prices and a supply overhang continue to
weigh on the uranium market, Cameco vice president, marketing strategy and administration
Tim Gabruch told delegates at the Prospectors and Developers Association Conference (PDAC)
on Sunday. But the positive, long-term fundamentals, mainly driven by China bringing new
reactors on stream, remain robust and will start to be felt in the next few years, he added, as
Mongolia prepares to build up its uranium industry.

13. ―The demand for electricity is increasing at a rapid pace. In fact, according to the
International Energy Agency, global electricity consumption will be 70 percent higher in 2035
than it is today,‖ he said. ―We believe nuclear energy will be an important part of that mix.‖
―[But] the Japanese situation remains unclear. The restart of its shuttered fleet of reactors is
experiencing further delays,‖ he added. ―There‘s also been more uranium than expected from
secondary sources; these are the previously mined and milled sources of uranium sitting in
inventory ready to come to market,‖ he explained.
―Much of this has been the result of the uranium enrichment market, which is also facing post-
Fukushima challenges. [They have been] using underutilized operations to essentially create a
surplus of uranium that they are then able to sell into the market,‖ he continued.
Gabruch also noted the closure of four reactors in the U.S. and the temporary shutdown on six
reactors in South Korea during 2013. The effects of supply overhang and subdued demand has
been witnessed most notably in long-term contracting. But with Japan, the significant cost of
imported energy is starting to bite. Gabruch also explored the positive mid- to long-term
factors, including the conclusion of the Megatons to Megawatts Programme with Russia at end-
2013. He also explained that about 15 reactors are expected to be connected to the grid in
2014, with the growth being led by China.
―So while the long-term fundamentals of our industry, and the outlook for uranium remain
positive, the continuing saga of the uranium market [means] that there remains uncertainty in
the near-term,‖ he concluded.
Source: Mining Weekly
CHINA'S ECONOMIC GROWTH FORECAST AT 7.5% THIS YEAR, SAYS PREMIER
The government of Mongolia's number-one trade partner, China, aims to deliver economic
growth of about 7.5 percent this year, Premier Li Keqiang said in a report to China's legislature
released on Wednesday.
Gross domestic product growth has repeatedly outpaced the official target, coming in at 7.7
percent last year. But economists say that achieving that rate of growth is becoming more
difficult as the economy matures. The National People's Congress (NPC) provides an opportunity
to push its reforms ahead. In his first report as premier to the National People's Congress, Li
said China would pursue a "balanced monetary policy." Last year, the then-premier, Wen
Jiabao, called for a "prudent monetary policy." The change suggests Beijing may be more
willing to shift monetary policy as a way to address any sharper-than-expected slowdown in
economic growth. The NPC Is China's largely symbolic legislature.
Li said the government aims to contain consumer price inflation within 3.5 percent, unchanged
from last year. Inflation in 2013 stayed well within the government's tolerance, with the
consumer price index up just 2.6 percent. Li also set a 13 percent target for the growth of M2,
China's broadest measure of money supply, unchanged from last year. In 2013 the measure
grew 13.6 percent, slightly faster than the government planned.
Li reiterated Beijing's calls to continue to liberalize interest rates, expand the trading band for
the tightly controlled Chinese currency and to move toward capital-account convertibility. He
also reiterated calls for China to implement a bank-deposit insurance system, a prerequisite for
easing the country's capital controls.
Source: Wall Street Journal
POLITICS
MONGOLIA MAY LIFT BAN ON NEW MINING EXPLORATION PERMITS - MINISTER
A moratorium on new mining exploration licenses in Mongolia could be lifted during the spring
session of Parliament, Mongolia's mines minister said, as the Asian country works to lure back
foreign investment after a slump last year.
A ban on the issuing and processing of licenses has been in place since June 2010, leaving in
limbo many projects in the mineral-rich country wedged between China and Russia. But that
could change for some if parliament addresses "many discrepancies" in previous mining laws
next month, Mines Minister Davaajav Gankhuyag said late on Tuesday.

14. "I do believe that ... in the spring session we should be able to have this resolved," Gankhuyag
told Reuters following a Mongolia business conference in Toronto.
Ganhuyag said Mongolia had made mistakes in the past but that it would "never repeat" them.
His speech at the seminar was entitled "Mongolia is open for business". He did not, however,
directly address the issue of 106 exploration licenses that were annulled last year as part of an
investigation into mining sector corruption. Canadian mining company Centerra Gold Inc. said
in January that it was "quite optimistic" it would be able to get back to work soon on its
Gatsuurt exploration project in Mongolia, which has been suspended since 2010. Gatsuurt has
been included on a list of mineral deposits of "strategic importance" for the Mongolian
government to consider. Centerra is hopeful that Parliament will approve the list this year,
opening the door for it to resume exploration on the property.
Source: Reuters
PARLIAMENT TO CONSIDER AMENDMENT TO IMF AGREEMENT
The Cabinet of Ministers on 28 February pushed forward to Parliament for approval an
amendment to legislation concerning Mongolia's general agreement with the International
Monetary Fund (IMF). In accordance with the general agreement, the special drawing rights‘
size for Mongolia is augmented to USD 72.3 million from USD 51.1 million.
Source: Montsame
BELARUS, MONGOLIA TO STEP UP COOPERATION IN TRANSPORT
Belarus and Mongolia have committed to invigorating bilateral cooperation in the field of
transport and the construction of road facilities, said Belarus' Transport and Communications
Ministry in a press release.
Heads of both countries' transport ministries, Belarus' Anatoly Sivak and Mongolia's Amarjargal
Gansukh, on 3 March signed a cooperation memorandum for the initiative. Mongolia and Belarus
have promised to work to simplify rules governing international transportation of people and
cargos, including transit through Belarus and Mongolia. Transport specialists from the two
countries will exchange experience in road construction.
Belarusian and Ulaanbaatar railways have agreed to cooperate in capital repairs and
modernization of railway equipment and junctions, cooperation in the field of technical
regulations and standardization. The sides will also render mutual assistance in road haulage
from Mongolia to Belarus and transit from China to Western Europe and back. The Belarusian
officials told their Mongolian counterparts about OAO Stadler Minsk‘s readiness to introduce a
tram service in Ulaanbaatar in line with a turn-key contract. In the field of air transport the
Mongolian and Belarusian officials said they would continue to work to finish intrastate
procedures required for the entry into force of the agreement on flight connections.
―The Mongolian side is open to the use of the railway corridor which links Russia and China,‖
said Minister of Roads and Transportation Gansukh. He said Mongolia plans to build 1,800
kilometers of railways and about 5,000 kilometers of motor ways.
Sivak also offered Belarusian services for Mongolia's planned construction of a 1,000 kilometer-
long motorway that would link Russia and China.
Source: Belarusian Telegraph Agency
S. KOREA TO SHIP USED MILITARY EQUIPMENT TO MONGOLIA
South Korea on Wednesday signed an agreement to ship used military vehicles to Mongolia as
part of efforts to expand defense cooperation between the two nations, Korea's defense
ministry said.
South Korean vice defense minister Baek Seung-joo held a meeting with his Mongolian
counterpart Battus Avirmid to discuss regional security issues and signed a deal to hand over 15
used military vehicles, including excavators, bulldozers and cranes.
"The military equipment is expected to support the Mongolian forces' U.N. peacekeeping
operations and the nation's efforts to build the infrastructure for economic development," the
ministry said in a release.
Source: Yonhap News

15. MINISTER OYUN RANKS AMONG WORLD‟S TOP PERFORMING FEMALES IN MINING
Minister of Environment and Green Development Sanjaasuren Oyun was included in the 100
Global Inspirational—Women in Mining list by the British organization Women in Mining (WIM).
―The mining industry had fewer women on its boards and in its senior executive positions than
any other major global industry, and by a considerable margin,‖ said WIM Chairwoman Amanda
Van Dyke. She said, ―They [women] have a lasting impact on the industry. They support other
women in mining, and the communities and environments impacted by the industry. We
wanted to make sure that regardless of career stage, discipline or jurisdiction, the end result
also encapsulated how diverse and high achieving women in our industry are.‖
Oyun was the only Mongolian to make the list, said Van Dyke, highlighting her achievements in
the mining industry as an employee and in government. Most of the women who made the list
have had at least 20 years‘ experience in mining. Many women were noted for their work in
non-government organizations to support women in mining, the rights of mine employees,
supporting legislature concerning flexible work hours, supporting the local communities
residing nearby mines and assisting women who planned to work in the mining industry.
Source: Mongolian Economy
AMBASSADORS‟ CLUB BECOMES OPERATIONAL
The Ambassador‘s Club of Mongolia (ACM) celebrated its launch on 3 March.
At the opening ceremony, president of ACM and Permanent Representative of Mongolia to
ASEAN Ts. Jambaldorj delivered a speech to detail the club's plans to join forces with current
and former diplomats to provide support, consultations, and disperse information to the public
to promote Mongolia and its foreign agenda. The club also plans to maintain close cooperation
with the heads of foreign diplomatic missions and develop foreign cooperation by creating a
network with organizations with similar aims around the world.
Source: Montsame
CIVIL SERVANTS SUBMIT DECLARATIONS TO IAAC
The Independent Authority Against Corruption (IAAC) announced it had finished collection of
the declaration of assets from 51,000 civil servants.
This year IAAC collected declarations from 99.98 percent of civil servants, as required by
Mongolia law. The collected data will be published sometime between April and June on the
IAAC's official website.
Source: News.mn
IAAC INVESTIGATES DEFENSE MINISTRY OFFICIALS
The Independent Agency Against Corruption (IAAC) has opened an investigation into authorities
at the Defense Ministry.
The IAAC investigation includes the former head of the State Administration and Defense
Ministry's management division, Sh. Sukhbaatar, who current serves as the Foreign Affairs
Ministry's consular department director. The investigation is related to the hiring of KhuMoTe
LLC to construct a 380-home apartment building for ministry employees. After four years of
waiting, the building has still yet to complete. KhuMoTe is owned by the son of former
parliamentarian B. Batbayar.
The company has allegedly cost the government MNT 1 billion for the failed project. The
Ministry of Finance reportedly warned the Defense Ministry not to enter into a contract with
KhuMoTe for the construction of the building.
Source: Unuudur
NATIONAL TEAM HEADS TO SOCHI 2014 PARALYMPICS WITH MONGOLIAN FLAG
State Secretary General of the Ministry of Culture, Sport and Tourism P. Altangerel 28 February
met with the Mongolian national team to represent their country at the Sochi 2014 Paralympics
to hand over the state flag of Mongolia, attire and equipment designed for the team.

16. The national team has five members, including vice president of the Mongolian Paralympics
Committee D. Surenkhorloo, Coach J. Dashdondog, Technical Coach N. Sandagdorj, MNB media
representative D. Batjargal, and athlete B. Ganbold. Ganbold will compete in cross country
skiing in the men‘s one kilometer race on 10 March, in the men‘s 10-kilometer on 12 March,
and the 20-kilometer on 16 March.
Gobi JSC designed and provided cashmere outfits for the Mongolian national team for the
opening and closing ceremonies on 26 February. Gobi designer B. Bolormaa used the red,
yellow and blue colors of Mongolian flag when designing the outfits.
Mongolia participated in the Winter Paralympics for the first time in 2006 in Turin, Italy. At the
Vancouver Winter Paralympics in 2010 two Mongolian athletes, N. Sukhbaatar and E. Zorig, took
part. This year, 1,600 athletes from 44 nations are competing in 72 events at Sochi 2014.
Source: UB Post
ANNOUNCEMENTS
MONGOLIA ECONOMIC FORUM 2014, ULAANBAATAR, 24-25 MARCH
The fifth annual meeting of Mongolia Economic Forum will be held on 24 and 25 March at the
State Palace in Ulaanbaatar.
During this two day meeting participants will discuss topics related to future of Mongolia and
many more social and economical hot topics. The World Economic Forum project team will also
present The Scenarios for Mongolia during the meeting.
BCM members will receive an exclusive 10 percent discount.
For enquiries regarding participation and press, please call 976-11-321051 or email
info@meforum.mn or visit www.meforum.mn. Please register at
http://meforum.mn/registration/. Registration will be closed 5 pm, 21 March.
__________________________________________________________________________________
“MINER AND SUPPLIER-2014” TO BE HELD FOR 4TH YEAR, 13-14 MARCH 2014, CHINGGIS
KHAAN HOTEL
BCM members will have 10% discount to register for the event. To get the discount code, please
contact saruul@bcmongolia.org.
It is single and largest event which is going to be held in the sector of Mongolian mining supply.
Executive officers, supply managers, financial directors and engineers have great expectations
for this event which influences goods and service research that is broadly familiar within the
sector.
It will be organized under the slogan ―LET‘S MOVE TO THE DEVELOPMENT NEW STAGE!‖ where
mining companies will share their experiences and introduce advanced techniques, technology
and management. Upon your participation at our meeting and exhibitions, you will be provided
with the chance to share your experiences, conclude your achievement and successes,
introduce advanced techniques, technology and management, determine your resources and
chances, properly adjust your supply and establish relationship with new customers.
For more information please contact naranbat@infomine.mn or 70116009.
______________________________________________________________________
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.

17. 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
All 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
______________________________________________________________________
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 MEETING
The BCM Tax Working Group and the National Council of Private Sector Support (NCPSS) jointly
hosted a meeting Wednesday, February 19, with 22 members attending.
Co-chair Onchinsuren D., Deloitte Onch, and Dr. Khashchuluun, Executive Director of NCPSS,
moderated the session.
Participants: BCM`s Tax WG members and Baigalmaa Gankhuu, Narankhuu Tumurchudur-Silk
Road Foundation, Bat-Oyun Sanj-Bodi Financial Advisory Services, Bolormaa Khalzan, Tsolmon
Bereeter-Austraining International, Batgerel and Dr. Uyanga-Newcom Group, Bat B and Kh.
Tsevelmaa-National University of Mongolia.
Meeting discussion was on the following topics:
1.Taxation impact research, Dr. Khashchuluun, Executive Director, NCPSS
2. Issues and concerns over VAT and BCM response
Please see following link to Khashchuluun`s presentation in Mongolian -
http://bcmongolia.org/images/files/mn/Iltgeluud/Khashchuluun.pdf. English translation -
"Change of the package of Taxation Laws private sector" posted to BCM English website.
BCM`s Tax Working Group is planning to request an "open discussion" of proposed tax law
changes to the Government in early May.
If you have any comments on the proposed tax laws, please send to erka@bcmongolia.org

18. 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.
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‖
The presentation below is from the February 24 BCM monthly meeting by Nick Cousyn, COO, BD
Sec:
• О. Зоригт, Гүйцэтгэх захирал, Майн Инфо "Майн Инфо ХХК-ний товч танилцуулга",
МБЗ-ийн 2 сарын 24-ний сарын хурал
Dr. Khashchuluun's, 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 дэлхийн хувьсгал ба Монголын
эдийн 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.

19. • 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‟
• CHANGE OF THE PACKAGE OF TAXATION LAWS: PRIVATE SECTOR NATIONAL COUNCIL
FOR PRIVATE SECTOR SUPPORT, Ch. Khashchuluun, Executive Director, NCPSS 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

20. • 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, Business Council of Mongolia: ―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‖;
• Cameron McRae, President and CEO, Oyu Tolgoi: ―Sitting on a copper mine‖.
BCM's English website includes the ―Mongolia Business News‖ section:
• 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 (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.

21. Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
BCM has also 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
Social stats:
BCM now has 4,434 fans on our Facebook fans page, 1,609 connections on LinkedIn network,
and 942 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 1,213 students and teachers have participated with BCM in the University Classroom
Project.
Next BCM in the University Classroom series will be held on 18 March at the Institute of Finance
& Economics. Ms. Zaya B., consultant at World Bank, has been invited to speak. Presentation
title: ―Insurance Market in Mongolia‖.
ECONOMIC INDICATORS

22. INFLATION

23. 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]
January 31, 2014 *12.3% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 12.2% y-o-y, Ulaanbaatar city, January 31, 2014
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
CURRENCY RATES – 6 MARCH 2014
Currency Name Currency Rate
US dollar USD 1,770.73
Euro EUR 2,431.83
Japanese yen JPY 17.23
British pound GBP 2,959.60
Hong Kong dollar HKD 228.16
Chinese Yuan CNY 48.97
Russian Ruble RUB 289.38
South Korean won KRW 1.66
Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.
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