30.08.2013, NEWSWIRE, Issue 289

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 289 – August 30, 2013
NEWS HIGHLIGHTS:
Business
 Mongolia grants SouthGobi pre-mining agreements;
 Chinese company eyeing Turquoise Hill's Inova Resources for $160m;
 Khan Resources says arbitration hearings set for November;
 Iron ore plant relaunches operations with higher refinement capacities;
 Xanadu targets copper-gold porphyry with at Oyut Ulaan;
 Wolf Petroleum raising $2.6M for Mongolian oil and gas exploration;
 MMC's Jan-Jun hard coking coal sales rise 32%;
 Prophecy signs multiple coal offtake agreements;
 Carbon Energy raises AUD 4 million to advance UCG project;
 POSCO seeking to develop clean energy in Mongolia;
 MGG braces itself for power shortages in UB;
 Khan Fund sees 9.6 percent growth for July;
 MMC appoints chief financial officer;
 Belarus to showcase over 120 solutions in Mongolia;
 EITI assembly held in Khovd;
 Apparel festival set to begin in Inner Mongolia’s Tongliao city;
 Friedland takes back Ivanhoe name.
Economy
 EPCRC’s monthly macroeconomic overview;
 Premier attempts to cool fears surrounding the economy;
 Agriculture sector receives USD 172 million from Chinggis Bond;
 14 SOEs suffer losses of MNT 50 billion in 2012;
 Deposits in foreign currency accounts on the rise;
 Inspectors fail every inspected construction project for August;
 UB announces tender for new air pollution equipment;
 UB combats unemployment with free professional training;
 Mongolia’s cashmere fashion success;
 Green development Plan to clean up Mongolia;
 Chinese expert calls for adjusting investment mode in Mongolia;
 In Mongolia, men are demanding gender equality;
 Filmmaker gets rare footage of Mongol falconers;
 Mongolia, Rio Tinto playing high stakes on copper mine;
 Rio keeps focus on exploration while cutting costs;
 Commodity bulls hope for new Chinese dawn.
Politics
 Delegation set to head to London for Oyu Tolgoi;
 Mongolia to scrap controversial foreign investment law -official;
 Long Name Law amendment in the works, says mining minister;
 Umnugobi bans usage of groundwater;
 WEF comes to UB 14-15 September;
 Elbegdorj receives North Korea security delegation;

 China to protect Mongolian merchants;
 Czech Republic hosts fifth Mongolia-Czech intergovernmental commission;
 ACWF VP, Mongolia Democratic Party Leader Discuss Women's Work;
 Contortionists aim for UNESCO recognition;
 Malaysia court overturns Mongolia model murder convictions;
 Malaysian PM accused of cribbing Mongolian slogan;
 Former university director arrested;
 Narantuul fire destroys grocery section, kills 1;
 Mongol Derby: 'Like the Tour de France crossed with Snakes and Ladders'.
ECONOMIC INDICATORS
 MSE Top 20 Index by market Capitalization;
 Foreign-listed Companies with Mongolian Assets;
 Supermarket Price Comparison – August 2013;
 Inflation;
 Central bank policy rate;
 Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank
International SOS
Wagner Asia Automotive Oxford Business Group
Mongolian National Broadcasting Breakthrough PR
BCM MONTHLY MEETING RECAP
The BCM meeting on 26 July, with Bayanjargal Byambasaikhan in the chair, was attended by 95
members and invited guests.
―It's September, and in a few days school is starting, but we have more important events in the
economy going on,‖ said Byambasaikhan. ―SEFIL is expected to be passed this September, out of
the special session of Parliament.‖

BCM membership now stands at 264, an all-time high, compared with 239 in August 2012. The six
newest members are:
1. Archon LLC is a trading and consulting company based in the Ulaanbaatar, founded in 2012. Its
mission is to expose the businesses of its parent company, Kito LLC, to new sectors of the economy.
The company has quickly seen success in penetrating several emerging markets and pioneering new
technologies in Mongolia. It also is set to become an exporter of a Mongolian national treasure—
cashmere textile.
2. Bodi Insurance LLC, a member of Bodi Group for 18 years, is a leading insurer who has been
introducing new ideas for commercial insurance products and services to individuals at any location.
In 2012, the Mongolian Chamber of Trade and Industry selected Bodi Insurance LLC as ―Top
Insurance Company,‖ in addition it won the ―International Star for Leadership in Quality‖ award in
Paris.
3. Established in 1996, Geosan has achieved steady growth while earning a reputation for offering
high quality professional service. The company offers a complete range of services in geophysical
survey and mapping, and leverages the latest technology in the field. Geosan completed its first
contract in 1998 for locations near the Oyu Tolgoi and Gatsuurt deposits using a single magnetic
system. Since then, Geosan has grown the capability to conduct nearly the entire gamut of ground
and airborne surveys available today.
4. Global Investment and Equity Advisory Partners was founded in 2013 by the two partners, both of
whom had previously worked at Mongolia‘s leading law firms. The firm‘s partners comprise of the
most experienced and knowledgeable legal practitioners in Mongolia. The partners each specialize
in their own respective fields whether it be banking and finance, minerals and mining or corporate
law. The firm focuses on the business needs of its clients and finding the most favorable solutions
available within the framework of the law.
5. Nomads Catering & Integrated Services is a 100 percent privately owned Mongolian entity based
in Ulaanbaatar. It has opened a chain of 22 restaurants and two hotels since 2003. Today, it is a
leading food, beverage and catering service provider in Mongolia offering a wide range of services
including supply chain and logistic management, construction, remote site catering, in-flight
catering, fast food chain and hotel management. More than 1,500 dynamic young people work with
Nomads in Mongolia, Russia and China.
6. World Nixes LLC strives to be the most effective, efficient, and socially responsible nationwide
leader in sourcing and delivering of goods and products. It strive to contribute to the mining sector
as it is the key sector of the development of Mongolia. World Nixes supplies a wide range of light
trucks and truck tires.
Joshua Sunga, internship program director at AIESEC, gave the first presentation of the day,
describing the role of AIESEC in Mongolia in developing Mongolia's population of young people into
an efficient and capable workforce.
―Youth leadership development is crucial to the economy, especially with the growth of today,‖ he
said.‖
He noted the importance of presenting young people in Mongolia with opprotunities for practical
experience because of the sparse opportunities found in the university curricula of today. AIESEC
operates in 124 countries and territories around the world, with 86,000 members and one million
alumni worldwide. Thus far it has sent 49 Mongolian students and recent graduates abroad for
internship experience. Internships typically last between two and 18 months, giving participants
global mindsets and instilling unique skills from each country.
The next speaker was G. Saruul, deputy chief executive officer at the Mongolia Stock Exchange, to
provide a brief summary of the Securities Law, due to come into effect on 1 January 2014.

―The goal of the law,‖ said Saruul,‖ was to create a transparent market place and provide equal
opportunity to investors.‖
To do that means going into greater detail than the previous law to define key terms and the
process for making basic transactions; as well as introducing mechanisms to ensure transparency in
the market. With these in place investors could expect a market that operates more fairly, having
greater liquidity, and providing investor protections. It also means cracking down on insider trading.
Saruul also mentioned that a Fund Law had been approved by Cabinet on Friday, 23 August, and was
expected to pass in Parliament during the extraordinary session of Parliament in September.
Presenting third was G. Zorig, country manager of Tree Global Mongolia, to describe his company's
activities to help Mongolia succeed in its land reclamation efforts and combat the debilitating
effects from human activities to the environment in Mongolia.
―Looking back at the past two years, our work looks to have been effective, with three times faster
growth to plants, and 95 percent greater survivability compared with 10 percent before.‖
His company boasts earlier maturation for trees, faster soil restoration, and two-to-four times
greater carbon sequestration. Tree Global Mongolia has assisted Boroo Gold in its own land
reclamation efforts, and received high praise, noting an ―exceptional survival rate for this type of
planting and far better than we had anticipated.‖
According to Zorig, the issue is a deeply important one to the country as the Mongolian people
witness the disappearance of its wildlife and fauna. Mongolia has seen the disappearance of 13.1
percent in forest coverage since 1990. Tree Global has done its own part in Mongolia with the
reforestation of 150,000 hectares of land, or 150 million seedlings planted a year.
The following speaker was Daniela Zadrozny, consul at the U.S. Embassy, to give a crash course in
attaining U.S. visas. She explained the process—from applications, to interviews, and background
checks—while providing some ―myth busting‖ along the way.
―I know in Mongolia a lot of misinformation about the U.S. visa process is out there. In many ways
it's because the U.S. visa process is different than other countries,‖ she said.
The visa appointment, a mandatory step enforced worldwide, is the first step. The U.S. Embassy
allows for group appointments as well as expedition for emergencies. Next is the interview—which
probably is the most difficult step for most people. She recommended that applicants bring a filled-
out DS1 document, their passport, a passport photo, and their visa application. Other materials,
such as invitations and high school records, are not normally necessary. She stressed the importance
of honesty during the interview, and that applicants should focus on making a reasonable argument
that they have a valid purpose for their trip and the funds needed to stay there and return. It's also
important that applicants disclose any family ties to persons living in the United States.
Zadrozny made special mention that decisions were not personal and emotions were set aside for
making decisions on whether to permit visas. She also noted that any information discovered that
was withheld before hand would cast doubt upon the applicant and work against their case.
The final presentation for the day came from Sereeter Javkhlanbaatar, director of foreign
investment at the Economic Development Ministry, to discuss a highly anticipated Investment Law
to replace both the 1993 Investment Law and 2012 Strategic Entities Foreign Investment Law.
Although Javkhlanbaatar could not reveal everything about the law, as it was still incomplete, he
did explain a few key concepts to demonstrate the intentions of the law. The first was to tear down
the division between ―strategic‖ and non-strategic sectors, treating the economy as an equal
playing field. Rather than curb foreign ownership through restrictive and vague policies, the
government is now set out to only put checks on state-owned companies. Various sector
requirements would instead be regulated via the licensing process. The process for registering a
company in Mongolia would also be made more efficient.
―We are going to save your time,‖ said Javkhlanbaatar. He added ―We won't have approval systems
for strategic sectors, but we will have approvals for state-owned companies.‖
He said the government intended to create new agencies, including a review board, similar to what

exists in Australia, and the Invest Mongolia Agency, which would have the main purpose of
attracting foreign investment. There would also be certain guarantees on taxes, with specific
mention by Javkhlanbaatar made regarding income, royalty, customs and value-added taxes.
BUSINESS
MONGOLIA GRANTS SOUTHGOBI PRE-MINING AGREEMENTS
Toronto- and Hong Kong-listed SouthGobi Resources Ltd. has withdrawn its ―notice of investment
dispute,‖ which it filed with the Mongolian government in July last year, after it was granted three
pre-mining agreements (PMAs).
The PMAs now pave the way for the company to progress to the mining license application stage.
SouthGobi, in which TSX-listed Turquoise Hill owns a majority stake, said on Thursday that the
granting of the three PMAs, together with a PMA awarded on 18 January, had resolved the key
aspect of the investment dispute filed on 11 July. The PMAs relate to three mineral exploration
licenses held by SouthGobi Sands, being licenses 9449X, 5267X and 13779X. License 9449X relates to
certain areas associated with the Soumber deposit outside the existing mining license and the PMA
previously granted. Licenses 5267X and 13779X relate to the Zag Suuj deposit.
SouthGobi owns the Ovoot Tolgoi mine, which produces and sells coal to customers in China.
Source: Mining Weekly
CHINESE COMPANY EYEING TURQUOISE HILL'S INOVA RESOURCES FOR $160M
Turquoise Hill Resources Ltd. has consented to selling its 56 percent stake in molybdenum and
copper company Inova Resources.
Turquoise Hill is looking to sell its stake in Inova to two rich Chinese brothers from Shanxi Donghui
coal coking and chemicals group, a small private mining company. The brothers a proposing a USD
160 million cash bid for the stake. Inova owns the Osborne gold and copper mine near Mount Isa.
The company is looking to collaborate with someone to expand the close-by USD 345 million Merlin
molybdenum and rhenium project, the Australian reported.
This sale comes as Turquoise Hill looks to concentrate on Mongolian copper and gold mine Oyu
Tolgoi. It is in a pre-bid agreement with Shanxi Donghui to sell a 14.9 percent stake and has
indicated it intends to sell its remaining stake to them if they do not get a better offer. The
brothers, Zhang Yaping and Zhang Weidong, have to present a full takeover proposal for the
company if it wants to purchase a stake more than 19.9 percent in Inova, as per Australian law.
Zhang Yapin, the Chinese company's chairman, said the bid is a fair risk-free premium.
―Shanxi Donghui looks forward to progressing the development of Inova's mines and growth projects
and managing the inherent risks involved,‖ he said in an Australian Securities Exchange (ASX)
statement.
The bid will proceed if it receives approval from Australian and Chinese authorities. It also required
51 percent agreement. Shanxi Donghui is seeking advice from PriceWaterhouseCoopers and a firm
called Sapphire International Capital.
Source: Mining Australia
KHAN RESOURCES SAYS ARBITRATION HEARINGS SET FOR NOVEMBER
The International Arbitration Tribunal has set aside five days for its hearings into the USD 326
million Khan Resources‘ arbitration case against the government of Mongolia in November.
The uranium project developer said in a statement on Friday that the 11 to 15 November hearings
would focus on the merits and damages of the case, which it filed with the tribunal in December
2012. Last year, the United Nations tribunal ruled in Khan‘s favor on matters of jurisdiction and
dismissed all Mongolia‘s objections to the continuance of the suit.
The exploration and development company is claiming that Mongolia, in concert with a Russian
partner, took actions in 2009 that amounted to the illegal expropriation of its mining and
exploration permits at the Dornod uranium deposit in the northeast of the country. Meanwhile,

Khan said that its net loss for the nine 30 months ended June narrowed 82.6 percent year-on-year
from USD 19.08 million to USD 3.31 million. The firm reported a negative cash flow of USD 2.87
million for the nine months ended June, with cash and cash equivalents of USD 1.81 million on 30
June, compared to USD 5.24 million the previous year.
Source: Mining Weekly
IRON ORE PLANT RELAUNCHES OPERATIONS WITH HIGHER REFINEMENT CAPACITIES
Mongolrostsvetment‘s Bor Ondor iron ore concentrate plant has restarted production.
During a period of suspended operations due to poor sales, the company added a new line of
equipment for mineral processing. The plant currently is able to process 40,000 tons of iron into 20
tons of 65 percent concentrate a month. The company is currently in negotiations with Chinese and
American firms for sales contracts.
The company has 18 million tons of iron ore reserves for a mine life of between 20 and 30 years.
Source: Unuudur
XANADU TARGETS COPPER-GOLD PORPHYRY WITH AT OYUT ULAAN
Xanadu Mines Ltd. has commenced a second phase exploration program at its Oyut Ulaan copper-
gold porphyry project in the south Gobi region of Mongolia.
The program includes 1,500 meters of diamond core drilling, 350 line-kilometers of ground
magnetics and 1,00- meters of trenching. Drilling is designed to confirm extensions of the goldrich
porphyry copper mineralization identified by reconnaissance work in May through June.
The project is located 60 kilometers west of the trans Mongolian railway, covers 40 square
kilometers and comprising numerous mineralized porphyry centers. Porphyry mineralization at Oyut
Ulaan is associated with late-stage monzonite and quartz diorite porphyry dykes on the flanks of the
Oyut Ulaan intrusive complex.
Fieldwork should be completed by early October with results to follow shortly thereafter.
Capitalized at USD 14 million and well-funded, Xanadu is potentially leveraged to exploration
success.
Source: Proactive Investors
WOLF PETROLEUM RAISING $2.6M FOR MONGOLIAN OIL AND GAS EXPLORATION
Wolf Petroleum Ltd. will raise USD 2.6 million through a fully underwritten non-renounceable
entitlement issue to carry out seismic and other exploration for oil and gas in Mongolia.
The company's ability to secure full underwriting for the offer is notable, given the current state of
markets, and removes any risk that it would be unable to carry out its exploration program.
Proceeds will be spent on seismic acquisition, processing and interpretation (USD 1.2 million), drill
target planning (USD 450,000), geological and geophysical surveys (USD 150,000) and geochemical
surveys (USD 60,000). The remaining will be used to pay the expenses of the offer and for working
capital.
The non-renounceable entitlement issue of two options for every three shares held is priced at USD
0.016 per option. These are exercisable at USD 0.05 each on or before 31 July 2018. CPS Capital
Group is acting as lead manager and broker for the issue and will also underwrite the offer for
174,558,384 options. Garrison Equities, which is controlled by Wolf directors Brian McMaster,
Matthew Wood, and George Tumur, has agreed to sub-underwrite the offer for up to USD 1.3
million.
MMC'S JAN-JUN HARD COKING COAL SALES RISE 32%
Mongolian Mining Corp.'s (MMC's) sales of hard coking coal from January through June 2013 rose 32
percent on-year to 3.1 million metric tons, of which 2.2 million metric tons was washed coal, the
Hong Kong-listed company said Wednesday.
The volume of washed coal sales rose 72.1 percent year-on-year and accounted for 87.3 percent of
total coal revenues of USD 247.8 million for the January-July period. It received an average price of

USD 98.7 per metric ton for its washed hard coking coal over the six-month period compared with
USD 138.7 per metric ton in the same period of 2012, MMC said.
The first module began commercial operations in June 2011, and the second in February 2012, an
MMC spokeswoman said Wednesday. ―Each of the modules has an annual cost processing capacity of
five million metric tons, making a total of 15 million metric tons a year,‖ she said.
MMC was able to reduce the impact of lower coking coal prices by cutting average production costs
for run-of-mine coal by USD 2.70 per metric ton, or 37.5 percent, to USD 4.50 per metric tons, the
company said. MMC's exports to China from January through June comprised around 42 percent of
Mongolia's total coal exports, according to the country's National Statistical Office. It produced 8.6
million metric tons of coking coal in calendar year 2012 from its Ukhaa Khudag mine, which forms
part of the Tavan Tolgoi deposit in the Southern Gobi region. MMC Chief Executive Battsengel Gotov
said Wednesday the company remained cautious about the outlook for the coking coal sector but
expected a gradual recovery in coal prices over the rest of 2013.
MMC posted a USD 2.5 million net loss for the calendar year 2012. Mongolia has been losing its share
of the Chinese coking coal market this year, particularly to Australian exports. In July, China
received 982,472 metric tons of coking coal from Mongolia and 2.6 million metric tons from
Australia, according to China customs data.
Source: Platts
PROPHECY SIGNS MULTIPLE COAL OFFTAKE AGREEMENTS
Prophecy Coal Corp. announced that it has entered into a binding coal sales contracts with a
number of buyers which will involve the sale of over 30,000 tons of coal per month from the
company's Ulaan Ovoo mine.
The buyers include cement plants, a metallurgical plant, a heat plant, chemical plants and Russian
traders. The off-take quantity and a variety of customers reflect the company's significant efforts to
drive higher margin sales while satisfying government power plant needs, which are excluded from
the 30,000 tons per month forecast. All sales require pre-payments, as has been the company's
practice since January 2013. The orders reflect strong demand in Mongolian and Russian markets,
whereby economies are growing at double-digit rates, and local thermal coal mine production are
declining.
The company cautioned that mining operations at the Ulaan Ovoo mine has been curtailed since
July 2012. Some orders will be delivered in August and September from existing coal stockpile.
Fulfilling all the off-take agreements is contingent on a mine restart, which requires time and
capital expenditures. The company has installed significant water-pumping capacity at the mine
site and will soon start pit-dewatering aiming to start mining fresh coal by November 2013 and
thereafter on a continued basis.
Source: Prophecy Coal Corp.
CARBON ENERGY RAISES AUD 4 MILLION TO ADVANCE UCG PROJECT
Carbon Energy Ltd. has completed an entitlements issue to existing shareholders for AUD 2.64
million (USD 2.4 million) and a placement to Holder East Capital for an additional AUD 1 million to
fund work at its underground coal gasification project in Mongolia.
New shares were offered at AUD 0.02 on a one for two basis with a free attaching option
exercisable at AUD 0.06 expiring on 31 August 2016. Attracting a cornerstone investor in Holder East
and the fact that all directors have taken up their full entitlements, should give investors added
confidence in Carbon's operations. Funds will also be directed toward rehabilitation.
POSCO SEEKING TO DEVELOP CLEAN ENERGY IN MONGOLIA
South Korea's lead steelmaker POSCO said Sunday it is moving to develop a new type of clean
energy in resource-rich Mongolia together with a local company there. POSCO said it has joined
hands with MCS Group to start a coal-to-liquid business in the country and is in the process of
obtaining approval from Ulaanbaatar.

Source: Yonhap News
MGG BRACES ITSELF FOR POWER SHORTAGES IN UB
Mongolian Growth Group reported the disposal of two assets, representing approximately 11.4
percent of total value assets it intends to divest, amid plans to manage inevitable power shortfalls
in Ulaanbaatar.
In a monthly letter to shareholders, MGG said it did not plan to build new buildings over the next
few years due to restrictions set by the Ulaanbaatar government due to the city's over-taxed
heating and power system. It noted, however, that the city government's decision to cancel new
heating permits for commercial buildings would not affect any of its own assets. Ulaanbaatar can
expect the construction of a thermal plant in 2015 as well as Heat and Power Plant No. 5 in 2016.
―At MGG, we have been planning certain renovation projects to reduce our own heat usage,‖ said
Chief Executive Harris Kupperman. ―We want to be seen as promoting lower energy consumption as
it helps the environment and also as it helps the city to deal with the severe lack of spare heating
capacity.‖
Kupperman mentioned plans to lower energy consumption through the modification of heating
equipment in seven of its buildings and the installation of automated systems.
Source: Mongolia Growth Group
KHAN FUND SEES 9.6 PERCENT GROWTH FOR JULY
Khan Management reported 9.6 percent growth in its Khan Mongolia Equity Fund last month. The
net asset value as at 31 July 2013 was USD 30.88.
―Following my visit to Mongolia last month, we have gained access to a number of attractive block
parcels of stock,‖ said Travis Hamilton, chief executive. ―We are actively raising capital for the
Khan Mongolia Equity Fund to acquire these positions prior to significantly improved foreign investor
access to the local market in early 2014.
Hamilton added that it was his opinion that ―Mongolian equities have bottomed out,‖ adding that
he expected improved performance in coming months.
―An improving investment climate combined with additional legislative progress aimed to attract
investment is likely to improve stability and confidence in the burgeoning economy over the coming
months.‖
Source: Khan Management Ltd.
MMC APPOINTS CHIEF FINANCIAL OFFICER
Mongolia Mining Corp. (MMC) announced the appointment of Ulemj Baskhuu as chief financial
officer, effective 27 August.
Prior to the appointment, Baskhuu, 34, served as chief investment officer. Baskhuu joined MMC in
2008 as a vice president responsible for investment of the subsidiary Energy Resources Rail LLC.
Source: Mongolia Mining Corp.
BELARUS TO SHOWCASE OVER 120 SOLUTIONS IN MONGOLIA
Belarus will present over 120 technical and engineering solutions at the national exhibition in
Mongolia, said Yuri Lukashevich, aide to the chairman of the State Committee for Science and
Technology of Belarus.
―The solutions will be presented by means of samples, tablets, multimedia presentations and
advertising materials,‖ Yuri Lukashevich said.
The exposition will feature new solutions in mechanical engineering, new technologies (including
laser and nano-technologies), materials, manufacturing equipment and instruments, construction
and power engineering, software, health care, agriculture, fertilizers, treatment of organic waste,
science and education. A Belarus-Mongolia business forum and a business match-making session will
be held within the framework of the national exposition of Belarus in Mongolia.
The national exposition of Belarus will be held in Ulaanbaatar from 5 to 8 September. Belarusian
scientists will present over 120 projects, of which 96 projects will be presented by the Education

Ministry, 26 of the National Academy of Science of Belarus. The collective booth of the State
Committee for Science and Technology will comprise 17 organizations, including 12 organizations
affiliated with the Education Ministry and five organizations affiliated with the National Academy of
Sciences.
Source: Belarusian Telegraph Agency
EITI ASSEMBLY HELD IN KHOVD
The Extraction Industry Transparency Initiative (EITI) held its first EITI Western Region Assembly in
Khovd Aimag on 22 August. Over 100 delegates attended from the private and public sectors.
Source: Mongolian National Mining Association
APPAREL FESTIVAL SET TO BEGIN IN INNER MONGOLIA‟S TONGLIAO CITY
The 10th China-Mongolia Apparel Arts Festival and Mongolian Clothing Contest will be held from 24
to 25 August in Tongliao City of the Autonomous Region of Inner Mongolia, China.
The festival, being organized by the Tourism Bureau of Inner Mongolia, will consist of various trade
fairs and exhibitions, including a Mongolian apparel exhibition and fairs displaying traditional
Mongolian garments and modern Mongolian clothing, the Mongolian Clothing Contest, fashion shows
and other events. Representatives from various clothing enterprises from Russia, Mongolia as well as
China Xinjiang, Qinghai, Jilin, Gansu, Liaoning and Beijing regions are likely to attend the two-day
event. Over 1,000 people are expected to participate in the Mongolian Clothing Contest, to be held
as part of the festival, where nearly 1,600 clothing items are likely to be showcased.
The arts festival, which is held annually intends to promote Mongolian culture and increase the
popularity of the region's traditional costume, encourage innovations in design and production of
the apparel sector, as well as increase production of ethnic clothing among the domestic
enterprises.
The Tourism Bureau of Inner Mongolia initiated the festival in 2003, and has consecutively held nine
successful editions of the contest and exhibitions showcasing the rich culture and evolution of
Mongolia's traditional costumes.
Source: Fibre2Fashion
FRIEDLAND TAKES BACK IVANHOE NAME
Ivanplats Ltd. Executive Chairman Robert Friedland and Chief Executive Officer Lars-Eric Johansson
announced on 28 August that the company had changed its named to Ivanhoe Mines Ltd., effective
that day.
The wellspring for the naming of the original Ivanhoe Mines entity in 1999 was Ivanhoe Capital
Corporation, the private venture capital and project-financed firm founded by Friedland in 1987.
Ivanhoe Capital retained the right to the Ivanhoe name through a subsequent 2010 agreement with
Ivanhoe Mines and Rio Tinto PLC. This agreement required the relinquishment of the Ivanhoe name
after Rio Tinto acquired control of Ivanhoe Mines in January 2012.
―The original Ivanhoe Mines and its predecessor company, Indochina Goldfields, earned
international recognition and respect over almost 20 years due in large part to the success of its
exploration and development teams, crowned by the discovery of Oyu Tolgoi's copper and gold
resources over several years beginning in 2001 and the construction of the mine,‖ said Friedland.
Source: Ivanhoe Mines Ltd.
ECONOMY
EPCRC‟S MONTHLY MACROECONOMIC OVERVIEW
Economic growth rebounded in the second quarter of 2013. Real gross domestic product (GDP) grew
by 14.3 percent in the year to June, a strong improvement on the 7.1 percent growth recorded for
the twelve months to March 2013. Expansion in the first half was 11.3 percent, a slow-down from
the 13.1 percent growth recorded for the same period one year prior.

Mongolia's government finances worsened slightly in July. The accumulative 2013 budget for the
central and local governments is now recording a deficit of MNT 146 billion, up from MNT 133 billion
in June. The deficit is an improvement from this time last year, when combined government
finances were in deficit of MNT 600 billion. Revenue also remained 10.8 percent higher while
expenditure was 4.7 percent down.
The trade balance was in deficit USD $1.3 billion for the seven months to July. This is deterioration
since June, but represents a modest improvement compared to the USD $1.4 billion trade deficit for
the same period last year.
The Mongolian tugrug depreciated sharply in July. The monthly average exchange rate fell 2.5
percent to MNT 1,474 against the U.S. dollar. This was the biggest monthly fall in the value of the
tugrug since December 2011. The value of the tugrug fell 9.7 percent over the past year to July.
Inflation continued to moderate in July to 8.3 percent. Compared to July 2012 this is a big fall in
inflation since it decreased by 6.2 units. The year to date inflation rate was 4.9 percent, while
inflation for the month of July was a modest 0.1 percent.
The money supply (M2) increased only slightly in July. M2 rose 1.1 percent from the previous month
reaching MNT 8.1 trillion or USD 5.4 billion. M2 is 16.3 percent higher than the same period in July
2012.
Bank deposits rose by 4 percent in July to MNT 5.2 billion. Deposits are now 18.6 percent higher
than a year ago despite recent problems in the banking sector. Deposits in foreign currency grew
quickly in July, rising by 11.5 percent to MNT 1.2 billion, while tugrug deposits grew by 1.9 percent.
Non-performing loans rose 43 percent in July.
Source: Economic Policy and Competitiveness Research Center
PREMIER ATTEMPTS TO COOL FEARS SURROUNDING THE ECONOMY
Prime Minister Norov Altankhuyag attempted to assuage concerns for the economy during his 30-
minute weekly press conference on 24 August.
The prime minister was quick to point out the positives in the economy, with 11.3 percent growth
for the first half of 2013 compared with 12.4 percent for the same period in 2012. He also noted the
drastic fall in inflation.
―The inflation rate was 14 percent last year, now it is 8.3 percent his year, meaning that the
government's policy on lessening the price soar of consumer products is successful,‖ said the
premier.
He went on to say that unemployment had also fallen, thanks to the creation of 37,000 jobs, largely
spurred on by the government program ―Let's Live in Our Motherland.‖ He said his Cabinet was
paying great attention to the loss in foreign investment and the decline to the currency exchange
rate for the tugrug to the U.S. dollar. In addition to the close of phase one development at the Oyu
Tolgoi copper mine, the prime minister noted that gold mining firms had been receiving less
investment due to legislation prohibiting exploration for gold near certain forestry and water
sources. The prime minister noted that falls in the tugrug were normal for this time of the year,
while Mongolia could expect more investment with the development of an underground mine at Oyu
Tolgoi.
The prime minister said the government had no plans to increase taxes, and that the fuel price
would not increase. He also noted that the 8 percent government-backed mortgage program would
continue normally.
Source: Montsame
AGRICULTURE SECTOR RECEIVES USD 172 MILLION FROM CHINGGIS BOND
The Development Bank of Mongolia distributed USD 172 million from the 2012 Chinggis bond to the
agriculture sector on August 15, reported the Standing Committee for Environment, Food and
Agriculture [source did not state in what form or to whom –ed].
The funds will be spent to support the production of dairy products, textiles, and plants. The
standing committee also reported a credit ease for domestic companies involved in the production
of leather goods and financial incentives being offered to local raw material producers to sell to

domestic companies.
Source: Unuudur
14 SOES SUFFER LOSSES OF MNT 50 BILLION IN 2012
A number of Mongolia's state-owned assets suffered losses in 2012, with 14 losing MNT 50 billion.
Last year, 34 of the country's state-owned companies suffered losses. Thermal Power plants No. 4
and 3 lost some 8 and 9 billion each, reported the government agency. Other companies to suffer
losses were MIAT Mongolian Airlines, the Baganuur Power Plant, and the Shivee Ovoo coal mine,
with each losing between MNT 1 billion and MNT 5.8 billion.
D. Tsogtbaatar, head of the State Property Committee said the news would mean the directors of
state-owned companies would have to stand for reappointment annually rather than every four
years. He also said replacements would have to be made to the companies' boards of directors,
including the addition of independent members.
Source: Udriin Sonin
DEPOSITS IN FOREIGN CURRENCY ACCOUNTS ON THE RISE
Deposit reports from local banks show growth in foreign-currency deposits this months, most likely
due to waning trust in the local currency.
Total deposits in local banks grew by MNT 200 billion in August from the month prior and MNT 823.6
billion year-on-year. The total amount of companies' savings denominated in the tugrug tripled in
the same period. Total tugrug savings in personal accounts grew by MNT 427 billion for a total of
MNT 3.33 trillion. Total savings denominated in foreign currencies grew by MNT 126.9 billion.
Commercial banks reported that 76.6 percent of deposits into personal accounts is denominated in
the tugrug while 23.4 percent is in foreign currencies. Interest rates for tugrug-denominated savings
accounts grew by 0.6 percent while interest for foreign currencies increased by 0.4 percent.
Source: Zuunii Medee
INSPECTORS FAIL EVERY INSPECTED CONSTRUCTION PROJECT FOR AUGUST
A working group for Ulaanbaatar construction projects reported that all 36 projects inspected in
August failed inspections.
Building inspections of 36 structures in Ulaanbaatar began at the start of this month. The buildings,
which are owned by 20 companies, 14 individual, are located throughout the city, with 20 in
Bayangol District, five in Songinokhairkhan District, four in Sukhbaatar and Bayanzurkh Districts,
and one in Chingeltei and Khan-Uul Districts.
Violations include 22 projects that fail to meet technical specifications for heating, 20 that lacked
blueprints, and 30 with unapproved blueprints. Only two companies had the permits for
construction. Fines of MNT 21.8 million have been given for violations.
One project that failed inspections was the Avzaga Trade building in Sukhbaatar District for a lack
of permits and failure to meet technical, heating and plumbing specifications. Another project in
the 18th Khoroo of Bayangol District and owned by D. Byambasuren had the same violations.
UB ANNOUNCES TENDER FOR NEW AIR POLLUTION EQUIPMENT
The Ulaanbaatar City Procurement office announced a tender for new air pollution measurement
equipment.
Ulaanbaatar installed equipment for measuring particulate matter and toxins in the air at four sites
in 2009. The city is now looking to replace them with the purchase of eight new pieces of
equipment following the expiration of existing equipment.
Source: Unuudur
UB COMBATS UNEMPLOYMENT WITH FREE PROFESSIONAL TRAINING
Ulaanbaatar khoroo offices are now accepting applications for no-fee professional training for over
40 professions.

The program, which offers seven-to-45-day training courses, is a cooperative effort between the
Ministry of Labor, the Employment Services Center, and Ulaanbaatar Labor Department. It accepts
young people lacking secondary education and others at risk of unemployment.
GREEN DEVELOPMENT PLAN TO CLEAN UP MONGOLIA
The government in Mongolia is taking steps to clean up its reputation when it comes to the
environment, with a green development policy planned, a huge wind farm opening and the Ministry
of Environment and Green Development confronting the mining industry. However, balancing
growth with green objectives is still proving a challenge.
On 24 June, the minister of environment and green development, Sanjaasuren Oyun, unveiled a
development policy that identifies objectives toward 2030 and economic measures to be taken until
2020. The program is part of the government's Green Civilization strategy. The Ministry, the first in
the world to have a portfolio of ―green development,‖ has already taken steps since its creation in
2012 to protect certain lands and water, and it has placed a moratorium on new mining exploration
licenses.
In June the ministry further displayed its growing clout by announcing the closure of a key route for
coal transport to China, citing environmental damage. Specifically, the ministry said it would shut
down the Tsagaan Khad Customs stockyard, through which all coal from the Tavan Tolgoi mine must
pass on its way to China. Just a week earlier, Oyun and Mishig Sonompil, the minister of energy, led
the ribbon-cutting ceremony for the USD 122 million Salkhit wind farm. By 2020 the government has
targeted 20 to 25 percent of the energy mix to come from renewable sources; coal supplies about
80 percent of the country's energy.
―For the government of Mongolia, green development is not a choice, it is something we must do,‖
President Tsakhia Elbegdorj said in May.
However, the country has met obstacles in pursuing its green agenda and still plans to build three
coal-fired power stations with a combined capacity of 1,650 megawatts in the next decade.
Meanwhile, gold, copper, and coal mining continues to take its toll on the environment, with
negative side effects including polluted water, soil contamination and harm to vegetation.
Source: Oxford Business Group
CHINESE EXPERT CALLS FOR ADJUSTING INVESTMENT MODE IN MONGOLIA
China should adjust cooperative strategies with Mongolia to promote relations between the two
countries, officials and experts urged.
The government should help improve infrastructure in Mongolia and help large Chinese enterprises
establish a presence in the country, said Gao Shuqing, former ambassador to Mongolia. Gao was
speaking at the Fifth Economy and Trade Fair between China, Mongolia and Russia in Erenhot, in the
Inner Mongolia Autonomous Region, China on Tuesday.
Gao also called for further contact to help build greater awareness and trust between China and
Mongolia to avoid misconceptions toward Chinese enterprises. He expressed hopes that the
Mongolian government will continue to develop a market-friendly economy. The region borders
Mongolia and Russia and has many advantages, said Li Xin, director of the Russia and Middle Asia
Research Center of the Shanghai Institutes for International Studies.
―If we could enhance border transportation, trade and cooperation would be made even more
convenient and efficient,‖ said Li.
Source: China Daily
IN MONGOLIA, MEN ARE DEMANDING GENDER EQUALITY
Mongolian driver Amarsaikhan Gantulga shifts down a gear. In the muddy ground of the capital
Ulaanbaatar his car is making slow progress. While he is scraping by with odd jobs as a driver or
maybe as a guard, Gantulga's wife is earning good money as the financial director of a hotel. His
situation is typical of that of young men in Mongolia.
Now it is the women who dominate the universities, with various statistical data putting their

shares at 60 to 80 percent of graduate. In the meantime, the figure may even have gone higher.
U.S. academic researcher Linda Benson uses the term ―reserve gender gap‖ to describe the
situation in Mongolia. Uyanga Tsogtsaikhan, working for the German educational foundation
Friedrich Ebert Stiftung in Ulaanbaatar commented: ―For a long time many parents thought it very
important for their daughters to get an education. As for the boys, they think that they'll find work
even without a university degree.‖
Amarsaikhan recently finished his university degree in mechanical engineering, but his job search is
going poorly. ―Women are favored more by the bosses. They are considered to be more adaptable,‖
he said.
A man does not let himself be pushed around so easily. Mongolian Health Minister Natsag Udval sees
things differently. It may be that women dominate in the high schools, but all the same there are
many men holding the leadership positions. ―throughout my entire career I have had to push ahead
against men,‖ she said. ―[German] Chancellor Angela Merkel is my ideal.‖ In June Udval became the
first woman to vie for the presidency, but lost to her male opponent, incumbent President Tsakhia
Elbegdorj.
Mongolia expert Julian Dierkes of the University of British Columbia sees a responsibility of the men
for their poorer prospects on the job market. ―There are lots of jobs that Mongolian men quite
simply won't consider. These are the 'Three-D jobs'—dangerous, dirty, dreary.‖
Source: Deutsche Presse Agentur
FILMMAKER GETS RARE FOOTAGE OF MONGOL FALCONERS
There's not much U.S. outdoor filmmakers Eddie Brochin won't do to get his footage. In March 2011,
Brochin endured a 48-hour sojourn to Chinggis Khaan International Airport in Ulaanbaatar, Mongolia;
took another hour-plus trip on a prop plant that landed on a bumpy dirt airstrip in Bayan-Ulgii
Aimag; and after that a three-and half-hour horse ride was needed to reach the tiny village of the
eagle masters Brochin wanted to film.
―Just another day at the office,‖ the 42-year-old said with a laugh. Except this day required an
escort from a military policeman and a bulky bodyguard. ―It's not the safest place in the world,‖ he
added.
An accomplished outdoorsman, hunter and falconer, Brochin had dreamed for years of filming
hunters whose descendants invented the techniques of hunting with falcon and eagles. His resulting
documentary, ―The Falconer, Sport of Kings,‖ was three and half years in the making. Brochin
wasn't about to let a few obstacles—big or small—stand in his way of meeting, following and filming
Hamshibai Elik and Baimandai Sakal and their families, descendants of Chinggis Khan, the legendary
leader of the Mongolian Empire almost 800 years ago.
For more than a month, Brochin lived with his Mongolian hosts, along with two translators (one
Mongolian and one Kazakh), three cameramen, the military police—mandated by Mongolian
authorities—and the bodyguard.
The weather Brochin encountered was far less hospitable. In that mountainous desert region,
temperatures exceed 85 degrees during the day and plunge below 25 at night. The sun sears
exposed skin in less than an hour. With no electricity and only small, temporary structures for
shelter, staying warm after sunset is tough. Since there are so few trees, animal manure fuels fires
in gers. He is one of a handful of foreigners ever to hunt with the Mongolian falconers—a term used
for people who hunt with not only falcons but also eagles and other birds of prey—and film their
techniques. Even Brochin—a falconer for 12 years, a fifth-degree black belt, U.S. Coast Guard-
approved maritime captain, and veteran of hundreds of hunting expeditions—had his mettle tested.
Source: Miami Herald
MONGOLIA‟S CASHMERE FASHION SUCCESS
Just as Mongolia is one of the world's largest producers of cashmere, Ulaanbaatar can claim to be
the fiber‘s fashion capital. The quality of Mongolian cashmere is excellent, and its price very
competitive compared to other producer countries. And Mongolian cashmere garment producers are
trying to seize the moment.

―Apart from mineral resources, cashmere is Mongolia's only other significant export,‖ said Oliver
Descamps, the European Bank for Reconstruction and Development (EBRD) managing director for
Turkey, Eastern Europe, Caucasus and Central Asia. ―What they needed was to raise the quality of
their product. And we thought of several ways to help.‖
Mongolia produces about a fifth of the global supply of raw cashmere. At about USD 45 per kilogram
of raw material, it is a reliable source of income for nomadic herders, bolstering traditional
lifestyle threatened by rapid urbanization. But because goats, unlike cattle, can graze a pasture to
death, there is a clear limit to the sustainable production of raw cashmere. So the industry started
to look for ways to add value by increasing the quality of manufactured garments. For that,
factories needed to buy better equipment and improve skills, in particular in the design and
finishing of clothes.
The EBRD financed the purchase of Italian equipment, and through its Small Business Support team,
the bank brought in international experts to advise the company on how to improve their quality
control. While not sold under its own brand in Liberty or Bloomingdale's, Gobi Cashmere is
increasingly popular worldwide, especially in Russia, and can even be found in a small shop in
Washington D.C.
Some companies have built their business strategy purely around export. At the smaller end of the
industry is a local Mongolian garment manufacturer with an Italian name—Ezio Foradori—which
shows the direction of the company's thinking. The company makes knitted menswear for Dunhill.
Recently, Max Mara paid an introductory visit to the manufacturer. Apart from showing in one store
in Ulaanbaatar, most of Ezio Foradori's output goes abroad.
Source: European Bank for Reconstruction and Development
MONGOLIA, RIO TINTO PLAYING HIGH STAKES ON COPPER MINE
Is Rio Tinto PLC's dispute with the Mongolian government over the expansion of the Oyu Tolgoi
copper and gold mine the signal that the nation's commodity boom is over, or is it just a hiccup?
So far Rio has played its cards close to its chest, saying publicly that both it and the government
remain committed to expanding the project and resolving any issues. The stakes are high for both
parties. For Rio, Oyu Tolgoi represents one of the world's largest untapped copper reserves, and its
development will lessen the global miner's reliance on its iron ore mines in Western Australia. For
Mongolia, the development of the Oyu Tolgoi copper mine and the Tavan Tolgoi coal mine is the
ticket to economic prosperity, with export earnings forecast at a combined USD 7 billion by 2020, a
huge amount for a country whose gross domestic product was USD 10.2 billion last year.
Both sides will have to be wary about escalating the current dispute to the point where the viability
of the investment is called into question. If the Rio investment does go sour, it would put Mongolia
off the map for virtually any Western company for decades. Given the lack of a good relationship
with China, it is unlikely Mongolia wants to become dependent on investment from its giant
southern neighbor. Mongolia likely wants a bigger share of the revenues without having to stump up
capital for development. While this can certainly be legislated, it will alter the risk-reward
equation for assessing resource projects and potentially discourage new investment.
Both the Mongolian government and Rio have too much at stake to endure a protracted dispute. But
this doesn't mean that both parties will work quickly to resolve the issues. But the government is
likely to be feeling more pressure than Rio Tinto, given lower commodity prices and a 43 percent
slump in foreign investment in the first half of this year, both of which hurt the budget.
Source: Reuters
RIO KEEPS FOCUS ON EXPLORATION WHILE CUTTING COSTS
Big miners such as Rio Tinto PLC, which indirectly owns a majority stake in the Oyu Tolgoi copper-
gold project, can slash exploration spending and still make valuable finds but they must resist the
temptation to stop searching entirely or they will pay later, the company's head of exploration said.
The secret of successful exploration on a budget, according to Rio Tinto's's Stephen McIntosh, is
prioritization and planning.
―If something is not making it, we will get out quickly or divest that opportunity, so we can reinvest

into something that will be of value to Rio Tinto,‖ McIntosh said. He added, ―If you stop your most
fundamental greenfield exploration, for the majors you won't miss it for a very long time. But you
will wake up one day, want to the go to the cupboard of future options and find it a little bit bare,‖
McIntosh said.
Cutting exploration has proved an easy win for miners under pressure, as prices and demand cool,
to reduce costs that ballooned during the boom years. Exploration typically requires little
committed spending, staff can be easily moved and cuts have little immediate impact. A project
can take two decades to develop from the idea of entering a country, to a decision on whether to
begin mining.
While rival BHP has cut virtually all exploration except for copper and oil and gas, Rio has remained
active even in iron ore—a steelmaking ingredient that already accounts for almost 90 percent of its
earnings. Most of the iron ore activity is so-called brownfield—working around an existing
operation—often preferred as it is cheaper. But there is also activity outside of Rio's core Australian
base to keep options open.
Like other miners, Rio has pushed into increasingly difficult regions to seek the next big deposit—
and has continued despite delays and difficult negotiations over its mine in Mongolia and the 2008
revocation of part of its concession in Guinea.
Source: The Africa Report
COMMODITY BULLS HOPE FOR NEW CHINESE DAWN
For much of this year, investors have seen the commodities sector as a straightforward story.
Chinese growth and industrializations, the great driver of the decade-long commodity booms, was
slowing according to ever-widening consensus. But in the last few weeks, the signs from China have
been improving.
Trade data showed record monthly imports of commodities from iron ore and oil to copper ore and
ferrochrome in July. Industrial production at large enterprises, a measure closely linked to gross
domestic product (GDP), increased 9.7 percent from a year earlier in July, the fastest pace since
February. On Thursday, a closely watched flash survey from HSBC pointed to growth in China's
manufacturing sector for the first time in four months.
―The data at the headline level does demonstrate that China's demand has been pretty good,‖ says
Duncan Hobbs, commodities analyst at Macquarie.
The numbers triggered a reappraisal of the outlook for China and so for commodities in general
among previously bearish investors. Physical market indicators are also showing strength with
copper premiums—the price paid over and above benchmark futures—rising to record levels. While
some traders are growing bullish, other remains wary. Even if Chinese demand has not been weak
enough to satisfy the most bearish investors, few disagree that the Chinese economy is on a
trajectory towards slower growth.
―China is just normalizing,‖ said David Wilson, metals analyst at Citigroup. ―It's still going to be an
important consumer. But demand is not going to massively accelerate.‖
But even if Chinese demand is going strong right now, there are still risks on the horizon. Most
obviously, the route sweeping China's emerging market neighbors in Asia could easily knock Chinese
traders' confidence. As one physical trader asks: ―Who's to say people won't come back in
September and get really bearish again?‖
Source: Financial Times
POLITICS
DELEGATION SET TO HEAD TO LONDON FOR OYU TOLGOI
A Mongolian delegation is set to leave for London to settle disputes over the development of the
underground mine at the Oyu Tolgoi copper mine. Delegates plan to sign an agreement that
promises government support for the underground mine‘s development.
―We support the exploration of an underground mine,‖ reads a government statement. ―But it

should not mean that we will accept all conditions. The decision will be made after a good deal of
negotiations.‖
MONGOLIA TO SCRAP CONTROVERSIAL FOREIGN INVESTMENT LAW -OFFICIAL
Mongolia plans to scrap a controversial law designed to curb foreign ownership in what it considers
to be strategic sectors, such as mining, a government official said, as the country seeks to kickstart
its stalled economy.
The new measure, if passed, will replace the 2012 Strategic Entities Foreign Investment Law
(SEFIL), which analysts say has been partly responsible for a slump of 43 percent in overseas
investment in the first half of 2013, on an annual basis. Sereeter Javkhlanbaatar, director of foreign
investment at the Economic Development Ministry, said the new law would seek to allay concerns
about limits in sectors such as mining.
―We won't separate the market between strategic and non-strategic,‖ he told an audience of
investors during a meeting of the Business Council of Mongolia on Monday, 29 August.
Sectors identified as strategic by the 2012 law include telecommunications, banking and finance,
besides mining. At the moment, companies looking to buy 33 percent or more of any company
deemed to belong to a ―strategic‖ sector must secure government approval. State-owned firms
require government approval for any interest in a strategic asset, and parliamentary approval for a
stake of more than 49 percent.
But it was unclear if a new law could reverse the slide, he said. Javkhlanbaatar said the new law
alone would not be enough to bring foreign investment back to levels in 2011, when Mongolia
racked up world-beating economic growth of 17.3 percent. He also noted that existing licensing
systems governing sectors like mining and banking could be tightened to guarantee national
security, which could raise concerns among investors.
Nick Plummer, an analyst at the Economic Policy and Research Competitiveness Center, said
tougher licensing terms could actually increase uncertainty and extend delays whether or not the
distinction between ―strategic‖ and ―non-strategic‖ was removed.
―Until we see the draft legislation, we can only guess at what changes the government intends to
make,‖ he said.
Source: Reuters
LONG NAME LAW AMENDMENT IN THE WORKS, SAYS MINING MINISTER
Minister of Mining D. Gankhuyag on Tuesday, 20 August announced the intention to amend the so-
called Long Name Law that has banned mining exploration from certain forestries and bodies of
water.
Gankhuyag said an amendment was in the draft stage during a meeting with representatives of the
mining industries, including companies such as Jump, Shar Narst, and Mondulaan Trade, as well as
the Mongolian Association for Gold Miners. Delegates noted the closure of a number of gold mining
companies after the adoption of the exploration law.
Other problems discussed included the 10-times growth of water fees and excessive bureaucracy at
state agencies.
Source: Montsame
UMNUGOBI BANS USAGE OF GROUNDWATER
The Umnugobi Aimag Citizens' Council has established a ban on the use of all groundwater beginning
1 January 2016.
In addition to the ban of usage, the Council banned the exploration for groundwater beginning 1
August this year. The Council is arguing that without the bans it risks seeing its water levels further
deteriorate and add to the desertification of the land. The decision was made by a working group
that investigated and registered all deep wells dug by mining companies.
2011 data shows Umnugobi had 55 dried up water sources compared with a previous 650 rivers,
streams, lakes and ponds. Over the last two years, about 40 percent of existing water sources have

dried up, with only 240 streams and ponds left in the province.
Water is crucial to the mining projects operating in the area, to which the ban is certain to affect.
WEF COMES TO UB 14-15 SEPTEMBER
The World Economic Forum Strategic Dialogue on the Future of Mongolia will be held in Ulaanbaatar
from 14 to 15 September 2013 .
Mongolia is at a crucial turning point, with one of the world's fastest growing economy driven by a
mining boom that is still far from realizing its full potential. Its future prosperity is affected by
highly uncertain drivers of change, from the reliability of foreign investments to fluctuating
commodity prices and the future of geophysical relations with neighboring Russia and China. The
World Economic Forum Strategic Dialogue on the future of Mongolia is an unparalleled opportunity
to bring together the Mongolian government and other leading domestic and international
stakeholders to explore economic pathways. The meeting forms an essential part of the World
Economic Forum's project scenarios for Mongolia, the outcomes of which will be presented at the
forum's annual meeting in Davos-Klosters, in January 2014.
Source: World Economic Forum
ELBEGDORJ RECEIVES NORTH KOREA SECURITY DELEGATION
Ts. Elbegdorj received a North Korean delegation led by Minster of People's Security of the National
Defense Commission, Choi Bu II.
Elbegdorj began the meeting with greetings to North Korean leader Kim Jon-un and noting that this
year marks the 65th anniversary of diplomatic relations between Mongolia and North Korea as well
as the 25th anniversary of former North Korean leader Kim Il-sung's visit to Mongolia. Il conveyed
Jon-un's greetings and expressed intentions of continuing their two nation's friendly relations.
Pleased with the development of cooperation between the Ministry of Justice and North Korea's
Ministry of People's Security, Elbegdorj noted the importance of further developing mutual trade
and economic cooperation. He said the ninth intergovernmental committee meeting was to be held
in North Korea in September this year, and that their two nations had opportunities for exchanges
in trade and workforce, tourism, culture and sports, education, health, and agriculture. He also
said Mongolia had initiated Ulaanbaatar talks on security in Northeast Asia and that he was certain
would contribute to strengthening the friendship and cooperation of their two countries' relations.
Source: Info Mongolia
CHINA TO PROTECT MONGOLIAN MERCHANTS
The Authority for Fair Competition and Consumer Protection (AFCCP) has signed an agreement to
help regulate Mongolian merchants whose rights have been violated in China.
The AFCCP deputy head, A. Ariunbold, and the Chinese commerce vice minister signed a
cooperation agreement between the two organizations in Beijing. During the meeting the Chinese
counterpart promised to consider protecting Mongolian merchants who run businesses in China, if
their rights are violated.
The two organizations first started their collaboration in 2008. Since then Chinese representatives
have visited Mongolia several times making various efforts to adhere to the duties outlined in the
agreement.
Source: News.mn
CZECH REPUBLIC HOSTS FIFTH MONGOLIA-CZECH INTERGOVERNMENTAL COMMISSION
The Mongolian Ambassador to the Czech Republic met with the country‘s vice president of the
Chamber of Commerce on 22 August, ahead of the fifth intergovernmental commission meeting to
be held on 26 and 27 August in Prague.
At the start of the meeting chamber Vice President Josef Cilek congratulated Mongolian Ambassador
D. Zumberellkham for his appointment, assuring the ambassador that they would work toward
contributing to tightening friendly relations and multilateral economic ties between their countries.

He also expressed gratitude to Mongolia for its cooperation in a business forum for Mongolia and the
Czech Republic to be held during the intergovernmental commission. Zumberellkham expressed
gratitude to the Czech Economic Chamber and the Czech-Mongolian Chamber of Commerce for their
cooperation for the commission and the forum. He noted the importance of the meeting to their
countries‘ relations.
Source: UB Post
ACWF VP, MONGOLIA DEMOCRATIC PARTY LEADER DISCUSS WOMEN'S WORK
Member and Vice President of the Secretariat of the All-China Women's Federation (ACWF) Meng
Xiaosi exchanged opinions on women's development with a delegation from Mongolia's Democratic
Party (DP), headed by the party's general secretary, Tsedevdamba Oyundari, during their meeting in
Beijing on 22 August.
Meng introduced the current situation in Chinese women's development and ACWF's recent
important efforts. She emphasized that Sino-Mongolian women's communication and exchanges play
a positive role in promoting Singo-Mongolian ties. She added that China is looking to further
strengthen Sino-Mongolian women's cooperation and communication in the future. Oyundari said
that the DP attaches great importance to family construction as well as women and children's
development. She added that she hoped women's organizations in China and Mongolia would have
more opportunities to work together.
The delegation visited China at the invitation of the International Department of the Central
Committee of the Communist Party of China.
Source: China Daily
CONTORTIONISTS AIM FOR UNESCO RECOGNITION
Mongolia is appealing to the United Nations to have Mongolian contortion included in the UNESCO
list of traditional cultural heritage.
Norovsambuu Budbazar, one of Mongolia's best-known contortion trainers, believes that Mongolians
have honed their contortion skills over hundreds of years, linking them to a local folk dance called
Biyelgee, which requires kneeling dancers to bend backwards until their upper backs nearly touch
the floor.
―There are records from the 17th century about the first theater called 'Sara Khukhuu' started by
Dazanravjaa. It's said that this theater had women who could move like they had no joints,‖ said
Norovsambuu, referring to a historical Buddhist lama respected as a saint, poet and playwright in
Mongolia.
But opinions differ on the historical legacy of Mongolian contortion. Nomintuya Baasankhuu, a
former contortionist and art historian at the Arts Council of Mongolia, believes contortion really
emerged as a performance act with the establishment of the Mongolian State Circus in 1941, which
introduced its first official contortionist, Tsend-ayush.
While Norovsambuu is happy for the recognition Mongolian contortion is gaining internationally, she
is increasingly worried that Mongolia will lose its claim to the art form because hundreds of
Mongolian contortionists now work as performers and trainers abroad. In 2011 Norovsambuu headed
a steering committee to nominate Mongolian contortion for inclusion in UNESCO's list of intangible
heritage, a U.N. Program that allocates funds to safeguard and raise awareness about the
significance cultural traditions around the globe. UNESCO has yet to make a decision on the
application. Baasankhuu from the Arts Council, who helped draft the UNESCO bid, believes that
though many people in the performance arts world already accept contortion as a Mongolian art
form, a nod from UNESCO would be a boost.
―UNESCO recognition can reassure [the world] that there is dedication from the people of Mongolia
to contortion and it should be recognized as a Mongolian heritage,‖ she said.
Source: Eurasianet
MALAYSIA COURT OVERTURNS MONGOLIA MODEL MURDER CONVICTIONS
A Malaysian court has overturned the convictions of two police officers for the murder of a

Mongolian woman linked to a senior political aide.
The woman, Altantuya Shaariibuu, a model, was shot dead and her body blown up with explosives in
2006. The two policemen, who were members of a high-security detail for leading Malaysians, were
subsequently sentenced to death in 2009. The Attorney General's office said it would appeal against
the ruling.
Correspondents say the acquittals are likely to revive allegations of a political conspiracy. A former
associate of Prime Minister Najib Razak was charged in connection with the murder but later
acquitted. The association defense analyst, Abdul Razak, had admitted to an affair with the victim.
Malaysia's opposition had repeatedly sought to link Najib to the case but in 2007 he denied any
connection, saying he had never met Shariibu. The two policemen, Azailah Hadri and Sirul Azhar
Umar, had been acquitted and discharged, their lawyer said.
―They are free men now,‖ defense lawyer Hazman Ahmad said.
Ordering the two men to be released, the court of appeals ruled that gaps in the evidence had been
overlooked in their trial. These included whether the officers had access to explosives, whether
they intended to kill her and whether they were even present at the murder site.
Source: BBC
MALAYSIAN PM ACCUSED OF CRIBBING MONGOLIAN SLOGAN
Malaysia came out with ―Endless Possibilities‖ as its new global theme months before Israel
released a similar tagline, the Prime Minister's Office has said amid a national uproar over claims
that the slogan had been plagiarized. But the shadow cast by the controversy is unlikely to lift soon
in the face of an online video that shows the exact same catchphrase used to sell Mongolia,
uploaded over a year ago.
―Malaysia's 'Endless Possibilities‖ nation branding concept was publicly launched in January 2012 at
the World Economic Forum annual meeting in Davos, Switzerland. The tourism Ministry of Israel
started using 'Endless Possibilities' to promote their conference and incentive market four months
later, in May 2013,‖ the Prime Minister's Office said in a statement.
The Prime Minister's Office has been asked by media for clarification after pro-establishment
bloggers kicked up a storm this week over the striking similarities between the Najib
administration‘s new global branding slogan and Israel's Ministry of Tourism's tagline ―Israel. One
Place. Endless Possibilities.‖ But soon after the Prime Minister's Office gave its explanation, the
Source was made aware that a video advertisement marketing Mongolia using the exact same
tagline had been uploaded onto YouTube nearly one year before Prime Minister Datuk Seri Najib
Razak first mentioned it in Davos. A short clip titled ―Mongolia Endless Possibilities by CNN‖ has
been available on the popular video-sharing website since it was uploaded on 19 February, 2012, by
a YouTube account to local stock broker and investment bank BDSec JSC. The campaign was said to
promote Mongolia as a tourism and investment destination.
Tourism Minister Datuk Seri Nazri Aziz said the new slogan was not an imitation of the Israeli effort,
but an extension of the iconic ―Malaysia Boleh!‖ tagline from the time of former Prime Minister Tun
Dr Mahathir Mohamad. The new tagline is to complement the existing ―1 Malaysia: People First.
Performance Now‖ and not to replace it, he said. Nazri said the branding venture had been
undertaken by a professional local publicist, with the ―Endless Possibilities‖ slogan being a
collective agreement by Najib and his Cabinet.
The ―Endless Possibilities‖ campaign is to be formally launched in Malaysia on 17 September.
Source: the Malay Mail
FORMER UNIVERSITY DIRECTOR ARRESTED
The State Investigation Office arrested a former university director for misappropriation of
university property on 19 August.
B. Byambaa gave away land owned by the Mongolian State University of Agriculture to Himon
Construction LLC as payment for a building with 20 apartments to house university employees in
addition to a direct payment of MNT 1.3 billion. He then allegedly gave those apartment to relatives
and friends. There is also some question to the titleholders of four of the apartments.

NARANTUUL FIRE DESTROYS GROCERY SECTION, KILLS 1
A fire burned down the grocery section of Narantuul market on Friday, 23 August, damaging 300
shops and killing one woman.
The Ulaanbaatar Metropolitan Police Department, Bayanzurkh Police Department and various other
policing departments were on duty to maintain order in the area, with a working group headed by
Bayanzurkh District Governor D. Purevdavaa overseeing the situation. Police are currently
conducting an investigation into the cause of the fire, with seven suspects currently in custody.
A dead body was revealed to be an unknown 53-year-old woman who died during the fire. Police
found a sum of USD 40,000 partially destroyed in the fire and MNT 6 million in cash on the first floor
of the wreckage. In the basement 395 kilograms of frozen beef and mutton was found. No one has
claimed the money.
The fire was first reported at 6:22 a.m. that Friday, with a fire crew arriving in seven minutes to
put out the fire by 11:30 a.m. the same day. Over 320 staff from the City Emergency Management
Office, Fire Brigades No. 10, 14, 18, 63, and 34 and the City Guard were at the scene for 72 hours
without rest.
The grocery section of Narantuul has been in operation since 1999. Investigators found that the
building did not meet standards and had not been approved by the State Commission. The rest of
the market was re-opened again the following Sunday.
Source: News.mn
MONGOL DERBY: 'LIKE THE TOUR DE FRANCE CROSSED WITH SNAKES AND LADDERS'
Nineteen-year-old Lara Prior-Palmer is the youngest winner—and first female victor—in the five-year
history of one of the world's most arduous contests, the Mongol Derby.
―It is the most extraordinary and bizarre race, it's like the Tour de France crossed with Snakes and
Ladders,‖ Palmer said from a victory party in Ulaanbaatar. ―It was really dramatic, it would be
first-degree heat and the horses would be sweating, then suddenly the air would cool with wind
blowing super hard.‖
The race, officially recognized by the Guinness Book of Records in 2011 as the world's lengthiest,
takes its inspiration from the Mongol Empire's pioneering postal service. The fearsome Chinggis
Khan, leader of the Mongols between 1162 and 1227, established and expanded the ―Ortoo.‖ It was
a messenger system which saw riders travel on horseback between outposts, stopping to either rest,
swap horses or pass the message onto another ride. Forty horse stations, ―urtuus‖ to use the
Mongolian name, line the race's 1,000-kilometer route.
Not that there is a course set out for the 30 competitors, who use anything from a compass, GPS or
good old-fashioned intuition to traverse the landscape between each resting spot. As the race's
official website puts it, ―this is no guided tour, or pony trek.‖
Each urtuus is manned by local nomads and furnished with tents, beds and food for man, woman,
and horse alike. Riders must change horses at each urtuus. A vet is stationed at each urtuus and if
the horse's heart rate is above a certain level, the rider is given a time penalty. There is also
extensive medical support for the jockeys, half of whom withdrew from the race before the finish
line this year.
―There were 30 at the beginning, but not at the end,‖ explained Prior-Palmer. ―My body got really
cross with me the day I finished, I slept all day.‖ I'm lucky because I'm young. Any problems I had
were really painful but didn't get that bad. I got really swollen ankles, chafing, a few other things,
blisters and other stuff.‖
Source: CNN

ANNOUNCEMENTS
DISCOVER MONGOLIA, 5-7 SEPTEMBER, ULAANBAATAR
The 11th annual Discover Mongolia international investors' forum will be held from 5 to 7 September
in Ulaanbaatar, Mongolia.
The forum is Mongolia's main venue for the widest international exchange on Mongolia's minerals
developments. Throughout its 10 years of history, the forum has become one of the hallmark events
in Mongolia's minerals exploration and development sector. The primary mission of the forum is to
support the development of the Mongolian mining sector by connecting people, providing
information, building networks, and realizes the importance of mining exploration sector and its
legal environment. It also acts as a bridge between the Mongolian government and private sector
investors through its "Government Hour" sessions.
BCM is a supporting organization again for this year‘s forum. For more information, log on
discovermongoliaforum.com.
___________________________________________
30TH ABA GENERAL MEETING AND CONFERENCE, 12-13 SEPTEMBER, ULAANBAATAR
The 30th Asian Bankers Association (ABA) General Meeting and Conference will be held from 12 to
13 September in Ulaanbaatar at the Blue Sky Hotel and Tower.
This year's conference will focus on the theme ―Asia: Growth Engine of the Global Economy.‖ The
two-day event aims to provide another platform for ABA members and invited experts to discuss
how major developments in the global and regional markets will impact on the Asian banking sector
and to exchange views on measures that the Asian banking sector can undertake to help sustain
growth and enable the Asia-Pacific region to play a catalytic role in the global economic growth and
recovery.
To register, complete the form and send it back to the Professional Conference Organizer c/o fax
+976 11 323581 or email abamongolia@mba.n no later than 20 August 2013. For more information
email nomindari@mba.mn or call +976 9917 7149.
___________________________________________
MINING MONGOLIA AND POWER AND RENEWABLE ENERGY MONGOLIA, 19-21 SEPTEMBER, UB
Mining Mongolia and Power and Renewable Energy Mongolia will be held from 19 to 21 September at
the Buyant-Ukhaa Sports Complex in Ulaanbaatar.
120 companies from 18 countries including pavilions from Australia, Canada, Korea and Germany
will display a wide range of technology, supplies and services for the mining and electric power
generation and transmission sector; on a scale never before seen in Mongolia. Inside and outside
displays, providing a first opportunity for buyers to see technology and learn about new mining and
electric engineering service from industry experts.
BCM is a supporting organization. Register at miningandconstructionmongolia.com or for priority
booking email mongolia@chinaallworld.com.
___________________________________________
TOP GOVERNMENT OFFICIALS TO ATTEND NAMBC INVESTORS CONFERENCE, 24-26 SEPTEMBER,
UB.
Minister of Environment and Green Development Sanjaasuren Oyun and Ulaanbaatar Mayor Erdene
Bat-Uul will be featured speakers at the North American Business Council's (NAMBC's) 16th Annual
Investors Conference, to be held from 24 to 26 September at the Kempinski Khan Palace Hotel in
Ulaanbaatar. Registration deadline is September 6
The investors conference will celebrate the 40th anniversary of Mongolia-Canada diplomatic
relations this year. Full simultaneous interpretation will be provided. This conference is the
longest-running international investors forum in or about Mongolia, held annually in Ulaanbaatar
since 1998.
Non-members from any country are welcome. For more information visit nambc.org. Find a

registration form here.
___________________________________________
MONGOLIAN MINING SUMMIT 2013, 29-31 OCTOBER, PERTH, AUSTRALIA
Mining IQ's Mongolian Mining Summit will be held at from 30 to 31 October at Crown Perth, Western
Australia, Australia.
The Mongolian Mining Summit is the perfect forum to bring together senior level executives from
Mongolia and Australia to further business relationships in the resources sector. Send your senior
executives to attend this summit to meet with CEOs, executive directors, MDs, VP, and GMs, and
heads of investment from Australian organizations interested in entering the Mongolian mining
industry.
Speakers include:
- Graeme Hancock, President and chief representative of Anglo American in Mongolia,
- Dr. Battsengel Gotov, Executive director and CEO of Mongolian Mining Corporation.
- Jim Dwyer, Executive director of the Business Council of Mongolia.
BCM is a supporting organization of this event. Register now and pay only AUD $999 for Mining and
Government Companies—register by 23 August 2013.
To register call +61 2 9229 1000 or email registration@iqpc.com.au.
___________________________________________
MONGOLIA INVESTMENT SUMMIT HONG KONG 2013, 18-20 NOVEMBER, HONG KONG
Bringing the best of Mongolia‘s investment opportunities to Asia‘s leading investment hub.
Featuring a line-up of Government representatives, business leaders and international investors, the
4th Annual Mongolia Investment Summit provides investors and companies seeking to do business in
Mongolia with a thorough update of Mongolia‘s investment and business climate and showcases its
actual investment opportunities. Key sectors covered include Mining and Mining Services,
Infrastructure, Energy, Financial Services, Retail, Real Estate, Construction and Agribusiness.
Mongolian companies and Mongolia-focused funds seeking to meet with investors and potential
business partners, should make attendance at Mongolia Investment Summit Hong Kong 2013 their
number one priority. Click here to download the latest brochure.
BCM is a supporting partner organization. BCM members will enjoy 15% discount; please quote
Priority Code 695BCM15D during registration.
___________________________________________
“MM TODAY” ON MNB-TV, FRIDAY, 19:00-19:10
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 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.
S. Oyun, Minister of Environment and Green Development, presentation at BCM monthly meeting on
May 27 added to Mongolian website, bcmongolia.org/mn/илтгэлүүд.
- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн
бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013

The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks
and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the
Business Council of Mongolia (BCM) and UB Risk Management Consulting:
• Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн
засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,
ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын
19
• Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,
Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ
ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага
хурал, 2013 оны 4 дүгээр сарын 19
• Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,
Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын
албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,
СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4
дүгээр сарын 19
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available:
• Joshua Sunga, Internship Program Director, AIESEC- "Youth Leadership Decvelopment" at the BCM
Monthly Meeting Aug 26. 2013
• G. Zorig, Country Manager, Tree Global Mongolia – ―Tree Global Mongolia Overview Presentation‖
at the BCM Monthly meeting Aug 26, 2013
• G. Saruul, Deputy CEO, Mongolian Stock Exchange – ―Securities Law Overview‖ at the BCM Monthly
meeting Aug 26, 2013
• Bilguun Ankhbayar, Chief Executive Officer, Mongolian Investment Banking Group LLC,
―MIBG Review‖, at the MSE-BCM Securities Law Overview Session, July 4, 2013
• Robert Rooks, Director, PwC Hong Kong, ―A brief Overview of Custody Services‖, at the MSE-BCM
Securities Law Overview Session, July 4, 2013
• Anthony Woolley, Senior Associate, Hogan Lovells, ―The Revised Securities Market Law‖, at the
MSE-BCM Securities Law Overview Session, July 4, 2013
• B. Saruul, Director General, Securities Department, Financial Regulatory Commission of Mongolia,
―Securities Markets Law – Path to Market Reforms‖, at the MSE-BCM Securities Law Overview
Session, July 4, 2013
• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting
April 22, 2013
• Brian White, Editor, The Mongolist – ―Analyzing Mongolian Politics from the "Middle Layer" at the
BCM Monthly meeting Apr 22, 2013
• Ch. Otgochuluu, Head of Strategic Policy and Planning Department, Ministry of Mining, ―Brief
introduction on mining policy‖ at the BCM monthly meeting Apr 22, 2013
• S. Bold, Chief Economist, Central Bank, ―The current flow of investment into Mongolia‖, at the
"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at
the Kempinski Hotel.
• S. Javkhlanbaatar, Foreign Investment Regulations and Registration Department Head, Ministry of
Economic Development of Mongolia, ―About regulation on FDI‖, at the "Foreign Investment in
Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.
• B. Amarsanaa, Academic Secretary of National Legal Institute, ―Legal issues of regulation of
foreign investment‖, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions"
conference on April 19, 2013 at the Kempinski Hotel.
• D. Gan-Ochir, Head of Financial Stability Council, Advisor to President of Central Bank,

―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• D. Achit-Erdene, CEO, MICC, ―On current state of equities foreign investment‖, at the "Foreign
Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the
Kempinski Hotel.
• Ruth Pulaski, Director Marketing & Development, American University of Mongolia – ―American
University of Mongolia: Integrating a Liberal Education Approach to Learning‖ at the BCM monthly
meeting, March 25, 2013
• B. Bayar, Managing Director, ELC LLC – ―Update on Legal Developments Regarding Foreign
Investment‖ at the BCM monthly meeting, March 25, 2013
• Tony Burchill, Australian Consul-General & Trade Commissioner, Austrade – ―The Business of Being
a Third Neighbor‖ at the BCM monthly meeting, March 25, 2013
Other presentations:
• Dr. Brian Fisher, Managing Director, BAEconomics, "Economic Impact of draft Minerals Law" at the
Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Dr. Ch. Khashchuluun, CEO of UBRM Consulting, ―Mongolia and Mining, The policy evolution:
What's the next?‖ at the Kempinski Hotel, March 18, 2013, Ulaanbaatar
• Martin Pow, Partner, Enterprise Risk Services and Learning Leader, Deloitte Onch LLC, ―Black
Swans: Fact or Fiction,‖ A different risk management philosophy at the BCM Risk Management
Working Group meeting, March 14, 2013
Please note the presentations from each of the BCM monthly meetings.
The ―Mongolia Reports‖ section includes the following:
- ―Mongolia Macro Flash‖, Adrienne Lui, Asia Pacific Economics Research, Citigroup Global Markets
Asia Ltd;
- ―Selected Macroeconomic Indicators for Mongolia, as of June 2013‖ by International Monetary
Fund;
- ―Polit Barometer April, 2013‖ by Sant Maral Foundation;
- ―Market Update‖ by Mandal General Insurance LLC;
- ―Annual Report 2012‖ by International Monetary Fund;
- ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International Monetary Fund;
- ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and Development (EBRD);
- ―Official statement of Oyu Tolgoi LLC in relation to information, data and facts related to Oyu
Tolgoi -―2013discussed during open session of the State Great Khural‖, dated 1 February, 2013‖;
- ―Mongolia Investment Climate Statement‖, by the Economic and Commercial Section of the U.S.
Embassy;
- ―Mongolia Foreign Labor Force Ratio for 2013‖ by Hogan Lovells International LLP;
- ―How Mongolia will perform in 2013?‖ by Mandal Asset Management;
- ―Mongolia Business Owner and CFO Survey result‖ by BDSec JSC;
- ―The fiscal regime for mining - a way forward‖ by IMF Fiscal Affairs Department;
- ―Taxes for Expatriates in Mongolia‖ by PricewaterhouseCoopers.
BCM's English website includes the ―Mongolia Business News‖ section where the 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 5th Anniversary BCM Gala dinner on November 5.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home

page for a consolidated account of the week‘s events.
___________________________________________
SOCIAL NETWORK WITH BCM
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-
MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in
the NewsWire with the community.
Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better
business environment in Mongolia today.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
http://twitter.com/#!/bcMongolia.
We have now 1,336 fans on our Facebook fans page, 1,332 connections on LinkedIn network, and
738 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn.
ECONOMIC INDICATORS

INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
July 31, 2013 *8.3% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 7.0% y-o-y, Ulaanbaatar city, July 31, 2013

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 – AUGUST 8, 2013
Currency Name Currency Rate
US dollar USD 1614.48
Euro EUR 2140.96
Japanese yen JPY 16.44
British pound GBP 2504.14
Hong Kong dollar HKD 206.68
Chinese Yuan CNY 263.80
Russian Ruble RUB 48.63
South Korean won KRW 1.44
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.

30.08.2013, NEWSWIRE, Issue 289

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30.08.2013, NEWSWIRE, Issue 289