04.04.2014, newswire, issue 319
TRANSCRIPT
BUSINESS COUNCIL of MONGOLIA NewsWire
www.bcmongolia.org [email protected]
Issue 319 – April 4, 2014
NEWS HIGHLIGHTS:
Business
Rio Tinto: Mongolian game theory;
Erdenes MGL to undergo reshuffle;
MMC seeks debt extension amid record-low coal prices;
Independent advisors back Xanadu's play on Kharmagtai copper project;
Dulaan Khar for sale at MNT 50 billion;
Bumrungrad Hospital acquires control of UB Songdo Hospital;
Three more wind farm projects to go online in Mongolia;
Hot-filling in cold, cold Mongolia;
UK retailer Karen Millen moves upmarket—all the way to Mongolia;
MUST to test electric cars;
Bicycle factory to open in May;
BCM rolls out Green Office initiative;
U.S. Embassy hosts Khaan Quest supplier conference;
M.A.D.'s April Fools.
Economy
8% mortgage program update;
Mongol Bank: FX auctions, treasury bills, 1-week bills;
Coal prices to be set by contracts between buyers and sellers;
Energy sector deficit climbs to MNT 65 billion;
Cashmere prices driven up by Chinese currency rate, says exchange official;
Crude oil production to grow 23%, says Petroleum Authority head;
Parliament to put a plug on superfluous investments;
Government to support fruit farms;
Chinggis bond finances production expansions in cashmere;
Diagnostic centers in 11 provinces opened;
Clinics look to inject overseas talent for cosmetic surgery;
Secondary school teachers to receive long-promised laptops;
MNT 74 to be spend on UB road work in 2014;
UB apartments average MNT 2.26 million per square meter;
Earthquake early warning system tested in UB;
Mongolia eyes wind energy potential;
WTO rules against China on rare earths export restrictions;
Miners favoring JVs over takeovers – PwC.
Politics
Parliament's spring session agenda;
Prime Minister sums up March projects and plans for April;
Foot and mouth quarantine to be lifted;
Vehicle weight limits in place to protect local roads;
Mongolia abstains from U.N. resolution declaring Crimea referendum invalid;
U.S. defense secretary to visit Mongolia;
Mongolia negotiates for eased visa regulations with Lithuania;
Belarus, Mongolia mull over student exchange programs;
Bayanzurkh residents approve land trade for apartments;
UB Procurement agency bans 27 companies from tender bidding;
Deputy Justice Minister sentenced for interfering with Interpol investigation;
Civil Aviation Authority tops public corruption research;
Activists' families to hunger strike;
The most dangerous coal mine in the world: Mongolia's illegal Nalaikh pits;
IFC supports secured transactions reform;
Prague zoo to send more Przewalski’s horses to Mongolia;
Let's kick start our coal policy.
ECONOMIC INDICATORS
MSE Top 20 Index by market Capitalization;
Foreign-listed Companies with Mongolian Assets;
Monthly Macroeconomic Overview – February 2014;
Inflation;
Central bank policy rate;
Currency rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank
International SOS
Invest Mongolia Agency
Mongolian Economy Magazine
Oxford Business Group
Milestone GRP
BUSINESS
RIO TINTO: MONGOLIAN GAME THEORY
It will produce for half a century or more. By the end of the 2010s, it may well make up almost a
third of Mongolia's economy. So it is very big. Whether the project will prove to be a beacon for
future foreign investment, or a warning against it, is another matter altogether.
There are reasons for Mongolia‘s government to keep delaying approval of further mining at Oyu
Tolgoi, then. It is one of the largest and highest-quality copper reserves in the world at a time when
ore grades are dropping at many of the world‘s flagship mines. It is conveniently located just 50
miles from the Chinese border. The Anglo-Australian producer Rio Tinto PLC has taken a big stake.
So why not move slowly, and get it right?
There are deadlines on USD 4 billion worth of project funding for underground expansion of Oyu
Tolgoi which arrive on Monday. But deadlines can be rolled when ―shareholder issues,‖ as Turquoise
Hill Resources Ltd. delicately calls them, arise. The Toronto-listed, Rio-controlled company has
two-thirds of the mine. The shareholder Turquoise Hill refers to is the government, owner of the
remaining third of the mine. The authorities in Ulaanbaatar want another feasibility study to be
finished before the underground work is approved. This is political, in some large part. The
government might prefer to wait for a calmer political climate, or for concessions from Rio, before
acting further.
Except that pressure is building on Mongolia‘s reputation among foreign investors. Bonds sold
abroad by the state in 2012 at a yield of 4.5 per cent now trade much higher, at 7 percent. If Oyu
Tolgoi really is a beacon, this is hardly the time to dim it. Rio can play waiting games here too. The
project remains a long-term option for it rather than an urgent priority, given that its workhorse
iron ore mines provide four-fifths of earnings. And as the commodity supercycle turns over, Rio
might be just as happy to bide its time and keep its capital spending under control. Game theory in
the Gobi desert, anyone?
Source: Financial Times
ERDENES MGL TO UNDERGO RESHUFFLE
State-owned mining holding company Erdenes MGL LLC will undergo restructuring as the company
prepares for an eventual public offering.
Erdenes MGL will restructure so that it falls in line with Singaporean corporate standards. That
includes board appointments so that 30 percent are foreign experts, 30 percent native Mongolian
managers, and 30 percent former senior government officials. O. Sainbuyan, the Erdenes MGL chief
executive officer, said the restructuring would take the company towards a public listing, although
it is no hurry since Mongolia's legal environment needs more fine-tuning and the current market is
not likely to be receptive enough to public offerings for mining companies.
Erdenes MGL represents the Mongolian government‘s interests in strategic mineral deposits and
exploration projects. Sainbuyan said Erdenes MGL has plans to put multiple mining projects into
operation this year.
Source: News.mn
MMC SEEKS DEBT EXTENSION AMID RECORD-LOW COAL PRICES
Mongolian Mining Corp. (MMC) is looking to extend the maturity of a note due today as expanding
supplies of coking coal push prices to record lows.
―It‘s still not finalized but definitely we will not be paying on the current maturity date,‖ said Chief
Executive Gotov Battsengel, speaking on March 28 about a promissory note issued to QGX Holdings
Ltd. in November 2012. ―They understand our position and we‘re telling them that ‗OK, one day
we‘ll pay but maybe not today.‘‖
The Ulaanbaatar-based miner has already amended the maturity of its USD 52.5 million promissory
note once before, postponing repayment from 22 November 2013, until today, according to the
company‘s annual results. Gotov declined to comment on the length of the latest extension, saying
it was still being discussed. MMC last year rescheduled payment of a second USD 52.5 million
promissory note until December 2014, the earnings announcement shows.
The company paid the latest coupon on USD 600 million of 8.875 percent dollar-denominated bonds
last week, Gotov said. The debt‘s interest rate is still more attractive than on loans from domestic
banks, he said. MMC plans to start building a 15-kilometer railway across the Chinese border in May
to reduce its transportation costs, according to Gotov. The miner agreed in October to work with
Shenhua Group Corp., Erdenes Tavan Tolgoi LLC and Tavan Tolgoi JSC on the project, according to a
company press release.
―I believe that any meaningful cost savings really will come from infrastructure,‖ he said. ―We will
continue to put an accent on improving efficiencies and maintaining our competitive cost
structure.‖
The rail link will cut the cost of transporting coal, which is now trucked into China, to USD 1 to USD
2 per ton from USD 8.8 last year. The consortium plans to finalize its agreement next month, said
Gotov, declining to provide an estimate of the project‘s expense because feasibility studies are
under way.
Source: Business Week
INDEPENDENT ADVISORS BACK XANADU'S PLAY ON KHARMAGTAI COPPER PROJECT
Xanadu Mines Ltd. has received support from independent experts for the proposed purchase of the
Kharmagtai porphyry copper-gold project for up to USD 10 million, noting a valuation ranging
between USD 15 million and USD 29 million.
Advisory firm Grant Thornton has concluded that the proposed transaction of USD 4 million and a
deferred consideration of USD 10 million for up to 18 months is ―fair and reasonable‖ to Xanadu‘s
non-associated shareholders. In preparing their report, Grant Thornton noted that the present value
of the total consideration to be paid by Mongol Metals LLCs falls towards the low end of the
valuation range of the Oyut Ulaan shares. Grant Thornton has also voiced favor for the guarantee of
Mongol Metals‘ obligations to pay deferred consideration and the free carry of a portion of
Lkhagvasuren Ganbayar‘s interest prior to the decision to mine.
On 3 February 2014, Xanadu announced that Mongolian Metals had entered into definitive
agreements with Oyu Tolgoi Ltd.—not to be confused with the Mongolian government-Rio Tinto PLC
joint venture Oyu Tolgoi LLC—to acquire a 90 percent interest in the shares of Oyut Ulaan LLC. Oyut
Ulaan's primary assets include the Kharmagtai prophyry copper-gold project and property, plant and
equipment including equipment related to exploration and core sampling. It also includes the
Kharmagtai mine camp, which has been winterized and is suitable for use year round. An
independent valuation report noted that three historic mineral resource estimates have been
undertaken at Kharmagtai that provide support to Xanadu‘s exploration target. Xanadu‘s
exploration activities have commenced including core re-logging, magnetic acquisition and
alteration analysis.
Xanadu is preparing for drilling to commence as soon as possible upon completion of the
transaction.
Source: Xanadu Mines Ltd.
DULAAN KHAR FOR SALE AT MNT 50 BILLION
The Dulaan Khar mine has been announced for sale for MNT 50 billion.
The Dulaan Khar zinc and lead mine is equipped with a plant able to process 300,000 tons of ore
concentrate a year annually. It is the biggest plant in Mongolia's western region, located in Nogoon
Nuur Soum, Bayan-Ulgii Aimag. The Chinese company that previously owned the mine planned to
process 84,000 tons of ore for sales of MNT 50 billion in 2014. Annual ore sales were projected at
MNT 170 billion by 2016.
Source: Zuunii Medee
BUMRUNGRAD HOSPITAL ACQUIRES CONTROL OF UB SONGDO HOSPITAL
Bumrungrad Hospital (BH) PLC, Thailand's second-largest listed hospital operator, will be counting
on Health Horizons Enterprises (HHE) Pte Ltd, its new investment arm, to spearhead overseas
investment in locations following its failed attempt to gain management control in Bumrungrad
Hospital International.
According to a BH source, the Thai hospital plans to dilute its 30 percent stake in BHI, which has
been instrumental to the group's international expansion. BHI used to hold a 40 percent stake in
Manila-based Asian Hospital (AHI), but later divested its stake. Health Horizons Enterprises was set
up last month in Singapore with registered capital of USD 20,000. HHE, in which BH holds an 80
percent stake, last Friday acquired a controlling interest in Ulaanbaatar Songdo Hospital, a leading
hospital in the Mongolian capital. HHE owns 100 percent of the common shares of Bumrungrad
Mongolia LLC (BML), which holds 51 percent of the common shares of Seoul Seniors Tower LLC
(SST). SST owns and operates Ulaanbaatar Songdo Hospital.
BML issued share capital of MNT 4.08 billion at a par value of MNT 1,000 per share. BH set capital
expenditures this year at 1.2 billion baht (USD 37 million) excluding mergers and acquisitions.
"Hospitals in South Korea and Singapore have targeted it for referrals," said Dennis Brown,
Bumrungrad‘s corporate chief executive. "Most Mongolians with serious medical problems who can
afford overseas treatment would be seen at UBSD [Songdu), since it is the leading private hospital
in the country. This gives us an excellent opportunity to work with UB Songdo Hospital to expand
their diagnostic and treatment services and coordinate tertiary referrals at the source."
BH remains upbeat about revenue growth of 10 to 15 percent this year from 14.65 billion baht (USD
452 million) in 2013. Foreign patients make up 61% of the company's revenue.
Source: Bangkok Post
THREE MORE WIND FARM PROJECTS TO GO ONLINE IN MONGOLIA
Mongolia stands to see three wind farm projects begin development this year, said the Mongolian
Wind Energy Association, as the country aims to generate a fifth of its energy from wind energy by
2020.
Aydiner Global LLC of Turkey plans to bring the 50 megawatt Choir wind farm project online in
central Gobisumber Aimag in 2016. Aydiner plans to obtain 50 to 70 percent of the project financing
costs of USD 95 million via bank loans. Also, the 52-megawatt Sainshand wind farm is scheduled to
go online late 2015. Ferrostaal Industrial Projects GmbH, a German industrial services company is
set to take a major stake in wind farm.
Last year, Mongolia opened its first wind farm, a 50 megawatt facility at Salkhit, located 70
kilometers south of Ulaanbaatar.
Source: Montsame
HOT-FILLING IN COLD, COLD MONGOLIA
Vitafit has installed hot-filling equipment from German manufacturing and bottling company Krones
as it moves to expand its soft-drink beverages operation in Mongolia.
Established in 1997 by three siblings who combined forces with a German investor, Vitafit now
controls a third of the soft-drink market share. The German investor has since sold his stake in the
company to the family and now competes alongside a major international competitor from Atlanta
with roughly equal sales. The remaining third of the market is divided up among several smaller
national vendors.
―As late as the 1990s, 80 to 90 percent of beverages with juice content were imported in Mongolia,
whereas nowadays the figure is in the low single-figure range,‖ said Director S. Bolorsaikhan, the
middle one of the three siblings.
In the summer of 2013, Vitafit expanded its equipment portfolio to include a hot-fill PET line from
Krones. It is the fastest production line employed by Vitafit, at 18,000 bottles an hour. Krones
provided a variety of equipment including a flash pasteurizer in the syrup kitchen and controls for
cleaning procedures. The first delivery package included four mold sets from Krones, for volumes
ranging between 250 and 1,250 milliliters. At the plant Krone's equipment is used to bottle eleven
different products, what are essentially the variants of the ―Multi‖ and ―Anar‖ brand juices in hot-
fill bottles
―For the closure, the market trend is moving towards narrower mouths‖, says Director Bolorsaikhan.
Lightweighting is another topical issue for Vitafit: ―We know we have to make the bottles lighter,
and that‘s one of our prioritized goals.‖
Vitafit now employs 700 workers and aims to expand its current annual sales of 80 million fills with
the Krones line. ―It depends on the market, of course‖, admits Bolorsaikhan noting that the market
could be saturated as soon as five years from today. ―This is why we are developing new brands
very quickly.‖
Source: Beverage Manager
UK RETAILER KAREN MILLEN MOVES UPMARKET—ALL THE WAY TO MONGOLIA
As booming fashion chain Karen Millen heads upmarket with new stores for New York‘s Fifth Avenue
and London‘s Knightsbridge, it comes as a surprise to hear chief executive Mike Shearwood also talk
enthusiastically about a launch in Ulaanbaatar.
―In emerging markets there is a growing number of independent women with access to money— and
they want to wear brands like ours. In any country with natural resources in abundance, there‘s
newly generated wealth,‖ he said.
Shearwood said 70 percent of the firm‘s GBP 300 million (USD 499.44 million) sales are overseas. It
trades in 66 countries and was among the first British fashion brands in Russia—still its second-
biggest market. In the long run, Karen Millen‘s 90 percent shareholder, Icelandic bank Kaupthing,
will almost certainly sell or list the firm. But Shearwood says that is not a short-term prospect. In
the meantime there is a question mark over some of its 48 UK stores and 40 concessions.
‗We‘re not in a position to have vanity stores. Our pockets aren‘t deep enough. They all have to
work and they all have to make money.‘
Including the one in Ulaanbaatar.
Source: This is Money
MUST TO TEST ELECTRIC CARS
The Mongolian University of Science and Technology (MUST) has partnered with Korea International
Cooperation Agency (KOICA) to test the use of electric cars in Mongolia. The joint project will see
six electric cars made by the United States' Vantage Vehicle International tested under Mongolia's
climate and terrain conditions. Vantage automobiles can travel up to a speed of 100 kilometers an
hour after four to six hours of charge.
Source: Montsame
BICYCLE FACTORY TO OPEN IN MAY
The company Nikel Ganbaa will open a factory for bicycle production in May.
Nikel Ganbaa plans to produce four different types of bicycles for young people and adults and
tricycles for young children. Consumer can choose the bicycle's body design and color before
purchasing, with adult-sized bicycles to sell for MNT 333,000.
Nikel Ganbaa's factory will be able to produce 100 bicycles per day with 70 workers. Their next plan
is to produce motorbikes, but must wait until national bike standards are approved by the Agency
for Standardization and Meteorology.
Source: Udriin Sonin
BCM ROLLS OUT GREEN OFFICE INITIATIVE
The Business Council of Mongolia's (BCM's) Environmental Working Group has initiated a pilot project
to have local businesses sort plastic, glass and can waste at their offices.
The working group will be partnering with various organizations such as the Arts Council of Mongolia
and the National University of Mongolia and the National Waste Recycling Association to design a
suitable bin for distribution. Agreements will be made for waste storage and collection, which will
be transported to centers of Secondary Raw Materials according to a fixed timetable. Once the pilot
project will be operational, more organizations with other recyclable waste will be encouraged to
join the waste separation for recycling and re-processing initiative.
The volume of solid waste amount at disposal sites in Ulaanbaatar is growing by 500,000 tons per
year, but only 3.2 to 6.4 percent of this waste is being re-processed while the rest goes to landfill
sites. Although the government spent MNT 7 billion in 2011 to build a waste recycling facility, the
plant was never built. Development of the waste plant was postponed to 2016, and Ulaanbaatar city
authorities are still working to attain land permissions. One waste separation and recycling facility
was built at the Narangiin Enger disposal site in December 2011, but was never put into operation
because the by-product it was supposed to produce was neither marketable nor practical for the
Mongolian setting.
Source: BCM
U.S. EMBASSY HOSTS KHAAN QUEST SUPPLIER CONFERENCE
The U.S. Embassy to Mongolia will host a conference at the Corporate Hotel in Ulaanbaatar 11 April
for vendors interested in supplying Khaan Quest 2014, the annual multi-national military exercise in
Mongolia. All businesses interested in supporting the exercise for services such as life support,
portable latrines, portable shower trailers, construction materials, heavy equipment, cell phone
vendors, magazine and printing services are encouraged to attend.
Source: NAMBC
M.A.D.'S APRIL FOOLS
M.A.D. Investment Solutions released its annual April Fools newsletter this year, presenting an
assortment of outlandish news stories on Mongolia.
―Dear Friends and Clients,‖ reads the news letter, ―Please find below our traditional 1st of April
news articles, we hope that the exciting new projects focused on Mongolia and explained in this
page, will shed a new light on the country and its limitless potential. Mongolia is truly a land where
anything can happen and some of the news below may not be as outlandish as initially thought...‖
Headlines included ―Ulaanbaatar‘s Ger District Residents to Temporarily Populate Chinese Ghost
Town of Ordos, only to be replaced by workers from Pyongyang,‖ ―Louis Vuitton to produce
monogrammed Gers,‖ ―Mongolia Announces Chinggis-Style Investor Roadshow,‖ and ―Mongolia and
Chili to work together on the world's first trans-world high speed tunnel.‖
M.A.D. provided a disclaimer to alert readers that the newsletter was in jest: ―The event or
situations it depicts are purely fictional and bear no resemblance to any real life situation.‖
Source: M.A.D. Investment Solutions
ECONOMY
8% MORTGAGE PROGRAM UPDATE
Commercial banks have continued to provide more refinanced and new housing mortgages for the
state-backed 8 percent mortgage program.
MNT 499.7 billion in existing mortgages loaned to 17,614 citizens were refinanced at 8 percent out
of MNT 845 billion in requests, as of 27 March. Also, MNT 930 billion in new mortgages loaned to
16,715 citizens were issued out of MNT 1 trillion in requests.
Source: Cover Mongolia
MONGOL BANK: FX AUCTIONS, TREASURY BILLS, 1-WEEK BILLS
The Bank of Mongolia on 3 April1 sold USD 16.4 million at auction for a closing rate of MNT
1,784.00. On the same day, the Bank of Mongolia received an equivalent of USD 73 million from
currency swap transactions with local banks.
On 2 April the central bank held its regular auction for 12-week maturity government treasury bills
at a face value MNT 30 billion out of MNT 63 billion, with each unit worth MNT 1 million. Treasury
bills were sold to commercial banks at a discounted price and with a weighted average yield of
10.54 percent.
Also on 2 April, the central bank auctioned one-week bills worth MNT 407.6 billion at a weighted
interest rate of 10.5 percent a year.
Source: Bank of Mongolia
COAL PRICES TO BE SET BY CONTRACTS BETWEEN BUYERS AND SELLERS
The Ministry of Mining on 1 April launched a new regulation that has coal prices set by contracts
concluded between buyers and suppliers.
The change is being implemented to mitigate losses from the prior practice of miners selling coal to
Chinese buyers at prices below the international market value. Five Mongolian companies currently
export coal to China.
Source: Montsame
ENERGY SECTOR DEFICIT CLIMBS TO MNT 65 BILLION
Mongolia is exploring ways to mitigate losses in energy generation as the sector faces a sum total of
MNT 65 billion in losses.
Last year energy producers introduced payment categories for customers to reduce debt by MNT 37
billion, but saw losses climb again due to the depreciation of the tugrug against the U.S. dollar
exchange rate. The Energy Regulation Committee on 31 March signed an agreement with the
Professional Inspection Department to explore ways to mitigate losses seen in the energy sector and
implement more controls over it. The department will begin by inspecting the financial records and
production standards of companies with special energy usage licenses.
Source: Zuunii Medee
CASHMERE PRICES DRIVEN UP BY CHINESE CURRENCY RATE, SAYS EXCHANGE OFFICIAL
The value of cashmere grew to MNT 89,000 per kilogram on the Mongolian Agricultural Exchange on
1 April.
The gain seen in the cost for unprocessed fur known as greasy cashmere was 30 percent over that of
last year, which was likely a result of an appreciation in foreign exchange rates, said the chief
executive officer of Agricultural Exchange Market, J. Erdenebat. Last year cashmere was valued at
CNY 300 a kilogram (MNT 68,000) compared with CHY 312 this year.
Mongolia has banned the export of cashmere that has not passed through the Agricultural Exchange
since 2013. Last year at the Agricultural Exchange Market 6,382 tons of cashmere was sold worth
MNT 385.2 billion.
Source: Unuudur
CRUDE OIL PRODUCTION TO GROW 23%, SAYS PETROLEUM AUTHORITY HEAD
Mongolia will extract 800,000 tons of crude oil this year, up 23 percent from the year before,
reported the Petroleum Authority head.
Mongolia has the current potential to produce 1.5 million tons of crude oil a year from PetroChina
Dachin Tamsag LLC's Toson-Uul oil field in Dornod Aimag, said G. Ulziburen. Mongolia registered 14
petroleum blocks from Toson-Uul with a resource of 119 million tons of crude oil in 2010.
Last year Mongolia imported 1.2 million tons of gasoline from Russia, China and South Korea.
Mongolia hopes to refine its own oil to ease its dependence on foreign imports.
Source: Unuudur
PARLIAMENT TO PUT A PLUG ON SUPERFLUOUS INVESTMENTS
Parliament ordered that responsibility be given to a government working group to draw up a
parliamentary resolution to amend the 2014 budget at a 6 March meeting of Parliament's Standing
Committee on budget on projects receiving state funding.
The National Audit Committee reported that Mongolia could fund 146 out of the 240 projects
audited, for total spending of MNT 518.3 billion in 2014. That would include the commissioning of
37 buildings at a cost of MNT 79.2 billion. MNT 121.6 billion in financing from the Development Bank
of Mongolia could be used to finance 15 projects for the construction of roads and bridges, said A.
Zangad, the NAO chief. Another 81 projects would have to be transferred to the 2015 budget for
funding, he recommended, while 23 projects worth MNT 24.7 billion could be cut.
―Now, people have to take appropriate action,‖ said Parliament Speaker Z. Enkhbold. ―A
construction company that started a building in November must purchase that building. The state
does not need that building. Construction companies who exceed the given terms have to be black-
listed and not allowed to build again.‖ He added that companies that provided incomplete
blueprints or construction plans would see their operations suspended and agencies should weed out
any civil servants that illegally helped companies win construction tenders.
Parliament froze 240 construction projects after the passage of the 2014 budget review following
three months of auditing of each of the projects. The NAO audited 272 projects for the construction
of roads, bridges, equipment, and land reclamation in 130 Soums in 21 provinces and nine districts
of Ulaanbaatar.
NAO recommended that Parliament raise the budget for construction, adding that Mongolia would
require a regulatory framework for planning investments. Oversight was needed in areas such as
technical review, contractor selection, construction, and financing, it said. Bureaucrats have taken
advantage of the lax controls, said the Zangad, allowing for inefficient spending and slow
operations.
Source: Montsame
GOVERNMENT TO SUPPORT FRUIT FARMS
The government will finance the construction of greenhouses and provide seeds to boost Mongolian
agriculture production as part of its wider initiative to drive domestic production toward increased
exports and to replace imports.
Farmers will receive sea buckthorn seeds from the government for its efforts to support production
of the tiny orange berry. The government also plans to finance the construction of winter
greenhouses for the growth of fruits such as apple, plum, cherry, raspberry, strawberry and
blackcurrant year round. The construction of winter solar-heated glasshouses in Ulaanbaatar for the
growth of plant cucumber, sweet pepper, leafy green vegetables, and fruits will also be receiving
government financing.
Source: Montsame
CHINGGIS BOND FINANCES PRODUCTION EXPANSIONS IN CASHMERE
Cashmere garments producer Exclusive saw production grow five-fold with the expansion of
operations financed by the ―Let's Create in Mongolia‖ initiative, said the company director.
―We got MNT 750 million from a low interest loan from the Chinggis bond,‖ said Director G.
Maytsetseg. ―With the financing we bought new sewing machines which increased our productivity
by five times.‖
Maytsetseg said her plan for the company was to establish a new factory in Uvs Aimag staffed by up
to 50 personnel that would supply demand in Mongolia's western region. However, she said for
standards to be raised Mongolia will have to continue training workers.
―Everybody talks as if sewing factories luck out with specialized sewers, but we have a lot of
vocational training schools. The problem is the schools and industries should work together to
provide more practice to students. The next step for the development of the sewing sector is to
establish a national cloth factory; then our production costs will be reduced.‖
Source: Udriin Sonin
DIAGNOSTIC CENTERS IN 11 PROVINCES OPENED
Prime Minister Norov Altankhuyag attended the opening ceremony in Khentii Aimag for of one of 11
diagnostic centers to open in Mongolia on 1 April.
Diagnostic centers opened in Arkhangai, Bayan-Ulgii, Bayankhongor, Dornogobi, Gobi-Altai,
Zavkhan, Selenge, Sukhbaatar, Uvs, Khuvsgul and Khentii Aimags. The Prime Minister's Office spent
MNT 50 billion from its budget for the repairs and purchase of equipment at the diagnostic centers.
MNT 148 million in repairs and MNT 1.2 billion in purchases and installations was made in the
Khentii diagnostic center alone. The new equipment bought is under three-year warranty.
The prime minister purchased 240 pieces of 27 types of machinery from Japan, Korea, France,
Germany, Italy, China and Brazil. Results from the analyses made at these provincial diagnostic
centers can be brought to hospitals in Ulaanbaatar for further analysis from specialist doctors in the
capital.
Source: Unuudur
CLINICS LOOK TO INJECT OVERSEAS TALENT FOR COSMETIC SURGERY
Greater competition and the development of standards would help provide greater faith in
Mongolia's cosmetic surgery practices, said a surgeon based in Ulaanbaatar.
―Unfortunately, here [in Mongolia] there are no specialists and schools in this field of medical
science,‖ said D. Todnombat, operating surgeon of Tod Kannam Cosmetic Surgery Hospital.
Introducing greater quality can address complaints of mistakes made during surgical procedures
made in Mongolia via a more competitive market and improved standards, said Todnombat, whose
hospital provides cosmetic surgery services such as re-constructive surgery, skin-tightening
injections, and face lifts. He said his practice hoped to employ foreign specialists for procedures
such as re-constructive surgery to the jaw or cheekbone or repair birth defects.
―These difficulties are faced because of the lack of specialists and equipment. So, we have to
prepare trained staff and specialists overseas.‖
Source: UB Post
SECONDARY SCHOOL TEACHERS TO RECEIVE LONG-PROMISED LAPTOPS
The Education Ministry is set to install computer labs and distribute laptops for all 26,000 of
Mongolia's secondary school teachers by September this year, said a ministry official.
The government will provide some 30,000 computers in total to teachers for the laptop distribution
program as well as an initiative to establish a computer lab stocked with 18 computers at secondary
schools, said L. Luvsanjamts, head of the monitoring and internal audit department. The
government plans to sign a final agreement with the World Bank to provide the USD 45.6 million in
funding needed for the project.
A similar program that would have provided laptop computers to teachers was initiated during the
last government but was never completed.
Source: Unuudur
MNT 74 BILLION TO BE SPEND ON UB ROAD WORK IN 2014
MNT 74.13 billion will be spent on road work in Ulaanbaatar to run between 1 April and 5 July this
year.
Construction teams will build 40.4 kilometers of new roads, in addition to 54.9 kilometers of roads
to be widened. Repairs will be made to 243.2 meters of bridges and water drains will be installed at
nine locations, one car tunnel, two pedestrian crossing bridges. Also to be built is 1.84 kilometers of
stone roads.
Ulaanbaatar will provide MNT 34 billion in total spending this year, with MNT 40 billion being rolled
over from last year's budget. Trade and Development Bank (TDB) of Mongolia LLC and foreign
lenders will reportedly provide the remaining financing at a low interest rate.
Source: Udriin Sonin
UB APARTMENTS AVERAGE MNT 2.26 MILLION PER SQUARE METER
Ulaanbaatar saw real estate prices fall slightly in two of its main central districts, according a
Master Properties survey.
Master Properties reported that apartment prices in Chingeltei District decreased 0.5 percent and
0.6 percent in Sukhbaatar District. Prices fell even more slightly in Nalaikh by 0.1 percent.
Prices grew, however, for apartment further away from the city center. Songinokhairkhan District
saw apartment prices spike 9.6 percent, 4.3 percent in Khan-Uul District, 3.7 percent in Bayangol
District, and 3 percent in Bayanzurkh District. Prices increased 2.7 percent on average from
February, at an average price of MNT 2.26 million per square meter.
Source: Udriin Sonin
EARTHQUAKE EARLY WARNING SYSTEM TESTED IN UB
The National Emergency Management Agency (NEMA) on 27 March tested its new earthquake early
warning system in Ulaanbaatar
Sirens were sounded at 16:00 that day while authorities instructed citizens on how to protect
themselves during an earthquake. This year's drill was NEMA‘s third, but was the first time it
employed a new early warning system for earthquakes installed three months before for a total cost
of MNT 11.6 billion. South Korea assisted Mongolia in making the upgrades and built 40 new siren
towers on the roofs of tall buildings throughout the city. The training included broadcasts by NEMA
officials, as well as the employment of emergency management vehicles, police cars and ambulance
to outlying districts of the city without siren towers.
Additional testing on Saturday proved that the siren towers were fully operational. The system
allows NEMA to deliver warnings to siren towers, Mongolian National Broadcasting (MNB), radio
stations, and the telecoms companies Mobicom, Skytel, Unitel, G-Mobile and Orbitnet.
Source: UB Post
MONGOLIA EYES WIND ENERGY POTENTIAL
With demand for electricity on the rise, and a national drive to boost renewable power production
gathering strength, investor interest in Mongolia‘s fledgling wind energy industry looks set to grow.
The government aims for renewable sources to account for at least 20 percent of power generation
capacity by 2020, up from three percent today. It is also keen to export renewable energy. On
February 19, the German firm Ferrostaal Industrial Projects announced plans to invest 120 million
USD in the Sainshand wind farm project, which is located in Mongolia‘s Gobi Desert. Operations at
the wind farm, Mongolia‘s second such venture, are expected to begin in late 2015. The country‘s
first wind energy facility, a 50-MW farm located to the south of the capital in Salkhit, is run by
Clean Energy, a renewable energy company jointly owned by Mongolian conglomerate Newcom
Group, General Electric Pacific, the European Bank for Reconstruction and Development, and the
Netherlands Development Finance Company. The 120 million USD venture began operating in mid-
2013 and feeds into the national grid.
Wind and solar combined account for around five percent of Mongolia‘s 955-megawatt installed
capacity, Ministry of Energy figures show. With the ministry forecasting peak demand to reach 2,321
megawatts by 2020, the country will require significant investments in generation capacity over the
coming several years.
Mongolia has set its sights on carving a niche as a distribution center for renewable energy for
nations such as China. And Mongolia‘s drive to diversify its energy sources stems from both rising
demand and an awareness of the damage inflicted on the country‘s ecosystem by fossil fuels. Many
Mongolians use coal for household heating, which exacerbates the problem. The World Bank
estimates that pollution rates in the capital of Ulaanbaatar are among the highest in the world.
A drive to boost growth across Mongolia‘s renewable energy sector will help address these issues,
while providing opportunities for companies along the supply and management chain.
Source: Oxford Business Group
WTO RULES AGAINST CHINA ON RARE EARTHS EXPORT RESTRICTIONS
The World Trade Organization (WTO) has ruled against China and its export restrictions on rare
minerals vital to the production of smartphones, cameras, steel and hybrid cars in a significant
victory for the US, EU, and Japan—a decision that has broader implications on nations' sovereignty
over minerals.
―Today‘s ruling by the WTO on rare earths shows that no one country can hoard its raw materials
from the global marketplace at the expense of its other WTO partners,‖ said Karel De Gucht, EU
trade commissioner.
China accounts for 90 percent of the world‘s production of the 17 elements—including lanthanum,
tungsten, neodymium and molybdenum—collectively known as rare earths. Beijing‘s export
restriction, first introduced in 2009, caused a surge in prices around the world in 2011. The cost of
some rare earths soared by as much as 500 percent amid fears of global shortages. The Chinese
restrictions also prompted a flurry of new investment in rare earths mines in places such as the
United States and Australia, aimed at breaking Beijing‘s stranglehold. Some have looked to a
Mongolia as a potential source for some rare earths.
The China ruling has broader implications, however. The WTO panel said it had sought to reconcile
the U.N. principle of countries‘ ―permanent sovereignty‖ over natural resources with global trade
rules. It concluded that once they were extracted from the ground and put on to the market for
sale, natural resources should be subject to WTO rules. This could make it harder for other
countries to impose or maintain export restrictions on raw materials. The latest finding follows an
earlier ruling in which the WTO said China‘s export restrictions on nine more common commodities,
including bauxite and zinc, violated global trade rules. It was widely seen as laying the groundwork
for the rare earths case, especially as China has since complied with the ruling.
Wednesday‘s WTO ruling—part of which was first reported in October—was greeted with dismay by
an official at the Chinese Society for Rare Earths, which helps set government policy for the
minerals. ―I think China will definitely appeal because the WTO ruling is unfair,‖ said a member of
the Chinese Society for Rare Earths [Source omits the name of the speaker -ed].
Source: Financial Times
MINERS FAVORING JVS OVER TAKEOVERS - PWC
A PricewaterhouseCoopers (PwC) report released this week suggests that, in the coming year,
miners will avoid outright takeovers and seek safer transactions, such as joint ventures (JVs).
―In recent years, JVs have taken on special significance given the restriction in availability of
capital and debt finance, increased capital costs for projects, and treat complexity of mining prices
in an environment of heightened commodity price volatility,‖ said PwC in its report.
PwC suggested that while there is a derisking taking place across the global mining industries,
companies still need to grow their reserves and secure future production. By advancing a joint
venture project, individuals don‘t have to assume all risks associated with making a full acquisition
on their own. However, the report observed that there are still potential risks for mining and
exploration companies to consider when entering into a joint venture.
―For example, when entering into a JV, companies run a significant risk that the project will not
proceed due to the involvement of two boards. There is a greater potential for disagreement in
such situations, which can lead to delays in project planning and execution.‖
PwC Canada‘s Mining Deals leader, Stephen Mullowney, observed, ―When a 50-50 JV is formed,
there is usually a lot of discussions on who retain the ultimate veto on major decisions such as mine
plans, capex spend and capital calls.‖ He added, ―As there is usually a dilution mechanism, this
can lead to potential problems down road if one party is not able to make capital calls.‖
The report further advised more diversity in investment partners, such as sovereign wealth funds
and other downstream players, for miners wishing to retain control of a mining project. It also
recommended private-equity investments. ―The large amounts of capital raised by dedicated
private equity funds in 2013 will need to be deployed in the near future or risk being returned to
shareholders. Co-investing with a major will provide private equity with both technical expertise as
well as a possible exit.‖
Source: Mine Web
POLITICS
PARLIAMENT'S SPRING SESSION AGENDA
The following is Parliament's agenda for the spring session scheduled to begin 7 April:.
1. "Approval of the 2013 budget execution of Mongolia," 2013 consolidated financial report of the
government of Mongolia, draft resolution of the Parliament;
2. "2015 Budget Statement Outline and Projected 2016-2017 Budget‖ draft law;
3. "Measures on Economic Activation" draft resolution of Parliament;
4. "Approval of the 2015 Main Guidelines of Economic and Social Development" draft resolution of
Parliament;
5. Implementation of the 2013 guideline of economic and social development;
6. "Approval of a Projects and Programs to be funded by the Development Bank" draft resolution of
Parliament;
7. Draft Law on Land (revised);
8. "Approval of the Green Development Concept and Medium-term Program" draft resolution of
Parliament;
9. Amendment to the Law on the Prohibition of Mineral Exploration and Mining Operations at the
Headwaters of Rivers, Water Protection Zones and Forested Areas;
10. Draft Law on Index-based Livestock Insurance;
11. Amendment to the Law on Civil Service;
12. Draft Law on Joint Pensions;
13. Draft Law on Investigation Services;
14. Draft law on Criminal Procedures;
15. Draft Law on the Legal Status of Law Enforcement Officers;
16. Draft Law on Fire Arms (revised);
17. Draft Law on the State Registration of Legal Entities (revised);
18. Draft Law on the Restriction on State Business;
19. Draft Law on Transparent Accounts;
20. "Approval of the Government Policy on the Auto Roads" draft resolution of Parliament;
21. Draft Law on Trade;
22. Amendment to the Law on the Government;
23. Draft Law on Pre-school Education and amendment to the Law on Education;
24. Draft Law on Act of Grace;
25. Other
Source: Udriin Sonin
PRIME MINISTER SUMS UP MARCH PROJECTS AND PLANS FOR APRIL
Prime Minister Norov Altankhuyag discussed efforts by government to encourage industrial
production in Mongolia during his weekly address to the press last week on Thursday.
Altankhuyag said he was working in February and March to introduce projects that aim to increase
Mongolia's exports. He said he planned to meet with delegates from multiple sectors of the
economy on this matter and that those businesses or individuals whose projects were approved for a
national endorsement program had been approved by commercial banks to receive loans from the
Development Bank of Mongolia.
Mongolia is currently importing most of its construction materials as well as many consumer goods
from abroad. The fifth Mongolian Economic Forum held last week focused on creating Mongolian
production while last year's focused on how to define a national brand. Many businesses such as
textile companies have received loans using proceeds from the 2012 USD 1.5 billion Chinggis bond.
Many projects are also planned for April for worker trainings.
Source: UB Post
FOOT AND MOUTH QUARANTINE TO BE LIFTED
Authorities have lifted the quarantine set in Khentii, Dornod and Sukhbaatar Aimags that were set
in place to curb the spread of foot-and-mouth disease.
The State Emergency Commission organized a meeting to discuss the current situation regarding
foot-and-mouth disease in the eastern provinces and what measures should be taken to prevent the
spread of the disease on 2 April. They ordered that domestic migration is prohibited for at least two
months and the transport of animal products will be allowed if treated.
Thirteen counties in three provinces have seen cases of foot-and-mouth since the first infection was
discovered in Ongon Soum, Sukhbaatar Aimag. So far, 3,454 cattle have been destroyed and 4.5
million livestock have been vaccinated because of infections. No cattle have been found to carry
the disease in the past 11 to 41 days from the publishing of this article on 3 April. Despite the lifting
of the quarantines, restrictions will still be in place by the Dornogobi Emergency Commission at
Ikhkhet and Dalanjargalan Soums.
Source: News.mn
VEHICLE WEIGHT LIMITS IN PLACE TO PROTECT LOCAL ROADS
The Road Authority of Mongolia has put in place two annual month-long bans on the use of heavy
trucks and machinery on its roads to maintain road integrity.
The temporary bans will run between 20 March to 20 April and 20 October to 20 November each
year. The ruling is based on the fact that heavy vehicles can damage paved roads during thaw in
spring and frost in autumn.
In 2008 Ulaanbaatar passed a resolution that put in place an 18-ton weight limit for double-cab
trailers, and 24 tons for triple-cabs.
Source: News.mn
MONGOLIA ABSTAINS FROM U.N. RESOLUTION DECLARING CRIMEA REFERENDUM INVALID
Mongolia chose to abstain from a U.N. vote that saw Ukraine and its backers win support from little
more than half of members of the U.N. General Assembly to declare invalid Crimea‘s referendum to
secede.
The 193-member General Assembly voted 100-11 on 27 March to pass a non-binding resolution
describing the Crimean referendum as ―having no validity‖ and calling on all states and agencies to
not recognize ―any alteration of the status‖ of Crimea, as Russia wielded diplomatic and economic
pressure for 48 members to abstain and 24 to cast no ballot. While the resolution makes no mention
of Russia for its invasion or annexation of the peninsula, the 46 sponsors sought to win a clear
majority as a symbol of the country‘s isolation from the international community. Instead, many
members averted a commitment after aggressive lobbying by Russia.
The resolution‘s adoption could be cited as proof against Russian claims for international
recognition of Crimea as Russian territory. Russian Ambassador to the United Nations Vitaly Churkin
framed the crisis in Ukraine as provocation by the United States and Europe in seeking to break
enduring ties between Crimea and Russia. The Russian envoy called today‘s results ―a moral
victory‖ for his nation‘s diplomacy. ‗The fact that almost half of the members of the United Nations
refused to support this resolution, I think, is very encouraging,‘‘ he said.
Armenia, Belarus, Bolivia, Cuba, North Korea, Nicaragua, Sudan, Syria, Venezuela and Zimbabwe
joined Russia in objecting to the text, while Serbia, Iran, Bosnia and Yemen didn‘t cast ballots. The
abstentions included China, Egypt, India, Iraq, Mongolia, Myanmar and other African nations. China
said its abstention stemmed from its longstanding foreign policy of not getting involved in internal
affairs of other nations and respecting the sovereignty and territorial integrity of all countries.
Ukraine turned to the General Assembly to send ―an essential message that the international
community will not allow what has happened in Crimea to set a precedent for further challenges to
our rules-based international framework,‖ Ukrainian Foreign Minister Andriy Deshchytsia told the
General Assembly before the vote. ―I am convinced that a strong vote today will help deter further
aggressive moves.‖
Source: Bloomberg
U.S. DEFENSE SECRETARY TO VISIT MONGOLIA
U.S. Defense Secretary Chuck Hagel will make a stop to Mongolia while make a tour through Asia to
convene the first U.S.-hosted meeting of the Association of Southeast Asian Nations, Defense
Department Press Secretary Navy Rear Admiral John Kirby said today in a press briefing.
Following the meeting, Hagel will travel to the Asia-Pacific region for visits with his counterparts in
Japan, China and Mongolia, Kirby added. The trip will be Hagel‘s fourth official visit to the Asia-
Pacific, a region of growing importance and emphasis for U.S. foreign policy and its defense
strategy, the press secretary said.
―The secretary extended this invitation to ASEAN ministers in his speech at the Shangri-La Dialogue
last June [and] participated in the ASEAN Defense Ministers Meeting-Plus last August,‖ Kirby told
reporters.
Increased and expanded DOD engagement with ASEAN members has been a priority for Hagel, the
admiral noted. Kirby said the ASEAN meeting will identify ways to strengthen multilateral security
cooperation in the region and build more robust partnerships between military and civilian agencies
to improve humanitarian assistance and disaster relief efforts.
Hagel‘s final stop will be in Mongolia, the first visit there by a U.S. defense secretary in nearly 10
years. Mongolia is becoming a more important security partner for the United States, having
deployed forces to Iraq and Afghanistan and in peacekeeping operations worldwide, Kirby said, and
during the visit Hagel will thank Mongolia for its contributions and discuss ways to enhance future
U.S.-Mongolian cooperation. Kirby said that, as one of the world‘s fastest-growing economies,
Mongolia has a growing stake in stability across the Asia-Pacific region and he expects Hagel and the
leaders there also to discuss regional security matters.
Source: Eurasia Review
MONGOLIA NEGOTIATES FOR EASED VISA REGULATIONS WITH LITHUANIA
Mongolia signed a memorandum of understanding with Lithuania for eased visa regulations between
their citizens.
Deputy Foreign Minister D. Gankhuyag visited Lithuania 28 March, where the memorandum he
signed provided visa exemptions to official and diplomatic passport holders. Also negotiated upon
were issues of bilateral cooperation on politics, the economy, roads and transport, as well as
sports. Parties also emphasized the importance of collaborating in the agricultural sector for the
benefit of both their economies. Mongolian and Lithuania also agreed to seek mutual cooperation in
the scope of President Tsakhia Elbegdorj's ―From Big Government to Smart Government‖ initiative.
Source: News.mn
BELARUS, MONGOLIA MULL OVER STUDENT EXCHANGE PROGRAMS
The House of Representatives of the National Assembly of Belarus plans to adopt a bill on the
ratification of the intergovernmental agreement with Mongolia on cooperation in education,
reported a member of the House.
The agreement envisages an exchange in students and postgraduates in the equivalent number (up
to three people) for university studies, said Deputy Chairperson of the House of Representatives‘
permanent commission on education, culture and science Taisa Danilevich. The hosting party
provides free education and scholarships in the amount set by the national legislation of the
country. The countries will agree on such exchanges before 15 May each year. If necessary, students
and postgraduates will get one-year, paid language courses.
The bill would also provide an exchange of experience in planning the national education system,
the organization of joint conferences, seminars, symposiums and academic competitions. The
agreement also foresees an exchange of delegations once in two years to discuss the results and
cooperation prospects.
Source: Belarusian Telegraph Agency
BAYANZURKH RESIDENTS APPROVE LAND TRADE FOR APARTMENTS
Residents of the Bayanzurkh District of Ulaanbaatar have granted a construction company the rights
to build apartment buildings in an area of 110 acres in return for apartments to those residents.
Bayanzurkh's 12th Khoroo residents met with representatives of Jiguur Grand Group Company to
discuss the trade of 0.07 hectares of land for 120 square-meter apartments. The ger district area
will be cleared to make way for new apartment buildings. Jiguur Grand estimates that construction
will require four to five years to build the apartments for the 1,250 families while developing the
entire 110-acre area would take between 15 and 20 years.
The Ulaanbaatar City Council is expected to make a final decision on this project, while 92 percent
of the area residents support the apartment project.
Source: Udriin Sonin
UB PROCUREMENT AGENCY BANS 27 COMPANIES FROM TENDER BIDDING
The Ulaanbaatar Procurement Agency has banned 27 companies from participating in tenders
bidding for city projects for three years.
The banned companies were found to have submitted false information when participating in
tender bids. Also to be announced are the names of officials responsible for selecting those
companies and monitoring the procurement.
Source: Unuudur
DEPUTY JUSTICE MINISTER SENTENCED FOR INTERFERING WITH INTERPOL INVESTIGATION
Deputy Justice Minister E. Erdenejamiyan on 31 March was sentenced to two years of community
service and fines 60 times that of the minimum wage after being found guilty of interfering with
Mongolia's pursuit of the sister of the formerly incarcerated former president Nambar Enkhbayar.
The Independent Authority Against Corruption opened an investigation because of a letter sent by
the Deputy Justice Minister to Interpol last year that asked that the agency discontinue its
investigation into Enkhbaybar's sister Nambar Enkhtuya and her assistant B. Khuyag. Interpol
responded by halting its investigation but later resumed its investigation, per Mongolia's request.
The Secretary General of the Mongolian People`s Revolutionary Party, G. Shiilegdamba, Tuesday
during a press conference voiced disagreement with the court's decision and announced an intention
to appeal.
Source: News.mn
CIVIL AVIATION AUTHORITY TOPS PUBLIC CORRUPTION RESEARCH
Joint research conducted by the Independent Agency Against Corruption and private law firm MDS
reveals that one in every 200 civil servants is guilty of corruption.
The research involving 50 state agencies found that 24 civil servants were connected to 16
corruption cases, with the Civil Aviation Authority leading the pack with five personnel found to be
involved in corruption scandals. Other agencies where civil servants were found to be involved in
cases of corruption were the Mineral Resource Authority, the Petroleum Authority, and the General
Department of Taxation.
The report suggested that the lack of investment by state agencies in combating corruption was a
main reason that corruption remains strong.
Source: News.mn
ACTIVISTS' FAMILIES TO HUNGER STRIKE
The families of the Gal Undesten environmental members sent to prison on charges of firing gun
shots during a protest and placing a bomb are planning to protest their prison sentences with a
hunger strike.
An appeal is scheduled to be heard by the Ulaanbaatar Appellate Court 8 April for members of Gal
Undesten (tr: Fire nation). A court sentenced the group's leader, Ts. Munkhbayar, and his followers
to 21 and half years in prison on counts of a gunshot in a public space, a bomb set in state-
protected area, assault to civil servants, and threatening public security.
Family members of the environmentalists have called a hunger strike to be staged at the front of
the court building if it does not offer those sentenced a plea bargain.
―I believe the Appellate Court panel will be fair and not be influenced by State Prosecutor General
D. Dorligjav,‖ said the wife of convicted activist Z. Enkhsaikhan Tuesday. ―If the Appeal Court does
not offer a plea to our husbands, fathers and sons, we will call a hunger strike. We will do it until
justice wins.‖
The environmental group in September last year protested proposed amendments to be made to the
Law on the Prohibition of Mineral Exploration and Mining Operations at the Headwaters of Rivers,
Protected Zones of Water Reservoirs and Forested Areas. The protest ended up with the arrest of
key members of the group. The two-day trial last January ended with a decision to sentence Ts.
Munkhbayar, G. Boldbaatar, D. Tumurbaatar and J. Ganbold each to 21 years and six months in jail
and two years to M. Munkhbold. O. Sambuuyondon and B. Gantulga, who also stood trial, were
acquitted.
Source: News.mn
THE MOST DANGEROUS COAL MINE IN THE WORLD: MONGOLIA'S ILLEGAL NALAIKH PITS
Deep inside the earth, the eyes of blackened miners shimmer under spotlights as they hammer
endlessly upon rock, tapping the vein of Mongolia's largest illegal coal mine. The Nalaikh mine, 40
kilometers (25 miles) from Ulaanbaatar, is both a vision from the past and a rogue operation from
the present.
They risk their lives every time they go into the pits. Frequently, theirs is a losing bet. Every year,
about a dozen miners die here. That's the official figure. In reality, nobody knows how many people
are buried in the makeshift pits, as Nalaikh largely lies beyond the authorities' control.
Up to 2,000 "hand miners" work at Nalaikh from October to May supplying around 70 percent of the
one million tons of coal burned every year in Ulaanbaatar‘s ger districts. The smoke has turned the
city, once known for its blue skies, into one of the world's most polluted. Famous for its high
calorific value, Nalaikh coal is sold at any corner in 15-kilogram yellow bags for no more than MNT
2,000. It's a huge black market trade that happens mostly in plain view.
―Authorities just cannot control it,‖ middleman D. Khashkhuu said with a grin on his face. He had
just paid the usual MNT 5,000 bribe to a police patrol that stopped his truck loaded with coal along
the highway to Ulaanbaatar.
Soon after shutting down the state mine, authorities divided it into small plots and privatized them.
But demand from the capital's burgeoning ger districts kept growing, and the government failed to
crack down on the expansion of illegal mining at Nalaikh. With monthly earnings reaching MNT 1.5
million, Nalaikh's miners make far more money than most Mongolians—the national average income
is MNT 631,000—during the winter months.
With winter nearly over, Ganzorig and his fellow miners will soon seal off their mine shafts and
empty out the site, leaving behind their old picks and mountains of trash. But they may not need
return. The mine site will not be utterly abandoned, as engineers from a Mongolian private mining
company, Tsagaan Shonkhoor, are expected to camp out here while conducting surveys for its
purchase.
Source: International Business Times
IFC SUPPORTS SECURED TRANSACTIONS REFORM
International Finance Corp. (IFC), a member of the World Bank Group, has signed a cooperation
agreement with the Ministry of Justice to help reform the country‘s secured transactions system, a
move that aims to unlock affordable financing for micro, small, and medium enterprises, and help
them grow.
Access to finance is a challenge faced by many smaller Mongolian businesses, which struggle to get
bank loans as they do not own land or buildings that can be easily accepted as collateral. Because
of the lack of a centralized registry system and functioning laws, banks are reluctant to take
movable assets, such as accounts receivable, inventory, and equipment, as collateral. The reform
will pave the way for Mongolian lenders to provide movable-asset financing to smaller businesses.
―Supporting small and medium enterprise development is one of the government‘s top priorities,‖
said Bayartsetseg Jigmiddash state secretary of the Ministry of Justice. ―With IFC‘s help, we will be
able to build a modern secured transactions system, which is a critical financial infrastructure that
helps small businesses expand and create jobs.‖
IFC and the Ministry of Justice will collaborate to establish a proper legal framework for secured
transactions through a new Pledge Law, develop an online registry, and work with the Mongolian
Bankers Association to raise awareness and train industry professionals. This new project in
Mongolia is carried out in partnership with Japan‘s Ministry of Finance, the Swiss State Secretariat
for Economic Affairs, and the Canada Department of Foreign Affairs, Trade and Development.
Previously, IFC has helped develop modern secured financing systems in more than 20 emerging
markets including China, Ghana, and Vietnam. In China alone, more than USD 3 trillion in loans
backed by movable assets as security have been granted between 2007 and 2011 and many of the
beneficiaries are small businesses.
In addition to investments across multiple sectors in Mongolia, IFC‘s Advisory Services Program has
worked closely with the Mongolian government to support the development of company law and
corporate governance, food safety law, investment law, sustainable banking, and business
inspection and permit reforms.
Source: International Finance Corp.
PRAGUE ZOO TO SEND MORE PRZEWALSKI‘S HORSES TO MONGOLIA
The Prague zoo plans to transfer 4 more Przewalski‘s horses to Mongolia, their country of origin, in
June and release them to the wild, the zoo‘s director, Miroslav Bobek, told journalists today.
The zoo, which focuses on breeding the dramatically endangered Przewalski‘s horse, has released a
total of 12 of them in Mongolia since 2011.
The institutions assisting in the project are the Czech Environment Ministry and the military, which
provides its transport planes. Mongolia‘s Environment and Green Development Minister
Sanjaasürengiin Oyun, a graduate of Prague‘s Charles University, expressed her appreciation at a
joint press conference with Bobek in the Czech Capital.
The 4 horses to be flown to Mongolia in June have been chosen from a Czech center to which they
were brought from several European zoos. The military plane will land directly in the Gobi Desert,
outside regular airports, so that the horses need not undergo a many-hour journey to the
acclimatization enclosure.
The Prague zoo is one of the main organizers of the transfers of the Przewalski‘s horse, which was
extinguished from the wild 40 years ago, back to its original homeland. The transfers from Western
Europe started in the 1990s and more than a hundred horses have returned to Mongolia since.
At present, about 1,900 Przewalski‘s horses live all over the world, including some 300 heads in two
national parks in Mongolia. The Prague zoo started breeding the Przewalski‘s horse in 1932. It has
kept the international pedigree book of this species since 1959.
Source: Prague Post
LET'S KICK START OUR COAL POLICY
It was clear at the fourth global coking coal summit held last week in Taiyuan—in the Shanxi
Province of China—that Mongolia has many opportunities for deal making with China.
China leads the world in coal production, producing 3.6 billion tons of coal last year. Meanwhile it
consumed 3.65 billion tons of coal that year. It is projected that China will increase its coal
production by 2.5 percent to reach 3.8 billion tons in 2014. Almost half of coking coal imports were
supplied by Australia while 20 percent came from Mongolia. In 2014, China‘s coking coal production
is expected to increase by 3 percent to reach 490 million tons, which will account for 70 percent of
global coking coal production.
Coal is a resource that will have a very significant role in the development of Mongolia for the next
20 years. It is time for Mongolia to introduce specific standards to create standards of high quality
for coal from the Tavan Tolgoi deposits. Such a ―TT‖ brand could be developed through the
blending of coals from several mines to be sold internationally.
A 360-kilometer long railroad from Bugat to Gants Mod was commissioned last year. Shenhua
company is going to extend this railroad by 16 kilometers over the border and build a narrow gauge
railway. The rail will bring structural change to the coal supply chain. That means the surrounding
the Gashuun Sukhait-Gants Mod port resolved to cut away at the numerous local taxes applied to
Mongolia's coal by the local authorities in Inner Mongolia.
Despite the risks posed by the coal industry, the government is looking to add to what already
amounts to USD 400 million in debt for the construction of coal washing and power plants at
Erdenes Tavan Tolgoi LLC facilities. This decision needs to be reconsidered so that the private
sector can control those risks.
It is time for Mongolia to kick start its coal policy.
Dambadarjaa ―De Facto‖ Jargalsaikhan is an independent media representative: a columnist and
TV host of the De Facto television program on NTV. Jargalsaikhan is an economist with an MBA in
finance and has acted as a management consultant in banking, marketing, strategic planning,
competitiveness and human resource management.
Source: UB Post
ANNOUNCEMENTS
MINEINFO'S MONGOLIA ORIENTATION CULTURAL ADJUSTMENT COURSE, 10 APRIL
Mine Info is hosting the Mongolia Orientation training 10 April at the Continental Hotel in
Ulaanbaatar.
Once again, Mongolia has become an attractive destination for foreign investors. It is important to
give foreigners a correct understanding about Mongolia, the Mongolian people, culture and
traditions. The Orientation Training will provide foreigners and expats living and working in
Mongolia with a full range of information about the country and its people, with the aim to ensure
an easier and softer adaptation to a new and completely different environment.
The training is delivered by renowned researchers and lecturers from the Mongolian Universities,
organized in a comfortable and luxury environment.
The cost is MNT 940,000 per student. For more information call 99053285 or 99098223.
___________________________________________
CSR FORUM, KEMPINSKY HOTEL, 21 APRIL
The U.S. Embassy and the Business Council of Mongolia will host the Corporate Social Responsibility
(CSR) Forum on 21 April from 09:00 to 12:00 at the Kempinski Hotel.
The Forum will include presentations on CSR practices at leading U.S. companies working in
Mongolia followed by Q&A and discussion. This CSR event is free of charge.
For more information or to attend, please RSVP with the U.S. Embassy by contacting Daria
Purevsuren at [email protected] or calling 7007-6105.
___________________________________________
MONGOLIA INVESTMENT SUMMIT, LONDON, 30 APRIL-1 MAY
The second annual Mongolia Investment Summit in London will be 30 April and 1 May.
An additional post-summit workshop will be held, giving participants presentations, discussions,
panels and networking opportunities. Keynote speakers include Ochirbat Chuluunbat, vice minister
for economic development, Dorjpurev Dulamsuren, vice minister for energy, and Clemente
Cappello, chief investment officer at Sturgeon Capital
BCM members can take advantage of a special 25 percent discount by using the offer code
UL912BCM when registering. Register online at mongoliainvestmentsummit.com/London, call +44
(0) 207 216 6056, or email [email protected]
___________________________________________
GTR‘S 3RD ANNUAL MONGOLIA TRADE & COMMODITY FINANCE CONFERENCE, BLUE SKY HOTEL,
13 MAY
The Business Council of Mongolia is offering members a limited number of free corporate passes
available (reserved for exporters, traders, manufacturers and producers of physical goods) and a 10
percent discount to GTR's 3rd Annual Mongolia Trade & Commodity Finance Conference 13 May at
the Blue Sky Hotel
With its focus on Mongolia‘s mining, minerals and vast commodity-led growth, this will be the key
trade gathering for the country‘s senior business leaders, providing timely insight on the challenges
facing the local banking and private sectors, as well as offering perspectives from the industry‘s key
supporting actors.
BCM is an institutional partner for the event, and so is offering members a 10 percent discount
when they enter the code BCM10. Contact Grant Naughton at [email protected] for
more information.
___________________________________________
BCM MEMBERS RECEIVE 15% DISCOUNT FOR OIL AND OIL SHALE MONGOLIA , 14-15 MAY
The Oil and Oil Shale Mongolia 2014 international investment conference, hosted by the Petroleum
Authority of Mongolia, will be held in Ulaanbaatar on 14 and 15 May.
The event will be attended by international investors, oil, gas, and oil shale companies, service
providers, consultancies, equipment suppliers, and traders.
Delegates will have a unique opportunity to network with industry's key contacts at the country's
first international investment conference on oil, gas, and oil shale. They will have the opportunity
to obtain vital information on legislation and policies on oil, gas, and oil shale exploration and
production regulations from the officials of the Ministry of Mining and Petroleum Authority of
Mongolia. Moreover, projects on oil refinery, exploration, production, plus oil shale projects will be
presented.
BCM members will receive an exclusive 15 percent discount. For more information call +976 9909-
1765 or 9910-5877, email [email protected] or logon to OilMongolia.com.
___________________________________________
―MM TODAY‖ ON MNB-TV, FRIDAY, 19:00 TO 19:10
BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with
BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is
scheduled from 19:00 to 19:10 tonight. Tune in to watch this program that reports stories from
today‘s BCM NewsWire.
BCM WORKING GROUP NEWS
The BCM Environmental Working Group met on Friday, 28 March 2014 with 65 members attending.
This was BCM‘s largest working group meeting ever with a myriad of interested participants and
several potential outcomes to be followed up.
Bayarmaa A, of Clean Energy, Newcom Group moderated the session.
Media: Shuurkhai TV, Star TV, Parliament TV, SBN TV, Mongol HD TV, Ekh-Oron TV, Like TV, Eagle
TV, TV9, Za TV, Olloo TV, C1 TV, National Radio, Mongolian Economy journal, Green further
journal.
Speakers and topics were:
Solid Waste Processing and Recycling in Mongolia
- Existing and planned waste management and recycling activities in Ulaanbaatar by Ch. Enkhjargal
Ulaanbaatar public service union.
- State Policy Implementation on Solid Waste Management, Recycling and Opportunities of Finance
by S. Boldkhuyag, Specialist of Waste Management, MEGD
- Activities of National Waste Recycling Association, introduction of members and waste exportation
D. Byambasaikhan, Head of the National Waste Recycling Association
- Introduction of Mongolia‘s Waste Management Association /mon/ and waste recycling activities
combined with landfill technology Ts. Erdene, Mongolia‘s Waste Management
- Model Khoroo Project on Solid Waste Management: Waste Sorting and Recycling activities in the
ger areas by N.Ariunaa, Asia Foundation
- 3R lessons learnt from Japan and the first steps for applying it in Mongolia by Ts.
Uranchimeg,Specialist of Green Development and Planning Division, MEGD
Initiatives on Waste Processing and Recycling
- Culture-environment-public by Tse. Ariunaa, Arts Council of Mongolia
- Introduction of Oyu Tolgoi waste recycling program and opportunities for replication by Mark
Newby, Environmental Manager, Oyu Tolgoi
- Newcom‘s waste separation initiative at office for processing and recycling by D. Saruul, ESMS
Manager, Newcom
Other initiatives:
- Waste paper recycling in Mongolia-by b. Sarantuya, Environment Education Officer, The Fresh
Water Resource and Nature Conservation Center.
- Sale of waste by Onon, New Era School
- Eco solution from waste /mon/by Tsomirlog, National University of Mongolia
- High school № 65 /mon/
___________________________________________
BCM LAUNCHING ITS LOGISTICS WORKING GROUP
More than 20 individuals with members have indicated interest in joining this new WG. The initial
meeting of the Logistics WG will be held on Tuesday, April 15, at 4 pm at BPI/USAID conference
room, 12th floor, Express Tower. Members with interest in joining the WG can still contact
Erdenetsetseg at [email protected] to join this WG or for more information.
Given the makeup of BCM's membership, we welcome individual volunteers from our logistics,
mining, transport, university and other interested members to join our new Logistics Working
Group. This BCM Working Group (WG) can lead private sector input and recommendations in this
critical area for Mongolia and make a real and meaningful impact.
If you have interest in joining this new working group, please contact [email protected].
BCM WEBSITES
MONGOLIAN WEBSITE ‗PRESENTATIONS‘ AND ‗NEWS‘ SECTIONS
The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.
As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the
government website Open-Government.mn are regularly updated.
• ―Anti-Corruption legislation and State Policy‖ (Mongolian) by D. Munkhjargal, Prevention and
Public Awareness Department, Senior Commissioner, Independent Authority Against Corruption
(IAAC) Mongolia at the ―ANTI-CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE
ON TRANSPARENCY‖ Training seminar, Mar 06, 2014
The presentation below was made at Mongolian National University as part of the ―BCM in the
University Classroom series‖ on February 27, 2014:
• Ser-Od Inchinkhorloo, Vice Director, BCM, ―Investment environment: Past, Present, Future‖
(Mongolian)
The presentation below is from the February 24 BCM monthly meeting:
• О. Зоригт, Гүйцэтгэх захирал, Майн Инфо "Майн Инфо ХХК-ний товч танилцуулга", МБЗ-ийн 2
сарын 24-ний сарын хурал
Dr. Khashchuluun, Executive Director, National Council of Private Sector Support, ―Taxation Impact
Research‖ to BCM Tax Working Group, February 19, 2014
• ТАТВАРЫН БАГЦ ХУУЛИЙН ӨӨРЧЛӨЛТ: ХУВИЙН ХЭВШИЛД, Ч. Хашчулуун, Хувийн хэвшлийг
дэмжих үндэсний зөвлөлийн гүйцэтгэх захирал 2014.02.19
20 Presentations from Coal Mongolia, 20-21 February, 2014:
• Уул уурхайн сайд Д. Ганхуяг, Төрөөс Эрдэс Баялгийн Салбарт Баримтлах Бодлого, Нүүрсний
Салбарыг Хөгжүүлэх Стратегийн Чиг Хандлага, Коал Монголиа 2014, 2 сарын 20-21.
• Сангийн сайд Ч.Улаан, МОНГОЛ УЛСЫН САНГИЙН ЯАМ, Улсын төсөвт нүүрсний салбарын
үзүүлэх нөлөө, татварын орчин шинэчлэл, Коал Монголиа 2014, 2 сарын 20-21.
• Монгол орны нүүрсний салбар дахь байгаль орчны асуудал, Байгаль орчин, ногоон хөгжлийн
яам, ХБОБНГ-ын дарга Д.Энхбат Коал Монголиа 2014, 2 сарын 20-21.
• НҮҮРСНИЙ АЖ ҮЙЛДВЭРЛЭЛИЙГ ХӨГЖҮҮЛЭХ ТЭЭВЭР ЛОЖИСТИКИЙН АСУУДЛУУД:
Л.ПҮРЭВБААТАР ТӨМӨР ЗАМЫН ИНЖЕНЕРҮҮДИЙН ХОЛБООНЫ ЕРӨНХИЙЛӨГЧ, ―УУЛ УУРХАЙН
БҮТЭЭГДЭХҮҮНИЙ ТЭЭВЭРЛЭЛТ‖ Коал Монголиа 2014, 2 сарын 20-21.
• МОНГОЛ УЛСЫН НҮҮРСНИЙ САЛБАР ДАХЬ ХӨРӨНГӨ ОРУУЛАЛТ, ХУДАЛДААНЫ ТААТАЙ ОРЧИН
БҮРДҮҮЛЭХ НЬ,ЭДИЙН ЗАСГИЙН ХӨГЖЛИЙН ДЭД САЙД О.ЧУЛУУНБАТ Коал Монголиа 2014, 2
сарын 20-21.
• Уул уурхайн дэд сайд О. Эрдэнэбулган, Олон улсын нүүрсний зах зээл дэх Монгол улсын
өрсөлдөх чадварыг нэмэгдүүлэхэд төрийн оролцоо Коал Монголиа 2014, 2 сарын 20-21.
• Ж. Батцэнгэл, Монголын Уул Уурхайн Корпорацийн дарга, МОНГОЛЫН НҮҮРСНИЙ САЛБАРЫН
ӨНӨӨГИЙН НӨХЦӨЛ БАЙДАЛ, Тулгарч буй бэрхшээл ба шийдэх боломж Коал Монголиа 2014, 2
сарын 20-21.
• Аршад Саеид, Пийбоди Энержи компанийн Монгол ба Энэтхэг улсыг хариуцсан Ерөнхийлөгч,
Дэлхийн нүүрсний зах зээл, Монгол улсад үзүүлэх нөлөөлөл, Коал Монголиа 2014, 2 сарын 20-
21.
• МОЗА гүйцэтгэх захирал Ч. Хашчулуун, Занарын дэлхии ̆н хувьсгал ба Монголын эдии ̆н засагт
үр нөлөө, Коал Монголиа 2014, 2 сарын 20-21.
• Багануур Энержи Корпорэйшн ХХК, Нүүрс хийжүүлэх, шингэрүүлэх цогцолбор парк төслийн
товч танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.
• АДУУНЧУЛУУНЫ ЦАХИЛГААН СТАНЦ, БЕНЗИНИЙ ҮЙЛДВЭРИЙН ТӨСӨЛ, Ж.Золжаргал –
Төслийн удирдагч, Коал Монголиа 2014, 2 сарын 20-21.
• Ц.Ганцог, Жени Ойл Шэйл Монголиа ХХК Гүйцэтгэх захирал, ШАТДАГ ЗАНАРЫГ АШИГЛАХ
БОЛОМЖ, Коал Монголиа 2014, 2 сарын 20-21.
• Фэн Вэй эрчим хүчний зөвлөгөө өгөх компани, 2014 оны хятадын нүүрсний зах зээлийн
шинжилгээ болон үнийн таамаглал, Коал Монголиа 2014, 2 сарын 20-21.
• Я. Батсуурь, Эрдэнэс Таван Толгой ХК, Танилцуулга, Коал Монголиа 2014, 2 сарын 20-21.
• Хишиг Арвин Индустриал ХХК, ҮНДЭСНИЙ КОМПАНИУДЫН ТӨЛӨВШИЛ, ӨРСӨЛДӨХ ЧАДВАР,
Коал Монголиа 2014, 2 сарын 20-21.
• Виртген Групп, МОНГОЛЫН НҮҮРСНИЙ ЗАХ ЗЭЭЛ ДЭХ WIRTGEN БРЭНДИЙН SURFACE MINER
БУЮУ АНГИЛАН ОЛБОРЛОГЧИЙН ТЕХНОЛОГИ БОЛОН АШИГЛАХ БОЛОМЖУУД, Коал Монголиа
2014, 2 сарын 20-21.
• ―Тавантолгой‖ ХК-ийн Гүйцэтгэх захирал Р.Сэддорж, Дэвшилтэт технологи ба инновацийг
нутагшуулах нь, Коал Монголиа 2014, 2 сарын 20-21.
• ―УУЛ УУРХАЙН ДЭД БҮТЦИЙН ХӨРӨНГӨ ОРУУЛАЛТЫГ ДЭМЖИХ ТӨСӨЛ‖ Төслийн Зохицуулагч
Б.Энхбаатар,Коал Монголиа 2014, 2 сарын 20-21.
• ДЭД САЙД Д.ДОРЖПҮРЭВ, Эрчим Хүчний Яам, 2014 ОНД ЭРЧИМ ХҮЧНИЙ САЛБАРЫН
ХИЙГДЭХЭЭР ТӨЛӨВЛӨСӨН АЖЛУУД БОЛОН ТӨРӨӨС БАРИМТАЛЖ БУЙ БОДЛОГО, Коал
Монголиа 2014, 2 сарын 20-21.
• Ай Эм Си Монтан Компани, Нүүрс баяжуулах талаар, Коал Монголиа 2014, 2 сарын 20-21.
The below presentation is from the January 27 BCM monthly meeting:
• ОЙ ХАМГААЛАЛД СУУРИЛСАН БИЗНЕС, Цэсэдийн БАНЗРАГЧ /Ph.D/, БОНЯ- ны ОЙ
ХАМГААЛАЛ, ОЙЖУУЛАЛТЫГ ЗОХИЦУУЛАХ ХЭЛТЭСИЙН ДАРГА, МБЗ-ийн 1 сарын 27-ны
гишүүдийн сарын хурал дээр
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', ‗INTERVIEWS‗, MONGOLIAN
BUSINESS NEWS‘, ‗PHOTO GALLERY‘
• ―Public-Private Partnership in Mongolia: Now and Future Prospects‖, E. Enerelt, Investment
Officer, ADB and Ts. Batbayar, Director of Concession Division, Ministry of Economic Development
at BCM monthly meeting, March 24, 2014;
• ―Areva in Mongolia: 15 years of presence – New perspectives in uranium mining‖, Thierry Plaisant,
General Director, Areva Mongol at BCM monthly meeting, March 24, 2014;
•―Impact of Corruption in Mongolia‖ by L. Sumati, Director of Sant Maral Foundation at the ―ANTI-
CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY‖ Training
seminar, Mar 06, 2014;
•―Anglo American Business Integrity policy and its application within the Business Globally‖ , Dr.
Graeme Hancock, President and Chief Representative Mongolia of Anglo American at the ―ANTI-
CORRUPTION LEGISLATION/POLICY, INTERNATIONAL BEST PRACTICE ON TRANSPARENCY‖ Training
seminar, Mar 06, 2014;
•Change of the package of taxation laws: private sector, Dr. Ch. Khashchuluun, Executive Director,
National Council for Private Sector Support, at the BCM`s Tax working group's meeting Feb 19,
2014;
•Economic and Capital Markets Update, Nick Cousyn, Chief Operating Officer, BDSec at the BCM
Monthly Meeting, Feb 24, 2014
15 Presentations at Coal Mongolia, February 20-21:
•Impact of Coal Sector on Government's Budget and the Taxation Regime , Ch. Ulaan, Minister of
Finance, MINISTRY OF FINANCE OF MONGOLIA
•Environmental issues in Mongolian coal mining sector, D.Enkhbat Ministry of Environment and
Green Development, Head of Environment and Natural Resources Department
•COAL INDUSTRIAL DEVELOPMENT, TRANSPORT AND LOGISTICS ISSUES: PRESENTATION TOPIC:
TRANSPORTATION OF THE MINING PRODUCT" Purevbaatar Luvsandagva, Head, Association of Railway
Engineering of Mongolia
•INVESTMENT INTO MONGOLIAN COAL MINING SECTOR AND CREATING AN ATTRACTIVE ENVIRONMENT
FOR INTERNATIONAL TRADE, VICE MINISTER OF ECONOMIC DEVELOPMENT, O. Chuluunbat, Vice
Minister, Ministry of Economic Development
•Government Involvement and Support to Enhance the Mongolian Competitiveness in Coal Sector,
O. Erdenebulgan, Vice Minister of Mining
•MONGOLIAN COAL INDUSTRY, Overcoming challenges in volatile market conditions, G.Battsengel,
Director, Mongolian Mining Corporation
•Global Coal Markets and Implications for Mongolia , Arshad Sayed, President of Mongolia & India,
Peabody Energy
• Introduction of CTL Plant Project, T. Munkhtur, Baganuur Energy Corporation
• ADUUNCHULUUN POWER AND CTL PROJECT, J.Zoljargal, Project Manager, MAK
• OIL SHALE OPPORTUNITIES IN MONGOLIA, Ts.Gantsog, Executive Director, Genie Oil Shale
Mongolia
• China Coal Market Lookout 2014, Fenwei Energy Consulting
• Erdenes Tavan Tolgoi JSC, Y. Batsuuri, CEO
• WIRTGEN SURFACE MINING TECHNOLOGY AND CHALLENGES IN COAL IN MONGOLIA by Wirtgen
Group
• "MINING INFRASTRUCTURE INVESTMENT SUPPORT PROJECT", Project Coordinator, B. Enkhbaatar at
the Coal Mongolia 2014, Feb 20-21.
• Coal Processing by IMC Montan.
The following presentations are from the January 27 BCM monthly meeting:
- "The year 2014 starts with new IPO on the Mongolian Stock Exchange", Richard Kobayashi, CEO,
Standard Investment LLC
- "IMA Consultancy Services for Investors and Account Manager's Role", D. Irmuun, Director of
Division for Promotion and Consultancy Services, Invest Mongolia Agency
The following have been added to Interview Section:
• Jim Dwyer, Executive Director, BCM: ―Minerals Policy‖;
• D. Bayasgalan, Director of Golomt Bank: ―Golomt has no problem‖;
• From the Oxford Business Group, Mongolia Reports 2013 book;
• B. Byambasaikhan, Chairman, BCM: ―Talk is cheap‖;
• President Ts. Elbegdorj: ―Diversifying for growth‖;
• Jim Dwyer, Executive Director, BCM: ―Non-mining sectors budding‖;
• Peter Morrow, Chairman, American University of Mongolia: ―Filling in the blanks‖;
• N. Zoljargal, Governor, Bank of Mongolia: ―Sustainable vision‖;
• Gansukh, Minister of Roads and Transportation: ―Accessing new markets‖;
• J. Od, President, MCS Group: ―Building interest‖.
BCM's English website includes the ―Mongolia Business News‖ section.
• 2014 Article IV staff report for Mongolia by International Monetary Fund;
• BCM comments on draft Amendments to the Minerals Law made to Mr. D. Gankhuyag, the Minister
of Mining, February, 2014;
• BCM Open Letter to Parliament and Government is available for download.
BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business
News‖ before they are all put together each week for Friday's weekly NewsWire.
The ―Photo Gallery‖ contains photos from the 6th Anniversary BCM Renewal dinner on November
11, 2013.
BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-
en/album?albumid=200
The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home
page for a consolidated account of the week‘s events.
SOCIAL NETWORK WITH BCM
BCM LAUNCHES NEW LINKED-IN COMPANY PAGE
The Business Council of Mongolia has launched a new company page on the social networking
website LinkedIn to network its members and followers including small-medium enterprises (SMEs).
The new page allows BCM to alert followers to the latest news and information critical to their
businesses. Members‘ businesses will be promoted. Additionally, BCM is delivering monthly
infographics on the latest data as well as videos and other media content as they come. The bulk of
the content on the new page will be in Mongolian language to better cater to BCM's Mongolian-
speaking audience and members. The following link can direct you to the new BCM's Linked-in page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
Social stats:
BCM now has 5,287 fans on our Facebook fans page, 1,643 connections on LinkedIn network,
and1,008 followers on Twitter.
Of course for news information, interviews, event photos, and announcements regarding our
organization, visit the official BCM website at http://bcmongolia.org/en/
BCM IN THE UNIVERSITY CLASSROOM NEWS
Business Council of Mongolia (BCM) has been progressing with its BCM in the University Classroom
series since March 2012. Led by BCM‘s Education Working Group, the program provides lectures at
universities to help inspire students and give them direction for their future careers. The series has
grown to include an average of 10 lectures per academic year. Now 1,293 students and teachers
have participated with BCM in the University Classroom Project.
Next BCM in the University Classroom series on 8 April at the (IF&E). Mr. Nick Cousyn, COO, BDSec
will speak --"Update of Mongolian Capital Markets".
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
February 28, 2014 *12.2% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 12.0% y-o-y, Ulaanbaatar city, February 28, 2014
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
CURRENCY RATES – 3 APRIL 2014
Currency Name Currency Rate
US dollar USD 1,784.49
Euro EUR 2,456.17
Japanese yen JPY 17.17
British pound GBP 2,969.39
Hong Kong dollar HKD 230.04
Chinese Yuan CNY 287.45
Russian Ruble RUB 50.23
South Korean won KRW 1.69
Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is
selected from various news sources. Opinions are those of the respective news sources.