29.01.2016 bcm news wire issue 413

BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org [email protected]

Issue 413 – January 29, 2016

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

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

article.

NEWS HIGHLIGHTS:

Business:

Franklin Templeton stumbles with Mongolian bet as bonds plunge;

S&P lowers MMC rating to 'CCC-' from 'CCC'; Outlook Negative;

MMC hires JP Morgan Securities, SC Lowy for possible debt restructuring;

MEC makes partial payment to Monnis, warns of coal production shutdown;

Prophecy closes USD200,000 private placement, settles debts;

Unitel caps customers' Internet speeds;

Domestically produced IV solutions to hit market in March;

Sia records song for 'The Eagle Huntress' documentary;

Leather producer targets Europe for export;

Skytel provides free messaging, flat fees on calls;

ADB grant of USD 7 million to implement three projects;

EasyRide connecting passengers to drivers;

Turquoise Hill appoints vice president for operations and development;

Hungarian trade expo in UB;

Ulaanbaatar Investment 2016;

10,000 Camels Festival—an event not to be missed;

Oyu Tolgoi recognizes best suppliers of 2015;

Golomt Financial Group recognized as “Global Growth Company”;

Financing Teso, a private sector champion in Mongolia;

Shell wins investor approval to buy BG;

The simple tools I’m using to disrupt a thousand-year-old industry—EDITORIAL.

Economy:

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

Mongolia SMI hits new survey-low in January;

Russia’s upper house ratifies deal to write off 97% of Mongolia’s debt;

BCM Statement calls for government stability to avoid hurting the economy;

Education minister promises MNT20 bn for scholarships in 2016;

Government will lend MNT 20 billion for ASEM meeting;

Mongolia pumps money into meat export development;

Two more border points permitted for meat trade;

Hungary to invest USD25 mn into institution for livestock health;

50 prisoners/turned entrepreneurs businesses to receive MNT1 mn each;

Former herders resort to dangerous illegal mining to earn a living;

Classical swine fever reported in Mongolia;

http://www.bcmongolia.org/

UB to spend MNT5.8 bn to dress up green ahead of ASEM;

UB to develop standards for tourism;

China builds Mongolian language corpus.

Politics:

Justice Coalition rejects PM dismissal proposal;

Bill proposes 40% subsidy on filmmaking;

Licensing proposed to cut out unregistered activities of pawn shops;

German-Mongolian mining university to help set education standards;

New cut-off date proposed for public servants to run for office;

CW-GP leader rejects Justice Coalition partnership offer;

Saikhanbileg hires former Altankhuyag advisor;

Mongolia and North Korea sign program on cultural exchange;

Georgia offers cooperation for 'Silk Road' program;

Battulga, Gansukh questioned about Samsung railway embezzlement scandal;

Railway embezzlement suspect vows to return home and prove his innocence;

Former MP flees to U.S. after arrested for drug possession;

Fossil smugglers caught, say police;

Sisters-in-crime arrested;

Mongolia ranked 72nd in corruption perceptions index;

Marathon man Andrew Murray takes on Mongolia test;

The time Hillary Clinton drank horse milk in Mongolia.

BCM Updates:

Announcemenyts;

Knowledge Sharing Sessions;

Advocacy Notes;

Working Groups News

BCM in the University Classroom Series;

Websites Update - Presentations, Mongolia Reports, Interviews;

Social Networks.

Economic Indicators:

Churchill’s Supermarket Price Comparison

Inflation;

Central Bank Policy Rate;

Currency Rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank Invest Mongolia Agency

Mongolian Business Database

BCM MEETING RECAP

The BCM meeting on 25 January was held in the Crystal conference room in Blue Sky Tower and

Hotel to 110 members and invited guests with BCM's executive director, Jim Dwyer, and chairman,

Bayanjargal Byambasaikhan, as the meeting's hosts.

In working group news, reported Dwyer, Anthony Woolley of Hogan Lovells has been appointed as

the new chair to the Legislative Working Group. "It's been a key working group since BCM formed,"

said Dwyer. He added that Jay Liotta and Bayar, who were stepping down from the role, "had

worked on countless new laws and have had a tremendous impact on our advocacy. "

BCM's three newest members are:

1. Ikh Uilsiin Ereld - established in 2006 by operating foreign and domestic trade, construction,

manufacturing of constructing materials.

2. Nomadic School of Business - a management consulting and leadership development group

recently established in Mongolia.

3. Tarva Investment and Advisory - is focused on successful investing and providing high-level

advisory services to client firms working in mining and industry – both private enterprise and

government.

Michael D. Richmond, the senior commercial specialist for the U.S. Embassy in Mongolia, spoke first

to announce that guests would be invited to attend the 2016 MinExpo International convention in

Las Vegas, United States from 26 to 28 September. The event held every 4 years is the biggest for

the mining industry, attracting 40,000 guests in 2012. "BCM has taken the lead in organizing a

mission for those who'd like to come," said Richmond.

He also reminded members that registration would soon open to attend the annual Prospectors and

Developers Association of Canada (PDAC) convention to be held in Toronto from 6 to 9 March.

Second up was E. Sodontogos, national coordinator for the National Secretariat for Development of

the Second Compact agreement between the government of Mongolia and the U.S. Millennium

Challenge Corp. With the first compact now finished in Mongolia, the next step is to move forward

with identifying constraints to business that the Millennium Challenge Corp. could help eliminate

with the second compact. Having identified Macro-economic stability, micro-economic challenges

and health problems as targets, the government is now proposing concept papers to receive grants

to help resolve these issues. "MCC and the government are considering opportunities to engage the

private sector to resolve these binding constraints," said Sondontogos.

The evening's third speaker was a representative of one of Mongolia's newest political parties, the

National Labor Party. T. Bat-Orgil, the party secretary in charge of cooperation, spoke about the

widespread corruption in the political system, and how far the country's politics had fallen from the

aspirations of the people 25 years ago. "The 90s was a time of big hopes. We were poor, but very

hopeful," said Bat-Orgil. "We were hopeful that we'd bring something new and exciting, and we did

it; we brought freedom."

The National Labor Party, he said, is a direct response to "the criminal acts in the political

machine." He said the Labor Party stands for enriching the people, while the others stand to enrich

http://mongolia.usembassy.gov/

themselves. "To prevent bloody events, we need to come back to what we started in the 90s," said

Bat-Orgil.

Finally, the last speech from D. Gantugs, chief executive officer of Mongolian Mortgage Corp. (MIK)

introduced to members the growth of mortgage lending in the country through the state-backed 8

percent mortgage program it participates in. Ten years after its establishment, MIK launched 2015's

only initial public offering in December. With more homeowners in the country today than ever

before, the company boasts a portfolio worth MNT2 trillion of mortgages. "The government program

sharply increased the amount of affordable lending for many households in 2015," said Gantugs.

Gantugs said the program has also supported the construction and real estate sectors in Mongolia

while many other industries, including mining, suffer, and the economy as a whole stagnates.

BUSINESS

FRANKLIN TEMPLETON STUMBLES WITH MONGOLIAN BET AS BONDS PLUNGE

Franklin Templeton’s Michael Hasenstab, who made an outsized bet on Mongolian bonds, is feeling

the chill after tumbling commodity prices and rising political instability spurred a plunge in notes

issued. The USD1.09 billion Asian Bond Fund has declined 9.5 percent in the past year to lag behind

96 percent of its peers. Performance has been dragged down by junk-rated Mongolian notes

maturing in 2022, which accounted for 7.24 percent of the fund’s net assets as of 31 December and

was the largest single-credit bet.

The 2022 notes slumped to record-low levels this month, as Mongolian officials plan meetings with

global investors to discuss issuing more bonds. Coal exports slumped 24 percent last year to

USD555.9 million as prices fell while receipts from copper shipments dropped 11 percent to USD2.28

billion. Political risk at home is also escalating as Prime Minister Saikhanbileg Chimed faces a

leadership challenge in parliament.

Source: Bloomberg

S&P LOWERS MMC RATING TO 'CCC-' FROM 'CCC'; OUTLOOK NEGATIVE

Standard & Poor's Ratings Services on 27 January lowered its corporate credit rating on Mongolian

coal miner Mongolian Mining Corp. (MMC) to 'CCC-' from 'CCC'. At the same time, it lowered its issue

rating on the company's USD600 million senior unsecured notes to 'CCC-' from 'CCC'. The downgrade

follows MMC's announcement that it has hired advisors to provide advice on the potential

restructuring of the company's outstanding notes.

"We believe a default is likely within the next six months barring an agreement with the company's

creditors on a restructuring," said Standard & Poor's credit analyst Xavier Jean. "This is because

MMC needs to repay more than USD150 million in debt amortization and interests in 2016. The

company's USD600 million notes also mature in 2017. This compares with our estimate of cash

balance below USD50 million as of Dec. 31, 2015."

Source: Standard & Poor's Rating Services

MMC HIRES JP MORGAN SECURITIES, SC LOWY FOR POSSIBLE DEBT RESTRUCTURING

Mongolian Mining Corp. has appointed advisers in the expectation that debt restructuring will be

necessary without a contracting deal for the Tavan Tolgoi coal mines after repeated interventions

from lawmakers. MMC has failed to lock in an agreement with state-owned coal mine owner Erdenes

Tavan Tolgoi LLC after more than a year of negotiations. With USD600 million worth of senior notes

due to mature next year, it had hopes to overcome deteriorated coal market conditions by

contracting for coal mining, processing, transportation and exploration activities. “[T]he Company

does not currently expect any conclusion of such negotiations in the near future,” reads a 26

January statement.

J.P. Morgan Securities (Asia Pacific) Ltd. and S.C. Lowy Financial (HK) Ltd. have been retained as

restructuring advisers on the potential restructuring of the USD600 million worth of corporate

http://www.mik.mn/

http://www.bloomberg.com/news/articles/2016-01-28/franklin-s-hasenstab-stumbles-with-mongolian-bet-as-bonds-plunge

bonds.

Source: Mongolian Mining Corp.

MEC MAKES PARTIAL PAYMENT TO MONNIS, WARNS OF COAL PRODUCTION SHUTDOWN

Mongolian Energy Corp. Ltd. may be forced to suspend coking coal production from the Khushuut

coal mine if it fails to close a deal with an unnamed buyer, the miner reported on 25 January. MEC

has been in negotiations for the coal supply contract with one customer amid a weak market and

prices for coal. “[O]nly a minimum workforce will be maintained for domestic coal production in

the Khushuut coal mine to supply coal for the local community in Khuvd Aimag, Mongolia” if an

agreement is not reached, reads the statement.

Meanwhile, a court has ruled against MEC's operational subsidiary, MoEnCo LLC, in a MNT15.9 billion

lawsuit filed by contractor Monnis Mining Equipment LLC for outstanding fees. MoEnCo has made a

partial payment of USD500,000 to the contractor, which belongs to the holding company Monnis

Group, and is now in the final stage of settlement negotiations. If talks fall through, however,

Monnis may decide to seize MEC's assets.

Source: Mongolia Energy Corp. Ltd.

PROPHECY CLOSES USD200,000 PRIVATE PLACEMENT, SETTLES DEBTS

Prophecy Development Corp. has raised USD200,000 for mineral projects and for general working

capital purposes. The Toronto-listed coal mine and energy plant developer closed a non-brokered

private placement involving the issuance of 8 million units sold at a price of USD0.025 each. A unit

consists of one common share and one share purchase warrant that entitles the holder to an

additional Share for USD0.04 each for up to five year from the date of issuance.

Prophecy also stated that on 13 January it has agreed to issue as much as about 6.14 million

common shares priced at USD0.03 each to settle various debts with some officers, employees and

consultants.

Source: Prophecy Development Corp.

UNITEL CAPS CUSTOMERS' INTERNET SPEEDS

Some Unitel Internet and IPTV subscribers have expressed outrage from the company's decision to

cap bandwidth. The company is the first to introduce the practice of “capping” Internet, meaning

that download speeds customers buy will fall to about 512 kilobytes per second, or about the speed

of a dial-up connection, after a certain amount of bandwidth is consumed. Bandwidth limits

depending on plans purchased by costumers

“Now we are limiting the Internet speed because of too much cost,” said D. Jamiyansharav, deputy

director for business development and planning. “You can still use Internet, but with lower speed,”

he added.

Source: Udriin Sonin

DOMESTICALLY PRODUCED IV SOLUTIONS TO HIT MARKET IN MARCH

A pharmaceuticals company claims it will sell intravenous (IV) solutions used to treat illnesses such

as cancer at a discount of up to 20 percent compared with foreign competitors once its product hits

the market in March. Nakhia Impex is opening the country's first plant for IV solution that is able to

produce 24 million units compared with the national demand of 8 million.

In addition to Nakhia Impex, Monos Group, Munkhiin tun, Emiin uildver and Tsom have invested in

the plant. “Our investor companies have outlets all over the country and we will use them to

market our product,” said G. Taivanbat, production director at Nakhia Impex.


SIA RECORDS SONG FOR 'THE EAGLE HUNTRESS' DOCUMENTARY

The pop singer Sia is spreading her wings with the contribution of a “girl power anthem” for the

upcoming documentary film, The Eagle Huntress, featuring a Kazakh female eagle hunter from

Bayan-Ulgii. The Australian artist has recorded a new song, “Angel by the Wings,” specifically for

the coming-of-age film, which will earn its world premiere 24 January at the Sundance Film

Festival. “I'm incredibly grateful that Sia took the time to write and record this very special song,”

comments the film’s director, Otto Bell. “It's a wonderful vote of confidence for our documentary. I

could not have imagined a more fitting, timeless piece of music for the film—it's such a beautiful

girl power anthem!”

The Eagle Huntress follows the story of Aisholpan, a 13-year old Mongolian girl who is striving to

become the first female eagle hunter in 2,000 years of male-dominated history.

Source: Billboard

LEATHER PRODUCER TARGETS EUROPE FOR EXPORT

A leather-goods producer that has expanded its operations using government financing is on the

cusp of exporting to Europe. Darkhan Nekhii produces 500,000 leather and sheep skin products a

year as well as 500,000 shoes from a subsidiary boot-making factory. It hopes to begin shipping

semi-processed leather to producers in Italy, Spain and Thailand, as well as some European

countries. Also planned for exports are finished goods made at factories in Russia.

Industrial Minister D. Erdenebat visited Darkhan-Uul Aimag to meet Darkhan Nekhii and other

companies who have grown their operations using financing from the Development Bank of

Mongolia. Darkhan Nekhii received a five-year loan worth MNT14 billion with 4 percent annual

interest from the bank, which has transferred funds raised from bond offerings such as the 2012

Chinggis Bond.

Source: Undesnii Shuudan

SKYTEL PROVIDES FREE MESSAGING, FLAT FEES ON CALLS

Skytel has rolled out a new pricing scheme that is offering messaging for free and charging users a

flat rate for all calls with any service providers. “Our company is changing the old payment

system,” said Skytel Group Chief Executive Officer D. Bolor. The mobile telecommunications

company is forgoing the practice of offering cheaper rates when customers make calls to other

phones with the same service provider by offering flat fees. The rates also are unchanged when

calling landline phones.

Source: Unuudur

ADB GRANT OF USD7 MILLION TO IMPLEMENT THREE PROJECTS

Asian Development Bank (ADB) has committed to a grant of USD7 million to help build sustainable

tourism and improve livelihoods in Mongolia. Finance Minister B. Bolor and ADB Country Director

Robert Schoelhammer participated in a signing ceremony on 26 January to fund projects aiming to

facilitate sustainable tourism at Khuvsgul Lake, improve school dormitories in western Mongolia and

activities aimed at urban development. The grant is backed by funds from the Japan Fund for

Poverty Reduction.

Source: Mongolia.GoGo.mn

EASYRIDE CONNECTING PASSENGERS TO DRIVERS

A group of young people in Mongolia have launched a new taxi-calling app that mirrors popular

services in the West such as Uber and Lyft. Amar Baatartsogt is the co-founder and general

manager of EasyRide, an app that connects users with drivers. “Our goal is to improve urban

mobility through technology and assist the UB municipality in building a SMART city,” said

Baatartsogt.

The team currently doesn't have any plans to expand outside of Ulaanbaatar, but with more than

10,000 downloads already, they hope to gain 100,000 users within the next six months. “[D]rivers

are happy to be getting more ride requests than usual,” said Baatartsogt. “They understand how it

helps them save time, gas and money by not driving around in search of passengers.”


http://www.billboard.com/articles/news/6844265/sia-angel-by-the-wings-eagle-huntress

http://www.adb.org/

http://mongolia.gogo.mn/r/151016


TURQUOISE HILL APPOINTS VICE PRESIDENT FOR OPERATIONS AND DEVELOPMENT

Turquoise Hill Resources Ltd. on 20 January announced the appointment of Brendan Lane as vice

president of operations and development effective 1 February. Lane brings 25 years of industry

experience including metallurgical, mine engineering and commercial roles at Rio Tinto Group,

Anglo American and BHP Billiton. Jeff Tygesen, Turquoise Hill Chief Executive Officer, said,

"Brendan's extensive engineering and commercial background will be extremely valuable to

Turquoise Hill and we are delighted to have him join our team. Working with the project team, he

will play a critical role in the further development of Oyu Tolgoi."

Since 2013, Lane has served as Minera Escondida Limitada and Grasberg Finance Director at Rio

Tinto Copper. Previously, he held a variety of commercial roles in the Rio Tinto copper and coal

business units as well as engineering positions at Anglo American and BHP Billiton.

Source: Turquoise Hill Resources Ltd.

HUNGARIAN TRADE EXPO IN UB

Forty Hungarian companies in various industries attended a trade expo held on 25 and 26 January to

open new relations with Mongolian businesses. The event, hosted by the Mongolian National

Chamber of Commerce and Industry and Hungarian National Trading House, was held in coordination

with a visit by Hungarian Prime Minister Viktor Orban. The companies included those operating in

tourism, dry cleaning, car manufacturing, IT, construction and architecture.

Source: News.mn

ULAANBAATAR INVESTMENT 2016

Ulaanbaatar can expect to see MNT 427 billion of public investment in 2016, said a government

official at an investment expo held on 20 January that hopes to attract billions more in private

investment. MNT59.3 billion for urban development was the biggest share of investment said the

city governor's deputy for finance and economic affairs, N. Bataa. Another MNT55.1 billion will be

spent on roads, 31.7 billion on repairs at schools and the construction of new schools, and MNT2.1

billion on health care infrastructure.

Presentations were made on the procurement of “green,” environmentally friendly projects, the

“Friendly Ulaanbaatar” program to improve services for the community and tourists, and public-

private partnerships for urban development.


10,000 CAMELS FESTIVAL—AN EVENT NOT TO BE MISSED

Conservationists are raising awareness for the need to protect the two-hump Bactrian camel in

March with a two-day festival. The 10,000 Camels Festival at Dalanzadgad Soum will hold events

including camel polo, song and dance presentation and even an award for the best-looking couple

riding on camel back. The two-day event on 6 and 7 March event is organized by the Amazing Gobi

tour group.


OYU TOLGOI RECOGNIZES BEST SUPPLIERS OF 2015

Oyu Tolgoi LLC held its annual Supplier Recognition ‘Gobi Gem’ Awards in Khanbogd Soum,

Umnugobi on 22 January, with government officials, local dignitaries, trade associations, and the

supplier community taking part in the ceremony. The awards recognized achievements of some of

its 989 suppliers in five main categories in 2015: “Safety and Business performance;” “National and

South Gobi suppliers,” and a “Grand Prix” category for the overall best-performer. The awards, in

addition to recognizing the five winners, celebrate the achievements of Mongolia’s business and

industrial community across sectors.

“The strength of our partnership will continue to grow–just as Oyu Tolgoi grows with the

underground development,” said Andrew Woodley, Oyu Tolgoi president and chief executive

officer. “I could not be more honored to be working with the people of Khanbogd and the South

Gobi to turn Oyu Tolgoi into one of the most important copper mines in the world in the coming

http://www.riotinto.com/

http://www.ot.mn/

http://www.mongolchamber.mn/

http://www.mongolchamber.mn/

http://english.news.mn/content/233473.shtml



http://www.ot.mn/

years.”

The winners were:

Best Supplier for Safety performance – NBIK LLC

Best Supplier for Delivery in Full and On Time – Mergen Chadvar LLC

Best South Gobi Supplier – Khanbogd Khurd LLC

Best National Supplier – Mineral Bag LLC

Grand Prix – Maxam Explosives LLC

Source: Oyu Tolgoi LLC

GOLOMT FINANCIAL GROUP RECOGNIZED AS “GLOBAL GROWTH COMPANY”

Global Growth Companies (GGC), a subsidiary organization of World Economic Forum consisting of

400 top enterprises from more than 65 countries around the world, has named Golomt Financial

Group the “Global Growth Company” from Mongolia for 2016. GGC makes its selections based on

innovative business models, dynamic and sustainable growth, corporate global citizenship and

visionary leadership as well as their influence in development of their respective industries, the

country and the region in which they operate.

Source: Montsame

FINANCING TESO, A PRIVATE SECTOR CHAMPION IN MONGOLIA

The European Bank for Reconstruction and Development (EBRD) and the donors of the Early

Transition Countries (ETC) Fund are supporting Teso, a Mongolian private sector champion who

started with a small ice-cream production and today provides jobs to over 1,000 people. When in

the late 1990s Damjin Odon and family left behind agricultural trading in their remote village of

western Mongolia for Ulaanbaatar, all they had was a second-hand ice-cream machine in a small

rented room—and many challenges. “During that time, some of my siblings were students working

as part-time salespeople, accountants and distributors,” recalled Odon, board chairman of

conglomerate Teso.

With the support of the ETC Fund, the EBRD helped the company improve its accounting through

business advice and provided a USD5.5 million-equivalent loan in local currency for purchasing new

equipment and installing a new production line for higher quality ice-cream.

Source: EBRD

SHELL WINS INVESTOR APPROVAL TO BUY BG

Royal Dutch Shell PLC won shareholder approval to buy BG Group PLC, an investing partner with

Mongolia-focused oil explorer Petro Matad LLC, sealing its biggest acquisition amid the worst oil-

industry slump since the global financial crisis. The approval vindicates Shell’s belief that it can

better ride out the market rout by combining with British oil and gas producer BG. Crude’s tumble

since the deal was announced in April prompted some shareholders to question whether it’s paying

too much, yet Chief Executive Officer Ben Van Beurden has said the acquisition will boost cash flow

and enhance Shell’s ability to pay dividends, while BG’s growing production will help bolster its

declining output.

“The enlarged group has stronger growth potential, will benefit from further synergies and cost

reductions, is more resilient in a lower price environment and can maintain the dividend,” Tudor,

Pickering, Holt & Co., the Houston-based oil investment bank, said in a note following the vote.

Source: Bloomberg

THE SIMPLE TOOLS I’M USING TO DISRUPT A THOUSAND-YEAR-OLD INDUSTRY—EDITORIAL

It’s not easy fostering relationships with nomadic herders in the middle of the Gobi desert, but my

experience is not entirely unique. Naadam Cashmere, a socially-conscious brand that sources

cashmere from local herders in Mongolia, doesn’t just do business—we build relationships. We look

very closely at the micro-economic impact we have on the people we work with.

Conversely, many traders come from outside regions with little interest in a community or its

people and force prices down. Their focus is often about marginalization and profit increase, when

http://www.ot.mn/

http://www.golomtbank.com/

http://www.golomtbank.com/

http://en.montsame.mn/economics/golomt-financial-group-recognized-global-growth-company

http://www.ebrd.com/

http://www.ebrd.com/news/2016/financing-private-sector-champions-in-mongolia.html

http://www.bg-group.com/

http://www.petromatad.com/

http://www.bloomberg.com/news/articles/2016-01-27/shell-wins-shareholder-approval-to-purchase-bg-group

profit increase can be a derivative of inclusion and collaboration. The industry focuses on the wrong

things: ignoring people and communities, using misinformation and a lack of consistent

communication, and forcing the bottom of the supply chain down to widen the margin. Our lesson is

a simple one: when you are nice to people, when you are thoughtful about their needs, they

reciprocate in kind.

Matt Scanlan is the CEO and co-founder of Naadam Cashmere, a socially-conscious brand that

sources cashmere from local herders in Mongolia.

Source: Fortune

SPONSORS

Oxford Business Group The New Media Group

Mongolian Economy Magazine

ECONOMY

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

The Bank of Mongolia on 28 January sold USD19 million and CNY8 million to central banks in

currency auctions (out of USD45.7 million and CNY23.7 million in bids, respectively) for closing

exchange rates of MNT2009.05 and MNT305, respectively. Also that day, it accepted tugrug swaps

with commercial banks for an equivalent of USD74,000, but rejected U.S. dollar swaps worth USD15

million.

The Bank of Mongolia on 27 January issued 1-week bills worth MNT210.4 billion at a weighted

interest rate of 12 percent. Also that day, the central bank received MNT25 billion in bids for the

auction of 28-week treasury bills with a face value of MNT15.3 billion and two-year bonds with a

face value of MNT15 billion because of a lack of bids at a discounted price and with a weighted

average yield of 14.108 percent.

Source: Bank of Mongolia

MONGOLIA SMI HITS SURVEY-LOW IN JANUARY

The World Economics ‘Sales Managers Index’ (SMI) for Mongolia registered 32.0 in January, down

from 32.4 in December, the lowest level in the survey history. The SMI is derived from an average

of the business confidence, market growth, product sales, prices charged and staffing indicators,

and indicates growth when above 50. “January’s SMI data indicated that Mongolian business

conditions deteriorated further as the economic situation remains challenging,” said the Source.

The World Economics ‘Business Confidence Index’ for Mongolia reported a more positive yet

nonetheless a strong decline in the level of business sentiment, rising from 27.9 in December to

31.4 in January. Weakening economic demand, high interest rates, declining oil and other

commodity prices, and harsh weather conditions were cited again by panelists as the main reasons

behind the negative business outlook.

http://fortune.com/2016/01/24/industry-disruption-naadam-cashmere/

http://www.mongolbank.mn/

Finally, the World Economics ‘Market Growth Index’ for Mongolia fell to the lowest level since

February 2015, as the poor economic environment continued to impact on growth.

Source: World Economics

RUSSIA’S UPPER HOUSE RATIFIES DEAL TO WRITE OFF 97% OF MONGOLIA’S DEBT

The Federation Council, the upper house of Russia’s parliament, has ratified an inter-governmental

agreement on settling Mongolia’s financial obligations to Russia. As of December 2010, Mongolia’s

unsettled financial obligations to Russia totaled USD174.2 million. The entire sum of these liabilities

was overdue debt.

"As a result of bilateral negotiations held in July 2010, the sides managed to reach an agreement,

under which Mongolia undertook to repay financial obligations worth 163.7 million convertible

rubles and 10.5 million clearing US dollars with a lump sum payment of USD3.8 million," an

explanatory note says.

Source: TASS

BCM STATEMENT CALLS FOR GOVERNMENT STABILITY TO AVOID HURTING THE ECONOMY

The Business Council of Mongolia (BCM) has appealed to lawmakers against casting out the prime

minister from office in a 26 January statement, warning it could have a heavy impact on the

country's borrowing costs. The statement was in response to a motion signed by 19 members of

Parliament calling for Prime Minister Chimed Saikhanbileg's dismissal for his part in the signing of an

agreement with Rio Tinto Group for the relaunch of an underground-mining expansion at the Oyu

Tolgoi copper mine.

Dismissing a second prime minister in four years would signal instability to investors, BCM warned,

which could reduce appetite for investment and hurt credit raters’ positions on the country.

“Political instability will result not only in higher cost for borrowing by the Government but equally

by private businesses too. Politics should not be a reason to down-grade the state sovereign credit

rating,” reads the statement that went out on behalf of BCM’s over-200 members and the business

community.

Source: Business Council of Mongolia

EDUCATION MINISTER PROMISES MNT20 BN FOR SCHOLARSHIPS IN 2016

Mongolia will spend MNT20 billion to fund scholarship for between 150 and 200 Mongolian students

studying abroad this year, said the education minister, as part of national efforts to improve the

technical and professional skills of its young working class. More than 20 countries offer scholarships

to Mongolian students, said P. Erkhembulgan, head of higher education for the Ministry of Education

and Science. Mongolian students have had access to scholarships to attain Master and Ph. D.

degrees from foreign institutions since 1997, he said. More recently, the government has offered

full-ride scholarships to any undergraduate students accepted at one of the world's top-100

universities. It has also provided scholarships through partnerships with Germany, the United

States, and Britain.

With up to 500 students studying in Russia and a promise from China to educate 1,000 students over

the next five years, Erkhembulgan said Mongolia has about 2,000 students studying abroad annually.

Source: Undesnii Shuudan

GOVERNMENT WILL LEND MNT 20 BILLION FOR ASEM MEETING

Ulaanbaatar is prepared to lend MNT20 billion to hotels in the capital to upgrade their services in

preparation for the Asia-Europe Meeting (ASEM) scheduled here in summer, said Foreign Affairs

State Secretary Gankhuyag. Funds would be used to install security cameras and bag-checking

equipment at 47 hotels chosen to best accommodate the hundreds of foreign dignitaries and heads

of state.

The government is holding back no expense to ensure that Mongolia makes a good impression on the

guests expected to visit. That includes exemptions on customs, excise and value-added taxes on

cars to serve high-ranking visiting officials to go before Parliament.

http://www.worldeconomics.com/SMI/Mongolia-SalesManagersIndex.efp

http://tass.ru/en/economy/852495


http://www.riotinto.com/

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Source: Udriin Sonin, Montsame

MONGOLIA PUMPS MONEY INTO MEAT EXPORT DEVELOPMENT

Mongolia intends to increase the volume of meat exports to Russia, Vietnam, South Korea and China

in the next few years, according to a statement from Agricultural Minister Radnaa Burmaa.

According to Burmaa, the country will invest up to USD90 million in the development of meat

exports this year. “Now, we have established a contractual relationship with eight regions in the

Russian Federation. We also intend to increase supplies of meat products to China and South

Korea,” she said.

At the end of 2015, after a two-year ban, China resumed imports of Mongolian meat. Experts

suggested that, since 2013, the country had achieved real progress in terms of improving livestock

biosecurity. Previously, the Meat Union estimated Mongolia had the potential to establish export

supplies to Asia and Russia worth a total of MNT600 billion per year. Deliveries to Russia could reach

100,000 tons per year. Forecasts for Asian markets had not yet been estimated.

Source: Global Meat News

TWO MORE BORDER POINTS PERMITTED FOR MEAT TRADE

Two more border checkpoints have been approved for the movement of raw-meat and animal by-

product exports as Ulaanbaatar seeks to expand trade of agricultural goods. The Cabinet Secretary

on 25 January approved officials to allow the exports at Burgastai in Gobi Altai and Gashuun Sukhait

in Umnugobi.

Source: Montsame

HUNGARY TO INVEST USD25 MN INTO INSTITUTION FOR LIVESTOCK HEALTH

Hungary has committed to invest USD25 million to upgrade Mongolia's state-run institution for

improving the health of livestock and preventing epidemics of disease, the Biokombinat. The

investment agreement came as part of Hungarian Foreign Affairs and Trade Minister Peter Szijarto's

signing of an intergovernmental agreement for trade cooperation with Foreign Affairs Minister B.

Bolor on 25 January.

The signing took place during a visit by Hungarian Prime Minister Victor Orban.

Source: Montsame

50 PRISONERS/TURNED ENTREPRENEURS BUSINESSES TO RECEIVE MNT1 MN EACH

The Labor Ministry will award MNT1 million each to 50 new businesses launched by prisoners

released year from the Amnesty Law. The event is part of a campaign titled “The Good Life is in

Your Hands."


FORMER HERDERS RESORT TO DANGEROUS ILLEGAL MINING TO EARN A LIVING

In the illegal mining pits of Nalaikh, district miners without safety equipment use primitive methods

to mine low-grade coal, often more than a hundred meters underground. The Mongolian Red Cross

Society has made efforts to improve the safety of the workers, but the lack of resources makes

significant progress very difficult. “Every year 10 to 15 people die, and many more are seriously

injured from accidents in the mines,” said N. Altangerel, a miner in his forties. Dozens of children

from destitute families also work in the area.

Because of the high risk of accidents in the pits, the Red Cross has organized first aid and safety

awareness training courses for the miners. Meanwhile there is an urgent need for increased

intervention. Miners continue to suffer unacceptably high rates of injuries such as broken bones,

cuts and serious head injuries, many of these resulting from improper use of mining equipment.

Source: IFRC

CLASSICAL SWINE FEVER REPORTED IN MONGOLIA

Three outbreaks of classical swine fever have been reported on pig farms in Mongolia. In total, 272

http://en.montsame.mn/politics/auto-asem-summit-be-exempted-tax

http://www.globalmeatnews.com/Financial/Mongolia-pumps-money-into-meat-export-development

http://en.montsame.mn/politics/more-border-checkpoints-allow-exit-raw-meat-and-animal-products

http://en.montsame.mn/politics/technological-upgrading-worth-25-million-usd-be-applied-biokombinat


http://www.ifrc.org/en/news-and-media/news-stories/asia-pacific/mongolia/former-herders-resort-to-dangerous-illegal-mining-to-earn-a-living-71857/

cases were reported and 419 pigs died as a result of the outbreak. The two regions affected in the

outbreak-Dornod and Tuv-have now begun vaccinating pigs. In total, 710 swine have now been

vaccinated in Dornod and 4,900 in Tuv.

Source: The Pigs Site

UB TO SPEND MNT5.8 BN TO DRESS UP GREEN AHEAD OF ASEM

Ulaanbaatar this year is making plans to spend MNT5.8 billion on its annual beautification in

anticipation of the Asian-Europe Meeting (ASEM) scheduled to be held in the capital this summer.

Beautification in Ulaanbaatar is now common in spring and early summer, but this year the capital

plans to take those efforts further to welcome hundreds of foreign dignitaries and heads of states to

Ulaanbaatar to a city decorated by freshly-planted trees and flower.

“Despite the fact that in recent years Ulaanbaatar has been paying more attention to green areas,

it is still not enough in comparison with other foreign cities. In Ulaanbaatar buildings go up without

any good overall planning, this makes it pretty hard to create green areas and to make it more

pleasant,” said Japanese Ambassador Shimizu Takenori.

Source: News.mn

UB TO DEVELOP STANDARDS FOR TOURISM

A unified standard for tourism and trade will be developed for Ulaanbaatar as it targets growth for

the tourism industry. The Ulaanbaatar government signed a cooperation agreement with the

Ulaanbatar Chamber of Commerce and Mongolian Tourism Federation as it continues its “Friendly

Ulaanbaatar” program to improve services and living conditions for residents and visitors. The

standards include approved spelling for Mongolian branded products, a set time period for the

tourist season and a quota for the number of aircrafts to be chartered around the country. Also

planned are tourism expos and the establishment of information booths for tourists.

The program also includes plans to establish a “free tourism zone” in the community to be called

Khan City that will be established around the new international airport under current construction

in Khushig Valley. Ulaanbaatar's Tourism authority has also agreed to help improve hotels that

commit to cut rates by 50 percent in the off-season months, said department director E. Battulga in

a statement.

Source: News.mn, 2

CHINA BUILDS MONGOLIAN LANGUAGE CORPUS

A Mongolian language database containing 80 million words has been launched after ten years of

collection and research, the Inner Mongolia Academy of Social Sciences said. The program is

attempting to preserve the language by the Mongols in China's Inner Mongolia Autonomous Region,

Mongolia and parts of Russia, though dialects differ. The Mongolian corpus is a part of the 200

shared-million word corpora used by ethnic minorities in northern and northeastern China including

the Duar, Ewenk and Oroqen languages. The project is slated for completion in 20 years.

The compilers identified 97 locations across eight Chinese provincial regions that have a Mongolian

population as well as five provinces and cities in Mongolia, the Buryat Republic and the Republic of

Kalmykia in Russia. The project has two stages. The first stage, the Mongolian corpus, is finished

and the second stage, the database for the other three languages, is under way.

Source: China Daily

POLITICS

JUSTICE COALITION REJECTS PM DISMISSAL PROPOSAL

The Justice Coalition that makes up the minority leg of Prime Minister Chimed Saikhanbileg's

government has rejected MP G. Uyanga's motion to dissolve the government. Uyanga, who belongs

to Justice Coalition member the Mongolian People's Revolutionary Party (MPRP), collected 19

signatures to bring before a standing committee the motion to dismiss Saikhanbileg for his part in

http://www.thepigsite.com/swinenews/41127/classical-swine-fever-reported-in-mongolia/



the signing of an agreement that paved the way for an expansion project at Oyu Tolgoi, which she

and other members strongly rejected. “Dismissing the prime minister is the wrong choice, and this

is not the right time for such action,” was included in a statement following a morning party

meeting on 21 January.

Democratic Party Secretary L. Erkhembayar in an interview warned that Saikhanbileg's dismissal

could send out ripples of destabilization. Impacts, he said, would include a depreciation in the

tugrug and delays to pertinent legislation. If the Prime Minister is dismissed, Mongolia will lose,”

said Erkhembayar.

Source: News.mn, 2, 3

BILL PROPOSES 40% SUBSIDY ON FILMMAKING

Mongolia's filmmakers may receive 40 percent back from what they've invested into their movies

from the state if a new bill is passed by Parliament. The Cabinet Secretariat on 25 January

approved for a vote by Parliament on a bill that seeks to support Mongolia's small-but-growing film

industry. The bill would have the government return 40 percent of total expenses spent on film

productions in Mongolia.

Source: Montsame

LICENSING PROPOSED TO CUT OUT UNREGISTERED ACTIVITIES OF PAWN SHOPS

Pawn shops may require licensing from the government after authorities received numerous

complaints about predatory practices from angry clients. The new regulations are a result of the

grievances heard by the National Human Rights Commission and Authority for Consumer Protection

and Fair Competition on the harsh lending conditions put out by pawnbrokers. A new law approved

by the Cabinet Secretariat on 25 June to go before Parliament would require licensing of these

establishments to regulate their activities.

Pawnbrokers currently are not required to pay tax on the lending they provide and likely represent

a large portion of the so-called “shadow economy” that operates outside the financials reported to

the government. The licensing scheme proposed would appoint the Financial Regulatory Committee

as the overseer of these activities.

Source: Montsame

GERMAN-MONGOLIAN MINING UNIVERSITY TO HELP SET EDUCATION STANDARDS

A university using German education is set to help create standards for students who hope to enter

the mining industry. The Mining Ministry on 22 January signed a memorandum with the Mongolia-

Germany Joint University of Minerals and Technology to introduce standards for education on

mining engineering. Signing the document was Mining State Secretary D. Artag, and the university's

director, N. Dorjderem.

Source: Montsame

NEW CUT-OFF DATE PROPOSED FOR PUBLIC SERVANTS TO RUN FOR OFFICE

MP A. Bakei has submitted a bill that may open up campaigning for the parliamentary elections

scheduled for July to more candidates working in the public sector. The amendment to the Law on

Public Service would allow any civil servant who resigned by 1 April to take part in this year's

elections as opposed to current regulations that require them to resign before 1 January.

Source: Montsame

CW-GP LEADER REJECTS JUSTICE COALITION PARTNERSHIP OFFER

Civil Will-Green Party (CW-GP) leader Sanjaasuren Oyun has been left puzzled by a letter requesting

cooperation from the Justice Coalition that makes up a minority leg of the Chimed Saikhanbileg

government. On 19 January, Oyun received a letter asking that the CW-GP and the Justice Coalition

join forces in Parliament so that they can have a stronger voice on issues. The offer also comes

ahead of July parliamentary elections. “I do not understand it very well,” said Oyun. “I guess what

they mean is that the two MPs of the Civil Will-Green Party can attend their meetings because our

http://www.ot.mn/


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http://en.montsame.mn/education/standard-education-mining-engineering-be-introduced

http://en.montsame.mn/politics/public-service-law-might-be-amended

two members cannot implement our ideas in Parliament.”

Oyun said that she and her fellow CW-GP seatholder in Parliament, S. Demberel, had worked well

with the other members of Parliament and that a marriage with the Justice Coalition was

unnecessary. “After considering the matter, we've decided we will not join the Justice Coalition,”

Oyun said.

Source: News.mn

SAIKHANBILEG HIRES FORMER ALTANKHUYAG ADVISOR

With his own head on the chopping block, Prime Minister Chimed Saikhanbileg may be looking for

advice on what occurred at the dismissal of his predecessor, Norov Altankhuyag. Saikhanbileg has

appointed as an advisor M. Khuderbaatar, who advised Norov Altankhuyag before he was ousted in

2014. Both Democrats belong to the Polar Star faction within the party.

Source: News.mn

MONGOLIA AND NORTH KOREA SIGN PROGRAM ON CULTURAL EXCHANGE

Mongolia has agreed to a two-year cultural exchange program with North Korea. Mongolia's

ambassador to North Korea, M. Ganbold, has signed an agreement for the program at the People's

Cultural Palace in Pyongyang.

Source: Montsame

GEORGIA OFFERS COOPERATION FOR 'SILK ROAD' PROGRAM

Georgia's foreign minister has opened talks with Mongolia on the possibility of collaboration on the

so-called ‘Silk Road’ project to build a highway through Mongolia that would connect China and

Europe. On 21 January, in Davos, Georgian Foreign Minister Mikheil Janelidze met his Mongolian

counterpart, Lundeg Purevsuren, where they agreed to hold political consultations between their

respective ministries.

Source: The Financial

BATTULGA, GANSUKH QUESTIONED ABOUT SAMSUNG RAILWAY EMBEZZLEMENT SCANDAL

Former ministers Kh. Battulga and A. Gansukh have been called in for questioning by a working

group investigating officials that may have been involved with an embezzlement scandal for a

railway project to link the Tavan Tolgoi coal mines with China. Authorities say USD6.4 million had

been embezzled from an account with contractor Samsung C&T for the construction of the railway

line, which has languished because of a lack of funding.

Battulga has served as minister of roads and transportation as well as industry and agriculture, in

addition to being the millionaire former judo champion that owns Genco Group. Gansukh is known

to be a close associate of Battulga and served as minister of road and transportation from 2012 to

2014 under former prime minister Norov Altankhuyag.


RAILWAY EMBEZZLEMENT SUSPECT VOWS TO RETURN HOME AND PROVE HIS INNOCENCE

The director of Liberty Partners LLC, who police suspect took part in embezzling funds from a state

railway project, has vowed to return to Mongolia to prove his innocence. Authorities believe Ch.

Ganbat took part in the embezzlement of USD6.4 million in funds from an account connected to

Samsung C&T, which was contracted to build a railway line from the Ukhaa Khudag coal mine and

the Gashuun Sukhait border point to China. “I will go back to Mongolia to get my reputation

restored,” said Ganbat in a letter published by the Source.

Ganbat, who claims to have had American citizenship since 2012, said he returned to Mongolia in

2009 to work with former Road and Transportation Minister Khaltmaa Battulga and his then-advisor

A. Gansukh. In 2010, he established Liberty Partners where he advised the government at no charge

on projects such as the Sainshand Industrial Complex, as well as the railway project.




http://en.montsame.mn/politics/mongolia-and-north-korea-sign-programme-cultural-exchange

http://finchannel.com/index.php/world/georgian-news/item/54354-the-georgian-foreign-minister-has-met-his-mongolian-colleague

http://www.erdenestt.mn/

FORMER MP FLEES TO U.S. AFTER ARREST FOR DRUG POSSESSION

A. Murat, a former MP, has escaped to the United States with his wife and relatives after being

arrested in China. Murat was arrested near the border with Mongolia at Ereen China, for alleged

drug possession. Murat was part of a group caught carrying illegal drugs by Mongolian police, said

authorities [Source does not say where information is sourced from -ed]. Murat was also trying to

smuggle in a separate Mongolian visa, said authorities.


FOSSIL SMUGGLERS CAUGHT, SAY POLICE

Three suspects authorities allege dug up rare dinosaur articles to sell on the black market are facing

up to three years in prison if convicted. Authorities brought in the suspects on 17 January saying

they had dug up a horn and snout that they planned to smuggle out of the country. The fossils dug

up in the Tugrug Valley at Bulgan Soum, Umnugobi Aimag belong to dinosaurs that lived between 71

and 84 million years ago, authorities said.


SISTERS-IN-CRIME ARRESTED

Two suspects authorities say were attempting to smuggle rare antiques out of the country were

caught at the Zamyn-Uud border-cross point to China. The women caught by authorities with 27

separate antiques are sisters, said a spokesperson for the General Intelligence Agency. This was not

the first time the two had attempted such a crime, said the spokesperson, saying they had

committed a similar crime by sending antiques to the border-cross point by mail.

Source: News.mn

MONGOLIA RANKED 72ND IN CORRUPTION PERCEPTIONS INDEX

Transparency International put Mongolia ahead eight places in its annual Corruption Perception

Index (CPI), although its score remains the same. Mongolia ranked 72nd among 168 countries in the

2015 CPI. The forward-movement is Mongolia's third-consecutive year of improvement on the index.

In 2014, it ranked at 80 and at 94 in 2013.

Denmark took the top spot for the second year running, with North Korea and Somalia scoring as the

worst performers, with just 8 points each. Top performers share key characteristics: high levels of

press freedom; access to budget information so the public knows where money comes from and how

it is spent; high levels of integrity among people in power; and judiciaries that don’t differentiate

between rich and poor, and that are truly independent from other parts of government.

Source: Montsame

MARATHON MAN ANDREW MURRAY TAKES ON MONGOLIA TEST

There is, it seems, no expedition too challenging for Andrew Murray. Having already taken part in

the North Pole marathon, which he won, seven ultra-marathons in seven continents in under a

week, and run from the north of Scotland to the Sahara desert, the 35-year-old Aberdonian is now

taking on what could potentially be his toughest challenge yet. This week, Murray raced in the

inaugural Genghis Khan ice marathon in Mongolia, and then set off on a 100-mile run from Genghis

Khan’s birthplace to Ulaanbaatar.

Running is just one string to Murray’s bow. He is a sports and exercise medicine doctor, a general

practitioner, he works with the European and Challenge Tour Golf, the SportScotland Institute of

Sport, Scottish Rugby and is the Scottish Government’s “physical activity champion,” as well as

doing research with the University of Edinburgh. So, with so many things going on in his life, why

does Murray do these extraordinary expeditions?

Source: Herald Scotland

THE TIME HILLARY CLINTON DRANK HORSE MILK IN MONGOLIA

Hillary Clinton once drank warm horse milk in Mongolia—and it tasted "sort of like yogurt that you

would leave out for a week." And only afterward, the doctor traveling with her said he'd need to


http://www.transparency.org/

http://en.montsame.mn/society/mongolia-ranked-72nd-corruption-perceptions-index

http://www.heraldscotland.com/sport/14226352.Marathon_man_Dr_Andrew_Murray_takes_on_Outer_Mongolia_test/

monitor her to make sure she didn't contract "brucellosis"— a cattle disease (she didn't). Clinton told

the story during an interview with Des Moines-area WHO-TV political reporter Dave Price, who had

asked about the surprises she'd encountered during her travels abroad.

She'd visited Mongolia as first lady in 1995, visiting nomads there. In an effort to show hospitality, a

nomadic family had offered Clinton fermented mare's milk. "This was horse milk, and it was offered

with great hospitality and graciousness. And the whole family was looking at me," she said,

laughing. "And so, you know, I lifted it up and I took a little bit of it and it was quite challenging."

Source: CNN

BCM UPDATES:

ANNOUNCEMENTS

BCM MEMBERS INVITED TO JOIN MONGOLIA PROGRAM AT PDAC, 6-9 MARCH, TORONTO

Mongolia will promote the progress made in its mining and geology sectors in recent years at PDAC,

the world’s leading annual International Convention, Trade Show & Investors Exchange for minerals

exploration and mining scheduled on 6 to 9 March in Toronto.

The Mongolian delegation led by the Ministry of Mining and Mineral Resources Authority (MRA) will

consist of representatives of the ministry, major mining companies including Erdenes Mongol, MRA,

Invest Mongolia Agency, the Petroleum Authority, and more. A working group led by MRA will

provide Mongolian businesses the opportunity to promote their projects to investors and have one to

one meeting with potential investors during this world leading international mining investors’

conference.

For more information, call Tsetsegmaa, the senior manager at Invest Mongolia, at +976 88008161,

or email [email protected]. You can also reach MRA External Affairs Officer Chinzorig

at +976 99000357 or [email protected].

KNOWLEDGE SHARING SESSIONS

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

The session was organized in partnership with our member Santis Educational Services on the topic

"Benchmarking standards for language acquisition in the workplace" with 12 members attending.

The session was led by Andrew Orgill, President of Inlingua Mongolia. Language Benchmarking is

how governments, organizations, and industries support the language acquisition of individuals in a

meaningful way. By using an approved objective English-speaking test as part of the screening

process organizations can greatly enhance their chances of commercial success. This test must be

reliable and have a global benchmark. Andrew discussed about these tests, which are now available

here in Mongolia, and why they have become an imperative in today’s marketplaces. During the

session, participants had an on-line connection with Inlingua head office in Switzerland to see their

virtual training facilities.

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

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

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

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

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

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

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

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

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

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

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

http://edition.cnn.com/2016/01/24/politics/hillary-clinton-horse-milk-mongolia/

http://www.santis.mn/

http://www.observeconsulting.com/

BCM ADVOCACY NOTES

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

Parliament

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

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

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

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

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

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

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

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

Source: www.parliament.mn

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

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

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

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

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

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

resolution in Mongolian language, please click here.

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

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

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

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

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

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

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

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

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

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

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

Economic Council was positive toward BCM's comments.

For more information, please contact Working Group Coordinator at [email protected].

BCM WORKING GROUP NEWS

Capital Markets Working Group

BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th

floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan

Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate

Capital Ltd and Mongolian Bankers’ Association.

Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes

proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG

(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working

towards increased foreign investment in Mongolia’. It was suggested by members to include more

emerging players in the capital markets such as the insurance industry and most importantly engage

other stakeholders from government entities with the Working Group. Updates were given on the

developments of ‘custodian banking’ and how the WG can leverage their efforts towards sound

regulations for custodian banks.

On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the

Treasury, Oyu Tolgoi will deliver a presentation on project financing.

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

Coordinator of BCM at [email protected].

_________________________________________

Risk Working Group

BCM’s Risk Working Group’s 2016 kick-off meeting was held on Thursday, 21 January at Suite 101,

12th floor Express Tower, with 14 members in attendance, representing Mandal General Insurance,

MIG Insurance, Deloitte Onch Audit, XacBank, Wagner Asia, Iarudi, Golomt Bank and Bagatumurch

LLC.

Agenda of the meeting:

•16:00-16:10 Introduction and Opening remarks by Working Group Co-Chairs

•16:10-16:50 "Case studies on tax related cases tried at the Supreme Court of Mongolia"

(Bolorchimeg Kh, Lawyer ELC LLP)

•16:50-17:35 Discussion on proposed topics and finalize plan for 2016

Guest speaker, Bolorchimeg of ELC LLP, emphasized that the presentation is illustrative only and it

does not go into details or the legal implications. The presentation focused on: (i) Tax cases

resolved by the Supreme Court - last 3 years, (ii) Tax Dispute Resolution Process and (iii) Case Study

of Tuushin LLC vs Tax Inspectors of General Tax Authority. Members in attendance were interested

in the tax inspectors’ inspection process and what it entails, and in the statistics of the tax related

cases resolved by the Supreme Court.

Zaya Bolorbold, co-chair of the Risk WG (RWG) presented an overview of the last year’s activities

and introduced proposed plans for 2016. Working group members have supported the draft plan for

2016, with some members volunteering as main speakers from Deloitte Onch Audit, Bagatumurch

LLC. Given the current weather condition in Mongolia, it was decided that BCM to reach-out to the

NEMA and/or State Emergency Commission to request a presentation on the 'dzud* situation; it was

also agreed that the presentation can be complimented with Risk Working Group members’

presentation on how the impacts of the dzud will be translated into insurance claim. Next meeting

is scheduled for 3rd week of February.



_________________________________________

Business Ethics Working Group

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

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

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

Corruption (IAAC)

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

Industry, Transparency International, Research Planning Institute;


- Introduction of Working Group’s objectives

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

- Proposed topics and plan for 2016

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

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

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

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

in their respective sector.

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


_________________________________________

BCM’s Logistics Working Group

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

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

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

Dolgoon Delgerekh LLC.


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

• Discuss and plan WG’s 2016 activities

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

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

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

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

the delivery logistics within Ulaanbaatar.

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

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

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

Korea and Mongolia initially and delving into other markets.

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

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

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

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

more insight.

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

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


Coordinator of BCM, at [email protected].

_________________________________________

BCM’s Energy and Environment Working Group

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

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

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

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

Center of Ministry of Energy

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

Guests: Sustainable Fiber Alliance

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

Group


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

for private sector?

Introduction and Opening remarks by Working Group Chair

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

Project Manager, Biennal Update Report to UNFCCC.

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

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

Discussion on the topic among participants

Meeting minutes summary:

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

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

upcoming Chair of the EEWG for 2016 during her absence.

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

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

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

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

[email protected].

_________________________________________

BCM Education Working Group

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

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

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

funded projects:

Foreign Mission: Canadian Embassy;

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

Private sector: PwC, Minter Ellison

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

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

Global Fund;


16:05-16.10 Introductions

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

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

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

Amendments (IRIM/Saha)

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

Meeting minutes summary:

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

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

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

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

will be organized first week of December.

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

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

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

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

highlight a few:

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


‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES

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

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

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

Finance and Economics on 3 December 2015.

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

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

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

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

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

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

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

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

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

of doing an internship there.

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

[email protected] and Bayarmaa Amarjargal, Vice Director at [email protected].

WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS

Presentations (on web):

BCM Monthly Meeting, 25 January:

- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of

the Second Compact agreement between Government of Mongolia and the USA Millennium

Challenge Corporation -

“Development process of the second compact agreement between government of Mongolia and USA

Millennium Challenge Corporation”

- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”

_________________________________________

Presentations:

BCM Monthly meeting on December 7:

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

Leaders Through Education & Idea Exchange”

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

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

STOPP”

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

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

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

_________________________________________

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

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

growth and savings"

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

frontier again: financial market developments"

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

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

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

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

import replacement opportunities EBRD's role in enabling progress"

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

Mongolia: SME perspective"

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

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

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

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

Growth"

_________________________________________

http://bcmongolia.org/knowledge-base/presentation/






Mongolian Annual Risk Management Forum, 11 November:

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

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

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

International Mongolia

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

NPC&Mandal LLC

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

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

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

Insurance

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

Mongolia

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

_________________________________________

BCM Monthly Meeting on 2 November:

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

business”

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

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

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

Law”

_________________________________________

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

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

Credit and Perception Ratings”

_________________________________________

Presentations at BCM Monthly Meeting on 28 September:

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

BCM online platform”

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

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

Study: WAGNER ASIA Group”

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

“Competitiveness in Central Asia”

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

Mongolia's Education & Capabilities Agenda”

_________________________________________

Presentation at Discover Mongolia 2015 on 3 September:

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

industry”

_________________________________________

Presentations at BCM Monthly Meeting on 24 August:

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

Progress"

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

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

_________________________________________

http://bcmongolia.org/cfs/files/images/6uPcsB44M8c7Tebm8/Risk%20management%20case%20Wagner%20Asia%20-Garrett%20Wilson%20-%20ENG%20(1).pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D&download=true

http://bcmongolia.org/cfs/files/images/em7xqxG9P7am2YddG/Public%20building%20and%20disaster%20risk%20management%20-%20Sam%20Sallam%20-Best%20Western-ENG.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D&download=true

http://bcmongolia.org/cfs/files/images/iPLkt6fdtug6Dt8rT/Organizational%20Psychology%20Management%20-%20Delgermend-%20NPCMandal%20ENG.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D&download=true

http://bcmongolia.org/cfs/files/images/KamKtXefpNJFmf8b2/New%20Macro%20Economic%20balance%20BoM%20Munkhbayar%20ENG.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D&download=true

http://bcmongolia.org/cfs/files/images/Z5iacRE5hGteFRKpb/Macro%20Risk%20Outlook%20-%20Ankhbayar%20Mandal-%20ENG.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D&download=true

http://bcmongolia.org/cfs/files/images/BvKBKNjNpi86jbGyE/Global%20perspective%20on%20risk%20management%20-%20Matthew%20Pottle%20PwC%20ENG.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D&download=true

http://bcmongolia.org/cfs/files/images/JDymZFcotnYLK33FZ/Corporate%20crisis%20management-%20Odbayar-%20MNO%20ENG.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D&download=true

http://bcmongolia.org/cfs/files/images/HsuGBaamhkrYaeFva/3.%20Andrew%20Woodley%20(2015.11.02)%20OT,%20Copper.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D

http://bcmongolia.org/cfs/files/images/HsuGBaamhkrYaeFva/3.%20Andrew%20Woodley%20(2015.11.02)%20OT,%20Copper.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D

http://bcmongolia.org/cfs/files/images/Ck7EKC2XQGAdp4AqJ/2.%20Susan%20Cote-Freeman%20(2015.11.02)%20TI,%20Business%20Principles.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D

http://bcmongolia.org/cfs/files/images/RsdGwLGWWY3thTsYA/1.%20Elisabeth%20Ellis%20(2015.11.02)%20Impact%20of%20new%20Labour%20Law.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D

http://bcmongolia.org/cfs/files/images/RsdGwLGWWY3thTsYA/1.%20Elisabeth%20Ellis%20(2015.11.02)%20Impact%20of%20new%20Labour%20Law.pdf?token=eyJhdXRoVG9rZW4iOiJzSFo2VzNvWTM5Y0hORXJHdkJ4aWZYWnBIVU1tMS1PMHhURTBCS1JTc1Q2In0%3D

http://bcmongolia.org/knowledge-base/presentations

http://bcmongolia.org/knowledge-base/presentations

http://bcmongolia.org/cfs/files/images/MFQiksZe68En6KotF/CSR%20REPORT.pptx?token=eyJhdXRoVG9rZW4iOiJQRG5SR3A4a1hTTDNWSFV0MjJOd3ctNFNfZjFPWENfdWliNFBtTVNwSGhCIn0%3D&download=true



http://bcmongolia.org/cfs/files/images/s6gagPjFawEws96i5/BCM%20and%20Mongolia's%20Education%20and%20Capabilities%20Agenda%20FINAL.pptx?token=eyJhdXRoVG9rZW4iOiJQRG5SR3A4a1hTTDNWSFV0MjJOd3ctNFNfZjFPWENfdWliNFBtTVNwSGhCIn0%3D&download=true

http://bcmongolia.org/cfs/files/images/s6gagPjFawEws96i5/BCM%20and%20Mongolia's%20Education%20and%20Capabilities%20Agenda%20FINAL.pptx?token=eyJhdXRoVG9rZW4iOiJQRG5SR3A4a1hTTDNWSFV0MjJOd3ctNFNfZjFPWENfdWliNFBtTVNwSGhCIn0%3D&download=true

http://bcmongolia.org/cfs/files/images/CwHmY7LegERdcAsbN/Javkhlanbaatar%20Invest%20Mongolia.pdf?token=eyJhdXRoVG9rZW4iOiJQRG5SR3A4a1hTTDNWSFV0MjJOd3ctNFNfZjFPWENfdWliNFBtTVNwSGhCIn0%3D

http://bcmongolia.org/cfs/files/images/CwHmY7LegERdcAsbN/Javkhlanbaatar%20Invest%20Mongolia.pdf?token=eyJhdXRoVG9rZW4iOiJQRG5SR3A4a1hTTDNWSFV0MjJOd3ctNFNfZjFPWENfdWliNFBtTVNwSGhCIn0%3D

http://bcmongolia.org/cfs/files/images/BWzPGh3ym4ukE5ec7/Mercy%20Corps%20in%20Mongolia%2015%20years%20of%20Progress.pdf?token=eyJhdXRoVG9rZW4iOiJVU3JyeXQ5YXg2cFRyLXZGSVFDdDFldDJBZjRpdEtXMWgxWFBWcWxsZlFvIn0%3D

http://bcmongolia.org/cfs/files/images/BWzPGh3ym4ukE5ec7/Mercy%20Corps%20in%20Mongolia%2015%20years%20of%20Progress.pdf?token=eyJhdXRoVG9rZW4iOiJVU3JyeXQ5YXg2cFRyLXZGSVFDdDFldDJBZjRpdEtXMWgxWFBWcWxsZlFvIn0%3D

http://bcmongolia.org/cfs/files/images/zh3wMEoirxRpT2eB5/Introduction%20to%20Property%20Development%20Presentation%20v11.pdf?token=eyJhdXRoVG9rZW4iOiJVU3JyeXQ5YXg2cFRyLXZGSVFDdDFldDJBZjRpdEtXMWgxWFBWcWxsZlFvIn0%3D

http://bcmongolia.org/cfs/files/images/pu594GkeQLS6CMmcx/ULBLIB01-#9288-v3-HLUB_Presentation_on_the_newly_adapted_laws_ratified_by_the_Spring_Session_2015.pdf?token=eyJhdXRoVG9rZW4iOiJVU3JyeXQ5YXg2cFRyLXZGSVFDdDFldDJBZjRpdEtXMWgxWFBWcWxsZlFvIn0%3D

Mongolia Reports:

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

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

Priorities (Sep 2015)

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

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

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

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

2015, “FDI Environment in Mongolia”

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

_________________________________________

Interviews:

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

Effective"

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

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

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

August 20, 2015;

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

News, August 20, 2015;

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

SOCIAL NETWORKS

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

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

improving each day with BCM.

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

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

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

https://twitter.com/bcmongolia.

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

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

LinkedIn page.

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

Social stats: BCM now has 11,097 fans on our Facebook fans page, 1,961 connections on

LinkedIn network, and 1,955 followers on Twitter.

_________________________________________

Website: According to Google Analytics report as of 26 January, the daily web traffic to BCM

website was 50 visitors with 70 sessions. 80% were from Mongolia, 5% from the USA and 3% from

Canada.

_________________________________________

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

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

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

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

Technology Innovations."

_________________________________________

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

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

_________________________________________

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

From January 2013 to January 2016 we posted a total of 108 news items related to BCM activities,

economic and business related updates.

_________________________________________

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

from BCM events.

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

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

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

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

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

photos, videos and announcements regarding BCM.

ECONOMIC INDICATORS

INFLATION

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

Year 2007 *15.1% [source: NSOM]








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

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

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

CENTRAL BANK POLICY LOAN RATE

December 31, 2008 9.75% [source: IMF]

March 11, 2009 14.00% [source: IMF]

May 12, 2009 12.75% [source: IMF]

June 12, 2009 11.50% [source: IMF]

September 30, 2009 10.00% [source: IMF]

May 12, 2010 11.00% [source: IMF]

April 28, 2011 11.50% [source: IMF]

August 25, 2011 11.75% [source: IMF]

October 25, 2011 12.25% [source: IMF]

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

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

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

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

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

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

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

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

CURRENCY RATES – 28 January 2016

Currency Rate

US dollar USD 2,008.59

Euro EUR 2,184.34

Japanese yen JPY 16.91

British pound GBP 2,864.35

Hong Kong dollar HKD 257.79

Chinese Yuan CNY 305.46

Russian Ruble RUB 26.07

South Korean won KRW 1.67