25.04.2014, newswire, issue 322
TRANSCRIPT
BUSINESS COUNCIL of MONGOLIA NewsWire
www.bcmongolia.org [email protected]
Issue 322 – April 25, 2014
MONGOLIA INVESTMENT SUMMIT LONDON, 30 APRIL-1 MAY
NEWS HIGHLIGHTS:
Business
Erdenes TT seeks to repay Chalco amid low coal prices;
Erdenes TT receives first payment for West Tsankhi coal;
SouthGobi Resources repeats warning that it needs additional financing;
Teck Resources increases investment in Erdene;
FMG says well positioned for any improvement in sentiment;
Mongolia Growth Group Ltd. presents at NYSSA Mongolia Conference;
Mongolia enlists private sector help for infrastructure development;
UB blacklists seven companies from public works;
Health Expo 2014;
„BCM in the University Classroom‟ lecturer receives official role at IF&E;
BCM offers 50% discount for all new memberships;
Las Bambas sale shows Chinese companies believe in copper;
Anglo American project to improve, accelerate mine rehabilitation;
Areva develops innovative tool for nuclear reactor inspection.
Economy
Mongol Bank: FX auctions, swap agreements, 1-week bills, treasury bonds;
Mongolia paid $83m in 2013 for interest expense on sovereign debt;
Mongolia March copper exports up 53% on rising OT sales;
Development Bank loans total MNT2.56 trillion (USD 1.4 billion);
Development Bank to begin financing via commercial banks, says director;
Anti-corruption Agency releases government officials' income, asset data;
Energy providers cut down on losses in energy transmissions;
Licensed land totals 8.3% of Mongolian territory;
Fingerprint ID systems speed up inspections at Gashuun Sukhait;
Mongolia keen on garment sector cooperation with Vietnam;
Government rolls out “Housing for Herders” initiative;
Mongolia to import 20,000 tons of grain seed;
„11 11‟ Center reports on complaints;
Study finds dangerous levels of lead contamination in UB soil;
Korea invests $400m in Mongolia in two decades;
Mongolia‟s chance for a prosperous future;
“The Gobi desert is a horrible place to work”;
Can world's rarest bear be saved?;
'Solar chimneys' may help solve China's energy woes.
Politics
'Double Deel' law will not scrap the government, says premier;
Korea‟s Unification forum to be held in UB;
MP exits Justice Coalition;
Top Japanese abduction officials in Mongolia;
Japan, Mongolia exchange views on regional issues;
Japan, Mongolia oppose attempt to change status quo by force;
Belarusian senators okay military cooperation agreement with Mongolia;
Korea, China, Russia, Mongolia cooperate on copyright law and IP;
China to join Khaan Quest for the first time;
Kyrgyz premier shows interest in experience sharing opportunities;
Investors checking out of „Hotel Mongolia‟ found in limbo;
Zaisan memorial to undergo renovation.
ECONOMIC INDICATORS
MSE Top 20 Index by market Capitalization;
Foreign-listed Companies with Mongolian Assets;
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
BCM MONTHLY MEETING ANNOUNCEMENT
BCM‘s monthly meeting for members will be on Monday, April 28 at 5PM at the BEST WESTERN
PREMIER TUUSHIN HOTEL, 5th floor, ―Soyombo‖ conference room.
We are very pleased to move to a new location in city center and look forward to successful
meetings in our new venue!
The bilingual meeting will feature the following presentations:
- Call to Order/Business Council of Mongolia: B. Byambasaikhan, Chairman, BCM
- BCM Report: Jim Dwyer, Executive Director, BCM
- J. Sunjidmaa, Corporate & Public Affairs Manager, Peabody Energy – ―Peabody‘s ‗Advanced Energy
for Life‘ global advocacy campaign‖
- A. Bayarmaa, Head of BCM Environmental Working Group/Senior Carbon Finance Specialist, Clean
Energy LLC – ―BCM‘s Green Office Initiative: Starting from waste management and recycling‖
- L. Sumati, Director, Sant Maral Foundation – ―Socio-Political situation in Spring 2014‖
New Members:
1. Best Western Premier Tuushin Hotel - 25 story hotel with 200 rooms offers a wide variety of
luxury accommodations, extensive state of the art conference and banqueting facilities and three
high quality restaurants.
2. Forbes Mongolia Magazine - authoritative source of news and information on business, investing,
technology, entrepreneurship, leadership and affluent lifestyles.
3. International Mining Consulting - independent national company that offers following services for
geotechnical engineering and mine engineering.
4. Mr. Lewis Marks - International trader. Joins as individual.
5. Melbury Capital Mongolia - Melbury Capital is a private equity vehicle seeded by the Reuben
Brothers and a select group of UHNW family offices. The fund achieves superior returns through
tailored, country specific investment strategies in frontier markets. The Mongolia office is currently
developing assets in the mineral extraction space.
A networking reception will be held for all attendees immediately following the business portion of
the meeting in the same ―Soyombo‖ conference room, Best Western Premier Tuushin Hotel.
BUSINESS
ERDENES TT SEEKS TO REPAY CHALCO AMID LOW COAL PRICES
Erdenes Tavan Tolgoi LLC has trimmed its debt to a Chinese customer to USD 130 million from USD
350 million, and aims to pay the remaining amount due this year.
Erdenes TT pays its debt to the Aluminum Corp. of China Ltd., also known as Chalco, in coal. It will
need to deliver an additional 2.5 million metric tons to 3.5 million tons of the fuel to fully settle
the advance payment, Chief Executive Officer Batsuuri Yaichil said in an interview in Mongolia‘s
capital. The price of coal has declined over the past two years, increasing the amount of coal the
company needs to ship to pay creditors. The mounting debts delay income the government needs to
plug budget holes caused by declining foreign investment, which fell 54 percent last year, and
reduced GDP growth, which slowed to 11.7 percent last year from 12.4 percent in 2012.
―The debt to Chalco will be resolved in the next few months; it depends on transportation,‖ said
Batsuuri, adding that the exact amount varies on the delivery point because coal can be picked up
at the mine mouth or the border, with different prices at each location.
Erdenes TT, located 270 kilometers (168 miles) north of the Chinese border in the Gobi Desert, also
owes the Development Bank of Mongolia USD 200 million. The company will pay the debt with new
shares instead of cash, Batsuuri said. The stock payment will be done ―in a short period of time‖ he
said, without giving further details.
The company has exported more than 900,000 tons of coal this year from its two pits, East Tsankhi
and West Tsankhi, Batsuuri said. Unwashed coal from the West Tsankhi stockpile is selling at USD 35
a ton to 10 contracted companies, he said. The 2014 target for exports is 10 million tons, he said.
Last year the company sold 1.9 million tons abroad, a company official said in January. The
company has put on hold plans to construct a USD 550 million coal-washing plant until it‘s on sound
financial footing, Batsuuri said. He said he‘s in talks to wash coal at a plant owned by Hong Kong-
listed Mongolian Mining Corp., also located in the Tavan Tolgoi basin.
Source: Bloomberg
ERDENES TT RECEIVES FIRST PAYMENT FOR WEST TSANKHI COAL
Erdenes Tavan Tolgoi LLC 18 April received USD 17 million for its first payment for coal from Tavan
Tolgoi's West Tsankhi block, said Chief Financial Officer B. Enkhbat.
The USD 17 million earned was the first payment from contracts signed by Erdenes TT with eight
buyers for 4.25 million tons of coal from its West Tsankhi, he said. ―The money has been used to
pay bank loans and interest, and 30 percent of all debt we owed to our operator companies,‖ said
Enkhbat. He added that another USD 18 million would be transferred into Erdenes TT's account this
week, which would be used to pay the remaining debt owed to the operators at West Tsankhi.
Last year Erdenes TT saw MNT 28.8 billion in profits from its main operations. That came against a
MNT 79.3 billion deficit, which Enkhbat attributed to the devaluation of the tugrug against the
dollar. ―According to Mongolian law we made our financial statement in MNT, which showed us as
losing company but in reality it is not. All our loans are in USD and we pay it back in USD.‖
Erdenes TT would continue paying loans for up to two more years, he said. ‖The loans will not
cause finance difficulties,‖ he said.
Source: Zuunii Medee
SOUTHGOBI RESOURCES REPEATS WARNING THAT IT NEEDS ADDITIONAL FINANCING
SouthGobi Resources Ltd. has repeated a warning that it's in dire need of additional financing to
relieve a cash shortage and help it keep operating through a period of low coal prices.
The company, part of the Rio Tinto group of companies, says it has USD 15.8 million of cash as of
April 21, including USD 8 million from a prepayment for future coal deliveries. It also has a USD 7.9
million cash payment due on 19 May, to pay for interest on a debt owed to China Investment Corp.
"While the company intends to secure additional sources of financing as soon as possible, a
continued delay in securing additional financing could ultimately result in an event of default of the
$250.0 million CIC convertible debenture, which if not cured within applicable cure periods in
accordance with the terms of such debenture, may result in the principal amount owing and all
accrued and unpaid interest becoming immediately due and payable upon notice to the company by
CIC."
The company, which is listed on both the Hong Kong and Toronto stock markets, said Monday that it
expects coal prices in China will remain under pressure in 2014 and that will affect its margins and
liquidity. SouthGobi previously warned on 24 March that it would be difficult to meet its debt
obligations this year and could face a default of a USD 250 million convertible debenture issued by
CIC.
In the fourth quarter ended 31 December 31, SouthGobi reported a net loss of USD 138.7 million, or
75 cents per share, and USD 32.4 million of revenue. For the full year, its loss was USD 237.4 million
or USD 1.30 per share with USD 58.6 million of revenue.
The company noted Monday that sales volume is usually lower in the first quarter of each year due
to seasonal holidays in Mongolia and China. It didn't provide guidance on the value of the first-
quarter sales nor provide an earnings estimate.
Source: Times Colonist
TECK RESOURCES INCREASES INVESTMENT IN ERDENE
Teck Resources Ltd. has increased its investment in a small Halifax-based mining company that will
use the funds to explore for copper in Mongolia under a strategic alliance announced last year.
Vancouver-based Teck, one of Canada‘s largest mining companies, received two million additional
shares of Erdene Resource Development Corp. for 17.5 cents each, for a total of USD 350,000. As a
result of the recent purchase and its previous holdings, Teck controls up to 14.2 percent of Erdene‘s
common shares through about nine million common shares and one million purchase warrants.
Erdene announced last week that the private placement would be used for exploring the Khuvyn
Khar copper project and other Teck Alliance projects in Mongolia.
Erdene announced separately Monday, after the Teck deal closed, that it expects to sell a further
four million equity units at 16 cents each through another private placement for gross proceeds of
USD 650,000. The money will be used to fund exploration on Erdene‘s wholly owned Altan Nar
project, which has gold and other metals. Erdene said it expects the private placement of units will
close by 2 May.
The units consist of one Erdene common share and half of a share purchase warrant. Each full unit
will allow the holder to buy an Erdene common share for 24 cents within two years, subject to
conditions.
Erdene shares opened Monday at 17 cents per share on the Toronto Stock Exchange.
Source: The Province
FMG SAYS WELL POSITIONED FOR ANY IMPROVEMENT IN SENTIMENT
FMG's Mongolia Fund reported noted some marked successes in retail investment while mining
assets struggled given the soft market for coal.
―It was another tough quarter for the Fund as the Mongolian currency lost almost 7% to the USD,‖
reads the Source. ―Our equity holdings contributed positively with some of our small and mid-cap
MSE listed companies registering solid performance. During the quarter we have been deploying
some of Fund´s cash and have been adding to core holdings on share price dips, created by a fairly
volatile market.‖
The Source reported that APU JSC—one of the fund‘s core holdings—had seen the arrival of its
Soyombo vodka brand to the U.S. market, as well as an online spirits retail site in Canada. Gobi
Cashmere JSC reported strong 2013 results, with revenue growth of 20 percent and earnings growth
of 35 percent. Mining sector investments fared more poorly, with Mongolian Mining Corp. (MMC)
announcing an annual net loss of USD 58 million for 2013. MMC's average selling price of its hard
coking coal fell 15 percent last year.
Source: FMG
MONGOLIA GROWTH GROUP LTD. PRESENTS AT NYSSA MONGOLIA CONFERENCE
Ulaanbaatar-based real estate investment and development company Mongolia Growth Group Ltd.
(MGG) presented at the ―2nd Annual Investing in Mongolia‖ conference hosted by The New York
Society of Security Analysts (NYSSA) on 24 April.
Executive Chairman Harris Kupperman spoke on behalf MGG for the event. The mission of the NYSSA
is to serve the needs of all members and investment professionals and to educate the investing
public.
Source: Mongolia Growth Group Ltd.
MONGOLIA ENLISTS PRIVATE SECTOR HELP FOR INFRASTRUCTURE DEVELOPMENT
Mongolia has entered into five concession agreements for public works, said S. Bekhbat, chief of
innovation and the public-private partnership department of the Economic Development Ministry on
Wednesday during a visit to the ‗11 11‘ government assistance hotline.
Mongolia is following the example of developed countries in its pursuit of public-private
partnerships, he said. He said the Mongolian government contracts out jobs to privately owned
companies for the expertise and experience found in the private sector. Bekhbat named five
completed concession agreements: the Nariin Sukhiat-Shivee Shuren paved road project was
contracted out to RDCC LLC for MNT 88 billion; the Telmen thermal plant project was contracted to
New Asia Group LLC for USD 183 million; the Altan Bulag-Ulaanbaatar-Zamyn Uud highroad project
was contracted to Chinggis Land Development Group-New Development Road LLC; the Mining and
Metallurgical Complex project was contracted to QSC LLC; and the Tuul Songino Water Reserves
Complex project was contracted to Ulaanbaatar Water Charge Power Plant LLC.
Source: Montsame
UB BLACKLISTS SEVEN COMPANIES FROM PUBLIC WORKS
Ulaanbaatar has blacklisted seven companies that it says provided poor-quality services or failed to
complete the work contracted out to them for public works.
The Ulaanbaatar City government submitted to the Ministry of Finance the names of Nemut LLC,
Mot Metall LLC, Astai Mongol LLC, Nomgon Khairkhan LLC, Tovuu Zasag LLC, Chi Chi Kha Ar Urban
Planning and Engineering LLC, and Berkh Zaraa LLC so that they are not again included in the
bidding for government contracts. The city also submitted the names of the officials who approved
the selection of these companies [those names were not included in the Source -ed].
The bulk of the companies included in the list received their contracts prior to 2012.
Source: Undesnii Shuudan
HEALTH EXPO 2014
The Health Sector Council at the Mongolian National Chamber of Commerce and Industry (MNCCI)
will co-organize Health Expo-2014 together with Mongol Em Impex LLC on 25 to 27 April in the
chamber‘s exhibition hall.
Doctors will speak on providing cheaper diagnostic services, medicinal practices at the event. The
exhibition aims to attract private hospitals to Mongolia, as well as importers of medical facilities,
medicine producers and distributors, and cosmetic surgery companies. Also expected to attend are
representatives of health clubs and gyms.
Source: Montsame
„BCM IN THE UNIVERESITY CLASSROOM‟ LECTURER RECEIVES OFFICIAL ROLE AT IF&E
The Institute of Finance and Economics (IF&E) has named BDSec Chief Operating Officer Nick
Cousyn as an honorary member of the Specialized Council of the Finance Management Program after
his giving multiple voluntary guest lectures to its students.
Cousyn received the title senior advisor and guest lecturer from the university after speaking four
times to students. Most recently, Cousyn spoke on 16 April to an audience of 63 students during
their fourth-term undergraduate Economy and Banking class.
―I couldn't be more excited to help educate the students of the university in regards to Mongolia's
capital markets and give them practical advice based on my real-world experience,‖ said Cousyn.
Source: BCM
BCM OFFERS 50% DISCOUNT FOR ALL NEW MEMBERSHIPS
The Business Council of Mongolia (BCM) on 24 April announced it would offer a 50 percent discount
for all new membership categories.
The discount will be automatically deducted from these regular dues. Included in membership is the
invitation to monthly meetings—now to be held at the centrally located Best Western Hotel, receipt
of the BCM NewsWire each week, and the opportunity to take part in any of BCM's six working
groups.
―As Mongolia‘s economy continues to grow at an unprecedented rate, exciting and rewarding
opportunities are being created in many sectors of our economy, especially in agriculture, power,
infrastructure, tourism and mining,‖ said Chairman Bayanjargal Byambasaikhan in a letter to
members. ―The BCM stands to help you unfold those potentials and maximize the ensuing benefits
for its members and for the Mongolian society.‖
Source: BCM
LAS BAMBAS SALE SHOWS CHINESE COMPANIES BELIEVE IN COPPER
In one of China‘s largest mining acquisitions in recent years, Glencore Xstrata announced Sunday it
had sold the Las Bambas copper mine to a Chinese consortium led by MMG Limited in a USD 5.85
billion cash deal.
Other members of the joint venture are Guoxin International Investment Corp., a Hong Kong
financial company and Citic Metal Co. MMG will be the operator with a 62.5 percent stake, GIIX will
hold 22.5 percent and Citic 15 percent.
―This is a transformational acquisition for MMG, said MMG CEO Andrew Michelmore. ―Our
investment in the project of national importance is the first step in what we see as a long-term
relationship with Peru.‖ ―This acquisition is consistent with China Minmetals‘ vision for MMG as its
international investment platform for base metals projects,‖ he stressed. MMG anticipates that the
deal will be completed in the third quarter of this year.
Located in Cotabambas, Apurimac Region, Las Bambas is expected to commence production in
2015, producing more than two million tons of copper concentrate in its first five years of
operation. It is expected to operate for over 20 years with opportunities to extend the existing
resource and mine life. The Chinese government had refused to approve the merger between
Glencore and Xstrata unless Las Bambas was sold to Chinese companies. BMO Capital Markets and
Credit Suisse Securities are acting as financial advisors to Glencore in connection with the sale.
MMG said the transaction and project capital cost ―are fully funded using a combination of equity
and long-term debt to be arranged through a Chinese bank.‖
Paul Gait, analyst at Bernstein research, said a sale above USD 6 billion, including capital
expenditure was impressive at a time when the copper price has been under pressure. ―It‘s strong
confirmation that China‘s appetite for metals has further to run,‖ the Financial Times quoted Gait
as saying.
Source: Mine Web
ANGLO AMERICAN PROJECT TO IMPROVE, ACCELERATE MINE REHABILITATION
Diversified miner Anglo American PLC‘s thermal coal business, Anglo Thermal Coal, has developed
and patented a bioconversion technology that it believes could significantly reduce the cost and
improve the rate and quality of opencast mine rehabilitation.
The bioconversion technology, which claims ―to do in six months, or one growing season, what
nature does in 60 years‖ has been trialed at four Anglo American coal mines and, in certain
applications, had shown ―extremely‖ positive results, on rehabilitated mining pits and coal discard
facilities, said Anglo American mine closure manager Henk Lodewijks in a statement.
Known as Fungcoal, a combination of the words ‗fungi‘ and ‗coal‘, the R17.5-million project
harnessed fungi and weathered coal to produce natural fertilizers that were regarded as the
building blocks of soil fertility and plant life. The project was being undertaken in partnership with
Rhodes University‘s Institute for Environmental Biotechnology. The partnership began in 2004 when
Anglo Thermal Coal sought ways of accelerating and improving the quality of rehabilitation at its
opencast mines.
The next step in the project would be to establish a thorough record of land that had been
rehabilitated with Fungcoal and gain a greater understanding of Fungcoal‘s use in other applications
and over a longer time. Engagement with regulators would take place as the project moved closer
to the commercial phase.
Source: Mining Weekly
AREVA DEVELOPS INNOVATIVE TOOL FOR NUCLEAR REACTOR INSPECTION
Areva SA on 16 April announced it had developed an innovative new tool for nuclear reactor vessel
inspections. The new technology is called the Lower Girth Weld Inspection Tool, is fully automated
and can be used in all types of pressurized water reactors to allow nuclear power plant personnel to
perform inspections remotely.
Vessel inspections are essential to the proper maintenance of reactors. Areva claims this tool
creates a more efficient and cost-effective process while improving worker safety. Areva designed
the tool in accordance with the Electric Power Research Institute's Materials Reliability Program and
the U.S. Nuclear Regulatory Commission NUREG 1766 regulation.
―Building on Areva‘s expertise in nuclear reactor outages and maintenance, our teams have
developed an inspection technology which can be used in all types of pressurized water reactors. By
providing safer and more efficient inspections, this tool can support utilities around the world in
optimizing the long term reliability of their operations,‖ said Philippe Samama, Areva‘s Installed
Base Business Division executive vice president.
Areva is also set to participate in the creation of a radioactive metallic waste treatment plant in
the United Kingdom, along with British companies Mace and Atkins. The plan is for the partnership
to design and construct a facility to handle the treatment of materials currently present on site at
the Sellafield nuclear reprocessing site.
Source: PennEnergy
ECONOMY
MONGOLA BANK: FX AUCTIONS, SWAP AGREEMENTS, 1-WEEK BILLS, TREASURY BONDS
The Bank of Mongolia on 24 April reported the auction of USD 14.2 million and CNY 28 million at
closing rates of MNT 1,788.02 and MNT 286.51, respectively. On the same day, the Bank of Mongolia
received an equivalent of USD 80 million from swap agreements with commercial banks.
The central bank also reported on 24 April the issue of one-week bills worth MNT 503.7 billion at a
weighted interest rate of 10.5 percent.
On 23 April, the central bank reported MNT 30 billion in bids for the auction of three-year treasury
bonds with a face value of MNT 20 billion. Each unit was worth MNT 1 million and sold at a premium
price with a weighted average yield of 12.74 percent.
Source: Bank of Mongolia
MONGOLIA PAID $83M IN 2013 FOR INTEREST EXPENSE ON SOVEREIGN DEBT
Mongolia paid in USD 83.3 million in interest last year for its sovereign debt. Mongolia paid USD 63.3
million for the 2012 Chinggis bond and USD 20 million for the USD 580 million bond issued by the
Development Bank of Mongolia earlier that same year.
Source: Zuunii Medee
MONGOLIA MARCH COPPER EXPORTS UP 53% ON RISING OT SALES
Mongolia's copper concentrate export volumes leaped 53 percent year-on-year in March, with rising
output from the USD 6.5 billion Oyu Tolgoi project run by Anglo-Australian miner Rio Tinto PLC
driving up sales, official data showed.
According to figures released on Wednesday by Mongolia's National Statistical Office, copper
concentrate accounted for 35 percent of the country's total mineral export earnings in March, with
sales totaling USD 349 million, a 67 percent rise compared with USD 209 million a year earlier.
Exports of Mongolian coal grew 8.4 percent over the period, but its value fell 1 percent because of
a drop in coal prices, the report said.
Copper concentrate sales continue to climb with deliveries to Chinese smelters by the Oyu Tolgoi
project, the biggest foreign investment in Mongolia, rising to match current production capacity.
"Concentrate sales continue to accelerate and are matching current production," said Turquoise Hill
Resources, the 66 percent stakeholder in the project. Turquoise Hill is majority owned by Rio Tinto.
Crude oil and gold exports also saw spikes in sales volumes, growing 68 percent and 110 percent,
respectively. Gold exports have grown as a result of legislation passed by Mongolia's parliament to
reduce royalties to a flat 2.5 percent from 5 to 10 percent. Mongolia surrendered the tax income in
the hopes of building up its gold reserves to bolster the local currency, the tugrug, and squash black
market trade in the precious metal.
China was involved in 56 percent of Mongolia's foreign trade over the month, with Russia accounting
for 16 percent. The total trade turnover in March fell 1.6 percent from the year before, reaching
USD 1.98 billion. Trade with China grew 9 percent in March from the same period of 2013 while
trade with Russia fell 2 percent.
Source: Reuters
DEVELOPMENT BANK LOANS TOTAL MNT 2.56 TRILLION (USD 1.4 BILLION)
The Development Bank of Mongolia has granted MNT 2.56 trillion (USD 1.4 billion) in loans and
financed 22 projects since its establishment in 2011, said an Executive Director N. Monkhbat on
Monday.
The Development Bank has begun to see repayment for the loans it has granted, said Monkhbat, and
the bank's authorized capital had doubled. Profits before taxes were MNT 35 billion last year,
thereby ending the need for government subsidies, Monkhbat said.
An audit conducted last year found the bank had capital of MNT 169.3 billion and that the bank had
not breached any standards or laws. The bank has a MNT 1.83 trillion in financial resources. It plans
to loan MNT 1 trillion via commercial banks to fund projects that focus on essential replacing
imports with domestically produced goods.
The Development Bank, one of the some 500 developmental banks around the world, functions to
support national economic growth and finance the development, developing via the implementation
of ―classic" standards, Monkhbat said.
Source: Montsame
DEVELOPMENT BANK TO BEGIN FINANCING VIA COMMERCIAL BANKS, SAYS DIRECTOR
The Development Bank of Mongolia will begin financing all 888 projects selected by the Economic
and Development Ministry in May, said bank director N. Munkhbat.
―The 888 projects will be financed through commercial banks,‖ he said, ―We will sign
memorandums of understanding with all 14 commercial banks operating in Mongolia within this
week.‖
Munkhbat said the first to receive financing at a 9 percent rate would be the most highly evaluated
projects where there was sufficient collateral. Some projects will receive guarantees from National
Insurance Corp., he said, suggesting that it was likely the insurance company would partner with
other insurers for the initiative.
Earlier this year the Economic Development Ministry selected 888 projects submitted for proposed
financing. Each of the projects aim to either replace essential import goods with domestically
produced substitutes or the production of goods for export.
Source: Undesnii Shuudan
ANTI-CORRUPTION AGENCY RELEASES GOVERNMENT OFFICIALS' INCOME, ASSET DATA
The Independent Agency Against (IAAC) corruption has released the declared net worth of 239 civil
servants and elected officials.
Mongolian laws required that government officials declare their land assets and income each year to
the IAAC. The following are the statements made by Mongolia's most prominent public officials'.
Name and
title
Income
in 2012
(Million
of
MNT)
Family
Income
in 2012
(Million/s
of MNT)
Income
in 2013
(Million/
of MNT)
Family
Income
in 2013
(Million/
of MNT)
Assets Changes of real
states and others
Ts.
Elbegdorj,
118 N/A 59 6 One apartment, 23
horses, five cows,
No change of
shares owned
President 30 sheep and 15
goats; MNT 635
million in valuables
and MNT 75. 744
million in his
account; no
vehicles,
investments in
companies
including Mushtaag
LLC, Ankh-Erdene
LLC, Liberty
Institute, Asu LLC,
and Jenco tour
Bureau Co. LTD.
Z. Enkhbold,
Parliament
Speaker
75 N/A 85 20.499 Two apartments;
one horse; and no
vehicles
No change of
shares owned
N.
Altankhuyag,
Prime
Minister
302 180 318 160 Two apartments; a
Lexus-470 and a
Lexus-570; and
MNT 114 million
MNT in savings
account
No change
D. Bat-
Erdene,
Minister of
Defence
2,006 324 22 36 Owner of
Tavantolgoi
company
N. Batbayar,
Minister for
Economic
Development
227 44 85 70
Kh. Battulga,
Minister of
Industry and
Argiculture
123.133 122.64 22.78 24.5 Invested in House
Design company
and it is 16th
company he
invested
Ts.
Bayarsaikhan,
Minister of
Construction
and City
planning
20 35 41 51 No change of
shares
L. Bold,
Minister of
Foreign
Affairs
208 0 33,139 0 Large increase of
income related to
selling Bodi Group.
Owns shares of 28
companies in 2012,
3 companies in
2013.
L Gantumur,
Minister of
244 28 18 57
Education
and Science
D.
Gankhuyag,
Minister of
Mining
19 N/A 344 13 Owns shares of 10
entites. In 2013
sold 2 company
shares.
S. Oyun,
Minister of
Environment
and Green
Development
ca. 21 144 43 28
Ts.
Oyungerel,
Minister of
Culture,
Sport and
Tourism
27 (66) 66 118 234 Has loans of MNT
568 million
Ch.
Saikhanbileg,
Minister of
Government
Office
Ca. 21 126 21 140
Ya.
Sanjmyatav
Minister of
Labor
17 N/A 23 23
M. Sonompil
Minister of
Energy
1,106 0 1,120 0 Owns shares of 4
companies(invested
in Palace Hotel in
2013) andhas loan
of MNT 5742
million
Kh. Temuujin
Minister of
Justice
24 0 27 0
D.
Terbishdagva
Deputy Prime
Minister
126 N/A 22 30 Owns shares of 11
companies
Ch. Ulaan
Minister of
Finance
18 N/A 21 26 He has 120 horses
Gansukh
Minister of
Road and
Transport
269 204 24 304 Owns shares of 11
companies and has
MNT 1145 million
loan
Udval
Minister of
Health
10 20 29
Foreign Affairs Minister Luvsanvandan Bold had the highest income in 2013, last year earning MNT
33.140 billion and declaring zero income for his family. Following Bold among the wealthiest public
officials were MP J. Enkhbayar with 3.72 billion, MP D. Zorigt with 2.47 billion, and Energy Minister
M. Sonompil with MNT 120 million.
Source: Undesnii Shuudan
ENERGY PROVIDERS CUT DOWN ON LOSSES IN ENERGY TRANSMISSIONS
Losses seen during the transmission of energy in central Mongolia last month fell slightly against last
year to 16.5 percent, reported the Energy Regulatory Commission.
Losses fell by 1.4 percent in the region in March from the same period in 2013. The National
Electricity Distribution network saw a 0.09 percent loss in energy transmissions compared with 2.16
percent by the Ulaanbaatar network, and between 1.02 and 3.09 percent for the energy distributors
for Darkhan, Selenge Aimag, Baganuur District, Huvsgul Aimag, and the southeast region of the
country, reported energy officials.
The amount of energy delivered by 11 companies grew by 70.7 million kilowatt hours, or 7.2
percent, in the central region during the same period compared with the year before. State-owned
Ulaanbaatar Electricity Distribution Network increased the amount of energy it purchased by 10.1
percent.
Source: Montsame
LICENSED LAND TOTALS 8.3% OF MONGOLIAN TERRITORY
A total of 2,886 licenses for mining and exploration activities are in effect in Mongolia, according to
data from the Mineral Resources Authority.
Still in effect are 1,309 licenses for mining and 1,577 for exploration for a total. Licensed areas
account for 13 million hectares of land, or 8.3 percent of Mongolian territory. Mineral licenses have
been granted for gold (29.1 percent), building materials (17.3 percent), coal (14.5 percent),
fluorspar (10.1 percent) and iron ore (3.5 percent).
Coal and gold operations represent the largest areas for total licensed land. Mongolia has 130 joint
ventures and 291 foreign invested companies holding active licenses.
Source: Montsame
FINGERPRINT ID SYSTEMS SPEED UP INSPECTIONS AT GASHUUN SUKHAIT
A new fingerprint identification system has gone online at the Gashuun Sukhait border port.
The introduction of the fingerprint identification has reduced wait times, allowing for 800 to 1,200
trucks to pass through the border daily. Border checks now reportedly take one minute before
trucks are allowed to pass. Gashuun Sukhait sees the transport of coal and copper from Mongolia's
largest mines
Meanwhile, at the Chinese border port, lunch hours have been reduced and the frequency of power
outages have reportedly lessened.
Source: Undesnii Shuudan
MONGOLIA KEEN ON GARMENT SECTOR COOPERATION WITH VIETNAM
Mongolia is keen on cooperation in the garment and textile sector with Vietnam, especially with Ho
Chi Minh City, said a Mongolian government official.
Mongolia hopes to have an exchange of experts in garments and textile production, said Regzenda
Sandag, vice director of the department of light industry policy implementation and coordination at
Mongolia's Ministry of Food, Agriculture and Light Industry. He said the Mongolian government was
employing several initiatives for economic development and the integration of the Mongolian
economy with the global economy.
Several products from Mongolia benefit from preferential tariffs in the European market. Also
Mongolia and Japan are in the final stages of negotiating a free trade agreement. Investors in
Mongolia, particularly those investing in industrial operations, would benefit from incentives such as
financial assistance and tax exemption, he said.
Nguyen Binh An, deputy head at the southern office of the Vietnam National Textile and Garment
Group (Vinatex), said Vietnam‘s garment and textile industry is growing at an average annual rate
of 15 to 20 percent. Vietnam manufactures about 3 billion garments a year and employs around 2.5
million people, he added. Vietnam is currently in the process of setting up an entire value chain for
textile and garment production, including spinning, weaving and dyeing. He suggested that Mongolia
might like to partner with Vietnam in this initiative.
In 2013, trade between Ho Chi Minh and Mongolia was around USD 3 million.
Source: Fibre2Fashion
GOVERNMENT ROLLS OUT “HOUSING FOR HERDERS” INITIATIVE
The Ministry of Industry and Agriculture is rolling out the ―housing for herders‖ program to assist
herders in improving their standards of living.
This program aims to secure herder family income to permit herders to participate in a government-
sponsored housing program, said ministry officials officers. Herders will enroll in accounts to collect
income earned from the sale of their raw materials to meet the financial requirements for loans.
Mongolia has some 146 herder families, 61 percent of whom have between 200 and 1,000 animals to
for annual income of between MNT 4.8 million and MNT 51.6 million each, according to ministry
data. The ministry plans for the program to run between 5 and 15 years, at a cost of MNT 910
billion.
Source: Montsame
MONGOLIA TO IMPORT 20,000 TONS OF GRAIN SEED
Mongolia will import 20,000 tons of grain seed to meet this year's crop growth targets.
Mongolia has estimated that it will need 48,000 tons of grain seed for crop growth this spring.
Today's farms have a total reserve of 26,800 tons of grain seed, while the Agricultural Support Fund
has 1,200 ton of seed. The country plans to import the remaining 20,000 tons of seed from the
Republic of Buryatia in Russia. The first shipment of seed from Buryatia arrived in Hotol Soum,
Selenge Aimag.
Another 6,800 tons of seed would then be supplied to the Agricultural Support Fund, with 13,200
tons more of seed to be sourced from local organizations. The ministry has also announced a MNT
120 million tender contract to supply 11 types of onion bulbs. A national initiative for potato supply
will see 125,000 virus-free potato seed brought to farmers for spring.
Source: Montsame
„11 11‟ CENTER REPORTS ON COMPLAINTS
Last week, 1,092 people engaged the '11 11' for assistance.
The State Registration Authority said they are looking to resolve the many complaints they received
about the denial of services for government services machines at some commercial banks and public
organizations. Another 73 people engaged the center for inquires regarding the ban on the
allotment of new land while Ulaanbaatar develops and employs its urban development plan.
Inquirers were directed to the website umch.ub.gov.mn to apply for land acquisitions.
Source: Montsame
STUDY FINDS DANGEROUS LEVELS OF LEAD CONTAMINATION IN UB SOIL
A recent study found that soil samples from Ulaanbaatar were double the standards for the content
of heavy metal and pollutant content.
The study took samples from 300 sites across Ulaanbaatar over the course of two years. Soil samples
contained 1,400 parts per million (PPM) of lead compared with international standards that say lead
content should not exceed 500 PPM.
The study concluded that household waste contributed to 72 percent of soil contamination. Lead
content in soil naturally ranges between 50 and 400 ppm. Exposure to lead can lead to the harmful
effects of lead poisoning, such as neurological damage and slowed development in children. For
adults lead poisoning can have effects such as poor muscle coordination, nerve damage, increased
blood pressure, hearing and vision impairment, birth defects, and slowed fetal development.
Source: News.mn
KOREA INVESTS $400M IN MONGOLIA IN TWO DECADES
South Korea has grown to be Mongolia's seventh largest investor, investing USD 400 million in the
two decades following the opening of diplomatic relations in 1991.
South Korea invested 26 percent of its total investment into mining, 17 percent to wholesale and
retail trade, 10.5 percent to information technology, 10 percent to real estate and rentals, 6.7
percent to medical care, and 6.5 percent to construction. Korea was Mongolia's fourth largest trade
partner in 2013, with the trade volume between Mongolia and Korea totaling USD 507.3 million that
year. Export to Korea, however, represented just 2.56 percent of that trade.
South Korea granted USD 28.2 million between 1991 through to 2010, and provided low-interest
loans totaling USD 68.3 million.
Source: Zuunii Medee
MONGOLIA‟S CHANCE FOR A PROSPEROUS FUTURE
Regional integration offers Mongolia the opportunity for a more prosperous future. But the country
has lagged in this effort, which is surprising given its geographical location in a region where bold
integration initiatives have been launched, such as China‘s ―Silk Road Initiative,‖ and where
economic alliances have been strengthened under Central Asia Regional Economic Cooperation
(CAREC) and Shanghai Organization for Cooperation (SCO).
Mongolia has great integration potential. While there is interest in these mineral resources among
E.U. and U.S. companies, far more promising markets are just around the corner with ASEAN, China,
Japan, and South Korea—all belonging to an East Asia region that boasts a greater dynamic growth
outlook than the European Union or United States. Furthermore, Mongolia has the option to
diversify an economy heavily dependent on mineral exports by developing its agricultural sector,
especially livestock and dairy farming, for export to China, Japan, and Korea.
Creating a Northeast Asia Free Trade Association (NEAFTA) is high on political agendas—although
the NEAFTA seems to be interpreted in different variations. ASEAN is the most successful regional
integration effort in Asia and among developing countries. ASEAN is planning to install a common
market with the ASEAN Economic Community by 2015 for the free exchange of goods, services,
investments, capital, and to a certain extent, labor. ASEAN has created an advanced financial
integration scheme in form of a common surveillance mechanism and a comprehensive currency
swap arrangement including a capacious reserves pool, the Chiang Mai Initiative Multilateralization,
to function as a shield against liquidity shortage risks.
All this has happened with the close participation of China, Japan, and Korea under the ASEAN+3
scheme connecting the 10 ASEAN members in different economic, financial, and infrastructure
dimensions to Asia‘s ―big three.‖ ASEAN+3 could be the optimal ―docking station‖ for Mongolia‘s
regional integration. However, Mongolia is not part of Southeast Asia, which is a requirement under
the ASEAN Charter. One option would be to link Mongolia as a fourth East Asian country so that
ASEAN+3 would become ASEAN+4.
The Author Sebastian Paust is a senior adviser to the managing board of Deutsche Gessellschaft fur
International Zusammenarbeit (GIZ). He is a member of the ADBI advisory council, has served as a
member of the GIZ managing board, and as a member of the Asian Development Bank executive
board.
Source: The Diplomat
“THE GOBI DESERT IS A HORRIBLE PLACE TO WORK”
A year ago, Amarsanaa Batsuren was ensconced at home in London's Victoria. This opencast mine
has lured him back to Mongolia after 20 years in the capital. "The Gobi's a horrible place to work.
But this job—this all ends up as Mongolia's food," he says, his voice tinged with pride. We were
standing on an estimated 6 billion tons of coking and thermal coal. Tavan Tolgoi.
From Tavan Tolgoi, the coal trucks rumble south to China, churning up dust and unsettling Uyanga
Damchaa's animals. Everyone else has moved, she said. Soon she will follow suit, with her little girl
Duurenjargal and the rest of their family. "It's not a nice thing when they destroy your pasture. I
know this mountain, for instance, has spirits."
The compensation has been meager. At the last parliamentary election, parties wooed voters with
cash handouts – funded by pre-selling Tavan Tolgoi's coal. Since the costs of mining and transport
then rose, "what they were promising in the elections—everything to every citizen—was all a loan
from China and now we are paying the debt. In the long run probably nothing will be left for the
future of Duurenjargal. It's kind of bleak," he says.
Herding was once organized around monasteries. As the Soviet era dawned, the herds were
collectivized. And when the USSR disintegrated decades later, the newly unemployed returned to
the land. The number of herders almost doubled. So did the country's livestock, to 45 million. The
shift exacerbated overgrazing and desertification, because they damage grassland; around 70
percent is now considered degraded. That is thought to be one contributor to the dzuds, or winter
disasters that have caused millions of animal deaths. Another is the inexperience of newer herders,
and partial settlement as people invest in property and send their children to school in town.
These days nomads have insurance for such catastrophes, as well as bank loans secured on their
herds. An even bigger change is coming: local governments are formalizing grazing rights. But
families who lease pastureland move less, Ahearn-Ligham says, so it degrades faster.
Source: The Guardian
CAN WORLD'S RAREST BEAR BE SAVED?
Fewer than three dozen Gobi bears survive in one of the harshest places on Earth.
The Gobi is Earth‘s fifth largest desert, sprawling across half a million square miles of southern
Mongolia and northern China. It sees temperatures of -40 degrees Farenheit in winter and 120 in
summer, and gets just two to eight inches of annual rainfall. Some years parts of the region receive
no rain at all.
During an expedition, a male Gobi bear stopped at an oasis to rest. Most bears become active
toward day‘s end, but this one remains oddly still. When he finally attempts to walk, his gait seems
pained and slow. He must have traveled a great distance to reach water, I tell myself, and the
journey might have left him exhausted and temporarily lame. In reality, the bear is dying. A week
later a ranger finds his body near the same oasis. The old male had likely emerged from hibernation
in poor condition at a time when food plants were just starting to grow.
The Mongolian public has embraced the beleaguered bear as a national treasure, all the more
precious for its rarity. Although they belong to the species Ursus arctos, commonly known as the
brown bear or grizzly, Gobi bears' coats are often more bronze than brown and show blazes of white
on the forequarters and neck. They also tend to be smaller than most North American grizzlies,
whose living conditions are plush by comparison. One genetic study suggests that the Gobi lineage is
an ancient one, closer than any other to the ancestral brown bear, which first arose in Asia. Experts
originally considered Gobi bears a distinct subspecies, gobiensis. However, they may turn out to be
an isolated group of the subspecies isabellinus, still found in China‘s Tien Shan mountains and the
Himalaya.
Though perilously low, Mazaalai numbers seem to have stayed fairly stable since the end of the
1970s. For bears tough enough to survive in the Gobi, maybe nothing‘s implausible, and that
includes one day thriving again not only in their present home but in their former territory as well.
―Look, Gobi bears might not make it,‖ Biologists Harry Reynolds said. ―But you can‘t think like that.
To see a problem and not want to work to fix it, not try while these bears still have a chance,
well…‖
Source: National Geographic
'SOLAR CHIMNEYS' MAY HELP SOLVE CHINA'S ENERGY WOES
Scientists are researching whether so-called solar chimneys, which rise half a kilometer or even
higher from the earth, might produce enough clean energy to help reduce mainland China's chronic
air pollution—an issue Mongolia, too, is battling.
A test plant is running successfully in Inner Mongolia and scientists want to build full-size versions in
cities such as Beijing and Shanghai. The researchers have suggested the towers could be
constructed inside new skyscrapers. The technology involves covering an area of several square
kilometers to create a greenhouse around a high chimney. The hot air produced in the greenhouse
rises through the tower, driving turbines that generate electricity. The higher the tower, the
stronger the updraft and the more power created.
The highest previous attempt to master the technology, which has been discussed for decades,
ended in failure when a 195-meter tall tower in Manzanares, Spain, collapsed in 1989 due to
structural failure. But Professor Wei Yili, the leader of the project at Inner Mongolia University of
Science and Technology, said he was confident they could now build safe and efficient towers
higher than a kilometer.
"The structural problem is no longer a problem for us. We have acquired patents for our technology
and design," he said. "The towers will stand for a century, outlasting those who build them or see
them built, like the Eiffel Tower."
The 50-meter high test "solar updraft tower" has been running in the Gobi desert in Wuhai for nearly
four years. Scientists wanted to build a chimney as high as 200 meters, but had to rein in their
ambitions because of a nearby airport. The project has managed to generate up to 4,800 kilowatt
hours of electricity a day—or enough energy to power 160 homes.
Source: South China Morning Post
POLITICS
'DOUBLE DEEL' LAW WILL NOT SCRAP THE GOVERNMENT, SAYS PREMIER
Prime Minister Norov Althankhuyag denied that the passage of the so-called ―Double Deel‖ law that
prohibits parliamentarians from participating in the Cabinet Secretariat would result in the
dissolution of the government, speaking at his weekly press conference on 17 April.
―The voting does not mean to dissolve the government, because many discussions and processes are
awaited further,‖ said Altankhuayg. ―Probably, following the ratification of this amendment, it
looks like and is understood that the government would be suspended at any time for those who are
in a hurry to do so, but this will not happen.‖
The law, which was originally initiated by the president, is to take effect 1 July—two years ahead of
what had been originally scheduled.
Source: Info Mongolia
KOREA‟S UNIFICATION FORUM TO BE HELD IN UB
Experts, scholars and government officials are to gather in Ulaanbaatar, Mongolia, in June to
exchange their ideas on unification and the so-called neo-Cold War surrounding the Korean
Peninsula, according to a Seoul-based nonprofit group.
The Korea Global Foundation (KGF) led by Rhee Tshang-chu, professor of St. Petersburg State
University, said that the 15th World Korean Forum, an annual forum hosted by the organization, will
be held 23 and 24 June in Ulaanbaatar. The participants will discuss ways to facilitate the stability
and unification of the Korean Peninsula at the National University of Mongolia during the three
sessions of the two-day forum.
Experts will discuss issues related to unification of the two Koreas, the Cold War-like relationships
among the key powers—namely the United States, China and Japan—on the Korean Peninsula, and
possible cooperation with countries in the Eurasian region. Previous forums were held in Vancouver,
Manila, Sydney and Brussels.
In a press release circulated last week, Chairman Rhee of the KGF noted that holding the forum in
Mongolia is meaningful in that the two ethnic groups share a lot in common and have maintained
close relationships over the past 1,000 years. Unification has become a buzzword after President
Park Geun-hye said in a speech early this year that unification of the two Koreas would be a
bonanza.
Park said that South and North Korea would benefit if they are reunified. Recently, she proposed
that South and North Korea work together to improve human rights condition of the North, to
increase people-to-people exchanges, and to develop North Korea‘s natural resources. North Korea
rejected the offer.
Source: Korea Times
MP EXITS JUSTICE COALITION
Parliamentarian Dogsom Battsogt on 22 April sent a letter informing the Justice Coalition head of
his decision to leave the coalition to become an independent member of Parliament.
―It was not a decision made emotionally,‖ said Battsogt. ―There are many dissatisfactory issues that
exist. I believe voters elected me to stand with integrity on any issues to face.‖
Battsogt was elected from the 16th Electoral District or Khovd Aimag and was enlisted in the Justice
Coalition formed between the Mongolian People's Revolutionary Party and Mongolian National
Democratic Party during the 2012 parliamentary elections.
Source: Info Mongolia
TOP JAPANESE ABDUCTION OFFICIALS IN MONGOLIA
Two officials leading the charge for the return of abducted Japanese nationals by North Korea are
in Mongolia seeking the country‘s cooperation in the matter, an unnamed government source said
Wednesday.
Hideshi Mitani, a special adviser to the Cabinet Office and former head of the secretariat of the
government‘s headquarters on the abduction issue, and Shoichiro Ishikawa, Mitani‘s successor at
the secretariat, have been in Ulaanbaatar since Tuesday and are expected to meet with Mongolian
government officials, according to the source. Mongolia has been acting as a liaison between Japan
and North Korea, which have no diplomatic ties due to a host of outstanding issues—with the
abductions in the 1970s and 1980s being chief among them.
Source: Japan Times
JAPAN, MONGOLIA EXCHANGE VIEWS ON REGIONAL ISSUES
Japan may be seeking Mongolia‘s help in approaching North Korea.
Japanese Prime Minster Shinzo Abe held an unscheduled meeting with Mongolian President Tsakhia
Elbegdorj on Wednesday, according to the Global Post. The meeting suggests that Abe may be
seeking Mongolian assistance on the issue of the past abductions of Japanese citizens by North
Korea—a high priority item on Tokyo‘s diplomatic agenda. While North Korea and Japan have no
formal diplomatic relations, Japanese diplomats and negotiators have unofficially approached North
Korea about the abduction issue several times. All Abe had to say about the meeting was that he
and Elbegdorj discussed ―various issues.‖
Long overlooked as a security player in Northeast Asia, Mongolia is eager to involve itself in regional
affairs, even serving as a sort of mediator if need be. Further, Mongolia is seeking admission into
the Six Party Talks on North Korea‘s nuclear program. This recent affirmation between Mongolia
and Japan, however, is drawing little attention from both local and international media, suggesting
that Mongolia‘s role as a security player in the region continues to be underdeveloped. The meeting
between the two defense ministers comes on the heels of U.S. Defense Secretary Chuck Hagel‘s
visit to Mongolia earlier this month, where he discussed deeper defense ties between Mongolia and
the United States.
Japan and Mongolia have not had close diplomatic ties historically. Following the Second World
War, the two countries did not begin interacting diplomatically until 1972, following which they
remained distant until Mongolia‘s Democratic Revolution in the early 1990s. In recent years, Japan
and Mongolia have made some progress, mostly on the economic front. In 2008, the Japan Bank for
International Cooperation offered Mongolia USD 385 million in financing for a new international
airport. In 2005, Mongolian President Nambar Enkhbayar visited Tokyo after Japan successfully
convinced Mongolia to bow out of the race for a non-permanent seat on the UN Security Council,
allowing Tokyo to fill the role instead. Since then, relations have steadily been improving.
Source: The Diplomat
JAPAN, MONGOLIA OPPOSE ATTEMPT TO CHANGE STATUS QUO BY FORCE
Japanese and Mongolian defense ministers agreed Thursday to oppose any attempt to change the
status quo by force, in light of China's claim to the Japan-administered islands and Russia's
annexation of Crimea, southern Ukraine, Japan's Defense Ministry said.
Meeting in Tokyo, Itsunori Onodera said Japan is calling for diplomatic solutions to those issues,
while his Mongolian counterpart Bat-Erdene Dashdemberel said changing the status quo by force is
unacceptable in any situation. China has repeatedly sent ships into Japanese territorial waters
around the Senkaku Islands in the East China Sea to assert its claim to the islands it calls the
Diaoyu.
As for North Korea, Onodera expressed hope that Mongolia will play a role in Japan's bid to resolve
bilateral issues with the reclusive country as Ulaanbaatar has diplomatic ties with Pyongyang, the
ministry said.
"Japan will be able to establish friendly relations (with North Korea) if we can solve the nuclear,
missile and abduction issues in a comprehensive manner," Onodera was quoted.
Bat-Erdene replied that Mongolia will continue to send senior officials to North Korea.
Source: Global Post
BELARUSIAN SENATORS OKAY MILITARY COOPERATION AGREEMENT WITH MONGOLIA
Belarus 22 April ratified an intergovernmental agreement with Mongolia and Sri Lanka for
cooperation between their militaries and technical cooperation.
Separately, the upper chamber of Belarus' parliament voted in favor of an agreement with Mongolia
for customs affairs and visa-free travels. It also approved agreements with Bolivia and Sri Lanka on
trade and economic cooperation, as well as visa-free travels for holders of diplomatic and service
passports.
Source: Belarusian Telegraph Agency
KOREA, CHINA, RUSSIA, MONGOLIA COOPERATE ON COPYRIGHT LAW AND IP
Korea, China, Russia and Mongolia held four-way talks on copyright law and intellectual property
(IP) at a workshop held in Seoul on 14 and 15 April
The workshop saw policymakers and academics from the four nations discuss progress on copyright
protection in each country and ways to improve bilateral and multilateral cooperation. The
workshop was jointly organized by the Ministry of Culture, Sports and Tourism, the World
Intellectual Property Organization (WIPO) and the Korea Copyrights Commission. Since 2006 and in
cooperation with the WIPO, the ministry has worked each year to improve the copyright protection
system in neighboring nations and sought international cooperation through the workshop.
Policymakers attending the workshop presented on copyright laws in their respective countries and
suggested ways to expand international cooperation. Academics discussed recent issues related to
copyright law and ways to find a balance between the use and the protection of intellectual
property. They also talked about cooperation between governments and academia, and ways to
improve the copyright protection environment. Mongolia's representatives discussed recent
copyright issues, such as database rights, the transfer of exclusive rights and derivative works.
Participants agreed to continue holding copyright workshops in the years to come. They also
decided to add specific issues including the infringement of digital copyrighted works and to hold
the next workshop in either Russia or Mongolia.
Source: Inside Korea
CHINA TO JOIN KHAAN QUEST FOR THE FIRST TIME
China has promised to attend Khaan Quest for the first time this year.
The Khaan Quest 2014 multinational peacekeeping exercises are set to run in Mongolia from 20 June
to 1 July this year.
The final meeting for the organization of this year event was held in Ulaanbaatar earlier this
month, attended by 58 military attaches from the Embassies of Canada, People‘s Republic of China,
Czech Republic, Republic of Korea and the United States. Organizers plan to have four main events
at Khaan Quest 2014, such as command-staff exercises, troop-field exercises, hospital-
humanitarian, and engineering activities.
This year will see 20 countries participate in Khaan Quest compared with 15 last year. This year will
be the first time China will send military forces, in addition to a group of medical professionals, as
well as peacekeepers and military instructors from the Czech Republic.
Khaan Quest 2014 will be held at the Tavan Tolgoi (tr: Five Hills) training area, with the hospital-
humanitarian activities in Songinokhairkhan District, and the engineering-rehabilitation activities at
kindergartens and schools in the Bayangol and Songinokhairkhan Districts of Ulaanbaatar.
Source: Info Mongolia
KYRGYZ PREMIER SHOWS INTEREST IN EXPERIENCE SHARING OPPORTUNITIES
Kyrgyz Prime Minister Djoomart Otorbaev met with a delegation from Mongolia's Main Intelligence
Directorate on 18 April, a government press service reported.
Director Baldanzhav Ariunsan led the visiting delegation for the establish official relations with
Kyrgyzstan's State Committee for National Security. Ariunsan said he invited members of the
National Security Committee to Mongolia for experience sharing.
Otorbaev thanked the Mongolian representatives for their visit and expressed hope that cooperation
between Kyrgyzstan and Mongolia would develop toward multiple directions. "For us, your country is
the most effective example of how to achieve results in improving the quality of life of population.
We are interested in enhancing cooperation and exchange of experience, improvement of the
electoral process with the use of modern technology, the management of the mining sector and
other sectors of the economy and social life," said Djoomart.
Source: Kabar
INVESTORS CHECKING OUT OF „HOTEL MONGOLIA‟ FOUND IN LIMBO
Welcome to the ―Hotel Mongolia.‖ It‘s a lovely place. But you might not be able to leave. For about
50 foreigners—miners, accountants, bankers and charity workers mostly drawn here by the
country‘s resource boom—the lyrics of the Eagles‘ song turned into reality when Mongolia prevented
them from leaving the country.
Many foreigners interviewed for this story asked not to be named for fear of reprisals from the
authorities. All denied allegations against them. Some described their situation as a strange limbo
in which they retain their passports, have not been charged with any crime, yet they have been told
by the police they will not be allowed to leave the country. James Liotta, a partner at Mahoney
Liotta LLC, said that as a signatory to the International Covenant on Civil and Political Rights,
Mongolia should not be using commercial disputes to deprive people of their freedom of travel.
Puntsag Tsagaan, the chief of staff at the office of the President Elbegdorj Tsakhia, said it was not
appropriate for the presidential office to comment on the issue.
Some called in by Mongolia‘s anti-corruption police describe day-long interrogations in windowless
cells and bolted-down chairs. This can be repeated over months, again with no charges filed.
Banker Chris Bradley said his six-week experience at the end of last year erased the happy memory
of a decade of working in Mongolia. Bradley had come back to Ulaanbaatar to recover debt on a
loan gone sour for South Africa‘s Standard Bank and was told he could not leave because the
Mongolian borrower was being investigated for corruption. While Bradley was freed and left for
Australia in late December, Hilarion Cajucom, a Philippine accountant at SouthGobi Resources Ltd.
who has also been denied exit, maintains his family life—birthdays, graduations and funerals—
through Skype.
―My career has been destroyed and I don‘t know when I will be able to leave,‖ said Cajucom
Cajucom‘s former boss is Minnesota native Justin Kapla. He was president of the local SouthGobi
unit for just six months of the period during which Mongolian police say the company committed a
USD 50 million tax fraud and now owes a further USD 30 million in penalties and interest, according
to Kapla. He contends that less that USD 1 million is owed. Kapla has been in Mongolia for 11 years,
is married to a local and has two children. Being on a travel ban the last two years, he says
Ulaanbaatar is his prison.
―When you can‘t leave and you can‘t travel, it doesn‘t matter if your jail cell is six-by-nine or
Ulaanbaatar city,‖ said Kapla.
The list of people on a travel ban includes a number of Korean and Chinese nationals, according to
Kapla, and is not limited to executives. Didi Kalika, an Australian, is head of the Lotus Children‘s
Centre, a local orphanage. A former employee accused Kalika of embezzlement and the probe into
that has stopped her from leaving Mongolia since January. Her request to travel for the birth of her
first grandchild was rejected. She denies the allegation.
The biggest loser is Mongolia‘s economy, said Bradley. Bradley is looking at opportunities in
Myanmar, Colombia and Africa. ―I‘m going where I‘d like to do business.‖
Source: Bloomberg
ZAISAN MEMORIAL TO UNDERGO RENOVATION
Russia-Mongolia joint venture Ulaanbaatar Railway plans to renovate the Zaisan memorial that
honors Soviet soldiers killed in the World War II, ahead of the 75th anniversary of victory in the
Khalkh River battles.
Renovation will begin soon for a completion target date of 6 May, according to a schedule from
Ulaanbaatar Railway, before Victory Day on 9 May. Wreaths will be laid at the repaired memorial
that day, which day marks the defeat of Nazi Germany by the Soviet Union in the Second World
War.
The railway company also plans to promote joint military exercises between Mongolian and Russian
armed forces, as well as to support film making about the Khalkh River battles, said I. Dombrovski,
first deputy chair of Ulaanbaatar Railway.
Source: Montsame
ANNOUNCEMENTS
MONGOLIA INVESTMENT SUMMIT LONDON, 30 APRIL-1 MAY
Interviews with topic officials and businesspeople in Mongolia have been posted online as investors
look forward to the second annual Mongolia Investment Summit in London to be held next week
from 30 April to 1 May.
An additional post-summit workshop will be held this year at the event, 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. Looking forward
towards the summit,
Mines and Money conducted an interview with Erdenebulgan Oyun, Deputy Minister of Mining, James
Passin from Firebird Fund and Travis Hamilton from Khan Management to share their views on the
Mongolian investment market. Visit mongoliainvestmentsummit.com to read the interviews.
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 Logistics Working Group`s first meeting was held on Wednesday, 16 April with 12 members
attending.
Jim Dwyer, Executive Director of BCM moderated the session.
Members attending: Frank Goeddeke-IF&E, Iderbat A-Aurum Partners, Mattias Ahlin-Scania, Nergui
Ch-QMC, Odkhuu Myagmar-OT, Oliver Thirlwall-Arec Mortgage Corporation, Tengis G-Monroad,
Nicole Puntsag-Schneider Electric, Otgonjargal G-Mongolian National University.
BCM`s Logistics working group members elected Mattias Ahlim from Scania as WG chairman.
Congratulations to the BCM`s new working group chairman.
Speakers and topics were:
-Major problems in the Mongolian logistics sector.
Next Meeting scheduled on Tuesday 10 June. If you have interest joining the Logistics working
group, please contact Erdenetsetseg at [email protected].
___________________________________________
„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. As of now, 1,416 students and
teachers have participated in the BCM in the University Classroom project.
The next „BCM in the University Classroom‟ will be held on 25 April at the Mongolian University
of the Humanities with approximately 600 students attending. A Mongolian Talent Network
team has been invited to speak.
If you like to share your experience on some specific topic, you can discuss with us for the next
school term. 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
Mongolia reports: http://bcmongolia.org/en/mongolia-reports
• Monthly statistical bulletin, March, 2014 , by Mongol Bank
• Social and economic situation of Mongolia as of March 2014 by National Statistical Office of
Mongolia (available in Mongolian language - Монгол улсын нийгэм эдийн засгийн байдал 2014
оны 3 сарын байдлаар, Үндэсний статистикийн хороо)
• Polit Barometer, March 2014, by Sant Maral Foundation
Interview Section: http://bcmongolia.org/en/interviews
• Jim Dwyer, Executive Director, BCM – ―Business need more business‖;
• Damshnamjil Tsogtbaatar, Chairman of the SPC: ―Privatizing Mongolia‖;
• Jan Hansen, Economist, ADB: ―The depreciation should help to increase the competitiveness and
to develop the non-mining industrial sector‖;
• 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
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.
BCM is closing our old LinkedIn account from May 1, 2014. 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 info graphics 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.
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 5,353 fans on our Facebook fans page, 516 connections on LinkedIn
network, and 1,033 followers on Twitter.
Of course for news information, interviews, event photos, VIDEOS and announcements regarding our
organization, visit the official BCM website at http://bcmongolia.org/en/
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]
March 31, 2014 *12.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 11.9% y-o-y, Ulaanbaatar city, March 31, 2014
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
CURRENCY RATES – 25 APRIL 2014
Currency Name Currency Rate
US Dollar USD 1,788.46
Euro EUR 2,473.53
Japanese yen JPY 17.47
British pound GBP 3,002.38
Hong Kong dollar HKD 230.66
Chinese Yuan CNY 286.44
Russian Ruble RUB 50.12
South Korean won KRW 1.72
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.