NWire432

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 432 – June 17, 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:
 Erdenes TT shareholders offered a second chance to cash in as election looms
 EBRD invests in industrial park
 EBRD mulls USD25 mn loan for Tsetsii wind park
 Dutch Development Bank to provide $108.5 mn for Mongolia’s SMEs
 Mongolian government aims for 10% stakeholding in copper plant
 Exploration results expand gold mineralization at Erdene’s Bayan Khundii project
 Jeju's Olle makes strides in Mongolia
 Mongolrostsevmet workers on strike
 Mongolia Growth Group announces change of auditors
 Why the Toyota Prius is conquering the land of Chinggis Khan
 Rio Tinto offers to buy back more debt
 GE announces coal-fired plants with low emissions
Economy:
 Mongol Bank: FX auctions; 1-week bills
 Foreign debt up 14% y-o-y in May
 Non-performing loans on the rise
 Coal exports traveling through Gashuun Sukhait on the rise
 Trade down 11 percent y-o-y in May
 Real estate buyers weary of declining market conditions
 Commercial banks to lend for purchasing agriculture equipment from Belarus
 Sheep and goat hide prices fall to MNT100
 Mongolia presents human development report
 Saikhanbileg cabinet approves pension bonus for retired soldiers
 UB launches ‘Good Yard’ program to improve life in ger districts
 56 new kindergartens built in three years
 Mongolia to welcome ASEM delegates with new botanical garden
 Model hospital planned for Nalaikh
 Healthcare facility planned for western provinces
 China to finance construction for disabled children’s center
 Watch gold jump to $1,400 if Britain votes to Brexit

2.  India is hedging its bets on coal to bring power to the people
 Mongolia and other commodity exporters can avoid boom-or-bust cycles—
EDITORIAL
 Defending Mongolia’s growing nationalpark system—EDITORIAL
 Yak fur spins profits for Mongolian herders—VIDEO
Politics:
 No alcohol on Election Day
 Election sign vandals will be fined, police warn
 Democrats dismisses six candidates from election
 Parliament to vote on Mongolia-Russia-China corridor
 Naadam holidays extended to 9 days
 Oyun appointed to chair World Water Partnership
 Mongolian art historian awarded Kublai Khan Gold Medal
 NAMBC founder awarded Polar Star
 350 Mongolian contortionists eye Guinness world record
BCM Updates:
 Announcements
 Advocacy Notes
 Knowledge Sharing Session
 Working Groups News
 Member-to-Member Special Offers & Benefits
 Job Vacancies at Member Organizations
 Websites Update - Presentations, MongoliaReports, Interviews
Economic Indicators:
 Inflation
 Central Bank Policy Rate
 Currency Rates
*Click on titles above to link to articles.
SPONSORS
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3. Mongolian Business Database
BUSINESS
ERDENES TT SHAREHOLDERS OFFERED A SECOND CHANCE TO CASH IN AS ELECTION
LOOMS
Government will buy back up to 30 percent of individuals shares in the Tavan Tolgoi coking
coal mine, Prime Minister Chimed Saikhanbileg has announced. Citizens who opted not to
sell their 1,072 shares for state-owned mining unit Erdenes Tavan Tolgoi in 2012 are
getting a second chance to sell their shares. The Saikhanbileg Cabinet has ruled that from
13 June the government will start buying up shares for MNT300,000, while the remaining
shares can be sold on the Mongolian Stock Exchange.
Source: News.mn
EBRD INVESTS IN INDUSTRIAL PARK
The European Bank of Reconstruction and Development will lend EUR24 million for a
cleaning facility planned for the Emeelt industrial park.
Source: Udriin Sonin
EBRD MULLS USD25 MN LOAN FOR TSETSII WIND PARK
The European Bank for Reconstruction and Development (EBRD) is looking at providing a
senior secured loan of up to USD25 million to finance a 50 megawatt solar park in
Mongolia. Clean Energy Asia LLC's Tsetsii project, worth USD120 million, is located in the
Tsogttsetsii Soum, Umnugobi Aimag, the southern parts of the Gobi desert. EBRD will co-
finance the project alongside the Japan International Cooperation Agency (JICA). In
addition, the Japanese government will allocate a USD746,125 grant under its Japan-EBRD
Cooperation Fund for the upgrade of state-owned National Transmission Power Grid
(NPTG) company’s existing Tavan Tolgoi substation.
Newcom Group LLC hold a 51 percent stake in the project, and the remaining 49 percent is
owned by SB Energy Corp—the renewables arm of Japanese telecommunications and
technology major SoftBank Group Corp. The plant will help diversify Mongolia’s coal-
dependent power sector while offsetting as much as 230,000 tons of carbon dioxide (CO2)
emissions annually.
Source: Renewables
DUTCH DEVELOPMENT BANK TO PROVIDE $108.5MN FOR MONGOLIA’S SMES
Dutch Development Bank FMO has signed a USD108.5 million credit agreement with
XacBank LLC to support Mongolia’s small and medium-sized enterprises (SMEs), state-run
Montsame news agency reported on 10 June. SMEs represent 90 percent of all businesses
and provide half of all jobs in Mongolia. Despite their importance, SMEs still find it difficult
to access credit in the country. The financing aims to increase the availability of long-term
financing for SMEs, among other goals. Around 30 percent of the funding will be directed
at women entrepreneurs.

4. FMO gathered the funding from a combination of sources includingUSD15 million from the
International Finance Corporation, USD25 million from its own funds and the rest from
eight other international financial institutions, the report said. The report did not specify
the names of the eight credit institutions. FMO operates as a partner of the World Bank.
Source: IntelliNews
MONGOLIANGOVERNMENT AIMS FOR 10% STAKEHOLDING IN COPPER PLANT
Mongolia will own 10 percent of a new copper concentrate smelting and refinery plant now
under planning. Chimed Saikhanbileg’s Cabinet Secretariat ordered Industry Minister D.
Erdenebat to find investors that will build the plant and agree to give Mongolia 10 percent
ownership at zero cost. Erdenbat was given a deadline to find an investor by the fourth
quarter of this year.
Oyu Tolgoi LLC has an agreement with the government to partner for a feasibility study for
a plant’s construction.
Source: Mongolia.GoGo.mn
EXPLORATION RESULTS EXPAND GOLD MINERALIZATION AT ERDENE’S BAYAN KHUNDII
PROJECT
Erdene Resource Development Corp. has reported 11.2 to 30.3 grams per ton of gold from
the third batch of results from its 100 percent owned Bayan Khundii gold project in
southwest Mongolia. The Mongolia-focused copper and gold explorer reported high-grade
findings from multiple step-out and extension holds and surface trenching. “Today's results
confirm our stated objectives of confirming continuity of gold mineralization in the main
zones, including the Striker Zone, and extending mineralization through reconnaissance
drilling outside the previous known limits,” said Peter Akerly, president and chief
executive officer of the junior miner.
“We will now dedicate additional resources to improving our understanding of the controls
on mineralization in this large system prior to a return to drilling in mid third quarter,” he
said. A fourth and final batch of results from Erdenes’ 2016 drilling campaign is expected
before the end of the first half of this year.
Source: Erdene Resource Development Corp.
JEJU'S OLLE MAKES STRIDES IN MONGOLIA
Founders of Jeju's Olle trails—the South Korean island's network of coastal walkways—are
set to launch a new route in Mongolia. Olle Trail Foundation and the Jeju Tourism
Organization (JTO) are poised to sign a deal with the government of Ulaanbaatar on 16
June. JTO chief Choi Kab-yeol and Olle Trail Foundation head Suh Myung-sook signed a
business pact for development of the Mongolian Olle Trail on 8 June.
As part of the agreement, the foundation will plan a series of courses in the landlocked
east Asian state. It will manage the route with the JTO, which will be responsible for
raising funds. The plan is part of a deal between Mongolia and Jeju to boost tourism and
cultural exchanges. The Mongolian Olle is set to open in the first half of 2017. It will be
the first time an Olle has been developed outside of Jeju.
Source: Jeju Weekly
MONGOLROSTSEVMET WORKERS ON STRIKE
The staff at Mongolrostsevment LLC’s Bor-Undur mine of have called a strike over wage
disputes and what the selloff of mines to private investors. The strikers complained that

5. workers’ salaries remain unchanged while management has bumped up its own pay. They
also accused management of selling off mines to private investors for their own short-term
profit, when those buyers are able to mine the area for years afterwards.
Workers say the director, D. Ganbold, has refused to meet with them since taking the job.
Source: Unuudur
MONGOLIA GROWTH GROUP ANNOUNCES CHANGE OF AUDITORS
Commercial real estate investment and development company Mongolia Growth Group Ltd.
has appointed Davidson & Company as its auditor following the resignation of
PricewaterhouseCoopers LLP, effective 9 June.
Source: Mongolia Growth Group
WHY THE TOYOTA PRIUS IS CONQUERING THE LAND OF CHINGGIS KHAN
When Battsengel first grabbed the wheel of his 1999 Toyota Prius, his friends and family
mocked him. “You bought the worst car in the world,” they said, after he took possession
of the little Japanese car six years ago. Mongolia is Land Cruiser country, so who would
want a Prius? “It took one month for me to be convinced it’s a good car.”
And no one questions his decision any more—because most of them have come to the same
conclusion. Prius cars now make up nearly 13 percent of the passenger vehicles on
Mongolian roads, according to government registry statistics. The reason is Mongolia
charges no excise or air pollution tax on hybrids. Toyota itself only sells about 10 new
Priuses a year (the remainder are bought used), but it’s hard to imagine a better vote of
confidence in the ruggedness of its green machine than its overwhelming popularity in a
place with such harsh conditions.
Source: The Globe and Mail
RIO TINTO OFFERS TO BUY BACK MORE DEBT
Rio Tinto Group has shored up its balance sheet for what it expects will be a prolonged
period of pain in the mining industry by launching its second debt buyback in two months.
Rio has offered to buy back USD2.9 billion of notes due in 2018 and will then consider
offers for about USD5.2 billion of bonds maturing in 2020 to 2022. Rio repurchased USD1.5
billion of notes in April. It had gross debt of around USD27 billion at 31 December, so the
two buybacks will reduce this to around USD23 billion.
Like most miners, Rio has been cutting costs in recent years amid tumbling commodity
prices, and has also sold assets to help cut its debt load. But a rise in the iron ore price in
the first few months of 2016 has given Rio a cashflow boost and allowed the miner to
further strengthen its balance sheet.
Source: Sydney Morning Herald
GE ANNOUNCES COAL-FIRED PLANTS WITH LOW EMISSIONS
General Electric Co.’s (GE’s) power segment on 14 June disclosed Digital Power Plant for
Steam at the Minds + Machines event in Paris. General Electric is already an important
partner to Mongolia’s energy grid as it supplies the turbines for wind power projects such
as Newcom Group LLC’s Salkhit wind farm, and this suite reduces greenhouse gas emissions
through improved efficiency, and performance of coal-fired power plants. “The world is
going to need 50 percent more power in the next 20 years and it will need to be
affordable, accessible, reliable and sustainable,” said GE Power President and Chief
Executive Officer Steve Bolze in his introduction of the technologies.

6. Coal is an important energy source, even though, the developed world has moved away
from it amid greenhouse effect concerns, yet developing countries are still heavily
dependent on it. For China, India, and countries in Africa and Middle East, this technology
can provide a way to meet emissions goals outlined in the Paris COP21 agreement.
Source: Business Finance News
ECONOMY
MONGOL BANK: FX AUCTIONS; 1-WEEK BILLS
The Bank of Mongolia on 16 June rejected bids of USD3 million and CN7 million at currency
auctions. That day, it accepted commercial banks’ tugrik swap agreement offers for an
equivalent of USD105.5 million and U.S. dollar offers of USD26.5 million. On 15 June, it
issued MNT35 billion in one-week bills at a weighted interest of 10.5 percent.
Source: Bank of Mongolia
FOREIGN DEBT UP 14% Y-O-Y IN MAY
Mongolia’s foreign debt was up 14 percent for the first quarter of the year compared with
the same period a year ago, according to a government report. Mongolia’s total foreign
debt stood at USD22.6 billion, with debt from Mongolian agencies and the central bank
both up by 30 percent each.
Source: News.mn, Montsame
NON-PERFORMING LOANS ON THE RISE
One out of every six tugrug lent is a non-performing loan, according to government
financial data. Mongolia currently has total savings of MNT7.9 trillion against MNT11.4
trillion in national debt. New loans in May 2016 fell by 1.7 percent, while non-performing
loans totaling MNT1.9 trillion comprised 17 percent of total loan.
Mongolia’s money supply tallied in at MNT10.7 trillion for the first five months of 2016,
representing a 2.1 percent increase of MNT218.8 billion against the previous month and
9.1 percent increase of MNT891.7 billion against May 2015.
Source: News.mn
COAL EXPORTS TRAVELING THROUGH GASHUUN SUKHAIT ON THE RISE
Mongolia has boosted its coal exports to China by 191%, according to statistics from the
Chinese government. Coal exports through the land port to China have grown over the last
16 months, according to the data. Mongolia’s volume of coal exports to China reached one
million tons in May, compared with the same period last year. The cumulative volume of
coal export in May was 3.17 million tons, or 21.2 percent from the 2015 period.
Source: Undesnii Shuudan
TRADE DOWN 11 PERCENT Y-O-Y IN MAY
Total trade turnover was down 11 percent in the year to the end of May. As of the end of
May 2016, total trade turnover was MNT2,9 billion (USD1.492 million), a MNT369.6 million
fall from the same period in 2015. The change reflected a 5.1 percent million decreases in
exports and 19% for imports. During the the period, exports outweighed imports by
USD602.6 million.
Source: Montsame

7. REAL ESTATE BUYERS WEARY OF DECLINING MARKET CONDITIONS
Interest in buying real estate among Mongolians has fallen along with confidence in the
Mongolian economy, according to a consumer confidence index from the National Research
Center. The number of people surveyed planning to buy real estate fell to 6.3 percent, or
2.3 times from 2015 and three times that of 2014, according to the index. Confidence was
measured by a value ranging between zero and 200, with confidence falling to 20 from 71
in the first quarter of the year.
In the first quarter of 2016 first quarter, 35.8 percent of those surveyed said the economy
had gotten worse. The results showed that consumers were expecting higher income soon,
partly because of the more work available in summer and autumn.
Source: Undesnii Shuudan
SHEEP AND GOAT HIDE PRICES FALL TO MNT100
Falling demand from China for Mongolia’s animal products is hitting herders’ wallets.
Prices for sheep and goat hides at the Emeelt Market have fallen to MNT100 to 500
depending on quality compared with MNT7,000 several years ago. In addition to falling
demand, observers have pointed out in the worsening health of livestock around the
country counting against the price herders can collect on their goods.
Source: Udriin Sonin
COMMERCIAL BANKS TO LEND FOR PURCHASING AGRICULTURE EQUIPMENT FROM
BELARUS
Belarus has struck a deal for the sale of agriculture equipment through eased financing
from Mongolia’s commercial banks. An agreement for the initiative was signed during the
Belagro international trade fair at Minsk on 7 and 8 June, where the Secretary for Food
Agriculture, N. Ariunbold, was in attendance.
The Mongolian and Belarusian parties have put forward business proposals for cooperation
in agriculture from 2016 to 2018.
Source: Montsame
MONGOLIA PRESENTS HUMAN DEVELOPMENT REPORT
The youth in Mongolia that make up about a third of the population have shown signs of
making a positive impact on the country in making it a better place to live, according to a
new report from the United Nations measuring the quality of life and development in
countries. Mongolia has more than one million people between the ages 15 and 34 years,
making it the country’s largest demographic. “A key overriding message of this report is
the contribution of youth to building a better tomorrow in Mongolia,” said UNDP Resident
Representative Beate Trankmann at a ceremony introducing the report.
The majority youth in the country “are the first generation in the country to have spent
most of their lives under a democratic form of government,” she said. “This has been
crucial to their outlook and their experience.”
Source: Mongolia.GoGo.mn
SAIKHANBILEG CABINET APPROVES PENSION BONUS FOR RETIRED SOLDIERS
The Chimed Saikhanbileg government has granted a one-time bonus for pension payments
to retired military officers and service men in the months before the election. The Cabinet
Secretariat agreed to a MNT5 billion increase for pension payments to those who retired

8. from 2013 and 2016 for a one-time benefit.
Source: Montsame
UB LAUNCHES ‘GOOD YARD’ PROGRAM TO IMPROVE LIFE IN GER DISTRICTS
The government is launching a new program to improve life in the urban sprawl where half
of Ulaanbaatar’s population lives, known as the ger districts. The aim of the initiative
called the Good Yard program is to lend up to MNT10 million to individuals to provide
healthy and safe living conditions for family’s and improve infrastructure at the Tolgoit,
Bayankhoshuu, Sharkhad, Dambadarjaa, Dari-Ehk, and Ballast neighborhoods, as well as
throughout the Chingeltei District. The 31 companies attached the program exhibited on
Chinggis Square this week to introduce their services.
The loans will have annual interest of 5 percent a repayment period of 60 months. No
payments will be required until after the first two years of the loan.
Source: News.mn
56 NEW KINDERGARTENS BUILT IN THREE YEARS
Ulaanbaatar opened 56 new kindergartens from 2012 to 2015 despite economic the
downturn over those three years. The country spent MNT46.2 billion tugrik on new
kindergartens, allowing for an additional 9,705 children to attend kindergartens, according
to the Ulaanbaatar Investment Department. Throughout the country, 13 kindergartens
opened in 2012, 10 in 2012, 19 in 2014 and 14 in 2015.
Urban development plans include the opening of 11 more kindergartens in Bayanzurkh
District, 10 in Songino Khairkhan district, nine in Bayangol, eight in Khan-Uul, eight in
Chingeltei and Sukhbaatar, two in Nalaikh, and one in Baganuur district.
Source: Mongolia.GoGo.mn
MONGOLIA TO WELCOME ASEM DELEGATES WITH NEW BOTANICAL GARDEN
Mongolia will welcome its hundreds of foreign guests expected to arrive for the Asia-
Europe Meeting (ASEM) in July with a new botanical garden in Ulaanbaatar. Construction of
the 8.4 hectare garden located at the center of the city’s National Park launched last
month, said the media bureau at the Ulaanbaatar Administration. Developers expect to
complete construction of a pond, bicycle pathways, walkways and a car park by July. ASEM
guests will be invited to take part in a ceremonial planting of a tree at the heart of the
garden.
The Asia Pacific Network for Sustainable Forest Management and Rehabilitation will
providing financing for the estimated USD1.5 million needed for the project.
Source: News.mn
CHINA TO FINANCE CONSTRUCTION FOR DISABLED CHILDREN’S CENTER
China has agreed to finance MNT60 billion for the construction of a center for disable
children. Mongolian plans to build a 14,990 square meter facility for the National
Development Center for Disable Children using China’s grant aid. Construction is planned
to launch on 31 July and span two and half years.
Plans for the center include 250 beds and facilities for training, orthopedics and
rehabilitation.
Source: Unuudur
MODEL HOSPITAL PLANNED FOR NALAIKH

9. A Spanish company will build a new health center to be built at Nalaikh Soum will become
a model for future health centers to be opened in Mongolia. Ulaanbaatar awarded the
company’s Mongolia unit, Bolscan Mongol LLC, to lead construction and transfer ownership
to the community. Development and construction is estimated to cost MNT43.57 million,
with completion expected in 2018.
Source: Montsame
HEALTHCARE FACILITY PLANNED FOR WESTERN PROVINCES
New medical facilities will be built in western Mongolian using a USD7.2 million grant from
the Kuwaiti government. The funds will be used to build a treatment and diagnostics
center for the western provinces of Mongolia that Health and Sports Minister S. Lambaa
has been assigned to see construction launch next year.
Existing facilities in Khuvd Aimag has received 130,000 patients since its commissioning in
2012. However, they were put in an aging building built in 1974 that is struggling to meet
demand with its limited space and outdated electrical, heat and water systems. They
should be replaced with equipment from Belgium by the first quarter of 2017, the Cabinet
ordered.
Source: Montsame
WATCH GOLD JUMP TO $1,400 IF BRITAIN VOTES TO BREXIT
So-called “Brexit” concerns already have significantly jolted financial markets, but more
could come if the fears become reality and Britain votes to exit the European Union. One
of the biggest beneficiaries of disquiet that Briton’s could opt to leave the EU at its June
23 referendum, is gold. Futures for gold, a top export for Mongolia, are set to rise as much
as 8.5 percent from current levels, according to James Butterfill, head of research and
investment strategy at ETF Securities. “Brexit would be very beneficial for shorting
sterling and we will probably see a big pick up in gold. In that scenario we think gold could
hit $1,400 [an ounce],” he said on the sidelines of the Inside ETFs Europe conference in
Amsterdam.
Early polling suggests that the vote next week will be close. A rally to USD1,400 an ounce
would have legs and not just translate into a short-term shaven trade, Butterfill said.
Source: Market Watch
INDIA IS HEDGING ITS BETS ON COAL TO BRING POWER TO THE PEOPLE
As the world moves to combat climate change, it’s increasingly doubtful that coal will
continue as a viable energy source because of its high greenhouse gas emissions. But it
continues to fuel some economies such as India, where Mongolia hopes to coal to someday.
More than a fifth of India’s population lacks access to electricity, posing a major
development challenge.
Already India is the world’s third-largest coal producer and its second-largest coal
importer, and Prime Minister Narendra Modi has promised to bring affordable access to
electricity to all of these people by 2019. This is creating a growing tension between
development and India’s efforts to reduce greenhouse gas emissions to combat climate
change. India’s domestic reserves are not only insufficient but also unevenly distributed
among regions. Although the Modi government is keen to increase production of domestic
coal mines through privatization, challenges still remain, such as pollution.
Source: The Conversation

10. MONGOLIA AND OTHER COMMODITY EXPORTERS CAN AVOID BOOM-OR-BUST CYCLES—
EDITORIAL
As Asian and European finance ministers meet here in Ulaanbaatar this week, one of the
challenges they face is how to support commodity exporters that are feeling the full brunt
of prolonged low commodity prices. Countries like Mongolia, which heavily relies on
copper, coal and other mineral exports, have seen a weakening of mining export earnings,
sluggish economic activity and a widening budget deficits.
Any economy heavily dependent on a small number of sectors will face risks. In the longer
run, Mongolia and the other net commodity exporters, need to find ways to diversify their
economies. Success stories in doing so from Malaysia and Indonesia show how a country
like Mongolia can navigate the current downturn and plan for a longer-term shift toward a
more diversified economic base. Mongolia’s ample potential for commercial agriculture
and livestock export is a real opportunity to diversify the economy, if supported by
appropriate institutions, such as export-related finance.
Victoria Kwakwa is the World Bank’s vice president for east Asia and the Pacific.
Source: News.mn
DEFENDING MONGOLIA’S GROWING NATIONAL PARK SYSTEM—EDITORIAL
A few months ago, when Mongolian national park director Tumursukh Jal was on an official
visit to the Grand Canyon, one of his hosts asked how many, to which he responded 99.
“That many, really?” the American quipped.
Although it might take a few decades for Mongolia to surpass the United States in the
sheer number of its national parks, in one way it already has outstripped America. The
Mongolian parks now cover nearly seventy million acres, or almost one fifth of the entire
country versus 14 percent of U.S. lands. What worries Tumursukh is how to protect that
territory. He also pointed out that Mongolia does not just randomly creating new national
parks in Mongolia. Each of the new protected areas contains either a unique landscape
(like the Gobi Desert), or was formed to preserve one of the country’s several engendered
species and their habitats.
Gary Cook has been director of Earth Island's programs in eastern Russia and Mongolia for
the last quarter century.
Source: Earth Island
YAK FUR SPINS PROFITS FOR MONGOLIAN HERDERS—VIDEO
Yaks have roamed Mongolia's highlands for centuries. They have long been reared in
Central Asia for their milk and meat. But herders in Mongolia discovered that the yaks' soft
woolly undercoat—which they shed every spring—might be a money spinner. "We started
collecting yak fiber in 2010. We have been selling the yak fiber directly to our cooperative,
and this has had a very good influence on our lives," Nyambuu-nyadmaa, a yak herder,
said.
The yak herders' cooperative sells the wool to factories in Europe with the help of a French
nonprofit organization that also trains them to spin and sell their hand-spun yarn at home
and abroad. The fashion industry is also warming to yak fiber. At the Paris Fashion Week,
Aruinaa Suri, a fashion designer known for her cashmere, leather and felt designs, realized
it was her new line of yak wool garments that got the most attention. With growing
interest in the fiber and the new income opportunity it holds, yaks continue to be an
important part of the landscape here.

11. Source: Al Jazeera
POLITICS
NO ALCOHOL ON ELECTION DAY
Election day will also be a dry one. The government has issued an order banning the
serving of alcohol when Mongolians hit the polls to vote candidates into Parliament on 29
June. Voting will run from 07:00 to 22:00.
Source: News.mn
ELECTION SIGN VANDALS WILL BE FINED, POLICE WARN
Police are cracking down on vandals attacking the political posters that popped up over
night in Ulaanbaatar. The election is in full swing in Mongolia, with the 18-day campaign
periods have launched on 11 June. The signs and posters bearing political parties, promises
for a better future and the faces of political hopefuls are proof of that. However, police
have issued a statement that anyone caught defaming any of these posters will face a fine
of up to MNT1.54 million.
Source: News.mn
DEMOCRATS DISMISSES SIX CANDIDATES FROM ELECTION
The Democratic Party have cut six of its candidates loose after failing to meet party
criteria to run in the election. Parliament Speaker and Democratic Party head Zandaakhuu
Enkhbold announced that L. Tsandeleg, B. Munkhbolor, N. Samat, Ch. Byambaa, T.
Khasbaatar and Kh. Zoljargal would not run for office under the Democratic Party.
Those candidates will still run for office, as independents or under another party’s
affiliation, Enkhbold said.
Source: Undesnii Shuudan
PARLIAMENT TO VOTE ON MONGOLIA-RUSSIA-CHINA CORRIDOR
The Chimed Saikhanbileg government has approved a trilateral agreement for the
transport of trade goods between Russia, China and Mongolia for a vote by Parliament on
13 June. The agreement would set the necessary approvals and regulations for trade goods
traveling between the three countries that will help Mongolian goods reach markets to the
markets in China and Russia, and beyond.
Source: Montsame
NAADAM HOLIDAYS EXTENDED TO 9 DAYS
Mongolia is extending the Naadam summer festival to nine days. This year the holiday will
run four days longer than last, from 9 to 17 June.
Source: Montsame
OYUN APPOINTED TO CHAIR WORLD WATER PARTNERSHIP
Sanjaasuren Oyun, who this month stepped down as president of the U.N. Environment
Assembly, has been appointed chair of the World Water Partnership. The group, which
focuses on protecting the world’s water reserves, managing resources and creating
sustainable development, celebrated its 20th anniversary in Stockholm on 9 and 10 June. It
is a NGO with 3000 partner organizations from 174 countries.
Source: Zuunii Medee
MONGOLIANART HISTORIAN AWARDED KUBLAI KHAN GOLD MEDAL

12. The University of Oregon’s Professor Emerita Esther Jacobson-Tepfer has been awarded
the Kublai Khan Gold Medal from the Mongolian Academy of Sciences and a presidential
citation recognizing her work on the preservation of Mongolia’s cultural heritage.
Jacobson-Tepfer, who is a member of the university’s department of history of art and
architecture, received her award at the Rock Art: History, Memory, and Dialogue
conference held on 30 and 31 May. She is an Asian art historian who began field research in
Mongolia's Altai Mountains in 1994.
“Our projects involved the identification and documentation of rock art and other surface
monuments,” explains Jacobson-Tepfer. “In the second project, we undertook to record
this material with detailed mapping of a largely unmapped area.”
Source: University of Oregon
NAMBC FOUNDER AWARDED POLAR STAR
The Mongolian ambassador to the United States has presented the Order of the Polar Star
to Eugene Theroux, senior counsel emeritus of the law firm Baker & McKenzie for his
contributions to U.S.-Mongolian relations over the past quarter century. Ambassador
Bulgaa Altangerel presented the award on behalf of President Tsakhia Elbegdorj Theroux
and Jalsa Urubshurow, chief executive officer of Nomadic Expeditions, founded the NAMBC
in Washington D.C. in 1990. Theroux subsequently served as an NAMBC officer and director
for 26 years. He retired at the NAMBC’s 26th Annual Meeting and Investors Forum in
Ottawa last month, where he received the award.
NAMBC Ambassador Pam Slutz said it was “especially fitting for Gene to receive this honor
in Canada, because his grandparents emigrated from Quebec to the US more than a
century ago.”
Source: NAMBC
350 MONGOLIAN CONTORTIONISTS EYE GUINNESS WORLD RECORD
Mongolia’s contortionists hope to set a second world record for the country this year with
a gathering bringing the largest number of the ultra-flexible performers to perform in one
act. To set a Guinness world record, 350 contortionists will perform on 6 August at
Chinggis square.
Source: Mongolia.GoGo.mn
BCM UPDATES:
UPCOMING EVENTS
ENERGY AND ENVIRONMENT WORKING GROUP MEETING, 24 JUNE 2016
BCM's Energy and Environment Working Group meeting will be held on 24 June 2016 from
16:00-18:00 on the topic of Energy Efficient Heating and Smart House Solutions to be
presented by Oyunbat Tumurkhuyag, Founder of Best Energy Savings LLC. The presentation
will be followed by a roundtable discussion on sharing international insights from MP Oyun
Sanjaasuren on her experiences of leading UNEA and from Solongo Khurelbaatar on her
work experiences at RAMSAR convention.
All BCM members are invited. For more information or to register, please contact
Bayarmaa@bcmongolia.org.
5TH ANNUAL BCM FOOTBALL TOURNAMENT, 2 JULY

13. BCM is registering teams for the 5th annual BCM Football Tournament, which will be held
at the National Garden Park’s football field on 2 and 3 July. This year 16 teams of up to 11
will compete for bragging rights and medals. Professional players, youth and adult
footballers are not allowed for this amateur tournament.
Registration is MNT400,000 per team and will close on 23 June. Teams will be officially
announced on the same day. A lottery will be held on 24 June to name the teams’
captains. To register or for more information, call E. Saruul at 11 317027 or email
saruul@bcmongolia.org.
JOIN BCM’S TRADE DELEGATIONTO MINEXPO INTERNATIONAL 2016
The Business Council of Mongolia (BCM) is now registering members to join a Mongolian
business delegation for MINExpo International 2016 at the Las Vegas Convention Center on
26 to 28 September. The expo is the world's largest show of its kind and most
comprehensive exposition dedicated to mining equipment, products and services. More
than 1,800 exhibitors in twelve exhibit halls will display the latest technology, equipment,
components, parts and services for exploration, extraction, safety, environmental
remediation and more!
Attendees will learn about improving productivity, controlling costs, keeping operations
competitive, improving safety and managing risk with all the new equipment, services,
products and technology. There will also be plenty of opportunities to network and meet
industry leaders & experts for finding potential partners and suppliers.
BCM has partnered with the U.S. Embassy’s Commercial Section in Ulaanbaatar for the
event. The registration deadline is 29 July. Contact BCM at 70114442 or email
tugi@bcmongolia.org for registration or more information.
PAST EVENTS
BCM’S FIRST TASTE OF MACU CHEESE
BCM’s Wine and Organic Mongol Cheese event on 7 June at Mexikhan Restaurant saw over
50 people in attendance. Guests had a unique opportunity to be the first ones to taste
Mongolian "Amarbayasgalant" cheese created by famous chef Eddie (Enkhee) and drink
delicious wines offered by MSM Group.
Special thanks to Eddie, owner & partner at Gandan Live House; to Mexikhan restaurant;
to MACU and to MSM Group for co-organizing this event!
MONGOLIAN-AUSTRIAN BUSINESS ROUNDTABLE
BCM hosted a round table meeting on 8 June between its members and a delegation from
Austrian government agency Advantage Austria, which specializes in international trade
and development. Over 50 people including around 20 BCM member companies operating
in Banking, Medical, Insurance, Food & Beverage sectors attended the meeting to
exchange know-how and experience with the Austrian enterprises. The meeting was
facilitated by Ch. Mergen, Executive Director of BCM.
BCM ADVOCACY NOTES
"BCM Workshop & Advocacy Efforts on the New Corporate Income Tax (CIT) Draft Law"
As a follow-up action on BCM's position paper on the draft Corporate Income Tax law, on
24 May meeting was held with MP Amarjargal Rinchinnyam, who led the Working Group

14. established at the Parliament to oversee the drafting of the draft legislation. With other
private sector representatives present at the meeting, BCM has shared the concerns
identified in the position paper. Read more…
BCM KNOWLEDGE SHARING SESSION: ‘EQUIPMENT MANAGEMENT TECHNOLOGY
SOLUTIONS', 15 JUNE 2016
BCM Knowledge Sharing Session on the topic "Equipment management technology" was held
at the Wagner Asia Automotive building with 12 members attending. The training was
specifically targeted to mining industry that utilize heavy machinery equipment.
Kh.Uyanga, Wagner Asia Technology COO facilitated the training covering topics like what
is equipment management technology, why it is important, and how proper and timely
equipment management solutions can help you control costs, improve operations, manage
people and reduce risks.
BCM WORKING GROUP NEWS
RISK AND LEGISLATIVE WORKING GROUPS’ JOINT MEETING
Draft proposed amendment of the Law on Disaster Risk Prevention was the main theme of
the Joint Meeting between Risk and Legislative Working Group Meeting that was held on 16
June 2016. National Emergency Management Agency (NEMA) introduced the draft
amendment and what changes has been introduced that affect the private sector.
Members had concerns on the new clauses that give new responsibilities to all entities to
conduct risk assessment and to mitigate disaster risks on top of activities that are already
being undertaken as part of implementing regulations on Occupational Health and Safety.
Members suggested to change the clause 48.3 which specifies that “all entities regardless
of its ownership type and structure shall plan and spend up to 5% of their revenue on
activities to mitigate disaster risk”. Spending of “up to 5%” should be based not from
revenue, but from expense. It was agreed that BCM will collect comments into this draft
amendment until 24 June 2016, and send the recommendation to NEMA in official letter in
early July 2016. BCM will continue to follow up on this draft amendment to reflect the
members comments and concerns before it gets approved by Parliament in Autumn
session.
To read the draft amendment, click here. To see the presentation by NEMA about this
draft proposal, click here.
To submit your comment, contact Bayarmaa@bcmongolia.org by 24 June 2016.
- Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June
2016
- Energy & Environment Working Group Meeting on “ENERGY EFFICIENCY INITIATIVES”, 26
May 2016
- Education Working Group Meeting on “BCM SSUMMIT PROCEEDINGS”, 5 May 2016
- Capital Markets Working Group Meeting on “OYU TOLGOI UNDERGROUND PROJECT
FINANCING”, 5 April 2016
- Tax Working Group Meeting on “VAT LAW”, 2 March 2016
- Business Ethics Working Group Meeting on “INSURANCE SECTOR TRANSPARENCY”, 1 March
2016

15. MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- Orchuulga 24 is providing 15% discount on all translation services to BCM Members
- MNC HD TV offers BCM members 20% discount from the fee to be showcased in their “The
Story of Business/Бизнесийн түүх” TV program.
- American University of Mongolia is offering BCM members a 20% discount on all of ELI
Summer Courses.
- Matoza LLC is offering 15% special discount to BCM members on Intensive Business English
Language Course in Poland with a Sightseeing Trip.
Please click here to view full list of Member-to-Member special offers & Benefits.
JOB VACANCIES AT MEMBER ORGANIZATIONS
- Save the children is hiring Advocacy and Communications Manager. Deadline for
Application: June 23, 2016. For more information: please contact:
secretary@savethechildren.mn
Please click here to view full list of Job Vacancies at member organizations.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
BCM Monthly Meeting, 30 May:
- B. Byambasaikhan, Chairman, BCM - “BCM Summit Proceedings”
- Ch. Mergen, Executive Director, BCM - "BCM Report"
- Anthony Woolley, Senior Associate, Hogan Lovells - “CIT Draft Law Update”
- D. Bat-Oktyabri, Director APAC, Techstars - “Start-up community in Mongolia”
- Michael Morrow, Executive Director, MACU & Ya. Enkhee, Owner & Partner at Gandan
Live House, Mexikhan & Guantanamera Restaurant - “It’s all about wine & cheese” event
- New Members Introduction
Please click here to view full list of Presentations.
MONGOLIA REPORTS:
- ADB, “Asian Development Outlook 2016: Asia’s Potential Growth” (forecasts of the next 2
years for the 45 economies in Asia and the Pacific including Mongolia)
- Invest Mongolia, “Your Guide to Invest in Mongolia” 2016
- BTI, “Mongolia Country Report” 2016
- World Bank, “Doing Business: Economic Profile of Mongolia 2016"
Please click here to view full list of Reports.

16. ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: NationalStatistical 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]
Year 2014 *11.0% [source: NSOM]
May 31, 2016 *1.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.8% y-o-y; 3.2% Core - Ulaanbaatar City, March 31, 2016
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: MongolBank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: MongolBank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: MongolBank}
January 14, 2015 13.00% {source: MongolBank}
January 14, 2016 12.00% [source: Mongol Bank]
May 6, 2016 10.50% {source: MongolBank}
CURRENCY RATES – JUNE 16, 2016
Currency Rate
US dollar USD 1,956.76
Euro EUR 2,209.18
Japanese yen JPY 18.87
British pound GBP 2,767.25
Hong Kong dollar HKD 252.19
Chinese Yuan CNY 297.62
Russian Ruble RUB 29.76
South Korean won KRW 1.67