BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 314 – February 28, 2014

NEWS HIGHLIGHTS: Business

Erdenes TT eyes 2016 for IPO;

Trafigura buys into China copper smelter Jinchuan Group;

Mirae shuns MMC junk bonds as coal slump drains cash;

SPC transfers Shivee Ovoo, Baganuur to Erdenes MGL;

Ex-Oyu Tolgoi chief sees Mongolia investment rules improving;

Sharyn Gol to begin briquette sales by winter 2014;

Sea buckthorn plant launches operations;

Mongolia’s first air cargo company opens;

Shivee Ovoo to test German machinery;

Acca diploma now available in Mongolia

Mongolia’s third Toyota dealership opens;

City council approves blueprints for auto complex;

Newera poised to drill at Ulaan coal project;

Altan Rio issuing common stock for $1.3 debt settlement;

ABMEC mission to Mongolia;

Turkish schools bear their fruits in Mongolia too;

Ariunaa Suri to promote Mongolia at Tokyo Fashion week;

Tsagaan Sar event in Utah celebrates Mongolian culture for OT workers;

Minter Ellison receives honors for client services;

The oracle of Mongolia: interview of Cover Mongolia's Mogi;

Centerra confirms plans to diversify through acquisition;

Centerra profit misses estimates on lower realized gold prices;

Volkswagen plans $9.2bn Scania minority buyout to seal trucks deal. Economy

FDI declines 36% in January y-o-y;

Government revenue falls 21.3% short of projections for January;

Mongol Bank auction sets MNT 1,780 rate against U.S. dollar;

Sales Managers' Index shows flagging confidence among retailers;

Judges receive pay raise;

State meat reserves see weak sales;

Mongol bank auction sets mnt 1,780 rate per u.s. dollar;

Sainshand, Zamyn Uud quarantined for foot and mouth;

India completes first phase of Rajiv Gandhi Art and Production School;

15 Mongolian nationals in South Korea government education program;

China iron-ore imports set to rise;

Japan sees key role for nuclear power;

Miners need to design projects with financing in mind. Politics

Mongolia Economic Forum to be held 24-25 March;

Mongolia presents its LLDC research center;

UK visa application center changes location;

UB boosts collaboration with Cuba;

BCM throws its support behind Mining Policy;

Former tax officials sentenced to 8 years;

Evidence shows former Just Group head may have stolen from Savings Bank;

Border point arrest made in attempt to smuggle antique items. *Click on titles above to link to articles.

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BCM MONTHLY MEETING RECAP The BCM meeting on 24 February with Randolph Koppa in the chair was attended by 95 members and invited guests. Koppa told the audience about BCM's discussions on the Minerals Policy passed by Parliament earlier this month. The policy sets the tone for mining-related legislation to be passed and was a prerequisite for the passage of amendments to the Minerals Law. BCM found the policy to be favorable to investors, although clarification will be necessary going forward. ―Were cautioning that let's not over complicate the [Minerals] law and see that it remains within the spirit and guidelines of the Minerals Policy,‖ said Koppa. Executive Director Jim Dwyer reported on a recent meeting of the Tax Advisory Working Group where Dr.. Khashchuluun presented on tax research, noting that there was the possibility for alarming changes to be seen—including a tax hike on mining from 25 percent to over 40 percent. BCM plans to make a request for an "open public discussion" of these concerns to Cabinet Minister Chimed Saikhanbileg in the near future. ―Members are our lifeblood,‖ said Dwyer, and BCM membership continues to grow. The six most recently joined members are:

1. Mitsubishi UFJ Financial Group (MUFG) is one of the world‘s largest and most diversified financial groups with total assets of JPY234,4 trillion (USD 2.3 trillion) as of March 2013. The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) is one of the group's five primary operating companies. In December 2013, BTMU announced the opening of its representative office in Ulaanbaatar, after receiving official approval by the Bank of Mongolia. The bank has provided financial support to the Mongolian business of Japanese companies through services including project finance and trade finance. With the establishment of a representative office, BTMU will strengthen its ability to collect information in a bid to better accommodate customer needs. 2. Dassault Systèmes SA is a large French company that specializes in the production of 3D design software, 3D digital mock-up and product lifecycle management solutions. Dassault Systèmes is a subsidiary of the Dassault Group created in 1981 by Avions Marcel Dassault to develop a new generation of computer aided design software called CATIA. 3. MIG Insurance was established in 1997 gaining its Insurance license to operate in the Mongolian insurance market. MIG has always aimed to offer clients a wide range of cutting-edge products that meet international standards of insurance purchasing and risk management as well as to spearhead innovation and best practice in the market. 4. Mine Info LLC was founded in 1997 as a mineral exploration and consulting company, later leading to the formation of the diversified company MIH Group. Mine Info has launched over 30 projects in Mongolia, in cooperation with foreign and Mongolian investors for surface and underground geological surveys. Mine Info's team of geologists includes senior geologists with 20 to 30 years of experience in the exploration of gold, coal, uranium, copper, REEs, construction materials, and hydro-geology. The GIS geologists on staff are well experienced in mining and geological software such as MAPINFO, MICROMINE, ARCVEIW, MINEX and other professional programs 5. Scania AB is one of the world‘s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. Service-related products account for a growing proportion of the company‘s operations, assuring Scania customers of cost-effective transport solutions and maximum uptime. Scania also offers financial services.......... Employing 38,600 people, the company operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2012, net sales totaled SEK 79.6 billion (USD 12.2 billion) and net income amounted to SEK 6.6 billion (USD 1 billion).. 6. As a global specialist in energy management, headquartered in France, with operations in more than 100 countries, Schneider Electric SA offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation, and data centers and networks, as well as a broad presence in residential applications. Focused on making energy safe, reliable, and efficient, the company's 140,000 employees achieved sales of more than EUR 24 billion (USD 33 billion) in 2012, through an active commitment to help individuals and organizations ―Make the most of their energy‖. _______________________________________________ B. Altanshagai, secretary-general for the 2014 Coal Mongolia conference, gave the first presentation of the evening with a recap on the coal investment meeting, which was held last

week at the SS Club in Ulaanbaatar. Altanshagai recounted the three goals of this year's event: increase investment in mining, introducing new technologies, and increasing competitiveness. ―This year was different as the new government gave more attention to Coal Mongolia, so we were able to invite representatives from several government agencies,‖ he said, which were the Ministry of Mining, Ministry of Foreign affairs, Ministry of Finance, Ministry of Industry and Agriculture, and Ministry of Economic Development. The Coal Mongolia website makes all of the presentations given during the event available for download, and an overview is also soon to be available. The BCM website has posted 20 of the presentations in Mongolian and 15 in English. President Tsakhia Elbegdorj's chief of staff, P. Tsagaan, spoke next on Mongolia's World Economic Forum partnership and the development scenarios presented in January in Davos. ―BCM has lots of members and today many new members including Mitsubishi Financial Group—one of the world's largest [finance companies]—and I'm happy to see BCM grow its numbers,‖ he said. Tsagaan told the audience about Mongolia's three-year partnership with the World Economic Forum to help bring responsible mining to the country, as well as reduce corruption and diversification of the economy. Water management has become a growing problem in Mongolia, and was an issue Elbegdorj made special mention of at Davos. Furthermore the government hopes to work with Hollywood actor and water activist Matt Damon to better promote the issue. ―This is a call for active participation, said Tsagaan. The scenarios will be presented 24-25 March at the Mongolian Economic Forum, he said, to be discussed by event speakers and the general public. Mine Info LLC Executive Director O. Zorigt gave an introduction for his company as the third presentation of the evening. Mine Info, MIH group's first subsidiary, has participated in over 40 projects in Mongolia related to deposits of minerals such as gold, copper, and uranium. The company has participated with partners such as Teck Resources, Prophecy Coal Corp., and Mgl Enterprises Ltd. to establish mineral companies. The company specializes in exploration, development of deposits of various sizes, environmental impacts assessments, identifying capacities, international standards compliance, and feasibility study, among others. This year the company will offer two new services. The first is the training of foreign staff in Mongolian culture, history, and mindset. Zorigt said the one-day training would help foreign businesspeople and investors acclimate to the Mongolian business climate. The second new service is consulting to help bring about win-win outcomes. That includes legal consulting, up-to-date legal news, the implementation of financial mechanisms between localities and miners, and the introduction of environmentally friendly technology. Nick Cousyn, chief operating officer of Ulaanbaatar based broker BDSec JSC, closed the presentation hour with a update on the Mongolian economy and the local capital market. Despite the financial difficulties felt in recent years, the Mongolian economy is seeing some positives, such as the USD 240 million Samurai bond and Trade and Development Bank (TDB) of Mongolia LLC's Dim Sum bonds. The government has helped promote investment with lower taxes on small business, he said, as well as the move toward the privatization of state-owned assets. There is also the expectation of greater engagement of business from China. ―We understand that China is pushing for some very large projects and, as we understand, things are very close to happening,‖ Cousyn said. Some of the business deals already known about are the 20 year, 50 million ton a year coal delivery agreement made during Prime Minister Norov Altankhuyag's visit to China late last year and proposed oil pipelines through Mongolia. The negatives include the general collapse of foreign investment—the FDI in January 2014 was still 12 percent lower than the same period a year before which showed a larger decline from

2012—and the strain on relations with investors. Although investors are aware of the government's moves to welcome back investment dollars, any steps taken in the wrong direction moving forward could see investors leave for good, he said. ―If investors are blown off, then the buyers of last resort will be Russia and China. If I'm the government, I'm going to want to keep these guys engaged here.‖ __________________________________________________________________________________ BUSINESS ERDENES TT EYES 2016 FOR IPO State-owned coal miner Erdenes Tavan Tolgoi LLC still intends for a triple listing in Ulaanbaatar, Hong Kong and London, with current plans targeting a 2016 date, said Executive Officer Yachil Batsuuri at the Coal Mongolia conference last week. Production is set to rise to 11 million tons this year from 5.3 million tons in 2013, he said. By 2016, he said, output would be 35 million tons. He also said remaining debt to Chalco stands at USD 140 million out of a total USD 350 loan to be repaid in coal shipments. He said the company aims to repay the remaining debt by this coming spring, adding that the company already had enough coal mined to repay its debt. Repayment, however, will depend on whether the firm will be able to make those deliveries in the face of transportation bottlenecks. He said Erdenes TT has contracted over 10 Mongolian and Chinese companies for a total fleet of 416 trucks to make the delivery. An 18 kilometer cross-border railway from the Chinese-Mongolian border is set for construction this spring. He said a railway would reduce costs of cross-border shipments from USD 8 per ton to USD 1 per ton, he said. Another 247-kilometer railway from Tavan Tolgoi to the border is already under construction.

Source: Undesnii Shuudan, Bloomberg, Cover Mongolia TRAFIGURA BUYS INTO CHINA COPPER SMELTER JINCHUAN GROUP Trafigura Beheer BV, the Dutch commodities trading house responsible for copper deliveries from the Oyu Tolgoi mine, will take a minority stake in a new copper smelter in southern China, marking only the second time that a foreign company has made a large investment in the Chinese non-ferrous metals industry. Trafigura on Friday said it had agreed to buy a 30 percent holding in a copper smelter belonging to state-owned Jinchuan Group, China‘s top nickel miner and one of its largest copper producers. Although the group did not disclose a price, a person familiar with the matter said that Trafigura had agreed to pay USD 150 million for the 30 percent stake. The smelter is in Fengchengang, a newly developed industrial area in Guangxi province on China‘s southern coast. The investment—Trafigura‘s first major investment in the country—still requires government approval. The purchase follows a policy, first proposed in 2012, of introducing private capital investment in Chinese infrastructure while keeping control in the hands of state groups. Earlier this week, state-owned oil company Sinopec said that it would allow outside capital to invest in its sales and marketing network—a move that is likely to involve a restructuring of that unit to allow direct equity investment, although the specifics are yet to be decided. China‘s non-ferrous metals industry has little direct foreign investment, with the exception of the joint venture copper smelter in Anhui Province run by Tongling Nonferrous Metals Group and Sumitomo of Japan. The smelter investment comes as Trafigura awaits a major new stream of copper concentrate supply from the mammoth Oyu Tolgoi mine in Mongolia. Trafigura, which is already one of the biggest traders of Mongolian copper concentrate, said late last year that it would help finance the second phase of the mine in return for the right to purchase an unspecified amount of the mine‘s output.

Source: Financial Times MIRAE SHUNS MMC JUNK BONDS AS COAL SLUMP DRAINS CASH

Mirae Asset Management Co. is avoiding junk bonds of Mongolian Mining Corp. (MMC) in the absence of a rebound in coal prices, as Moody‘s Investors Service says any so-called distressed exchange would add to downgrade risks. The company‘s 8.875 percent notes due March 2017 have declined 11 percent this year, bringing losses to 17 percent since the bonds were sold in March 2012. The debt, sold to investors at par, traded at about 69 cents on the dollar to yield 23.5 percent yesterday, Bloomberg-compiled prices show. Moody‘s lowered its long-term rating on Mongolian Mining to Caa2 in November, its fourth-lowest junk grade, while Standard & Poor‘s cut to its fifth-lowest level of CCC+ this month. MMC lost money last year thanks to a three-year slump in benchmark coking coal prices, which reached a record-low on Feb. 5. The Ulaanbaatar-based, Hong Kong-listed miner is raising cash by selling assets and seeking to roll forward some loans as it faces USD 277 million of debt-servicing obligations this year, Moody‘s said in a 17 February statement. ―The company has to settle its loans coming due before they get to a distressed situation,‖ said Kim Jin Ha, a money manager in Seoul at Mirae. ―We‘ll only get back in after some positive signs, no matter where the bonds are trading at. We‘ll wait for a clear improvement before we can say 70 cents is good value.‖ CreditSights Inc. placed an ‗underperform‘ recommendation on the 2017 bonds in a 13 February report, given the company‘s ―critical‖ financial woes. The miner produced 9.7 million metric tons of coking coal in 2013, meeting 79 percent of guidance, the research firm said in a separate January report. MMC raised USD 90.3 million selling its Ukhaa Khudag-Gashuun Sukhait road assets to state-owned Erdenes MGL LLC on 13 February, according to a Hong Kong exchange filing. That will ease short-term liquidity strain, Moody‘s said.

Source: Bloomberg SPC TRANSFERS SHIVEE OVOO, BAGANUUR TO ERDENES MGL The State Property Commission (SPC) has transferred ownership of the Baganuur and Shivee Ovoo coal mines to Mongolia's state-owned mining asset holding company Erdenes MGL. Erdenes MGL appointed representatives as board chairmen of both companies, and approved each miner's business plans. Competent staff will be selected for each governing board, said Da. Ganbold, Erdenes MGL‘s Chief Executive Officer. The state owns 75 percent of Baganuur and 90 percent of Shivee Ovoo, both of which are listed on the Mongolian Stock Exchange. Erdenes MGL has 100 percent ownership of Erdenes Tavan Tolgoi LLC and Erdenes Oyu Tolgoi LLC, and 51 percent of Erdenet Mining Co.

Source: Unuudur EX-OYU TOLGOI CHIEF SEES MONGOLIA INVESTMENT RULES IMPROVING Rio Tinto's former Mongolian chief and boss of the massive Oyu Tolgoi copper project says the country is taking the right steps to arrest a drop in foreign investment but needs to do more to ease uncertainty for explorers and developers. Four months after parting ways with global miner Rio Tinto, Cameron McRae has joined the advisory board of Toronto-listed explorer Kincora Copper, as it tries to reclaim licenses revoked by the Mongolian government that spawned a CAD 7 million writedown (USD 6.3 million). McRae has also been appointed executive chairman of Mongolia-based consulting firm SkyPath Partners LLC, which is aiming to help investors navigate Mongolian regulations and raise capital. "There's a lot of money that needs to come into Mongolia and it's not just going to get there by itself. The intermediary role is important," McRae told Reuters. In addition Mr. McRae will be a foundation director of a new Mongolia institute liaising with the business associations and the Government of Mongolia in the development of the nation‘s business environment and policy. Few would have more experience than McRae in dealing with Mongolian authorities, as he saw multiple disputes unfold while leading the Oyu Tolgoi project. Parliament members attempted to amend a 2009 investment agreement between the government and Rio's majority-owned

Turquoise Hill, which owns 66 percent of the mine, in 2011 and again in 2012. Disputes over Oyu Tolgoi and broader regulatory uncertainty have deterred other investors looking to build mines in Mongolia and led to a 54 percent drop in foreign direct investment to USD 2.05 billion in 2013 from a year earlier. Now an outsider to dealings involving Oyu Tolgoi, McRae said Mongolian lawmakers have shown they have learned from mistakes made over the past few years, when the mine investment agreement was regularly attacked in parliament and in the media. "When I arrived in Mongolia, criticizing the OT investment agreement was almost like a political sport," McRae said. "I think the government has certainly recognized the importance of resolving those sorts of issues behind closed doors. I think that's a big step forward."

Source: Reuters SHARYN GOL TO BEGIN BRIQUETTE SALES BY WINTER 2014. Sharyn Gol JSC is hoping to introduce its smokeless Naco coal briquettes to the Mongolian market by next winter, said its director. ―Following the closure of the tender offer, we successfully test fired both of Naco‘s retorts,‖ said James Passin, who is also a manager at the company's majority equity holder Firebird Mongolia Fund. ―Existing equipment works but needs a little work. The next step is to upgrade and fully winterize the Naco plant, so we can operate the plant year-round.‖ He said the company would utilize financing from the European Bank for Reconstruction and Development to build new additional retorts and significantly increase its capacity to produce the smokeless fuel. Sharyn Gol will market its Naco briquettes as a clean, environmentally friendly alternative to raw coal. ―It is part of the solution for the horrendous air pollution that we experience in the winter,‖ he said noting that reducing air pollution was a main effort of the government. Sharyn Gol is targeting first sales of 75,000 tons of char for winter 2014, with volumes to increase as capacity expands in 2015. Passin said Sharyn Gol expects to have a wash plant to go on line by June, which will be used to create enhanced coal products for the Mongolian market. In contrast to competing briquette producer Modun, Sharyn Gol has an operating mine and a briquetting plant, said Passin. ―...[W]e are skeptical that Modun is in a position to convert its non-binding memorandum of understanding into an actual off-take agreement with the Clean Air Fund,‖ he said. ―We also reviewed the technology they proposed for briquetting, and in our view it is inappropriate for the ger market.‖ The Naco product is formed by the elimination of ―volatiles‖ from raw coal for reduced pollutant output, he said, while Modun plans to remove moisture from the coal, ―which actually increases the volatiles to a higher level per ton than its own raw coal.‖

Source: Emerging Frontiers SEA BUCKTHORN PLANT LAUNCHES OPERATIONS A new plant for the processing of the locally grown sea buckthorn berries has launched its operations in Bayanuur Soum, Bulgan Aimag. The plant, which is part of a government initiative to support the industry employed by the Ministry of Industry Agriculture, can produce 2,000 liters of fruit juice [Source does not specify time period for production -ed]. The berry is popular in Mongolia for its perceived medicinal properties in boosting immune systems and contains the vitamins C, E, B1, B2.

Source: News.mn MONGOLIA‟S FIRST AIR CARGO COMPANY OPENS Aircargo Mongolia is the country's first air freight delivery company. The company is able to transport 455 tons [source does not specify over what time period -ed] with its Airbus A 300-600 plane, which can fly a distance of 7,540 kilometers without stopping. Aircargo Mongolia plans to make regular flights to Russia‘s Novosibirsk and Irkutsk, Germany‘s Bonn, and China‘s Tianjin, Shanghai and Urumch. The company also commissioned charter flights to countries throughout Asia and Europe on 25 February.

Source: Udriin Sonin SHIVEE OVOO TO TEST GERMAN MACHINERY Germany‘s Wirtgen Group, JMC Group, and Mongolia‘s Shivee Ovoo JSC entered a cooperation agreement to study how to introduce new technology for efficient coal mining at the Shivee Ovoo mine. The Surface Miner 2200 SM multipurpose machine from Wirtgen will be tested for Shivee Ovoo‘s difficult and high-cost surfaces. The machine features the ability to drill, blast, load and crushing all at once. This particular piece of equipment was chosen following initial study by JMC and Wirtgen.

Source: Info Mongolia ACCA DIPLOMA NOW AVAILABLE IN MONGOLIA PricewaterhouseCoopers (PwC) Mongolia is running a training programme for accountants and finance practitioners to obtain an ACCA Diploma in International financial reporting for the first time in Mongolia. The ACCA is an internationally recognized professional diploma for International Financial Reporting Standards (IFRS) that gives its holders the chance to apply for higher-ranking jobs in any country where IFRS is used. Eligible candidates must pass just one exam in English to earn the diploma. The PwC training programme is designed to prepare candidates fully to successful complete the exam in English, scheduled for June 2014. "We at PwC believe that running this programme will contribute to the overall quality of accounting profession in Mongolia," said Matt Pottle, the PwC country managing partner for Mongolia.

Source: PricewaterhouseCoopers Mongolia MONGOLIA‟S THIRD TOYOTA DEALERSHIP OPENS The Mongolia-Japan joint venture Munkhkhada LLC has opened as Mongolia's third Toyota dealership. The dealer for the Japanese automobile sold 30 vehicles in its first three days of operations, said the manager, leaving only car left on the lot. The dealer has mainly sold Toyota‘s larger SUVs, including 2013 Land Cruiser 200, Prado, Hiluxe, Rav 4, and Camry. ―The Land Cruiser 200 is selling well at the price of MNT 112 to 167 million,‖ said the manager. He said the dealership beginning in May would sell cars marketed toward middle-income consumers, including the hybrid-electric Prius and Corolla.

Source: Udriin Sonin CITY COUNCIL APPROVES BLUEPRINTS FOR AUTO COMPLEX The Ulaanbaatar Citizens Representatives‘ Khural February 20 approved blueprints for an auto-trade complex planned for Ulaanbaatar. Plans for the complex have work scheduled to begin before this summer's Naadam Festival in July. The Auto Trade complex would be able to house 14,000 cars after its commissioning scheduled for 2019. Project planners hope to finance the complex through the rent and sale of space at the site. Preliminary plans have 285 pavilions, parking lots for 11,324 sedans and SUVs as well as 1,191 large buses and pieces of heavy machinery. Ulaanbaatar currently has nine auto markets servicing an estimated 6,000 to 10,000 customers each day across a space of 25 hectares. The city hopes the complex will address the growing traffic problems in the roads leading to the markets. An auto expo to host events is also planned, along with 14 office buildings, 1,438 customer car parks, and 42 kilometers of road from the city.

Source: Info Mongolia NEWERA POISED TO DRILL AT ULAAN TOLGOI COAL PROJECT

Newera Resources Ltd. is poised to start 2,000 meters of diamond drilling to test for potential coal deposits underlying five seismic lines that have produced positive results at its Ulaan Tolgoi coking coal project. In the first of two phases of a drilling campaign, Newera plans to drill two diamond holes of about 300 meters each into the best prospects identified as a pre-cursor to the 1,400 meters planned for phase two. The company has already completed all necessary regulatory and other requirements and notifications to enable drilling to begin once local weather permits. In addition, the drilling contractor Best Drilling has re-located a suitable diamond drilling rig to the regional city of Dalanzadgad in preparation for easy transport to the Ulaan Tolgoi site. Newera expects that by the time the rig has been mobilized to site and before commencement of the first hole, it will have earned a 51 percent interest in CMNM LLC—the Mongolian registered company holding 100 percent of the Ulaan Tolgoi exploration license.

Source: Proactive Investors ALTAN RIO ISSUING COMMON STOCK FOR $1.3M DEBT SETTLEMENT Altan Rio Minerals Ltd. on 20 February announced it had reached agreement with creditors to settle debt in the total amount of CAD 1.429 million (USD 1.29 million) by the issuance of 20.4 million of its common shares priced at USD 0.07. Altan Rio is continuing with its private placement with The European Bank for Reconstruction and Development (EBRD) originally announced on 8 January. Under the private placement, EBRD will purchase 16.67 million common shares of Altan Rio at USD 0.06 per share for gross proceeds of CAD 999,960. EBRD is expected to hold approximately 18.8 percent equity of Altan Rio following the transaction.

Source: Altan Rio Ltd. ABMEC MISSION TO MONGOLIA The Association of British Mining Equipment Companies (ABMEC) is to lead a high-profile mission to the fourth Mongolia Mining Exhibition in Ulaanbaatar on 10 to 12 April. Four ABMEC companies will exhibit at Mongolia Mining—Friction Marketing Co., Joy Global, MMD Sizers and Reilloc Chain. Their expertise lies in surface and underground mining systems, processing equipment, chains and supplies for original equipment manufacturers.

Source: Montsame TURKISH SCHOOLS BEAR THEIR FRUITS IN MONGOLIA Turkish school‘s alumni in Mongolia have launched the businessmen association Businessmen of the Land of Blue Sky (BASIC). ―With today‘s opening, we believe our association will grow increasingly to become a global one,‖ said Baatar Tsolman, chairman of the board at the inaugural meeting at the Blue Sky Tower and Hotel. ―We aim to have our members meet the members of our global partners and thus invest in a variety of fields.‖ The event was attended by Mongolia business people and Turkey‘s ambassador to Ulaanbaatar, Turkish businessmen, and Azerbaijani investors. The association‘s officials introduced their initiatives and business agreements between partners were made.

Source: Hizmet Movement ARIUNAA SURI TO PROMOTE MONGOLIA AT TOKYO FASHION WEEK Mongolian designer Ariunaa Suri will show her collection at Mercedes Benz Fashion Week in Tokyo 17 to 22 March. Since establishing her eponymous brand in 2011, Suri has worked to combine the Mongolian nomadic ethic with minimalist western style. Her cloths feature mixed, soft hues made from organic fabrics such as wool, cashmere and leather that come from the cattle in Mongolia's steppe. She worked as a designer in Berlin after 10 years of study in Bremen, Germany.

Source: Montsame TSAGAAN SAR EVENT IN UTAH CELEBRATES MONGOLIAN CULTURE FOR OT WORKERS

A diverse group of people gathered for a Mongolian Lunar New Year celebration in Utah last Saturday to welcome 16 Mongolians who will be staying in Utah for the next year for a Rio Tinto PLC training program. The newly arrived Mongolians, community members, Mongolians already living in Utah, Utahns with an affinity for the country, representatives from Kennecott Utah Copper and Rio Tinto and the Inter-mountain Relocation Council attended the event, which featured music, dancing and traditional Mongolian food. Thomas Whitaker, president of the Inter-mountain Relocation Council, said he founded the nonprofit organization in 2010 with a focus on helping companies with employees coming to Utah acclimate to the state. This is the second group of Mongolians Whitaker has worked with, he said. Each month, the organization puts together an event for the Utah transplants. This group came through Rio Tinto's Copper Group graduate program, which brings them from a Rio Tinto mine in Mongolia to Kennecott as part of a 12-month development program. "Their opportunities here will help them be leaders in Mongolia," Kennecott spokesman Kyle Bennett said. Blandine Donnez, who oversees human resources for the copper group, said there are events planned that are unique to Utah, such as a Salt Lake Bees game.

Source: Desert News MINTER ELLISON RECEIVES HONORS FOR CLIENT SERVICES Minter Ellison received a pinnacle award for Client Service Excellence at the Chambers Asia-Pacific 2014 Awards last week. The awards were run in conjunction with the release of the Chambers Asia Pacific 2014 Legal Directory, which ranks the region's leading law firms and individual lawyers. The directory noted that Minter Ellison's specialist practice in Mongolia—with its focus on corporate merger and acquisition, investment, and energy and natural resources—combines Mongolian law expertise with the international experience synonymous with a top tier law firm. Minter Ellison was the only Australian-based law firm ranked by the directory in Mongolia. "The Chambers awards showcase the top-performing firms in the Asia-Pacific and set a very high bar for overall service excellence,‖ said Minter Ellison's chief executive partner, John Weber. ―Being named 'the best of the best' acknowledges the high regard clients have for our firm across all our offices."

Source: Minter Ellison THE ORACLE OF MONGOLIA: INTERVIEW OF COVER MONGOLIA'S MOGI Badral ―Mogi‖ Munkhdul aggregates all the news from around the world about Mongolia every day and puts it out in his Cover Mongolia service via Twitter, the eponymous website and e-mail. He rarely makes comments within his service, but those that he does are insightful and accurate. As someone who covers emerging and frontier markets like Mongolia and someone long on several Mongolia stocks including long-dated Turquoise Hills calls, following Cover Mongolia on Twitter is obligatory. Mongolia has shown genuine interest in catering to foreign investors with the passage of the Investment Law—which replaced 2012's Strategic Entities Foreign Investment Law and the 1993 Investment Law—the Investment Funds Law and Securities Market Law, said Mogi. ―All of this has been a step in the right direction. It is helping investor sentiment to bring back foreign investors to Mongolia.‖ He said the government was put in a tough position due to falling foreign investment numbers and a depreciating tugrug, giving ―the courage to politicians to speak frankly.‖ The impact of the economic troubles in Mongolia has hit the general population, he said, which is also giving greater incentive for Mongolia's lawmakers to be at peace with its foreign partners. However, the country is now faced with the task of making crucial decisions in the coming months regarding its mining endeavors. Construction of an underground mine at Oyu Tolgoi is still on hold while indirect majority investor Rio Tinto and the government sort out disputes, and Erdenes Tavan Tolgoi is still trying to put its affairs in order for a widely anticipated public offering. There is also the matter of whether it should continue its commitment to only building rail with a Russian gauge rather than China's more narrow gauge.

―The last two years have been difficult for Mongolia‘s mining sector,‖ he said. He added, ―The government is trying to help the economy on two fronts. One is trying to bring back investments and FDI. They have been doing a lot of road shows around the world to promote this. They have also been promoting local exports and local manufacturing that can replace imports.‖

Source: Forbes CENTERRA CONFIRMS PLANS TO DIVERSIFY THROUGH ACQUISITION Centerra Gold Inc. announced Friday in an interview with Bloomberg plans to acquire at least one other production asset or company holding a couple of assets in the next few years. Centerra has already looked into developing, producing assets, mostly located within Asia, but will also look into advanced stage projects and in other geographies. Separately, Centerra plans to use a strong balance sheet to move forward projects such as Oksut in Turkey and Gatsuurt in Mongolia. In Turkey, Centerra does not expect permitting to be a problem as the Turkish government is pro-mining. In Mongolia, the government is considering declaring seven deposits as strategic, Gatsuurt being one of them. The government is likely to take "the list" to parliament when it resumes in April enabling Centerra to move forward with the project. ‖Whilst in line with the market expectations, we believe that the affirmation of Company's plans to diversify are likely to be seen as positive,‖ reads the source. ―We note that depending on the asset, its price and required capex, the potential acquisition may be value-accretive. We also note that that newsflow on Oksut, including update of resources, capex required to develop the project, approvals from Turkish authorities, etc. could be value drivers for Centerra.‖

Source: Visor Capital CENTERRA PROFIT MISSES ESTIMATES ON LOWER REALIZED GOLD PRICES Boroo gold mine operator Centerra Gold Inc. reported a lower-than-expected fourth-quarter profit, hurt by lower realized gold prices. The company reported a net income of USD 106.6 million, or 45 cents per share, in the quarter ended 31 December, compared with a loss of USD 70.7 million, or 30 cents per share, a year earlier. Analysts on average had expected the company to earn 68 cents per share. Revenue in the fourth quarter rose about 27 percent to USD 468.9 million due to higher ounces sold, but was partially offset by a 26 percent drop in realized gold prices. The average realized gold prices in the fourth quarter fell to USD 1,271 per ounce from USD 1,711 per ounce a year earlier. Centerra, which owns and operates the Kumtor mine in Kyrgyzstan and the Boroo mine in Mongolia, said consolidated gold production in 2013 nearly doubled to 690,720 ounces from 387,076 ounces a year earlier. "Both operations exceeded their production guidance in 2013, mainly as a result of a strong fourth quarter at Kumtor and better than expected annual production from the heap leach operation at Boroo," Ian Atkinson, Centerra president and chief executive officer said in a statement. Centerra said it expects to continue its discussions with the Kyrgyz government for a potential restructuring to resolve all outstanding concerns relating to the Kumtor Project. Kumtor, hidden in the Tien Shan mountains near Kyrgyzstan's border with China, has long been a source of political tension in the impoverished Central Asian nation. Kyrgyzstan's parliament this month gave the government up to four months to finalize a draft deal with Centerra to form a joint venture to run the Kumtor gold mine. Kyrgyzstan owns a 32.7 percent stake in Centerra. The draft agreement calls for an exchange of this stake for half of Kumtor, Centerra's core asset. Centerra said last month it expected to produce 595,000 to 645,000 ounces of gold in 2014, of which 550,000 to 600,000 ounces will come from Kumtor.

Source: Reuters VOLKSWAGEN PLANS $9.2BN SCANIA MINORITY BUYOUT TO SEAL TRUCKS DEAL

Volkswagen Group plans to buy out minority shareholders of Swedish trucks division Scania for EUR 6.7 billion euros (USD 9.21 billion) as it aims to jump-start a stalled eight-year effort to forge Europe's biggest truckmaker. Volkswagen has spent billions of euros over more than a decade on expanding stakes in Scania and its other trucks division MAN SE to reap cost savings and take on Daimler, the world's biggest truck maker. "We are launching this takeover offer to remove restrictions to a deeper cooperation between Scania and MAN," Finance Chief Hans Dieter Poetsch said on a conference call. Volkswagen said in a statement late on Friday it will sell preferred shares for up to 2 billion euros, issue hybrid capital of up to 3 billion euros and draw another 2 billion euros from its ample cash reserves of 16.9 billion euros. Europe's biggest automotive group is struggling to replicate its effective multi-brand management of passenger-car marques, such as luxury flagship Audi and Czech division Skoda in its truck operations, the success of which is important for a goal of becoming world market leader by 2018. Wolfsburg-based VW, which together with MAN already owns 62.6 percent of Scania's equity and 89.2 percent of the votes, said it named ex-Daimler executive Andreas Renschler to head up its trucks operations from 1 February 2015. The tender period will start on 17 March and end 25 April, Volkswagen said. The carmaker eyes additional synergies of at least 650 million euros per year from joint development and other steps, adding it may take at least 10 years to achieve the full potential. The truckmakers have already said they will save a combined 200 million euros this year by pooling purchases of materials including tires, steel and glass.

Source: Reuters ECONOMY FDI DECLINES 36% IN JANUARY Y-O-Y Mongolia‘s January foreign direct investment (FDI) declined to USD 182.1 million from USD 283.4 million a year earlier, a decrease of 36 percent, reported the Bank of Mongolia. January's current account deficit was USD 75.5 million compared with USD 360.3 million from the same period in 2013. Capital financial accounts saw a USD 290 million surplus, which was a 20 percent decline year-on-year. FDI fell to USD 1.996 billion last year from USD 4.407 billion in 2012.

Source: Bloomberg, Independent Mongolian Metals & Mining Research GOVERNMENT REVENUE FALLS 21.3% SHORT OF PROJECTIONS FOR JANUARY State Budget revenue fell 21.3 percent below projections for the month of January. Income was MNT 353.7 billion compared with planned budget income of 2014 is MNT 6.9 trillion. Revenue was 2.3 percent higher than that of the same period last year. The planned 2014 budget allocates MNT 6.9 billion, with MNT 5.5 trillion for expenditures, MNT 1.1 trillion for investment, and MNT 29.5 billion for the Stabilization Fund. Parliament will decide the fate of 240 frozen projects in the upcoming spring session. Those projects will likely be transferred to 2015 if revenue does not pick up.

Source: Undesnii Shuudan MONGOL BANK SEES SPIKE IN GOLD SALES Gold sales to the Central Bank have tripled since Parliament reduced gold royalties to 2.5 percent. The Bank of Mongolia purchased 1.5 tons since Parliament amended the Minerals Law for gold royalties on 26 January, said P. Sukhbaatar, director of banknotes and precious metals. The law cut the sliding-scale gold royalty to zero from a maximum 5 percent and the base royalty in half to 2.5 percent. The amendment is set to expire January 2019. ―We also stopped putting purchasing threshold of 300 grams,‖ said Sukhbaatar. ―Gold for sale should be measured at the Center of Standardization and Measurement for its concentrates, beforehand. At present, we are purchasing at the Bank of Mongolia only, but, if needed, we may purchase from other places.‖

He said the added gold reserves would help to boost the exchange rate of the tugrug against foreign currencies.

Source: Udriin Sonin SALES MANAGERS' INDEX SHOWS FLAGGING CONFIDENCE AMONG RETAILERS An index measuring the attitude of sales managers has shown weak confidence in the market and rapid price growth. The Mongolia Sales Managers‘ Index, surveys sales managers and showed that confidence among sales managers was low, registering under the 50 mark. However, the rate of decline is falling, and is now close to the ―neither growth nor decline‖ level. Sales managers‘ reported that the overall speed and direction of economic growth has begun to fall after unusually difficult weather conditions in February. The key mining and construction sectors have been hit particularly hard, experiencing a month of declining market growth. However non-manufacturing sectors have seen modest economic growth over the past month. The Prices Charged Index registered 61.7 in February, which marks a decrease from last month but still reflects rapidly increasing prices. The Index suggests sales managers are still passing on large price increases to business and consumers albeit at a slowing rate. "Sales managers have told us that the weakened tugrik is still causing widespread inflationary problems, with petrol prices in particular rising rapidly,‖ said World Economics Chief Executive Ed Jones. He said market indexes began to decline, partly due to harsh weather conditions in February. Conditions such as -40C degree temperatures had key manufacturing industries curtail operations. ―Panelists seem confident that strong GDP growth will resume in 2014 despite short term seasonal challenges."

Source: World Economics JUDGES RECEIVE PAY RAISE The intent of the measure is to provide greater independence among judges. Judge salaries for the primary courts were set at MNT 3.7 million a month, MNT 3.9 million to MNT 4 million for appellate justices, and MNT 4.5 million for high court justices. Including bonuses, judges stand to earn MNT 5 million a month on average compared with MNT 1.1 million not long ago.

Source: Udriin Sonin STATE MEAT RESERVES SEE WEAK SALES Sales of the government's meat reserves have reportedly sold below expectations. ―Only 650 tons out of 14,000 tons in state reserves of meat were sold, said Vice Director of Food Production Policy Implementation Department of Ministry of Industry and Agriculture B. Munkhjargal. ―We plan to sell 70 percent of reserves by 30 June. He added that consumers were likely buying less meat after exhausting their incomes for the Tsagaan Sar holiday. Consumers, however complain about the poor quality of reserve meat. ―Although there is plenty of meat, there are few customers in these days. The purchasing power of citizens is getting low,‖ said a meat trader at the Khuchit Shonhor. ―This year traders stored lots of meat, expecting a price increase, but because of the price decline they are facing losses,‖ said another trader at the market, later noting that the surplus may be related to the folding of Mongolia's only meat exporter last year, Just Agro LLC.

Source: Undesnii Shuudan MONGOL BANK AUCTION SETS MNT 1,780 RATE PER U.S. DOLLAR The Bank of Mongolia sold commercial banks USD 28 million at a closing rate of MNT 1,780 per USD and CNY 9.6 at a closing rate of 292.02 per yuan. Also, on the same day, the Central Bank received an equivalent USD 41.5 million and USD 8 million in swap agreements with local commercial banks, filling requests for USD 41.5 million. The exchange rate for the tugrug at the Naiman Sharga foreign currency exchange market saw the exchange rate reach MNT 1,785 for the sale of dollars and MNT 1,788 for the purchase. The market had Chinese yuan selling at a rate of MNT 293.60 and purchasing at MNT 294.50. The

official exchange rates announced by the Central Bank 24 February was MNT 1,776.11 against the dollar, MNT 2,439.93 against the euro, MNT 291.51 against the yuan, MNT 2,955.62 against the pound, and MNT 50.11 MNT against the ruble. Separately, the Bank of Mongolia issued one-week bills worth MNT 337 billion at a weighted interest rate of 10.5 percent per annum on 24 February.

Source: Info Mongolia SAINSHAND, ZAMYN UUD QUARANTINED FOR FOOT AND MOUTH Local authorities banned passenger cars from entering Sainshand and Zamyn-Uud Soums beginning 24 February to prevent the spread of foot-and-mouth disease. Emergency authorities in Dundgobi and Umnugobi Aimagshave restricted the entry of cars traveling from Ulaanbaatar with loads of less than five tons into Sainshand and Ulaanbaatar to Zamyn-Uud, which is effective from February 24, 2014. Ulaanbaatar currently has seven control posts and four sanitary posts operating 24-seven for disinfection. Recent cases of the disease were registered in Aimags and Sainshand Sums in Dornogobi Aimag. The first cases of the disease registered this year were in Ongon Sum, Sukhbaatar Aimag 27 January. Since then foot-and-mouth has spread to several counties in Sukhbaatar, Khentii and Dornogobi Aimags, and a total 2,803 cattle were destroyed out of a total 2,812 infected cattle. Herders had 2,173,792 animals vaccinated 24 February.

Source: Info Mongolia INDIA COMPLETES FIRST PHASE OF RAJIV GANDHI ART AND PRODUCTION SCHOOL India has completed the first phase of the modernization of the Rajiv Gandhi Art and Production School in Ulaanbaatar, as part of a state-funded assistance program. The first phase of the museum renovation project was handed over to Mongolia 17 February. The project has been funded by the Ministry of External Affairs under a grant agreement between India and Mongolia signed in October 2013.

Source: Business Standard 15 MONGOLIAN NATIONALS IN SOUTH KOREA GOVERNMENT EDUCATION PROGRAM A state-run training institute for public servants is training faculty members of the National Academy of Governance in Mongolia which is committed to educating politicians, public officials and decision-makers at public organizations there. A total of 15 Mongolian professors and high-ranking officials are being taught in an education program at South Korea‘s Local Government Officials Development Institute (LOGODI) in Wanju, North Jeolla Province. The program will run through 2 March. LOGODI has provided Mongolian officials with the program since 2002, during which nearly 150 Mongolians were given an opportunity to learn how to improve public services and enable transparency in government. Officials from the Prime Minister‘s Office, the Ministry of Strategy and Finance, and the Ministry of Security and Public Administration will take part in the program to share their knowledge and experiences with their Mongolian counterparts. ―I expect our program will help improve Mongolia‘s national competitiveness,‖ said Rheem Chae-ho, president of LOGODI. Mongolian trainees will also inspect the country‘s biggest science cluster in Daejeon and Hyundai Steel in Dangjin, South Chungcheong Province. A diplomatic relationship between Korea and Mongolia was established in 1990. Since then the two nations have seen a steep hike in bilateral trade volume. In 2012, Korea exported worth USD 490 million to Mongolia.

Source: Korea Times CHINA IRON-ORE IMPORTS SET TO RISE China's dependence on foreign iron ore likely will reach record levels, industry officials said, which could help global prices recover from a slump and intensify Beijing's efforts to diversify its sources of the ingredient in steel. Any surge in demand for iron ore from China would be of benefit to Mongolia, which plans to open downstream iron-ore processing facilities to add value to its minerals.

The Chinese officials‘ forecast also projected that China would increase steel production despite government efforts to curb an industry widely seen as bloated and polluting. Beijing has pledged to curb steel-industry overcapacity as it restructures the economy. But the effort is politically difficult in places where facilities are significant employers. China is the world's biggest buyer of iron ore, accounting for 63 percent of global imports last year. Its iron-ore imports are likely to rise 6 percent this year to a record 870 million metric tons, Li Xinchuang, executive deputy secretary-general with the state-backed China Iron and Steel Association, said at an industry conference Tuesday. Steelmakers are buying ore even as inventories at port warehouses pile up to near-record levels and a slowdown weighs on the broader Chinese economy. "A lot of mills are now importing ore in competition with each other," Li said. "It's like, if I see that you're bringing in ore, I have to bring in ore, as well. Part of the appetite may derive from rising global supply, which is making prices more attractive. The world's top iron-ore producers are set to produce an additional 126 million tons, or 14 percent, this year. Chinese demand could help stem the price slide. Beijing is trying to wield tighter control over a smaller steel industry to reduce price volatility and the industry's environmental footprint. But output of crude steel, most of which goes into China's construction, automotive and manufacturing sectors, is likely to reach a record 815 million metric tons, Li said. Still, the association said that the pace of growth will slow to 3 percent this year from 7.5 percent last year. Construction in smaller cities and towns will likely support growth in steel consumption, Li said.

Source: Wall Street Journal JAPAN SEES KEY ROLE FOR NUCLEAR POWER Japan will continue to rely on nuclear power as a central part of its energy policy under a draft government plan, effectively overturning a pledge by a previous administration to phase out all nuclear plants. The demand from Japan could bring economic opportunities to Mongolia as it creates tighter economic ties with Japan while taking steps to create an emerging uranium industry. Skepticism about nuclear power has been running high among people in Japan since the March 2011 accident at the Fukushima Daiichi plant. But Prime Minister Shinzo Abe has made it clear that he aims to restart reactors that are deemed to be safe under new regulations. Currently, none of Japan's 48 reactors are in operation. Seventeen are undergoing screening for possible restarts by the Nuclear Regulation Authority under stricter regulations introduced after Fukushima. The government's proposal, which outlines Japan's energy future in the next 20 years, says "nuclear power is an important baseload electricity source," meaning that nuclear plants would remain at the core of power production along with coal-fired and hydroelectric power plants. Abe has also described nuclear power as vital to keeping Japanese industry competitive. The sudden pullback from nuclear power since the Fukushima accident "has increased our dependence on fossil fuels," said Japanese energy official Toshikazu Okuya. "Money has flowed out of the country and electricity prices have risen." Before the accident, nuclear power represented approximately 30 percent of Japan's all power output and the government had planned to raise the proportion to 50 percent. The strategy was abandoned after Fukushima, and the government before Abe's had put forth plans to phase out nuclear plants. Public opinion polls have given Abe mixed signals on the issue. Critics of nuclear plants say they are too dangerous to operate in an earthquake-prone nation such as Japan. Renewable sources such as solar and wind represent just 2 percent to 3 percent of Japan's power output, excluding electricity from conventional hydropower. While many solar power projects have begun recently, helped by government support, most experts say it will be years before solar can fill a significant chunk of Japan's power demand.

Source: Wall Street Journal MINERS NEED TO DESIGN PROJECTS WITH FINANCING IN MIND

The typical value creation chain in the establishment of any mining operation takes place in distinct phases, from exploration through scoping, pre-feasibility, and definitive feasibility studies, to eventual permitting and financing. Historically, the financing process for mines involved taking the capital expenditure required by the feasibility study, comparing that to the capital already available, and then raising equity to cover the difference. Unfortunately the dramatic decline in the market demand for junior mining equity raisings means that this path to production and financing is no longer possible. Junior mining has borne the brunt of a worldwide mining decline with equity raised for junior mining on the three major mining markets (Britain, Canada and Australia) declining from more than USD 14 billion in 2011 to less than USD 4 billion in 2013. For those shareholders still invested in these companies, this is clearly an uncomfortable situation, which is why most now want to know that there is a clear path to production for these projects. Unfortunately, this path to production is difficult to show if you with large funding gaps. For Nedbank Capital, the solution is a fundamental change to the mine development model: financing work should be undertaken in parallel with the definitive feasibility study, rather than after it. For many junior miners, this is a significant and probably difficult, shift in mindset as it means they actually need to focus less on showing maximum net present value or internal rate of return, and instead prioritize a project design that demonstrates the best possible ability to raise funding while also mitigating project risk. In addition to increasing the potential to secure funding, designing projects with financing in mind can also raise the possibility of securing development finance institution support, and possibly piquing the interest of mezzanine funders, subordinated debt providers, or convertible debt providers. In so doing, mine developers are able to demonstrate a clear path to production for their project, which not only puts the minds of existing equity investors at ease, but also makes accessing the last amount of equity required to fill the funding gap that much easier. The author Paul Miller is an Investment Banker for Mining & Metals at Nedbank Capital.

Source: Mineweb POLITICS MONGOLIA ECONOMIC FORUM TO BE HELD 24-25 MARCH The annual Mongolia Economic Forum is scheduled for 24 and 25 March at the Government Palace with the slogan ―Smart State Policy.‖ This year's agenda will focus on reforming the business environment and the issues standing in the way of sustainable development. It will also feature an overview of the scenarios introduced at the Davos World Economic Forum earlier this year, where guests will discuss the issue brought up by those scenarios. Last year's forum had discussions on a range of issues, including budget reform, the environment and the development of a green economy, reforms to state registration, reforms to the stock market, competitiveness, and reforms of the business environment.

Source: News.mn MONGOLIA PRESENTS ITS LLDC RESEARCH CENTER Mongolia on 25 February presented its mid-term implementation report for the establishment of its Land Locked Development Countries research center. More than 30 organizations participated at the meeting. Mongolia has partnered with the U.N. Development Program (UNDP) to help finance the research center. The Mongolian government has paid the initial financing of USD 330,000 for the commencement of international research.

Source: Unuudur UK VISA APPLICATION CENTER CHANGES LOCATION The British visa application center in Ulaanbaatar will move to new premises, and customers will be required to pay an additional fee for services. The visa centre will move to the first floor of the DHL Building on Peace Avenue in the Sukhbaatar District. The move follows a global review and restructure of British Visas and

Immigration services to increase the number of visa application points and improve services globally, through commercial partner contracts. The new visa office will be run by UK Visas and Immigration‘s commercial partner, VFS Global, who already successfully operate British visa application centers in most countries across Asia Pacific. The change will see extended operating hours and a variety of value added services such as translation, photocopying and a courier service. The services fee for the visa application center will be EUR 59 (USD 100). The fee, which is so the office can meet its new global model of charging in low volume locations around the world, will be in addition to the visa fee and will be charged at the point of booking the appointment and will cover the cost of providing the application submission facilities in Mongolia. The center will be open from 9 a.m. to 3 p.m. Monday to Friday, offering increased availability over the current service.

Source: Gov.uk UB BOOSTS COLLABORATION WITH CUBA Ulaanbaatar's mayor met with a political authority from Havana, Cuba last week in an official visit where they pledged to boost municipal ties. Ulaanbaatar Mayor Erdene Bat-Uul received Omar Marrero, the charge d' affairs for the Republic of Cuba in Mongolia 13 February, where Marrero expressed willingness to extend official relations between the cities' state administrative agencies. ―Good relations between the two cities play an important role in boosting the bilateral relations between Mongolia and Cuba,‖ said Bat-Uul. ―There are opportunities to boost partnerships in fields such as tourism, agriculture and health.‖ During the meet Bat-Uul accepted the invitation of Marrero to visit Havana.

Source: News.mn BCM THROWS ITS SUPPORT BEHIND MINING POLICY The Business Council of Mongolia (BCM) voiced its support for Mongolia‘s Mining Policy passed this month by parliament, with its Executive Director in an interview saying his hope was Parliament would stand by its commitment to draft its mid-term mining legislation in line with the terms outlined by the Policy. ―BCM‘s Chairman, B. Byambasaikhan, has already delivered some comments to the Minister of Mining and there could be more,‖ said BCM Executive Director Jim Dwyer, ―but our purpose (for today‘s open discussion session) was to just have the press be aware that we support this Minerals Policy. The Policy document and the amendments to the Minerals Law have to be consistent.‖ ―We think that it is very important that the current Minerals Law should be amended properly,‖ he said, later adding, ―We want it to be friendly towards foreign investors.‖

Source: Mongolian Economy FORMER TAX OFFICIALS SENTENCED TO 8 YEARS The Bayanzurkh District Court sentenced the former director of the General Department of Taxation Ch. Gansukh to 8 years in prison for a conviction on corruption. The court hearing the cases of 13 arrested individuals related to the cases of corruption over five days: Gansukh and B. Batsukh were sentenced to 8 years. Gansukh‘s sibling, Ch. Davaasuren received 3 years of prison. A case into Gansukh's son, G. Ganzul is still under investigation.

Source: Udriin Sonin EVIDENCE SHOWS FORMER JUST GROUP HEAD MAY HAVE STOLEN FROM SAVINGS BANK New evidence has shown that the former chief executive of the now-dissolved Just Group may have stolen MNT 476.5 million from Khadgalamj Bank, according to an unnamed source at the General Prosecutor's Office. Former Just Group head Sh. Batkhuu and a group of bank officials allegedly opened a number of accounts at the bank that were registered under the name of employees. Afterwards, they

made bank transfers where the names of the recipients and the amounts transferred were deleted. The bank, which is also known as Savings Bank, was absorbed by the state-owned Torrin Bank (State Bank) last August.

Source: Unuudur BORDER POINT ARREST MADE IN ATTEMPT TO SMUGGLE ANTIQUE ITEMS Authorities arrested an individual at the Zamin-Uud border check-point under the suspicion she was smuggling historically and culturally valued antiques and religious items. Investigators have found that a Chinese national was behind the smuggling attempt by a Mongolian woman attempting to smuggle historical goods across the border to China. The Border Intelligence Division staff stopped her while she was attempting to smuggle items such as religious idols, a horn, a bell, an oil lamp, a religious musical instrument used in Buddhist ceremonies, and a bronze-age knife. The antique dealers allegedly behind the crime are believed to sell the goods to antiques shops in Erlian, the border city in China from where almost 80 percent of the goods imported to Mongolia originate. The value and price of the antique items are unknown, said the customs officials. According to Borders Intelligence Division, antique smuggling has become more organized. The antiques will be a matter for discussion by the agency's board on whether they need to be appraised and delivered to museums.

Source: News.mn

ANNOUNCEMENTS MONGOLIA ECONOMIC FORUM 2014, ULAANBAATAR, MARCH 24-25 The 5th annual Mongolia Economic Forum will be held on 24 and 25 March at the State Palace in Ulaanbaatar. During this two day forum participants will discuss topics related to the future of Mongolia and many more social and economical hot topics. The World Economic Forum project team will also present The Scenarios for Mongolia during the meeting. BCM members will receive an exclusive 10 percent discount. For enquiries regarding participation and press, please call 976-11-321051 or email info@meforum.mn or visit www.meforum.mn. Please register at http://meforum.mn/registration/. Registration will be closed at 5 pm on 21 March. __________________________________________________________ MONGOLIA INVESTMENT SUMMIT, LONDON, 29 APRIL-2 MAY The second annual Mongolia Investment Summit in London will be 29 April to 2 May. An additional post-summit workshop will be held, giving participants 4 whole days of 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. All 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 cs@resourcefulevents.com __________________________________________________________ PPP HANDBOOK FOR PUBLIC AND PRIVATE STAKEHOLDERS LAUNCHED Mongolia‘s Ministry of Economic Development launched the PPP manual on 19 February 2014. Prepared with ADB support, the manual guides public and private stakeholders in the preparation of PPPs. ADB Principal PPP Specialist, Craig Sugden, stressed that Mongolian PPP environment has three strengths now: the Concession Law, the PPP implementing unit, and the handbook. In addition, the first in a series of Public Private Partnership Stakeholders Consultative Meetings to be organized quarterly by MOED was held on 21 Feb in Best Western Tuushin Hotel. Contact Innovation and PPP Department, MOED, Tel: 264726 for the manual.

ADB has supported Mongolia‘s PPP work since 2009 and was appointed as the mandated advisor to the PPP for Combined Heat and Power Plant 5. ______________________________________________________________________ “MINER AND SUPPLIER-2014” TO BE HELD FOR 4TH YEAR, 13-14 MARCH 2014, CHINGGIS KHAAN HOTEL BCM members will have 10% discount to register for the event. To get the discount code, please contact saruul@bcmongolia.org. It is single and largest event which is going to be held in the sector of Mongolian mining supply. Executive officers, supply managers, financial directors and engineers have great expectations for this event which influences goods and service research that is broadly familiar within the sector. It will be organized under the slogan ―LET‘S MOVE TO THE DEVELOPMENT NEW STAGE!‖ where mining companies will share their experiences and introduce advanced techniques, technology and management. Upon your participation at our meeting and exhibitions, you will be provided with the chance to share your experiences, conclude your achievement and successes, introduce advanced techniques, technology and management, determine your resources and chances, properly adjust your supply and establish relationship with new customers. For more information please contact naranbat@infomine.mn or 70116009. ______________________________________________________________________ BCM MEMBERS RECEIVE 15% DISCOUNT FOR OIL AND OIL SHALE MONGOLIA 2014, 9-10 APRIL The Oil and Oil Shale Mongolia 2014 international investment conference, hosted by the Petroleum Authority of Mongolia, will be held in Ulaanbaatar from 9 to 10 April 2014. 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 info@oilmongolia.com 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 MEETINGS The BCM Tax Working Group and the National Council of Private Sector Support (NCPSS) jointly hosted a meeting Wednesday, February 19, with 22 members attending. Co-chair Onchinsuren D., Deloitte Onch, and Dr. Khashchuluun, Executive Director of NCPSS, moderated the session. Participants: BCM`s Tax WG members and Baigalmaa Gankhuu, Narankhuu Tumurchudur - Silk Road Foundation, Bat-Oyun Sanj - Bodi Financial Advisory Services, Bolormaa Khalzan, Tsolmon Bereeter-Austraining International, Batgerel and Dr. Uyanga - Newcom Group, Bat B. and Kh. Tsevelmaa - National University of Mongolia. Meeting discussion was on the following topics: 1.Taxation impact research - Dr. Khashchuluun, Executive Director, NCPSS

2. Issues and concerns over VAT and BCM action plan Please see following link to Dr. Khashchuluun`s presentation in Mongolian - http://bcmongolia.org/images/files/mn/Iltgeluud/Khashchuluun.pdf. English translation - "Change of the package of Taxation Laws private sector" posted to BCM English website. BCM`s Tax Working Group is planning to request an "open discussion" of proposed tax law changes to the Government in May. If you have any comments on the proposed tax laws, please send to erka@bcmongolia.org ________________________________________________________________________________ BCM's members and BCM Legislative Working Group met on Thursday February 20, with 31 members attending. Participation: Bayar B. - ELC, co-chair of BCM`s Legislative Working Group; Ser-Od I., Vice Director, BCM: Michael D. Richmond – U.S. Embassy; Randolph S. Koppa, President, TDB and Vice Chairman of BCM. Media representatives included: Bloomberg TV, Mongolian Economy, Morning News, and Mongolian Mining Journal. Jim Dwyer – Executive Director, BCM, moderated the session. The Meeting was an open discussion of the recently enacted “State Minerals Policy". BCM officials emphasized BCM‟s support of the Government‟s minerals policy. Please contact erka@bcmongolia.org

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. The presentation below is from the February 24 BCM monthly meeting: Nick Cousyn, COO, BD Sec

• О. Зоригт, Гүйцэтгэх захирал, Майн Инфо "Майн Инфо ХХК-ний товч танилцуулга", МБЗ-ийн 2 сарын 24-ний сарын хурал. Dr. Khashchuluun's, 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 presentation below 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‘ CHANGE OF THE PACKAGE OF TAXATION LAWS: PRIVATE SECTOR NATIONAL COUNCIL FOR PRIVATE SECTOR SUPPORT, CH. KHASHCHULUUN /EXECUTIVE DIRECTOR/ at the BCM`s Tax working group's meeting Feb 19, 2014 Nick Cousyn, Chief Operating Officer, BDSec – "Economic and Capital Markets Update" 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 were made at the January 27 BCM monthly meeting: - "The year 2014 starts with new IPO on the Mongolian Stock Exchange", Richard Kobayashi, CEO, Standard Investment LLC - "IMA Consultancy Services for Investors and Account Manager's Role" D. Irmuun, Director of Division for Promotion and Consultancy Services, Invest Mongolia Agency The ―Mongolia Reports‖ section includes the following: -―Selected Macroeconomic Indicators, December 18, 2013‖ by International Monetary Fund; -―Ministry of Finance of Mongolia, 2013 Government Debt Auctions‖ by Bank of Mongolia; -―Doing Business in Mongolia: 2013 Country Commercial Guide for U.S. Companies‖ by U.S. Embassy; -―Real Estate Report 2013‖ by Mongolian Properties. The following have been added to ―Interview‖ section: • Jim Dwyer, Executive Director, BCM: ―State Minerals Policy‖; • D. Bayasgalan, Director of Golomt Bank: ―Golomt has no problem‖; Interviews from the Oxford Business Group, Mongolia Reports 2013 book: • B. Byambasaikhan, Chairman, Business Council of Mongolia: ―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‖;

• B. Chuluunbaatar, President and CEO of Monnis Group: ―Climbing the ranks‖; • Cameron McRae, President and CEO, Oyu Tolgoi: ―Sitting on a copper mine‖. BCM's English website includes the ―Mongolia Business News‖ section: • BCM comments on draft Amendments to the Minerals Law made to Mr. D.Gankhuyag, the Minister of Mining, February, 2014; • BCM Open Letter to Parliament and Government is available for download. BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business News‖ before they are all put together each week for Friday's weekly NewsWire. The ―Photo Gallery‖ contains photos from the 6th Anniversary BCM Renewal dinner on November 11, 2013. BCM Football Cup 2013 pictures are posted to the website - http://bcmongolia.org/en/photos/350-en/album?albumid=200 The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home page for a consolidated account of the week‘s events.

SOCIAL NETWORK WITH BCM BCM LAUNCHES NEW LINKED-IN COMPANY PAGE The Business Council of Mongolia has launched a new company page on the social networking website LinkedIn to network its members and followers including small-medium enterprises (SMEs). BCM alerts followers to the latest news and information critical to their businesses. Members‘ businesses are be promoted. Additionally, BCM delivers monthly infographics on the latest data as well as videos and other media content as they come. The bulk of the content is in Mongolian language to better cater to BCM's Mongolian-speaking audience and members. The following link can direct you to the new BCM's Linked-in page. http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks. Keep up to date on the latest business deals in Mongolia and how the climate for investment is improving each day with BCM. Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the latest announcements and comment on events carried in the NewsWire with the community. Hear breaking news and announcements as they happen when you follow BCM on Twitter at https://twitter.com/bcmongolia BCM now has 4,006 fans on our Facebook fans page, 1,608 connections on LinkedIn network, and 926 followers on Twitter. Of course for news information, interviews, event photos, and announcements regarding our organization, visit the official BCM website at http://bcmongolia.org/en/ ________________________________________________ BCM IN THE UNIVERSITY CLASSROOM NEWS Business Council of Mongolia (BCM) has been progressing with its BCM in the University Classroom series since March 2012. Led by BCM‘s Education Working Group, the program provides lectures at universities to help inspire students and give them direction for their future careers. The series has grown to include an average of 10 lectures per academic year. Now 1,213 students and teachers have participated with BCM in the University Classroom Project.

Most recently Ser-Od Ichinkhorloo, Vice Director of Business Council of Mongolia, gave a presentation entitled “Mongolian Investment - past, present, prospect” to an audience of more than 30 teachers and 50 students at Mongolian National University, on 26 February 2014. Mr. Ser-Od presented a foreign direct investment report and how sustainable development was built in Mongolia. Lastly he introduced his 5 suggestions for sustainable development. Teachers were most interested in the Government‘s policy in the minerals sector. Next BCM in the University Classroom series will be held on 18 March at the Institute of Finance & Economics. Ms. Zaya B., consultant at World Bank, has been invited to speak. Presentation title: ―Insurance Market in Mongolia‖.

ECONOMIC INDICATORS

SUPERMARKET PRICE COMPARISON – FEBRUARY 2014

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] January 31, 2014 *12.3% [source: NSOM] *Year-over-year (y-o-y), nationwide Note: 12.2% y-o-y, Ulaanbaatar city, January 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 – 28 FEBRUARY 2014 Currency Name Currency Rate US dollar USD 1,787.59 Euro EUR 2,006.39 Japanese yen JPY 17.43 British pound GBP 2,975.09 Hong Kong dollar HKD 230.36 Chinese Yuan CNY 291.68 Russian Ruble RUB 49.59 South Korean won KRW 1.67 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. To stop receiving these emails: unsubscribelink