BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 416 – February 26, 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:

CHPP No. 4 to receive USD37.5 mn for efficiency renovations;

Meat producer makes first shipment to China;

Trade finance program helps Mongolian firm improve food storage;

Frontier Capital drops lottery venture in Mongolia;

Ard Credit plans on becoming first NBFI to list on MSE;

Haranga raises less than a quarter of its fundraising goal;

Darkhan Metallurgical honored for railway;

S. Korea urges hastened development for diagnosis and treatment facility;

State hospital expands cardiac treatment capabilities;

Aero Mongolia to launch temporary flight to Khuvsgul in March;

Mongolian Airlines turns profit amid economic stress;

SouthGobi Resources appoints non-executive director;

Mongolian rock keeps its roots in “Live from UB” at film festival;

Bogd Bank establishes correspondent bank relations with Mizuho Bank;

Deutsche Börse lines up swoop for LSE.

Economy:

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

MNT20 trillion (USD9.8 bn) collected from tax amnesty;

Mongolia to seek international aid as herds perish;

Mongolia seeks USD1.3 bn loan from China to complete coal railway;

Burgastai becomes thruway point for meat exports;

Animal husbandry assistance program launches;

Social welfare goes online;

Customs and tax IT center established;

Mongolia's home-owning dream could become a nightmare;

China provides USD1 mn to build molecular biology lab;

Scientists study curing power of camel milk for diabetes;

UB orders repairs to water treatment facility;

Ger-district households to be relocated;

Students build ice-climbing walls in Terelj;

Rent-controlled apartments to become available in UB;

Wool, hides for sale in UB bazaar;

BHP expects copper market to remain in surplus until end of decade;

World steel output drops after 5-year rise.

Politics:

Parliament finally sees quorum for special session;

Miners to receive compensation for revoked licenses, says minister;

Constitutional Court judge resigns;

New faction emerges within Democrats' ranks;

MPP to weigh in on performance of ruling Democrats;

Political parties seeking consolidation before election;

EU offers support to Mongolia in hosting ASEM Summit;

Civil aviation agreements signed;

Mongolia opens intergovernmental relations with Indonesia;

Alleged IAAC recommendation says Enkhbayar prohibited from taking office;

NGOs demand that Mongolia cancel Centerra's remaining licenses at Noyon Uul;

Police seize unverified liquor, tobacco products in Khuvsgul;

Selenge governor bans winter horse races.

BCM Updates:

Announcements;

New Mongolian Laws;

Knowledge Sharing Sessions;

Advocacy Notes;

Working Groups News

BCM in the University Classroom Series;

Websites Update - Presentations, Mongolia Reports, Interviews;

Social Networks.

Economic Indicators:

Churchill’s Supermarket Price Comparison

Inflation;

Central Bank Policy Rate;

Currency Rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank Invest Mongolia Agency

Mongolian Business Database

BCM MEETING RECAP

The BCM meeting on 22 February was held in the Crystal conference room in Blue Sky Tower and

Hotel was attended by 150 members and invited guests with Randolph Koppa, BCM’s vice chairman,

and BCM's executive director, Jim Dwyer, as the meeting's hosts.

The evening's networking reception was sponsored by the “Women’s Leadership Program” of the

Australia Awards Mongolia, and catered by Churchill's.

BCM's newest member is Horizon Partners LLC, a local investment advisory, fund-raising and project

development firm.

The business meeting agenda was as follows:

D. Uuriintuya, chairperson of the Mineral Resources Authority, spoke first to introduce the

government's plans in this year's Prospectors & Developers Association of Canada (PDAC) conference

at the Metro Toronto Convention Center from 6 to 9 March. "I'm pleased to say that the government

of Mongolia has placed a great deal of development on this event," said Uuriintuya, who is heading

a working group to organize Mongolia's part in the event. "This time around, we're scaling up

Mongolia's visibility," she said.

That includes the country's exhibit and a separate forum focused on ‘Mining in Mongolia’ to

demonstrate the progress Mongolia has made in its legal sector and the opportunities available to

investors. "We will also introduce the current situation for exploration licenses," she said, adding

that at least 10 licensed areas for exploration would be tendered at auction there.

L. Enkhtuvshin, the head of human resources development and partnership manager for the

Australia Awards Mongolia, presented next on the ‘Women's Leadership Program’ that has sent

women to Australia to study at universities. "After completing their studies, individuals come back

to Mongolia," she said. "So far over 400 graduates returned from Australia."

"Alumni also act as a bridge between Australia and Mongolia contributing to community

development and beyond."

Further discussing Australia's relationship with Mongolia was Brendan Coyne, Australia's consul

general to Mongolia and trade commissioner for Austrade. Reminding the audience of the Australian

Embassy that opened this year, he spoke of the recently entered first ambassador and the new

team they had built to serve the new mission here. Although most will think of ties to the mining

sector, Australia should also be seen as a strong partner for education he said. He also hoped that

the embassy could help foster the growth of small business in Mongolia and create links with

Australian counterparts. "SME's are where we can add the most value," he said.

Jennifer Bielman, the country director for MercyCorps Mongolia, gave an update on her agency's

efforts to build up the country's resilience and safeguards against disruptions such as the natural

disaster known as the "dzud"--when temperatures drop so low and snowfall is so heavy that millions

of livestock die. Their Resilient Communities project aims to identify challenges faced by

pastoralist families and find solutions to some of those issues. To find those solutions, Bielman

hopes she can bring together representatives of international groups, the government, academics

and the private sector. "We think if we get a lot of smart people in the room, build on our

experiences at MercyCorps and larger development community of Mongolia, we can figure out

systemic changes."

And she's already had some success! Bielman said that her participation with the Business Council of

Mongolia had already fostered some relationships that could put MercyCorps on the right path

toward sustainability for traditional herders.

The director of the markets development department at the Financial Regulatory Commission, A.

Batpurev , next reviewed with the audience the recent achievements in the financial sector and the

Mongolian Stock Exchange.

In Mongolia, businesses must manage high inflation, foreign-exchange instability, slow growth since

2012 and overall weak protections for investors. But that does not mean all is woe for the market

economy here. The stock exchange has seen tremendous growth thanks to the initial and secondary

trade of treasury bills. The Financial Regulatory Committee has also installed numerous regulatory

changes, including custodial activities.

This year sees the beginning of the government efforts to privatize eight state-owned assets,

Batpurev said, including power plants, coal mines and the exchange itself. For the longer term,

Batpurev said he has a vision of Ulaanbaatar as a special financial zone where investors can receive

special protections. "I don't think it's a dream away," he said.

The last presentation of the evening came from N. Munkhnasan, the general director of

Monpolymet, to introduce her company. Since 1992, Monpolymet has been active in gold

production, manufacturing and construction. Most recently, however, it has a seven-year plan to

build a dry-processing cement plant. The company has received a USD250 million loan from the

European Bank for Reconstruction and Development to build the plant, which will have high

efficiency for water consumption--recycling 90 percent--and using the heat generated by the

processing to power the plant.

"Our ability is to manage large-scale projects, and we build plants in record time," said

Munkhnasan.

BUSINESS

CHPP NO. 4 TO RECEIVE USD37.5 MN FOR EFFICIENCY RENOVATIONS

The Japan International Cooperation Agency aims to cut greenhouse gas emissions with a JPY4.2

billion (USD37.5 million) loan to renovate Combined Heat and Power Plant No. 4. Japan's Yokogawa

signed a contract for the project on 18 February, while a consortium that includes MHPS and MCS

International have been hired to install equipment and employ renovations.

The project will see an 18 percent increase in energy production while cutting coal consumption by

8 percent after its completion in 2019.

Source: Montsame

MEAT PRODUCER MAKES FIRST SHIPMENT TO CHINA

Uvs Aimag's Mon-Tuva LLC launched its first shipment of mutton to China on 19 February after

Chinese inspectors lifted a ban on meats from Mongolia's western provinces put in place after an

outbreak of hoof-and-mouth disease. Mongolia continues to manage challenges related to health

standards as it ramps up its meat exports for greater earnings from traditional agriculture. The

meat producer shipped 16 tons of mutton through the Burgastai border checkpoint in Gobi-Altai

Aimag.

China has given special permission for the import of meat from Zavkhan Foods, Khuvsgul Makh

Market and Mon-Tuva.

Source: Montsame

TRADE FINANCE PROGRAM HELPS MONGOLIAN FIRM IMPROVE FOOD STORAGE

The diversified Mongolian company Delta Holding LLC has recently built a “state-of-the-art” storage

facility outside Ulaanbaatar that will help mitigate financial threats from natural disaster. Mongolia

has few good facilities that can store foodstuffs for long periods of time, meaning vegetables must

be imported to meet local demand once the autumn harvest season is over. One of the first of its

kind in the country, the warehouse has a capacity of 2,200 tons with 11 cold storage rooms—6 for

vegetables and 5 for processed meat. Delta aims to buy vegetables from farmers in the fall and

store them for some six months for sale in spring.

Delta built its new facilities with the help of ADB’s Trade Finance Program (TFP) with a two-year

guarantee for USD920,000 from Trade and Development Bank of Mongolia. Over time, this will boost

rural income while prices of locally raised out-of-season meat and vegetables will be lower and

more stable for consumers.

Source: Asian Development Bank

FRONTIER CAPITAL DROPS LOTTERY VENTURE IN MONGOLIA

Australian firm Frontier Capital Group Ltd. has dropped its lottery and possible casino venture in

Mongolia. Frontier said it had received a notice from the vendor [Monvest Group Pte. Ltd.] saying

that a number of conditions will not be satisfied within the period provided in the agreement. The

deal would have given Frontier the right to establish the first casino in Mongolia, once the country

allowed it. “The acquisition of the Mongolian National Lottery license would have complemented

the recent move by the Company to Gaming and Hospitality.” said Frontier director Ram

Navaratnam.

The proposed casino legislation was submitted to the Mongolian parliament for review in early 2015

but is still under consideration. For now, Frontier said that its board of directors will review the

company’s investment portfolio in order to align it with the direction of gaming and hospitality.

Source: Gambling News

ARD CREDIT PLANS ON BECOMING FIRST NBFI TO LIST ON MSE

Ard Credit is setting the wheels in motion to issue Mongolian Stock Exchange's second initial public

offering of the year and the first non-bank financial institution (NBFI) to list on the local bourse.

The lender, which is a subsidiary of Ard Financial, plans to begin the process following a

consultation with shareholders.

Source: Unuudur

HARANGA RAISES LESS THAN A QUARTER OF ITS FUNDRAISING GOAL

Haranga Resources Ltd. closed a partially underwritten fundraising rights issue on 19 February that

fell 88.5 percent short of its goal. Haranga raised USD156,956 from the sale of 39.24 million shares

at prices of USD0.004 each, it said in a 24 February statement. It received valid acceptances for

39.24 million new shares with a shortfall of 302.6 million shares.

Source Haranga Resources Ltd.

DARKHAN METALLURGICAL HONORED FOR RAILWAY

MSE-listed Darkhan Metallurgical Plant JSC has won the State Gereeg award for its success in

building a railway link between its mine and processing facility. The 40-kilometer long railway route

that finished construction last December connects the Tumurtei mine with a concentrator in

Khangait Soum. With the work of engineering firm QSC LLC, the railway can move 8 million tons of

freight a year.

Also included in the work were Mongolian Railway Corp. LLC, Peak Development LLC, Kotol

Keramzit LLC, Maximal LLC and Ulaanbaatar Railway (UTZ).

Source: Udriin Sonin

S. KOREA URGES HASTENED DEVELOPMENT FOR DIAGNOSIS AND TREATMENT FACILITY

The national diagnostics and treatment center will start being built by next month, said the

secretary of the health ministry. South Korean officials during a visit on 23 February urged

Mongolia's Health Ministry to hasten development on the project, which has been under

development since 2012 with financing from South Korea.

Source: Unuudur

STATE HOSPITAL EXPANDS CARDIAC TREATMENT CAPABILITIES

State Hospital No. 3 has expanded its cardiac treatment capabilities with new equipment purchased

with a MNT50 million loan from St. Jude Medical Inc. in the United States. The equipment

purchased for treating heart arrhythmia is the first of its kind of Mongolia, and will help patients

receive treatment in UB rather than having to travel abroad.

State insurance will cover 75 percent of the cost for heart arrhythmia treatment, said hospital

officials.

Source: Udriin Sonin

AERO MONGOLIA TO LAUNCH TEMPORARY FLIGHT TO KHUVSGUL IN MARCH

Aero Mongolia will charter a special flight to Khuvsgul Aimag for tourists heading to Khuvsgul Lake

for the Ice Festival to be held from 2 to 4 March. Services will continue through April in the

expectation of demand all through the month.

Source: Mongolia.GoGo.mn

MONGOLIAN AIRLINES TURNS PROFIT AMID ECONOMIC STRESS

Mongolian Airlines (MIAT) reported MNT2.5 billion in profit last year after a 14.7 percent increase in

passengers. Mongolia's flagship air carrier saw MNT241.3 billion in revenue last year from 461,450

passengers and 2.624 million kilograms of freight to Beijing, Seoul, Tokyo, Moscow, Berlin,

Frankfurt, Hong Kong and Hanbumbat. The number of flights grew 13.7 percent.

More than half of all expenses were affected by the depreciation of the tugrug.

Source: Montsame

SOUTHGOBI RESOURCES APPOINTS NON-EXECUTIVE DIRECTOR

SouthGobi Resources Ltd. has appointed Huiyi Wang as a non-executive director, effective 18

February. Wang, 28, is currently an investment associate in China Cinda (HK) Holdings Company

Ltd., the intermediate holding company of Novel Sunrise Investments Ltd., SouthGobi reported on

22 February. Novel is the largest shareholder of SouthGobi.

Source: SouthGobi Resources Ltd.

BOSTON HOLDS DEVELOPMENT FORUM FOR MONGOLIA

A forum to debate development solutions and overcoming economic challenges for Mongolia in

Boston, United State attracted some 80 guests, including figures from American academic

institutions. Speakers included Ricardo Hausmann, a professor at Harvard University, Courtney

Engelke, a representative of the Millennium Challenge Corporation, S. Javkhlanbaatar, head of the

Investment Authority of Mongolia, and Steve Saunders, president of the North America-Mongolia

Business Council.

Source: Montsame

MONGOLIAN ROCK KEEPS ITS ROOTS IN “LIVE FROM UB” AT FILM FESTIVAL

Kiss once sang “God gave rock n’roll to everyone,” and according to the director Lauren Knapp’s

documentary “Live from UB,” even the Mongolians received the gift. In a British premiere screening

to take place 24 February as part of the eighth edition of the Asia House Film Festival, her film

depicts a new generation of rock musicians in Ulaanbaatar, who are bridging the divide between

their local cultural identity and the globalized world they live in. Knapp, who came to Mongolia on

a visit from China in 2007, said, “The landscape and can-do-anything attitude in the countryside

gives it a Wild West feel. And the music is evocative of the ancient and vast land.”

Knapp returned in the winter of 2011 to immerse herself in the music scene and shoot the

documentary. The result is the best insight most of us will ever get into the rock scene in Mongolia.

Source: Blouin Art Info

BOGD BANK ESTABLISHES CORRESPONDENT BANK RELATIONS WITH MIZUHO BANK

Bogd Bank LLC has established correspondent bank relations with Mizuho Bank, a leading financial

institution with one of the largest customer bases in Japan, Mongolia's newest bank reported on 4

February. Bogd Bank has opened a correspondent account in Japanese yuan there and has begun

international payment services for customers.

Source: Bogd Bank

DEUTSCHE BÖRSE LINES UP SWOOP FOR LSE

Deutsche Börse is in advanced talks to take over the London Stock Exchange (LSE) Group in a

megadeal that would create a European champion presiding over many of the world’s leading

financial markets. The deal to take over the LSE involves a leading partner for the development of

the Mongolian Stock Exchange. The talks are likely to attract particularly intense scrutiny from

politicians, regulators and competitors as they come at a time of heated debate in Britain over

whether it should leave the European Union.

Given the intense consolidation of exchanges in recent years, global regulators will also probe the

companies over the dominant role they would have in trading and clearing derivatives. The boards

believe it would be “an industry-defining combination”, the LSE said in a statement. For Deutsche

Börse, the pre-eminent exchange operator in Europe, this is just the latest attempt to become a

more global force.

Source: Financial Times

SPONSORS

Oxford Business Group The New Media Group

Mongolian Economy Magazine

ECONOMY

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

The Bank of Mongolia on 25 February sold CNY40 million to central banks in currency auctions for

closing exchange rates of MNT311.85. Also that day, it accepted tugrug swaps with commercial

banks for an equivalent of USD3.5 million. It rejected U.S. dollar swaps totaling USD31 million.

The Bank of Mongolia on 24 February issued 1-week bills worth MNT137 billion at a weighted

interest rate of 12 percent. Also that day, the central bank received MNT500 million in bids for the

auction of two-year treasury bills with a face value of MNT5 million (compared with an original

value of MNT15 billion) that were sold at a discounted price with an average weighted yield of 15.5

percent. It received MNT33 billion in bids for 39-week bills with a face value of MNT 20 billion that

were sold at a discounted price and weighted average yield of 14.92 percent.

Source: Bank of Mongolia

MNT20 TRILLION (USD9.8 BN) COLLECTED FROM TAX AMNESTY

Mongolia has collected MNT20 trillion (USD9.8 bn) in back taxes during a period of tax amnesty that

launched last year. The Economic Transparency Law that expired on 20 February gave individuals

and companies the opportunity to make good on taxes owed from false or unclaimed tax reporting,

bringing in extra funds during a year of the slowest growth for the country since the delayed effects

from the world economic crisis in 2009.

The MNT20 billion is equal to 90 percent of Mongolia GDP. The Mongolian National Chamber of

Commerce and Industry, however, said it may be able to collect even more from the 40,000 civil

servants who were excluded from the tax amnesty if given the same opportunity.

Source: News.mn

MONGOLIA TO SEEK INTERNATIONAL AID AS HERDS PERISH

Mongolia has begun to ask for financial assistance from international groups to prevent escalation of

this year's dzud conditions. Currently, 70 percent of Mongolia's territory has snow cover, with 211

counties in 20 provinces receiving heavy-to-frequent snow fall. Herders hit hard by the economy are

running out of cash to buy animal feed, which the government has sent out in deliveries after

domestic production fell short to prevent price rises to some extent. Sparse vaccinations for animal

diseases amid the difficult weather conditions have also led to the spread of disease.

Source: News.mn

MONGOLIA SEEKS USD1.3 BN LOAN FROM CHINA TO COMPLETE COAL RAILWAY

Mongolia is seeking a USD1.3 billion loan from the Export-Import Bank of China to complete a

railway connecting its Tavan Tolgoi coal deposit with the Chinese border, a project that has stalled

because of lack of funds. Officials from Mongolian Railway SOSC are meeting in China for talks with

the bank to secure the loan, Idesh Ivshin, the company’s head of projects, said Monday in an

interview in Ulaanbaatar.

According to terms under discussion, the Export-Import Bank would appoint a Chinese contractor to

construct the railway, Idesh said. That would replace the existing agreement with South Korea’s

Samsung C&T, which has stalled over a debt of more than USD30 million that the railway says it

can’t pay due to lack of funds. The two sides are negotiating a settlement, according to Idesh.

Source: Bloomberg

BURGASTAI BECOMES THRUWAY POINT FOR MEAT EXPORTS

The Burgastai border point to China will be a key access point for companies exporting meat to

Mongolia's southern neighbor, said Foreign Minister L. Pursevsuren at a 23 February press

conference, as the country looks to ramp up income from its traditional agriculture production. The

Burgastai checkpoint will be operating every other month, during the even-numbered ones, in

accordance with an agreement with China from 2004. “Mongolia is bordered by 13 Chinese ports,”

said Purevsuren. “Burgastai is the nearest to the Chinese districts with the highest meat

consumption checkpoint. Prepared mutton, beef and goat meat will be exported through this

checkpoint from five western aimags.”

Purevsuren was in Burgastai to attend a ceremony for shipping 16 tons of mutton by Mon-Tuva LLC

from Uvs aimag.

Source: Montsame

ANIMAL HUSBANDRY ASSISTANCE PROGRAM LAUNCHES

Herders and farmers will have access to loans with 10 percent annual interest from a new

government subsidized lending program to assist traditional agriculture and the growing farming

industry. The Cabinet approved the lending initiative on 22 February, which will give herders funds

to vaccinate their animals, make necessary sanitary arrangements and prepare hay and animal

feed.

Also that day, the Cabinet Secretariat approved the Best-Herder Program, where pastoralists

nationally recognized for their skills in managing livestock, especially during difficult weather

conditions, will pass on their skins to the next generation. Over the next six years, in addition to

providing access to loans, officials from the Ministry of Food and Agriculture will introduce new

technology for herding and farming.

Source: Montsame, 2

SOCIAL WELFARE GOES ONLINE

Mongolia will begin delivering its social welfare services online, making it easier to collect for

house-bound elderly recipients. The system will verify individuals using digital signatures obtained

with a MNT5,000 a year subscription. Other agencies plan on utilizing similar verification devices,

including the Ministry of Transportation, General Social Insurance Authority and Tax Authority.

Companies will pay between MNT40,000 and MNT230,000 a year for the digital signatures.

Source: News.mn

CUSTOMS AND TAX IT CENTER ESTABLISHED

A database for collecting tax and customs registration will be rolled out to ease tax payments and

provide greater transparency. The Cabinet Secretary pushed forward the motion to develop the

system on 22 February, in addition to its approvals on how the database should be regulated.

Source: Montsame

MONGOLIA'S HOME-OWNING DREAM COULD BECOME A NIGHTMARE

Four months away from parliamentary elections, Mongolia's leaders are making some bold and

expensive promises to turn the Mongolian dream of home ownership into reality. Rather than

making the politicians exercise restraint during a time of economic strain, the country’s economic

problems have only encouraged the government to promise even more subsidies to enable

Mongolians to buy their own homes.

In 2013, the government began providing commercial banks with funds at 4.5 percent annual

interest. The banks then lent the money to homebuyers at 8 percent, with a 30 percent

downpayment. Since then, the number of mortgages has grown 58.5 percent, but with interest on

mortgages 4 percentage points below the 12 percent policy rate set by the central bank, most of

those who could afford to buy homes have already done so and many Mongolians still can’t afford

to. So, to reinvigorate the program, the government has guaranteed to cut upfront downpayments

by two-thirds to 10 percent. They also have plans to spend millions more a month to cut the annual

rate on the subsidized mortgages by 3 additional points to 5 percent by March.

Source: bneIntelliNews

CHINA PROVIDES USD1 MN TO BUILD MOLECULAR BIOLOGY LAB

At the opening ceremony present were L.Gantumur, minister for Education, Culture and Science,

Shin Hai Min, ambassador of China to Mongolia and some other officials. Researchers in Mongolia

will be able to launch new studies in the agriculture industry with a new lab opened this week,

which can be used to study genes as well as the effects from chemicals and herbs. The Chinese

government provided USD1 million for the lab, while the government contributed USD350,000,

allowing for the installation of modern equipment for analyzing genes, proteins and bacteria.

Source: Udriin Sonin

SCIENTISTS STUDY CURING POWER OF CAMEL MILK FOR DIABETES

They say milk builds strong bones, but how about curing diabetes? The extreme resilience in camels

that allows them to survive periods of thirst and hunger as well as blistering cold and intense heat

in Mongolia's Gobi desert may be a key to unlocking a treatment for diabetes, say scientists from

Mongolia and the Chinese Inner Mongolian Autonomous Region. Camel’s blood has high levels of

glucose and low insulin, or the signs of the onset of diabetes. According to the researchers, drinking

camel's milk may allow people to share this ability. “According to our research, people with a 13 or

more blood sugar level have gotten better consuming camel’s milk. Some people have been cured

of diabetes.”

Source: Montsame

UB ORDERS REPAIRS TO WATER TREATMENT FACILITY

Ulaanbaatar's Mayor has ordered city officials to come up with MNT81 billion to repair the city

Water Treatment Facility. Ulaanbaatar City Manager B. Badral has received orders for leading the

repairs to the Central Water Treatment Facility.

Source: Zuunii Medee

GER-DISTRICT HOUSEHOLDS TO BE RELOCATED

Ulaanbaatar will soon [Source does not specify any date] launch the first phase of its “Relocation

Plan” to move ger-district residents living in areas where the city plans to build infrastructure.

Roads are planned for alongside the Selbe River and the Bayankhushuu central area.

Source: Mongolia.GoGo.mn

STUDENTS BUILD ICE-CLIMBING WALLS IN TERELJ

Students from Mongolian National University have put ice-climbing walls in Terelj that will help

train athletes to compete in the PyeongChang 2018 Olympics. The 12-meter-high wall is the second

of three it plans to put up, said student K. Bakhadbek, after they built the first 9-meter wall last

year. “Most of our mountain alpiners climb Bogd Mountain through the Bogd Khaan base,”said

Bakhadbek. “Because of that, we erected there a 14-meter high ice wall with three routes for

practice competition.”

Source: Unuudur

RENT-CONTROLLED APARTMENTS TO BECOME AVAILABLE IN UB

The government is offering low-rent housing for between MNT200,000 and MNT280,000 in

Ulaanbaatar for some adults as it aims to move residents out of the ger districts into apartments for

better urban planning and to cut down on air pollution. The rentals are available to anyone over the

age of 21 with a fixed income, paying social insurance and living in Ulaanbaatar for more than five

years. Excluded from the program is anyone who already owns an apartment.

Source: News.mn

WOOL, HIDES FOR SALE IN UB BAZAAR

The Emeelt Raw Materials Bazaar has launched the sale of processed and unprocessed cashmere, a

key agriculture export made from goat fur. Cashmere was selling for between MNT48,000 and

MNT55,000 a kilogram, depending on the color and thickness of the fibers. Whole sheep skins sold

for MNT1,000 and 2,500 a kilogram, MNT16,000 for goat, MNT8,500 per kilogram of horse hair and

MNT12,000 for horse tail. Camel wool varied depending on the sex of the animal, with MNT7,500

per kilogram for male's wool and MNT5,500 for female's.

Also for sale were cowhide for between MNT40,000 and MNT60,000 a kilogram, horsehide for MNT

35,000, yak hide for MNT25,000 to 60,000 and camel hide for MNT18,000 to MNT22,000.

Source: News.mn

BHP EXPECTS COPPER MARKET TO REMAIN IN SURPLUS UNTIL END OF DECADE

Top global miner BHP Billiton expects the copper market to remain in surplus until the end of the

decade, Chief Financial Officer Peter Beaven said on Tuesday. Beaven told a briefing in London

that the copper market was not expected to move into balance until about 2019 due to a surge of

investment which has created higher supply. BHP was also cautious about iron-ore prices due to

production cuts by steelmakers and new mines launching this year, boosting supplies.

Source: Mining Weekly

WORLD STEEL OUTPUT DROPS AFTER 5-YEAR RISE

Reflecting a global economic slowdown, worldwide steel production dropped 2.8 percent last year

to 1.62 billion tons, just under half of the total produced by China, the World Steel Association

(WSA) said Monday. Global steel production slipped back after five years of constant rises, with

China, easily the world's largest consumer and producer, last year producing 803.8 million metric

tons (Mt), down 2.3 percent from 2014. Its actual share of world output, however, increased by 0.2

percentage points to 49.5 percent

The rise of China's steel market share comes as competitors accuse Chinese steel firms of dumping

their production onto world markets at prices below cost. “Crude steel production decreased in all

regions except Oceania in 2015,” the WSA said following the first overall annual drop since 2009,

when overall output stood at 1.24 billion tons. Asia overall saw production fall 2.3 percent to 1.11

billion tons.

Source: Industry Week

POLITICS

PARLIAMENT FINALLY SEES QUORUM FOR SPECIAL SESSION

Parliament finally convened on 19 February, but for one day only after multiple delays from poor

attendance. A boycott of the meetings from the Mongolian People's Party (MPP), calling the session

unnecessary, has caused some disruption in the months before parliamentary elections to be held

on 29 June. A special session called to resolve issues surrounding the dismissals of court officials

and lingering legislation was put on hold after failing to reach a quorum. In addition to the absence

of the MPP, Parliament Speaker Zandaakhuu Enkhbold has failed to get enough members to show

from his own government.

Parliament needs a quorum of at least 50 percent attendance, or 39 members, to commence with

debates and voting.

Source: News.mn

MINERS TO RECEIVE COMPENSATION FOR REVOKED LICENSES, SAYS MINISTER

The Mining Ministry has promised to compensate license holders for exploration and mining affected

by a decision to put a slew of land in the Gobi desert under state protection. The Tost and

Tosonbumba Mountains, located in Gurvantes Soum, Umnugobi Aimag have been taken as state

reserves by the government. Mining Minister R. Jigjid said at a 28 January press conference that

compensation would be made for any licenses issued for the area between 2003 and 2009.

Source: Montsame

CONSTITUTIONAL COURT JUDGE RESIGNS

Judge N. Jantsan will lead the Constitutional Court following the resignation of J. Amarsanaa that

resulted from fallout occurring from a decision that suspended the state-backed 8 percent mortgage

program. Parliament voted to dismiss the judge at a special session held last week during a

legislative break.

Jantsan is currently the court's longest-serving member. The next step is for a ninth member of the

court to be chosen and presented to the Supreme Court.

Source: Unuudur, News.mn

NEW FACTION EMERGES WITHIN DEMOCRATS' RANKS

Members of the Democratic Party are following L. Bold to establish yet another faction within the

highly fragmented party whose ability to lead the country has been somewhat derailed by intra-

party politics. Bold has joined forces with MPs Ts. Oyungerel, G. Batkhuu, A. Bakei and S.

Bayartsogt to form an NGO called the Initiative for Mongolia Democracy that will focus on leading

development through fiscal savings and emboldening the country's democratic principles. The NGO's

charter includes a statement about running joint political activities with members, signaling that

the alliance is more than simply a means for philanthropy or advocacy.

Source: Udriin Sonin, assa.mn, gogo.mn

MPP TO WEIGH IN ON PERFORMANCE OF RULING DEMOCRATS

The Mongolian People's Party (MPP) plans to unveil a legislative strategy that will set the stage for

campaigning against the government-leading Democrats ahead of elections scheduled for June. On

the surface, their plan does not look like a hard swerve from the road government is currently on.

MPP members at a 24 February press conference promised to focus on reducing poverty and

unemployment while cracking down on corruption. However, they will likely come down hard on the

shortcomings of Norov Altankhuyag and Chimed Saikhanbileg in their review of how well the

government has met its plans set down since 2012.

Source: News.mn

POLITICAL PARTIES SEEKING CONSOLIDATION BEFORE ELECTION

Political parties look ready to consolidate their forces for what is likely to be a tough competition in

this year's parliamentary elections. The Mongolian People's Party (MPP) and Democrats are mulling

the thought of absorbing smaller parties, with the Democrats making the first move by signing a

memorandum of understanding to consider a merger with the Civil Will-Green Party. The Mongolian

National Democratic Party is likely to merge as well. Meanwhile, the MPP continues its efforts to

reunite with members of its spin-off party, the Mongolian People's Revolutionary Party (MPRP).

Polls from the Sant Maral Foundation show that both the Democrats and MPP have lost supporters,

which has set the stage for new entrants, including the National Labor Party (KhUN) headed by MP

Sainkhuu Ganbaatar. However, KhUN has come into its own problems as internal disputes have

spilled into public domain. Media has also attacked the party's leader, Ganbaatar, for including

false information in his resume.

Source: Mongolian Investment Banking Group

EU OFFERS SUPPORT TO MONGOLIA IN HOSTING ASEM SUMMIT

Europe has offered a helping hand to Mongolia for its hosting of the Asia Europe Meeting (ASEM)

Summit scheduled for July in Ulaanbaatar. The hosting of the event has been a launchpad for

Ulaanbaatar officials to improve services such as hotel hospitality and complete infrastructure

projects such as the new international airport to be built at Khushig Valley. “Mongolia has vast

experience in strengthening the democracy, and this Summit is to coincide with its 20th

anniversary, so the EU will support Mongolia in hosting this grand event,” said a chief E.U.

consultant for external relations, Michael Metissen, in a meeting with Parliament official B.

Boldbaatar.

Boldbaatar, who is secretary general for the Office of Parliament, said he was confident that

together they could host the event without fail and pointed to Mongolia's experience in hosting the

Organization for Security and Co-operation in Europe parliamentary autumn session.

Source: Montsame

CIVIL AVIATION AGREEMENTS SIGNED

Mongolia has signed civil aviation agreements with four countries for agreed upon common

standards such as regulations on international flights and licensing for pilots. Prime Minister Chimed

Saikhanbileg signed the agreement on 22 February with officials from Czech Republic, Malta,

Myanmar and Luxembourg, which could open the door to air traffic between the countries and

Mongolia.

Source: Montsame

MONGOLIA OPENS INTERGOVERNMENTAL RELATIONS WITH INDONESIA

Parliament officials have signed a memorandum of understanding with Indonesia's legislature during

a visit by a foreign delegation from 21 to 26 February.

Source: Montsame

ALLEGED IAAC RECOMMENDATION SAYS ENKHBAYAR PROHIBITED FROM TAKING OFFICE

The former president who spent a year in prison for graft, Nambar Enkhbayar, should not be

permitted to take office while his sentence is still in effect, according to sources familiar with a

statement from the Independent Agency Against Corruption (IAAC). Enkhbayar received a

presidential pardon from his 7-year sentence handed down in 2012 when found guilty of corruption

for collecting on the illegal privatization of state assets. Later that year, the sentence was reduced

to 4 years

The senior director from the government administration, Sh. Solongo, has denied the claim,

however, saying that no such statement had been delivered to the government yet.

Source: News.mn

NGOS DEMAND THAT MONGOLIA CANCEL CENTERRA'S REMAINING LICENSES AT NOYON UUL

The Gatsuurt mine owned by Canada's Centerra Gold Inc. is under fire again as environmentalist

groups including the sometimes extremist Gal Undesten have filed a suit with the aim of canceling

two of the miner's licenses at a site of historical and environmental significance. Less than a month

after Parliament gave the okay for government to negotiate a deal with Centerra for ownership of

the mine, the Save Mount Noyon environmental group has banded together with partners for the

filing of a suit with preliminary administrative court. They have also asked government to rethink

its decision on moving forward with plans to mine Gatsuurt.

Among the protesters is Ts. Munkhbayar, who was once arrested along with other members of the

Gal Undesten after an inactive grenade was thrown to the ground during a protest and authorities

found bombs planted in buildings not far from the Government Palace. “If the work on the mine

goes ahead, not only will ancient tombs be destroyed, but fresh water springs will be obliterated,”

said Munkhbayar.

Source: Zuunii Medee, News.mn

POLICE SEIZE UNVERIFIED LIQUOR, TOBACCO PRODUCTS IN KHUVSGUL

Police in Khuvsgul Aimag cracked down on the sale of unverified liquor and tobacco products during

the three-day Tsagaan Sar lunar new year festival. Police counted 370 packs of cigarettes made in

Russia that did not have rights to be sold in Mongolia sold on the street. Those packs had not been

inspected and did not have permits for their sale.

Other crimes often committed during the holiday season were the stealing of traditional pastries,

dumplings and meats.

Source: Mongolia.GoGo.mn

SELENGE GOVERNOR BANS WINTER HORSE RACES

The governor of Selenge Aimag has issued a ban on horse racing before 30 June, saying it is in the

interest of protecting the child jockeys. The governor said the ban on races is in coordination with

the International Convention on the Rights of Children and Mongolia's election law. Tuv Aimag's

administration has joined in with the decision, saying no to all horse races during the winter.

Source: Montsame

BCM UPDATES:

ANNOUNCEMENTS

1ST ANNUAL BCM SUMMIT, 21 APRIL, BLUE SKY HOTEL

The Business Council of Mongolia (BCM) will host its 1st Annual BCM Summit on 21 April at Blue Sky

Hotel and Tower in Ulaanbaatar. The forum will provide a venue for a wide spectrum of

informative, meaningful and innovative topics important to Mongolia's business community. The

focus will be on innovative business trends, risk management strategies to cope with survival in an

economic downturn, and more.

BCM continues to maintain a strong membership base consisting of nearly 240 business

stakeholders—both national and international—including international financial institutions,

embassies and educational institutions. BCM has more than 350 volunteers in its 8 working groups

lending their wealth of experience in recommendations used by BCM to advocate for a better

business climate.

Registration is MNT100,000 per head for members, compared with the regular fee of MNT120,000.

Save money with the ‘early bird rate’ of MNT80,000 for members and MNT100,000 for non-members

by registering before 21 March. For more information, email Saruul at saruul@bcmongolia.org.

________________________________________

MONGOLIA MINING FORUM, 8 MARCH, AT PDAC, TORONTO

Mongolia will promote the progress made in its mining and geology sectors in recent years on 8

March at PDAC, the world’s leading annual International Convention, Trade Show & Investors

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

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

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

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

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

to-one meetings with potential investors during this world leading international mining investors’

conference.

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

or email tsetsegmaa@investmongolia.com. You can also reach MRA External Affairs Officer Chinzorig

at +976 99000357 or cmunhuu@yahoo.com.

________________________________________

MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE

Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the

Government Palace on 30-31 March.

This year's two-day event will be held under the theme “Lessons learned, Facing challenges and

Solutions pending,” where participants will seek to define the country’s current national and global

context, as well as outline alternatives for the promotion of future economic and social prosperity

in Mongolia.

BCM members will have a 30 percent discount on registration. Register here, and send an email to

info@meforum.mn mentioning your BCM membership to receive your discount. For more

information email the same address or call 11 321051.

________________________________________

MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX

The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year

from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will

feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors

representing the industry's major companies. Guest speakers from the government, universities, and

companies will lead seminars of the government policy for mineral resources and new laws focused

on mining and infrastructure in Mongolia.

For more information, contact Munkh-Erdene via email at munkh@minex.mn or call at 344488.

________________________________________

7TH ANNUAL NATIONAL FORUM FOR RENEWABLE ENERGY, 6 APRIL, CORPORATE HOTEL AND

CONVENTION CENTER

The National Renewable Energy Forum, Mongolia's premier conference on the renewable energy

sector since 2008, will open on 6 April at the Hotel and Convention Center in Ulaanbaatar. At the

forum, speakers will review the initiatives and activities that address key issues for the renewable

energy sector.

Registration is MNT35,000, and there is no limit to the number of registrations. For more

information, email Myagmardorj at e.myagmardorj@gmail.com.

KNOWLEDGE SHARING SESSIONS

A BCM Knowledge Sharing Session was organized on 24 February in partnership with our member,

The Nomadic School of Business LLC, on the topic "Exploring your career, purpose, and the leader

within you". A total of 42 people attended the training session representing 26 member

organizations. The directors of The Nomadic School of Business - Anthony Willoughby, who first

visited Ulan Bator in 1975, has over 30 years of experience pioneering leadership development in

Asia, working with executives in Google, Coca Cola, Morgan Stanley and many other frontier

thinking companies – and Josephine Stoker, who has worked in one of the leading strategic

consultancy companies in Singapore, guided the participants through a unique process of

development. Included were a new way of looking at your career; exploring your life plan, purpose

and motivation; working out where you want to focus and the skills you need to develop; and

understanding a simple and creative tool, which you can use to gain insights into your priorities.

BCM ADVOCACY NOTES

Latest draft of Labor Law bill - Government working group

An open discussion was held between the Ministry of Labor and the private sector on the draft Labor

Law on 16 February. The December draft is reflective of many of the recommendations proposed by

the BCM's Legislative Working Group. Labor Minister G. Bayarsaikhan reported that the draft will be

submitted in April for the autumn Parliamentary session. New Working Group members assigned by

the Labor Minister to draft the bill were introduced and promised to review further comments from

the private sector.

For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.

Click here to read the latest draft of the bill.

BCM WORKING GROUP NEWS

Capital Markets Working Group

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

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

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

Capital Ltd and Mongolian Bankers’ Association.

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

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

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

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

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

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

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

regulations for custodian banks.

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

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

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

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Risk Working Group

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

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

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

LLC.

Agenda of the meeting:

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

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

(Bolorchimeg Kh, Lawyer ELC LLP)

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

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

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

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

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

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

cases resolved by the Supreme Court.

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

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

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

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

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

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

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

is scheduled for 3rd week of February.

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

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Business Ethics Working Group

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

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

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

Corruption (IAAC)

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

Industry, Transparency International, Research Planning Institute;

Agenda of the meeting:

- Introduction of Working Group’s objectives

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

- Proposed topics and plan for 2016

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

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

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

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

in their respective sector.

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

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

BCM’s Logistics Working Group

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

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

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

Dolgoon Delgerekh LLC.

Agenda of the meeting:

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

• Discuss and plan WG’s 2016 activities

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

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

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

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

the delivery logistics within Ulaanbaatar.

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

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

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

Korea and Mongolia initially and delving into other markets.

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

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

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

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

more insight.

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

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

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

Coordinator of BCM, at khulangoo@bcmongolia.org.

_________________________________________

BCM’s Energy and Environment Working Group

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

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

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

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

Center of Ministry of Energy

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

Guests: Sustainable Fiber Alliance

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

Group

Agenda of the meeting:

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

for private sector?

Introduction and Opening remarks by Working Group Chair

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

Project Manager, Biennal Update Report to UNFCCC.

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

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

Discussion on the topic among participants

Meeting minutes summary:

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

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

upcoming Chair of the EEWG for 2016 during her absence.

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

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

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

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

bayarmaa@bcmongolia.org.

_________________________________________

BCM Education Working Group

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

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

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

funded projects:

Foreign Mission: Canadian Embassy;

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

Private sector: PwC, Minter Ellison

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

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

Global Fund;

Agenda of the meeting:

16:05-16.10 Introductions

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

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

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

Amendments (IRIM/Saha)

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

Meeting minutes summary:

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

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

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

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

will be organized first week of December.

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

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

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

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

highlight a few:

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

Coordinator of BCM at khulangoo@bcmongolia.org.

‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES

Guest Speaker: Gerelt-Od Ts, Ministry of Environment, Green Development and Tourism (MoEGDT)

Presentation topic: "Climate Change of Mongolia & COP21"

Where & When: National University of Mongolia, 23 February 2016

Mr. Gerelt-Od Ts, MoEGDT, delivered a presentation titled "Climate Change of Mongolia & COP21".

Over 50 students attended the lecture.

Mr. Gerelt-Od was one of the three representatives from Mongolia to enter into the negotiations at

the 2015 United Nations Climate Change Conference, COP 21 held in Paris, France, from 30

November to 12 December 2015. Mr. Gerelt-Od's comprehensive presentation covered Mongolia's

historic engagement in the global movement against climate change to recent highlight of

Mongolia's pledge of 50'000 US dollar to the Green Climate Fund. The presentation is available here.

________________________________________

Guest Speaker: Amartuvshin Sh, CEO-AFAcademy

Presentation topic: "Personal development: New season"

Where & When: The Institute of Finance and Economics, 18 February 2016

Amartuvshin Sh, CEO of AFAcademy, delivered a presentation titled "Personal Development: New

season" at the Institute of Finance and Economics (IFE) on 18 February. Over 60 senior students

attended the lecture.

Mr. Amartuvshin, an experienced motivational speaker and family counselor, shared a success

formula, which he has been using for his lectures to CEOs of key businesses in Mongolia. Students

expressed their gratitude to Mr. Amartuvshin and expressed their interest in various tools that can

be used for personal development.

For more information about the lectures, please contact Khulangoo, Working Group Coordinator at

khulangoo@bcmongolia.org

WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS

Presentations:

BCM Monthly Meeting, 22 February:

- A. Baatarpurev, Director of Markets Development Department, Financial Regulatory Commission -

"Financial Market Developments in Mongolia"

- Jennifer Bielman, Country Director, MercyCorps Mongolia - "Mercy Corps: Building Resilience in

Mongolia"

- D. Uuriintuya, Chairman, Mineral Resources Authority of Mongolia - "Mongolian Events during PDAC

2016 in Toronto"

- N. Munkhnasan, General Director, Monpolyment - "Overview of Monpolyment"

_________________________________________

BCM Monthly Meeting, 25 January:

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

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

Challenge Corporation -

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

Millennium Challenge Corporation”

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

_________________________________________

BCM Monthly meeting on December 7:

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

Leaders Through Education & Idea Exchange”

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

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

STOPP”

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

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

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

_________________________________________

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

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

growth and savings"

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

frontier again: financial market developments"

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

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

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

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

import replacement opportunities EBRD's role in enabling progress"

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

Mongolia: SME perspective"

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

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

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

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

Growth"

_________________________________________

Mongolian Annual Risk Management Forum, 11 November:

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

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

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

International Mongolia

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

NPC&Mandal LLC

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

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

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

Insurance

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

Mongolia

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

_________________________________________

BCM Monthly Meeting on 2 November:

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

business”

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

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

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

Law”

_________________________________________

Mongolia Reports:

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

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

Priorities (Sep 2015)

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

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

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

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

2015, “FDI Environment in Mongolia”

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

_________________________________________

Interviews:

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

Effective"

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

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

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

August 20, 2015;

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

News, August 20, 2015;

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

SOCIAL NETWORKS

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

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

improving each day with BCM.

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

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

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

https://twitter.com/bcmongolia.

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

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

LinkedIn page.

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

Social stats: Social stats: BCM now has 11,376 fans on our Facebook fans page, 1,978

connections on LinkedIn network, and 1,970 followers on Twitter.

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Website: According to Google Analytics report, as of 24 February, the daily web traffic to BCM

website was 65 visitors with 93 sessions. 83% were from Mongolia, 4% from Japan and 2% from Hong

Kong and United States each.

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

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

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

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

Technology Innovations."

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

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

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

From January 2013 to February 2016 we posted a total of 110 news items related to BCM activities,

economic and business related updates.

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

from BCM events.

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

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

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

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

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

photos, videos and announcements regarding BCM.

ECONOMIC INDICATORS

INFLATION

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

Year 2007 *15.1% [source: NSOM]

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]

January 31, 2016 *1.7% [source: NSOM]

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

Note: 1.0% y-o-y, 4.0% Core - Ulaanbaatar City, January 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: Mongol Bank]

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

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

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

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

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

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

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

CURRENCY RATES – 25 February 2016

Currency Rate

US dollar USD 2,037.14

Euro EUR 2,245.74

Japanese yen JPY 18.16

British pound GBP 2,836.82

Hong Kong dollar HKD 262.19

Chinese Yuan CNY 311.75

Russian Ruble RUB 26.66

South Korean won KRW 1.64