BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 421 – April 1, 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:

Artisinal miners go pro with gold export;

Erdenet power plant expansion project launches;

MMC isn't bankrupt, says mining exec;

Mongolian company expands brown rice production for sale in Mongolia;

Taiwanese company looks to sea buckthorn production in Uvs;

Bonuses paid to Erdenet Mining management leaked;

Ministry of Health to collaborate with Nagoya University;

Zorig Foundation's ‘Young Leaders’ launch “iLoveMe” cancer awareness campaign;

Khan Bank appoints new CEO;

MNMA appoints first female chair;

Asia Foundation appoints deputy country rep;

Delegates talk lessons learned at Mongolia Economic Forum;

Tea Road meeting held in UB;

President presents ger to Australian National University;

Rio Tinto’s copper conundrum.

Economy:

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

Mongolia’s growth moderates amid global uncertainties;

Mongolia paying heavy price in international debt sale;

Mongolia looks to upgrade energy plants for greater efficiencies;

Construction of road from Khushig airport to relaunch in April;

Nearly 30,000 hectares of land to be available for allocation;

1,500 students to volunteer for ASEM;

20 mn livestock born;

New military hospital complex opens;

Mayor launches watchdog group for city construction sites;

Schools, health centers and more upgraded for warmth in Mongolia's west;

U.S. Embassy promotes U.S. scholarships, learning English in western provinces.

Politics:

Parliament's spring schedule;

Parliament to talk nuclear energy at special session;

Deputy PM proposes amendments to Law on Government;

Meteorology bill aims to help business;

Mongolia to put mountains in Gobi desert under state protection;

Communities now have benchmark agreement for negotiating resource exploitation;

Lhagvasuren nominated as new Minister for Health and Sport;

MPP unveils industrialization plan ahead of elections;

MNDP moves to consolidate with CW-GP;

KhUN selects new chairman;

MPRP makes appointments, sackings at emergency conference;

Russia, Mongolia to discuss joint military drills in April;

Battulga’s former assistant addresses president in letter from jail;

Nazi activists demonstrate against nuclear waste bill;

Narcotics gang leader arrested;

Parties’ spending caps announced for UB city council candidates;

A new chapter in Australia–Mongolia relations—EDITORIAL;

Mongolia's 'Third Neighbor' policy blooms—EDITORIAL.

BCM Updates:

Announcements;

New Mongolian Laws;

Knowledge Sharing Sessions;

Advocacy Notes;

Working Groups News

BCM in the University Classroom Series;

Cooperation & Member discounts;

Member Vacancies;

Websites Update - Presentations, Mongolia Reports, Interviews;

Social Networks.

Economic Indicators:

Inflation;

Central Bank Policy Rate;

Currency Rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank Invest Mongolia Agency

Mongolian Business Database

BCM MEETING RECAP

The BCM meeting on 25 March was held in the Diamond conference room in Blue Sky Tower and

Hotel was attended by 75 members and invited guests with BCM's Chairman Bayanjargal

Byambasaikhan and Executive Director Jim Dwyer as the evening's hosts. Dwyer reminded members

of the BCM Summit to be held on 21 April, and encouraged them to submit issues and

recommendations for discussion. He added that the Summit will be different from other

conferences because of its diversity of informative topics and its advocacy efforts. There will be

widespread media coverage of the Summit Proceedings for the public and political parties before

the upcoming elections.

The evening's networking reception in the Topaz room was catered by the restaurant Namaste.

BCM's two newest members are:

1. The Morning Star Land LLC - a Singaporean JV property developer company established in 2012.

2. Prosum LLC - a trading company operating in food and beverages as well as promotional product

markets. Since 2014, they have grown steadily and today they represent more than 15 European

producers in the region.

The first presentation of the night came from Steve Rose, general manager of Cummins Mongolia.

“We have a rich history which started off in 1919,” he said. Rose introduced the power solutions the

Cummins brand offers throughout the the world as the largest independent engine manufacturer. It

also offers components and engines to customers around the globe with the broadest distribution

network in existence.

In Mongolia since 2011, Cummins has supplied the Oyu Tolgoi copper-gold mine with engines for its

Komatsu trucks. Most recently, it opened a new engine-rebuild facility in Ulaanbaatar able to build

any Cummins motor that comes with a guarantee equal to that offered for any new engine.

Barrie Evans, director of Churchill’s spoke next on the food safety in the country's food

manufacturing and restaurant business. He noted there were three main categories of food

contamination: chemicals and metals such as lead that are dangerous to human health; physical

objects such as glass, screws and plastic pieces; and microbiological organisms such as bacteria.

Also of growing concern is allergens: “In the U.S. and Europe, there are already laws requiring food

manufacturers to declare allergens on packaging,” said Evans.

Mongolia's food manufacturers are improving their practices with the introduction of of Hazard

Analaysis and Critical Control Points (HACCP) standards into their practices to help eliminate the

factors that contribute to food poisoning, Evans said. Companies are also following the the ISO

220000 regulations, which manufacturers indicate on their food packaging.

President Tsakhia Elbegdorj's chief of staff, P. Tsagaan, gave the final speech of the evening to

update members on the progress being made for the 11th Asia-Europe Meeting (ASEM) summit to be

held on 15 and 16 July. The event, which will gather world leaders from the group's 31 countries in

Asia and Europe (representing 36% of the world's population), is being led by six sub committees

operating under Prime Minister Chimed Saikhanbileg. The government is enlisting the help of 1,500

university student volunteers to act as guides for guests, organize events, and provide general

assistance during that time. They are expecting attendance to peak at between 4,000 and 5,000

guests the week of the event.

Tsagaan said the event would provide an important opportunity for Mongolia to improve its tourism

services. It also brings the opportunity to grow business at the business forum scheduled just before

the government meetings. “I think it will be a success story for Mongolia,” said Tsagaan. “It 's the

largest gathering held in this country, to my best knowledge.

BUSINESS

ARTISINAL MINERS GO PRO WITH GOLD EXPORT

An artisanal mining organization based in Bayan-Ovoo Soum, Bayankhongor Aimag has become

Mongolia's first to export gold. The NGO known as XAMODX has been permitted for export after the

group of more than 300 small-scale gold miners became one of only two in the world to receive

certification from Fairmined Ecological Gold organization that sells jewelry and other gold products

in 18 countries globally as the Mongolian government seeks to regulate and tax what has been seen

as a lawless industry. On 17 March, XAMODX was greenlit for the sale of gold at global benchmark

prices, at about USD600 a kilogram, plus additional premiums for every kilogram sold.

“All members of the NGO are very content and proud of exporting our first Fairmined Ecological

Gold to the world market,” said XAMODX NGO head Otgonbaatar Chamin. “I have to say that it was

not one-day work for us. It took nearly five years of hard work and dedication from all members of

the NGO to achieve this result.”

Source: Montsame

ERDENET POWER PLANT EXPANSION PROJECT LAUNCHES

Work has begun to install a 50-megawatt power generator at a power-generating facility in Erdenet

as the country looks to bolster its energy security and lean less on its neighbors for imported

electricity. A groundbreaking ceremony was held on 25 March for the USD53 million upgrade, more

than three decades after Mongolia and the Soviet Union signed an intergovernmental agreement in

1983 to build the 35-megawatt plant. Energy Ministry D. Zorigt said the government set the task of

improving the country's energy resources as a main objective for 2016. “The expansion of [the

power plant] is being conducted as a part of the ministry’s aim,” he said.

Financing from the project comes from the Chinese government, the Development Bank of Mongolia

and leftover proceeds from the 2012 Chinggis bond. The feasibility study for the project was funded

with assistance from the Czech Republic, with the report compiled by the Czech company,

Grandera Inc.

Source: UB Post

MMC ISN'T BANKRUPT, SAYS MINING EXEC

Mongolia' Mining Corp. (MMC) has not gone bankrupt after defaulting on a USD600 million bond, said

the head of its mining unit in the Gobi desert, Energy Resources LLC. News that the Hong Kong-

listed parent company to Energy Resources had defaulted on the loan because it could not make an

interest payment this month has led to false reports in newspapers such as Udriin Sonin the

company is now bankrupt. “Our financial situation is not very easy, but we are not bankrupt,” said

Energy Resources' chief executive officer, G. Battsengel.

Battsengel also rejected the claim that the company's financial situation would have hurt the Tavan

Tolgoi coal mine, which MMC hoped to take over management of in 2015. “We are not happy to see

today’s Tavan Tolgoi, which is exporting raw coal dug from the best parts of the mine. Now, Tavan

Tolgoi has become a raw coal provider of the Inner Mongolian coal refinery,” he said, suggesting the

coal would take in higher profits with a processed product.

Source: Undesnii Shuudan, Udriin Sonin

MONGOLIAN COMPANY EXPANDS BROWN RICE PRODUCTION FOR SALE IN MONGOLIA

A Mongolian foods producer is growing brown rice from overseas for sale in the Mongolian market.

Mongolia consumes about 70,000 tons of rice a year, but must rely entirely on foreign providers,

according to J. Gankhuyag, director of GIMEX. He hopes to change that fact with the addition of

200 hectares of land for its rice cultivation in Laos. “Our company has a high-tech brown rice

processing plant with daily capacity of 60 tons,” he said.

The company partnered with the Laotian company, Povina, in 2013 with assistance from the

Ministry of Industry and Agriculture, said Gankhuyag, and GIMEX began planting that year. In 2015,

GIMEX increased its production scale to 300 hectares, he said.

Source: Udriin Sonin

TAIWANESE COMPANY LOOKS TO SEA BUCKTHORN PRODUCTION IN UVS

A Taiwanese company plans to open a processing factory for sea buckthorn at Mongolia's most

sparsely-populated province, Uvs Aimag. The company [Source did not include the name -ed] has

committed to investing between 20 and 40 percent of the cost for production and is already looking

into water purification after finding that the water resources were inadequate.

Source: News.mn

BONUSES PAID TO ERDENET MINING MANAGEMENT LEAKED

Information has leaked from state-owned miner Erdenet Mining Corp. about thousands of dollars in

bonuses paid to the company's management. In December 2014, top members of management

received bonuses of EUR1,800 to EUR3,600 on top of their salary, according to a document the

company claims was stolen information. Others in the company receive up to EUR45,0000, as well

as apartments in Ulaanbaatar paid for by the company.

Source: Udriin Sonin

MINISTRY OF HEALTH TO COLLABORATE WITH NAGOYA UNIVERSITY

Japan’s Nagoya University has agreed to accept Mongolian medical experts to earn degrees in its

course study. The university has signed a memorandum of understanding with the Ministry of Health

and Sport for a program where Mongolian healthcare workers can expand their knowledge and

capabilities. Since 2003, the university has awarded 16 Mongolians with its Young Leader

scholarship, many of whom today work at high-level positions at the Ministry of Health and Sport.

Source: Montsame

ZORIG FOUNDATION'S ‘YOUNG LEADERS’ LAUNCH “ILOVEME” CANCER AWARENESS CAMPAIGN

The Zorig Foundation is sponsoring a new health-awareness program for cancer prevention among

Mongolians. Five members of the Zorig Foundation's group for young professionals called ‘The Young

Leadership Program’ have launched the “iLoveMe” campaign spreading the message that people

need to start focusing on their health to prevent deadly diseases. Each week, the group will publish

health-related infographics to accompany a short documentary film about the struggles of a cancer

survivor in Mongolia in April.

The “iLoveMe” team is also raising funds to buy equipment for the National Cancer Research

Center.

Source: News.mn

KHAN BANK APPOINTS NEW CEO

Khan Bank LLC on 30 March announced the appointment of John Bell as new chief executive officer,

effective 1 April, succeeding Norihiko Kato who held the office for five years. Bell joined Khan Bank

as the first deputy chief executive officer in charge of business in August 2015. He has been in the

banking and financial industry since 1994, taking the positions of personal banker, branch

operations supervisor, liabilities and investment product manager, and wealth management

business head at Citibank.

“We are delighted that Mr. Bell is taking on the role of CEO. His background and experience is well

suited to lead our team in the further growth and success of the bank,” said Chairman Hideo

Sawada.

Source: Khan Bank LLC

MNMA APPOINTS FIRST FEMALE CHAIR

J. Sunjidmaa has become the first woman to chair the Mongolian National Mining Association

(MNMA). Sunjidmaa’ s first public appearance in North America as MNMA Chair was at the Mongolia

Mining Investment Forum at Prospectors & Developers Association of Canada (PDAC) in Toronto on 8

March. Previously, she has worked as manager of corporate affairs and sustainability for Anglo

American PLC and Peabody Energy Inc., as well as for the World Bank.

Source: NAMBC

ASIA FOUNDATION APPOINTS DEPUTY COUNTRY REP

The Asia Foundation has appointed Diana Fernandez as deputy country representative in Mongolia,

the international aid organization announced on 23 March. Fernandez will provide leadership

support and oversee a wide range of programs and projects on urban services; economic

development; water, sanitation and health; trafficking in persons; and women’s empowerment. She

has been with the foundation in different capacities for almost a decade, most recently serving as

the head of the Program Support Unit for the Timor-Leste office as well as the coordinator for

research and monitoring and evaluation for the office’s Nabilan: Ending Violence Against Women

program.

Source: Asia Foundation

DELEGATES TALK LESSONS LEARNED AT MONGOLIA ECONOMIC FORUM

Businessmen, government officials, academics and civil society discussed the likely road ahead for

Mongolia and its economy at the 2016 Mongolian Economic Forum held in Ulaanbaatar on 30 and 31

March. Launched under the slogan “Lessons, Challenges, Solutions,” speakers such as Asian

Development Bank Country Director Robert Shoellhammer discussed how Mongolia must derive

maximum returns from their investment. "95 percent of the foreign investment went to mining

sector,” said Bank of Mongolia President Naidansuren Zoljargal. He added, “We've learned that

providing welfare from taxing foreign investment is wrong. We understood that the average savings

is important.”

Amid today's economic challenges, Finance Minister B. Bolor noted the importance of reducing

budget deficits.

Source: Mongolia.GoGo.mn

TEA ROAD MEETING HELD IN UB

Mongolia will make tourism a main focus in its three-nation development project to rebuild the

ancient Tea Road that once connected Asia and Europe for trade. Ulaanbaatar this week hosted the

annual conference bringing together officials from Mongolia, China and Russia to plan for the

recreation of the trade route that they see can also serve as a tourist attraction, according to the

Ulaanbaatar Tourism Authority. Development in the nation and Ulaanbaatar will be a specific focus

as the city continues its pro-tourism campaign “Ulaanbaatar Welcomes You.”

Source: News.mn

PRESIDENT PRESENTS GER TO AUSTRALIAN NATIONAL UNIVERSITY

President Tsakhia Elbegdorj was in Australia's capital on 24 March to present a traditional Mongolian

ger as a gift to the Australian National University. Also given as a gift was a traditional horse-head

fiddle, which was played by a Mongolian musician to demonstrate the two-stringed instrument’s

wide range and how its harmonies could replicate the sound of horses trotting on the open steppe.

“Mongolia has been paying particular attention to developing Mongolian studies around the world,”

said Foreign Affairs Secretary D. Gankhuyag.

Source: News.mn

RIO TINTO’S COPPER CONUNDRUM

Jean-Sébastien Jacques’ in-tray when he takes over as chief executive of Rio Tinto Group will

contain a lot that is familiar from his last job. For the past three years he has led the miner’s

copper business, which is viewed in and outside Rio as a key to its growth to complement its

traditional iron-ore unit and its investment in bauxite, the raw material for aluminum.

Rio is convinced that declining global production will support a price recovery within two to three

years. Jacques wrestled with the Mongolian government to reach agreement last year for a more

lucrative second phase of the Oyu Tolgoi copper mine, but Rio has not yet committed itself to the

USD5 billion expansion. “There is still plenty of housekeeping for Rio to do within its own copper

portfolio,” says Patrick Jones, analyst at Nomura, adding that Rio needs to try to cut the bill for

expanding at Oyu Tolgoi.

Source: Financial Times

ECONOMY

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

The Bank of Mongolia on 29 March sold USD2.3 million (out of USD11.1 million in bids) and CNY21

million (out of CNY51.7 million in bids) to central banks in currency auctions for closing exchange

rates of MNT2,050 and MNT314.20, respectively. Also that day, it accepted tugrug swaps with

commercial banks for an equivalent of USD81.2 million.

The Bank of Mongolia on 30 March issued 1-week bills worth MNT14.1 billion at a weighted interest

rate of 12 percent. Also that day, the central bank received MNT22.5 billion in bids for the auction

of 28-week treasury bills with a face value of MNT7.5 billion (compared with an original value of

MNT15 billion) that were sold at a discounted price with an average weighted yield of 14.05

percent. It canceled the auction of three-year bills with a face value of MNT10 billion after it failed

to attract bids.

Source: Bank of Mongolia

MONGOLIA’S GROWTH MODERATES AMID GLOBAL UNCERTAINTIES

Growth is slowing across much of developing Asia as a result of the continued weak recovery in

major industrial economies and softer growth for the People’s Republic of China. This will combine

to push growth in developing Asia for 2015 and 2016 below previous projections, including Mongolia,

says a new Asian Development Bank (ADB) report.

ADB’s flagship annual economic publication, Asian Development Outlook (ADO) 2016, forecasts gross

domestic product (GDP) growth of 5.7 percent in 2016 and 2017 for the region. In 2015, GDP growth

was 5.9 percent. For Mongolia, growth will stagnate at 0.1 percent in 2016 and 0.5 percent in 2017,

reflecting the regional and global trend, as well as the decline in mining production. Mounting

balance of payments pressures and debt management will require tight fiscal and monetary

policies.

Source: Asian Development Bank

MONGOLIA PAYING HEAVY PRICE IN INTERNATIONAL DEBT SALE

Mongolia is paying a heavy price for its first sale of international debt in three years. The vast,

sparsely populated country is issuing a new five-year bond that is expected to be sold with a yield

of around 11 percent, more than double the 4.125 percent rate the country paid in 2012.

Ulaanbaatar’s issuance comes two months after the country held meetings with investors and

follows a volatile start to the year for emerging markets, during which falling commodity prices and

the U.S. economic recovery has cooled investor demand for new bonds sold by frontier economies.

Deteriorating sentiment towards Mongolia has led to a sell off on USD1.5 billion in Chinggis bonds

from 2012, pushing yields on the five-year debt up to 13.5 per cent earlier this year. Credit Suisse,

Deutsche Bank, ING and JP Morgan have been hired as bookrunners with local institutions Golomt

Bank and TDB Capital LLC joint lead managers.

Source: Financial Times

MONGOLIA LOOKS TO UPGRADE ENERGY PLANTS FOR GREATER EFFICIENCIES

Mongolia's energy producers reported a combined MNT595.5 billion in revenue last year as they look

to upgrade their facilities to optimize earnings. Mongolia's state-owned power producers continue

to see losses because of inefficiencies in generating and delivering energy. In 2013, producers’

revenue was just MNT416 billion in 2013 compared with MNT784 billion for the national IT, Post and

Telephone Authority, said S. Tumurkhuu, director of the Ulaanbaatar Power Supply Network.

“Power generation revenue has been lower than the cost of using a phone or watching TV,” he said.

Mongolia is committed to expanding its energy grid to bolster its own national security while relying

less on its neighbors Russia and China for fuel and electricity. However, producers have had to rely

on subsidies as Mongolia provides much cheaper energy than Russia—which produces energy at four

times the cost of Mongolia's, even with its huge energy reserves. In China energy costs are triple

that in Mongolia.

Source: News.mn

CONSTRUCTION OF ROAD FROM KHUSHIG AIRPORT TO RELAUNCH IN APRIL

Work on a new road for travel between the new international airport now under construction at

Khushig Valley is three-quarters finished, according to the lead coordinator for the project, N.

Enkhbat. Work on the road is set to relaunch with the return of warmer weather on 15 April. “The

construction work is 76 percent completed,” said Enkhbat, who admitted to numerous obstacles

along the way. The construction of three buildings had to be suspended to make way for the road

while project developers had to tackle logistical issues with airline servicing facilities and the

development of a new town to accompany the airport. Problems arose in the installment of a fuel

depot, hangers and services buildings.

Source: News.mn

NEARLY 30,000 HECTARES OF LAND TO BE AVAILABLE FOR ALLOCATION

The Ministry of Construction and Urban Development is poised to allocate nearly 30,000 hectares of

land nationwide to households this year. Land will be distributed in coordination with urban

development plans put forward by local city councils, said Construction and Urban Development

Minister Z. Bayanselenge at a 28 March Cabinet Secretariat meeting. About 30,000 hectares will be

handed over to families, and nearly 40,000 will be allocated for commercial use.

Source: Montsame

1,500 STUDENTS TO VOLUNTEER FOR ASEM

Mongolia for the upcoming Asia-Europe Meeting (ASEM) in July will recruit between 1,200 and 1,500

students to work as volunteers to act as guides and assistants during the event. The government is

pulling in help from young people with English-speaking skills to help it put on what will be the

biggest event Mongolia has hosted since its transition to a democracy. Those volunteers will help

guests with tasks such as carrying luggage, guiding them through the city, and as fixers for

journalists.

About 10 events are planned between April and July when about 4,000 guests and up to 1,000

journalists will arrive.

Source: News.mn

20 MN LIVESTOCK BORN

Mongolia has welcomed the birth of up to 20 million newborn livestock this spring following a

difficult winter that left many nomadic herders scathed. Herders will hope to make up for losses

experienced in this year's “dzud”-like conditions, where extreme cold and snowfall resulted in the

death of hundreds of thousands of animal deaths. Sukhbaatar Aimag reported the largest number of

animals scattered, having lost 115,173 livestock, followed by Uvs' 101,021, Arkhangelsk's 68,989,

Zavkhan's 67,531 and Bayankhongor's 63,121.

Source: Montsame

NEW MILITARY HOSPITAL COMPLEX OPENS

A new MNT1.3 billion hospital built for the border defense troops and law enforcement in

Sukhbaatar Aimag opened on 24 March. “The new hospital is equipped with new, advanced

technology and equipment. We obtained hospital equipment and X-ray apparatuses worth MNT17

billion with a soft loan through a memorandum signed by the Mongolian and Austrian governments,”

said the director of the hospital complex for border defense and law enforcement officers, Colonel

B. Elbegjargal.

The center at the hospital, which first opened in 1921, took five years for construction. It is the

eighth of its kind built since 2010.

Source: UB Post

MAYOR LAUNCHES WATCHDOG GROUP FOR CITY CONSTRUCTION SITES

Ulaanbaatar's city government has organized a body to monitor safety at construction sites

throughout the city. Ulaanbaatar Police Chief Ch. Bold will lead a group that includes specialists in

emergency management, investigations and urban planning to oversee construction projects here,

according to the city's website, Ulaanbaatar.mn.

Source: Mongolia.GoGo.mn

SCHOOLS, HEALTH CENTERS AND MORE UPGRADED FOR WARMTH IN MONGOLIA'S WEST

The Energy Efficiency Project (EEP) is retrofitting old and often rundown public buildings in western

Mongolia for warmer and more-efficient kindergartens, schools, health centers and school

dormitories. Six public buildings in two western provinces, Khuvd and Zavkhan, have been

prioritized by local communities and governments to benefit from “matching funds” — joint funding

pools with contributions from the project and county Local Development Funds (LDF). One of the

EEP beneficiaries is the health center in Erdenekhairkhan Soum, Zavkhan Aimag, which has become

a model of public health service standards and energy efficiency.

“Before the rehabilitation, it was very difficult to provide sufficient hospital care and treatment,”

said Erdenekhairkhan Soum Hospital Director Sh. Dulmaa. “But now citizens want to receive in-

patient treatment to experience the full benefits of the hospital. They are very pleased that the

hospital is now a warm and comfortable place,” she said.

Source: Montsame

U.S. EMBASSY PROMOTES U.S. SCHOLARSHIPS, LEARNING ENGLISH IN WESTERN PROVINCES

More than 200 English teachers participated in trainings in Khuvd and Uvs hosted by the U.S.

Embassy’s Public Affairs Section (PAS) from 18 to 22 March. In each province, the PAO gave public

talks about exchange programs available through the embassy, as well as information about funding

opportunities through PAS grants. The English Language Fellow, LaTasha Simms, came to Mongolia

to organize methodology trainings at the request of the Education Department of Uvs Aimag. The

training focused on ways of using technology in the English language classroom and encouraging

English learning through communicative teaching strategies as well as formative assessment.

LaTasha Simms also gave a public lecture at the American Corner in Khuvd province that focused on

the research and application processes at American universities.

Source: U.S. Embassy

POLITICS

PARLIAMENT'S SPRING SCHEDULE

Parliament Speaker Zandaakhuu Enkhbold on 28 March announced the legislative agenda for the

upcoming spring session of Parliament. Legislation up for debate after Parliament reconvenes

includes:

• Declare the Dates of Regular Elections of Parliamentary and Civic Representative Assemblies of

Municipalities and Provinces

• Approve the Organization for Public Hearings

• Guidelines to Develop the Mongolian Economy and Society in 2016

• Approve the Guidelines to Develop the Mongolian Economy and Society in 2017

• Budget Framework in 2017 and Budget Expectations in 2018-2019

• Approve the 2015 Budget Implementation, and Governmental Consolidated Financial Statements

for 2015

• Approve the Expenses of the Regular Parliamentary and Civic Representative Assembly Elections

• Approve the National Program for Anti-Corruption and Strengthening the Rule of Law

• Law on Family

• Law on the State Prize

• Law on Trades

Source: News.mn

PARLIAMENT TO TALK NUCLEAR ENERGY AT SPECIAL SESSION

Lawmakers are discussing legislation that will set the stage for the commercial nuclear energy

industry in the country at a special session of Parliament. Last week, Parliament Speaker

Zandaakhuu Enkhbold issued the order for an irregular session of parliament from 29 March to 1

April to discuss bills that would ratify nuclear energy conventions for the disposal of spent nuclear

fuel from the last fifty years.

Source: News.mn, Mongolia.GoGo.mn

DEPUTY PM PROPOSES AMENDMENTS TO LAW ON GOVERNMENT

A new bill from the Cabinet Secretariat aims to sort out some of the overlap in responsibilities

between law makers and the executive branch of government in Mongolia. The proposed

amendments to the Law on Government submitted by Deputy Prime Minister Ts. Oyunbaatar on 29

March would clarify the separation of duties between the legislature and the Cabinet Secretariat

that operates under the prime minister as well as mechanisms for monitoring one another. Since

passing amendments to the Constitution in 2000, elected officials have battled over interpretation

of responsibilities laid out there.

Source: Montsame

METEOROLOGY BILL AIMS TO HELP BUSINESS

A new bill before Parliament is set to raise the standards of meteorological study to facilitate

business in Mongolia. Deputy Prime Minister Ts. Oyunbaatar on 29 March submitted the Law on

Meteorology to align Mongolia's standards with that of the World Trade Organization that would help

businesses better operate in the country. The bill aims to decentralize the work done to monitor

the weather in the country, “making state services quicker, creating good conditions for business,"

said Oyunbaatar.

Source: Montsame

MONGOLIA TO PUT MOUNTAINS IN GOBI DESERT UNDER STATE PROTECTION

A new bill would see the addition of 896,527 hectares of protected land in the state's reserves.

Mongolia suspended the issue of licenses for mineral exploration last year to make room for national

parks to cover the Tost and Toson Bumba mountains in the Gobi desert. The bill submitted to

Parliament from MP L. Erdenechimeg and Ts. Oyungerel on 29 March would put those mountains

under special protection by the state so that study could be done on how they can be applied to the

Mongolian Millennium Development Goals as well as the country's development and environment

policies.

Source: Montsame

COMMUNITIES NOW HAVE BENCHMARK AGREEMENT FOR NEGOTIATING RESOURCE EXPLOITATION

Communities now have a standard to follow in their negotiations with miners as they seek

development assistance in return for their permission for companies to extract valuable resources.

The Cabinet Secretariat on 28 March adopted a model agreement for communities to follow as they

enter into agreements for companies hoping to mine resources within close proximity. The model

agreement includes provisions on infrastructure development, job creation, environmental

protections and the operations of mines and processing plants.

Source: Montsame

LHAGVASUREN NOMINATED AS NEW MINISTER FOR HEALTH AND SPORT

The Mongolian People's Revolutionary Party (MPRP) has nominated Ts. Lkhagvasuren as the next

minister of health and sport, according to Parliament's press office. Lkhagvasuren is a former

director of the Mongolian National University of Medical Sciences.

The MPRP held off on its selection while G. Shiilegdamba remains incarcerated for corruption

charges.

Source: News.mn

MPP UNVEILS INDUSTRIALIZATION PLAN AHEAD OF ELECTIONS

The Mongolian People's Party has laid out a plan to grow Mongolia's industry as it prepares to face

off against the government-running Democrats in elections slated for 29 June. “Heavy industry and

mining development are halted,” said S. Byambatsogt in a press conference introducing their plan.

The plan laid out by Byambatsogt focused on light industrial production, suggesting Mongolia could

launch production of 100 different products throughout all of Mongolia's 21 provinces by 2021. “Only

light industry can be developed in a relatively short period,” he said.

Source: Udriin Sonin

MNDP MOVES TO CONSOLIDATE WITH CW-GP

At least one party is acting counter to the Democratic Party's invitation to join their larger

established party, asking minority parties to form their own coalition. Mongolian National

Democratic Party (MNDP) Chairman Mendsaikhan Enkhsaikhan proposed a merger with the Civil Will-

Green Party (CW-GP) to create a coalition called “Motherland, Democracy, Justice” for the 29 June

election rather than accept an offer to join the Democrats. The olive branch follows a similar

merger plan announced in March to band with the Ekh Oron Democracy and Justice Union parties,

while the CW-GP mulls the possibility of joining the ranks of the Democrats.

“A historic need to overcome difficult challenges by being united peacefully, not to be split up,

trying to be in harmony as well as cooperating with all political parties for this period of time,” said

Enkhsaikhan in his proposal.” It is really important that parties with similar guidelines or policies

should cooperate in that direction to develop policies or tactics in order to overcome crises as well

as to make the state work properly, and let the activity and policy be sustainable, continuous and

coherent.”

Source: Undesnii Shuudan

KHUN SELECTS NEW CHAIRMAN

T. Ganbold has stepped up to take the office of chairman for the National Labor Party (KhUN) as the

populist yet controversial candidate Sainkhuu Ganbaatar has stepped aside amid arguments over

who should run the party. Twice the Supreme Court rejected both candidates when the case was

brought from the party, instead leaving power in the hands of the former party leader. Ganbaatar

withdrew his name for selection after competitor Ganbold received 98 percent confirmation from

party members.

Source: News.mn

MPRP MAKES APPOINTMENTS, SACKINGS AT EMERGENCY CONFERENCE

The Mongolian People's Revolutionary Party (MPRP) has ousted two of its members amid party strife.

The MPRP made the announcement that L. Tsog and G. Shiildegdamba had been dismissed at a 25

March press conference following a meeting of 130 members of the minority party in government.

Unnamed sources familiar with the discussion said the focus of the meeting was to decide the fate

of members who were said to have worked against the party.

Several appointments were made in the meeting, including D. Terbishdagva, Ts. Oyunbaatar and E.

Erdenjamiyan as deputy chairmen; and J. Sukhbaatar and N. Udval as secretaries.

Source: News.mn

RUSSIA, MONGOLIA TO DISCUSS JOINT MILITARY DRILLS IN APRIL

Representatives of Russia's Eastern Military District (EMD) are due to discuss the upcoming Selenga-

2016 joint Russian-Mongolian military exercises with Mongolian military officials in April, the head

the EMD's press service said Monday. “The second round of consultations on planning the joint

Russian-Mongolian Selenga-2016 exercises will be held in April in Ulaanbaatar. EMD and Mongolian

Armed Forces representatives will discuss scenarios for the upcoming drills and the composition of

military groups taking part," Alexander Gordeev told reporters.

The sides had previously agreed to hold the drills between 29 August and 7 September at the

Burduny training range in Buryatia, with some 2,000 service personnel taking part in total, Gordeev

added. Selega-2016 will be the ninth joint exercise between Mongolia and Russia since 2008. The

two countries' troops will engage in a simulated counter-terrorist operation and practice detecting,

blocking and eliminating simulated illegal armed groups, according to the Russia's defense ministry.

Source: Sputnik News

BATTULGA’S FORMER ASSISTANT ADDRESSES PRESIDENT IN LETTER FROM JAIL

A former assistant to Khaltamaa Battulga, currently incarcerated for suspected embezzlement from

the Ukhaa Khudag-Gashuun Sukhait railway project, has written a letter refuting claims of

corruption by President Tsakhia Elbegdorj. Mr. Battulga, the former head of the Ministry of Roads

and Transportation and the Ministry of Industry and Agriculture, is under investigation for millions

stolen from an account held by Samsung C&T, the lead contractor for the project. Battulga’s former

assistant, G. Tuvshinjargal, wrote in support of herself and former employer amid statements from

the president of their apparent guilt. “I wasn’t found guilty nor have I committed a crime; but it

seems to me that it’s already decided that I will be accused and sentenced because the democratic

President that I have been serving is now proclaiming me as a ‘criminal,’” reads the letter from

Tuvshinjargal.

“I am being repressed and separated from my baby, imprisoned for a crime I didn’t commit,” said

Tuvshinjargal, adding that she would begin a hunger strike.

Source: News.mn, UB Post

NAZI ACTIVISTS DEMONSTRATE AGAINST NUCLEAR WASTE BILL

A special session of Parliament was delayed amid protests about planned talks concerning

legislation regarding radioactive minerals and the launch of a nuclear energy industry. Talks by

lawmakers to discuss legislation that would set the stage for the commercial nuclear energy

industry were pushed back to an unspecified later time amid concerns from the public about the

consequences of an industry they see as dangerous and destructive. Outside the Parliament house,

30 representatives from activist groups including the extreme right wingers Bosoo Khukh Mongol and

Evlen Manduulakh Khuch demonstrated. Bosoo Khukh Mongol has a history of its members wearing

German Nazi paraphernalia and admitting to admiring the teachings of World War II dictator Adolf

Hitler.

Police officers removed the demonstrators after they poured yellow powder on the ground, fearing

that the contents might be the radioactive material known as yellow cake. “Our main concerns are

Mongolia is not ready to join the convention yet and the legal environment is not sufficient, said B.

Tumenjargal, the head of Evlen Manduulakh.

Source: UB Post, News.mn, Mongolia.GoGo.mn

NARCOTICS GANG LEADER ARRESTED

Police have arrested the head of a smuggling ring bringing narcotics into the country from China.

The arrest of Mongolian citizens carrying 40 grams of methamphetamines on 23 March by police at

the Zamyn Uud border port was the second bust this month of gangs attempting to bring illegal

drugs into the country. Earlier in March, suspects were caught trying to smuggle large amount of

methamphetamines informally known as “ice” on the street.

The leader of the gang caught last week has previously served eight years in prison. According to

authorities “ice” is brought cheaply from China and sold at between MNT300,000 and MNT400,000

per gram. From higher-quality product, it can be sold upward to MNT1 million a gram.

Source: Mongolia.GoGo.mn

PARTIES’ SPENDING CAPS ANNOUNCED FOR UB CITY COUNCIL CANDIDATES

Parties' spending for candidates running for office in Ulaanbaatar's city council will be capped at

MNT1.46 billion, according to an announcement from the Audit Office of Ulaanbaatar.

Elections for 45 districts will be held this year for the Ulaanbaatar Citizens Council, with spending

caps varying between MNT195.5 million and MNT105.4 million, depending on the size of the district.

In 2012, spending was capped at MNT2 billion with the highest cost from one individual coming to

MNT141 million.

Source: Unuudur

A NEW CHAPTER IN AUSTRALIA–MONGOLIA RELATIONS—EDITORIAL

In February 1987, a pair of junior American diplomats arrived in pre-democratic Mongolia to lay the

groundwork for establishing a U.S. embassy—no simple task in Ulaanbaatar, the world’s coldest

capital. When the embassy opened a year later, its American staff resided in a ramshackle

apartment building that they nicknamed “Faulty Towers.” Much has changed since then. Mongolia is

now home to Australia’s newest embassy, housed in a modern complex in central Ulaanbaatar.

Some 60 Australian companies have offices in Mongolia. And an estimated 200 Australian small and

medium-sized enterprises have provided services to the gargantuan Oyu Tolgoi copper mine. More

broadly, Australia and Mongolia share many common interests. Both nations are mineral-rich, free-

market parliamentary democracies. Mongolia’s “third neighbor” foreign policy sees it cultivate

relationships with countries other than the two giants it shares a border with, Russia and China.

Martin Foo is a research officer at the Australian Centre for Financial Studies (ACFS). He was

formerly a policy analyst at the Australian Treasury. The opinions expressed in this article are the

author’s own.

Source: East Asia Forum

MONGOLIA'S ‘THIRD NEIGHBOR' POLICY BLOOMS—EDITORIAL

While Mongolia is located in the northeast region of East Asia, its “third neighbor” foreign policy is

poised to allow Ulaanbaatar to boost bilateral and multilateral diplomatic relations with countries

around the world. The year 2015 marked increasing diplomatic engagement for Mongolia in East

Asia, the Persian Gulf, and even the Americas. Last year, the Mongolian Ministry of Foreign Affairs

(MFA) turned the “third neighbor” policy into bilateral dialogues and agreements with a number of

nations. The most important goal of Mongolia’s foreign and domestic policy is to become a major

energy source in the Far East. Mongolia’s “third neighbor” policy will play its part in the

exploitation of oil resources. In December 2015, for example, Mongolia and Iran signed an

agreement allowing Mongolia to import Iranian oil via Chinese companies.

Bolor Lkhaajav formerly worked as a Global Security Analyst with Horizon Intelligence (Hozint).

Source: The Diplomat

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 Summit is different from other conferences in terms of

diversity of topics and coverage, advocacy approach of collecting and reflecting the voice of the

business community in advance of the event and follow up of the Summit with proceedings to be

distributed widely to the public and political parties. The forum consists of a panel on international

finance and 5 sessions on mining & industrial supply; business strategies in an economic downturn;

capital markets; innovative business trends; UB city projects, the elections and a macro view of the

government since 2012. In conclusion is a summary of Summit proceedings including, most

importantly, a wrap-up of issues and recommendations from the business community targeted to

political parties and the next government.

BCM acknowledges the generous sponsorship of Transwest Mongolia LLC; ELC LLP Advocates;

Porsche Mongolia; Golomt Bank; Monpolymet; Trade and Development Bank; Valiant Art &

Interiors; Engie Mongolia; Wagner Asia LLC. Media sponsors: Bloomberg TV Mongolia; Mongolian

Economy Magazine; News.mn website and great support from Cover Mongolia; Mongolian

Business Database; North America-Mongolia Business Council; and Oxford Business Group.

BCM is inviting all members and speakers to voice their opinions on issues and recommendations on

which political parties should focus for the upcoming election in June. Responses will be collected

until 11 April. Submit your response by answering the following questions: (1) What are the top

issues and challenges of your business and sector that needs to be addressed by the next

government? (please list a maximum three issues) and (2) What are your recommendations on those

issues? Send directly to Bayarmaa@bcmongolia.org.

Why attend?

• Receive information on a wide spectrum of informative, meaningful and innovative topics that

will assist professionals and businesses in Mongolia to develop and grow in the coming years;

• Voice your opinion regarding common issues faced by the business community that need to be

addressed by the next government;

• Contribute to the Summit Proceedings to be provided to the government, political parties and

related public organizations for further action and consideration.

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

MNT120,000. For more information, email Saruul at saruul@bcmongolia.org.

_________________________________________

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.

_________________________________________

2016 COAL & METALS MONGOLIA, 6-7 MAY, UB

Join to learn about Mongolia's major infrastructure and coal assets at Coal & Metal Mongolia

conferences—now an annual event. Hear from Mongolian government officials and expand your

business contacts while learning about infrastructure in Mongolia and how to the capital investment

environment can become more competitive. Over 500 guests are expected and 80 companies

exhibiting their services.

For more information, call 9911-6135, 7011-5590. BCM members can receive a 10 percent discount

at registration by emailing saruul@bcmongolia.org for a special discount code.

NEW MONGOLIAN LAWS

Please click here to view the 68 laws, amendments, addenda and annulments to/of laws published

in the latest weekly Government Bulletin dated March 4, 2016. Unless otherwise decided by

Parliament, they will take effect ten (10) days after publication.

BCM ADVOCACY NOTES

Revisions to latest draft of Labor Law bill

Ministry of Labor has recently made revisions to the latest draft, particularly in areas of joint

agreement and annual leave. Currently, this draft is being reviewed and commented by other

Ministries. Labor Minister Bayarsaikhan.G reconfirmed his intentions to submit the draft for the

autumn Parliamentary session.

The latest draft can be found here.

BCM WORKING GROUP NEWS

Risk Working Group

BCM’s Risk Working Group’s meeting was held on Wednesday, 9 March at Suite 101, 12th floor

Express Tower, with 9 members in attendance, representing Mandal General Insurance, MIG

Insurance, XacBank, Wagner Asia, Bagatumurch LLC, State-owned Agricultural Reinsurance JSC and

National Emergency Management Agency.

Agenda of the meeting:

16:00-16:10 Introduction and Opening remarks by Risk WG Co-Chairs

16:10-16:50 Status Report on dzud condition in the countryside, Tuya Ch., Specialist, National

Emergency Management Authority of Mongolia/NEMA/

16:50-17:20 "Index-based livestock insurance scheme and Introduction of state-owned Agricultural

Reinsurance JSC", Enkhtaivan G., CEO of Agricultural Reinsurance JSC

Captain Tuya Ch., NEMA, gave the members a comprehensive overview of the dzud and dzud-like

situation in 18 aimags and 98 soums of Mongolia. As of 9 March 2016, the total tally of perished

livestock is 360,000. While this number is incomparable to the 2010’s record high loss of 6,310,800

livestock, Captain Tuya emphasized that at any dzud situation, it is the herders that are afflicted

the most as they are faced with enduring long cold days without basic medical assistance and the

ever-increasing need to tend after their cattle, their main source of income. Captain Tuya’s

presentation was complimented with a weather assessment presentation, which can be found here.

Specialist Oyunbat N., Agricultural Reinsurance JSC, presented the index-based livestock insurance

scheme and how it evolved into laying the very foundation of the state-owned Agricultural

Reinsurance JSC. Members were interested in knowing the reason behind the decline in the number

of policyholders, if the Agricultural Reinsurance JSC is exploring the bloodline insurance and the

JCS’s global reinsurers. Members in attendance were distributed “Mongolia: Dzud Emergency

Response Preparedness” snapshot by OCHA (Office for the Coordination of Humanitarian Affairs)

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

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Tax Working Group

BCM’s Tax Working Group’s 2016 kick-off meeting was held on Wednesday, 2 March at Suite 101,

12th floor Express Tower, with 16 members in attendance, representing Oyu Tolgoi, PwC, Deloitte

Onch Audit, Sumitomo Corporation Mongolia office, International SOS, WCS, MahoneyLiotta, Lehman

Lee & Xu and PATC.

Agenda of the meeting: 16:00 - 16:10 Opening remarks (Chair, Tsendmaa Choijamts, PwC) 16:10 -

17:00 Introducing new VAT law (Altankhorol O, Senior state tax inspector, Revenue department of

the General Department of Customs and Taxation) 17:00-17:30 Q&A session and discussion on TWG

plans for 2016 (Members, state tax inspector)

Ms. Altankhorol, General Department of Customs and Taxation of Mongolia, reviewed the newly

adopted Value-Added Tax (VAT) law of Mongolia, which took effect on 1 January 2016. The

presentation covered key policy changes, changes in the other related regulations and frequently

asked questions from businesses. Members in attendance were interested in the procedural changes

in the new VAT law, such as the registration and de-registration as a VAT payer, VAT-exempt goods

and services and VAT zero-rated goods and services.

Ms. Tsendmaa Ch, Tax Executive Director of PwC Mongolia, shared with the members Tax Working

Group’s draft plan for 2016. As Chair of Tax Working Group, MS Tsendmaa, informed the members

of the intent of engaging representatives from the government entities to the WG meetings in order

to learn more about legal and procedural changes and to exchange expert views with

representatives from government bodies.

Next meeting is scheduled for May. For more information about this meeting, please contact

Khulangoo Purevjav, Working Group Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Business Ethics Working Group

Business Ethics Working Group meeting was held on 1 March at Express Tower from 16:00 to 17:30

with 12 members in attendance representing Atlas Copco, Transparency International, Mandal

General Insurance, US Embassy, Wagner Asia, Deloitte Onch Audit, Asia Foundation, Valliant Art and

Interiors, World Vision and the Institute of Finance and Economics.

Agenda of the meeting: - Introduction of members and guests (Anders Berglund, Atlas Copco) -

Recap from the last meeting (Christine Hudetz, TI Mongolia) - Insurance sector transparency (Zaya

Bolorbold, Mandal Insurance) - Discussion on topics and plan for 2016 (Christine Hudetz, TI

Mongolia).

The meeting begun with recap of the last meeting: development of the draft plan for 2016 and

collective agreement on the need to reach-out for more local companies as members of the

Working Group. Given the delicacy of the issues the WG intends to cover at its meetings and the

subsequent low interest from BCM members to sign-up for this WG, nonetheless members have

agreed to continue with its meetings and aim to draw more attention from local companies.

Ms. Zaya, Mandal Insurance, presented an overview of the insurance industry and Mandal fight

against kickbacks and the adverse effects of kick-back culture within the industry. Attendees were

highly impressed with Mandal’s meticulous top-down approach against kick-backs, from its

philosophy to its hiring procedure. During the discussion time on plan for 2016, Wagner Asia has

volunteered for a presentation in November and Asia Foundation offered to share its study findings

on corruption in Mongolia.

Co-Chair reminded the members of the next meeting topic item: Gift giving policy on Tuesday, first

week of May. For more information about this event, please contact Khulangoo Purevjav, Working

Group Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Energy & Environment Working Group

BCM’s Energy and Environment Working Group’s 2016 kick-off meeting was held on Thursday, 25

February at the Open Society Forum’s meeting room with 17 members in attendance. Represented

were GGGI, US Embassy, XacBank, Mongolian Bankers’ Association, Arig Bank, Invest Mongolia,

Wildlife Conservation Society, Techenomics, Mongolian National Mining Association, Mongolian Wind

Association, Newcom Group, Economic Development Center and the newest addition to the Working

Group, the Institute of Energy Economics.

The meeting was organized under the theme of: "Green credit - private and public initiatives".

Agenda of the meeting:

- Sustainable Finance Initiative: Latest developments, progress towards private fund establishment,

Mr. Tumurkhuu, Head of Sustainable Finance Initiative Steering Committee and CEO of Arig Bank

- National concessions list: Latest developments, quick look at near-term projects, Mr. Ts.

Batbayar, Head of Concessions Division, Invest Mongolia

- Facilitated discussion on business implications of green finance and concessions opportunities in

Mongolia, Mr. Tumurkhuu, CEO of Arig Bank.

Mr. Tumurkhuu emphasized that the Sustainable Finance Initiative is in full swing with initial loans

being issued at 14 commercial banks of Mongolia since 2015. Mr. Batbayar, Division Head at Invest

Mongolia, shared latest developments on concession and the Agency’s efforts in improving the legal

environment for regulating concession issues in Mongolia. Mr. Jon Lyons, co-chair of the Energy &

Environment WG (EEWG,) facilitated the discussion on green finance and concessions opportunities

in Mongolia. Working Group members were mostly interest in the government’s guarantee to the

concessionaire and the updates of the Water Treatment Facility and CHP-ͷ concessions. As part of

BCM’s effort in increasing stakeholders from the government entities, Mr. Amarsanaa, Head of the

Institute of Energy Economics (IEE), an institute under the Ministry of Energy, attended the meeting

and agreed to introduce the IEE at the next Working Group meeting. For more information about

this meeting, please contact Khulangoo Purevjav, Working Group Coordinator of BCM at

khulangoo@bcmongolia.org.

_________________________________________

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

development of ‘custodian banking’ and how the WG can leverage its 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.

_________________________________________

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 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 Education Working Group

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

Business Center, 10F Galaxy Tower from 16:00 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;

Meeting minutes summary:

Opening remarks by Education Working Group Chair - Saha Meyanathan. Saha related 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: Nomin Jargalsaikhan

Presentation topic: "What successful people do in their free-time?"

Where & When: Institute of Finance and Economics, 31 March 2016

Nomin.J, Director at Mongolia Talent Network, was BCM’s second speaker at the Institute of Finance

and Economics. Her presentation titled "What successful people do in their free-time?" was

attended by 60 students from the Banking and Business Administration majors.

Ms. Nomin, who has background in psychology, shared remarkable observation and insight collected

from her interviews conducted with Executives from various industries. Ms. Nomin’s presentation

was comprised of a practical guide to making an efficient “to-do-list”, managing a regular working

day and creating own motivational icon. A record-breaking headhunter within the Mongolia Talent

Network, Ms. Nomin gave-away important tips to remember when writing a “stellar” cover letter

and common mistakes candidates make when giving a job interview.

For more information about this presentation and “BCM in the University Classroom” lecture series,

please contact Khulangoo P., Working Group Coordinator at khulangoo@bcmongolia.org.

_________________________________________

Guest Speaker: Narantuya Dangaasuren

Presentation topic: "Editorial policy-Print Media"

Where & When: University of the Humanities, 15 March 2016

Narantuya.D, Vice Director of News Agency, was BCM’s third speaker at the University of the

Humanities. Her presentation titled "Editorial policy-Print Media" was attended by 90 students from

the Journalism and ICT Faculty of the University of the Humanities.

Ms. Narantuya’s presentation began with current assessment of journalism in general and focused

on the print media and how it is evolving in a digital era. Her 20 some years of journalistic

background coupled with experience in managing Mongolia’s top-rated news website

(www.news.mn) gave Ms. Narantuya’s presentation more unique and a true voice of Mongolian

media. Students did not shy away from raising controversial questions such as the issue of biased

editorial contents and the rise of unethical journalism in Mongolia. Ms. Narantuya did acknowledge

the existence of such unfortunate situation; however she gave hope to soon-to-be journalists by

informing them of the active and budding enthusiasm of the newly formed Media Council of

Mongolia. The presentation is available here.

KNOWLEDGE SHARING SESSIONS

A BCM Knowledge Sharing Session was organized on 21 March in partnership with our member,

Corporate Governance Development Center (CGDC), on the topic "Methods for analyzing current

organizational strategy and identifying the strategic vision". The session was led by Enkhbold

Chuluunbaatar, Ph.D., business strategy manager at CGDC and a senior lecturer in the Department

of Business Administration at the Institute of Finance and Economics. His research interests include

entrepreneurship, culture and creativity, and strategy management. The focus of the session was

given on how to define organizational vision based on identifying organizational resources and

assessing factors that create value in the organization. A total of 15 people representing 12 member

companies attended the session.

COOPERATION & MEMBER DISCOUNTS:

- Oxford Business Group (OBG) offers BCM members and the 1st Annual BCM Summit participants a

complimentary read-only, online subscription to all of OBG’s digital reports

- Axel Fischer Academy offers 20% discount to BCM members on “Equipping your rising star Leaders”

in a three months training

- PROSUM LLC offers 10% discount to BCM members on promotional products they distribute from

European producers

- Corporate Governance Development Center (CGDC) offers 20% discount on all of its trainings to

BCM members

- News.mn offers 20% discount of its products and services for BCM members

- Mongolian Economy offers 50% discount for its advertisements & paid articles on website and 55%

subscription discount on its online magazine for BCM members

- NPC&Mandal offers 20% discount to BCM members

- Birches Group offers 10% discount on Mongolia Compensation and Benefits Survey for BCM

members

- New Media offers 25-50% discounts to BCM members on its online accounting software, E-

commerce platform, web & mobile application development and job searching software.

For more information about announcements and discounts, click here or contact Otgongerel,

Partnership Manager at otgongerel@bcmongolia.org.

MEMBERS’ VACANCIES

- World Vision Mongolia is hiring Finance Officer & Finance Assistant. Deadline for Application:

before 5:00pm on Wednesday, April 6, 2016. For more information: contact 7015-5323 (Ext:124, 125

& 128)

- Euro Khan is hiring a Sales Engineer. For more information: contact at 11-325867, email:

info@euro-khan.com

- Atlas Copco Mongolia LLC is hiring a Sales Engineer. For more information: contact at +976

70129294 or send your CV to e-mail address anders.berglund@mn.atlascopco.com

For more information about vacancies, click here. To post your vacancy on BCM website, contact

Dolgorsuren at dolgorsuren@bcmongolia.org.

WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS

PRESENTATIONS:

BCM Monthly Meeting, 28 March:

- Steve Rose, General Manager, Cummins Mongolia Investment - "Cummins supporting Mongolian

customers"

- Barrie Evans, Director, Churchill's - "Their life in your hands"

- P. Tsagaan, Chief of Staff, Office of the President - "Update on ASEM"

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”

_________________________________________

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)

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INTERVIEWS:

- VIP76 website, March 2016, “BCM Monthly meeting coverage”

- Jim Dwyer, Executive Director, BCM, Bloomberg TV, 27 January 2016, "Business community calls

for political stability

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WEBSITE:

"According to Google Analytics report, as of 14 March, the daily web traffic to the BCM website

was 73 visitors with 115 sessions. 90% were from Mongolia, 2% from United States and 2% from

Sweden."

SOCIAL NETWORKS

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

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

improving each day with BCM.

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

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

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

https://twitter.com/bcmongolia.

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

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

LinkedIn page.

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

Social stats: BCM now has 11,871 fans on our Facebook fans page, 1,986 connections on

LinkedIn network, and 2,020 followers on Twitter.

_________________________________________

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."

Elisabeth Ellis, a partner at Minter Ellison LLP was featured in November 2015 edition in the article

titled "In Order to Make the Labor Law More Effective."

_________________________________________

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

From January 2013 to March 2016 we posted a total of 111 news items related to BCM activities,

economic and business related updates.

_________________________________________

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

from BCM events.

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

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

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

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

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

photos, videos and announcements regarding BCM.

ECONOMIC INDICATORS

INFLATION

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

Year 2007 *15.1% [source: NSOM]

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]

February 29, 2016 *2.0% [source: NSOM]

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

Note: 1.6% y-o-y, 3.5% Core - Ulaanbaatar City, February 29, 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 – 31 March 2016

Currency Rate

US dollar USD 2,048.90

Euro EUR 2,322.22

Japanese yen JPY 18.23

British pound GBP 2,939.25

Hong Kong dollar HKD 264.23

Chinese Yuan CNY 316.86

Russian Ruble RUB 30.24

South Korean won KRW 1.79