BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 277 – June 7, 2013

NEWS HIGHLIGHTS:

Business

Erdenes TT awards West Tsankhi servicing contract;

Salkhit wind farm slated to open on 20 June;

Prophecy inks 25 year offtake agreement;

Pelicana Chicken launches in Mongolia;

ABB to supply electrical equipment for copper project;

Guildford Coal nears production at South Gobi project;

Wolf Petroleum gaining clearer picture of petroleum block;

UTM to acquire interest in Ochiriin gold prospect;

MEC reports on continued Leighton dispute;

Tax Authority reports on companies owing most tax;

Sharyn Gol makes board appointment;

Guildford appoints new CFO;

Centerra reopens Kumtor mine;

Centerra, Kyrgyz government consider JV ownership of Kumtor mine.

Economy

ADB commits up to USD 200 million for UB ger districts;

New factory to produce home materials;

Russia approves worker exchange program;

Artisinal miners form professional organization;

Artisinal miners put health before wealth;

Mongolia to push renewables as climate change bites, says president;

Energy industry fills in the gaps;

World Environment Day puts spotlight on food waste across the globe;

After years of superior returns, mining faces crisis in confidence;

Mongolia's Gobi bear clings to existence;

Australia aid helps save snow leopards;

Endangered Przewalski horse foal born in United States;

China's rising economic empire.

Politics

1.89 million voters registered;

6,000 absentee voters registered abroad;

Latest Minerals Law draft grants governors approval for exploration licenses;

CMTU elects new president;

Standing Committee on Economy to present to Parliament on rail gauge usage;

Mining minister proposes seven new strategic deposits;

MPP backs laws for allowances to mothers, students;

Law proposes tax exemptions for wood supplies for construction;

Mongolia holds International Marathon to observe World Environment Day;

Mongolian, Canadian defense ministers agree on defense cooperation;

China education exhibition opens to entice Mongolian students;

Belarus suggests drafting road map of joint projects with Mongolia;

Court postpones MIAT trial;

10 years in prison for credit card fraud;

UB extends nightclub hours;

UNICEF’s Global Report on Children with Disabilities.

ECONOMIC INDICATORS

MSE Top 20 Index by market Capitalization;

Foreign-listed Companies with Mongolian Assets;

Inflation;

Central bank policy rate;

Currency rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank

Major Drilling

International SOS

Wagner Asia Automotive

Wagner Asia Equipment

Oxford Business Group

Mongolian National Broadcasting

Breakthrough PR

BUSINESS

ERDENES TT AWARDS WEST TSANKHI SERVICING CONTRACT

Erdenes Tavan Tolgoi LLC on 31 May awarded Tavan Tolgoi Trans and the so-called Mongolia 999

National Consortium a tender for the servicing of mountain work at the Tavan Tolgoi Western

Tsankhi project. The 999 National Consortium is a partnership between three companies.

In addition to those awarded the tender, Erdenes Tavan Tolgoi received applications from Khishig

Arvin Industrial LLC, Mera LLC, Absolute Mining LLC, Eibir Digma Mongol Last LLC, and Monlaa LLC.

Source: Udriin Sonin

SALKHIT WIND FARM SLATED TO OPEN ON 20 JUNE

An opening ceremony for the 50-megawatt Salkhit wind farm has been scheduled for 20 June.

Clean Energy LLC, a subsidiary of Newcom Group, led development of the MNT 175 billion, 12,800-

hectare wind farm facility based in Sergelen Soum, Tuv Aimag. The facility currently houses 27 wind

turbines, with four more planned for installation before the commissioning date. Each turbine

weighs 245 tons with a height of 80 meters and 39.8-meter-long blades.

Mongolia plans to connect the wind farm to the country's central energy grid, producing about 4

percent of the country's energy needs. The facility will also reduced carbon emissions by 164,000

metric tons.

Source: News.mn

PROPHECY INKS 25 YEAR OFFTAKE AGREEMENT

Energy project developer Prophecy Coal Corp. on Wednesday said two of its Mongolian subsidiaries—

Chandgana Coal, which is developing a coal mine, and Prophecy Power Generation (PPG), which is

developing a 600 megawatt mine-mouth Chandgana power plant project—have signed a coal supply

agreement (CSA).

Under the CSA, Chandgana Coal would supply 3.6 million tons of coal a year, at a price of USD 17.70

per ton for a period of 25 years. For Chandgana Coal, the CSA secured a long-term next-door

customer on attractive and extended terms that would provide stable cash flow returns through the

first 25 years of the mine.

The CSA's coal price was competitive with Mongolian domestic thermal coal prices and would be

subject to yearly indexing, based on the U.S. consumer price index, the Mongolian wage index, and

the Mongolian diesel price index. PPG has also committed to buy a minimum of two million tons on

a ―take or pay‖ basis, with customary breakup fees payable by PPG. The agreement provided for

first coal to be delivered in the second half of 2016, subject to PPG signing a power purchase

agreement, obtaining all necessary government approvals, and project financing.

Prophecy Coal said signing the CSA marked another critical project milestone to developing the

synergetic operations. Besides a bankable power purchase agreement (PPA), a stable and

guaranteed fuel supply for its proposed coal-fired power station was required to obtain project

financing from equity partners and banks.

The CSA had been approved by Prophecy's independent directors, who, after studying various coal

supply options to the proposed Chandgana power plant, concluded that the coal supply from

Chandgana Coal, with existing licenses to mine the coal from the Chandgana Tal project next to the

proposed power plant site, represented a practical and cost effective solution to meet

commissioning of a power plant targeted for 2016.

Source: Mining Weekly

PELICANA CHICKEN LAUNCHES IN MONGOLIA

Pelicana Chicken, the first chicken franchise in Korea, is making forays into Mongolia. The company

announced on 4 April that is signed a master franchise contract with Capital Market LLC of

Mongolia.

Capital Market, founded in 2001, is a retail-specific Mongolian company. Capital Market has an

exclusive right to sell inside Mongolia the products of Tyson Foods and Dole Food Co., large meat

processing companies in the United States. After further negotiations, Pelicana plans to set up its

own factory in Mongolia in order to realize a local supply chain. Capital Markets plans to open the

first Pelicana store in Ulaanbaatar.

Source: Korea Economic Daily

ABB TO SUPPLY ELECTRICAL EQUIPMENT FOR COPPER PROJECT

Facing tough climatic conditions in Mongolia's eastern Gobi desert, ABB Group is placing an

electrical equipment package in the greenfield copper and molybdenum project, Tsagaan Suvarga.

The automation and power company won the order from Mongolyn Alt Corp., one of Mongolia's

largest national mining companies, with three open-pit coal mines in operation. With a targeted

production volume of 40,000 tons of copper per day, the Tsagaan Suvaraga project is expected to

become the third largest copper mine in Mongolia.

Integrated into pre-fabricated containerized E-houses, ABB's scope of supply includes 22/6.6 kilovolt

switchgears, DC power supply, uninterrupted power supply, transformers, 400 volts motor control

centers, variable-speed drives, and a power management system based on System 800xA process

control and IEC 61850. The incorporation of the equipment into pre-fabricated E-houses reduces the

erection work on site, optimizing the overall time schedule. The solutions are proven for stable

operations under extreme variations in temperatures of -35 to 40 degrees Celsius.

―ABB's electrification solutions will allow Mongolyn Alt Corp. to achieve optimal operational

conditions to reach highest production at lowest energy costs,‖ said Giuseppe di Marco, head of

ABB's mining business. ―Our well-established relationship with the customer, the early involvement

in basic engineering, as well as the ability to provide first-class equipment for use under extreme

climatic conditions, were major factors for winning this order.‖

Source: Automation World

GUILDFORD COAL NEARS PRODUCTION AT SOUTH GOBI PROJECT

Guildford Coal Ltd. has now commenced production activities at the South Gobi open-cut coking

coal mine in Mongolia, with overburden being removed to just above top-of-coal.

Coal mining will proceed once surface infrastructure is in place and conformance of mining

operations and facilities with submitted plans is verified. The project consists of five tenements

located in Umnugobi Aimag.

The licenses are well-situated to tap the end-user market, due to being just 60 kilometers from the

Chinese border station of Ceke, where coal from Mongolia is currently transported through to China.

The South Gobi North Pit has the potential to ramp up to produce in excess of three million tons per

year from an open-cut coking coal operation. The East Pit has the potential to deliver an additional

two million tons annually from an open-cut coking coal operation.

Source: Proactive Investors

WOLF PETROLEUM GAINING CLEARER PICTURE OF PETROLEUM BLOCK

Wolf Petroleum Ltd. has redefined four sub-basins within its Sukhbaatar petroleum block in

Mongolia after reprocessing and re-interpreting gravity and magnetic data collected earlier in 2013.

The company has also completed a remote sensing program, which incorporated reprocessed gravity

and magnetic data with satellite imagery and digital elevation model data. Three of the sub basins

are more than 4,000 meters deep, with Cretaceious-aged rocks, which are the main rocks from

which petroleum in Mongolia is produced.

Notably, all four of the sub basins have areas of high heat flow, which can enhance hydrocarbon

cracking and migration, while alteration minerals commonly found near petroleum seep areas have

also been identified.

Wolf's geological team is now working in the field and verifying the remote sensing results. The

company has now started its second phase of exploration working, including additional geological

studies and acquisition of 2D seismic.

Source: Proactive Investors

UTM TO ACQUIRE INTEREST IN OCHIRIIN GOLD PROSPECT

Undur Tolgoi Minerals (UTM) Inc. announced that it had reached a definitive agreement to subscribe

75,950 common shares representing 5.05 percent of Luxembourg's Anya-2 Sarl for USD 125,000.

Under the agreement UTM shall be entitled to subscribe for additional shares of Anya, so that its

aggregate shareholding in Anya may reach 30.25 percent. Anya is a wholly owned subsidiary of

Hulaan Coal Corp., a private Canadian company. Anya in turn owns 66 percent of Western Minex

LLC, a private Mongolian company, which in turn owns the Ochiriin Bulag gold prospect.

―This unique opportunity was a direct result of long-standing professional relationships in

Mongolia,‖ said James Passin, UTM's chairman. ―This season's work program should provide the

company and its shareholders with a compelling 2013. We are excited about our participation in

what could be an emerging new gold province immediately adjacent to a border crossing with

China.‖

The project property is 232.7 square meters located 10 kilometers from the Chinese Bataag border

crossing and near the provincial center of Bulgan Aimag. It was originally geologically mapped by

Russians in the 1980s, and an Ikonas aerial program was completed in 2011. UTM management and

their technical advisors have identified a significant gold anomalism and believe the Bulag project

has the potential to host a large gold discovery.

Source: Undur Tolgoi Minerals Inc.

MEC REPORTS ON CONTINUED LEIGHTON DISPUTE

Leighton Asia has served a second writ of summons to Mongolia Energy Corp. (MEC) Ltd.

MEC has filed its opposition and a date for a hearing for a first writ of MNT 12.16 billion (USD 8.5

million) has been fixed which will be heard on 10 July 2013. It has instructed its legal advisor to

oppose Leighton's claims in the coming hearing. Apart from the first writ, Leighton duly served

another writ of summons on the company through MEC's legal advisor on 30 May 2013, claiming for a

sum of MNT 7.7 billion (USD 5.4 million), allegedly for contractor's fees incurred from September

2012 up to December 2012. MEC disputes and will contest the claims.

Source: Mongolia Energy Corp. Ltd.

TAX AUTHORITY REPORTS ON COMPANIES OWING MOST TAX

The General Taxation Authority revealed the names of nine companies owing large sums in taxes.

GTA said these companies owe between MNT 800 million and MNT 20 billion, with Altain Khuder and

Olon Ovoot Gold topping the list. Olon Ovoot owes over MNT 9 billion after earning MNT 600 billion

since 2010. The list of companies also shows MNT 2 billion owed in taxes by Japanese investment

firm MJH, MNT 15.5 billion by Altain Khuder, and MNT 3 billion by the Chinese iron-ore company

Boldtumur Eruu Gol.

Source: Zuunii Medee

SHARYN GOL MAKES BOARD APPOINTMENT

Sharyn Gol JSC announced the appointment of Kenneth Farrell to its board of directors.

Farrell is the chief executive of Bumi Resources Minerals, the largest publicly traded Indonesian

mineral company, and executive director of Bumi Resources, Indonesia's largest listed coal mining

company. Prior to joining Bumi Resources in 2002, Farrell worked for BHP Billiton for 21 years in

various executive and management capacities in iron ore, transport, manganese and coal business

units.

The company also announced that it had received unqualified 2012 and 2011 financial statements

and an unqualified financial report for 2010 from Ernst & Young Mongolia Audit LLC. Sharyn Gold

believes that it is the only company listed on the Mongolian Stock Exchange (MSE) with a three-year

history of unqualified financial results from a Mongolian affiliate of a Big 4 international auditor.

―The unqualified financials validate Sharyn Gol's aim to present its results in an accurate and

transparent manner consistent with international accounting standards,‖ said Graham Chapman,

chief executive officer.

Source: Sharyn Gol JSC

GUILDFORD APPOINTS NEW CFO

Guildford Coal Ltd. announced the appointment of Michael Wotherspoon as chief financial officer.

Wotherspoon is a chartered accountant and a member of the Institute of Chartered Accountants of

Australia and a member of the Australian Institute of Company Directors. He comes to Guildford

with finance and executive leadership experience as a former chief financial officer of Actis, a

leading emerging markets private equity firm, and most recently chief financial officer of Tinkler

Group Holdings, a diverse group with significant focus on the resources sector. Earlier in his career

he worked for approximately 10 years with Ernst & Young as a professional advisor to the firm's

clients in Australia, the United Kingdom, the United States, and India.

Source: Guildford Coal Corp.

CENTERRA REOPENS KUMTOR MINE

Canada's Centerra Gold Inc. has resumed operations at its Kumtor mine in Kyrgyzstan, where the

government had declared a state of emergency last week to protect the mine from protesters. The

company re-established road access to the mine on Saturday and national grid power has been

restored.

―The mine and mill have resumed operations as truck convoys are now able to bring supplies and

consumables to site and personnel can be moved to and from the mine,‖ Centerra said on Sunday.

Police on Friday cleared away demonstrators who had been blocking the road to Kumtor for days

and arrested 92 people, Prime Minister Zhantoro Satybaldiyev told a news conference. A few hours

later police used tear gas and stun grenades in clashes with villagers who tried to seize a substation

and cut power supplies to the mine, a police spokesperson said. Hundreds of villagers had blocked

the road to Kumtor, in Kzhety Oguz district, on Tuesday afternoon and threatened to move on the

mine if the government did not tear up its agreement with the company.

President Almazbek Atambayey imposed the state of emergency and a curfew on Dzhety Ohuz

district of the Issyk Kul region until 10 June, his office said.

The villagers had put forward a list of demands to Centerra Gold, which also operates the Boroo

gold mine in Mongolia, varying from building roads and a kindergarten and laying water pipelines to

giving them long-term loans, offering them jobs at Kumtor, and buying equipment for local

hospitals. Centerra Gold, which alone contributed 12 percent to Kyrgyzstan's gross domestic product

in 2011, is under immense pressure in the Muslim nation of 5.5 million. Kyrgyz nationalist deputies

and groups are calling for the nationalization of the mine—the biggest gold venture run by a

Western company in Central Asia—and its parliament has set a deadline of 1 June for the

government to renegotiate or repudiate a 2009 deal struck with Centerra to operate Kumtor. A

state commission said the gold miner had been paying too little to run Kumtor and accused it of

causing environmental damage.

Source: Mining Weekly

CENTERRA, KYRGYZ GOVERNMENT CONSIDER JV OWNERSHIP OF KUMTOR MINE

Canadian miner Centerra Gold Inc. on Tuesday confirmed it was in talks with the Kyrgyz government

to form a joint venture that would own its flagship Kumtor mine.

The parties were currently considering a potential restructuring transaction under which

Kyrgyzaltyn JSC would exchange its 32.7 percent equity interest in Centerra for an interest of

equivalent value in a JV company that would own the mine.

The Kyrgyz parliament had decreed that the project agreements, which were signed in 2009, should

be revised, while Centerra was also dealing with multi-million dollar environmental claims.

Source: Mining Weekly

ECONOMY

ADB COMMITS UP TO USD 200 MILLION FOR UB GER DISTRICTS

Asian Development Bank (ADB) plans to loan between USD 150 million to USD 200 million to the

government for the development of the ger districts of Ulaanbaatar.

ADB presented its development plans for the ger districts during a city representatives meeting. In

addition to the loan, the ADB has offered a grant of USD 3.7 billion to improve the city plumbing

and water management infrastructure.

The Ulaanbaatar City Council has requested up to USD 500 million in loans, and agreed to USD 130

million for the first phase of development. ADB is set to provide USD 100 million of lending for that

first phase, while the remaining USD 30 million would come from the Mongolian government.

Source: Zuunii Medee

NEW FACTORY TO PRODUCE HOME MATERIALS

A new home materials factory will be commissioned next year that will help produce better quality

homes in Mongolia.

―After construction of the Home Production Factory, it will begin producing all the components of

buildings, including ceilings, stairways, and home exteriors,‖ said B. Tsedensamba, head of

construction and construction materials production policy implementation at the Urban

Development Ministry.

Tsedensamba said MNT 14 billion of last year's USD 1.5 billion Chinggis bond would be used for

construction of the factory, making up a third of total expenses. The remaining 70 percent would

come from the company leading its development and construction. He added that the factory would

make use of German technology that has proven more effective than the traditional Russian

technology used in Mongolia. He said the technology was commonly used in countries such as

Germany, the United States, and Japan.

Source: Udriin Sonin

RUSSIA APPROVES WORKER EXCHANGE PROGRAM

The upper house of Russia's Duma has adopted a cooperative agreement with Mongolia for a worker

exchange program.

The law provides temporary employment while providing legal rights to Mongolian and Russia

citizens. The program would last for a period of five years and holds the companies responsible for

providing health, safety and social services, whereas the state will take charge of labor and

demographic regulations.

Source: Undesnii Shuudan

ARTISINAL MINERS FORM PROFESSIONAL ORGANIZATION

An artisanal small-scale mining (ASM) group was formed in early May during a first conference ever

convened by artisanal miners.

The conference, held at the Government Palace, drew artisanal and small-scale miners from

throughout the country to formalize their profession with the ASM National Umbrella Organization.

The gathering aimed to ensure safe working conditions, secure incomes, promote responsible

mining practices, protect the environment, ensure equal benefits for natural resources, protect

miners‘ rights, and give a forum for their voices to be heard.

―The first thing we have to do is land rehabilitation and reclamation,‖ said O. Tsetsegmaa,

executive director of the Mongolian ASM National Umbrella Organization. ―We have a responsibility

to retain the integrity of the land and soil for future generations.‖

Source: Swiss Agency for Development and Cooperation

ARTISINAL MINERS PUT HEALTH BEFORE WEALTH

Behind the unassuming brick walls of a remote compound in Mongolia's Mandal district lies what

may be part of the solution to the pressing health challenge posed by the use of mercury in

artisanal small-scale gold mining.

Mercury is a powerful neurotoxin that is especially harmful to developing fetuses and young

children. Once emitted, mercury can travel great distances through the atmosphere, causing global

contamination of ecosystems, animals and the human food chain.

Despite the dangers, miners continue to use mercury. This year's U.N. Environment Programme

(UNEP) Global Mercury Assessment found that small-scale gold mining accounts for 35 percent of

mercury emitted into the air and directly threatens the health of an estimated 15 million miners in

70 countries—mainly in Africa, Asia and South America. However, some of the roughly 100,000

Mongolian small-scale gold miners now have an alternative: mercury-free processing facilities.

―While Mongolia banned mercury use in small-scale mining in 2008 to help protect its population

and environment, mercury is still used here,‖ said Brenda Koekkoek, program officer in the

chemicals branch of UNEP.

The Artisanal Gold Council, a non-profit organization dedicated to improving the sector, estimates

that approximately 11 tons of mercury is used each year in Mongolia. Koekkoek sees the facility as

part of the solution to continued use and a model for others to follow, particularly since many

nations will soon have obligations under the Minamata Convention—a global treaty on controlling

mercury use, emissions and releases agreed in January after four years of negotiations convened by

UNEP.

The Mandal plant operates 24 hours, seven days a week to cope with the steady stream of miners

filing in to pay USD 10 per ton to have their ore processed. The recognition of small-scale mining as

an important livelihood is why the Ministry of Mining has been working on formalization of the

sector and sees such facilities as crucial until they can transit these miners to other sectors.

Source: United Nations Environment Programme

MONGOLIA TO PUSH RENEWABLES AS CLIMATE CHANGE BITES, SAYS PRESIDENT

Mongolia, which is banking on a mining-led investment boom to develop its economy, is aiming to

turn itself into a regional renewable energy hub as it tries to fight off the pressures of global

warming, the country's president said.

―Mongolia is regarded as one of the centers of this region for wind power. We have high mountains

and the Gobi. We have great potential to generate power,‖ President Tsakhia Elbegdorj told

reporters. ―We have some ideas of how Mongolia can be Asia's super grid for wind power and solar

power, and other renewable energies. If we use all the wind power (potential) in the country, we

can enhance the energy supply of China and all over Asia.‖

Mongolia was chosen to host the U.N.'s World Environment Day on 5 June, and at a news conference

to mark the occasion, officials said the country also planned to better regulate a mining sector that

is polluting an already fragile environment. But the country faces tremendous environmental

challenges as the country is being dug up by both licensed and unlicensed miners, causing pollution

and poisoning some lakes and rivers. The World Bank ranked Ulaanbaatar among the world's most

polluted cities during winter, a consequence mostly of coal burned by residents to stave of

temperatures often reaching -30 degrees Celsius.

Mongolia is suffering ―more pasture degradation, permafrost thawing, and glacial melt,‖ said

Environment and Green Development Minister Sanjaasuren Oyun. Achin Steiner, head of the U.N.

Environment Programme said Mongolia had seen average temperature rise 2.1 degrees Celsius in the

past 60 to 70 years—about three times faster than the global average. Its high altitude and sparse

vegetation in many regions made the nation vulnerable.

Oyun said she was introducing new environmental regulations, including obliging companies to pay

compensation for the use and consumption of non-extracted resources such as water and timber.

She said the money would go to communities where those resources were consumed, with a portion

dedicated to environmental issues such as reforestation or repair of mined lands.

Source: Reuters

ENERGY INDUSTRY FILLS IN THE GAPS

Mongolia is attracting great interest thanks to its astonishing, barely exploited mineral wealth and

its rapid economic development: the International Monetary Fund forecasts Mongolia's gross

domestic product will grow on average by 14 percent every year between now and 2016.

Its economic transformation brings with it a critical need to modernize the country's aging energy

infrastructure and expand its power and heat distribution systems. Since the third quarter of 2009,

indigenous power generation has failed to meet Mongolia's ever-increasing electricity needs.

Two major power projects illustrate the scale of Mongolia's efforts to partner with the private

sector to address this shortfall and diversify procurement methods: the combined heat and Power

Plant No. 5 in Ulaanbaatar and the Salkhit wind farm in Tuv Aimag. Both are being developed on a

project finance basis, but using different methods. Power Plant No. 5 is being tendered as a

private-public partnership (PPP) by the State Property Committee, with the assistance of the Asian

Development Bank, under a government concession model. In contrast, Salkhit was developed

privately by the Clean Energy subsidiary of the Mongolian conglomerate Newcom LLC.

The Concessions Law provides a completed framework for implementing concessions in Mongolia.

This includes approving projects, recognizing a variety of concession structures, and putting in

place a tender process. The law addresses several elements that the government of Mongolia

recognizes are important in order to achieve a successful international project financing. These

include the structure of the concession tariff, security interests regarding the project and its

revenues, and government support in the form of guarantees or other financial support.

Through the Concessions Law and the Renewable Energy Law, the government of Mongolia has

provided a solid basis for developing and financing infrastructure projects in Mongolia under both

PPP and purely private initiatives. Many new projects are being considered and discussed in the

marketplace.

Source: DLA Piper

WORLD ENVIRONMENT DAY PUTS SPOTLIGHT ON FOOD WASTE ACROSS THE GLOBE

Thousands of people across the world celebrated World Environment Day (WED) on Wednesday with

this year's theme of cutting the world's staggering amount of food waste.

The 5 June celebration was hosted by Mongolia this year with the theme ―Think. Eat. Save. Reduce

your Foodprint.‖ According to the U.N. Food and Agriculture Organization (FAO), a co-partner of the

United Nations Environment Programme (UNEP), which organizes this movement, an estimated one-

third, or 1.3 billion tons, of all food production ends up in the garbage of farmers, transporters,

retailers and consumers alike. This is not only a waste of food, but also a waste of the natural

resources used along the production and supply chain process. It also leads to the release of

greenhouse gas emissions in the atmosphere for no significant purpose.

The two organizations are now encouraging people to think about food in a whole new light, to be

more conscious of the simple decisions revolving food. For example, FAO and UNEP said to produce

one hamburger, 16,000 liters of water are used. For every hamburger that is thrown out, that is

16,000 liters of water that could have been used elsewhere. The 1.3 billion tons of food wasted

each year is enough to feed the 870 million people who go hungry daily.

In Mongolia, the 2013 host country, food waste is a rare occurrence. The country is steep in food

preservation traditions due to the influence of its large nomadic population, who, through the

centuries, have devised ways to store food for long stretches of time. UNEP and FAO point to

Mongolian practices as possible solutions to current food problems.

To commemorate WED, UNEP with the World Resources Institute released a paper on ―Sustainable

Food Futures,‖ solutions to reduce food waste and food loss. Different celebrations were also held

around the globe. Also, over half a million people registered their own personal activities online for

the event. Those registered participated in the WED Thunderclap,‖ a unique communications

feature that will send a resounding message to the world.

Source: Eco-business.com

MONGOLIA'S GOBI BEAR CLINGS TO EXISTENCE

There are only 22 Gobi bears left in the world, a paltry number that could easily vanish before the

next generation matures. With only eight females and 14 males left to sustain their existence, these

rare bears can barely stay afloat in their own gene pool.

But thanks to the United Nations Environment Programme (UNEP), the Gobi bear—also known as

Mazaalai in its native Mongolia—may have one last lease on life. Not only has UNEP and Mongolia

labeled 2013 ―The Year of Protecting Mazaalai,‖ but it has run an awareness campaign about the

bears tied to World Environment Day on 5 June. Mongolia is the host country for Environment Day

2013, giving the bears a much-needed moment in the sun.

Source: Mother Nature Network

AUSTRALIA AID HELPS SAVE SNOW LEOPARDS

Snow leopards are found in the wild in the rugged mountains of Mongolia, as well as Bhutan, China,

India, Kazakhstan, the Kyrgyz Republic, Nepal, Pakistan, Russia, Tajikistan and Uzbekistan. Humans

are their biggest danger, but a former park ranger from Bhutan hopes to mitigate that threat,

thanks to Australian help.

Researchers and conservationists reckon there may only be between 3,000 to 6,000 left in the wild.

But former park ranger, Tenzin Phuntsho, who volunteers at the zoo while studying film making in

Canberra on an Australian government scholarship, says he's working on a plan to help conserve the

small cats that have big feet for walking on snow.

Phunsho, who hopes video will reach a nomadic population who is 95 percent illiterate, said

leopards eating domestic stock had just been a part of life. Even if one killed a yak, there would be

no retaliation, he said. But more people are moving into the alpine areas of the Himalayas and

since yaks are a trapping of wealth, there are a lot more about for leopards to eat.

I am a bit afraid now because... people are changing and snow leopards are becoming more of a

threat,‖ Phuntsho said. He said people are becoming more aggressive, and ―I fear they might

retaliate one day.‖

Losses to poaching were most severe in the former Russian republics during the 1990s and have

declined. But an illegal trade continues as demand for body parts from China is growing.

Source: Brisbane Times

ENDANGERED PRZEWALSKI HORSE FOAL BORN IN UNITED STATES

The United States' Denver Zoo celebrated the birth of an endangered Przewalski's horse foal—the

first birth of its species at the facility since 1991.

Zoo officials say the unnamed foal was born Friday and can be seen from the zoo's main pathway.

The zoo says Przewalski's horses, also called Mongolian wild horses or Asiatic wild horses, are only

found on reserves in Mongolia and China and in zoos around the world. The species was extinct in

the wild for almost 30 years before reintroduction projects began in the early 1990s.

Source: San Francisco Gate

AFTER YEARS OF SUPERIOR RETURNS, MINING FACES CRISIS IN CONFIDENCE

Global mining net profit declined by some 49 percent to USD 68 billion last year, as lower

commodity prices and higher costs hurt the bottom line, PriceWaterhouseCoopers (PwC) reported

―The first four months of 2013 have been rougher and tougher than at any time in the past decade,

with market values plunging USD 220 billion, or 18 percent from 37 of the world's top 40. After

years of outperformance and superior returns, the industry is now facing a crisis in confidence,‖

PwC Australia's mining leader Jock O'Callaghan said.

This crisis in confidence has also translated into board changes, with half of the top ten companies

having their chief executives replaced in the last 12 months. The PwC report stated that the market

had, among others, lost confidence that costs could be controlled, that new chief executives could

deliver on promises, that commodity prices would not collapse and that resource nationalism would

not overwhelm the industry.

The 40 biggest mining companies bumped up production volumes by 6 percent in 2012, but after

softer commodity prices revenue of USD 731 billion was only the second year in a decade that

mining revenue did not increase. Operating costs have grown faster than production, with cost

inflation in double digits. Employee numbers rose 2 percent, but average employee costs were up

13 percent.

On the demand side, the long-term fundamentals were still in place, PwC said, adding that China

consumed around 40 percent of global metal production and would continue to be the industry's

most important customer. While Chinese growth rates were slowing down, they were coming from a

bigger base. This, combined with the continued emergence of large developing economies such as

Brazil, India and Indonesia, meant future demand for commodities was healthy.

Source: Mining Weekly

CHINA'S RISING ECONOMIC EMPIRE

The combination of a strong, rising China and economic stagnation in Europe and the United States

is making the West increasingly uncomfortable.

By buying companies, exploiting natural resources, building infrastructure and giving loans all over

the world, China is pursuing a soft but unstoppable form of economic domination. Government

support, through hidden subsidies and cheap financing, gives Chinese state-owned firms a major

advantage over competitors. Since 2008, the West's economic downturn has allowed them to gain

broad access to Western markets. On the contrary, European governments dealing with their own

economic crises see China as a country that can help, either by buying sovereign debt or going

ahead with investments in their countries that will create jobs. While Western companies complain

about barriers to public procurement and bidding and struggles to compete in restricted sectors in

China, Chinese companies enjoy red carpet treatment in Europe, buying up strategic assets and

major companies such as Volvo.

The loans that Beijing is giving worldwide are even more significant, in dollar terms, than direct

foreign investment. China's policy banks are the key institutions supporting China's ―Go global‖

strategy, as they provide billions of dollars in loans to foreign countries to acquire Chinese goods,

finance Chinese-built infrastructure, and start projects in the extractive and other industries. This

is clearest in countries where the West claims to link its aid to human rights and good business

practices. When Western creditors, the World Bank and International Monetary Fund, refused loans

to Ecuador, Venezuela, Turkmenistan, and Sudan, China stepped in without political or ethical

strings attached.

As China becomes a global player and a fierce competitor in U.S. and European markets, its political

system and state capital ideology pose a threat. It is therefore essential that Western government

stick to what has been the core of Western prosperity: the rule of law, political freedom and fair

competition. They must not think shortsightedly.

Authors Heriberto Araújo and Juan Pablo Cardenal are the authors of China’s Silent Army: The

Pioneers, Traders, Fixers and Workers Who Are Remaking the World in Beijing’s Image.

Source: New York Times

POLITICS

1.89 MILLION VOTERS REGISTERED

Mongolia has seen some 1.89 million voters register for the presidential election slated for 26 June

from 1,896 electoral districts throughout the country.

Source: Undesnii Shuudan

6,000 ABSENTEE VOTERS REGISTERED ABROAD

An estimated 6,000 Mongolians abroad have registered to vote in the 26 June presidential election.

The deadline for registration was 31 May. Government established a Temporal Electoral Commission

to lead the voting procedures abroad. Mongolians living abroad will be permitted to vote from 14 to

16 June.

Source: News.mn

LATEST MINERALS LAW DRAFT GRANTS GOVERNORS APPROVAL FOR EXPLORATION LICENSES

The Ministry of Mining is sharing its latest draft of the proposed Minerals Law with other ministries

for feedback.

This draft consists of 10 chapters and 46 articles covering the process of mining and exploration

license issuances. It designates the Mineral Resources Authority as the agency to accept exploration

license applications for review, with further approval needed from the local governor.

Source: Business-Mongolia.com

CMTU ELECTS NEW PRESIDENT

The Confederation of Mongolian Trade Unions (CMTU) has elected Kh. Amgalanbaatar as its new

president.

Amgalanbaatar, who previously served as vice president, received 71.2 percent of votes during its

21st special session meeting held on 3 June. Ts. Adiya was a runner up in the election. Over the

course of the next few years, the CMTU is expected to undergo restructuring and improve

communications between different levels of the group's hierarchy.

Over 207 representatives from Mongolia's urban and rural communities gathered for the special

session to share views on issues that CMTU must confront and its future.

Source: News.mn

STANDING COMMITTEE ON ECONOMY TO PRESENT TO PARLIAMENT ON RAIL GAUGE USAGE

Parliament is set to discuss a government proposal for the type of rail gauge to be used in its

railway development projects, said Norov Altankhuyag during his regular 30-minute weekly address.

Although state policy dictates that the Russian rail standards be used for railway construction, a

clause also directs that government submit a proposal to Parliament about the suggestions for the

matter before implementation of a railway construction project begins. The Standing Committee on

Economy is now preparing a statement to give to Parliament.

Source: Undesnii Shuudan

MINING MINISTER PROPOSES SEVEN NEW STRATEGIC DEPOSITS

Mining Minister Davaajav Gankhuyag said at a press conference that his ministry had drafted

legislation that would add up to seven new deposits to the list of Mongolia's strategic deposits.

The working group in charge of the drafting has taken into account criteria such as the variety of

minerals and size to include the Khushuut, Tsaidam Nuur, Gatshuurt, Khotgor, Mushgia Khudag,

Luugin Gol, and Khalzan Burged deposits. He said the law would be presented at a forthcoming

government meeting.

Source: Unuudur

MPP BACKS LAWS FOR ALLOWANCES TO MOTHERS, STUDENTS

The Mongolian People's Party (MPP) agreed to put party support behind two laws for Mongolia's

welfare system.

The first law grants monetary benefits to mothers with more than three children. According to MP

S. Byambatsogt, the law had previously received support from parliament, but was not able to

receive passage. This latest version hopes to improve upon that original draft, which set out to

grant MNT 70,000 to mothers with three children and MNT 140,000 for mothers with four.

The second MPP-backed law would provide undergraduate university students free tuition.

Previously Parliament had passed a law that granted MNT 70,000 to students from herding

households with three or more children or their parents were from households with a parent

working as a civil servant. Eighty percent of students were receiving financial support from the

program.

The MPP said the allowances would not place greater burdens on the domestic economy.

Source: Udriin Sonin

LAW PROPOSES TAX EXEMPTIONS FOR WOOD SUPPLIES FOR CONSTRUCTION

A bill has been submitted to Parliament that would exempt wood from import tax and value-added

tax.

The law would impose certain exemptions for value-added tax and customs taxes, specifically

mentioning exemption for wood for construction. The hope is it will maintain growth of Mongolia's

burgeoning construction activity. Mongolia has little forestry to produce wood from, requiring in

some years the import of more than USD 30 million of wood supplies.

Source: Zuunii Medee

MONGOLIA HOLDS INTERNATIONAL MARATHON TO OBSERVE WORLD ENVIRONMENT DAY

Mongolia held an international marathon in Ulaanbaatar on Sunday in observation of the World

Environment Day conference, which was held in Mongolia.

More than 500 men and women contestants took part in the competition, including more than 110

from 14 different countries. Kenya's world marathon champion Patrick Squash attended the opening

ceremony, but he did not take part in the competition.

Source: Global Times

MONGOLIAN, CANADIAN DEFENSE MINISTERS AGREE ON DEFENSE COOPERATION

Minister of Defense Dashdemberel Bat-Erdene met with his Canadian counterpart in Singapore and

signed a memorandum of understanding that solidifies plans for continued defense cooperation and

exchange between the nations.

―Canada and Mongolia share values of democracy as well as a mutual interest in expanding trade,‖

said Minister Peter MacKay. ―The government of Canada is committed to broadening our defense

relationship with Mongolia.‖

The memorandum sets out further opportunities for defense cooperation between Canada and

Mongolia through activities such as information exchanges, visits by civilian and military personnel,

military education and training, and international peacekeeping activities including humanitarian

assistance. Canada and Mongolia have a history of cooperation on defense and security issues.

Mongolia has been a member of the Military Training and Cooperation Program since 2005. Canada

has also been a participant in the joint Mongolia-U.S. hosted annual multi-national peacekeeping

exercise, Khaan Quest.

Source: Foreign Affairs and International Trade Canada

CHINA EDUCATION EXHIBITION OPENS TO ENTICE MONGOLIAN STUDENTS

The China Education Exhibition opened last Friday in Mongolia to attract more Mongolian students

to China.

Teachers from Zhejiang University, Heilongjiang University and 10 other Chinese universities briefed

Mongolian parents face-to-face on their respective core disciplines. The two-day event was

organized by the China Education Center, which is in partnership with more than 80 universities and

colleges in China.

―In recent years, more and more Mongolian students have voiced their willingness to study in

China,‖ said Cheng Long, director of the China Education Center.

―The exhibition is to be held here every year in the hope that a bridge will be built between

Mongolian students and Chinese universities and colleges,‖ he said.

Source: China Daily

BELARUS SUGGESTS DRAFTING ROAD MAP OF JOINT PROJECTS WITH MONGOLIA

Belarus has suggested developing a road map of joint projects with Mongolia, Belarusian Prime

Minister Mikhail Myasnikovich said as he met with Mongolian Deputy Foreign Minister Damba

Gankhuyag on 30 May.

According to Belarus' premier, the two nations are well positioned to expand the bilateral trade and

boost cooperation in the field of investments. Belarus views Mongolia as a long-term partner and is

interested in closer ties, in particular in manufacturing, agriculture, and food production. It has

proposed achieving these aims through joint ventures.

―We can implement many projects in the field of manufacturing cooperation, trade in industrial

goods, agriculture produce and foodstuffs, and set up joint ventures,‖ Myasnikovich said.

Myansnikovich said that a Belarusian delegation led by the deputy industry minister would visit

Mongolia in June to discuss possibilities joint projects and ways to facilitate their implementation.

In 2012 Belarus exported USD 112 million in merchandise to Mongolia, up by 44.7 percent compared

to the previous year, while Belarus saw virtually no imports from Mongolia. Key exports include oil

products, trucks, tractors, truck tractors, confectionery made from sugar, machines and mechanism

for crop harvesting, and bread and pastries. In the January-March period Belarus exported USD 43

million in goods to Mongolia, but received no Mongolian imports.

Source: Belarusian Telegraph Agency

COURT POSTPONES MIAT TRIAL

The trial for those accused of embezzling money from a MIAT Mongolian Airlines war insurance

account has been postponed from 3 June to 10 June.

The prosecutor dropped the charges against the wife of Ts. Orkhon, U. Tsetsegmaa, and B.

Erdenebileg's brother, B. Mandakhbayar, who were arrested as accessories to the case. The charges

were dropped on account of insufficient evidence.

The suspects are accused of embezzling a total of USD 6.8 million via 16 separate transactions.

They also allegedly took the funds of others and transferred them to the bank accounts of family

members and a false insurance company. The State Investigation Department has confiscated USD

2.1 million in cash and MNT 13.9 billion from the accuseds' bank accounts.

Meanwhile separate investigations are being made regarding the chairman of the General Election

Committee (GEC) and a member of the Constitutional Court, D. Sugar, and former GEC staffers S.

Batkhishig and N. Galt.

Source: News.mn

10 YEARS IN PRISON FOR CREDIT CARD FRAUD

Foreign citizens have been sentenced to 10 years in prison for credit card fraud.

Five of the convicted are citizens of Malaysia and one is of Singapore. They were found guilty of

using fake international credit-debit cards to make purchases totaling MNT 133.6 million in shops in

Mongolia from 31 March to 12 April. The transactions were made using 49 cards labeled as both

Master and Visa using Trade and Development Bank of Mongolia LLC, Golomt Bank LLC, and Khan

Bank LLC.

Source: Udriin Sonin

UB EXTENDS NIGHTCLUB HOURS

The City of Ulaanbaatar has extended the hours that night clubs and bars may remain open to 3

a.m. for three days of the week, beginning 3 June.

The extension extends permitted operating hours by three hours on Thursdays, Fridays, and

Saturdays. Complaints about the time constraints came from both the Citizens Representative

Council of Ulaanbaatar and city residents.

According to the new regulations, public houses and team rooms are permitted to remain open

between 9 a.m. and 8 p.m. in winter and 8 a.m. to 10 p.m. in summer; stores are permitted to

operate between 10 a.m. and 8 p.m. in winter and 9 a.m. to 9 p.m. in summer; and banks,

pharmacies, and gas stations may remain open 24 hours a day. The city has not permitted 24 hour

fast food services, but they are permitted to remain open between 7 a.m. and 3 a.m.

Source: News.mn

UNICEF‟S GLOBAL REPORT ON CHILDREN WITH DISABILITIES

The day before Children's Day—Mongolia's national holiday celebrating children—UNICEF held a

conference in Ulaanbaatar to launch its 2013 ―State of the World Children‖ report. This year, the

annual report was dedicated to children with disabilities.

―We should not see [children with disabilities] as recipients of charity but children with abilities,‖

said Mohamed Malick Fall, UNICEF country representative. ―With the right opportunities, children

with disabilities can contribute strongly to the social, cultural and economic vitality of their

communities.

One speculative, but widely used, 2004 estimate claims that some 93 million children live with

moderate or severe disabilities. According to the UNICEF report, these children are more likely to

face physical violence, poverty, ineffective treatment for illnesses, and are less likely to complete

school than other children. UNICEF recommends that the private and public sectors of all nations

facilitate inclusive social activities (like sporting events), increase inclusive media to spread

awareness about disabilities, create subsidies for the care of children with disabilities, implement

community-based rehabilitation and to use better surveys to generate statistics.

Mongolia is no stranger to tackling the issues and implementing policies related to children with

disabilities. A 2005 study sponsored by the World Health Organization found that about 9 percent of

all secondary school students in Ulaanbaatar have a disability, the most common being visual

impairment. The government has already ratified the Convention on the Rights of Persons with

Disabilities, approved subsidies for families with children with disabilities, introduced peer-to-peer

advising programs and has improved its training for education students with disabilities. According

to S. Erdene, it also plans to develop improved data collection and institute a program to create

centers for children with disabilities in all of Mongolia's provinces.

Source: UB Post

NEW MONGOLIAN LAWS

The following laws were published in the latest weekly Government bulletin. Unless otherwise

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

Date Laws

27.05.2013 Law on Ratification of Loan negotiation

Law on Ratification of Loan negotiation

Please visit BCM's website, Legislative Working Group, for a summary of new Mongolian laws. BCM

members who wish to access complete versions of the laws and regulations in Mongolian language

are welcome to email the BCM office: info@bcmongolia.org.

ANNOUNCEMENTS

COALTRANS MONGOLIA, 19-20 JUNE, ULAANBAATAR

The Coaltrans Mongolia conference will be held at the Blue Sky Tower from 19 to 20 June. BCM

members will receive a 15% discount to attend the event, please use the discount code BCM.

Coaltrans Mongolia will explore the development of coal projects in the country and offer an insight

into what level of influence Mongolia will have over future international coal prices. Join us as we

return to this exciting market for the third year, to have an impact on how this new coal frontier

evolves and cement your position as a leading player in the market.

Speakers will include Batsuuri Yaichil, chief executive officer of Erdenes Tavan Tolgoi LLC, Graeme

Hancock, president and chief representative of Anglo American Development, and Bayanjargal

Byambasaikhan, chairman of the Business Council of Mongolia.

For more information, email coaltrans@euromoneyplc.com.

___________________________________________

FUTURE MONGOLIA, 19-22 JUNE, ULAANBAATAR

The Future Mongolia international trade fair will be held at the Buyant Ukhaa Sport Palace in

Ulaanbaatar, near the Chinggis Khaan International Airport, from 19 to 22 June, 2013.

After the successful premier with nearly 100 exhibitors from 14 nations and some 4,200 visitors, we

cordially invite you to the second Future Mongolia. This international trade fair offers the

opportunity on an enlarged exhibition space to present modern and sustainable solutions and

responses to the present needs of Mongolia and its population.

BCM members will get 5% discount on raw space. Please contact Saruul at saruul@bcmongolia.org to

get a special discount code. For more information, visit Future-Mongolia.com.

___________________________________________

“MM TODAY” on MNB-TV, Friday, 19:00-19:10

BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with

BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is

scheduled from 19:00 to 19:10 tonight. Tune in to watch this program that reports stories from

today‘s BCM NewsWire.

___________________________________________

BCM‟S MINING SUPPLY CHAIN DATABASE

The new version of BCM‘s Mining Supply Chain Database is in use. Following the initiative of Oyu

Tolgoi LLC, the BCM has maintained the Mining Supply Chain Database since March 2009. It is an

honor to introduce you to the new version of the database which is totally upgraded as to its

content and use of information technology opportunities.

As of December 31, 2012 suppliers registered on the database totaled 1,405. During 2012, 251 new

supplier entities joined the Database and 236 prior supplier registrants updated their company

profiles. In addition, 22 buyers were also registered and 82 tender announcements were posted.

We are inviting all Mongolian mining suppliers and buyer companies to join the Mining Supply Chain

Database. Please visit here for registration—FREE!

If you have any questions regarding the database, please contact 317027.

BCM WEBSITES

MONGOLIAN WEBSITE „PRESENTATIONS‟ AND „NEWS‟ SECTIONS

The ‗Presentations‘ section on BCM‘s Mongolian website can be reached via bcm.mn/itgeluud.

As a key component of BCM‘s Mongolian website, articles from the ‗News‘ section and the

government website Open-Government.mn are regularly updated.

Sanjaasuren Oyun‘s, Minister of Environment and Green Development, presentation at BCM‘s

monthly meeting on May 27 has been posted to the Mongolian website,

bcmongolia.org/mn/илтгэлүүд.

- Байгаль орчин, ногоон хөгжлийн сайд С.Оюун, Байгаль орчин, ногоон хөгжлийн шинэчлэлийн

бодлого, үйл ажиллагаа, МБЗ-ийн сарын уулзалт 5 сарын 27, 2013

The following presentations were added from "Foreign Investment in Mongolia: Challenges, Risks

and Solutions" conference (in Mongolian) on April 19 at the Kempinski Hotel organized by the

Business Council of Mongolia (BCM) and UB Risk Management Consulting:

• Гадаадын хөрөнгө оруулалтын өнөөгийн байдал, хэтийн төлөв, Төв банкны ерөнхий эдийн

засагч С.Болд, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ,

ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4 дүгээр сарын

19

• Шууд хөрөнгө оруулалтын өнөөгийн байдал, тулгамдсан асуудал, шийдвэрлэх арга зам,

Монголын Бизнесийн зөвлөлийн дэд дарга И.Сэр-Од, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ

ОРУУЛАЛТ –ЭРСДЭЛ, СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага

хурал, 2013 оны 4 дүгээр сарын 19

• Үнэт цаас, хувьцааны зах зээлийн хөрөнгө оруулалт: эрсдэл, сорилт, цаашдын хандлага,

Монгол банкны Ерөнхийлөгчийн зөвлөх, санхүүгийн тогтвортой байдлын зөвлөлийн ажлын

албаны дарга Д. Ган-Очир, ―МОНГОЛ УЛСДАХ ГАДААДЫН ХӨРӨНГӨ ОРУУЛАЛТ –ЭРСДЭЛ,

СОРИЛТ, ШИЙДВЭРЛЭХ АРГА ЗАМУУД‖сэдэвт эрдэм шинжилгээний бага хурал, 2013 оны 4

дүгээр сарын 19

___________________________________________

ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,

„PHOTO GALLERY‟

On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available.

• Nick Cousyn, Chief Operating Officer, BDSec JSC, ―Gobi‘s Resort‖ at the BCM Monthly meeting

April 22, 2013

• Brian White, Editor, The Mongolist – ―Analyzing Mongolian Politics from the "Middle Layer", at the

BCM Monthly meeting Apr 22, 2013

• Ch. Otgochuluu, Head of Strategic Policy and Planning Department, Ministry of Mining, ―Brief

introduction on mining policy‖ at the BCM monthly meeting Apr 22, 2013

• ―The current flow of investment into Mongolia‖, S. Bold, Chief Economist, Central Bank, at the

"Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at

the Kempinski Hotel.

• ―About regulation on FDI‖, S. Javkhlanbaatar, Foreign Investment Regulations and Registration

Department Head, Ministry of Economic Development of Mongolia, at the "Foreign Investment in

Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.

• ―Legal issues of regulation of foreign investment‖, B. Amarsanaa, Academic Secretary of National

Legal Institute, at the "Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference

on April 19, 2013 at the Kempinski Hotel.

• ―Investment in stocks and equities in Mongolia: risks, challenges and trends‖, D. Gan-Ochir, Head

of Financial Stability Council, Advisor to President of Central Bank, at the "Foreign Investment in

Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the Kempinski Hotel.

• ―On current state of equities foreign investment‖, D. Achit-Erdene, CEO, MICC, at the "Foreign

Investment in Mongolia: Challenges, Risks and Solutions" conference on April 19, 2013 at the

Kempinski Hotel.

• ―Market Update‖ by Mandal General Insurance LLC

• ―Annual Report 2012‖ by International Monetary Fund

• Ruth Pulaski, Director Marketing & Development, American University of Mongolia – ―American

University of Mongolia: Integrating a Liberal Education Approach to Learning‖ at the BCM monthly

meeting, March 25, 2013

• B. Bayar, Managing Director, ELC LLC – ―Update on Legal Developments Regarding Foreign

Investment‖ at the BCM monthly meeting, March 25, 2013

• Tony Burchill, Australian Consul-General & Trade Commissioner, Austrade – ―The Business of Being

a Third Neighbor‖ at the BCM monthly meeting, March 25, 2013

Other recently added presentations:

• Dr. Brian Fisher, Managing Director, BAEconomics, "Economic Impact of draft Minerals Law" at the

Kempinski Hotel, March 18, 2013, Ulaanbaatar

• Dr. Ch. Khashchuluun, CEO of UBRM Consulting, ―Mongolia and Mining, The policy evolution:

What's the next?‖ at the Kempinski Hotel, March 18, 2013, Ulaanbaatar

• Martin Pow, Partner, Enterprise Risk Services and Learning Leader, Deloitte Onch LLC, ―Black

Swans: Fact or Fiction,‖ A different risk management philosophy at the BCM Risk Management

Working Group meeting, March 14, 2013

The following 3 presentations were added from Coal Mongolia, 21-22 February:

• ―Current state of coal sector of Mongolia and future trends‖ by Minister of Mining D. Gankhuyag at

the Coal Mongolia 2013, Feb 21, SS Convention Center, Ulaanbaatar;

• ―Economic Reform Objectives‖ by Vice Minister, Economic Development, H.E. Mr. O. Chuluunbat

at the Coal Mongolia 2013, Feb 21, SS Convention center, Ulaanbaatar;

• ―Presentation for Coal Mongolia 2013‖, Norihiko Kato, CEO of Khan Bank, Feb 21 at the SS

Convention Center, Ulaanbaatar, Mongolia.

• Presentation by Bold Baatar, CEO of Altan Dornod Mongol, ―Mongolian Mining Investment

Environment‖ at the Mining Industry Open Discussion, February 1, 2013, at Kempinski Khan Palace

Hotel.

Please note the presentations from each of the BCM monthly meetings.

The ―Mongolia Reports‖ section includes the following: - ―Selected Macroeconomic Indicators for

Mongolia, as of June 2013‖ by International Monetary Fund; ―Polit Barometer April, 2013‖ by Sant

Maral Foundation; ―Regional Economic Outlook: Asia and Pacific‖, April 2013 by International

Monetary Fund; ―Highlights of 2012, Mongolia‖ by European Bank for Reconstruction and

Development (EBRD); the ―Official statement of Oyu Tolgoi LLC in relation to information, data and

facts related to Oyu Tolgoi discussed during open session of the State Great Khural‖, dated 1

February, 2013‖; ―2013 Mongolia Investment Climate Statement‖, by the Economic and

Commercial Section of the U.S. Embassy; ―Mongolia Foreign Labor Force Ratio for 2013‖ by Hogan

Lovells International LLP; ―How Mongolia will perform in 2013?‖ by Mandal Asset Management;

―Mongolia Business Owner and CFO Survey result‖ by BDSec JSC; ―The fiscal regime for mining-a

way forward‖ by IMF Fiscal Affairs Department; ―Taxes for Expatriates in Mongolia‖ by

PricewaterhouseCoopers.

BCM's English website includes the ―Mongolia Business News‖ section where the Open Letter to

Parliament and Government is available for download.

BCM continuously posts news stories and analysis of relevance to Mongolia at ‗Mongolian Business

News‖ before they are all put together each week for Friday's weekly NewsWire.

The ―Photo Gallery‖ contains photos from the 5th Anniversary BCM Gala dinner on November 5.

The BCM NewsWire will continue to be issued each Friday, incorporating items already on the home

page for a consolidated account of the week‘s events.

___________________________________________

SOCIAL NETWORK WITH BCM

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

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

improving each day with BCM.

Connect with BCM on Linked-in to join the diverse group of professional contacts creating a better

business environment in Mongolia today.

Add BCM on Facebook at http://www.facebook.com/pages/THE-BUSINESS-COUNCIL-OF-

MONGOLIA/129826330435540 to read the latest announcements and comment on events carried in

the NewsWire with the community.

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

http://twitter.com/#!/bcMongolia.

We have now 1,174 fans on our Facebook fans page, 1,243 connections on LinkedIn network, and

692 followers on Twitter.

Of course for news information, interviews, event photos, and announcements regarding our

organization, visit the official BCM website at www.bcmongolia.org and www.bcm.mn.

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]

April 30, 2013 *10.4% [source: NSOM]

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

Note: 9.8% y-o-y, Ulaanbaatar city, April 30, 2013

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]

CURRENCY RATES – JUNE 6, 2013

Currency Name Currency Rate

US dollar USD 1,438.17

Euro EUR 1,880.77

Japanese yen JPY 14.42

British pound GBP 2,205.94

Hong Kong dollar HKD 185.32

Chinese Yuan CNY 234.69

Russian Ruble RUB 44.88

South Korean won KRW 1.29

Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is

selected from various news sources. Opinions are those of the respective news sources.