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BUSINESS COUNCIL of MONGOLIA NewsWire
www.bcmongolia.org [email protected]
Issue 416 – February 26, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each article is
kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full
article.
NEWS HIGHLIGHTS:
Business:
CHPP No. 4 to receive USD37.5 mn for efficiency renovations;
Meat producer makes first shipment to China;
Trade finance program helps Mongolian firm improve food storage;
Frontier Capital drops lottery venture in Mongolia;
Ard Credit plans on becoming first NBFI to list on MSE;
Haranga raises less than a quarter of its fundraising goal;
Darkhan Metallurgical honored for railway;
S. Korea urges hastened development for diagnosis and treatment facility;
State hospital expands cardiac treatment capabilities;
Aero Mongolia to launch temporary flight to Khuvsgul in March;
Mongolian Airlines turns profit amid economic stress;
SouthGobi Resources appoints non-executive director;
Mongolian rock keeps its roots in “Live from UB” at film festival;
Bogd Bank establishes correspondent bank relations with Mizuho Bank;
Deutsche Börse lines up swoop for LSE.
Economy:
Mongol Bank: currency auctions, swaps, 1-week bills, T-bills;
MNT20 trillion (USD9.8 bn) collected from tax amnesty;
Mongolia to seek international aid as herds perish;
Mongolia seeks USD1.3 bn loan from China to complete coal railway;
Burgastai becomes thruway point for meat exports;
Animal husbandry assistance program launches;
Social welfare goes online;
Customs and tax IT center established;
Mongolia's home-owning dream could become a nightmare;
China provides USD1 mn to build molecular biology lab;
Scientists study curing power of camel milk for diabetes;
UB orders repairs to water treatment facility;
Ger-district households to be relocated;
Students build ice-climbing walls in Terelj;
Rent-controlled apartments to become available in UB;
Wool, hides for sale in UB bazaar;
BHP expects copper market to remain in surplus until end of decade;
World steel output drops after 5-year rise.
Politics:
Parliament finally sees quorum for special session;
Miners to receive compensation for revoked licenses, says minister;
Constitutional Court judge resigns;
New faction emerges within Democrats' ranks;
MPP to weigh in on performance of ruling Democrats;
Political parties seeking consolidation before election;
EU offers support to Mongolia in hosting ASEM Summit;
Civil aviation agreements signed;
Mongolia opens intergovernmental relations with Indonesia;
Alleged IAAC recommendation says Enkhbayar prohibited from taking office;
NGOs demand that Mongolia cancel Centerra's remaining licenses at Noyon Uul;
Police seize unverified liquor, tobacco products in Khuvsgul;
Selenge governor bans winter horse races.
BCM Updates:
Announcements;
New Mongolian Laws;
Knowledge Sharing Sessions;
Advocacy Notes;
Working Groups News
BCM in the University Classroom Series;
Websites Update - Presentations, Mongolia Reports, Interviews;
Social Networks.
Economic Indicators:
Churchill’s Supermarket Price Comparison
Inflation;
Central Bank Policy Rate;
Currency Rates.
*Click on titles above to link to articles.
SPONSORS
Khan Bank Invest Mongolia Agency
Mongolian Business Database
BCM MEETING RECAP
The BCM meeting on 22 February was held in the Crystal conference room in Blue Sky Tower and
Hotel was attended by 150 members and invited guests with Randolph Koppa, BCM’s vice chairman,
and BCM's executive director, Jim Dwyer, as the meeting's hosts.
The evening's networking reception was sponsored by the “Women’s Leadership Program” of the
Australia Awards Mongolia, and catered by Churchill's.
BCM's newest member is Horizon Partners LLC, a local investment advisory, fund-raising and project
development firm.
The business meeting agenda was as follows:
D. Uuriintuya, chairperson of the Mineral Resources Authority, spoke first to introduce the
government's plans in this year's Prospectors & Developers Association of Canada (PDAC) conference
at the Metro Toronto Convention Center from 6 to 9 March. "I'm pleased to say that the government
of Mongolia has placed a great deal of development on this event," said Uuriintuya, who is heading
a working group to organize Mongolia's part in the event. "This time around, we're scaling up
Mongolia's visibility," she said.
That includes the country's exhibit and a separate forum focused on ‘Mining in Mongolia’ to
demonstrate the progress Mongolia has made in its legal sector and the opportunities available to
investors. "We will also introduce the current situation for exploration licenses," she said, adding
that at least 10 licensed areas for exploration would be tendered at auction there.
L. Enkhtuvshin, the head of human resources development and partnership manager for the
Australia Awards Mongolia, presented next on the ‘Women's Leadership Program’ that has sent
women to Australia to study at universities. "After completing their studies, individuals come back
to Mongolia," she said. "So far over 400 graduates returned from Australia."
"Alumni also act as a bridge between Australia and Mongolia contributing to community
development and beyond."
Further discussing Australia's relationship with Mongolia was Brendan Coyne, Australia's consul
general to Mongolia and trade commissioner for Austrade. Reminding the audience of the Australian
Embassy that opened this year, he spoke of the recently entered first ambassador and the new
team they had built to serve the new mission here. Although most will think of ties to the mining
sector, Australia should also be seen as a strong partner for education he said. He also hoped that
the embassy could help foster the growth of small business in Mongolia and create links with
Australian counterparts. "SME's are where we can add the most value," he said.
Jennifer Bielman, the country director for MercyCorps Mongolia, gave an update on her agency's
efforts to build up the country's resilience and safeguards against disruptions such as the natural
disaster known as the "dzud"--when temperatures drop so low and snowfall is so heavy that millions
of livestock die. Their Resilient Communities project aims to identify challenges faced by
pastoralist families and find solutions to some of those issues. To find those solutions, Bielman
hopes she can bring together representatives of international groups, the government, academics
and the private sector. "We think if we get a lot of smart people in the room, build on our
experiences at MercyCorps and larger development community of Mongolia, we can figure out
systemic changes."
And she's already had some success! Bielman said that her participation with the Business Council of
Mongolia had already fostered some relationships that could put MercyCorps on the right path
toward sustainability for traditional herders.
The director of the markets development department at the Financial Regulatory Commission, A.
Batpurev , next reviewed with the audience the recent achievements in the financial sector and the
Mongolian Stock Exchange.
In Mongolia, businesses must manage high inflation, foreign-exchange instability, slow growth since
2012 and overall weak protections for investors. But that does not mean all is woe for the market
economy here. The stock exchange has seen tremendous growth thanks to the initial and secondary
trade of treasury bills. The Financial Regulatory Committee has also installed numerous regulatory
changes, including custodial activities.
This year sees the beginning of the government efforts to privatize eight state-owned assets,
Batpurev said, including power plants, coal mines and the exchange itself. For the longer term,
Batpurev said he has a vision of Ulaanbaatar as a special financial zone where investors can receive
special protections. "I don't think it's a dream away," he said.
The last presentation of the evening came from N. Munkhnasan, the general director of
Monpolymet, to introduce her company. Since 1992, Monpolymet has been active in gold
production, manufacturing and construction. Most recently, however, it has a seven-year plan to
build a dry-processing cement plant. The company has received a USD250 million loan from the
European Bank for Reconstruction and Development to build the plant, which will have high
efficiency for water consumption--recycling 90 percent--and using the heat generated by the
processing to power the plant.
"Our ability is to manage large-scale projects, and we build plants in record time," said
Munkhnasan.
BUSINESS
CHPP NO. 4 TO RECEIVE USD37.5 MN FOR EFFICIENCY RENOVATIONS
The Japan International Cooperation Agency aims to cut greenhouse gas emissions with a JPY4.2
billion (USD37.5 million) loan to renovate Combined Heat and Power Plant No. 4. Japan's Yokogawa
signed a contract for the project on 18 February, while a consortium that includes MHPS and MCS
International have been hired to install equipment and employ renovations.
The project will see an 18 percent increase in energy production while cutting coal consumption by
8 percent after its completion in 2019.
Source: Montsame
MEAT PRODUCER MAKES FIRST SHIPMENT TO CHINA
Uvs Aimag's Mon-Tuva LLC launched its first shipment of mutton to China on 19 February after
Chinese inspectors lifted a ban on meats from Mongolia's western provinces put in place after an
outbreak of hoof-and-mouth disease. Mongolia continues to manage challenges related to health
standards as it ramps up its meat exports for greater earnings from traditional agriculture. The
meat producer shipped 16 tons of mutton through the Burgastai border checkpoint in Gobi-Altai
Aimag.
China has given special permission for the import of meat from Zavkhan Foods, Khuvsgul Makh
Market and Mon-Tuva.
Source: Montsame
TRADE FINANCE PROGRAM HELPS MONGOLIAN FIRM IMPROVE FOOD STORAGE
The diversified Mongolian company Delta Holding LLC has recently built a “state-of-the-art” storage
facility outside Ulaanbaatar that will help mitigate financial threats from natural disaster. Mongolia
has few good facilities that can store foodstuffs for long periods of time, meaning vegetables must
be imported to meet local demand once the autumn harvest season is over. One of the first of its
kind in the country, the warehouse has a capacity of 2,200 tons with 11 cold storage rooms—6 for
vegetables and 5 for processed meat. Delta aims to buy vegetables from farmers in the fall and
store them for some six months for sale in spring.
Delta built its new facilities with the help of ADB’s Trade Finance Program (TFP) with a two-year
guarantee for USD920,000 from Trade and Development Bank of Mongolia. Over time, this will boost
rural income while prices of locally raised out-of-season meat and vegetables will be lower and
more stable for consumers.
Source: Asian Development Bank
FRONTIER CAPITAL DROPS LOTTERY VENTURE IN MONGOLIA
Australian firm Frontier Capital Group Ltd. has dropped its lottery and possible casino venture in
Mongolia. Frontier said it had received a notice from the vendor [Monvest Group Pte. Ltd.] saying
that a number of conditions will not be satisfied within the period provided in the agreement. The
deal would have given Frontier the right to establish the first casino in Mongolia, once the country
allowed it. “The acquisition of the Mongolian National Lottery license would have complemented
the recent move by the Company to Gaming and Hospitality.” said Frontier director Ram
Navaratnam.
The proposed casino legislation was submitted to the Mongolian parliament for review in early 2015
but is still under consideration. For now, Frontier said that its board of directors will review the
company’s investment portfolio in order to align it with the direction of gaming and hospitality.
Source: Gambling News
ARD CREDIT PLANS ON BECOMING FIRST NBFI TO LIST ON MSE
Ard Credit is setting the wheels in motion to issue Mongolian Stock Exchange's second initial public
offering of the year and the first non-bank financial institution (NBFI) to list on the local bourse.
The lender, which is a subsidiary of Ard Financial, plans to begin the process following a
consultation with shareholders.
Source: Unuudur
HARANGA RAISES LESS THAN A QUARTER OF ITS FUNDRAISING GOAL
Haranga Resources Ltd. closed a partially underwritten fundraising rights issue on 19 February that
fell 88.5 percent short of its goal. Haranga raised USD156,956 from the sale of 39.24 million shares
at prices of USD0.004 each, it said in a 24 February statement. It received valid acceptances for
39.24 million new shares with a shortfall of 302.6 million shares.
Source Haranga Resources Ltd.
DARKHAN METALLURGICAL HONORED FOR RAILWAY
MSE-listed Darkhan Metallurgical Plant JSC has won the State Gereeg award for its success in
building a railway link between its mine and processing facility. The 40-kilometer long railway route
that finished construction last December connects the Tumurtei mine with a concentrator in
Khangait Soum. With the work of engineering firm QSC LLC, the railway can move 8 million tons of
freight a year.
Also included in the work were Mongolian Railway Corp. LLC, Peak Development LLC, Kotol
Keramzit LLC, Maximal LLC and Ulaanbaatar Railway (UTZ).
Source: Udriin Sonin
S. KOREA URGES HASTENED DEVELOPMENT FOR DIAGNOSIS AND TREATMENT FACILITY
The national diagnostics and treatment center will start being built by next month, said the
secretary of the health ministry. South Korean officials during a visit on 23 February urged
Mongolia's Health Ministry to hasten development on the project, which has been under
development since 2012 with financing from South Korea.
Source: Unuudur
STATE HOSPITAL EXPANDS CARDIAC TREATMENT CAPABILITIES
State Hospital No. 3 has expanded its cardiac treatment capabilities with new equipment purchased
with a MNT50 million loan from St. Jude Medical Inc. in the United States. The equipment
purchased for treating heart arrhythmia is the first of its kind of Mongolia, and will help patients
receive treatment in UB rather than having to travel abroad.
State insurance will cover 75 percent of the cost for heart arrhythmia treatment, said hospital
officials.
Source: Udriin Sonin
AERO MONGOLIA TO LAUNCH TEMPORARY FLIGHT TO KHUVSGUL IN MARCH
Aero Mongolia will charter a special flight to Khuvsgul Aimag for tourists heading to Khuvsgul Lake
for the Ice Festival to be held from 2 to 4 March. Services will continue through April in the
expectation of demand all through the month.
Source: Mongolia.GoGo.mn
MONGOLIAN AIRLINES TURNS PROFIT AMID ECONOMIC STRESS
Mongolian Airlines (MIAT) reported MNT2.5 billion in profit last year after a 14.7 percent increase in
passengers. Mongolia's flagship air carrier saw MNT241.3 billion in revenue last year from 461,450
passengers and 2.624 million kilograms of freight to Beijing, Seoul, Tokyo, Moscow, Berlin,
Frankfurt, Hong Kong and Hanbumbat. The number of flights grew 13.7 percent.
More than half of all expenses were affected by the depreciation of the tugrug.
Source: Montsame
SOUTHGOBI RESOURCES APPOINTS NON-EXECUTIVE DIRECTOR
SouthGobi Resources Ltd. has appointed Huiyi Wang as a non-executive director, effective 18
February. Wang, 28, is currently an investment associate in China Cinda (HK) Holdings Company
Ltd., the intermediate holding company of Novel Sunrise Investments Ltd., SouthGobi reported on
22 February. Novel is the largest shareholder of SouthGobi.
Source: SouthGobi Resources Ltd.
BOSTON HOLDS DEVELOPMENT FORUM FOR MONGOLIA
A forum to debate development solutions and overcoming economic challenges for Mongolia in
Boston, United State attracted some 80 guests, including figures from American academic
institutions. Speakers included Ricardo Hausmann, a professor at Harvard University, Courtney
Engelke, a representative of the Millennium Challenge Corporation, S. Javkhlanbaatar, head of the
Investment Authority of Mongolia, and Steve Saunders, president of the North America-Mongolia
Business Council.
Source: Montsame
MONGOLIAN ROCK KEEPS ITS ROOTS IN “LIVE FROM UB” AT FILM FESTIVAL
Kiss once sang “God gave rock n’roll to everyone,” and according to the director Lauren Knapp’s
documentary “Live from UB,” even the Mongolians received the gift. In a British premiere screening
to take place 24 February as part of the eighth edition of the Asia House Film Festival, her film
depicts a new generation of rock musicians in Ulaanbaatar, who are bridging the divide between
their local cultural identity and the globalized world they live in. Knapp, who came to Mongolia on
a visit from China in 2007, said, “The landscape and can-do-anything attitude in the countryside
gives it a Wild West feel. And the music is evocative of the ancient and vast land.”
Knapp returned in the winter of 2011 to immerse herself in the music scene and shoot the
documentary. The result is the best insight most of us will ever get into the rock scene in Mongolia.
Source: Blouin Art Info
BOGD BANK ESTABLISHES CORRESPONDENT BANK RELATIONS WITH MIZUHO BANK
Bogd Bank LLC has established correspondent bank relations with Mizuho Bank, a leading financial
institution with one of the largest customer bases in Japan, Mongolia's newest bank reported on 4
February. Bogd Bank has opened a correspondent account in Japanese yuan there and has begun
international payment services for customers.
Source: Bogd Bank
DEUTSCHE BÖRSE LINES UP SWOOP FOR LSE
Deutsche Börse is in advanced talks to take over the London Stock Exchange (LSE) Group in a
megadeal that would create a European champion presiding over many of the world’s leading
financial markets. The deal to take over the LSE involves a leading partner for the development of
the Mongolian Stock Exchange. The talks are likely to attract particularly intense scrutiny from
politicians, regulators and competitors as they come at a time of heated debate in Britain over
whether it should leave the European Union.
Given the intense consolidation of exchanges in recent years, global regulators will also probe the
companies over the dominant role they would have in trading and clearing derivatives. The boards
believe it would be “an industry-defining combination”, the LSE said in a statement. For Deutsche
Börse, the pre-eminent exchange operator in Europe, this is just the latest attempt to become a
more global force.
Source: Financial Times
SPONSORS
Oxford Business Group The New Media Group
Mongolian Economy Magazine
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS
The Bank of Mongolia on 25 February sold CNY40 million to central banks in currency auctions for
closing exchange rates of MNT311.85. Also that day, it accepted tugrug swaps with commercial
banks for an equivalent of USD3.5 million. It rejected U.S. dollar swaps totaling USD31 million.
The Bank of Mongolia on 24 February issued 1-week bills worth MNT137 billion at a weighted
interest rate of 12 percent. Also that day, the central bank received MNT500 million in bids for the
auction of two-year treasury bills with a face value of MNT5 million (compared with an original
value of MNT15 billion) that were sold at a discounted price with an average weighted yield of 15.5
percent. It received MNT33 billion in bids for 39-week bills with a face value of MNT 20 billion that
were sold at a discounted price and weighted average yield of 14.92 percent.
Source: Bank of Mongolia
MNT20 TRILLION (USD9.8 BN) COLLECTED FROM TAX AMNESTY
Mongolia has collected MNT20 trillion (USD9.8 bn) in back taxes during a period of tax amnesty that
launched last year. The Economic Transparency Law that expired on 20 February gave individuals
and companies the opportunity to make good on taxes owed from false or unclaimed tax reporting,
bringing in extra funds during a year of the slowest growth for the country since the delayed effects
from the world economic crisis in 2009.
The MNT20 billion is equal to 90 percent of Mongolia GDP. The Mongolian National Chamber of
Commerce and Industry, however, said it may be able to collect even more from the 40,000 civil
servants who were excluded from the tax amnesty if given the same opportunity.
Source: News.mn
MONGOLIA TO SEEK INTERNATIONAL AID AS HERDS PERISH
Mongolia has begun to ask for financial assistance from international groups to prevent escalation of
this year's dzud conditions. Currently, 70 percent of Mongolia's territory has snow cover, with 211
counties in 20 provinces receiving heavy-to-frequent snow fall. Herders hit hard by the economy are
running out of cash to buy animal feed, which the government has sent out in deliveries after
domestic production fell short to prevent price rises to some extent. Sparse vaccinations for animal
diseases amid the difficult weather conditions have also led to the spread of disease.
Source: News.mn
MONGOLIA SEEKS USD1.3 BN LOAN FROM CHINA TO COMPLETE COAL RAILWAY
Mongolia is seeking a USD1.3 billion loan from the Export-Import Bank of China to complete a
railway connecting its Tavan Tolgoi coal deposit with the Chinese border, a project that has stalled
because of lack of funds. Officials from Mongolian Railway SOSC are meeting in China for talks with
the bank to secure the loan, Idesh Ivshin, the company’s head of projects, said Monday in an
interview in Ulaanbaatar.
According to terms under discussion, the Export-Import Bank would appoint a Chinese contractor to
construct the railway, Idesh said. That would replace the existing agreement with South Korea’s
Samsung C&T, which has stalled over a debt of more than USD30 million that the railway says it
can’t pay due to lack of funds. The two sides are negotiating a settlement, according to Idesh.
Source: Bloomberg
BURGASTAI BECOMES THRUWAY POINT FOR MEAT EXPORTS
The Burgastai border point to China will be a key access point for companies exporting meat to
Mongolia's southern neighbor, said Foreign Minister L. Pursevsuren at a 23 February press
conference, as the country looks to ramp up income from its traditional agriculture production. The
Burgastai checkpoint will be operating every other month, during the even-numbered ones, in
accordance with an agreement with China from 2004. “Mongolia is bordered by 13 Chinese ports,”
said Purevsuren. “Burgastai is the nearest to the Chinese districts with the highest meat
consumption checkpoint. Prepared mutton, beef and goat meat will be exported through this
checkpoint from five western aimags.”
Purevsuren was in Burgastai to attend a ceremony for shipping 16 tons of mutton by Mon-Tuva LLC
from Uvs aimag.
Source: Montsame
ANIMAL HUSBANDRY ASSISTANCE PROGRAM LAUNCHES
Herders and farmers will have access to loans with 10 percent annual interest from a new
government subsidized lending program to assist traditional agriculture and the growing farming
industry. The Cabinet approved the lending initiative on 22 February, which will give herders funds
to vaccinate their animals, make necessary sanitary arrangements and prepare hay and animal
feed.
Also that day, the Cabinet Secretariat approved the Best-Herder Program, where pastoralists
nationally recognized for their skills in managing livestock, especially during difficult weather
conditions, will pass on their skins to the next generation. Over the next six years, in addition to
providing access to loans, officials from the Ministry of Food and Agriculture will introduce new
technology for herding and farming.
Source: Montsame, 2
SOCIAL WELFARE GOES ONLINE
Mongolia will begin delivering its social welfare services online, making it easier to collect for
house-bound elderly recipients. The system will verify individuals using digital signatures obtained
with a MNT5,000 a year subscription. Other agencies plan on utilizing similar verification devices,
including the Ministry of Transportation, General Social Insurance Authority and Tax Authority.
Companies will pay between MNT40,000 and MNT230,000 a year for the digital signatures.
Source: News.mn
CUSTOMS AND TAX IT CENTER ESTABLISHED
A database for collecting tax and customs registration will be rolled out to ease tax payments and
provide greater transparency. The Cabinet Secretary pushed forward the motion to develop the
system on 22 February, in addition to its approvals on how the database should be regulated.
Source: Montsame
MONGOLIA'S HOME-OWNING DREAM COULD BECOME A NIGHTMARE
Four months away from parliamentary elections, Mongolia's leaders are making some bold and
expensive promises to turn the Mongolian dream of home ownership into reality. Rather than
making the politicians exercise restraint during a time of economic strain, the country’s economic
problems have only encouraged the government to promise even more subsidies to enable
Mongolians to buy their own homes.
In 2013, the government began providing commercial banks with funds at 4.5 percent annual
interest. The banks then lent the money to homebuyers at 8 percent, with a 30 percent
downpayment. Since then, the number of mortgages has grown 58.5 percent, but with interest on
mortgages 4 percentage points below the 12 percent policy rate set by the central bank, most of
those who could afford to buy homes have already done so and many Mongolians still can’t afford
to. So, to reinvigorate the program, the government has guaranteed to cut upfront downpayments
by two-thirds to 10 percent. They also have plans to spend millions more a month to cut the annual
rate on the subsidized mortgages by 3 additional points to 5 percent by March.
Source: bneIntelliNews
CHINA PROVIDES USD1 MN TO BUILD MOLECULAR BIOLOGY LAB
At the opening ceremony present were L.Gantumur, minister for Education, Culture and Science,
Shin Hai Min, ambassador of China to Mongolia and some other officials. Researchers in Mongolia
will be able to launch new studies in the agriculture industry with a new lab opened this week,
which can be used to study genes as well as the effects from chemicals and herbs. The Chinese
government provided USD1 million for the lab, while the government contributed USD350,000,
allowing for the installation of modern equipment for analyzing genes, proteins and bacteria.
Source: Udriin Sonin
SCIENTISTS STUDY CURING POWER OF CAMEL MILK FOR DIABETES
They say milk builds strong bones, but how about curing diabetes? The extreme resilience in camels
that allows them to survive periods of thirst and hunger as well as blistering cold and intense heat
in Mongolia's Gobi desert may be a key to unlocking a treatment for diabetes, say scientists from
Mongolia and the Chinese Inner Mongolian Autonomous Region. Camel’s blood has high levels of
glucose and low insulin, or the signs of the onset of diabetes. According to the researchers, drinking
camel's milk may allow people to share this ability. “According to our research, people with a 13 or
more blood sugar level have gotten better consuming camel’s milk. Some people have been cured
of diabetes.”
Source: Montsame
UB ORDERS REPAIRS TO WATER TREATMENT FACILITY
Ulaanbaatar's Mayor has ordered city officials to come up with MNT81 billion to repair the city
Water Treatment Facility. Ulaanbaatar City Manager B. Badral has received orders for leading the
repairs to the Central Water Treatment Facility.
Source: Zuunii Medee
GER-DISTRICT HOUSEHOLDS TO BE RELOCATED
Ulaanbaatar will soon [Source does not specify any date] launch the first phase of its “Relocation
Plan” to move ger-district residents living in areas where the city plans to build infrastructure.
Roads are planned for alongside the Selbe River and the Bayankhushuu central area.
Source: Mongolia.GoGo.mn
STUDENTS BUILD ICE-CLIMBING WALLS IN TERELJ
Students from Mongolian National University have put ice-climbing walls in Terelj that will help
train athletes to compete in the PyeongChang 2018 Olympics. The 12-meter-high wall is the second
of three it plans to put up, said student K. Bakhadbek, after they built the first 9-meter wall last
year. “Most of our mountain alpiners climb Bogd Mountain through the Bogd Khaan base,”said
Bakhadbek. “Because of that, we erected there a 14-meter high ice wall with three routes for
practice competition.”
Source: Unuudur
RENT-CONTROLLED APARTMENTS TO BECOME AVAILABLE IN UB
The government is offering low-rent housing for between MNT200,000 and MNT280,000 in
Ulaanbaatar for some adults as it aims to move residents out of the ger districts into apartments for
better urban planning and to cut down on air pollution. The rentals are available to anyone over the
age of 21 with a fixed income, paying social insurance and living in Ulaanbaatar for more than five
years. Excluded from the program is anyone who already owns an apartment.
Source: News.mn
WOOL, HIDES FOR SALE IN UB BAZAAR
The Emeelt Raw Materials Bazaar has launched the sale of processed and unprocessed cashmere, a
key agriculture export made from goat fur. Cashmere was selling for between MNT48,000 and
MNT55,000 a kilogram, depending on the color and thickness of the fibers. Whole sheep skins sold
for MNT1,000 and 2,500 a kilogram, MNT16,000 for goat, MNT8,500 per kilogram of horse hair and
MNT12,000 for horse tail. Camel wool varied depending on the sex of the animal, with MNT7,500
per kilogram for male's wool and MNT5,500 for female's.
Also for sale were cowhide for between MNT40,000 and MNT60,000 a kilogram, horsehide for MNT
35,000, yak hide for MNT25,000 to 60,000 and camel hide for MNT18,000 to MNT22,000.
Source: News.mn
BHP EXPECTS COPPER MARKET TO REMAIN IN SURPLUS UNTIL END OF DECADE
Top global miner BHP Billiton expects the copper market to remain in surplus until the end of the
decade, Chief Financial Officer Peter Beaven said on Tuesday. Beaven told a briefing in London
that the copper market was not expected to move into balance until about 2019 due to a surge of
investment which has created higher supply. BHP was also cautious about iron-ore prices due to
production cuts by steelmakers and new mines launching this year, boosting supplies.
Source: Mining Weekly
WORLD STEEL OUTPUT DROPS AFTER 5-YEAR RISE
Reflecting a global economic slowdown, worldwide steel production dropped 2.8 percent last year
to 1.62 billion tons, just under half of the total produced by China, the World Steel Association
(WSA) said Monday. Global steel production slipped back after five years of constant rises, with
China, easily the world's largest consumer and producer, last year producing 803.8 million metric
tons (Mt), down 2.3 percent from 2014. Its actual share of world output, however, increased by 0.2
percentage points to 49.5 percent
The rise of China's steel market share comes as competitors accuse Chinese steel firms of dumping
their production onto world markets at prices below cost. “Crude steel production decreased in all
regions except Oceania in 2015,” the WSA said following the first overall annual drop since 2009,
when overall output stood at 1.24 billion tons. Asia overall saw production fall 2.3 percent to 1.11
billion tons.
Source: Industry Week
POLITICS
PARLIAMENT FINALLY SEES QUORUM FOR SPECIAL SESSION
Parliament finally convened on 19 February, but for one day only after multiple delays from poor
attendance. A boycott of the meetings from the Mongolian People's Party (MPP), calling the session
unnecessary, has caused some disruption in the months before parliamentary elections to be held
on 29 June. A special session called to resolve issues surrounding the dismissals of court officials
and lingering legislation was put on hold after failing to reach a quorum. In addition to the absence
of the MPP, Parliament Speaker Zandaakhuu Enkhbold has failed to get enough members to show
from his own government.
Parliament needs a quorum of at least 50 percent attendance, or 39 members, to commence with
debates and voting.
Source: News.mn
MINERS TO RECEIVE COMPENSATION FOR REVOKED LICENSES, SAYS MINISTER
The Mining Ministry has promised to compensate license holders for exploration and mining affected
by a decision to put a slew of land in the Gobi desert under state protection. The Tost and
Tosonbumba Mountains, located in Gurvantes Soum, Umnugobi Aimag have been taken as state
reserves by the government. Mining Minister R. Jigjid said at a 28 January press conference that
compensation would be made for any licenses issued for the area between 2003 and 2009.
Source: Montsame
CONSTITUTIONAL COURT JUDGE RESIGNS
Judge N. Jantsan will lead the Constitutional Court following the resignation of J. Amarsanaa that
resulted from fallout occurring from a decision that suspended the state-backed 8 percent mortgage
program. Parliament voted to dismiss the judge at a special session held last week during a
legislative break.
Jantsan is currently the court's longest-serving member. The next step is for a ninth member of the
court to be chosen and presented to the Supreme Court.
Source: Unuudur, News.mn
NEW FACTION EMERGES WITHIN DEMOCRATS' RANKS
Members of the Democratic Party are following L. Bold to establish yet another faction within the
highly fragmented party whose ability to lead the country has been somewhat derailed by intra-
party politics. Bold has joined forces with MPs Ts. Oyungerel, G. Batkhuu, A. Bakei and S.
Bayartsogt to form an NGO called the Initiative for Mongolia Democracy that will focus on leading
development through fiscal savings and emboldening the country's democratic principles. The NGO's
charter includes a statement about running joint political activities with members, signaling that
the alliance is more than simply a means for philanthropy or advocacy.
Source: Udriin Sonin, assa.mn, gogo.mn
MPP TO WEIGH IN ON PERFORMANCE OF RULING DEMOCRATS
The Mongolian People's Party (MPP) plans to unveil a legislative strategy that will set the stage for
campaigning against the government-leading Democrats ahead of elections scheduled for June. On
the surface, their plan does not look like a hard swerve from the road government is currently on.
MPP members at a 24 February press conference promised to focus on reducing poverty and
unemployment while cracking down on corruption. However, they will likely come down hard on the
shortcomings of Norov Altankhuyag and Chimed Saikhanbileg in their review of how well the
government has met its plans set down since 2012.
Source: News.mn
POLITICAL PARTIES SEEKING CONSOLIDATION BEFORE ELECTION
Political parties look ready to consolidate their forces for what is likely to be a tough competition in
this year's parliamentary elections. The Mongolian People's Party (MPP) and Democrats are mulling
the thought of absorbing smaller parties, with the Democrats making the first move by signing a
memorandum of understanding to consider a merger with the Civil Will-Green Party. The Mongolian
National Democratic Party is likely to merge as well. Meanwhile, the MPP continues its efforts to
reunite with members of its spin-off party, the Mongolian People's Revolutionary Party (MPRP).
Polls from the Sant Maral Foundation show that both the Democrats and MPP have lost supporters,
which has set the stage for new entrants, including the National Labor Party (KhUN) headed by MP
Sainkhuu Ganbaatar. However, KhUN has come into its own problems as internal disputes have
spilled into public domain. Media has also attacked the party's leader, Ganbaatar, for including
false information in his resume.
Source: Mongolian Investment Banking Group
EU OFFERS SUPPORT TO MONGOLIA IN HOSTING ASEM SUMMIT
Europe has offered a helping hand to Mongolia for its hosting of the Asia Europe Meeting (ASEM)
Summit scheduled for July in Ulaanbaatar. The hosting of the event has been a launchpad for
Ulaanbaatar officials to improve services such as hotel hospitality and complete infrastructure
projects such as the new international airport to be built at Khushig Valley. “Mongolia has vast
experience in strengthening the democracy, and this Summit is to coincide with its 20th
anniversary, so the EU will support Mongolia in hosting this grand event,” said a chief E.U.
consultant for external relations, Michael Metissen, in a meeting with Parliament official B.
Boldbaatar.
Boldbaatar, who is secretary general for the Office of Parliament, said he was confident that
together they could host the event without fail and pointed to Mongolia's experience in hosting the
Organization for Security and Co-operation in Europe parliamentary autumn session.
Source: Montsame
CIVIL AVIATION AGREEMENTS SIGNED
Mongolia has signed civil aviation agreements with four countries for agreed upon common
standards such as regulations on international flights and licensing for pilots. Prime Minister Chimed
Saikhanbileg signed the agreement on 22 February with officials from Czech Republic, Malta,
Myanmar and Luxembourg, which could open the door to air traffic between the countries and
Mongolia.
Source: Montsame
MONGOLIA OPENS INTERGOVERNMENTAL RELATIONS WITH INDONESIA
Parliament officials have signed a memorandum of understanding with Indonesia's legislature during
a visit by a foreign delegation from 21 to 26 February.
Source: Montsame
ALLEGED IAAC RECOMMENDATION SAYS ENKHBAYAR PROHIBITED FROM TAKING OFFICE
The former president who spent a year in prison for graft, Nambar Enkhbayar, should not be
permitted to take office while his sentence is still in effect, according to sources familiar with a
statement from the Independent Agency Against Corruption (IAAC). Enkhbayar received a
presidential pardon from his 7-year sentence handed down in 2012 when found guilty of corruption
for collecting on the illegal privatization of state assets. Later that year, the sentence was reduced
to 4 years
The senior director from the government administration, Sh. Solongo, has denied the claim,
however, saying that no such statement had been delivered to the government yet.
Source: News.mn
NGOS DEMAND THAT MONGOLIA CANCEL CENTERRA'S REMAINING LICENSES AT NOYON UUL
The Gatsuurt mine owned by Canada's Centerra Gold Inc. is under fire again as environmentalist
groups including the sometimes extremist Gal Undesten have filed a suit with the aim of canceling
two of the miner's licenses at a site of historical and environmental significance. Less than a month
after Parliament gave the okay for government to negotiate a deal with Centerra for ownership of
the mine, the Save Mount Noyon environmental group has banded together with partners for the
filing of a suit with preliminary administrative court. They have also asked government to rethink
its decision on moving forward with plans to mine Gatsuurt.
Among the protesters is Ts. Munkhbayar, who was once arrested along with other members of the
Gal Undesten after an inactive grenade was thrown to the ground during a protest and authorities
found bombs planted in buildings not far from the Government Palace. “If the work on the mine
goes ahead, not only will ancient tombs be destroyed, but fresh water springs will be obliterated,”
said Munkhbayar.
Source: Zuunii Medee, News.mn
POLICE SEIZE UNVERIFIED LIQUOR, TOBACCO PRODUCTS IN KHUVSGUL
Police in Khuvsgul Aimag cracked down on the sale of unverified liquor and tobacco products during
the three-day Tsagaan Sar lunar new year festival. Police counted 370 packs of cigarettes made in
Russia that did not have rights to be sold in Mongolia sold on the street. Those packs had not been
inspected and did not have permits for their sale.
Other crimes often committed during the holiday season were the stealing of traditional pastries,
dumplings and meats.
Source: Mongolia.GoGo.mn
SELENGE GOVERNOR BANS WINTER HORSE RACES
The governor of Selenge Aimag has issued a ban on horse racing before 30 June, saying it is in the
interest of protecting the child jockeys. The governor said the ban on races is in coordination with
the International Convention on the Rights of Children and Mongolia's election law. Tuv Aimag's
administration has joined in with the decision, saying no to all horse races during the winter.
Source: Montsame
BCM UPDATES:
ANNOUNCEMENTS
1ST ANNUAL BCM SUMMIT, 21 APRIL, BLUE SKY HOTEL
The Business Council of Mongolia (BCM) will host its 1st Annual BCM Summit on 21 April at Blue Sky
Hotel and Tower in Ulaanbaatar. The forum will provide a venue for a wide spectrum of
informative, meaningful and innovative topics important to Mongolia's business community. The
focus will be on innovative business trends, risk management strategies to cope with survival in an
economic downturn, and more.
BCM continues to maintain a strong membership base consisting of nearly 240 business
stakeholders—both national and international—including international financial institutions,
embassies and educational institutions. BCM has more than 350 volunteers in its 8 working groups
lending their wealth of experience in recommendations used by BCM to advocate for a better
business climate.
Registration is MNT100,000 per head for members, compared with the regular fee of MNT120,000.
Save money with the ‘early bird rate’ of MNT80,000 for members and MNT100,000 for non-members
by registering before 21 March. For more information, email Saruul at [email protected].
________________________________________
MONGOLIA MINING FORUM, 8 MARCH, AT PDAC, TORONTO
Mongolia will promote the progress made in its mining and geology sectors in recent years on 8
March at PDAC, the world’s leading annual International Convention, Trade Show & Investors
Exchange for minerals exploration and mining scheduled on 6 to 9 March in Toronto.
The Mongolian delegation led by the Ministry of Mining and Mineral Resources Authority (MRA) will
consist of representatives of the ministry, major mining companies including Erdenes Mongol, MRA,
Invest Mongolia Agency, the Petroleum Authority, and more. A working group led by MRA will
provide Mongolian businesses the opportunity to promote their projects to investors and have one-
to-one meetings with potential investors during this world leading international mining investors’
conference.
For more information, call Tsetsegmaa, the senior manager at Invest Mongolia, at +976 88008161,
or email [email protected]. You can also reach MRA External Affairs Officer Chinzorig
at +976 99000357 or [email protected].
________________________________________
MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE
Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the
Government Palace on 30-31 March.
This year's two-day event will be held under the theme “Lessons learned, Facing challenges and
Solutions pending,” where participants will seek to define the country’s current national and global
context, as well as outline alternatives for the promotion of future economic and social prosperity
in Mongolia.
BCM members will have a 30 percent discount on registration. Register here, and send an email to
[email protected] mentioning your BCM membership to receive your discount. For more
information email the same address or call 11 321051.
________________________________________
MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX
The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year
from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will
feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors
representing the industry's major companies. Guest speakers from the government, universities, and
companies will lead seminars of the government policy for mineral resources and new laws focused
on mining and infrastructure in Mongolia.
For more information, contact Munkh-Erdene via email at [email protected] 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 [email protected].
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 24 February in partnership with our member,
The Nomadic School of Business LLC, on the topic "Exploring your career, purpose, and the leader
within you". A total of 42 people attended the training session representing 26 member
organizations. The directors of The Nomadic School of Business - Anthony Willoughby, who first
visited Ulan Bator in 1975, has over 30 years of experience pioneering leadership development in
Asia, working with executives in Google, Coca Cola, Morgan Stanley and many other frontier
thinking companies – and Josephine Stoker, who has worked in one of the leading strategic
consultancy companies in Singapore, guided the participants through a unique process of
development. Included were a new way of looking at your career; exploring your life plan, purpose
and motivation; working out where you want to focus and the skills you need to develop; and
understanding a simple and creative tool, which you can use to gain insights into your priorities.
BCM ADVOCACY NOTES
Latest draft of Labor Law bill - Government working group
An open discussion was held between the Ministry of Labor and the private sector on the draft Labor
Law on 16 February. The December draft is reflective of many of the recommendations proposed by
the BCM's Legislative Working Group. Labor Minister G. Bayarsaikhan reported that the draft will be
submitted in April for the autumn Parliamentary session. New Working Group members assigned by
the Labor Minister to draft the bill were introduced and promised to review further comments from
the private sector.
For more information, please contact Working Group Coordinator at [email protected].
Click here to read the latest draft of the bill.
BCM WORKING GROUP NEWS
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th
floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan
Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate
Capital Ltd and Mongolian Bankers’ Association.
Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes
proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG
(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working
towards increased foreign investment in Mongolia’. It was suggested by members to include more
emerging players in the capital markets such as the insurance industry and most importantly engage
other stakeholders from government entities with the Working Group. Updates were given on the
developments of ‘custodian banking’ and how the WG can leverage their efforts towards sound
regulations for custodian banks.
On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the
Treasury, Oyu Tolgoi will deliver a presentation on project financing.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at [email protected].
_________________________________________
Risk Working Group
BCM’s Risk Working Group’s 2016 kick-off meeting was held on Thursday, 21 January at Suite 101,
12th floor Express Tower, with 14 members in attendance, representing Mandal General Insurance,
MIG Insurance, Deloitte Onch Audit, XacBank, Wagner Asia, Iarudi, Golomt Bank and Bagatumurch
LLC.
Agenda of the meeting:
•16:00-16:10 Introduction and Opening remarks by Working Group Co-Chairs
•16:10-16:50 "Case studies on tax related cases tried at the Supreme Court of Mongolia"
(Bolorchimeg Kh, Lawyer ELC LLP)
•16:50-17:35 Discussion on proposed topics and finalize plan for 2016
Guest speaker, Bolorchimeg of ELC LLP, emphasized that the presentation is illustrative only and it
does not go into details or the legal implications. The presentation focused on: (i) Tax cases
resolved by the Supreme Court - last 3 years, (ii) Tax Dispute Resolution Process and (iii) Case Study
of Tuushin LLC vs Tax Inspectors of General Tax Authority. Members in attendance were interested
in the tax inspectors’ inspection process and what it entails, and in the statistics of the tax related
cases resolved by the Supreme Court.
Zaya Bolorbold, co-chair of the Risk WG (RWG) presented an overview of the last year’s activities
and introduced proposed plans for 2016. Working group members have supported the draft plan for
2016, with some members volunteering as main speakers from Deloitte Onch Audit, Bagatumurch
LLC. Given the current weather condition in Mongolia, it was decided that BCM to reach-out to the
NEMA and/or State Emergency Commission to request a presentation on the 'dzud* situation; it was
also agreed that the presentation can be complimented with Risk Working Group members’
presentation on how the impacts of the dzud will be translated into insurance claim. Next meeting
is scheduled for 3rd week of February.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at [email protected].
_________________________________________
Business Ethics Working Group
BCM’s newest and eighth Working Group, Business Ethic’s meeting was held on 18 January at the UN
House from 16:00 to 17:30 with 15 members in attendance.
Private sector: Atlas Copco, Mandal General Insurance; Government: Independent Agency against
Corruption (IAAC)
Other stakeholders: U.S. Embassy, UNICEF, Transparency International, World Vision, Extractive
Industry, Transparency International, Research Planning Institute;
Agenda of the meeting:
- Introduction of Working Group’s objectives
- Featured guest speaker: Anders Berglund, “The Business Code of Practice at Atlas Copco Group”
- Proposed topics and plan for 2016
The formation meeting focused on identifying collective objectives for the group and finalizing
topics for 2016. At the meeting, members volunteered to speak and some have proposed specific
deliverables as milestones as a group achievement for the year. It was decided to meet once every
two months and attract more local companies to hear their challenges in maintaining their integrity
in their respective sector.
For more information about this event, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at [email protected].
_________________________________________
BCM’s Logistics Working Group
BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office
Building with 7 people in attendance representing Mongolian Express Co., Ltd. (known as Monex),
Representative Office of Mitsui & Co., Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-
Dolgoon Delgerekh LLC.
Agenda of the meeting:
• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”
• Discuss and plan WG’s 2016 activities
Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.
Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the
company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service
in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in
the delivery logistics within Ulaanbaatar.
Meeting participants were interested in the expansion plans of the company, such as delivery
services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave
comprehensive answers about the company’s plan for establishing cargo service between South
Korea and Mongolia initially and delving into other markets.
Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.
He again encouraged our members to read through the soft ideas laid out and provide comments.
Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,
so that members interested or operating in that topic area can actively participate and bring in
more insight.
The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the
questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM, at [email protected].
_________________________________________
BCM’s Energy and Environment Working Group
BCM's Energy and Environment WG meeting was held on 3 December, 2015 at EEIBC from 16:30-
18:30. The meeting was attended by 16 people with the following stakeholders:
Private sector: Newcom, Sopocco LLC, Areva Mongol LLC, Observe Consulting LLC, MCS Energy
Government: Ministry of Environment, Green Development and Tourism, Energy Development
Center of Ministry of Energy
Others: GGGI, WCS, French Embassy, Embassy of Canada
Guests: Sustainable Fiber Alliance
New members: D. Otgonbat, Observe Consulting LLC and Ch. Sarnai, Clean Energy Asia of Newcom
Group
Agenda of the meeting:
Discussion Topic: What's happening in Paris during Climate change events: What are the implications
for private sector?
Introduction and Opening remarks by Working Group Chair
"Introduction about Climate Change Conference/21 and Mongolia's commitment status" by D.Saruul,
Project Manager, Biennal Update Report to UNFCCC.
"Introduction about French Embassy and Overview about COP21 in Paris" by Raphael Droszewski,
First Advisor, Chief Adjoint de mission et Consul, The Embassy of France in Mongolia
Discussion on the topic among participants
Meeting minutes summary:
Bulganmurun Tsevegjav, Senior Program Officer of GGGI-Mongolia and Chair of the BCM’s Energy &
Environment WG (EEWG), introduced Jon Lyons, GGGI’s Country Representative to Mongolia, as an
upcoming Chair of the EEWG for 2016 during her absence.
Key points agreed during the meeting was to organize the next meeting in Jan or Feb 2016 following
up on the COP21 outcomes, updates on financial mechanisms, available funds and incentives for
private sector to develop low-carbon projects and to discuss its implications for the private sector.
For more information, please contact Bayarmaa Amarjargal, Vice Director at
_________________________________________
BCM Education Working Group
BCM’s Education Working Group was held on 26 November 2015 at Executive Excellence
International Business Center, 10F Galaxy Tower from16:00 to 18:00. Fifteen people attended the
event representing foreign mission in Mongolia, private sector, universities and consultants of donor
funded projects:
Foreign Mission: Canadian Embassy;
Universities: National University of Mongolia, Mongolian University of Science and Technology
Private sector: PwC, Minter Ellison
Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education
and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The
Global Fund;
Agenda of the meeting:
16:05-16.10 Introductions
16:10-16:25 Update on Higher Education Reform Project activities (IRIM/Saha)
16:25-16.40 Update on Vocational and Technical Education Activities (VETP/Pascal)
16:40-17:10 Update on Labor Law Amendments, TVET Law Amendments: Higher Education
Amendments (IRIM/Saha)
17:10-17:30 Updates by members (FLP, Mandal)
Meeting minutes summary:
Opening remarks by Education Working Group Chair-Saha Meyanathan with passing of the
information about being selected as the best Working Group of the year 2015.
Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB
funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities
will be organized first week of December.
During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of
building the capacity of the professors, as they are the ultimate knowledge givers to the students.
The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher
education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to
highlight a few:
For more information about this event, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at [email protected].
‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES
Guest Speaker: Gerelt-Od Ts, Ministry of Environment, Green Development and Tourism (MoEGDT)
Presentation topic: "Climate Change of Mongolia & COP21"
Where & When: National University of Mongolia, 23 February 2016
Mr. Gerelt-Od Ts, MoEGDT, delivered a presentation titled "Climate Change of Mongolia & COP21".
Over 50 students attended the lecture.
Mr. Gerelt-Od was one of the three representatives from Mongolia to enter into the negotiations at
the 2015 United Nations Climate Change Conference, COP 21 held in Paris, France, from 30
November to 12 December 2015. Mr. Gerelt-Od's comprehensive presentation covered Mongolia's
historic engagement in the global movement against climate change to recent highlight of
Mongolia's pledge of 50'000 US dollar to the Green Climate Fund. The presentation is available here.
________________________________________
Guest Speaker: Amartuvshin Sh, CEO-AFAcademy
Presentation topic: "Personal development: New season"
Where & When: The Institute of Finance and Economics, 18 February 2016
Amartuvshin Sh, CEO of AFAcademy, delivered a presentation titled "Personal Development: New
season" at the Institute of Finance and Economics (IFE) on 18 February. Over 60 senior students
attended the lecture.
Mr. Amartuvshin, an experienced motivational speaker and family counselor, shared a success
formula, which he has been using for his lectures to CEOs of key businesses in Mongolia. Students
expressed their gratitude to Mr. Amartuvshin and expressed their interest in various tools that can
be used for personal development.
For more information about the lectures, please contact Khulangoo, Working Group Coordinator at
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
Presentations:
BCM Monthly Meeting, 22 February:
- A. Baatarpurev, Director of Markets Development Department, Financial Regulatory Commission -
"Financial Market Developments in Mongolia"
- Jennifer Bielman, Country Director, MercyCorps Mongolia - "Mercy Corps: Building Resilience in
Mongolia"
- D. Uuriintuya, Chairman, Mineral Resources Authority of Mongolia - "Mongolian Events during PDAC
2016 in Toronto"
- N. Munkhnasan, General Director, Monpolyment - "Overview of Monpolyment"
_________________________________________
BCM Monthly Meeting, 25 January:
- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of
the Second Compact agreement between Government of Mongolia and the USA Millennium
Challenge Corporation -
“Development process of the second compact agreement between government of Mongolia and USA
Millennium Challenge Corporation”
- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”
_________________________________________
BCM Monthly meeting on December 7:
- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better
Leaders Through Education & Idea Exchange”
- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant
Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –
STOPP”
- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against
Corruption (IAAC) of Mongolia - “Introduction of IAAC”
- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”
_________________________________________
Mongolia Projects & Investment Summit Hong Kong, 16-17 November:
- Zoljargal Naidansuren, Governor, Bank of Mongolia, “The new equilibrium: reforms to sustainable
growth and savings"
- Narantuya Zagdkhuu, Chair, Financial Regulatory Commission of Mongolia, "Making Mongolia a
frontier again: financial market developments"
- Norihiko Kato, CEO, Khan Bank, "Where does the banking sector fit it?"
- Munkhsukh Sukhbaatar, Rio Tinto, "The way forward for Oyu Tolgoi underground"
- Bat-Uul Erdene, Mayor of Ulaanbaatar city, "City of Ulaanbaatar-2030"
- Matthieu Le Blan, EBRD Head office in Mongolia, "The importance of economic diversification and
import replacement opportunities EBRD's role in enabling progress"
- Tuvshintugs Batdelger, Economic Research Institute, "Transaction Cost of Conducting Business in
Mongolia: SME perspective"
- Oliver Thirlwall, Asian Real Estate Capital, "Distressed opportunities-banking and real estate"
- Kevin Trzcinski, Vice President Corporate Development at Worldwide Power & Technology (HK)
Ltd., "Mongolia as a destination for Scientific Research & Development"
- Randolph Koppa, President, Trade and Development Bank, "Challenges and Opportunities for
Growth"
_________________________________________
Mongolian Annual Risk Management Forum, 11 November:
- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -
Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group
- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western
International Mongolia
- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,
NPC&Mandal LLC
- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head
Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor
- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General
Insurance
- "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC
Mongolia
- "Corporate Crises Management" - G.Odbayar, Mining National Operator
_________________________________________
BCM Monthly Meeting on 2 November:
- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper
business”
- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -
“Introduction to Transparency International’s Business Principles for Countering Bribery”
- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor
Law”
_________________________________________
Mongolia Reports:
- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”
- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform
Priorities (Sep 2015)
- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"
- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"
- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"
- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,
2015, “FDI Environment in Mongolia”
- Hogan Lovells, “Law on State Registration of Legal Entities”
_________________________________________
Interviews:
- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More
Effective"
- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)
- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,
August 20, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV
News, August 20, 2015;
- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview
SOCIAL NETWORKS
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Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the BCM NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.
Social stats: Social stats: BCM now has 11,376 fans on our Facebook fans page, 1,978
connections on LinkedIn network, and 1,970 followers on Twitter.
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Website: According to Google Analytics report, as of 24 February, the daily web traffic to BCM
website was 65 visitors with 93 sessions. 83% were from Mongolia, 4% from Japan and 2% from Hong
Kong and United States each.
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BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column
featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and
proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study
Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia
Technology Innovations."
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The BCM NewsWire is used as source for the "MM Today" News program in English aired by Mongolia
National Broadcasting (MNB) on Fridays at 19:00.
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BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.
From January 2013 to February 2016 we posted a total of 110 news items related to BCM activities,
economic and business related updates.
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The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos
from BCM events.
As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy
newly introduced interactive features such as: edit your organization's profile information; post
vacancy notices from your organization; post cooperation proposals with other members or deals
you would like to offer to other BCM members; and start a forum and ask questions directly on the
web platform. Of course you can also visit our website for news information, interviews, event
photos, videos and announcements regarding BCM.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
January 31, 2016 *1.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.0% y-o-y, 4.0% Core - Ulaanbaatar City, January 31, 2016
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]
CURRENCY RATES – 25 February 2016
Currency Rate
US dollar USD 2,037.14
Euro EUR 2,245.74
Japanese yen JPY 18.16
British pound GBP 2,836.82
Hong Kong dollar HKD 262.19
Chinese Yuan CNY 311.75
Russian Ruble RUB 26.66
South Korean won KRW 1.64