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BUSINESS COUNCIL of MONGOLIA NewsWire
www.bcmongolia.org [email protected]
Issue 264 – March 7, 2013
HAPPY WOMAN‟S DAY!!!
NEWS HIGHLIGHTS:
Business
Rio Mongolia extends OT funding as talks continue;
Turquoise Hill jumps 11 percent after allaying Oyu Tolgoi fears;
Oyu Tolgoi employee wins suit for unfair dismissal;
Erdenes TT picks domestic contractor;
Entree attains complete funding for USD 55 million package;
Prophecy updates on Tugalgatai transaction;
Moody's downgrades Mongolian Mining to B2; outlook stable;
MSE listed companies to distribute dividends;
Newcom appoints new CEO;
APIP hires website designer;
Airland Logistics opens office in UB;
MGG issues stock options to employees;
Khan Bank installs 3 drive-through ATMs.
Economy
Investors back Mongolia despite mining disputes;
Rio-Mongolia mine failure would be “catastrophe,” minister says;
Mongolia digs deep to find a next hot product for branding at MEF;
UB might face power shortfall beginning next year, says energy official;
How Mongolia can improve infrastructure spending;
By the second-mobile charges begin 15 March;
NGOs build Mongolia's supply chains;
Chinese-aided food and drug lab opens in UB;
Mongolia to trade debt forgiveness for technical assistance;
Two Mongolian graduate students win computer science competition;
Let economics dictate politics, not vice-versa, says MIBG chairman;
Mongolia eager to tap ties with Hong Kong for growth;
Mongolia Club opens in Hong Kong;
Mongolia metals industry report;
China steps up spending to re-balance economy.
Politics
Government mandates 34 percent control of Sainshand;
Government budgets USD 2.3 million for nuclear projects;
Mining minister learns of shortfalls in Petroleum Law;
Premier questioned on TT-West block contract with Khishit Arvin;
Elbegdorj makes judge appointments;
MPP to establish United Mongolia faction;
Enkhbayar's son exits MPRP;
Former Dutch premier gives Mongolia a lesson in “Dutch disease.”
*Click on titles above to link to articles.
SPONSORS
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Mongolian National Broadcasting
BUSINESS
RIO MONGOLIA EXTENDS OT FUNDING AS TALKS CONTINUE
Turquoise Hill Resources Ltd., the Rio Tinto PLC unit in charge of the Oyu Tolgoi copper and gold
project, said construction funding was extended while talks continue with Mongolia's government to
resolve disputes.
―The Oyu Tolgoi LLC board has approved continued funding to progress the project,‖ Vancouver-
based Turquoise Hill said in a statement. ―All parties have agreed to continue discussion during
March 2013, with a goal of resolving the issues in the near term.‖
A dispute between Rio Tinto and Mongolia escalated this year as President Ts. Elbegdorj called for
more control of the USD 6.6 billion project. The talks extension is crucial for Oyu Tolgoi, in which
Turquoise Hill holds 66 percent, for an interim two-month budget ended yesterday. Oyu Tolgoi's
annual budget for 2013 has not been approved yet by both parties, Mongolia's mining ministry said
in a statement posted on its website today.
―The reports of progress between the two shareholders of Oyu Tolgoi is certainly welcome news,‖
said Jackson Cox, founded of Ulaanbaatar-based consulting firm Woodmont International. ―They
aren't out of the woods yet and as long as differences remain it will be important for both sides to
redouble efforts so that this critical project can move forward in confidence.
Oyu Tolgoi will begin production as planned by the end of June, subject to a resolution, Turquoise
Hill said in a statement dated yesterday.
Source: Bloomberg
TURQUOISE HILL JUMPS 11 PERCENT AFTER ALLAYING OYU TOLGOI FEARS
Turquoise Hill Resources Ltd. raced ahead more than 11 percent on Friday after soothing investor
fears about negotiations with the Mongolian government over the future of the massive copper-gold
mine.
Stock in Turquoise Hill, which is controlled by Rio Tinto PLC, was changing hands at USD 7.05, up
11.1 percent by lunchtime in heavy volumes after the Vancouver-based company characterized
discussions over project development and costs, operating budget, project financing, management
fees and governance as ―productive.‖
Turquoise Hill, worth USD 6.9 billion in Toronto, is still trading down more than 60 percent over the
past year and is down from a peak above USD 28 a share hit in March 2011. Negotiations over Oyu
Tolgoi, set to go into commercial production by end of June, will continue through March, according
to the press release.
Mongolia has accused Rio Tinto of working fast and loose with financing for the project—an
underground mine to complement the open pit could put the final bill at USD 13 billion by some
estimates.
Source: Mining.com
OYU TOLGOI EMPLOYEE WINS SUIT FOR UNFAIR DISMISSAL
The dismissed staff member S. Gantuya won her lawsuit against Oyu Tolgoi LLC for unlawful
dismissal at the Sukhbaatar District Court on 27 February.
S. Gantuya claimed that she was dismissed unfairly after she complained of a huge salary difference
between foreign and Mongolian staff members and unethical alleged behavior by senior officials,
including threats to Mongolian staff members.
―I waited for justice four months. I was not sure against the giant mining company, but staff
members at the company encouraged me,‖ said Gantuya.
Gantuya said she was fired without reason and the court's decision demanded Oyu Tolgoi re-hire her
along with compensation for health and social insurance.
Source: News.mn
ERDENES TT PICKS DOMESTIC CONTRACTOR
Mongolia's biggest state-owned coal mining company, Erdenes Tavan Tolgoi LLC, has picked a
domestic contractor, Khishig Arvin, to prepare work at the coking coal-rich West Tsankhi block of
the Tavan Tolgoi deposit. The contract is for preparation work only, and does not include the
excavation of coal.
The selection of Khishig Arvin, a little-known company, throws into doubt the opportunities for
foreign mining firms (such as U.S.-based Peabody Energy Corp. or China's Shenhua) to be involved in
operations at Mongolia's most-prized coal deposit. Khishig has been contracted to remove topsoil at
the West Tsankhi block and to carry out the box cut for the deposit—a project that is expected to
take up to six months. In October last year Erdenes TT expressed an interest in contracting Peabody
to perform this work, but sources close to the matter suggest that Mongolia backed off after quiet
protests against such an arrangement were lodged by both Russia and China. It appears that
Mongolia turned away from dealing with the U.S. coal miner and decided to play safe by selecting a
domestic producer in Khishig Arvin.
Following its six-month preparation project at West Tsankhi, Erdenes TT will need to find another
firm to excavate the coal from the site. That firm could be domestic, an overseas entity or even
Erdenes TT itself. The young company has until now only used contract miners, but has expressed
interest in hiring equipment to begin its own operations. Should Mongolia choose to go it alone, it
would be turning its back on world-class mining operators that had been prepared to put much
needed foreign direct investment into the country.
The source's forecast for policy trends in Mongolia is unlikely to change, given that the selection of
Khishig Arvin confirms the recent trend of a more nationalistic approach to mining policy.
Source: Economist Intelligence Unit
ENTREE CLOSES USD 55 MILLION FUNDING PACKAGE
Entree Gold Inc. closed its CAD 10 million private placement to Sandstorm Gold Ltd. The action
brings all three components of a USD 55 million financing package from Sandstorm to a completion.
The company issued 17.86 million common shares to Sandstorm at a price of CAD 0.56 per share.
Sandstorm has advised Entree that it does not have any present intention to acquire ownership of,
or control over, additional securities of Entree. It is the intention of Sandstorm to evaluate its
investment in Entree on a continuing basis and such holdings may be increased or decreased in the
future.
Source: MarketWire
PROPHECY UPDATES ON TUGALGATAI TRANSACTION
Prophecy Coal Corp. announced continued discussions with Tethys Mining LLC and its
representatives regarding the purchase of Tugalgatai coal licenses.
Pursuant to the credit agreement between Prophecy and company's creditor, Waterton Global Value
LP, the expiry of the original purchase and sales agreement is subject to (a) Prophecy's setting aside
USD 3.5 million in escrow for purchase of the licenses and repayment of the loan; (b) Prophecy's
agreeing to issue two million common shares to Waterton, subject to Toronto Stock Exchange
approval; and (c) Prophecy‘s agreeing to pledge additional security to Waterton.
Source: MarketWire, Prophecy Coal Corp.
MOODY'S DOWNGRADES MONGOLIAN MINING TO B2; OUTLOOK STABLE
Moody's Investors Service downgraded the corporate family and senior unsecured bond rating of
Mongolian Mining Corp. to B2 from B1. The ratings outlook is stable.
―The downgrade reflects the weakened financial profile of MMC and Moody's expectations that its
credit metrics are unlikely to improve materially over the next 12 to 18 months to a level that is
appropriate for a B1 rating, as a result of the prolonged weakness in coking coal prices,‖ said Simon
Wong, a Moody's vice president and senior analyst.
―Coking coal prices have firmed recently, largely due to restocking demand, but there is still some
uncertainty over whether prices will continue to rise for the remainder of this year. Moody's expects
prices to average USD 165 to USD 175 per ton for the next 12 to 18 months due to the moderation in
the growth in demand for steel and the ample level of coking coal supplies,‖ he added.
Source: ETNet
MSE LISTED COMPANIES TO DISTRIBUTE DIVIDENDS
Seven of the companies listed on the Mongolian Stock Exchange (MSE) have submitted resolutions to
the exchange on their intention to distribute dividends. Companies include Gobi, Hermes Center,
Sharyn Gol JSC, BDSec JSC, Takhi-Co, and Bayanteeg JSC.
Source: Mongolian Stock Exchange
NEWCOM APPOINTS NEW CEO
Newcom Group has appointed U. Baatar as chief executive officer to replace B. Byambasaikhan, the
Business Council of Mongolia's (BCM) chairman.
Unenbat is a 10-year veteran of the group who served as chief financial officer of both Newcom LLC
and Eznis Airways LLC prior to this appointment.
Source: Newcom Group
APIP HIRES WEBSITE DESIGNER
Asia Pacific Investment Partners has selected Heehaw Digital to develop a website and digital
strategy for its upcoming Invest Mongolia campaign.
―We're delighted to be working with Heehaw Digital on the Invest Mongolia campaign, which will
encourage individuals to consider the exciting investment opportunities available in Mongolia.‖
The Mongolian property developer's website is expected to go live in April 2013.
Source: The Drum
AIRLAND LOGISTICS OPENS OFFICE IN UB
International project and freight forwarder Airland Logistics has been awarded exclusive
representation of the Worldwide Project Consortium Ltd. (WWPC) in Mongolia—coinciding with the
company's opening of an office in Ulaanbaatar.
The foreign-owned company has been represented in Mongolia for more than eight years providing
project and general logistics support during the country's mining boom.
―Establishing a local presence in Mongolia was a natural progression for us and supports our
commitment to the mining industry in linking local operations to global trade lanes such as
Australia, Africa, Southeast Asia, North and South America and CIS,‖ said Jan Jensen, chief
executive officer.
Source: Airland Logistics
MGG ISSUES STOCK OPTIONS TO EMPLOYEES
Mongolia Growth Group Ltd. (MGG) announced it issued stock options to its employees.
MGG issued 350,000 five-year stock options for purchase at a price of USD 4.13 a share to salaried
employees. Additionally, the company has issued 75,000 three-year stock options to a new board
member and 50,000 three-year stock options to two consultants based in Mongolia at a price of USD
4.13 a share.
Source: Mongolian Growth Group Ltd.
KHAN BANK INSTALLS 3 DRIVE-THROUGH ATMS
Khan Bank LLC recently installed three drive-through automated teller machines (ATMs) in
Ulaanbaatar. Khan plans to install more ATMs around the city within an unspecified timeframe.
For the year 2011, Khan Bank reported to the U.S.-based nonprofit Microfinance Information
Exchange (MIX) total assets of USD 1.6 billion, a gross loan portfolio of USD 1 billion, deposits of USD
1.3 billion, return on asset (ROA) of 3.91 percent, return to equity of 40.9 percent, approximately
300,000 active borrowers and 1.9 million depositors. Khan classifies 51 to 60 percent operations as
microfinance.
Source: Micro Capital
ECONOMY
INVESTORS BACK MONGOLIA DESPITE MINING DISPUTES
Renewed unease about sovereign and regulatory risk in Mongolia—triggered by a dispute between
the government and mining giant Rio Tinto over the Oyu Tolgoi copper and gold project—is on the
rise but shouldn't erode confidence among longer-term investors in the mineral rich nations, said
experts.
Fears over ―resource nationalism‖ are overshadowing the narrative with some investors fearing
Mongolia's government may be revising mining contracts and the regulatory framework to extract a
greater share of the royalties.
―The amber light warning is still lit regarding sovereign risk, although not blinking,‖ said Jim Dwyer,
Executive Director of the Business Council of Mongolia.
Though the government seems to be upping the ante with the dispute, Thomas Byrne, Moody's
senior vice president and Asia-Pacific manager of the sovereign risk group, told CNBC that
Mongolia's ―B1‖ rating ―suggests default is not imminent.‖
Mining analysts and investment managers identified presidential elections in Mongolia this June as a
key reason explaining why the government appeared to be playing up national and strategic
interests in the Oyu Tolgoi dispute.
―There is a lot of posturing going on as politicians seek to look tough in the eyes of the population,‖
said Gavin Wendt, a senior resource analyst at Mine Life in Sydney. ―Australia is a great example of
politicians pandering to vested interest groups as they talk about ―securing a fair share‖ of the
windfall profits from the resource boom. Mongolia's politicians are no different.‖
The Oyu Tolgoi dispute has overshadowed an announcement by Mongolia's President Ts. Elbegdorj
this week that the draft Minerals Law will not be heard in Parliament until after the June elections.
Source: CNBC
RIO-MONGOLIA MINE FAILURE WOULD BE “CATASTROPHE,” MINISTER SAYS
Mongolia's businesses could face a ―catastrophe‖ if Rio Tinto PLC and the government cannot
resolve a dispute over funding the Oyu Tolgoi copper and gold mine, the deputy minister for
economic development said. While the two parties met last week to decide on financing the project
this year, disagreements on taxes, cost overruns and management control resulted in a one-month
stop-gap budget. Rio Tinto in March will shoulder all the costs for a mine that at full production will
account for 30 percent of Mongolia's economy.
Rio Tinto is funding the project for daily, weekly, and monthly operations but not for the big
structural investment,‖ said Deputy Minister of Economic Development O. Chuluunbat at a forum in
Ulaanbaatar. ―It will be a catastrophe if it stops.‖
The next round of formal talks between Oyu Tolgoi's shareholders will take place in late March,
Finance Minister Ch. Ulaan said at the forum.
The dispute is damaging contractors who supply the mine, said the head of a leading business
group.
―Things are in slowdown mode because the government is not able to get along with the other
investor in the project,‖ said B. Byambasaikhan, Chairman of the Business Council of Mongolia
(BCM), which represents 244 companies and organizations. ―Members of BCM are complaining about
the fact that the contracts that they want to get from Oyu Tolgoi are not being awarded because of
the uncertainty and the disputes.‖
Byambasaikhan said 80 percent of Business Council members are directly tied to the project, which
employs around 12,000 workers, through procurement contracts or via other companies doing
business with Oyu Tolgoi.
Source: Bloomberg
MONGOLIA DIGS DEEP TO FIND A NEXT HOT PRODUCT FOR BRANDING AT MEF
Representatives of government, the academics, the private sector and society gathered at the
Government Palace this week to discuss objectives for establishing a national brand for Mongolia
this year at the Mongolia Economic Forum.
A number of suggestions were made in the selection of a product, including cashmere, leather, and
meat products, at the forum. Any of these would be a good choice for a brand, panelists felt, as
they have deep roots in Mongolian history and culture, which would be useful for production and
marketing purposes. Yet, the consensus was that all of them need further development before they
could compete with companies abroad.
―A number of small companies are sprouting, but they very much need to be raised to the world
level,‖ said B. Tsogtgerel, Minister of Industry and Agriculture, at the session for the business
environment.
The country is set on developing a product that can generate revenues comparable to the country's
mining industry in an attempt to diversify the economy and help it find markets for its exports other
than China. Finance Minister Ch. Ulaan noted that the government had already funneled money
from the sale of local bonds to develop the cashmere industry further through loans for equipment
and subsidies to encourage domestic processing.
Elaborating on that point, at the session on the business environment, Senior Advisor to the
President P. Tsagaan said that government revenue from the mining industry could be a valuable
source of funding to support various sectors of the economy. However, the country can no longer
rely on the banking sector alone.
―Commercial banks cannot be leaders in diversification of the economy. We are just participants,‖
said Central Bank Governor N. Zoljargal.
Panelists during the financing session advised that Mongolia would have to develop strategies to
target specific markets before ―pushing money to companies‖. Stephen Kreppel, director at the
Mongolian National Marketing and Coordination Office, noted that Mongolia should concentrate on a
product that is organic as well as environmentally and socially conscious to justify a high cost. He
said the mining economy, with its likelihood in effecting a strong currency and expensive labor
force, would in the next four to five years halve import prices and double to triple cashmere and
meat prices from that of today.
Not all these responsibilities would be left to government, however. A key player in this would be
the Mongolia's NGOs, who provide services such as pricing of commodities and leading marketing
campaigns. Of course, it would in the end be up to the private sector to implement production.
Source: Business Council of Mongolia
UB MIGHT FACE POWER SHORTFALL BEGINNING NEXT YEAR, SAYS ENERGY OFFICIAL
The head of the Ministry of Energy's fuel department said Mongolia's ability to supply energy to
Ulaanbaatar would be uncertain until Power Plant No. 5 and added infrastructure to Power Plant
No. 4 are built.
―We need to at least meet the 300 megawatt power demand in the first place. This would allow
energy to be supplied to 100,000 more households,‖ said N. Boldkhuu, head of fuel at the ministry.
―When the 100-megawatt extension for Power Plant No. 4 and the construction of Power Plant No. 5
in Bayanzurkh District are complete, domestic demand for electric power will be met by 2020.‖
He added that the frequent power outages experienced this winter were unrelated to over
capacity, but instead were due to damages to the electrical grid.
―But we might start experiencing real shortages from next year,‖ he said.
Currently Mongolia has three power plants operating at the capital, with plants also in Darkhan,
Erdenet, and the Aimags of Dornod and Umnugobi, in addition to two hydroelectric power stations
and various sub power stations.
Boldkhuu advised that the country should stop talking about delivering power to foreign nations
until it has its own domestic grid secured.
Source: UB Post
HOW MONGOLIA CAN IMPROVE INFRASTRUCTURE SPENDING
A new World Bank report investigated why Mongolia's citizens have not yet to enjoy the benefits
from its prospering mining industry.
Much of the spending has been misdirected to low-priority areas and activities, and has been
wasted due to poor project planning and implementation. Correcting these weaknesses is urgently
required to ensure that the government's ambitious spending plans—from the rapidly increasing
budget and from new international borrowing—result in good quality infrastructure.
Ulaanbaatar accounts for over 40 percent of Mongolia's population and a bulk of its economic
activity. Considerable economic research tells us that with proper infrastructure and favorable
regulations, cities can be engines of economic growth. Yet Ulaanbaatar has been relatively
neglected in government infrastructure spending. On average, it received less than 20 percent of
the national roads budget over the past five years, and was similarly under-prioritized in
expenditures on heating. Over the next four years the government plans to spend twice as much on
rural roads as on Ulaanbaatar's roads, even though rural roads will not have anywhere near the
traffic volumes needed to generate positive economic returns.
Maintenance has also been grossly neglected with the result that new infrastructure quickly
deteriorates and then requires costly reconstruction. The government only spends a fifth of what is
needed on routine road maintenance; it is therefore no surprise that 60 percent of the national
road network is in poor condition requiring reconstruction. Project planning is poorly enacted, too.
Cost estimates are unrealistically low; there is significant political interference in the award of
contracts; construction companies cut corners during implementation, compromising on quality;
and the whole system does not encourage the growth of the construction sector.
Spending plans need to be tempered with the reality of spending capacity, with a greater focus on
Ulaanbaatar and maintenance. Investment in the workforce so it can properly implement projects is
needed, with greater focus also on independent project supervision—including from citizens.
Inviting foreign workers is also how the country can make up for the shortage of skilled workers.
Source: World Bank Blogs
BY THE SECOND-MOBILE CHARGES BEGIN 15 MARCH
Four of the country's cell phone service providers will begin charging phones by the second
beginning 15 March.
The Authority for Fair Competition and Consumer Protection negotiated with Skytel LLC, Mobicom
LLC, Unitel LLC, and G-Mobile LLC to have them switch cell phone service charges on a per-second
basis rather than by the minute. The service will benefits callers who, for example, make a thirty-
second call compared with in the past when that same call was charged for a minute.
Source: News.mn
NGOS BUILD MONGOLIA'S SUPPLY CHAINS
A new law passed by Parliament on 1 March will make strides to improve the meat industry.
The legislation requires companies to provide certificate training for its workers and that they be
able to track the source of their meat products within the next 10 months. However, that is not
enough time, said Cedric Bussac, country director of the AVSF non-government organization,
because of the immense preparatory work needed to implement such an endeavor.
One company ahead of the competition, however, is Meat Market LLC, a subsidiary of Just Agro LLC.
It runs 12 slaughter houses and inspects food based on the standards of the Hazard Analysis and
Critical Control Points (HACCP) and eventually the International Organization for Standardization.
Tracing meat to their points of origin will require cooperation from herders. Many have already
formed cooperatives with the help of Western non-government organizations (NGOs). ASVF has been
active over the last eight years in Arkhangai where it successfully teamed up with the cooperative
Arvijin Delgerekh to establish a supply chain for yak furs. Industry officials are hoping to replicate
this business model for the meat industry.
Source: UB Post
CHINESE-AIDED FOOD AND DRUG LAB OPENS IN UB
A new laboratory that will help improve the food and drug safety in Mongolia was opened last
Friday.
The Mongolian National Technical Supervision Administration Center Laboratory, established with
Chinese support, will test food and drugs using international standards. Speaking at the opening
ceremony, Mongolian Deputy Prime Minister D. Terbishdagva expressed heartfelt gratitude to the
Chinese government.
Chinese Ambassador Wang Xiaolong said the Chinese government had been providing substantial
assistance to help Mongolia build projects in the fields of infrastructure, agriculture, animal
husbandry, and transportation.
The Chinese aid had played a positive role in promoting Mongolia's economic development and
improving people's living standard, the ambassador said. In addition to the laboratory, China also
offered a full set of testing equipment and training of Mongolian personnel.
Source: Xinhua
MONGOLIA TO TRADE DEBT FORGIVENESS FOR TECHNICAL ASSISTANCE
Mongolia has opted to pay its forgiven debt to Bulgaria in return for technical assistance.
During a visit to Bulgaria in 2008, former president N. Enkhbayar cut Mongolia's foreign debt to its
former Soviet ally by 80 percent, and has since repaid the remaining 20 percent. However a
contract has been signed to repay that debt in exchange for assistance such as scholarships to
Mongolian students.
The program would have some 25 to 30 students studying agriculture and food technology in
Bulgaria, in addition to the delivery of agriculture equipment and assistance.
Source: Info Mongolia
TWO MONGOLIAN GRADUATE STUDENTS WIN COMPUTER SCIENCE COMPETITION
Two graduates from the National University of Mongolia were awarded a trip to Silicon Valley to
meet professionals from 14 top tech companies, including Twitter and Facebook.
E. Khongor and B. Khasan, who are attending the Maharishi University of Management in the United
States for Masters in computer science, placed fifth and fourth, respectively, in the Back to School
Hackathon for current U.S. undergraduate and graduate students. Competitors were given 24 hours
to complete six moderate algorithmic, artificial intelligence and general programming online
challenges. More than 400 programmers, including students from Harvard, Princeton, Carnegie-
Melon, and MIT entered the competition.
Khongor and Khasan have enjoyed success in computer programming competitions for a number of
years. In 2010 they were on a three-person team that won the championship cup for all of Mongolia.
In 2009, they won bronze medals in the ACM International Collegiate Programming Competition,
sponsored by IBM, in the Asian region in Shanghai, China. In 2010 and 2011, Khongor also won
bronze and silver medals with different teammates at the same venue.
―We don't compete because we need to... We compete because we love to!‖ said Khongor.
Both students share the goal of working as Java Developers in top West Coast software companies.
That may soon happen, as they are soon to complete their on-campus courses and seek their
curricular practical training (CPT) internship employment in U.S. companies in May.
Source: Maharishi University of Management
LET ECONOMICS DICTATE POLITICS, NOT VICE-VERSA, SAYS MIBG CHAIRMAN
The Strategic Entities Foreign Investment Law (SEFIL) has had a wide impact in the economy, said
Mongolian Investment Banking Group (MIBG) Chairman D. Jargalsaikhan, sending shock waves to the
mining sector and beyond.
―Yes, not just the mining sector is suffering from [SEFIL],‖ said Jargalsaikhan. ―It has already
started, like Adam Smith's invisible hand when the banking sector loses strength, the government
will participate in order to boost the banking sector. This is like copying practices that might exist
under a communist government.‖
Jargalsaikhan pointed to state-owned companies Erdenes Tavan Tolgoi LLC and MIAT Mongolian
Airlines as examples of companies that have suffered due to mismanagement by government.
He noted that politicians today could claim very little responsibility for the growth Mongolia has
experienced, pointing to past policy makers such as D. Molomjamts, B. Peljee, and Sh. Gungaadorj
as being much more instrumental in the country's success. He said politicians were benefiting from
happenstance and were only successful in scaring off investors drawn in from the past.
―The last government said that during their leadership economic growth reached 17 percent. But in
truth, they were lucky to be elected during this peak time of economic expansion.‖
He advised that the government honor agreements such as licenses and only pass clear and detailed
legislation that leaves nothing to uncertainty or guesswork.
―In 1990, we chose democracy and a civil society. A lot of us didn't understand the concept and the
importance of this choice. We need to review again why we made this choice and the resultant
Constitution, as it seems that some of us are unintentionally and subconsciously leaning back
towards socialism.
Source: Udriin Sonin, Mongolian Investment Banking Group
MONGOLIA EAGER TO TAP TIES WITH HONG KONG FOR GROWTH
Mongolia will strengthen its cooperation with Hong Kong in the run-up to the listing of more
Mongolian firms in the SAR, consul general Ya. Ariunbold said.
Economic growth in China and India in recent years has been translated into booming demand for
natural resources. Five firms either from Mongolia or with assets in the country have listed their
shares on the local main board. They are all associated with coal mining and related business. To
get closer to China and Hong Kong, Mongolia set up a council in Hong Kong in June 2011. Last
November it held the first Mongolia-Hong Kong economic forum to discuss investment in the
country.
―Hong Kong and Mongolia are both adjacent to mainland China. We have abundant resources, while
Hong Kong has well-founded capital markets; the two places have opportunities to work together,‖
Ariunbold said, adding that cooperation is likely to be realized in securities and trade.‖
China, the second-largest economy in the world, is Mongolia largest investor. More than 75 percent
of its exports are currently transported to the mainland. China and Mongolia inked a strategic
partnership pact in 2011.
Source: The Standard
MONGOLIA CLUB OPENS IN HONG KONG
A Mongolia Club has been organized in Hong Kong to better foster understanding of Mongolia and
promote all things Mongolian.
The club will host special events around visits of Mongolian officials and dignitaries and general
persons of interest to Mongolia. There will be an annual meeting in November each year where
members will be invited and accounts open to examination.
The group is led by Chairman Henry Lee, who has over 26 years experience as a portfolio manager,
corporate financier and fund allocator in global and Asian markets. Most recently, he was the chief
information officer of Nan Fung, a large Hong Kong-based private real estate and investment
conglomerate.
Source: Invest Mongolia
MONGOLIA METALS INDUSTRY REPORT
Mongolian International Capital Corporation released its Metals Industry Report, providing a survey
of factors that drive the Mongolian metals industry stocks.
The metals industry in Mongolia has been long dominated by the Erdenet copper and molybdenum
mine, but attention is not on Oyu Tolgoi. Not long ago the income generated from the Erdenet mine
made up 40 percent of Mongolia's gross domestic product (GDP), but recently coal exports have
taken over its share, thus making the country simultaneously more dependent on mineral exports
and diversifying the type of minerals it depends on.
The giant Oyu Tolgoi copper mine has begun production, and the copper market will again become
the key driver behind Mongolia's already commodity-tied economy.
Despite the lack of credible sources, interviews with domestic mining and resource experts tell that
Mongolia has a proven iron ore reserve of about 660 million tons, whereas the probable reserve is
over one billion. Many other types of metals are extracted in small mines across the country, with
17 known deposits and over 100 different known mineralized areas in the country.
Source: Mongolian International Capital Corporation
CHINA STEPS UP SPENDING TO RE-BALANCE ECONOMY
China, the destination for nearly all of Mongolia's mining products, is planning to loosen its purse
strings to meet a variety of policy goals.
The government's budget deficit is expected to reach CNY 1.2 trillion (USD 192.8 billion) in 2013, or
about 2 percent of gross domestic product (GDP), according to a budget released Tuesday on the
opening of the National People's Congress, China's once-a-year legislature. Much of that spending
will come from efforts to re-balance China's economy to give consumers greater heft and rely less
on exports and infrastructure spending.
China is ratcheting up spending on a number of fronts, including national defense and internal
security. On Tuesday China said it would increase military spending 10.7 percent this year. But
much of the overall spending is for social programs that could help with the re-balancing effort and
benefit consumers. For example the largest percentage increase is in health care spending, which
will rise 27 percent in 2013 compared with 16 percent last year from 2011. Spending on education is
set to rise 9.3 percent to CNY 413.25 billion, with significant increases for rural education and
student nutrition. Chinese leaders also plan to increase spending 18.8 percent on the environment
in a year already beset by massive air-pollution problems in Beijing and other parts of the country.
To be sure, China's central budget is only a fraction of the total for China's spending on social
services like health and education. Local governments are often either short of cash or prefer
spending on prestige infrastructure projects rather than boosting social spending. Analysts say more
far-reaching reforms to address the imbalance between high local-government spending obligations
and low revenue are needed.
Official data show its debt and deficit as a share of GDP are well below that of the United States.
But some economists say China has less leeway than it appears based on national data due to weak
local-government finances, potential bad loans in the banking system and the rising costs of an
aging population.
Source: Wall Street Journal
POLITICS
GOVERNMENT MANDATES 34 PERCENT CONTROL OF SAINSHAND
The government has ordered that plans for the development of the Sainshand industrial complex be
revised to ensure 34 percent state ownership.
The order came to the Ministry of Industry and Agriculture so that the plans would comply with
Mongolian law. The order mandates that government have ownership of 34 percent of developer
Sainshand Industrial Park LLC, while private investors may hold the remaining 66 percent.
The government assigned the Development Bank to provide MNT 14.1 billion for development of the
complex and environmental assessment.
Source: Undesnii Shuudan
GOVERNMENT BUDGETS USD 2.3 MILLION FOR NUCLEAR PROJECTS
The government has approved of EUR 1.8 million (USD 2.3 million) to finance 8 projects in
cooperation with the International Atomic Energy Agency (IAEA), said the head of the Nuclear
Energy Authority (NEA) at a seminar for nuclear energy prospects on 1 March.
The agency head, B. Bayarbadrakh, said the nuclear program could have an enormous impact on
agriculture in Mongolia, with 49 percent of all projects until 2014 dedicated to food and
agriculture. It could also help eradicate animal disease among the country's livestock while
decontaminating seeds and extending the lifespan of crops.
However, Bayarbadrakh admitted that these sorts of prospects were unpopular in Mongolia, as a
large portion of the country was against nuclear energy in any form.
―Of course there may be bad effects,‖ he said, adding, ―But we will consider every aspect of the
risks before using it.‖
He noted that nuclear energy was widely used around the world to the benefit of millions in the
form of medicine, education, mining, agriculture, and food. He said nuclear energy could be safe
when the proper precautions had been taken, and Mongolia should not hold itself back from delving
further into opportunities related to nuclear energy.
Source: News.mn
MINING MINISTER LEARNS OF SHORTFALLS IN PETROLEUM LAW
Mining Minister D. Gankhuyag has acknowledged the need for updated petroleum legislation
following a visit to facilities of the Petroleum Agency.
Gankhuyag had visited the Geological Laboratory where he met with agency head G. Ulziiburen to
be briefed on the current situation. Ulziiburen informed the minister that the original 1991 law was
outdated and a more positive environment to encourage competition was needed. The agency head
said the laboratory was also lacking in capacity for sample keeping, data processing and holding
data records. The lab, he said, would need all new equipment to meet the needed capacity.
Gankhuyag acknowledged that the current legislation creates excessive bureaucracy and was time
consuming. He also said that plans to transfer oil by rail was too costly, as investors have noted this
would be one of the most expensive methods to do so.
Source: Zuunii Medee
PREMIER QUESTIONED ON TT-WEST BLOCK CONTRACT WITH KHISHIT ARVIN
MP Ya. Sodbaatar said a request for clarification on the development of the Tavan Tolgoi West
Tsankhi coking coal project had been submitted to the prime minister.
Prime Minister N. Altankhuyag, the head of the working group for Tavan Tolgoi, has formally
received a request for an explanation for the decision to contract Khishig Arvin to begin
development of the West Tsankhi block after an offer was made to Peabody Coal Corp. to develop
the site in October. He said they expected an answer soon.
Source: Undesnii Shuudan
ELBEGDORJ MAKES JUDGE APPOINTMENTS
President Ts. Elbegdorj appointed new judges to various courts throughout the country on 4 March.
Appointments include B. Manlaibaatar as a judge to the inter-soum court of Darkhan Uul Aimag,
Boldbaatar Zagdaa as judge to the inter-soum court of Bayankhongor Aimag, and E. Oyu-Erdene, Ch.
Batchimeg and G. Solongo as judges to Umnugobi Aimag. In Ulaanbaatar, M. Bayasgalan received
appointment as judge to the Bayangol District Court and S. Batgerel as judge to the Khan Uul
District Court. The president appointed D. Nyam as judge for the general inter-soum first court of
Zavakhan Aimag and D. Oyunbat as judge general of the Baganuur District Court.
Source: News.mn
MPP TO ESTABLISH UNITED MONGOLIA FACTION
Members of the Mongolian People's Party's recently formed Party Reform Commission met with
members of a dissident faction of the party to formally establish a group.
The faction calling itself United Mongolia will need at least 80 members to sign the accord
establishing the group. Ten members had signed on 5 March while the Reform Commission is
prepared to continue collecting signatures.
Source: Udriin Sonin
ENKHBAYAR'S SON EXITS MPRP
N. Batshugar, the vice president of the Central Bank and son of the now-incarcerated former-
President N. Enkhbayar, has formally pulled out of the Mongolian People's Revolutionary Party.
Batshugar was the secretary of foreign affairs to the party. He said he left the party because it
conflicted with his post at the Bank of Mongolia.
Source: News.mn
FORMER DUTCH PREMIER GIVES MONGOLIA A LESSON IN DUTCH DISEASE
Former Dutch Prime Minister Willem Kok gave a poignant address to the audience of the Mongolian
Economic Forum on Tuesday, 5 March, describing his experience with the economic epidemic that
was crippling the Netherlands' economy. Mongolia, too, is susceptible—as are all resource-based
economies—to this infliction that has ever since been known as ―Dutch disease.‖
―Your economy is highly dependent on resource revenue. My advice to you is not to repeat our
mistakes,‖ said Kok.
Kok recounted the lead up to the crisis, with rapid growth urged on by the resource-based
economy. The inflow of foreign direct investment based on the discoveries of gas led to a spikes to
the currency exchange rate, inflation and salaries. Government spending skyrocketed, with
expenditures growing some 62 percentage points to 66 percent in 1982 from 1970. All this
combined with increasing global dependence on exports eventually led to dramatic unemployment
and a wide deficit.
When Kok entered the office of prime minister in the 1980s, government was implementing its
Polmer model to try and remedy the situation. The intended cure was a fiscal policy of
conservatism paired with high levels of societal protections and market reforms for greater
flexibility of the securities market. But the changes were painful and resulted in widespread anger
among the populace and frequent worker strikes.
The former Dutch premier stressed the importance of developing a workforce for a knowledge-
based economy, encouraging private-public partnerships, and creating a positive economic climate
based on predictable outcomes and circumstances. That final point would rest on the respect given
to contracts, extinguishing corruption and, particularly important to Mongolia, the development of
infrastructure.
―GDP growth is not an end to itself,‖ said Kok, ―The macro economy growth is no more, no less than
something that is welcome to achieve the things you strive for.‖
Source: Business Council of Mongolia
ANNOUNCEMENTS
INTERNATIONAL TRADE FAIRS BAUMA AND USETEC, APRIL 18-25, MUNICH & COLOGNE, GERMANY
The Business Council of Mongolia is registering Mongolian business delegates to participate in a
business tour in Germany between 18 and 25 April, 2013. The business tour program will include:
•Attending the 30th international trade fair for Construction Machinery, Building Material Machines,
Mining Machines, Construction Vehicles and Construction Equipment in Munich
(http://www.bauma.de/en/)
•Attending the 20th World Trade fair for Used Technology, Used Machinery and Equipment from
over 20 sectors in Cologne (http://www.usetec.com/)
Please contact Undral at 317027 or at [email protected] for registration and for additional
information about the business tour.
___________________________________________
ECONOMIC IMPACT ASSESSMENT - DRAFT MINERALS LAW, MARCH 18, UB
Dr. Brian Fisher, Managing Director, BAEconomics Pty. Ltd. and Dr. Ch. Khashchuluun, Chief
Executive Officer, UBRM Consulting, will present on the ―Economic Impact Assessment – Draft
Minerals Law‖ from 9:30 a.m. to 12 p.m. at the Kempinski Hotel, Altai Ballroom.
Dr. Fisher is one of Australia's most respected advisors on climate change, emissions trading, and
the economic impact of current future climate and energy policy. He previously held the position of
Executive Director of the Australian Bureau and Resource Economics (ABARE).
Dr. Khashchuluun is well-known to BCM members after several monthly meeting presentations such
as at BCM‘s 25 February monthly meeting. He is a highly respected researcher and analyzer of
economic and commercial topics in Mongolia. Khashchuluun was Chairman of the National
Development and Innovation Committee until June 2012 and formerly on the faculty at the National
University of Mongolia.
The meeting, organized by BCM, is free. Please RSVP with an email to [email protected]
for information and to register. Given the strong interest, seating will be expanded and given
to the first 140 respondents.
___________________________________________
FOREIGN INVESTMENT IN MONGOLIA CONFERENCE, APRIL 19, UB
BCM and UB Risk Management Consulting (Dr. Khashchuluun, former Chair of NDIC‘s firm) are
organizing a "Foreign Investment in Mongolia: Challenges, Risks and Solutions" conference on
April 19, 2013 at the Kempinski Hotel.
As we know, Mongolian economy has been rapidly growing with 17.5% in 2012 and 12.3% growth in
2013. During 2010-¬‐2012, foreign investment in Mongolia increased at a rapid speed,contributing
significantly to economic growth, creating more jobs and financing various projects in the country.
However, the OT copper gold project, long a cornerstone of Mongolia‘s increased FDI, is almost
completed. The timing of other potentially large FDI projects such as PPP power stations and the TT
project are not clear. The result could be that inflows into Mongolia may not grow as much as in
previous years.
Speakers include:
- S. Bold, Chief Economist, Central Bank
- S. Javkhlanbaatar, Foreign Investment Regulations and Registration Department Head, Ministry of
Economic Development of Mongolia
- B. Amarsanaa, Academic Secretary of National Legal Institute
- D. Gan-Ochir, Head of Financila Stability Council, Advisor to President of Central Bank
- D. Achit-Erdene, CEO, MICC
Attached is the Agenda of the event. For more information, please contact Saruul at
[email protected], 317027. For registration please contact [email protected].
___________________________________________
3RD RISK MANAGEMENT FORUM, 1 MAY, ULAANBAATAR
The 3rd Risk Management Forum of Mongolia will be held on 1 May 2013 in Ulaanbaatar at the Blue
Sky Tower.
This is the largest risk event in Mongolia, co-organized by the Business Council of Mongolia and
Mandal General Insurance. The Risk Forum will provide the most comprehensive overview of risks
that Mongolia faces today and the status of risk management all under one roof. Risk management
techniques and tools will be shared and best practices promoted across industries.
Last year, the event had attracted over 250 representatives of Mongolia's top corporations and
government agencies and resulted in the formation of Risk Institute of Mongolia. This year, the
expert speakers will be address topics concerning Macro Risks, Business Risks, and Community Risks.
For more information, visit RiskForum.mn.
___________________________________________
MINER & SUPPLIER CONFERENCE, 14-15 MARCH, ULAANBAATAR
The Third Annual Miner & Supplier Conference will be held at Chinggis Khan Hotel from 14 to 15
March. BCM members will receive a 10 percent discount for registration.
This year the forum will be organized under the slogan ―Maximizing Mining Capabilities with
Effective Procurement Strategies.‖ It several goals include improving contributions to society and
the national economy, promoting environmentally friendly products and technology and increasing
business coherence between suppliers and mining businessmen.
Contact Saruul at [email protected] or at 317027 for a special discount code. For more
information visit minerandsupplier.com.
___________________________________________
MINES AND MONEY HONG KONG, 19-22 MARCH
The Business Council of Mongolia is a supporting association of this event and as such all members
get a 15% discount. If you would like to register, please contact Charlie Hastings on
[email protected] and he will help you with your booking.
Please click here to see the discount brochure, you can fill out the registration form on here and
send it back.
___________________________________________
MONGOLIA INVESTMENT SUMMIT 2013, APRIL 16-18, LONDON
Business Council of Mongolia members are invited to attend the Mongolia Investment Summit
London 2013 and receive a 15 percent discount on their registration fee.
With significant amounts of investment in Mongolia traditionally coming from Asia there are new
opportunities to be explored in the Western Hemisphere. Investor interest is high from the west and
fund managers, private investors and financiers want to gain exposure to Mongolian growth.
Mongolia Investment Summit London in April will provide an important opportunity to meet these
investors, raise the profile of Mongolia and promote your business.
The event provides an excellent opportunity to meet with major investors, mining groups,
government officials and real estate specialists to identify new business partners. At the event, the
views on the country will be discussed by investors from companies such as Barclays Natural
Resource Investments, HSBC Global Asset Management, Collabrium Capital and more. The event
provides an opportunity not to be missed.
Enter the discount code “Business-Council-Mongolia-Special” when you register to receive the
early bird discount plus an additional 15 percent off.
___________________________________________
MONGOLIA ENERGY AND INFRASTRUCTURE SUMMIT, 15-16 MAY, ULAANBAATAR
Business Council of Mongolia members are invited to attend the Mongolia Energy and Infrastructure
Summit and receive a 15 percent discount on registration fees.
On the 15th and 16th May 2013, the Mongolia Energy and Infrastructure Summit will bring together
independent power providers, asset management firms, local and international banks, law firms,
and government officials to discuss the business opportunities and challenges facing the Mongolian
energy and infrastructure sector.
Key coverage includes:
- Renewable energy and the future of clean energy in Mongolia
- Infrastructure needs for the mining industry
- Insurance and political risk considerations for investors and developers
- Power and infrastructure projects for Ulaanbaatar‘s urbanization
- Financing challenges and the role of ECAs and multilaterals
For more information, please visit the event website: www.euromoneyseminars.com/MEI13
Enter the discount code ―MEI_BCM‖ when you register online to receive 15 percent off.
___________________________________________
COAL PROCESSING & MINING TECHNOLOGY EXPO, JUNE 4-5, 2013
The Coal Processing & Mining Technology Expo will be held in Ulaanbaatar from 4 to 5 June 2013.
The expo is co-located with the Transportation & Logistics Expo, and because of this co-location you
will be able to meet with a more diverse and broader group of attendees. With many international
as well as local Mongolian companies already signed up to exhibit, you will be a part of what is
becoming the premier event for the mining and transportation industries serving Mongolia.
BCM members will receive a special 10 percent discount. To register and receive your discount
email Saruul at [email protected]. For more information about the exhibition contact Glenn
Scott at [email protected] or visit the website coalexpomongolia.com.
___________________________________________
“MM TODAY” on MNB-TV, Friday‟s at 19:00
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 15 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 5 March 2013, suppliers registered on the database totaled 1,395 and buyers totaled 14.
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.
So far in 2013, 65 companies were contacted directly and their e-mail addresses were obtained and
requests made for them update their company profiles. 22 supplier companies updated their
company profiles. 41 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 Undral at [email protected]
or 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.
___________________________________________
ENGLISH WEBSITE: 'PRESENTATIONS', 'MONGOLIA REPORTS', „MONGOLIAN BUSINESS NEWS‟,
„PHOTO GALLERY‟
On BCM‘s English website, the ―Resources‖ and ―Presentations‖ sections are available.
Note the presentation by Bold Baatar, CEO of Altan Dornod Mongol, ―Mongolian Mining Investment
Environment‖ at the Mining Industry Open Discussion on February 1, 2013, at Kempinski Khan Palace
Hotel.
Please note the presentations from each of the BCM monthly meetings. Please also note 25
presentations from the Mongolian Investment Summit 2012 on 30-31 October in Hong Kong; and 9
presentations from Discover Mongolia 2012.
The ―Mongolia Reports‖ section includes 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; ―Mongolia-a supplement to Mining
Journal‖ from Mining Journal October, 2012; ―Macro Overview‖ September, 2012 by EPCRC; ―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 973 fans on our Facebook fans page, 1,125 connections on LinkedIn network, and 613
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.
BCM WORKING GROUP NEWS
Business Council of Mongolia (BCM) has been pushing forward with its ‗BCM in the University`s
Classroom‘ series since March 2012. Led by BCM‘s Education Working Group the program provides
lectures at universities to help inspire students and give them direction for their future careers.
The series has grown to include an average of 10 lectures per academic year.
The 7th speaker, U. Ganzorig CEO of Mandal Insurance Co., LTD gave a presentation titled
―Insurance market and trend of development‖ to an audience of more than 110 students and
teachers at Financial Management Department, Institute of Finance and Economics, on 5thof March
2013. Lecture materials are available in BCM website, Education Working Group page.
Next ‗BCM in the University‘s Classroom‘ series will be held in April at the Institute of Finance and
Economics. Nick Cousyn, Chief Operating Officer of BDSec, will be invited to speak. Presentation
title: ―Company`s financial management‖
If you would like to share your experience on some specific business topic, you can discuss with us.
Please contact:[email protected].
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]
January 31, 2012 *13.0% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 12.7% y-o-y, Ulaanbaatar city, January 31, 2012
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]
CURRENCY RATES – MARCH 6, 2013
Currency Name Currency Rate
US dollar USD 1,402.37
Euro EUR 1,829.81
Japanese yen JPY 15.06
British pound GBP 2,118.91
Hong Kong dollar HKD 180.89
Chinese Yuan CNY 225.58
Russian Ruble RUB 45.76
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.
