BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 437 – July 29, 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:

• Thiess secures contract for Rio Tinto's $5.4 bn Oyu Tolgoi project

• Erdenet production exceeds H1 target

• Korea to build large-scale solar power plant

• MMC settles $180 mn loan

• Wolf Petroleum raises $745,500 from share issuance

• Shangri-La Mall opens

• Sky Hypermarket signs on meat producers for fresh meat at E-mart

• SPAR International announces expansion into Mongolia

• BITComputer to provide telemedicine system to Mongolia

• Mongolia-Japan JV to buy up herders’ animal waste for cosmetics

production

Economy:

• Mongol Bank: FX Auctions, 1-Week Bills

• Budget deficit widens with dip in commodity prices

• Mongolia strengthens ties with South Korea, a credit positive

• China and Mongolia to build “wide-gauge” railway at Shivee Khuren

• Smoke from Siberia’s wildfire covers Mongolia

• U.S. helping Mongolians to meet winter emergency challenge

• Palaeontologists repatriate dinosaur bones with laser beam technology

• Korea to fund mobile healthcare units

• JICA launches project for Mongolia’s disabled

• Nomads of Mongolia launch campaign to raise money for alternative-energy

tech

• Mongolian judges learn about American judicial system

• Two buildings flagged for demolition in UB

• Railway accident occurs at Darkhan

• Korean wave gets boost in Mongolia

• University graduates suffer from lack of employment opportunities

• Bankhar are back on the beat as Mongolian herders

• Addressing the world - How to find anywhere on the planet

• Hot money fleeing negative yields shelters in Mongolia

Politics:

• Who is Mongolia’s new prime minister?

• Mongolian President clashes with new prime minister over cabinet posts

• MP Nomtoibayar appointed to 2 Cabinet seats

• Cabinet meetings moved to Wednesday

• Premier’s spokesperson appointed

• State secretary for Parliament appointed

• Enkhbayar ignores anti-corruption authority’s requests for interviews, say

authorities

• MPP to tackle UB’s urban development challenges

• Ulaanbaatar to host North-East Asian Mayors Forum

• Xylograph added as UNESCO Memory of the World

BCM Updates:

• Announcements

• Advocacy Notes

• Working Groups News

• Member-to-Member Special Offers & Benefits

• Websites Update - Presentations, Mongolia Reports, Interviews

Economic Indicators:

• Inflation

• Central Bank Policy Rate

• Currency Rates

*Click on titles above to link to articles.

SPONSORS

Khan Bank Wagner Asia Automotive

Mongolian Business Database International SOS

BUSINESS

THIESS SECURES CONTRACT FOR RIO TINTO'S $5.4 BN OYU TOLGOI PROJECT

The Cimic Group’s mining services arm Thiess has secured a USD130m contract for

Rio Tinto Group’s USD5.4bn Oyu Tolgoi copper-gold mine. The contract will be

carried out in joint venture with local contractor Khishig Arvin, and is for an

underground decline for the copper and gold project. Thiess’ work is set to start

this month and scheduled for completion in 2020. “This project is key to unlocking

Oyu Tolgoi’s potential and is a great addition to Thiess’ diverse mining portfolio,”

said Cimic Executive Chairman and Chief Executive Officer Marcelino Fernández

Verdes.

As part of the contract, the company’s responsibilities will include construction of

a box cut and development of twin declines, incorporating a service and conveyor

tunnel. Once underground production is fully ramped-up in 2027, Oyu Tolgoi is

expected to produce more than 500,000 tons of copper per annum.

Source: Mining-Technology.com

ERDENET PRODUCTION EXCEEDS H1 TARGET

Erdenet Mining Corp. produced above its target for the first half of 2016 as it

grabbed for greater earnings while selling at below the global market average.

Erdenet earned MNT32 billion after taxes as it ramped up production to make up

for a price fall for the red metal. Erdenet sold its copper at 4,023 a ton compared

with the global market average of between USD4,300 and USD4,500.

Additionally, Erdenet Mining Corp.’s board of directors have appointed B.

Shinebaatar as the copper miner’s first deputy director. Shinebaatar is a former

state secretary for the former Ministry of Economic Development and has sat on

the Erdenet board.

Source: UB Post, Udriin Sonin

KOREA TO BUILD LARGE-SCALE SOLAR POWER PLANT

Mongolian solar energy company Moshea Eco Energy and Idea Bridge, a Korean

asset management firm, finalized a contract earlier this week to build a 50

megawatt solar power plant on 100 hectare of land near the new international

airport being built at the Khushig valley, some 31 kilometer from Ulaanbaatar. The

new plant will generate approximately 5 percent of Mongolia’s total electricity

production, and will be providing power for the new airport. The first phase (15

megawatts) of the construction is expected to begin in September and finish by

May 2017, whereas the second (15 megawatts) and third (20 megawatts) phases

will be completed by the end of 2018 and early 2021, respectively.

The USD100 million cost of the endeavor will be funded by Idea Bridge, while Han

Jae-won, chief manager at Yeongwol Energy Station, will serve as the overall

project manager (PM) of the entire construction process.

Source: The Korea Bizwire

MMC SETTLES $180 MN LOAN

Mongolian Mining Corp. (MMC) has settled its USD180 million debt with

international financial institutions, including the European Bank for Reconstruction

and Development, the Hong Kong-listed miner said in a 25 July statement. MMC’s

mining unit for the Ukhaa Khudag coal mine has a discharge and release of its debt

to EBRD, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.

and Deutsche Investitionsund Entwicklungsgesellschaft mbH, opened in August

2010. The statement did not explain the specifics of the settlement or whether a

sum was paid.

Source: Mongolian Mining Corp.

WOLF PETROLEUM RAISES $745,500 FROM SHARE ISSUANCE

Wolf Petroleum Ltd. has launched the first two phases of its share issuance, raising

USD764,500. Wolf has issued a total of 76,450,000 to the SAM Group and is

currently in preparations for a third phase to sell up to 242,907,013 at USD0.01 a

share. The third phase will include options exercisable at USD0.05 on or before 31

July 2018 to the SAM Group.

A general meeting where Wolf will seek approval for this this phase is expected

next September 2016.

Source: Wolf Petroleum Ltd.

SHANGRI-LA MALL OPENS

The Shangri-La Mall shopping center opened its doors on 22 July in central

Ulaanbaatar. The 27,000 hectare space houses an IMAX theater, fitness center with

a spa and swimming pol, and 185 adjacent residential apartments.

Source: Unuudur

SKY HYPERMARKET SIGNS ON MEAT PRODUCERS FOR FRESH MEAT AT E-MART

The Mongolian entity opening the Korean grocery chain E-mart in Ulaanbaatar has

signed on local suppliers to provide fresh meat and dairy for the franchise here. E-

mart opened its first location in Ulaanbaatar on 28 July at the Sky Mall Sky

Hypermarket has contracts with both Mongolian Development Solution LLC and

Khishigten Nuudelchin LLC for the meat and dairy. Also on board is the recently

launched meat processor Bayandelger Khuns LLC, which is Mongolia’s first factory

to process year-round.

Source:Udriin Sonin

SPAR INTERNATIONAL ANNOUNCES EXPANSION INTO MONGOLIA

The Dutch food retail chain SPAR has announced a new partnership with

conglomerate Max Group LLC to open its first stores in Mongolia. The partnership

with the operator of the Max Food Supermarkets chain will see up to 60 SPAR-

branded multi-format stores in Mongolia between 2017 and 2020. The Dutch Prime

Minister, Mark Rutte took part in the signing for the deal while in Ulaanbaatar for

the Asia-Europe Meeting summit in July. The Netherlands-based SPAR International

reported global retail sales in 2015 of EUR33 billion (USD36.6 billion) from over

12,100 stores across four continents. Mongolia brings to 43 the number of countries

where SPAR has operations globally.

“It is greatly encouraging to see a company like SPAR, which started as a

partnership of Dutch retailers and wholesalers more than 80 years ago, helping

bring retail best practice to the Mongolian marketplace,” said Rutte.

Source: Spar International

BITCOMPUTER TO PROVIDE TELEMEDICINE SYSTEM TO MONGOLIA

BIT Computer has received a 2 billion won (USD1.76 million) order to supply

telemedicine system from the Mongolian government, it announced on 19 July. The

government is building a new National Diagnostic and Treatment Center in its

capital Ulaanbaatar and aims to provide remote medical treatment in cooperation

with 12 medical facilities nearby. The company already has won the contract for

information system for the state hospital.

BIT Computer has exported medical information solutions and remote medical

solutions to 11 countries, including Thailand, Cambodia and Philippines.

Source: Korea Herald

MONGOLIA-JAPAN JV TO BUY UP HERDERS’ ANIMAL WASTE FOR COSMETICS

PRODUCTION

A Mongolia-Japan joint venture will use leftovers from herders animal rearing to

produce cosmetics destined for the Japanese market. The 50-50 partnerships will

collect the placenta from animals births for up to MNT30,000 each from Mongolia’s

21 provinces for consumption at a facility scheduled to launch in 2018.

Source: Udriin Sonin

ECONOMY

MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS

The Bank of Mongolia on 28 July sold USD28.2 million and CN37.5 million at

currency auctions for closing rates of MNT2,071 and MNT311.50, respectively. That

day, it accepted commercial banks’ tugrik swap agreement offers for an equivalent

of USD64.5 million. On 27 July, it issued MNT333 billion in one-week bills at a

weighted interest of 10.5 percent.

Source: Bank of Mongolia

BUDGET DEFICIT WIDENS WITH DIP IN COMMODITY PRICES

Mongolia’s budget deficit doubled in the first half of the year as low commodity

prices continued to drag down the economy. The budget deficit widened to

MNT1.12 trillion (MNT572 million) in the first six months of 2016 from a deficit of

MNT535 billion (USD281 million) in the same period a year earlier. Export revenue

declined 7.5 percent to USD2.2 billion during the period as prices plunged for

Mongolia’s main commodities, while expenditure and net lending increased 15.4

percent as government spending on roads and infrastructure rose.

Mongolia exported of copper increase 23.1 percent, but weaker prices caused the

value of copper exports to slip to USD916.7 million from USD1.15 billion. Coal

exports similarly rose 40 percent to 9.6 million tons while revenue fell 5.3 percent

because of price falls. Gold was a bright spot as these exports rose from four tons

to 7.1 tons, while export value rose 76 percent compared with the year-earlier

period.

Source: Bloomberg, Cover Mongolia

MONGOLIA STRENGTHENS TIES WITH SOUTH KOREA, A CREDIT POSITIVE

President Tsakhia Elbegdorj and Korea (Aa2 stable) President Park Geun-Hye

agreed to seek a bilateral economic partnership agreement (EPA). An EPA with

South Korea would be credit positive for Mongolia because it would boost bilateral

trade and investment between the two countries, offering opportunities for

Mongolia’s natural resource sector to move further up in terms of value added, and

lowering costs of imports from Korea. It would also diversify Mongolia’s external

economic relations, which are currently weighted largely toward China (Aa3

negative) and Russia (Ba1 negative).

Park’s state visit followed the three-day Asia-Europe Meeting Summit held in

Ulaanbaatar. During the visit, Park emphasized the need to build on the two

countries’ “complementary economic structures” through a trade agreement.

Although Korea’s advanced expertise in manufacturing technology would help it

tap into Mongolia’s abundant natural resources, a trade agreement would be

particularly beneficial for Mongolia.

Source: Moody’s Investors Service

CHINA AND MONGOLIA TO BUILD “WIDE-GAUGE” RAILWAY AT SHIVEE KHUREN

An international railway using a standard-gauge will be built joining connections

between Mongolia and China at the central southern border. China and Mongolia

have agreed to the railway project to join Mongolia’s Shivee Khuren and China’s

Ceke land ports in the hopes of boosting the movement of goods to 30 million tons

of freight for greater trade between between them as well as between China and

Russia.

Shivee Khuren is located at Umnugobi, Mongolia and is 40 kilometers from coal

miner SouthGobi Resources Ltd.

Source: Udriin Sonin

SMOKE FROM SIBERIA’S WILDFIRE COVERS MONGOLIA

Northern parts of Mongolia and the capital city, Ulaanbaatar, were blanketed in

smoke blown south from Siberian wildfires last week, putting health authorities on

alert. Smoke blew through Darkhan, Erdenet and Ulaanbaatar last week, with the

air quality index for Ulaanbaatar registering “very high” pollution at Bayanzurkh

and Bayangol districts, with the index ranging between 502 and 1007 of 2.5

microns of particulate matter (2.5PM) near the Wrestling Palace and Mongol Gazar.

The more centrally located districts, Sukhbaatar and Chingeltei recorded

“medium” pollution while the less crowded areas in Songinokhairkhan and Khan-

Uul recorded “low” air pollution content.

Health authorities warned advised to check the air quality of their neighborhoods

with the website agaar.mn and to keep their doors and windows closed. They also

recommended wearing proper face masks designed to filter out pollution rather

than dust and disposable masks, which have little effect on keeping out toxins

while breathing.

Source: Mongolia.GoGo.mn

U.S. HELPING MONGOLIANS TO MEET WINTER EMERGENCY CHALLENGE

The U.S. government is providing nearly USD800,000 in aid to help Mongolians

mitigate the effects of the 2015-2016 “dzud” winter emergency and develop

systems to increase disaster preparedness. This new funding is in addition to

USD150,000 in humanitarian assistance provided to support logistics operations and

the distribution of critical relief supplies to those affected by the winter

emergency and expands ongoing disaster preparedness training with province and

county-level officials.

Through the U.S. Agency for International Development’s Office of Foreign Disaster

Assistance (USAID/OFDA), the U.S. Government partners with Mercy Corps to work

with communities to recover from the impact of the winter emergency and support

the long-term sustainability of herding systems across 15 winter emergency-

affected provinces. The program will improve province and county-level ability to

manage risks and lessen the impact of future winter emergencies through disaster

risk reduction (DRR) training and the scale-up of a national SMS, or short message-

based information-sharing system.

Source: Montsame

PALAEONTOLOGISTS REPATRIATE DINOSAUR BONES WITH LASER BEAM

TECHNOLOGY

“We're trying to save dinosaurs,” said Phil Bell. He might sound like he's a few

million years late, but the paleontologist from the University of New England in

Armidale says his mission is no joke. "In the last 20 or so years there's been an

enormous explosion of black market dinosaur bones," Bell said.

Bell is about to leave for Mongolia as part of a very special project to repatriate

dinosaurs bones, which have been taken illegally from sites in the Gobi desert and

found in private collections or auction houses. He and his team plan to develop a

chemical map of the Gobi desert and match it with the chemical makeup of the

repatriated fossils to pinpoint where the bones have been removed from using

laser technology. Bell said the repatriation of fossils had led to some significant

discoveries, and enabled scientists to solve some mysteries and discover new

species.

Source: ABC

KOREA TO FUND MOBILE HEALTHCARE UNITS

A launch ceremony for a project introducing mobile technology for primary health

care was held on 26 July. South Korea’s International Health Fund provided

USD330,000 in financing to provide free health examinations to the 5,000

households living in Ulaanbaatar’s Songinokhairkhan District and Umnugobi Aimag,

where Mongolia’s valuable coal and copper deposits are located. The check ups

from doctors include tests for cholesterol and glucose levels in the blood, as well

as diagnoses for Hepatitis B and C, and more.

Project managers plant to expand the initiative to reach residents of Chingeltei

District and Nalaikh Soum, and 12 other provinces throughout the country.

Source: Unuudur

NOMADS OF MONGOLIA LAUNCH CAMPAIGN TO RAISE MONEY FOR ALTERNATIVE-

ENERGY TECH

An NGO called ILCHDIIN GAL has launched an Indiegogo campaign to raise money

for a program to provide electricity throughout rural Mongolia. The plan is to

protect the nature, continue the traditional lifestyle, and to ensure that the land

is properly looked after. “The traditional nomadic way of life of Mongols is

environmentally friendly” the creator explains, “Unfortunately the downside of

this lifestyle is no access to permanent electricity due to constant moving around.

Solar power has been used in the recent times but it does not generate enough

electricity to meet modern day needs.”

The plan is to develop a source of electricity for powering televisions, cell phones,

refrigerators and more with a generator fueled by the gases from manure. The

fertilizer produced from the machine can also be used to feed the livestock, also

helping mitigate issues surrounding the shortage of pasture land.

Source: Indiegogo, ILCHDIIN GAL

JICA LAUNCHES PROJECT FOR MONGOLIA’S DISABLED

Japan International Cooperation Agency (JICA) has launched a new project to

promote the social participation of people living with disabilities in Mongolia. The

project launched on 20 July, in partnership with the Ministry of Population

Development and Social Protection, with a detailed survey to be conducted among

people living with disabilities and a database with their information will be

established as part of the project.

Project initiators plan to determine the exact number of male and female

individuals of the 111,000 registered as living with disabilities living with

disabilities, as well as their ages, their ideal line of work, and other important

indexes as the Ministry of Population Development and Social Protection aims to

increase their employment by 2020. Many new facilities and developments have

been completed in Ulaanbaatar over the past four years to provide better

accommodations for people living with disabilities.

Source: UB Post

MONGOLIAN JUDGES LEARN ABOUT AMERICAN JUDICIAL SYSTEM

A handful of Mongolian judges want to take what they learned from the U.S. court

systems to their country. Three civil judges and a criminal judge from Mongolia

came to visit McAllen, Texas to observe the U.S. judicial system in action. They

said things are done different in the American court system. "All the ideas, all the

interesting observations we would share back at home with our colleagues, as well

we would work to introduce the best practices from here in our Mongolian system

of judiciary," Munkhtsetseg Chuluunbaatar, a Mongolian judge said.

Just like the Valley’s border, the Mongolian border has people who cross over

illegally.

Source: KRGV.com, The Monitor

TWO BUILDINGS FLAGGED FOR DEMOLITION IN UB

Demolition teams will tear down two buildings in Ulaanbaatar that authority say

were built without the proper permissions. Ulaanbaatar has 27 buildings flagged

for not having the correct permits, said the director of Ulaanbaatar’s Agency For

Specialized Inspection, L. Erdenechuluun.

Source: Unuudur

RAILWAY ACCIDENT OCCURS AT DARKHAN

A railway accident that occurred on a route through Darkhan caused MNT7.8

million in damages. A wheel was lost on the first wagon of a locomotive traveling

through the route between Darkhan stations one and two during a rain storm, said

Ulaanbaatar Railway’s (UBTZ’s) the vice director for labor safety and security, Ch.

Erdenchuluun. “The accident is related to heavy rainfall of continued two days,”

he said.

Erdenechuluun said the freight being carried on the train eventually reached its

destination. The accident is the third such incident in Mongolia, with the first two

occurring in 1984 and then 2006.

Source: Undesnii Shuudan

KOREAN WAVE GETS BOOST IN MONGOLIA

The Korean Wave has taken most parts of Asia…. and Mongolia is no exception. 18-

year-old Anukhatan is a self-confessed K-pop lover whose room is plastered with

posters of her favorite pop stars. "I wake up seeing their faces and it gives me

energy for the day."

The love among fans for K-pop and Korean dramas has also spurred a passion for

learning the Korean language, especially at Ulaanbaatar State University, located

in the heart of the capital. Students learn vocabulary and traditional folktales,

pick out new words and reenact some of the scenes. The demand for Korean-

language education has increased steadily in recent years, with about 20 Mongolian

universities now teaching Korean. Going forward, the two countries hope to

further expand their bilateral relationship through people-to-people exchanges and

potentially via economic cooperation by working together to develop renewable

energy resources and other projects.

Source: Arirang

UNIVERSITY GRADUATES SUFFER FROM LACK OF EMPLOYMENT OPPORTUNITIES

Finding employment is becoming more difficult in the still-deteriorating economy,

even for Mongolia’s educated. Unemployment among those able to work from 15

years old stood at 12 percent, according to the General Department for State

Registration and Statistics, with 65 percent of the unemployed having received

above a high-school education. Data shows that 63 percent of the unemployed are

between 20 and 39 years old with respondents explaining that they can no find any

work or work in their fields, or they lack training and education.

The majority of them employed work in either agriculture or manufacturing.

Source: Undesnii Shuudan

BANKHAR ARE BACK ON THE BEAT AS MONGOLIAN HERDERS

There’s a new khan in town. Scientists are working to re-establish a Mongolian

flock-guarding dog called the bankhar, whose powerful demeanor could be said to

be reminiscent of the Great Khan, Genghis, the famed and feared 13th-century

conqueror. Their goal? To not only protect the goats, sheep, horses, camels and

yaks belonging to Mongolia’s nomadic herders, but also to protect endangered

snow leopards and other predators such as wolves and bears from being shot,

trapped or poisoned for killing livestock.

“More often than not, the physical presence of the dog would be enough of a

deterrent to the predator,” says Greg Goodfellow, project scientist for the

Mongolian Bankhar Dog Project. “Predators might just view the cost-benefit ratio

as not significant enough and just move on.”

Source: Sacramento Bee

ADDRESSING THE WORLD - HOW TO FIND ANYWHERE ON THE PLANET

Last year, a brush fire threatened the home of Gankhuyag Chuluun Hutagt in

Ulaanbaatar. Instead of giving the fire brigade his address, though, Gankhuyag had

to guide them to the blaze by describing a series of landmarks along the way

because his house and many others do not have an address. But Gankhuyag, who is

on the board of the country’s post office, Mongol Post, proposes to do something

about it.

Thanks to his urging, Mongol Post is adopting a new system of addresses for the

country—and, indeed, in the world. Instead of street addresses or unwieldy co-

ordinates, this system divides the Earth’s surface into nine-metre-square blocks.

The system is also proving useful in the favelas of Rio de Janeiro, and rich

countries, too, can benefit. Not only are the words easy to memorize, type out and

communicate by phone, people might like the precision of directing others.

Source: Economist

HOT MONEY FLEEING NEGATIVE YIELDS SHELTERS IN MONGOLIA

Terrorism in France, Brexit in Britain, a coup in Turkey—political convulsions

everywhere. So where’s the hot money going? It’s going to the riskier markets such

as Mongolia, where at least investors are getting paid for the risks. These

unknowns in the developed world are only making the world’s biggest investors

more bullish on riskier markets. BlackRock Inc. is positioning for a “great

migration” into emerging nations by money managers fleeing negative rates. Since

Brexit, the yield on Mongolian dollar bonds maturing in December 2022 dropped

240 basis points to a one-year low of 7 percent.

“People are saying, well how actually is the U.K. shooting itself in the head

economically going to impact Mongolia?” said Jan Dehn, head of research at

Ashmore Group Plc, which manages USD51 billion of emerging-market assets. “The

big shift out of developed markets and into emerging markets hasn’t really

happened yet.”

Source: Bloomberg

POLITICS

WHO IS MONGOLIA’S NEW PRIME MINISTER?

Mongolia’s 29th prime minster is one of the country’s youngest at 41 years old. He

got his start as an accountant out of school and then civil servant at 22 years old

before becoming the governor of Selenge Aimag. Later he would serve as minister

of finance under his predecessor, Chimed Saikhanbileg. He has three siblings—an

older sister and two younger brothers—and is father to three children. His

elementary school classmate Tungalag later became his wife.

He has declared the ownership of three properties and shareholding in four

companies to the Independent Agency Against Corruption, as well as three vehicles

with a total value of MNT116 million.

Source: UB Post

MONGOLIAN PRESIDENT CLASHES WITH NEW PRIME MINISTER OVER CABINET

POSTS

Mongolian President Tsakhia Elbegdorj is already at loggerheads with the new

prime minister over cabinet appointments, raising the specter of further instability

as the economy slows and foreign investment declines. The dispute centers on the

prime minister's appointments of several officials that violate a presidential order

to avoid conflicts of interest by not giving ministerial posts to members of

parliament. “The new government: I can't say it's professional,” Elbegdorj wrote

on his official account on social media network Twitter, adding, “Money and power

trump the rules.”

Among the officials figuring in the clash are Tsedev Dashdorj, a former oil company

engineer appointed to oversee the mining industry, which attracts most of

Mongolia's foreign investment, and business tycoon and land developer Battogtokh

Choijilsuren. The posts for energy, health, food and agriculture and industry,

however, remained vacant amid concerns about conflicts of interest.

Source: Reuters

MP NOMTOIBAYAR APPOINTED TO 2 CABINET SEATS

Two of the empty posts in the Cabinet Secretariat have been filled by MP N.

Nomtoibayar. Prime Minister Jargaltulga Erdenebat’s picks for several posts has

risen some ire from President Tsakhia Elbegdorj and some observers for ignoring

the so-called “double deel” presidential order and less than exemplary

qualifications. Despite that, the cabinet appointed the elected the official

Nomtoibayar, who is already the minister of labor and social welfare, as acting

health minister.

Source: Mongolia.GoGo.mn

CABINET MEETINGS MOVED TO WEDNESDAY

Meetings of the Cabinet Secretariat, when laws are approved for debate for

Parliament and government initiatives are put forward, have been moved from

Monday to Wednesday. Each prime minister over the last several years has held the

meeting on different days, with Norov Altankhuyag (2012-2014) holding meetings

on Saturdays and Chimed Saikhanbileg’s (2014-2015) on Wednesdays.

Source: Udriin Sonin

PREMIER’S SPOKESPERSON APPOINTED

Prime Minister Jargaltulga Erdenebat has appointed Otgonbayar Gombojav as his

top spokesperson for the Cabinet Secretariat. Otgonbayar is a former engineer and

a journalist who worked as a columnist for the daily newspaper Udriin Sonin, as

head of service for Zuuny Medee and the first deputy director of Undesnii Shuudan.

He was also director of the public relations firm iToim.

Source: Montsame

STATE SECRETARY FOR PARLIAMENT APPOINTED

The Jargaltulga Erdenebat government has appointed Ts. Tsolmon as state

secretary of the Office of the Parliament. Tsolmon, 43, entered public service in

1993 as a computer operator at the Office of Parliament in 1993. He was a lecturer

at the Law School at National University of Mongolia from 1998 to 2001, and served

as the head of the Legal Policy Department of the Ministry of Justice and Internal

Affairs from 2004 to 2013. He also has five years of experience as an attorney.

Source: UB Post

ENKHBAYAR IGNORES ANTI-CORRUPTION AUTHORITY’S REQUESTS FOR

INTERVIEWS, SAY AUTHORITIES

Former president and prime minister Nambar Enkhbayar has ignored requests for

interviews, anti-corruption authorities have stated. The former elected official and

head of the Mongolian People’s Revolutionary Party served a year of a sentence for

corruption charges before receiving a presidential pardon in 2013. Now, authorities

say Enkhbayar has failed to appear at six scheduled meetings since February 2015,

reported the Independent Agency Against Corruption in a statement on its website.

“N. Enkhbayar has not come on the time when called on by legislative

organizations.”

Enkhbayar is being investigated for reported crimes against the U.S. citizen Alan

Ginsburg, taking in bribes, and connections to a case where MPRP member and

former health minister G. Shiilegdamba was arrested last winter.

Source: Unuudur

MPP TO TACKLE UB’S URBAN DEVELOPMENT CHALLENGES

The new government, now ruled by the Mongolian People’s Party, has promised not

to let the city fall into decay after years of improving air and soil pollution in the

urban sprawl. Parliament and the city officials agreed that Ulaanbaatar’s ger

districts raises the largest challenge for the transition of the capital into a modern-

day city with cleaner air. The city administration under Erdene Bat-Uul reduced

carbon emissions by 105.6 tons by relocating 615 families from gers and small

houses without links to city utilities such as heat and plumbing. Moving them into

apartments means less coal burned from these homes for warmth. In addition to

carbon, dust and sulfur content fell by 2.92 and 10.4 tons, respectively.

Currently, 34 companies are employing urbanization initiatives at 75 locations

throughout 24 so-called ger districts.

Source: Mongolia.GoGo.mn

ULAANBAATAR TO HOST NORTH-EAST ASIAN MAYORS FORUM

Ulaanbaatar will host the third Northeast Asian Mayors Forum from 3 to 5 August

with the overarching theme for the production and management of energy for

powering cities. Ulaanbaatar hosted the first forum in 2014, where participants

supported a development plan Ulaanbaatar to run through to 2030, in addition to

so-called mega projects that could have great impact on the Mongolian economy.

The second forum focused on implementing “green” city development.

Source: Mongolia.GoGo.mn

XYLOGRAPH ADDED AS UNESCO MEMORY OF THE WORLD

A Tibetan-Mongolian Glossary xylograph has been listed as a Memory of the World

by the UNESCO. The xylograph called Merged Garakhiin Oron (Towards Attaining

Wisdom) was created in 1924 at a religious school in Russia’s Buryatia, Republic.

Seven copies are preserved in the Museum of Rare and Precious Books of the

Mongolian National Library and others are kept in Tibetan book fund of the library.

The glossary was registered by the Government of Mongolia as a unique cultural

heritage in 2012.

Source: Montsame

BCM UPDATES: UPCOMING EVENTS JOIN BCM’S TRADE DELEGATION TO MINEXPO INTERNATIONAL 2016 The Business Council of Mongolia (BCM) is now registering members to join a Mongolian business delegation for MINExpo International 2016 at the Las Vegas Convention Center on 26 to 28 September. The expo is the world's largest show of its kind and most comprehensive exposition dedicated to mining equipment, products and services. More than 1,800 exhibitors in twelve exhibit halls will display the latest technology, equipment, components, parts and services for exploration, extraction, safety, environmental remediation and more! Attendees will learn about improving productivity, controlling costs, keeping operations competitive, improving safety and managing risk with all the new equipment, services, products and technology. There will also be plenty of opportunities to network and meet industry leaders & experts for finding potential partners and suppliers. BCM has partnered with the U.S. Embassy’s Commercial Section in Ulaanbaatar for the event. The registration deadline is 29 July. Contact BCM at 70114442 or email tugi@bcmongolia.org for registration or more information. JOIN BCM’S DELEGATION TO GLOBAL GREEN GROWTH WEEK 2016 BCM in collaboration with the Global Green Growth Institute (GGGI), is now registering a Mongolian business delegation to participate in Global Green Growth Week 2016 (GGGW2016), which will be organized at the Jeju International Convention Center, Republic of Korea on 5-9 September 2016. GGGW2016 will engage high-level officials from government, multi-lateral development banks and international development agencies, private-sector leaders, and representatives from academia and non-governmental organizations. Participants will assess green growth policy, research, partnerships, financing, and technology through GGGW2016 policy dialogues, expert panels and presentations, discussions, capacity building workshops, country-focused briefings, and technology exhibits. Why you should attend: · See and experience the latest trends in Green Growth Technology from around the world, especially in the Energy, Urban Infrastructure, Water and Land Use sectors. · Engage with experts on the show floor and in education sessions to help you solve the challenges you face daily and the ones you see on the horizon. · Network and meet government and industry leaders & experts. · Find potential partners & suppliers. For more information about the event, please click here or contact BCM at 70114442, 99109887, bayarmaa@bcmongolia.org. Registration deadline is August 13, 2016.

BCM ADVOCACY NOTES "BCM Workshop & Advocacy Efforts on the New Corporate Income Tax (CIT) Draft Law" As a follow-up action on BCM's position paper on the draft Corporate Income Tax law, on 24 May meeting was held with MP Amarjargal Rinchinnyam, who led the Working Group established at the Parliament to oversee the drafting of the draft legislation. With other private sector representatives present at the meeting, BCM has shared the concerns identified in the position paper. Read more…

BCM WORKING GROUP NEWS BCM’s Energy and Environment Working Group Meeting, 16 June 2016

BCM’s Energy and Environment Working Group meeting was held on 16 June 2016 with 3 speakers in roundtable experience sharing format. Oyunbat Tumurkhuyag, Founder of Best Energy Savings LLC introduced vacuum heater, vacuum steam boiler, smart socket and smart ger which were produced by Mongolian engineers. MP Oyun discussed about the need to leapfrog from brown to green economy, and suggested BCM to send an official letter to the Ministry of Environment, Green Development and Tourism to get a full list of laws, policies and regulations that support green development and provide incentive to private sector to go green. BCM will send this official letter and share the received list to all members and post on BCM website. The final speaker Solongo Khurelbaatar, (Former) Assistant Advisor for Asia-Oceania, Ramsar Convention Secretariat shared her work experiences at RAMSAR convention. To see the full meeting summary and upload presentations, please click here. - Risk and Legislative Working Groups' Joint Meeting on the "DRAFT AMENDMENT OF THE LAW ON DISASTER PROTECTION" 16 June 2016 - Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June 2016 - Education Working Group Meeting on “BCM SSUMMIT PROCEEDINGS”, 5 May 2016 - Capital Markets Working Group Meeting on “OYU TOLGOI UNDERGROUND PROJECT FINANCING”, 5 April 2016 - Tax Working Group Meeting on “VAT LAW”, 2 March 2016

JOB VACANCIES AT MEMBER ORGANIZATIONS

- The U.S. Embassy is hiring Administrative clerk. Deadline for application: 5 pm

August 08, 2016. For more information: please click here

-The British Embassy is recruiting a Press & Public Affairs Assistant who will provide general support to the Political & PPA section of the British Embassy. The chosen candidate will play a key role in helping to upgrade the Embassy’s Facebook and Twitter channels, including launching and delivery of Mongolian content. Only short-listed candidates will be contacted, and the position is on a fixed-term basis for six months. Click here to apply. - Mercy Corps is hiring Director of Programs. Deadline for Application: August 10, 2016. For more information: Please refer to website here Please click here to view full list of Job Vacancies at member organizations.

MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS: - Orchuulga 24 is providing 15% discount on written translation services to BCM Members - MNC HD TV offers BCM members 20% discount from the fee to be showcased in their “The Story of Business/Бизнесийн түүх” TV program. - American University of Mongolia is offering BCM members a 20% discount on all of ELI Summer Courses. - Matoza LLC is offering 15% special discount to BCM members on Intensive Business English Language Course in Poland with a Sightseeing Trip. Please click here to view full list of Member-to-Member special offers & Benefits.

WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS PRESENTATIONS: BCM Monthly Meeting, 30 May:

- B. Byambasaikhan, Chairman, BCM - “BCM Summit Proceedings” - Ch. Mergen, Executive Director, BCM - "BCM Report" - Anthony Woolley, Senior Associate, Hogan Lovells - “CIT Draft Law Update” - D. Bat-Oktyabri, Director APAC, Techstars - “Start-up community in Mongolia” - Michael Morrow, Executive Director, MACU & Ya. Enkhee, Owner & Partner at Gandan Live House, Mexikhan & Guantanamera Restaurant - “It’s all about wine & cheese” event - New Members Introduction Please click here to view full list of Presentations. MONGOLIA REPORTS: - ADB, “Asian Development Outlook 2016: Asia’s Potential Growth” (forecasts of the next 2 years for the 45 economies in Asia and the Pacific including Mongolia) - Invest Mongolia, “Your Guide to Invest in Mongolia” 2016 - BTI, “Mongolia Country Report” 2016 - World Bank, “Doing Business: Economic Profile of Mongolia 2016" Please click here to view full list of Reports.

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] May 31, 2016 *1.8% [source: NSOM] *Year-over-year (y-o-y), nationwide Note: 1.8% y-o-y; 3.2% Core - Ulaanbaatar City, May 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]

May 6, 2016 10.50% {source: Mongol Bank} CURRENCY RATES – JULY 21, 2016

Currency Rate

U.S. dollar USD 2,068.43

Euro EUR 2,293.58

Japanese yen JPY 19.77

British pound GBP 2,729.09

Hong Kong dollar HKD 266.68

Chinese Yuan CNY 310.50

Russian Ruble RUB 31.38

SouthKorean won KRW 1.84