News News

BCM "Member-Get-A-Member" (MGM) Campaign is starting!

The first 2015 Member-Get-a-Member Campaign is underway. The campaign runs from May 1, 2015 - October 1, 2015

Encourage a colleague to join BCM at 50% discounted price and increase your impact and engagement with BCM.
The 2015 Member-Get-a-Member Campaign features the great prizes below. You will also be recognized in BCM NewsWire, Facebook and BCM website.

 

Recruitment Challenge!
You are the greatest testimony to the benefit of the BCM membership. As a reward for your recruitment efforts, we are offering three grand prizes. The prizes will be awarded based on recruited members’ membership sizes and numbers. The larger entities you recruit, the greater your chance of winning exciting prizes. Each new member that you recruit receives 50% discount on membership dues.

 

Requirement: to be eligible for the prizes, the recruiter should recruit at least three local-small companies.

Please note that the BCM administration staff is not participating in the contest.

 

Three Grand Prizes:

1. PLATINUM RECRUITER
Individual: 1,000,000 tugrugs plus one-year free membership
Special Recognition on BCM NewsWire, website and facebook
Company: One-year free membership plus three-month Free Banner Ad on NewsWire (MNT1,500,000 value)
Special Recognition on BCM NewsWire, website and facebook
2. GOLD RECRUITER
Individual: 500,000 tugrugs plus 50% off of membership dues
Company: 50% off of membership dues plus one free email marketing to BCM members (MNT 1,000,000 value)
3. SILVER RECRUITER 
Individual: 20% off of membership dues plus Phillips Electronic Household item (MNT 250,000 value)
Company: 20% off of membership dues plus a speaking slot for selected BCM monthly meeting with opportunity to distribute hand-outs/brochures.

The prizes will be awarded at the BCM Renewal Dinner in November 2015.

 

How to participate:
- Please use the BCM Membership Packet which you could send to your interested colleague. You will have all the information on membership sizes, dues and benefits from the packet. Please click here to download a membership packet in English. In Mongolian.
- Have interested candidates contact the Project manager Saruul at This email address is being protected from spambots. You need JavaScript enabled to view it. under your name. 
- Once your proposed colleague pays membership dues, we will send to you the confirmation letter saying you successfully recruited a new member.
- Companies can participate by having their daughter companies join.

 

Need assistance with recruiting new members? Contact Saruul at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 317027.

Thank you for participating in the Member-Get-a-Member Campaign!

 

Tavan Tolgoi tug of war

Source: UB Post

While smug politicians wrestle over Mongolia’s most valuable mines, the country’s economic and social woes continue to grow. The parliamentary task group working on the Tavan Tolgoi project, headed by MP L. Erdenechimeg, has given no hints as to the future of the project, with some members of the group saying they hadn't met more than twice in the past month. Erdenechimeg claimed that a new translation for the agreement to turn over management of the mines to a private consortium had discrepancies between the English and Mongolian language versions.

Consortium member Energy Resources LLC, one of the nation’s biggest companies with an overabundance of political interests, is speculated as being one of the reasons for the delay in the deal. Frankly, anyone who’s been following the issue since 2012 probably isn’t expecting much from this project any longer.

 

Home real estate sales decline 27%

Source: Mongolia.GoGo.mn

Real estate prices have continued their 10-month slide, with total sales falling 27 percent in May compared with the same period last year, according to market data from Tenkhleg Zuuch. A House Price Index compiled using sales prices from 4,538 old and new houses fell 5.4 percent in May from the year before, to 16.8 points. A separate index for new houses fell 0.5 percent from May last year to 26.7 points, while the index for older homes fell 9.8 percent to 10 points.

Tenkhleg attributed the devaluation to residents' diminished purchasing power.

 

 

Petro Matad receives government approval for farm-out in Mongolia

Source: Digitallook.com

Petroleum explorer Petro Matad Ltd. has received government approval for the farm-out to BG Group for some of its properties. BG has agreed to shared ownership of Petro Matad's 78 percent interest in blocks IV and V in central Mongolia in exchange for its services. Petro Matad said it had low cash reserves, but continues to be "highly confident" that the remaining condition of the farm-out will be completed before the reserves run out.

In case of a delay, the company is in talks with a potential provider of short-term funding.

 

Sumitomo exports mining equipment imports into mongolia

Source: Sumitomo Corp.

Sumitomo Corp. has closed a deal for the export of two Komatsu hydraulic mining excavators worth approximately JPY500 million (USD4 million) to a leading mining contractor in Mongolia, marking the first drawn down from a credit line from Japanese banks. Sumitomo will deliver the equipment via its Mongolian subsidiary, Transwest Mongolia LLC, to Khishig Arvin Industrial LLC. Japan Bank for International Cooporation (JBIC) and Bank of Tokyo-Mitsubishi UFJ are co-financing the deal under an export credit line for Mongolian government established in June 2013.

Sumitomo Corporation has supplied Komatsu mining equipment for Rio Tinto Group’s Oyu Tolgoi copper mine and the state-owned Tavan Tolgoi coal mine since 2010.

 

Erdenes TT ramps up production to make up for price fall

Source: UB Post

Erdenes Tavan Tolgoi LLC is ramping up production and sales while global coal prices remain weak, according to a managing official. “The market conditions will not improve,” said Managing Director N. Nyamgerel. He said company projects exports to double in 2015 from the year before, to 11 million tons. Projected revenue for the first quarter of 2015 was MNT34 billion, with MNT 3.3 billion in net profits. Buyers in China include Bayannuur Puushin Coal Industrial and Wulate Zhoungql Alion Resources Company, and the state-owned miner is expanding exports to Russia, he added.

Erdenes TT has concentrated on increasing efficiency during the market downturn, with trucks now making shipments on a 24-hour timetable.  Operation costs are down, too, with the establishment of a new customs stockyard in Mongolia to replace the Tsagaan Khad facility across the border. Those savings will help the company make a dent in the MNT175 billion in coal deliveries owed to Aluminum Corp. of China Ltd.

 

Parliament to again consider stake in Centerra's Gatsuurt

Source: Montsame

Parliament will consider a 34 percent stake in Centerra Gold Inc.'s Gatsuurt gold project. Centerra Gold, which also operates the Boroo gold mine, would take the remaining 66 percent shareholding in the mine, according to a plan approved by the Cabinet Secretariat at a 5 June irregular meeting. Law makers failed to come to an agreement on the size of their stake in this year's fall session.

 

OT deal is just what the doctor ordered for a sick economy

Source: Mongolian Economy

The landmark agreement to push forward the underground expansion project at the Oyu Tolgoi copper mine has many excited that Mongolia's economy will return to levels similar to the boom years of 2011 and 2012. But while Oyu Tolgoi will help the central bank sidestep financial crisis and may help lift growth, an immediate turn around isn't likely.

After the narrowing of the current account deficit last year to 8 percent of GDP, Mongolia reached a trade surplus for the first quarter of this year. However, the falling demand for goods typically purchased from abroad that caused the tilt is also a sign of economic weakness.  Investment into Oyu Tolgoi, and perhaps even other mines such as the Tavan Tolgoi coking coal mine, could lift growth to as high as 8 percent, said Bold, although the baseline projection for GDP growth was between 4 and 6 percent. “The worse period is over,” said Bank of Mongolia Chief Economist Sandagdorj Bold.