The monthly meeting on September 28, attended by 80 members, began with BCM Chair Laurenz Melchers announcing the completion of the work on the first phase of the mining supply chain database project, which offers a comprehensive list of almost 1,200 local suppliers. Its formal launch will take place over a three week period immediately after the signing of the Oyu Tolgoi agreement. The AIESEC has asked companies in Mongolia to use its list of 4,000 internship candidates from several countries. Mr. Melchers also gave a summary of the mostly “encouraging” responses received so far from members to the recent BCM questionnaire. Initial responses indicate 100% satisfaction with BCM visibility through its actions, website and public participation and 96% plan to continue BCM membership.  Some 23% of the members have said they have little idea of what the various BCM working groups are doing. Mr. Melchers said the groups comprised people who offered their services free. All of them had a regular job and so were sometimes pressed for time. They were not “exclusive clubs” and he asked more members to express interest in joining a group of their choice.

Executive Director Jim Dwyer reported membership now stood at 131, a healthy increase, especially as the past business year has been “a difficult one”. The three new members since the last meeting are New Juulchin  Tours, Chinggis Khaan Bank and Geotrass. Mr. Dwyer then outlined plans for the 2010 BCM Membership Drive.

Mrs. D.Onchinsuren, General Director of Onch Audit and Chair of the BCM Tax Working Group, and Mr. B.Bayar, Managing Director of Economic & Legal Consultancy (ELC) and Chair of the Legislative Committee, gave an update of their progress. The Tax group notes that there is no definition of what constitutes the “final products” to claim exemption from the recent amendments to the VAT refund law. The amendments, passed in August, are not specific about what exactly these final products are or should be, and the BCM recommendations will be sent to the Government.  The Legislative group is reviewing 65 draft laws pending discussion in Parliament’s Fall session, including ones on concessions including public-private-partnerships, social welfare, trademarks, and micro-mining. Its comments and suggestions will be forwarded to the appropriate authorities.

Mr. Parmeshwar Ramlogan, Resident Representative, International Monetary Fund, gave a presentation on "The IMF Stand-By Arrangement with Mongolia: How It Is Helping To Safeguard Macroeconomic Stability". He explained the core elements of the arrangement, which offered IMF “help to resolve the difficulties” the Mongolian Government faced, “in return for a Government commitment to follow an economic program” that has been mutually agreed upon. Two quarterly reviews are satisfied that “nearly all structural benchmarks” have been met. Progress has been slower than anticipated, but there is “cause for optimism” that Mongolia will be helped out of the crisis during the term of the program.

The presentation by Mr. Chad Blewitt, Chief Financial Officer, Ivanhoe Mines Mongolia Inc. (IMMI), was on “An Overview of the Oyu Tolgoi Procurement Process - Opportunities and Challenges”. The initial period of the project will see a lot of imports but “the local content” will radically increase once operations begin. The opportunities will help local suppliers reach international standards in both commitment and quality, but, Mr. Blewitt warned, nobody could expect any favor only because it was local.

The vocational training system in Mongolia, with its “underfunded facilities and inadequate curriculum” need an overhaul, but numerous doors will open up for good performers to work at an international level.  The exposure to and experience from working with “an ethical and transparent company” will be of immense value to the top suppliers to become exporters. “We are going to get the world’s best here because we are going to be here for 50 years,” Mr. Blewitt said, adding that Rio’s global experience has been that it can be successful only when “it helps set up a sustainable economy locally”.