The Business Council of Mongolia’s monthly meeting on December 7 was attended by 65 members and began with BCM Chair Laurenz Melchers review of future Conferences planned with BCM sponsorship involvement – Asian Financial Forum on January 20-21 in Hong Kong, Euromoney Mongolia Investment Forum, late March, in Beijing, and U.S. Franchising, April, in Washington, DC.  Laurenz updated as to the growth of the registrants on the Mining Supply Chain Database, now at 1,300 entities with improvements underway and exciting future expansion prospects.

Executive Director Jim Dwyer reported that membership has increased to 138 and introduced BCM’s three new members – Across Solutions Mongolia, Ilinx Express, and WebGuru.  The 2010 Membership Drive is in full swing with 85 members renewed.  All other 2009 members were urged to do so before the next monthly meeting on January 25, 2010 which will be for 2010 members only.  Jim then reviewed the current efforts of BCM working groups. He highlighted the Tax Working Group’s efforts in connection with the recent Tax Workshop with PricewaterhouseCoopers attended by 105.  Recommendations based on the issues presented will be sent by BCM to the Minister of Finance and the Tax Authority.

Mr. Eric Enhhuyag, First Deputy Governor, Bank of Mongolia, discussed "Views on Current Macro-Economics and Mongolia's Banking Sector". He said he believed the major financial crisis was behind us. Inflation is at less than 4% and is expected by Mongolbank to not exceed 6% in 2010. He said the Central Bank’s inspections were going well for the country’s three largest banks – Khan, Golomt and TDB and that reports were expected by mid-January 2010. In reference to Zoos Bank, he mentioned that the outstanding loans of the Mongol Gazar mining company were at the root of the former bank’s problems. Eric also noted that Anod Bank will be placed in liquidation this week. The deposits and the “good loans” from both Zoos and Anod banks will be transferred to the newly-formed, 100% government–owned State Bank.

Mr. Barrie Evans, Managing Director of Churchill’s and Chairman of BCM’s Food & Beverage Working Group, provided an update of the committee’s progress. They are working with the Parliamentary group to revise laws regarding food regulations and standards. Issues of producing safe food need to be brought to the table. He also mentioned the F&B working group welcomes additional members to volunteer to aid their work.

Mr. D. Ganbold, President, Mongolian National Mining Association, began his update by saying that Discover Mongolia 2009 was a big success with over 1000 attending. He mentioned his meeting with the Prime Minister and that the focus of the discussion was on PPP. They are expanding their scope of operation and there seems to be more understanding and cooperation from various areas of the government. Planning is underway for 2010 which will be reviewed in a meeting with BCM later in the week.

Mr. Eric de Seze, General Director & CEO, Areva Mongol, gave an extremely interesting presentation on the nuclear energy cycle, from the mining of uranium to producing energy.  He also gave comparisons, in numbers, to other forms of energy, such as coal and its business pros and cons.  For more information, his presentation can be found on the BCM website, BCM News & Press.