Dalanzadgad is the capital of the South Gobi province and fastest growing provincial capital in Mongolia.

Our Firm (Eurasia Capital) estimates that the population of Dalanzadgad will quadruple in the next five years and by 2015 this town will enjoy the highest GDP per capita in Mongolia. South Gobi is home to two crown jewels of Mongolia: Tavan Tolgoi, the world’s largest untapped coking coal deposit and Oyu Tolgoi, the world’s largest undeveloped copper & gold mine.  We anticipate Dalanzadgad becoming a regional center for dozens of mining companies and hundreds of firms in multi-billion dollar mining supply chain.

FYI, Erdenet, the second largest city in Mongolia has estimated US$6,400 GDP per capita, the highest in Mongolia.  Erdenet is the capital of the Orkhon province, founded in 1975 as a new industrial center after discovery of the world class Erdenet copper mine in 1974. Erdenet is home to Erdenet Mining Corp., Mongolia’s largest company, biggest taxpayer and exporter, and accounts for 13% of the country’s GDP.

Source: Eurasia Capital

Overview: Mongolia has a developing judicial system, sometimes even described as “rotten to the core”.  People need to do due diligence before coming to Mongolia to do business.  Following the law to your best ability from the beginning will help prevent issues later.

For business news, the state budget containing 76 Billion tugrugs or 1 billion tugrug per each MP, has been passed, even after a veto by the President of Mongolia.  Millennium Challenge Account is investing more than hundred million USD for clean air and road infrastructure projects.  Boroo Gold mining company has agreed to donate 1 million USD for new national park being developed in Ulaanbaatar.

For “Mongolia Business” podcast update, we received some recommendations from one of our listeners.  We also received a five star review on iTunes.

Podcast can be downloaded from iTunes or from our website.  For directions, visit: Mongolia Business podcast

This week’s podcast talk show was recorded on December 18, 2009 and published on December 20, 2009.  Below are highlights, not a verbatim transcript, of the recording.

Mongolia Business Blog PODCAST update

• We received a suggestion for improvement from one of our listeners.  Bachi Nyangar mentioned that we should have a starting and ending music and maybe a female co-host.  He also suggested that we start covering mining stock prices and getting sponsorships for the show.
• We also received our first five-star review on iTunes.  Mendorshikh, young Mongolian studying computers in the US, is a big fan of our show and mentioned that our podcast is THE FIRST EVER Mongolian podcast in the world.

Some business & mining news from last week:

• There was a big news event over the past week with the 76 billion tugrugs in the state budget.  This 76 billion was to be 1 billion per each parliamentary member to spend on their own districts.  This portion of the state budget received quite a lot criticism as being a “pork barrel” spending.  Media outlets pointed out that the spending of 1 billion by each MP is going to lack transparency and that the funding would have been much better spent on larger national issues such as healthcare, education, and infrastructure.  Mongolian President Elbegdorj used his veto powers to veto this bill.  Some MP’s joined in on the call and refused to support the bill.  However, in the end, it was approved with 40+ MP’s voting for their rights to receive 1 billion each.
• Boroo Gold mining company agreed to invest $1,000,000 for the new National Park Project for Ulaanbaatar.  The public and media have been questioning the 76 billion tugrugs that was approved as part of state budget and why we Mongolians cannot ourselves spend the money on important matters such as healthcare and education.
• Millennium Challenge Account is going to invest in two new projects: Clean Air Project ($127 million) and Road Project (road between Choir & Sainshand City and road to Nalaikh due in about three years).   MCC is chaired by US Secretary Hillary Clinton.
• Ivanhoe Mines announced it will spend $786 million this year on ramp-up for mining the Oyu Tolgoi mine site
• H1N1 curfew ended few weeks ago.  Minister of Health announced it doesn’t know what to do with all of the Swine Flu vaccines.  They arrived late, but now that they are here… nobody wants them now.  Just a few weeks ago, people could not walk into buildings without a mask
• Because of the H1N1, there will be no state funded New Year’s party.  Maybe we can get the MP’s to pitch in from the
• Lots of foreign aid to Mongolia, but what is Mongolia itself doing?  Maybe we need to be more responsible and take matters into our own hands?

“Mongolian Law and Legal Environment”

Interview with guest speaker James Liotta, Managing Director of Lehman, Lee, & Xu.  Below is an abridged highlight of what was discussed.  It is not verbatim.

MONGOLIA BUSINESS BLOG: Can you briefly describe Lehman Lee & Xu and what it does?

• JAMES LIOTTA: Lehman Lee & Xu is a Mongolian firm with networks throughout Asia and has been in Mongolia for about seven years.  Company focuses mainly on mining and private sector, but it also works with NGO’s and governmental organizations as well.  Over the past seven years, there has been a growing need for development of rule of law.

MONGOLIA BUSINESS BLOG: Can you describe the legal environment of Mongolia for people looking to do business & invest in Mongolia?

• JAMES LIOTTA: #1 thing I recommend to anyone is to do “due diligence”.  There are a lot of cowboys that come here and think they can do anything they want.  There is a lot of law out there, and when implanted, it can cause some headaches if you are ill prepared.  It is a civil law system.  There is more help to develop the Mongolian legal system.  There is regression in rule of law in Mongolia.  There was a recently published review which called the Mongolian judicial system as “Rotten to the Core”.

MONGOLIA BUSINESS BLOG: What are the major challenges for your clients?

• JAMES LIOTTA: We have a diverse group of clients.  The biggest problem is that they can’t count on the judiciary here.   The courts do not appear to be separated from politics entirely.  The courts do not seem to be using or importing sophisticated concepts of law.  For instance, if there is a complex commercial matter, the judge who has opened the case is not going to be equipped to properly handle the case.  The problem is not that always it is the case of corruption, but clients need to understand that they are entering into a developing judicial system.  And, their best defense is to comply with the law as best as possible…

MONGOLIA BUSINESS BLOG: So what happens that when clients do end up in courts?

• JAMES LIOTTA: I think it is pretty obvious that courts do have preference to Mongolian companies and individuals… I think I should divide it up here.  There are those who are “cowboys” who have not made any efforts to comply with the law.  They often do get slapped with fines, and they probably should be fined.  The clients I feel sorry for are ones that do everything they should and still get fined.  There is sometimes a notion that “foreign entities have the money; why not fine them?”  What we recommend to our clients is to try and take the arbitration outside of Mongolia…
• …

To get the full interview, you will need to either listen or download the podcast.  Please visit our podcast page: Mongolia Business podcast

Other topics covered with James Liotta:

• Rates of law firms… Some are very expensive… Lehman’s rates are often lower than other Mongolian firms and quality is one of best.
• Jay first came to Mongolia in 2000 as a Peace Corps volunteer.  Has been in Mongolia for 6 years during past 9 years.
• Working on a manuscript “Rule of Law and Legal Culture of Mongolia” due to be published in the next few months… Incorporates things such as “How Chinggis Khaan (Gengis Khan) used rule of law to rule Mongolia…
• Access to Mongolian law has improved
• #1 advise: Do your due diligence
• Likes seeing students grow develop… Practicing law in Mongolia is extremely frustrating, but also extremely exciting… The book on rule of law in Mongolia with Professor Lundendorj…
• I love Mongolia and Mongolians, but have zero sympathy… Buck up Mongolia!  Instead of making excuses or going in the wrong direction, work together as a team and make it happen.  I’ve seen firsthand that when Mongolians work together, there are some pretty amazing results that can happen.

To listen, to download, or to subscribe to the podcast, please visit: Mongolia Business podcast

To contact us with questions, comments, & suggestions, please email us at MongoliaBusinessBlog (at) gmail (dot) com.  You can also follow us on twitter: @MongoliaBiz.

A friend of mine emailed me this.  The source was “The Arts Council of Mongolia“.

Enjoy!

BEST ARTWORKS OF THE YEAR

Modern Art Gallery

Dec 4 – Dec 30

The Modern Art Gallery of Mongolia is hosting its annual ‘Best Artworks of the Year’ competitive exhibition from December 4 until December 30. There are 120 artworks in the exhibition, and they will be judged over two weeks. A select few will then be brought into the gallery’s collection at the conclusion of the exhibition.

For more information please call 327177 or 331687

NATIONAL FOLK SONG AND DANCE ENSEMBLE

(Tel: 323954, 99283116, 88083116)
Web address: www.mon-ensemble.mn

• 14-15^th 7 PM   ‘Mongolian Melody’ performance

CENTRAL CULTURAL PALACE

(Tel: 321444, 328833, 323954)

Please call for a detailed schedule

STATE PHILHARMONIC HALL

(Tel: 70118012)

Please call for a detailed schedule

THE AMERICAN CENTER FOR MONGOLIAN STUDIES

2009 ACMS Speaker Series

• Independent Students Study Project Presentation, World Learning / SIT Study Abroad Program DECEMBER 2^ND, 2009, 10AM ROOM 304, BUILDING NO.5, NUM
• Khamnigan: Documenting and Describing the Endangered Language of the Northern Mongolic People Speaker: Andrew Shimunek, Fulbright Fellow, Indiana University, Bloomington DECEMBER 3^RD, 2009, 5PM ROOM 305, BUILDING NO.5 NUM
• Chasing the Singers: The Transition of Mongolian Long-Song (Urtiin-Duu) in Post-Socialist Mongolia Speaker: Sunmin Yoon, Ph.D. University of Maryland DECEMBER 10^TH, 2009, 5PM ROOM 305, BUILDING NO.5 NUM
• Transition and New Public Management in Mongolia: A Comparative Perspective Speaker: David K.Hausman, Research Specialist, Princeton DECEMBER 17^TH, 2009, 5PM ROOM 305, BUILDING NO.5 NUM

For more information, please call 350 – 486

OPERA AND BALLET THEATRE

(Tel: 99054570, 98200443, 70110389)

• 1st    5 PM   ‘Carmen’ opera
• 7th    5 PM  ‘Swan Lake’ ballet
• 14th    5 PM   ‘Three Dramatic Characters’ opera
• 15th    5 PM  ‘Skilled Khas’ opera
• 21st    5 PM   ‘Rigoletto’ opera
• 22th    5 PM   ‘Nutcracker’ ballet
• 28th    5 PM   ‘Die Fledermaus’ operetta
• 29th    5 PM   ‘Nutcracker’ ballet

STATE ACADEMIC DRAMA THEATRE

(Tel: 324621, 99199794, 88087088)

Special performance

• 4-8^th 7 PM   ‘The Hunchback of Notre Dame’ play
• 9-13^th 7 PM  Opening of ‘Yellow Sea Anguish’ play
• 16^th 2 PM  ‘Golden generation-2009’ conference
• 17^th 5 PM  ‘We Won’t Forget’ performance
• 18^th 2 PM  Performance by Jigjid
• 18^th-20^th 7 PM  ‘The Hunchback of Notre Dame’ play

L’ ALLIANCE FRANCAISE de MONGOLIE

(Tel: 351914)

Located on the south side of the International Student Dormitory of the National University of Mongolia

Please call for a detailed schedule.

German Information Library

(Tel/Fax: 976-70118333) located in Cultural Palace Complex

E-mail: deutsche_infobib@yahoo.de

Mon-Fri: 9.00 am – 5.00 pm

Sat: 12:00 am – 5.00 pm

Information and resources on German language, culture, literature, history, geography, art, science, economics and legal studies are available.

TENGIS MOVIE THEATER

(Tel: 313105, 312719, 91913307)
Web address: www.tengis.mn
Tickets: adults 4000₮, children 3000₮
On Tuesday and Wednesday tickets: 2500₮
New movie opening day tickets: 2000₮

• Record Of Love (Mongolian)
• Take Off (Korean)
• Final Destination-4 (American)

Please call or visit for a detailed schedule.

TUMEN EKH NATIONAL SONG AND DANCE ENSEMBLE

(Tel: 322238, 96664374, 96650711) Located in the Children’s Park, near the Seoul restaurant

Performance with booking

MOON STONE FOLK SONG AND DANCE ENSEMBLE

(Tel: 99186171 and 99288399)

Tickets: Foreign adults $7, Mongolian adults 5000₮, Children 3000₮

Performance with booking

TORGO FASHION SALON

(Tel: 324957, 919190508, 99122448) located in the D block of Golomt complex, West main road

Tickets: adults $7, children 3000 ₮

Fashion show with booking

ART GALLERY OF THE UNION OF MONGOLIAN ARTISTS (Tel: 327474)

Web address: www.uma.mn

Everyday

10 am – 6 pm

Entrance is free

• 4-11^th Exhibition ‘Earth color’ by artist Ts. Erdenetsogt
• 12-19^th Solo exhibition by artist D. Enkhtaivan
• 20-27^th Joint exhibition by artists G. Nurmaajav and M. Bayarmagnai
• 29-10 Jan Exhibition ‘New Art – 2009’

MODERN ART GALLERY

(Tel: 327177, 331687)

Everyday 9am- 5pm

Tickets: adults 2000₮, children 400₮, students 1000₮

• 4-30^th Best Artworks of The Year
• 4-14^th Exhibition celebrating the 80^th anniversary of transport and infrastructure
• 9-15^th Exhibition of traditional Mongolian art style ‘Uulen Durs Buyu Uran Ukhaaral’
• 17-18^th Photo exhibition ‘Let’s Embrace Our Culture and Send Letters For Tomorrow’
• 19-23^rd Photo exhibition by Mongolia-Germany NGO ‘Bridge’

ZANABAZAR FINE ART MUSEUM

(Tel: 326061, 326060, 326837)

Web site: www.mongolianationalmuseum.mn

More information on Zanabazar himself is available at www.zanabazar.mn.

Monday – Friday: 10 am – 5pm

Tickets: adults 2500₮, children 200₮, student 400₮

• 7-11^th Joint exhibition by young artists M.Davaa, M.Gan-Ochir and L.Munguntsetseg
• 12-18^th Photo exhibition by Mongolia-Germany ‘Bridge” NGO

RED GER ART GALLERY

(Tel: 319015, 99235422) located in Zanabazar Museum of Fine Art

Web address: www.artscouncil.mn

Operated by the Arts Council of Mongolia, supporting Mongolia’s finest young artists.

Monday – Friday: 10am – 5pm

Entrance free

BLUE SUN CONTEMPORARY ART GALLERY

(Tel: 99860122, 95259374) located in the building # 23 opposite to the Ulaanbaatar Bank

Web address: www.bluesun.mn

Everyday 10am- 5pm

Entrance free

KHAN BANK ART GALLERY

(Tel:332333, /3264/ ) located in Khan Bank new building, Seoul street

Mon-Fri 9am – 6pm

Entrance free

E-mail address: artgallery@khanbank.com

13-9^th Dec  ‘Memory of Art’ Exhibition for J.Bold (1958-1997)

PEARL ART GALLERY

(Tel:326793, 99138281) Located in the 220 myangat #25-31

Everyday 11am – 7pm

Entrance free

Closed Sunday

5+… STUDIO GALLERY

(Tel: 88812615; 88890124) located in Union of Mongolian Artists Studio B, 2^nd floor, room 210, Erkhuu Street, Sukhbaatar District  (west side of the US Embassy, on big ring road)

Website: www.arts5plus.com

Everyday 11am – 5pm

Entrance free

XANADU ART GALLERY

(Tel: 310239, 99110873) Juulchin Street, north of the State Department Store, beside the Tedy Center

Website: www.xanaduartgallery.org

Monday-Friday: 10 am – 7 pm
Saturday: 11 am – 7 pm
Closed Sunday

Entrance free

• 18 Nov-20^th Dec       Solo exhibition by B.Badral
• 20-11 Jan    Solo exhibition by B.Orkhontuul

INFORMATION TECHNOLOGY SHOWROOM

(Tel: 318070) located in the National Information Technology Park

Web address: www.itpark.mn

Science and Education Exhibition Hall

Monday to Friday 10am–2pm and 3pm–5:30pm

Tickets: adults 1000₮, children 500₮

BOGD KHAAN PALACE MUSEUM

(Tel: 342195)

Everyday 9.30am – 4.30pm

Tickets: adults 1000₮, children 300₮, tourists 2500₮

(Closed on Wednesday, Thursday)

CHOIJIN LAMA MONASTERY MUSEUM

(Tel: 328547)

Everyday  10am- 4pm

Tickets: adults 2500₮, children 500₮, students 1000₮

(Closed on Monday, Tuesday)

NATIONAL MUSEUM OF MONGOLIA

(Tel: 70110911; 70110912)

Website: www.nationalmuseum.mn

Everyday 10 am – 4:30 pm

Tickets: adults 2500₮, children 600₮, students/ seniors 1200₮, family ticket 3000₮

(Closed on Sunday, Monday)

NATURAL HISTORY MUSEUM OF MONGOLIA

(Tel: 70110183)

Everyday 10am – 4:30pm

Tickets: adults 2500₮, students 1000₮, children 300₮, children under school age  free

(Closed on Monday, Tuesday)

MONGOL COSTUME MUSEUM

(Tel: 328140, 328840, 91910917)

Everyday 9am – 6pm

Tickets:  Tourists 2000₮, adults 1500₮

(Please call in advance to visit 328140, 328840)

Fashion shows with bookings

CALLIGRAPHY MUSEUM

(Tel: 315388)

Web address: www.inkway.mn

Everyday 10am – 6pm

Entrance is free

A&D MUSEUM OF ART

(Tel: 99115997; 317837)

Web address: www.mongolianantique.com

Everyday 9am – 6pm

Tickets:  Tourists 2000₮, adults 2000₮, students 1000

(Closed on Sunday)

Please call in advance to visit

BADAMKHAND MUSEUM OF ART

(Tel: 99050832)

Weekdays 10am – 6pm

Khan-uul district Zaisan Dreamland hothon 3-1

(Closed on weekends)

THEATRE MUSEUM

(Tel: 311320)

Everyday 9am – 5pm

(Closed on weekends and opened with bookings in advance)

Tickets: adults 1500₮, Primary and high school children 200₮, University students 300₮, tourists 1,000₮

INTERNATIONAL INTELLECTUAL MUSEUM

(Tel: 461470)

Everyday 10am-6pm

(Closed on Sunday and open with bookings)

Tickets: adults 2000₮, primary and high school children 1000₮, young children 500₮, tourists 3000₮

POSTAGE and STAMP MUSEUM

(Tel: 362972)

Web address: www.stamp.mn

Everyday 9am-6pm

Entrance is free

MONGOL MILITARY MUSEUM

(Tel: 261782, 261863, 261959)

Everyday 10am-5pm

Tickets: adults 1000₮, school children 300₮, tourists 2000₮

MEMORIAL MUSEUM FOR VICTIMS OF POLITICAL PERSECUTION

(Tel: 70110915)

Mon-Fri 9am-5pm

Tickets: adults 500₮, school children 200₮, University students 300₮, tourists 2500₮

MUSEUM OF ULAANBAATAR CITY HISTORY AND REFORMATION

(Tel: 450960)

Everyday 9am-6pm

Tickets: adults 1000₮, school children 300₮, University students 500₮, tourists 1500₮

MUSEUM OF MONGOLIAN TRADITIONAL MEDICINE

(Tel: 342650, 99244135)

Everyday 10am – 4.30pm

(Closed on Wednesdays)

Tickets: adults 1500₮, children 500₮, tourists 2500₮

RAILROAD HISTORY MUSEUM OF ULAANBAATAR

(Tel: 244493) located Bayangol district, Zamchnii street 1.

Everyday 9am – 5pm

Tickets: adults 1000₮, children and University students 500₮, tourists $2

CULTURAL HERITAGE MUSEUM OF CHINGGIS KHAAN

(Tel: 99188143) located Khan-Uul district, Yarmag, street 18, # 433, behind the 41^st school, near the Khan Bank branch)

Open Everyday 10am – 6pm

Tickets: adults 1000₮, children 300₮, tourists 2000₮

DETROIT AMERICAN BAR

(Tel: 320033)

• Everyday   9:30 pm   Live performance by Yuppo
• Friday   9:30 pm  Live performance

RIVER SOUNDS

(Tel: 320497, 99293232, 99145757)

• Mon-Wed            10.30 pm  Live performance by A-Sound
• Thru-Sat  10.30 pm  Live performance by Black and White

GRAND KHAAN IRISH PUB

(Tel: 336666)

• Monday            9:00 pm  Live performance by The Lemons
• Tuesday             9:00 pm  Live performance by Fire band
• Wednesday  9:00 pm  Live performance by Starfish band
• Thursday   9:00 pm  Live performance by  L-Guards
• Friday   9:00 pm  Live performance by Beer band
• Saturday  9:00 pm  Live performance by singers

STRINGS

(Tel: 70150915, 91995504)

• Wednesday, Friday  9:00 pm  Live performance by Moon River
• Thursday, Saturday 9:00 pm  Live performance by Pause Jazz Band

STRINGS

(Tel: 367845, 91995504)

• Everyday  9:00 pm Live performance
• Sunday  9:00 pm  Live performance by a Mongolian band

IKH MONGOL

(Tel: 331206)

• Monday  9:30 pm  Live performance by L – Guards
• Tuesday             9:30 pm  Live performance by The Lemons
• Wednesday  9:30 pm  Live performance by Fire
• Thursday   9:30 pm  Live performance by Altan Urag
• Friday   9:30 pm  Live performance by Fire
• Saturday  9:30 pm  Live performance by X-Vit
• Sunday  9:30 pm  Live performance by Altan Urag

ARTE RESTAURANT

(Tel: 70111585)

Tuesday -Friday  8:30 pm  Live performance

M-CLUB

(Tel: 319866)

www.m-club.mn

M-Cinema, M-Playstation 3, M-lounge, M-Bowling are available in M-Club