1 PRIME MINISTER OYUN-ERDENE VISITS EGIIN GOL HYDROPOWER PLANT PROJECT SITE WWW.MONTSAME.MN PUBLISHED:2025/04/30      2 ‘I FELT CAUGHT BETWEEN CULTURES’: MONGOLIAN MUSICIAN ENJI ON HER BEGUILING, BORDER-CROSSING MUSIC WWW.THEGUARDIAN.COM PUBLISHED:2025/04/30      3 POWER OF SIBERIA 2: ECONOMIC OPPORTUNITY OR GEOPOLITICAL RISK FOR MONGOLIA? WWW.THEDIPLOMAT.COM PUBLISHED:2025/04/29      4 UNITED AIRLINES TO LAUNCH FLIGHTS TO MONGOLIA IN MAY WWW.MONTSAME.MN PUBLISHED:2025/04/29      5 SIGNATURE OF OIL SALES AGREEMENT FOR BLOCK XX PRODUCTION WWW.RESEARCH-TREE.COM  PUBLISHED:2025/04/29      6 MONGOLIA ISSUES E-VISAS TO 11,575 FOREIGNERS IN Q1 WWW.XINHUANET.COM PUBLISHED:2025/04/29      7 KOREA AN IDEAL PARTNER TO HELP MONGOLIA GROW, SEOUL'S ENVOY SAYS WWW.KOREAJOONGANGDAILY.JOINS.COM  PUBLISHED:2025/04/29      8 MONGOLIA TO HOST THE 30TH ANNUAL GENERAL MEETING OF ASIA SECURITIES FORUM WWW.MONTSAME.MN PUBLISHED:2025/04/29      9 BAGAKHANGAI-KHUSHIG VALLEY RAILWAY PROJECT LAUNCHES WWW.UBPOST.MN PUBLISHED:2025/04/29      10 THE MONGOLIAN BUSINESS ENVIRONMENT AND FDI: CHALLENGES AND OPPORTUNITY WWW.MELVILLEDALAI.COM  PUBLISHED:2025/04/28      849 ТЭРБУМЫН ӨРТӨГТЭЙ "ГАШУУНСУХАЙТ-ГАНЦМОД" БООМТЫН ТЭЗҮ-Д ТУРШЛАГАГҮЙ, МОНГОЛ 2 КОМПАНИ ҮНИЙН САНАЛ ИРҮҮЛЭВ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/30     ХУУЛЬ БУСААР АШИГЛАЖ БАЙСАН "БОГД УУЛ" СУВИЛЛЫГ НИЙСЛЭЛ ӨМЧЛӨЛДӨӨ БУЦААВ WWW.NEWS.MN НИЙТЭЛСЭН:2025/04/30     МЕТРО БАРИХ ТӨСЛИЙГ ГҮЙЦЭТГЭХЭЭР САНАЛАА ӨГСӨН МОНГОЛЫН ГУРВАН КОМПАНИ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/30     "UPC RENEWABLES" КОМПАНИТАЙ ХАМТРАН 2400 МВТ-ЫН ХҮЧИН ЧАДАЛТАЙ САЛХИН ЦАХИЛГААН СТАНЦ БАРИХААР БОЛОВ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/30     ОРОСЫН МОНГОЛ УЛС ДАХЬ ТОМООХОН ТӨСЛҮҮД ДЭЭР “ГАР БАРИХ” СОНИРХОЛ БА АМБИЦ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/30     МОНГОЛ, АНУ-ЫН ХООРОНД ТАВДУГААР САРЫН 1-НЭЭС НИСЛЭГ ҮЙЛДЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     ЕРӨНХИЙ САЙД Л.ОЮУН-ЭРДЭНЭ ЭГИЙН ГОЛЫН УЦС-ЫН ТӨСЛИЙН ТАЛБАЙД АЖИЛЛАЖ БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     Ц.ТОД-ЭРДЭНЭ: БИЧИГТ БООМТЫН ЕРӨНХИЙ ТӨЛӨВЛӨГӨӨ БАТЛАГДВАЛ БУСАД БҮТЭЭН БАЙГУУЛАЛТЫН АЖЛУУД ЭХЛЭХ БОЛОМЖ БҮРДЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/29     MCS-ИЙН ХОЁР ДАХЬ “УХАА ХУДАГ”: БНХАУ, АВСТРАЛИТАЙ ХАМТРАН ЭЗЭМШДЭГ БАРУУН НАРАНГИЙН ХАЙГУУЛЫГ УЛСЫН ТӨСВӨӨР ХИЙЖЭЭ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/29     АМ.ДОЛЛАРЫН ХАНШ ТОГТВОРЖИЖ 3595 ТӨГРӨГ БАЙНА WWW.EGUUR.MN НИЙТЭЛСЭН:2025/04/29    

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Events

Events

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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Ulaanbaatar City Initiates Capital City Bond Issuance for Strategic Development www.mongoliaweekly.org

Mongolia's capital, Ulaanbaatar city, recently applied to issue capital city bonds on August 25, 2023. The aim is to raise funds that can be used to address various economic and social challenges the city is facing. The plan involves offering bonds with a total value of up to 500 billion tugriks, which is roughly equivalent to around $144 million. This effort aligns with existing legal regulations.
Ulaanbaatar applies for raising bond
The funds generated through these bonds will play a crucial role in financing strategic projects. These initiatives are aimed at improving the overall condition of the city. Key projects include urban decentralization, the reduction of congestion, expanding the road network, enhancing access to educational institutions, improving the quality of life for citizens, and creating better living conditions in general.
The process of issuing these bonds is being facilitated by BDSec JSC, a company with a 32-year history in providing investment consultation and underwriting services for significant projects. Their expertise adds credibility to the initiative.
The mayor of Ulaanbaatar stressed the importance of meticulous planning, embracing digital innovation, and strengthening the city's legal foundation to ensure effective development. The mayor also emphasized the potential of satellite cities and the importance of collaboration with the private sector.
Ulaanbaatar's development plan, which stretches until 2050, is currently under preparation. This plan envisions joint economic endeavors and aims to tackle the persistent issue of congestion in the city.
Ulaanbaatar's move to issue capital city bonds reflects its commitment to addressing pressing economic and social challenges. The bonds are expected to play a vital role in financing key projects that will enhance the city's infrastructure, education, and overall quality of life for its citizens.
The current metro area population of Ulaanbaatar in 2023 is 1,673,000, a 1.7% increase from 2022.
The government debt to GDP ratio in Mongolia is expected to reach 58 percent by the end of 2023.
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In First Half of 2023 Foreign Trade Turnover Amounts USD 11.8 Billion www.montsame.mn

In the first half of 2023, Mongolia traded with 143 countries, and the foreign trade turnover amounted USD 11.8 billion, of which exports were USD 7.6 billion and imports were USD 4.3 billion.
Total turnover increased by USD 2.6 billion (27.9 percent), export by USD 2.3 billion (42.5 percent), and import by USD 325.6 million (8.2 percent) compared to the same period of the previous year. In June of 2023, exports increased by USD 88.4 million (7.4 percent) and import by USD 8.6 million (1.1 percent) compared to the previous month.
In the first half of 2023, the foreign trade balance amounted USD 3.3 billion in profit increasing by USD 1.9 billion (2.4 times) compared to the same period of the previous year. According to the National Statistics Office (NSO), this June the profit accounted for USD 472.7 million, increasing by USD 79.8 million (20.3 percent) from the previous month.
Trade with China in the first half of 2023 was USD 8.6 billion, accounting for 73 percent of foreign trade turnover. Hard coal equaled 61.4 percent and copper concentrate accounted for 19.1 percent. Gold made up 99.5 percent of goods exported to Switzerland.
In the first half of 2023, the growth of exports of coal by USD 2.1 billion, oil by USD 162.9 million, canned meat products by USD 82.1 million, fluorspar ore and concentrate by USD 70.8 million, iron ore and concentrate by USD 55.3 million, equine meat by USD 52.2 million affected the increase of exports by USD 2.3 billion compared to the same period of the last year.
In June of this year, the average border price of gold decreased by USD 2.3 thousand per kg, average border price of iron ore and concentrate dropped by USD 15.5 per ton, average border price of coal decreased by USD 7.7 US per ton, and the average border price of copper concentrate increased by USD 0.4 per ton. The physical volume of coal exports reached 5.6 million tons last June, 1.4 million tons more than the previous month, and amounted USD 718.7 million, making increase of USD 139.5 million.
As of the first half of 2023, China accounted for 39.2 percent of imports, Russia 26.6 percent, Japan 8 percent, South Korea 4.6 percent, the United States 3.6 percent, and Germany 2.5 percent, making up 84.4 percent of total imports. Petroleum products accounted for 71.3% of goods imported from Russia, passenger cars made up 72.7% of goods imported from Japan, and trucks – 10% of goods imported from China.
Imports increased by USD 325.6 million compared to the same period of the previous year due to the growth of importation of diesel fuel by USD 128.2 million, trucks by USD 68.4 million, passenger cars by USD 51 million, and bulldozers, ironers, levelers, and excavators by USD 31.5 million respectively.
Exports of mineral products, precious stones, metals, jewelry, and textile products accounted for 94.2 percent of total exports, whilst 77.2 percent of imports were mineral products, machinery, equipment, electrical appliances, transport vehicles, spare parts, basic metals, products thereof, and food products.
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Xanadu makes electric connection in Mongolia www.thewest.com.au

Xanadu Mines has revealed its massive Mongolian copper-gold Kharmagtai deposit is now connected to the local electric grid, paving the way for current and future construction and exploration activities.
The company says its vital 35,000-volt connection to the Mongolian Southern Electricity Distribution Network is expandable and will accommodate Kharmagtai moving closer towards operational mine status. It also satisfies the needs of the current prefeasibility Study (PFS), exploration activities and current constructions, which include a modern 30-person accommodation block for an expanded workforce, a high-tech core shed, a drinking water filtration system and a greenhouse run by locals.
The company is demonstrating its commitment to being a leader in environmental, social and governance (ESG) objectives by converting from diesel-generated power, reducing plastic waste with an in-house filtration system and growing greenhouse-generated produce.
These upgrades clearly demonstrate Kharmagtai moving from an exploration project into the near-term construction stage. By connecting to the grid mine …(it) will enable us to meet electricity requirements for construction as well as the current studies stage … and deliver a modern, contemporary, low-impact and long-life copper-gold into the Mongolian economy.
Xanadu Mines executive chairman and managing director Colin Moorhead
The company is on track to produce a PFS resource update for its 50 per cent-owned and operated Kharmagtai project by year’s end after completing two phases of infill drilling. It shares the project with its joint venture partner, Chinese copper giant Zijin Mining Group.
Kharmagtai already hosts an impressive mineral resource estimate of 1.1 billion tonnes for 3 million tonnes of contained copper and 8 million ounces for 3.3 million ounces of contained gold, while remaining open along strike and at depth. A scoping study revealed a potential US$630 million (AU$975.2 million) net present value for a 30-year mine producing 50,000 tonnes of copper and 110,000 ounces of gold annually.
Exploration drilling is also continuing at Kharmagtai with two diamond rigs. The company expects to provide additional shallow results from the work, in addition to its maiden deep-drilling assays, as soon as next month.
Earlier this year, Xanadu completed its strategic partnership with Zijin, giving it access to funding for its current round of exploration and the PFS. The PFS will include an upgraded mineral resource and maiden ore reserve, incorporate metallurgy-processing-mining technology studies, mine design and engineering.
It will lead to a final investment decision by end of next year, with a view to first production at the end of 2027.
With all motors whirring upon Xanadu’s key electrical connection to the Mongolian grid, an expanding portfolio of construction activities and a pending mineral resource estimate update expected early next quarter, the company is rightfully commanding sedulous shareholders’ attention.
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Human anthrax case reported in central Mongolia www.xinhuanet.com

A human anthrax case was reported in the central Mongolian province of Tuv, authorities said Thursday.
The case was confirmed in Mungunmorit soum, an administrative subdivision of the province, by a polymerase chain reaction test, the National Center for Zoonotic Diseases said, adding that the soum has been quarantined indefinitely due to the outbreak.
Anthrax is an infectious disease caused by Bacillus anthracis, a spore-forming bacterium, which occurs naturally in soil and mainly affects livestock and wild animals.
People can get sick with anthrax if they have contact with infected animals or contaminated animal products.
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Remarks of Ambassador Richard L. Buangan on the Occasion of the 247th Anniversary of the Independence of the United States of America www.mn.usembassy.gov

Your Excellency, Deputy Prime Minister Amarsaikhan, Ministers and Representatives of the Government of Mongolia, esteemed members of the Great State Khural, members of the diplomatic corps, friends and colleagues, my fellow Americans:
At long last, welcome to the National Day Reception of the United States Embassy. We gather today, not only to commemorate the 247th anniversary of the independence of the United States of America but to celebrate our two great democracies, the United States and Mongolia.
We gather today to not only pay tribute to this Strategic Third Neighbor Partnership that has only grown stronger in the past 36 years, but also to honor the bonds of friendship between the Mongolian and the American people.
This is indeed a celebration of our freedom.
To echo the words of your great and honored poet Purevdorj, “On the rays of the morning sun, on the two strings of a playing fiddle, on the ground where men breathe freely, independence – I shall proudly proclaim you.”
Our enduring friendship is not just based on our mutual democratic values and shared interests, it is forged with the unyielding determination of our two nations to be free, so we can all share in our common love for life, liberty, and the pursuit of happiness.
Our friendship stands on the shoulders of our people, especially those who defend and keep our democracies strong: our soldiers and peacekeepers, our teachers and first responders, our human rights defenders and business leaders.
The United States will remain committed to ensuring that people-to-people exchanges remain the beating heart of our diplomatic relationship so our youth, our dreamers, inventors, and entrepreneurs can continue to inspire and learn from each other.
The United States will support Mongolia as it continues to tackle global challenges.
For the past 20 years, Mongolian peacekeepers have served in troubled parts of the world, bravely shouldering personal risk in the name of peace. These heroes deserve our support, our gratitude, and our appreciation.
We welcome Mongolia’s expertise and leadership in our fight against climate change, deforestation, and desertification.
We admire the contributions that Mongolia has made towards dialogue and maintaining peace and security in northeast Asia.
Make no mistake, we still firmly believe Mongolia remains a shining oasis of democracy and a model for others in the Indo-Pacific.
To that end, we are committed to supporting the Mongolian people as they build a strong, democratic, and prosperous country today, so the Mongolia of tomorrow will be worthy of the dreams of its children.
The journey is not easy. But we will walk it with you.
To our friends in the diplomatic corps and international organizations, all of you have helped Mongolia through its democratic journey by empowering and enabling Mongolians to achieve success and prosperity on their own.
The United States Embassy is proud to work with you on many of these endeavors, supporting the Mongolian people building a nation that their children will be proud of.
May the words of the poet Purevdorj, the words that proclaim Mongolia’s independence, continue to inspire us all to believe and hope in the power and potential of this great and magnificent country.
As we hear in the words that Mongolians young and old sing every day, “The brilliant people of the brave Mongolia have gained freedom and happiness – the key to delight and the path to success. Long live our glorious country.”
Long live Mongolia indeed.
Thank you very much, God bless Mongolia, God bless the United States of America, and happy belated Independence Day.
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Decisions Made at Cabinet Session www.montsame.mn

During its regular session on August 23, 2023, the Cabinet made the following decisions:
Secondary schools affiliated to six state-owned universities will be re-established based on branch institutions in Ulaanbaatar and local areas
The Government issued a Resolution on measures to take regarding secondary schools affiliated to some state-owned universities in order to diversify and develop secondary schools in particular areas, clarify the status of university-affiliated secondary schools, reorganize them, reduce school load, and increase accessibility.
According to the Resolution, secondary schools affiliated to six state-owned universities will be re-organized based on branch institutions in Ulaanbaatar and local areas, and policies and activities will be implemented to strengthen the gymnasium or secondary school system by implementing comprehensive measures.
Thus:
- The status of secondary schools affiliated to the state-owned universities will become definite.
- Secondary schools, affiliated to some state-owned universities, will create educational services that meet the demands of students with in-depth natural science content.
- It will become possible to train citizens with scientific knowledge and a desire to conduct research who meet the basic requirements for training engineers, teachers and other specialists with knowledge and skills in the natural sciences necessary for the country's economic priorities.
- It will become possible to count the content acquired from a specialized secondary school for admission to a university or a college. In connection with the above decision, the Minister of Education and Science L. Enkh-Amgalan was instructed to take comprehensive measures to compile and enhance teaching human resources, provide teachers and employees with work places and rotate them, develop programs of secondary schools under universities in conformity with international standards, and create a stage-by-stage system of secondary and higher education programs.
The system of technical and vocational education training institutions will be updated
A Government Resolution on the measures to take in respect of some state-owned higher educational institutions, and technical and vocational education training institutions is in the process of issuance.
· Improve governance and training quality of local vocational and polytechnic colleges.
· Transfer students of some major professional programs of universities to the countryside by a joint program in a stage-by-stage manner.
· Implementation of training, research, and industrial internship cooperation with branch schools of local polytechnic colleges and universities.
· Implementation of a system of compensating credit hours when students in agricultural and engineering programs of polytechnic colleges continue to study at a university.
· Establishment of an Agricultural interdisciplinary internship base for technical and vocational education, and higher education.
· It is estimated to result in the increase of opportunities to study leading fields in rural areas.
The National Education Council was established
With the establishment of this Council, conditions for sustainable implementation of the collective accountable education policy ensuring the participation of the state and the public, sustainable implementation of the educational policy of shared responsibility, implementation of public-private partnership and inter-sectoral coordination, fulfillment of human rights and freedoms, and implementation of training contents, programs, plans, and textbooks that cherish democratic and humanistic ethics. The Prime Minister of Mongolia will chair this Council.
Information technology services will be performed by the private sector and non-governmental organizations
The Resolution "On the measures to take regarding the implementation of information technology services by the private sector and non-governmental organizations" was approved.
The Minister of Digital Development and Communications was tasked to approve and implement the criteria for placing products and services in the "National Software Supermarket" /Mindgolia/ system, and the Minister of Finance was instructed to create the conditions for purchasing from the system, and coordinate with the procurement digital system specified in the Law on the Purchase of Goods, Works and Services with State and Local Property Funds.
Brief news:
· A five-year special permit for the construction of the basic structure for the Mongolian-Chinese "Gashuunsukhait-Gantzmod" cross-border railway was granted to "Tavantolgoi Railway" LLC.
· The Draft Law on the Ratification of the "Global Convention on the Recognition of Qualifications concerning Higher Education 2019" was discussed upon and decided to be submitted to the Parliament.
· The Cabinet discussed and approved the Guidelines for the representatives of Mongolia to participate in VII Session of the Mongolia-United States Joint Trade and Investment Committee to be held on August 29, 2023 in Ulaanbaatar.
· The 1994 Convention on Nuclear Safety, 1997 Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management, 2005 Amendment to the Convention on the Physical Protection of Nuclear Material, and the Safeguards Implementation Guide for States with Small Quantities Protocols were discussed and supported by the Cabinet. It was decided to consult with the related Standing Committee of the State Great Khural.
· Procedures for developing and approving performance plans for full-time civil servants, and evaluating performance, results, and qualification levels were approved.
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Mongolia Successfully Hosts 2023 East Asian Youth Games www.montsame.mn

“Ulaanbaatar 2023” East Asian Youth Games were successfully organized in Mongolia for the first time from August 16 to 23, 2023, in 12 categories of 11 sports. The Closing Ceremony was held at the Sukhbaatar square on the last day of the Games.
The People’s Republic of China topped the medal tally with 89 medals - 38 gold, 32 silver, and 19 bronze, followed by Japan, South Korea, and Chinese Taipei.
Mongolia rounded off the 2023 East Asian Youth Games in fifth place with 44 medals, including three gold, 13 silver, and 28 bronze.
“Mongolia successfully hosted the biggest regional youth games for the first time. For our country, sports play a significant role in developing friendly relations and stable cooperation with East Asian countries, the world leaders in economy, society, and human development. Through sports, we can promote Mongolian culture and traditions abroad. Therefore, the Government of Mongolia is committed to supporting youth sports,” highlighted B. Bat-Erdene, Member of the State Great Khural and Head of the State Committee for Physical Education and Sport.
The East Asian Olympic Committee unites nine National Olympic Committees. This year, more than 880 athletes from seven National Olympic Committees competed in the "Ulaanbaatar 2023" EAYG, testing their skills and power for eight days. The EAYG brought together over 1,200 volunteers, 226 coaches, 123 technical and referee representatives appointed by Asian sports federations, and 191 national judges and technical staff.
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Railway in route Shiveekhuren-Sekhe port to be put into operation next quarter www.gogo.mn

As part of the Mongolian Government's New Revival Policy, goals to fully connect border ports with railways and paved roads in stages, improving the competitiveness of transport and logistics, improving freight traffic, and creating the basic conditions for becoming a transit country in the future have been set.
In this framework, the construction of a 7.1 km railway connecting the Mongolian port Shiveekhuren with the Chinese port Sekhe started in May.
According to the plan, the construction of the railway will be put into operation in the fourth quarter of this year. When the port is into operation, the coal export through Shiveehuren port will be doubled, and it will be possible to export 20-25 million tons of coal per year.
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Rio Tinto inks agreement with Madagascar government on QMM operations www.mining.com

Rio Tinto (ASX: RIO) announced Wednesday it has reached an agreement with the government of Madagascar on future fiscal arrangements for QIT Madagascar Minerals (QMM) and renewed their partnership for its sustainable operation.
QMM extracts ilmenite – an industrial whitener – from mineral sands near the town of Taolagnaro. QMM is 80% owned by Rio Tinto and 20% owned by the Madagascar government.
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Last year, at its annual general meeting in London, investors questioned Rio repeatedly about the Madagascar mineral sands operation after a 2019 study found water downstream contained high concentrations of uranium and lead, potentially endangering local residents who depend on a nearby lake and river for drinking water.
QMM had to release water from the mine site into the surrounding environment due to unusually heavy rainfall in the first months of 2022. Dead fish were found after the water release, but the company’s tests on the fish found no signs of toxicity or contamination with heavy metals.
Madagascar media reported that communities living near QMM had protested at a nearby town hall and that the water ministry was investigating the water release.
Chairman Simon Thompson said at last year’s AGM that Rio was planning a water treatment plant and developing clean water projects for the communities around the mine.
The miner has invested $1 billion in QMM since the first agreement in 1998. While the agreement remains in place for the duration of QMM’s mining activities, the fiscal component was subject to renegotiation after 25 years.
The new agreement will enhance the benefits received by the people of Madagascar and support a sustainable future for the QMM mine, providing certainty for Rio Tinto on the fiscal arrangements, the company said.
Under the terms of the agreement, there will be an increase in the royalty rate from 2% to 2.5%, and QMM will issue its first dividend to the government of Madagascar in 2023.
A $12 million dividend will be invested by the government in the 109-kilometre rehabilitation project of the National Road 13 (RN13). Rio Tinto will also contribute up to $8 million to the road. The project will bring significant improvement to the region by facilitating the movement of people and critical supplies to hard-to-access areas.
Rio Tinto has agreed to cancel $77 million in advances made to the government of Madagascar to finance their funding of QMM. The state will now hold a 15% free carry ownership of QMM and maintain its 20% voting right, with no obligation to contribute to capital funding or exposure to dilution.
QMM will also increase support for local communities by doubling its annual contribution to fund programs of interest.
“Rio Tinto is committed to the responsible development of its mineral sands extraction business in Madagascar,” Rio Tinto iron and titanium managing director, Sophie Bergeron said in the statement.
“This agreement is a significant milestone to support a long-term future for QMM and reaffirms our commitment to provide increased benefits for all parties, including the communities of Madagascar.”
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Between China and Russia, Mongolia Stays Defiant – For Now www.thediplomat.com

The prime minister of Mongolia just visited Washington, D.C. – and no other country in our region is doing that right now. For Mongolia, it’s business as usual, because Mongolia is a functioning democracy and strategic partner to the United States. But this business as usual cannot be taken for granted.
Mongolia has a rather unique foreign policy called the Third Neighbor Policy. Having only two physical neighbors, China and Russia, the basis of this policy is to actively engage with countries beyond them – chief among them the United States.
Predictably, Russia and China have always been skeptical of the Third Neighbor Policy, to say the least. Under platitudes such as “friendship” and “eternal neighbors,” China and Russia have undermined, suppressed, and even attempted to sabotage Mongolian foreign policy in the past.
One key factor is that Mongolia, alone among the Central Asian countries, has demonstrated its commitment to a functioning democratic system. To save our democracy, Mongolia has no choice but to venture beyond our two geographical neighbors.
For its part, the United States has made no secret of the fact that its outreach to Mongolia is strategic. Investment and aid to Mongolia is designed to counter Russia and China’s dominance and support Mongolian sovereignty and security.
Mongolia and the United States established formal diplomatic relations in 1987; over the past three decades, Mongolia has been a reliable diplomatic partner of the United States. Although not widely known, Mongolia has been working with the U.S. on strategic issues for a long time now. Mongolia is one of NATO’s nine “global partners,” along with formal U.S. allies like Australia, Japan, and South Korea. Mongolia also actively engages in U.N. peacekeeping missions.
Starting in 2003, Mongolia contributed close to 1,200 troops to Iraq and 6,000 troops in Afghanistan, both U.S.-led wars. Almost 10,000 Mongolian peacekeepers have also served in South Sudan and elsewhere in Africa. For a country of only 3.5 million people, this is a tremendous commitment.
Now is the time to elevate cooperation at all levels. The United States should boost major investment and technology support that can strengthen the Mongolian economy. Without a sizable commercial and trade backbone, the bilateral relations could yield under pressure from Russia and China.
Prime Minister Oyun-Erdene Luvsannamsrai’s visit to Washington was an act of defiance. At a time when no leader of another Central Asian country has visited the United States in over five years, Mongolia is charting its own path. Thus Mongolia could serve as a model for engagement with the United States in the region.
Yet, when it comes to underpinning the bilateral relations with increased commerce and investment in Mongolia, the U.S. is seriously lagging behind.
In the past decade, Mongolia’s trade with China reached $85 billion; trade with Russia amounts to $17 billion. In comparison, trade with the United States was worth only $2.6 billion, over 30 times less than China-Mongolia trade. Even when the U.S. is trading with Mongolia, it is heavily imbalanced. In 2022, for example, Mongolia imported $375 million worth of goods from the United States, while exported goods were almost 30 times less than imported goods – only $12.7 million.
Understanding the strategic importance of bilateral trade, nine members of the U.S. House of Representatives have introduced a trade bill that aims to provide an import tariff waiver for Mongolian cashmere. Although the bill has been reintroduced now three times, it is going nowhere – mostly bowing to U.S. domestic sentiment against free trade.
When the situation is like this, it is hard to tell how long Mongolia could continue to stay defiant and fulfill its role as a strategic partner of the United States. Democracies function only when the people prefer democracy over authoritarianism. If the citizens of authoritarian countries are financially thriving, there is a risk of Mongolians finding Russian and Chinese economic and governance systems more enticing.
Exactly 20 years ago, Mongolia started to host a multinational peacekeeping operations exercise, Khaan Quest. Over the years, it has become an important platform for the armed forces of various countries to work together and learn from each other.
In this year’s Khaan Quest, militaries of 26 countries – including the U.S., Indian, and Chinese armies – trained together and befriended each other. U.S. Ambassador Richard Buangan excitedly noted that “militaries from the U.S. and China played a friendly game of basketball against a beautiful Mongolia backdrop.” This is not happening anywhere else in the world.
Mongolia is always ready to lend our “beautiful backdrop” to advance global peace and the rules-based international order. But we need the U.S. support to keep this backdrop free and democratic.
GUEST AUTHOR
Bayarkhuu Dashdorj
Professor Bayarkhuu Dashdorj is an adjunct foreign policy adviser to the prime minister of Mongolia. He is one of the most well-known columnists in Mongolia and previously served as an ambassador to Egypt. The views expressed in this article are his own.
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