Nearly 82 pct of Mongolia's total territory affected by desertification, land degradation www.xinhuanet.com

At least 81.9 percent of Mongolia's total territory has been affected by desertification and land degradation to some extent, according to a new national assessment released by the country's Ministry of Environment and Climate Change on Wednesday.

Since Mongolia's first desertification map was developed in 1989, national-level assessments have been conducted periodically, the ministry said. The newly updated atlas represents Mongolia's sixth national assessment of desertification and land degradation, based on data collected between 1991 and 2025.

The revised assessment was released ahead of the upcoming 17th session of the Conference of the Parties (COP17) to the United Nations Convention to Combat Desertification (UNCCD), which will be held in Ulan Bator, the national capital, from Aug. 17 to 28.

According to the assessment, 81.9 percent of Mongolia's territory has experienced desertification and land degradation to varying degrees. Of the country's total territory, 0.9 percent is classified as experiencing very severe desertification and degradation, 6.2 percent as severe, 42.9 percent as moderate, and 31.9 percent as slight degradation.

The remaining 18.1 percent showed no signs of desertification or land degradation.

Meanwhile, the assessment found that the impacts of climate change in Mongolia are intensifying, while land degradation, water scarcity, changes in vegetation cover and pressure from livestock grazing continue to increase.

The assessment found that Mongolia's annual average air temperature increased by 2.5 degrees Celsius between 1941 and 2025, while drought intensity showed an increasing trend across 53.5 percent of the country's territory. Some 54.8 percent of the country's territory is at risk of water erosion, while 34.3 percent is vulnerable to wind erosion. A declining trend in soil moisture was detected across 93.3 percent of Mongolia's territory, while vegetation productivity has decreased across 22.3 percent of the country.

The findings indicate that desertification and land degradation in Mongolia are being driven not only by natural factors but also by the combined impacts of climate change and human activities.

The scientific publication will also serve as one of the official documents to be presented internationally during the COP17 of the UNCCD, the ministry said.

The helicopter that helped topple Mongolia’s prime minister linked to Lex Oil scheme www.eureporter.co

The helicopter at the centre of the scandal which led to the resignation of Mongolia’s then Prime Minister, Luvsannamsrain Oyun-Erdene, was owned and operated by a company linked to the $1.1 billion Lex Oil fraud.

In May 2025, the fiancée of Oyun-Erdene’s son, Temuulen, posted video and photographs of a helicopter arrival and a fireworks marriage proposal on her Instagram. The images led to national protests, and ultimately the loss of a no-confidence vote and resignation from Oyun-Erdene.1

The helicopter in the images which sparked the protests is registered to Alpha Aurora Aviation, a charter helicopter operator founded by VS Oil, one of the fuel-trading vehicles used by the scheme's central figure, Jononbayar Erdenesuren, and his family.2

Alpha Aurora has been marketed as Mongolia's first commercial helicopter operator.3 It manages a fleet of seven Airbus helicopters for tourism, corporate and VIP travel from a private heliport in Ulaanbaatar.4 It was founded by VS Oil in 2023.5 Jononbayar Erdenesuren himself was reported, in a now-archived article, to frequently travel to a tourist camp in Mongolia on flights handled by the charter company.6

VS Oil sits alongside Lex Oil in the family-controlled fuel network central to the scandal.7 It was founded by Dashnyam Chinbat, husband of Jononbayar's aunt Dorjgochoo Erdenetuul,8 who owned Lex Oil until it passed to Chinbat, its current sole beneficial owner.9 VS Oil is itself a corporate shareholder of Lex Oil.10

Alpha Aurora's beneficial owner, and one-time CEO,11 Bataa “Anya” Anarchuluu, sits inside the same network.12 She was previously a director of VS Oil and a co-shareholder, alongside Lex Oil itself, in another network vehicle, Tod Petroleum.13 She co-owns or directs several companies with Jononbayar's mother, Dorjgochoo Erdenesuren.14 Alpha Aurora is not the only aviation venture tying Anya to the family: she was also the director of Mongolian Airways Aviation, a company owned by Jononbayar's aunt, Erdenetuul.15

Alpha Aurora Aviation also links the scheme to foreign entities beyond Mongolia. Its CEO and former COO,16 the British aviation consultant David Edwards, runs a consultancy that lists both Alpha Aurora and APEXPP Commodities as clients.17 APEXPP’s ultimate beneficial owner is Banzragch Batdavaa,18 a former senior officer and executive director of Lex Oil,19 who co-owns a further business with Jononbayar’s mother.20 Edwards is executive director of Cygnus Global, a Singapore-registered company that markets jet fuel and aviation services for Mongolia.21 On 30 July 2026 Cygnus announced it would fold Edwards Aviation Consultants and Alpha Aurora into a new “Cygnus Global – Aviation” division, although legal ownership of the company has not changed at the time of writing.22

Mongolia's Anti-Corruption Agency found that the flight taken by Temuulen on the Alpha Aurora helicopter fell under a charter contract signed between Hero Entertainment and Alpha Aurora for film location scouting.23 Hero Entertainment, whose credits include the international stage production ’The Mongol Khan’,24 is 50% owned by Temuulen's father, the then Prime Minister Oyun-Erdene.25

1 ‘Mongolia PM resigns after son's luxury holiday stirs public fury’, BBC News, 3 June 2025: https://www.bbc.co.uk/news/articles/c5yg8dxv5w9o; TIME, ‘Why Mongolia’s Prime Minister Oyun-Erdene Resigned’, 3 June 2025: https://time.com/7290686/mongolia-prime-minister-oyun-erdene-luvsannamsrain-resigns-protests-corruption-son/

2 The helicopter (JU-6777) shown in the girlfriend's Instagram posts. Screenshots of the original posts are available to view at: https://ikon.mn/n/3elf. JU-6777 is confirmed as an Alpha Aurora aircraft: https://www.graph.mn/news/2817. Alpha Aurora Aviation was founded on 16 June 2023 by VS Oil: https://opendatalab.mn/search/8376344. VS Oil (Ви Эс Ойл, reg. 6225578)is a corporate shareholder of Lex Oil https://opendatalab.mn/search/5623979, and is named as a scheme vehicle in Mongolian investigative media https://ergelt.mn/news/22/single/40012.

3 Described as “Mongolia’s first helicopter operator” in Heliops article: https://www.heliopsmag.com/heliops/articles/breaking-new-ground-mongolias-first-commercial-helicopter-operator/

4 Alpha Aurora Aviation’s website: https://alpha-avia.com/, and an interview with David Edwards: https://www.heliopsmag.com/heliops/articles/breaking-new-ground-mongolias-first-commercial-helicopter-operator/

5 The founding shareholder was VS Oil, which registered as shareholder on 20 June 2023: www.opendatalab.mn/search/8376344

6 Jononbayar's use of Alpha Aurora helicopters to reach his camp in Uvs province was reported in a now removed article from 2024.: https://web.archive.org/web/20241113103634/https://reelnews.mn/a/1225

7 Both companies listed as part of the scheme: https://ergelt.mn/news/22/single/40012.

8 Reporting by Reuters confirming the family relationship: https://www.reuters.com/markets/commodities/aunt-trafiguras-mongolia-boss-ran-main-partner-firm-2025-03-25/

9 Erdenetuul owned Lex Oil until 2023. Lex Oil full corporate record: https://opendatalab.mn/search/5623979.

10 Ownership history of VS Oil: https://opendatalab.mn/search/6225578 and https://opendatalab.mn/search/826874?model=CFounder. VS Oil was a corporate shareholder of Lex Oil in 2019: https://opendatalab.mn/search/5623979

11 Bataa was named as CEO in now archived Instagram posts, shared by AAA’s account. The posts are available in cache through this google search. Original post URLs were: www.instagram.com/p/Cw4XAPryRCT/ and www.instagram.com/p/Czc_kyIBEQp

12 Ownership and full corporate record of Alpha Aurora confirming Bataa Anarchuluu as beneficial owner: https://opendatalab.mn/search/8376344

13 Co-shareholder alongside Lex Oil in Tod Petroleum (Bataa from 2020-10-20; Lex Oil corp from 2019-12-27): https://opendatalab.mn/search/6104894.

14 Companies owned/directed include Commodity Trans (co-owner with Erdenesuren in 2020): https://opendatalab.mn/search/6468365 and Ashid Nandin (co-owner with Erdenesuren 2020/21): https://opendatalab.mn/search/6605982

15 Mongolian Airways Aviation director from 2023-04-19, under Erdenetuul's ownership: https://opendatalab.mn/search/6894941

16 Referred to as CEO in July 2026 Heliops article: https://www.heliopsmag.com/heliops/articles/breaking-new-ground-mongolias-first-commercial-helicopter-operator/; and company Instagram posts referring to him as COO: https://www.instagram.com/p/C48T41aoEP1/

17Edwards Aviation Consultants, client list: https://edwardsaviationconsultants.co.uk

18 LinkedIn profile of Banzragch Batdavaa showing UBO/director role at APEXPP Commodities DMCC from February 2021: https://mn.linkedin.com/in/batdavaa-banzragch-46120115a.

19 Listed as Executive director of Lex Oil: https://opendatalab.mn/search/5623979 and described as CEO on his LinkedIn.

20 NBG King Mongolia co-owned by Erdenesuren and Batdavaa: https://opendatalab.mn/search/1117110

21 Edwards’ LinkedIn: https://sg.linkedin.com/in/david-edwards-b0b70b187; https://rocketreach.co/david-edwards-email_376686082

22 Announcement made 30 June via Cygnus Global’s Instagram: https://www.instagram.com/p/DbYXJJdPVmR/. AAA’s ultimate beneficial owner remains Bataa Anarchuluu, per Mongolian corporate databases: https://opendatalab.mn/search/6225578

23 Авлигатай тэмцэх газар / Anti-Corruption Agency of Mongolia, official reply available at: https://i.postimg.cc/NFyDFsWk/524543039-10239378643272260-820441282862761709-n.jpg and https://i.postimg.cc/3NPBvMh5/524849034-10239378643392263-8293872003460448013-n.jpg. Also reported in Mongolian press: https://www.graph.mn/news/3404

24 Shown as production credit and production contact on official website footer: https://themongolkhan.com,

25 Shareholding shown on Hero Entertainment’s official state records: https://opendatalab.mn/search/6163882

Bagakhangai–Khushig Valley–Emeelt Railway to Open Next Month www.montsame.mn

At a Cabinet meeting on August 12, Prime Minister Uchral Nyam-Osor instructed Minister of Road and Transport Delgersaikhan Borkhuu to accelerate the 214.9-kilometer Bagakhangai–Khushig Valley–Emeelt railway project, improve coordination among relevant sectors, and ensure unified project management.

As the railway is scheduled to become operational next month, authorities will expedite the clearance of land occupied by individuals and businesses within the railway right-of-way, relocate affected structures, and protect or relocate power transmission and distribution lines and substations.

The railway will branch off from Bagakhangai Station and run through Khushig Valley in Sergelen soum and Altanbulag soum of Tuv aimag before connecting to Emeelt Station.

The project is being implemented in two phases by the Mongolian Railway state-owned company.

Construction of the 87.8-km railway from Bagakhangai Station to Khushig Valley, which began on April 25, 2025, including bridge structures at five locations and culvert works, has been completed 100 percent, while installation of the railway superstructure is 86.6 percent complete.

Earthworks on the section connecting Khushig Valley to Emeelt Station, which began in 2026, are 48.2 percent complete.

According to the Government Press and Public Relations Department, 95 domestic companies and more than 4,000 engineers and technical workers are involved in the project. The project plans to construct 127.1 kilometers of mainline track for Class III freight and passenger transportation, along with three passing loops and four stations, for a total track length of 177.4 kilometers.

Mongolia's Central Bank Tightens Monetary Policy: Key Rate Increased to 12.5% www.open.kg

On August 12, 2026, the Central Bank of Mongolia (Bank of Mongolia) decided at an extraordinary meeting to raise the key interest rate by 50 basis points, increasing it from 12.0% to 12.5% per annum. This change marks the first step towards tightening monetary policy since March 2025, indicating the need to respond to the prevailing economic conditions, according to MongolianNews.

In addition, to address the excess liquidity in the banking system, the regulator increased the reserve requirement ratio on tugrik deposits by 0.5 percentage points, setting it at 14.5%.

Factors influencing the decision:

Increased inflationary pressure: As of July 2026, the annual inflation rate in the country reached 13%, exceeding the Central Bank's target range. Key factors contributing to rising prices include fluctuations in fuel and food prices, as well as government-regulated tariffs.

Risks and secondary effects: Core inflation shows moderate growth. Supply issues with petroleum products and shocks in the fuel market create risks of cost pass-through to final prices of goods and services.

Global challenges: Geopolitical tensions continue to affect global energy prices. In the context of high interest rates maintained by major central banks, the Bank of Mongolia is compelled to act to protect assets in the national currency.

Export sector: Rising global prices for coal and copper, along with increased physical exports, positively impact Mongolia's balance of payments and business activity.

Forecast and future monetary policy:

The committee expects that the seasonal increase in the supply of meat and vegetables in August will help slow food inflation. If fuel prices stabilize, annual inflation may return to the target range by mid-2027.

However, the balance of risks remains tilted towards inflationary factors, such as prolonged fuel shortages and imported inflation. The Bank of Mongolia emphasizes that the current decision aims to stabilize inflation expectations and monetary conditions. Future decisions on interest rates will depend on incoming macroeconomic data and changes in internal and external risks.

Korean hospitals expand medical outreach in Mongolia, shift focus to local capacity www.koreabiomed.com

Korean hospitals are expanding their medical outreach in Mongolia, increasingly combining direct patient care with medical training, technology transfer and long-term partnerships aimed at strengthening local healthcare capacity.

Ewha Womans University Executive Vice President for Medical Affairs and EUMC Director Ryu Kyung-ha (seventh from right) poses for a photo with hospital officials during the launch ceremony for the 13th EUMC medical volunteer mission to Mongolia in 2026. (Credit: EUMC)
Ewha Womans University Medical Center (EUMC) recently completed its 13th medical volunteer mission to Mongolia, while Asan Medical Center (AMC) carried out a separate program in the country's northern region focused on cancer care and training local medical professionals.

EUMC dispatched a 14-member team to Mongolia from July 27 to Aug. 2, providing medical care to 1,168 people across five areas, including Darkhan, Sharyngol, Orkhon and Khongor in Darkhan-Uul Province and Bayangol in Ulaanbaatar.

The team was led by Kang Kyung-ho, head of EUMC's International Healthcare Business Division and professor of surgery at Ewha Womans University Seoul Hospital.

Other participating physicians included Kang Duk-hee, dean of Ewha Womans University College of Medicine and professor of nephrology at Ewha Womans University Seoul Hospital; pediatrician Kim Hae-soon; Lee Hui-song, deputy head of EUMC's International Healthcare Business Division and professor of surgery at Ewha Womans University Mokdong Hospital; and Kim Yun-hwan, professor of obstetrics and gynecology at Ewha Womans University Mokdong Hospital.

This year's mission also included a visit to Mongolia's National Center for Maternal and Child Health, which has worked with EUMC since a telemedicine project began in 2016.

EUMC's medical outreach in Mongolia dates back to 2011. Except for the Covid-19 pandemic period from 2020 to 2022, it has sent a medical team to the country every year, treating about 15,000 people over the past 15 years.

"We are proud to have continued meaningful activities in Mongolia for 15 years," Kang said. "Through this overseas medical volunteer mission, we were once again reminded of the values of brotherhood and humanitarianism."

Asan targets long-term medical self-sufficiency

Asan Medical Center's latest program placed greater emphasis on helping local medical professionals diagnose and treat patients independently.

A 16-member team led by Lee Sei-won, professor of pulmonology and critical care medicine, visited the Northern Regional Cancer Center in Erdenet from Aug. 3 to 6.

The team treated about 750 patients over four days and performed about 150 breast ultrasound examinations, 80 abdominal and thyroid ultrasound examinations and six breast biopsies.

Beyond patient care, Asan doctors worked alongside Mongolian physicians on ultrasound examinations, provided advice on breast cancer surgery and conducted biopsies that are difficult to perform locally because of a shortage of specialists.

The team also provided lectures on cancer treatment and nursing, advised on intensive care unit operations and inspected aging medical equipment.

Asan described the group as an "overseas medical cooperation team," rather than a volunteer medical team, to emphasize its focus on sustained exchanges and medical technology transfer.

Border towns bridged by more than a road www.chinadaily.com.cn

Standing at the Erenhot national gate of China, Zamyn-Uud of Mongolia seems to be within reach, as the centers of the two cities are merely 9 kilometers apart. The border is no longer a dividing line, but a thriving channel. Every day, thousands cross Erenhot Port, the busiest land port between China and Mongolia, to buy daily necessities and more. Beyond retail, China and Mongolia are jointly building the Erenhot-Zamyn-Uud Economic Cooperation Zone, spanning roughly nine square kilometers on each side to create a benchmark for cross-border synergy. China-Mongolia ties go far beyond trade — together, the two neighbors are pursuing shared growth and mutual benefit.

Mongolia Uses UN Passenger Data System to Identify Smuggling, Drug Trafficking and Other Border Threats www.hstoday.us

Mongolia’s Passenger Information Unit helped authorities identify suspected smuggling, drug trafficking, money laundering and terrorist financing activity in 2026 as the country expanded its use of passenger data to identify potential threats before travelers reach its borders.

Authorities reported detecting attempted illegal cross-border smuggling valued at approximately MNT 700 billion, or around $200 million, across Mongolia’s border points. The Passenger Information Unit (PIU) also helped identify approximately $10 million in undeclared cash and eight individuals wanted under INTERPOL notices, whose cases were referred to the relevant authorities.

In two separate cases, authorities intercepted over 446 grams of methamphetamine being smuggled into Mongolia. The PIU also supported the identification of attempts to bring unregistered and prohibited medicines into the country concealed in passengers’ carry-on luggage and helped authorities identify a fugitive who had been wanted for 30 years.

The unit was established in December 2023 with support from the United Nations Countering Terrorist Travel Programme.

At the center of Mongolia’s system is the UN-developed goTravel software, which allows the PIU to receive and analyze passenger information supplied by airlines before international flights arrive.

Authorities can use travel routes, patterns and other risk indicators to identify potentially high-risk travelers in advance, while passenger information can also be compared against national and international watchlists. The system facilitates information-sharing among relevant government agencies.

The PIU currently receives passenger data from seven airlines representing around 90% of Mongolia’s international commercial air traffic.

Before the system was introduced, Mongolia used passenger data in a more limited and largely manual process. Automating the collection and analysis of that information allows analysts to spend more time assessing potential risks.

Colonel Adiyajav Enkhtur, Head of Mongolia’s Passenger Information Unit, said the approach is intended to focus resources on potential risks rather than subjecting every traveler to additional checks.

“The primary objective of the Mongolian PIU is not to subject all passengers to additional scrutiny, but rather to identify high-risk passengers in advance through intelligence-led risk assessment and to effectively support the operations of competent and law enforcement authorities,” Enkhtur said.

“API and PNR data enables low-risk passengers to move through border controls quickly and seamlessly, enhancing overall efficiency.”

Mongolia’s PIU operates under safeguards covering privacy, data security and human rights. Access to passenger information is restricted to authorized personnel, records are maintained showing how information is accessed and used, and passenger data can only be processed for specified legal purposes.

Mongolia joined the UN Countering Terrorist Travel Programme in 2020. With support from UN partners, the country subsequently developed legislation governing airline passenger data, established the PIU and deployed the goTravel system.

Mongolia’s legal framework was adopted by Parliament in January 2023, followed by the formal inauguration of the PIU in December of that year. The goTravel system became fully operational in January 2025.

The UN programme has also provided training covering passenger data analysis, risk assessment, privacy protections and use of the goTravel platform. Mongolia is now one of seven beneficiary countries operating the UN-developed system.

Led by the United Nations Office of Counter-Terrorism, the Countering Terrorist Travel Programme assists Member States with using Advance Passenger Information and Passenger Name Record data to detect and prevent terrorism and other serious crimes while maintaining human rights and data protection standards.

Mongolia's lost opportunities from copper www.mongolianminingjournal.com

Twenty copper projects that could generate 4.1 trillion MNT in Mineral Resource Royalty (MRR) revenue for the state budget and attract 5.7 trillion MNT in investment have been placed on indefinite hold.

The key to advancing them was a long-awaited amendment to the Minerals Law potentially aligning Mongolia's copper Mineral Resource Royalty (MRR) with international standards, by reducing the tax burden. However, during the bill's first reading, Parliament decided to defer the reduction of the copper Mineral Resource Royalty (MRR) by three years, with the amendment set now to take effect on January 1, 2029.

The decision reportedly stemmed from the Mongolian People's Party (MPP) caucus in Parliament, which argued that no changes should be made to the copper Mineral Resource Royalty (MRR) until a new Investment Agreement is concluded with Entrée Resources, the holder of a mining license at the Oyu Tolgoi deposit.

At a time when global competition for copper investment is intensifying, what will be the consequences of Mongolia retaining its current royalty regime for another three years?

4.14 TRILLION MNT IN ROYALTY REVENUE FROZEN

The projects would have brought copper deposits with geological resources totaling 5.2 million tonnes into production, created 6,986 new jobs, attracted 5.76 trillion MNT in direct investment, and generated 4.14 trillion MNT in Mineral Resource Royalty (MRR) revenue for the state budget.

Of the 20 projects, 87.4% of the total geological resources, equivalent to 4.54 million tonnes of copper, were ready to enter production in 2028, with 5.06 trillion MNT already invested. These included major domestic and foreign-funded projects such as Tsagaansuvarga (1.61 million tonnes), Oyut-Ulaan (512.2 thousand tonnes), New Simin Resources (336.9 thousand tonnes), and Oyu Tolgoi (54.7 thousand tonnes).

The projects expected to enter production in 2028 alone were projected to generate 3.6 trillion MNT in Mineral Resource Royalty (MRR) revenue and create 3,353 jobs. Meanwhile, the future of seven projects scheduled to enter production in 2030, including those of Marco Polo, Galaxy Mining, and AGM Mining, as well as six additional projects planned for 2032, has also been cast into uncertainty.

Ministry of Industry and Mineral Resources' detailed analysis

FLEXIBLE TAXATION

According to the analysis, making the tax system more flexible by aligning the tax burden with international norms, in line with the economic principle of the Laffer Curve, would enable projects to overcome financing bottlenecks and increase Mongolia's copper production by 32% over the next decade.

The increase in actual budget revenue resulting from a more flexible progressive royalty structure is illustrated by the following comparison:

If the current law remains unchanged, Mongolia's copper concentrate production is projected to decline from 2.15 million tonnes in 2026 to 2.01 million tonnes by 2035. By contrast, under the proposed amendments, production would have reached a record 3.32 million tonnes in 2029.

MRR revenue is likewise projected to decline, falling to 1.62 trillion MNT by 2035 if the current law remains unchanged. By contrast, under the proposed amendments, although the royalty rate would be lower, the sharp increase in production volumes would boost MRR revenue to 2.25 trillion MNT in 2029 600 billion MNT more than under the current regime. By 2035, MRR revenue would remain stable at around 1.83 trillion MNT.

Quantitative comparison of how a more flexible royalty rate structure would increase actual budget revenue:

FALLING BEHIND IN GLOBAL COMPETITION

Today, leading copper-producing countries such as Australia, Brazil, and Indonesia maintain stable base Mineral Resource Royalty (MRR) rates of between 2% and 5%.

Chile, the global benchmark for the copper industry, overhauled its Mineral Resource Royalty (MRR) regime in 2024. Companies producing more than 50,000 tonnes of copper annually are subject to a 1% royalty on gross sales revenue. However, if a company operates at a loss in a given year, it is exempt from paying this 1% royalty. In addition, Chile has adopted a flexible, progressive royalty system under which companies pay an additional 8% to 26%, depending on their operating profit.

Chile has gone a step further by capping the combined burden of corporate income tax, withholding tax, and the Mineral Resource Royalty (MRR) at 46.5% of a company's pre-tax profit, providing investors with greater certainty over their future tax obligations.

As a result, Chile generates an additional $1.35 billion in tax revenue each year, of which $450 million is allocated directly to mining regions, local development funds, and infrastructure.

By contrast, Mongolia applies a 5% base Mineral Resource Royalty (MRR), supplemented by a progressive royalty linked to increases in market prices. As a result, the effective royalty rate can rise to as high as 35%. This effectively imposes a royalty burden on international investors that is three to six times higher than that of competing jurisdictions.

The proposed amendments provided that when the market price of copper exceeded $9,000 per tonne, the progressive Mineral Resource Royalty (MRR) on raw ore exports would be reduced from 30% to 15%. The maximum progressive royalty on copper concentrate would similarly reduce from 15% to 5%, while refined copper products would be subject to just 2.5%.

In other words, the proposal used the tax system to discourage the sale of raw ore while providing a clear incentive in the form of MRR relief for domestic producers to manufacture copper concentrate and refined products.

However, with the proposed amendments stalling in Parliament this spring, Mongolia will remain a raw material exporter while retaining, until 2029, a rigid royalty regime that deters investment by imposing a tax burden several times higher than that of competing countries. 

By O.Dulguun

Air China C919 Lands in Mongolia Using Bilateral Airworthiness Workaround www.techtimes.com

Air China flight CA723 — a COMAC C919-100(ER) narrowbody registered B-919Y — touched down at Ulaanbaatar's airport on Wednesday afternoon, completing the aircraft's first-ever scheduled international commercial passenger service. The departure from Beijing Capital International Airport at approximately 3 p.m. local time and the arrival some two hours later were greeted by a water-cannon salute and traditional Mongolian dancers — state media ceremony on its face, but the regulatory mechanism that made the flight legally possible is the more consequential story.

Mongolia's Civil Aviation Authority recognized the Civil Aviation Administration of China's airworthiness standards, allowing C919 operations without Western certification. That bilateral recognition pathway — not EASA or FAA approval — is how COMAC's narrowbody reached its first international destination. The same mechanism was road-tested on a smaller scale from July 2025, when China's C909 regional jet began flying the Hohhot–Ulaanbaatar route, effectively pre-validating that Mongolian aviation authorities would accept Chinese-made aircraft before the far more high-profile C919 followed.

The global system for certifying foreign aircraft has two distinct tracks, and the Mongolia flight operated on the lower-bar one. The FAA bilateral agreements overview explains how this framework functions: under a Bilateral Aviation Safety Agreement or Bilateral Airworthiness Agreement between major regulators — the framework governing how EASA validates a Chinese-designed aircraft, for example — the receiving authority runs its own independent technical evaluation of the aircraft's design, reviews flight test data, and may conduct its own test flights before issuing validation.

What Bilateral Airworthiness Recognition Actually Does — and Doesn't Do
That is the process currently underway between EASA and COMAC. EASA Executive Director Florian Guillermet stated in April 2025 that C919 approval would take years — specifically three to six more — placing EASA certification no earlier than 2028 and potentially as late as 2031.

What Mongolia did is different. Mongolia's civil aviation authority recognized CAAC standards directly — effectively saying that if the CAAC has certified an aircraft as airworthy, that determination is accepted in Mongolian airspace without the country conducting its own technical review. That is a much lower threshold, and it is available only to countries that have bilateral civil aviation frameworks recognizing CAAC authority — generally China's neighboring states, Belt and Road partners, and countries without EASA or FAA affiliation. Scott Kennedy, a senior adviser at the Center for Strategic and International Studies who focuses on Chinese business and economics, called it a PR move, noting that Ulaanbaatar was chosen primarily for its proximity to Beijing and that the route "doesn't change the fact that the plane was years overdue, is composed of Western components, and is less efficient than its Boeing and Airbus cousins."

COMAC and Chinese aviation analysts frame the same mechanism more optimistically. Analysts cited by China Business News noted that bilateral recognition shows non-EASA pathways exist for Chinese-made jets to operate internationally. That framing is accurate — but it describes a route into specific markets, not a route into the global aviation market. The countries that can accept C919 flights through bilateral CAAC recognition are a politically and geographically defined subset. Airlines in Europe, North America, Japan, South Korea, Australia, and the many Southeast Asian nations that require FAA or EASA certification for foreign aircraft cannot operate the C919 until EASA validation is complete. Malaysia Airlines has been evaluating the C919 and awaits EASA approval before considering adoption.

Why Air China Chose Mongolia — and What Comes Next
The route selection was deliberate on every dimension. The Beijing–Ulaanbaatar approximately 1,378 km sector is a roughly two-hour flight — a roughly two-hour flight that stays well within range of COMAC's existing Chinese maintenance and technical support network, which means the aircraft is never far from home base if a technical issue requires attention.

Air China previously operated a Boeing 737 MAX 8 on the daily service; the C919 replaced a 737 MAX, making this the first documented instance of a Chinese carrier substituting a COMAC-built aircraft for a Western type on a scheduled international revenue route. The daily CA723/CA724 rotation will now give COMAC something it has never had: operational data from international service — turnaround times at a foreign airport, international ground-support requirements, crew handling of immigration and customs coordination for a non-domestically certified aircraft.

COMAC's broader strategy is legible from this step. The C909 regional jet has already been placed with VietJet in Vietnam and Lao Airlines, and COMAC has established regional offices across Southeast Asia in Hong Kong, Singapore, and Jakarta. The manufacturer's stated near-term expansion targets are Southeast Asian and Central Asian markets — precisely the non-EASA-affiliated jurisdictions where bilateral recognition of CAAC standards is feasible. Vietnam's civil aviation regulations explicitly list CAAC among the acceptable certification authorities for foreign aircraft imports, alongside FAA, EASA, and a handful of others. Each international bilateral recognition the C919 earns is, in structural terms, one link in a chain that COMAC is building toward the point at which the aircraft's operational track record becomes strong enough to support the EASA validation case.

What the Production Numbers Reveal
The Mongolia milestone lands against a production backdrop that independent analysts describe as deeply misaligned with COMAC's publicly stated ambitions. IBA aviation intelligence forecasts approximately 25 C919-specific deliveries in 2026, rising to roughly 45 in 2027, and potentially reaching 90 per year by 2030. COMAC's own stated targets are dramatically higher: 100 aircraft in 2026, 150 in 2027 and 2028, and 200 per year by 2029, per COMAC's March 2025 conference. The gap between those numbers — IBA's 25 versus COMAC's 100 in 2026 alone — is not a rounding difference. It reflects structural manufacturing constraints that a single ceremonial flight to Ulaanbaatar does not address.

COMAC delivered approximately 15 C919s in 2025 against an initial target of 75. A five-week suspension of U.S. export licenses covering the LEAP-1C engine supply chain in May 2025 disrupted the production schedule before the restriction was lifted in July. That episode demonstrated the program's structural dependence on American components: the LEAP-1C is a joint product of GE Aerospace and France's Safran, and its export to China is subject to U.S. Department of Commerce licensing. China's Aero Engine Corporation of China (AECC) is developing a domestic replacement, the CJ-1000A, but AECC's domestic engine certification is not expected before 2027 and meaningful production not until around 2030. The CJ-1000A program remains years from production readiness.

For context on scale: Airbus planned approximately 700 total A320-family deliveries in 2026. IBA's 2026 narrowbody forecast for Boeing stands at roughly 510 737 MAX jets annually. IBA forecasts that even at its 2030 peak, the C919 will constitute only approximately 2% of the global narrowbody fleet, with about 65% of new narrowbody deliveries to Chinese operators. Globally, COMAC remains a niche participant.

Performance Gap: C919 vs. Its Western Rivals
Even inside China, where the C919 operates under favorable conditions and with full government support, C919 utilization trails Western rivals. As of mid-2025, C919s averaged 5.9 flight hours per day — compared to 8.1 hours for Boeing 737 MAX aircraft and 8.4 hours for Airbus A320neo jets operating in China. That utilization gap — roughly 30% below the aircraft's direct competitors on their home turf — reflects both the immaturity of the C919's maintenance network and the caution Chinese carriers are exercising while accumulating operational confidence in a new platform. That gap matters because it is what an airline's finance team evaluates when it models the true per-seat operating cost of an aircraft: a jet that flies fewer hours per day generates proportionally less revenue against the same fixed ownership cost.

Range is a separate structural limitation. The C919 carries far less fuel than the Airbus A320neo — approximately 6,000 liters — translating to a range of up to 5,555 km (3,452 miles) versus the A320neo's approximately 6,300 km (3,915 miles) in standard configuration. On medium-haul routes that the A320neo handles comfortably, the C919 operates closer to its design ceiling.

On capacity, the C919 seats 158 to 174 passengers depending on configuration — comparable to the smaller A319neo rather than the A320neo (typically 150-194 passengers), which can limit its economics on high-density routes.

No independent third-party dispatch reliability audit of the C919 has been published as of August 2026. The only non-official reliability signal in the record is an unauthenticated complaint letter reportedly from China Southern's engineering division, dated May 2026, which alleged multiple technical defects including oil leaks, fire detection issues, and anti-icing valve failures on newly delivered aircraft. China Southern completed its first C-check of a C919 in late May 2026 with Chinese official media reporting all data compliant; no CAAC airworthiness directives have been issued.

State Ownership, Legal Obligations, and What That Means Internationally
COMAC is a Chinese state-owned enterprise controlled by the PRC government through SASAC and the Ministry of Finance.

That ownership structure has two consequences for international operators considering the C919. The first is strategic: COMAC's production priorities, technology roadmap, and partner decisions are subject to government direction. China's 14th Five-Year Plan explicitly listed C919 output and supply-chain resilience as national strategic priorities. The state that mandates Chinese carriers to fly domestic aircraft on certain routes also sets COMAC's agenda.

The second consequence is legal. Under China's National Intelligence Law (2017), Article 7, all organizations and citizens — including state-owned enterprises — must support, assist, and cooperate with national intelligence efforts and protect the secrets of that work. The Data Security Law (2021) similarly requires PRC entities to obtain government approval before providing data stored in China to foreign judicial or law enforcement institutions. These obligations apply to COMAC as a PRC entity regardless of where its aircraft operate, what data its aircraft systems generate, or what agreements it signs with foreign carriers. International airlines deploying the C919 on overseas routes should understand that any data flowing through COMAC-linked systems — maintenance telemetry, operational parameters — falls within the scope of these legal frameworks. This is structurally different from the risk posed by a commercial software vendor; it is the legal condition of purchasing infrastructure from a company that operates under the PRC's intelligence cooperation mandate.

Weighing the Decision to Fly or Order C919
For airlines in China's geographic and diplomatic neighborhood evaluating whether to fly or order the C919, today's Mongolia flight changes the calculus at the margins — one more data point in a still-thin operational record.

The case for the aircraft: government-backed pricing, available delivery slots in a market where Airbus and Boeing backlogs stretch years into the future, and a strategic alignment with China's economic relationships that certain carriers actively value. AirAsia has confirmed active negotiations with COMAC; Vietnam's VietJet has already taken C909 deliveries. For those airlines, the C919 is less a gamble on a new manufacturer than an extension of an existing supplier relationship.

The case against: EASA certification will not arrive before 2028 at the absolute earliest and could stretch to 2031, which means any airline operating the C919 cannot deploy it on routes to Europe or most of the developed world. The aircraft's operational metrics remain well below its Western competitors on their home turf. The supply chain has already demonstrated its vulnerability to American export control decisions. And independent maintenance, reliability, and fuel-burn data — the numbers airlines actually use to model fleet economics — remain almost entirely absent from the public record.

Zhang Yanzhong, an aviation expert at the Chinese Academy of Engineering who worked on the C919, acknowledged in a recent interview with Chinese state media that dependence on foreign aircraft technology would threaten China's national strategic security — while also noting there remains "a long path ahead" before the C919 achieves genuine commercial success on the global stage. That assessment, from inside the program, is the most honest summary of where the aircraft stands.

The water-cannon salute in Ulaanbaatar was real. So was the regulatory workaround that made it possible — and so are the structural constraints that define how far that workaround can reach.

Frequently Asked Questions
Can the C919 fly to international destinations without EASA or FAA certification?
Yes — but only to countries whose aviation authorities recognize China's CAAC airworthiness standards through bilateral agreements. Mongolia is the first such international destination for scheduled commercial service. Countries that follow EASA standards (most of Europe, many in Asia and the Middle East) or require FAA certification cannot admit the C919 for commercial passenger service until EASA completes its validation of the CAAC type certificate. EASA's timeline for C919 approval runs no earlier than 2028 and possibly as late as 2031. The bilateral recognition pathway is real but geographically limited to non-Western-aligned aviation authorities.

Why did Air China choose Mongolia for this first international route?
Mongolia was selected for practical and strategic reasons. The route from Beijing is approximately 1,378 km (857 miles) — a two-hour sector near Chinese maintenance support infrastructure. Mongolia had already allowed China's smaller C909 regional jet to operate the Hohhot–Ulaanbaatar route from July 2025, pre-validating the CAAC recognition pathway. Scott Kennedy of CSIS called the choice a PR move given Ulaanbaatar's proximity to Beijing.

How many C919s has COMAC actually delivered, and how far is that from its targets?
As of mid-2026, approximately 40 C919s had been delivered cumulatively — roughly 32 through the end of 2025 and 8 more in the first half of 2026, per Euronews C919 delivery tracking. COMAC's stated target for 2026 alone is 100 aircraft. Independent aviation advisory firm IBA forecasts 25 C919 deliveries in 2026, rising to around 45 in 2027. The production gap reflects both manufacturing scale-up challenges and the demonstrated vulnerability of the LEAP-1C engine supply to U.S. export control decisions — which disrupted production for roughly five weeks in mid-2025.

What legal obligations apply to COMAC as a Chinese state-owned enterprise, and why does that matter for international operators?
As a PRC state-owned enterprise, COMAC is subject to China's National Intelligence Law (2017), which requires all organizations to support and cooperate with national intelligence work, and the Data Security Law (2021), which governs how data stored in China can be shared with or withheld from foreign entities. These obligations apply regardless of where COMAC's aircraft operate or what commercial agreements the company signs. International airlines or airport operators using COMAC's maintenance and operational systems should seek legal guidance on what data handling obligations they inherit when deploying aircraft from a PRC state enterprise.

43,000 passenger cars imported in the first half of 2026 www.gogo.mn

In the first half of this year, Mongolia traded with 150 countries, with total foreign trade turnover reaching USD 16.5 billion. Exports amounted to USD 10.4 billion, while imports totaled USD 6.1 billion, resulting in a surplus of USD 4.3 billion.

In 2015-2025, Mongolia imported 720,000 passenger cars, 210,000 trucks, and more than 15,000 public transport vehicles.

In the first half of 2026 alone, 43,000 passenger cars, 10,000 trucks, and 615 public transport vehicles were imported.

Passenger cars accounted for 76.3% of Mongolia’s imports from Japan, while trucks accounted for 5.7% of imports from China.

Total imports increased by 10.6%, or USD 588.1 million, compared with the same period last year.