Tur-Od Lkhagvajav: The Mongolian National Chamber of Commerce and Industry Upholds Trust in Its Partnerships www.montsame.mn

 The MONTSAME National News Agency spoke with the President and Chairman of the Board of Directors of the Mongolian National Chamber of Commerce and Industry (MNCCI) Mr. Tur-Od Lkhagvajav.
Congratulations on your appointment as the President and Chairman of the Board of Directors of the Mongolian National Chamber of Commerce and Industry. When was the Mongolian National Chamber of Commerce and Industry established, and how have the Chamber's operations evolved over time?
The Mongolian National Chamber of Commerce and Industry was founded in 1960 under the Ministry of Trade of the Mongolian People’s Republic to manage foreign trade with capitalist or Western countries at that time. Today, our Chamber operates within the confines of the Law on Chamber of Commerce and Industry, which was passed by the State Great Khural of Mongolia in 1995.
The Mongolian National Chamber of Commerce and Industry supports the country's economic development by fostering a favorable business environment, facilitating trade, economic, scientific, and technical cooperation between Mongolian and international entities, and assisting businesses in exporting domestically produced goods and products. The Chamber is a public legal entity. The MNCCI is a nationwide non-governmental organization with voluntary membership. Currently, it has over 6,400 members, of which 2,700 are located in Ulaanbaatar city and 3,700 in rural areas of Mongolia.
We are also delegated with some governmental tasks, such as issuing certificates of origin for national products, providing accreditation, and granting patents for intellectual property and copyrights. Our one significant initiative is the issuance of Force Majeure Certificates through the National Accreditation Center of Mongolia, which I would like to specifically mention, as it was quite instrumental during unforeseen events, such as the COVID-19 pandemic. So, businesses can collaborate based on mutual trust, and the Chamber itself upholds this principle by fostering trust among its member organizations and partners. 
You just mentioned that the MNCCI has over 6,400 members. Looking at the distribution by sector, which sector dominates the Chamber’s membership? Based on this, we might get a general picture of which sectors play a major role in our country’s economy.
Today, over 90 thousand entities and entrepreneurs operate in Mongolia. The Chamber's membership includes both large holdings and smaller entities. Small and medium-sized enterprises are also among our members. Over the past 4–5 years, we have actively supported startups, particularly those led by young people and women entrepreneurs. State-owned and locally owned enterprises, such as Erdenet Mining Corporation SOE, Mongolrostsvetmet SOE, and Erdenes Tavan Tolgoi JSC, which collectively account for more than 90 percent of Mongolia’s GDP, are proud members of our Chamber. Additionally, MNCCI member organizations provide employment for over one million people.
The mining and extractive industry plays a pivotal role in our country's government budget. Therefore, the Chamber supports transparency in the mining sector. We have launched programs and projects to improve corporate governance and uphold business ethics in mining companies, especially focusing on state-owned and locally owned enterprises. 
Currently, 22 policy councils operate under the MNCCI. In 2025, we established the Regional Development Policy Council. The Chamber also has affiliated local chambers in all 21 aimags of Mongolia. To drive regional development forward, we have restructured our local chambers into seven regions with designated plans and budgets for them. Starting this year, the Chamber and the Government of Mongolia will jointly host the Regional Development Forum and implement various multilateral initiatives.
Following the 2024 Parliamentary Elections of Mongolia, the Government of Mongolia has announced its Action Program. What legislative proposals is the Chamber developing, and what innovative regulations are expected to be introduced?
The Mongolian National Chamber of Commerce and Industry will partner with the Government of Mongolia under Mongolia's long-term development policy "Vision-2050," the New Revival Policy, and the Government's 2024-2028 Action Program, focusing on three main areas: first, the transition to a green economy; second, the shift towards artificial intelligence and advanced technologies; and third, the transformation of the labor force and labor market.
We are currently working on amending certain laws that directly impact the business environment in Mongolia. One of the most pressing challenges businesses face is the tax environment. The MNCCI conducts a Business Environment Survey among its member organizations every two years. The 2023 survey concluded that "The tax environment is not always favorable for businesses." In response, we are collaborating with the Working Group established by the State Great Khural of Mongolia to organize a series of discussions and develop provisions to be reflected in these laws. In addition, we are working on draft laws related to business and finance, such as the Law on Chamber of Commerce and Industry, the Law on Energy Reform, the Law on Increasing Productivity and Improving Governance of State-Owned and Locally Owned Enterprises, the Law on Labor Force Migration, the Law on Permits, and the Law on Commerce.
Mongolia does attract foreign investors. How friendly is our country to foreign investors?
The Mongolian National Chamber of Commerce and Industry has restructured its organizational framework, reducing the number of departments from 11 to three main departments to enhance efficiency. The Trade Policy Department aims at supporting foreign trade, with a dedicated center for promoting exports and imports. The Industrial Policy Department will focus on fostering industrial development, particularly the establishment of industrial parks, in alignment with the Government's objectives. The Investment Policy Department will closely cooperate with the Ministry of Economy and Development of Mongolia and the Investment and Trade Agency of Mongolia to protect the interests of domestic and foreign investors, including the development of the draft Law on Investment to create a more favorable legal environment for investors.
What are the most common concerns raised by foreign investors? What mechanisms does Mongolia use to resolve business disputes?
There are several foreign-invested Mongolian companies registered with the Mongolian National Chamber of Commerce and Industry. One of the main concerns of foreign investors is the need for political stability. With the formation of a Coalition Government following the 2024 Parliamentary Elections, it is expected that Government operations will continue steadily in the coming years. Among the most well-known initiatives are the 14 mega projects of the Government of Mongolia, for which the MNCCI is working hard to attract foreign investment and establish partnerships.
Another issue raised by foreign investors is the stability of the legal environment. We will submit a set of proposals and recommendations for the draft Law on Investment. Our goal is to have the Parliament of Mongolia discuss and approve the law that creates a favorable environment for foreign and domestic investors, ensuring its validity for at least 15-20 years and possibly even beyond 30 years without amendments.
Foreign investors also bring up the issue of dispute resolution with the MNCCI. Similar to the chambers of other countries, our Chamber operates the Mongolian International Arbitration Center. This Center is staffed by legal experts specializing in economics, finance, banking, and investment, ensuring that disputes are resolved fairly and impartially.
The world is increasingly focusing on sustainable development and green economy. What regulations do our business laws provide for incentives for foreign investors? What improvements could be made in the legal framework in this area?
The MNCCI has long supported the production of environmentally friendly products from the very beginning. The Chamber is a leader in driving the green transition. Annually, the MNCCI presents the "Greenpreneur" Award to Mongolian entrepreneurs and foreign nationals for their contributions to the development of green businesses. Starting this year, businesses contributing to the green economy will benefit from cuts in corporate income taxes. Another noteworthy initiative is the collaboration between the MNCCI and the Ministry of Environment and Climate Change of Mongolia to establish a special fund. This fund has already been introduced to the Chamber's member organizations and aims at accumulating MNT 1 trillion every year to support the green transition.
The Mongolian National Chamber of Commerce and Industry issues certificates of origin for export goods and products. What are the advantages of this certificate? How many types of goods are currently certified?
One important service that the MNCCI provides to entities and businesses is the issuance of certificates of origin. In 2024, the Chamber issued 14,575 certificates, directly supporting exports. Mongolia has the right to supply over 7,500 products to the European Union under preferential tariffs. Experts from relevant ministries and agencies in Mongolia and Japan held seven rounds of negotiations for three years, starting 2012, and established a Free Trade Agreement. Furthermore, Mongolia is working on establishing similar agreements with the Eurasian Economic Union and South Korea. A notable opportunity for Mongolia arose in 2019 when it joined the Asia-Pacific Free Trade Agreement, which came into effect in 2021.
Which countries and international organizations does the MNCCI cooperate with? How is the Chamber expanding its foreign relations and cooperation?
The MNCCI collaborates with trade and industrial chambers and trade promotion organizations of over 160 countries. It has signed memoranda of understanding with approximately 130 organizations of more than 40 countries. The Mongolian National Chamber of Commerce and Industry is a member of several prestigious international organizations, including the International Chamber of Commerce-World Chambers Federation (ICC WCF), the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI), the Asia Trade Promotion Forum (ATPF), the Asia-Pacific Trade Agreement Chamber of Commerce and Industry (APTA CCI), and the Greater Tumen Initiative (GTI), all of which facilitate close cooperation. This allows the MNCCI to engage in regional and international business networks, stay informed about economic, trade, and business trends, share information with entrepreneurs, and promote Mongolia's business environment at international fora. It also provides opportunities to voice the opinions of business owners, participate in seminars and training sessions, and foster collaboration. Also, the MNCCI works closely with neighboring countries on joint projects, exhibitions, trade fairs, and other initiatives.
Since the beginning of 2025, the Mongolian National Chamber of Commerce and Industry has organized two important business forums in Türkiye and Uzbekistan. How fruitful have the business forums and business trips to foreign countries been?
The frequency of high-level visits by the Head of State and government leaders of Mongolia has notably increased in recent years. A key part of any such visit is the business delegation. During these visits, the Mongolian National Chamber of Commerce and Industry, in cooperation with the host country's national chamber, organizes a Business Forum. During the State Visit of President of Mongolia to the Republic of Türkiye on January 15-19, 2025, we organized the Mongolia-Türkiye Business Forum. Approximately 100 business representatives accompanied the President of Mongolia. The Mongolia-Türkiye Business Forum and B2B meetings were successfully held in Ankara, the capital city of Türkiye, and Istanbul, the financial hub of Türkiye. The B2B meetings are a crucial event where business people of the two countries meet face-to-face, discuss potential collaborations, and establish partnerships. In Türkiye, Mongolian enterprises and companies conducted over 10 negotiations, resulting in agreements worth more than MNT 30 billion. This highlights the importance of business forums and B2B meetings organized by the Mongolian National Chamber of Commerce and Industry in other countries.
The MNCCI also signed a Cooperation Agreement with the Union of Chambers and Commodity Exchanges of Türkiye, which represents over 2 million businesses and organizations. This Agreement aims to enhance exports and imports between the two countries, balance foreign trade, implement joint projects and programs, and provide Mongolian manufacturers access to the Turkish market and, eventually, through Türkiye, to other countries' markets. Additionally, we have agreed to collaborate with the Foreign Economic Relations Board under the Ministry of Trade of Türkiye, with the goal of elevating bilateral relations and cooperation between the two countries. This Agreement can be seen as a roadmap for enhancing economic ties with third neighbors. 
The business forum and B2B meetings were held in Tashkent, the capital city of the Republic of Uzbekistan, during the first Meeting of the Mongolia-Uzbekistan Intergovernmental Commission on Trade, Economy, Science, and Technology Cooperation. A delegation of over 50 business people of Mongolia visited Uzbekistan. Deputy Prime Minister of Mongolia Amarsaikhan Sainbuyan paid an official visit to Uzbekistan as the Chairman of the Mongolian party to the Commission.
Around 200 business representatives from Mongolia and Uzbekistan participated in the business forum and B2B meetings. Uzbekistan is increasingly attracting global attention of investors and business people. Its economy is becoming more open, and its population is growing rapidly. Mongolian companies and entrepreneurs have started showing interest in the Uzbek market too.
To give you an example, Mongol Basalt JSC of Mongolia is building a factory in Tashkent, while the Tavan Bogd Group is opening a branch of NURA Center in Uzbekistan. "Voyage Mongolia" has established a representative office and is now selling water in Uzbekistan. Several Mongolian food companies are actively working on importing fruits, berries, and other food products from Uzbekistan. Many Mongolian companies have expressed their intention to explore this new market further and are planning to return to Uzbekistan. In such ways, we are working to connect our member companies with international markets, collaborate with the Government to create a favorable legal environment, raise awareness, and open up wider business opportunities.
Where can foreign entrepreneurs find information and advice on Mongolia's market, including business and trade opportunities, as well as the tax environment? How accessible are these services?
As I mentioned earlier, the Mongolian National Chamber of Commerce and Industry supports foreign investors and businesses in investing, trading, and developing economic relations with Mongolia. All this information can be found on our website www.mongolchamber.mn. At the same time, our Chamber has established an Institute for Economic and Market Research. The research center will conduct policy-level research. In particular, it intends to provide domestic market information to foreign investors and exporters and importers, and on the other hand, to distribute information on the markets of other countries to domestic producers and importers.
What goals are you planning to accomplish in the near future?
This year marks the 65th anniversary of the Mongolian National Chamber of Commerce and Industry. As part of the anniversary celebrations, revising the Law on Chamber of Commerce and Industry has become our priority. The MNCCI is actively involved in drafting several laws aimed at improving the business legal environment and is working towards achieving concrete results. Additionally, the Chamber is focusing on strengthening its branches in rural areas to provide support and training for local businesses. We will also organize business forums during the State Visits of President of Mongolia Khurelsukh Ukhnaa to Poland and the Czech Republic, scheduled for March 2025. Preparations for these forums are underway. Additionally, we are preparing for successful participation in both domestic and international exhibitions, trade fairs, and expos.
This year, the World Expo 2025 will be held in Osaka, Japan, under the theme "Designing a Future Society for Our Lives." The Expo aligns with the UN's Sustainable Development Goals for 2030 and expresses a commitment to raising awareness and driving action towards eliminating hunger and poverty, promoting social equality, resolving ecological challenges, and mobilizing citizens globally to contribute to achieving these goals. As the largest international event, the Expo sees the participation of over 170 countries and is held every five years. Preparations are underway to involve Mongolian businesses and companies, particularly members of the Mongolian National Chamber of Commerce and Industry in this prestigious event. The Mongolian National Chamber of Commerce and Industry is gearing up for an exciting year ahead, celebrating its 65th anniversary with a packed calendar of events, including domestic and international forums, discussions, exhibitions, trade fairs, and policy advocacy initiatives.

Official Visit of Chairman of the State Great Khural of Mongolia to the United Kingdom Begins www.montsame.mn

Chairman of the State Great Khural of Mongolia Amarbayasgalan Dashzegve is paying an official visit to the United Kingdom of Great Britain and Northern Ireland on March 18-23, 2025. 
Chairman of the State Great Khural of Mongolia Amarbayasgalan Dashzegve held an official meeting with Speaker of the House of Commons of the United Kingdom the Right Honorable Sir Lindsay Hoyle at the Palace of Westminster on March 19, 2025. During the official meeting, the two sides expressed satisfaction with the active development of bilateral relations and cooperation across all sectors in recent years and emphasized the strengthening of mutual understanding. Additionally, the two sides exchanged in-depth views on expanding cooperation between the legislative bodies of the two countries, particularly enhancing relations between the Secretariats and Parliamentary Friendship groups. 
At the meeting, Speaker Amarbayasgalan introduced the objectives set by the newly formed State Great Khural of Mongolia, the “Three Perfections” policy aimed at strengthening parliamentary governance, as well as the initiatives and legal reforms being implemented to develop Mongolia’s economy, boost trade, and increase investment. Speaker of the House of Commons, Sir Lindsay Hoyle, expressed gratitude for accepting his invitation and for undertaking the first official visit of a Chairman of the State Great Khural of Mongolia to the United Kingdom. Sir Lindsay Hoyle further expressed confidence that this official visit would contribute to strengthening cooperation between the legislative bodies of the two countries.
Following the meeting, Speaker Amarbayasgalan signed the Book of Honored Guests of the House of Commons of the United Kingdom.

Mongolia's external debt grows by 7.4 percent at the end of 2024 www.xinhuanet.com

Mongolia's external debt grew by 7.4 percent at the end of 2024, reaching 37.1 billion U.S. dollars, according to data released by the country's National Statistics Office on Wednesday.
The growth in external debt was caused by an increase in direct investment and intercompany loans by 14.4 percent, official data showed.
It is noted that nearly 46.5 percent of Mongolia's total external debt was built up from direct investments and intercompany loans, 21.2 percent from the government's debt and 7.2 percent from debts of other savings institutions, 2.9 percent from the country's Central Bank, and 22.2 percent from other sectors.
Meanwhile, World Bank experts predict that Mongolia's economy will grow by 6.5 percent in 2025 due to growth in the mining industry and increased domestic demand.

Mongolia: A gradual macroeconomic improvement drives an upgrade in the MLT political risk to 6/7 www.credendo.com

Mongolia has been on a bumpy road since spring 2017, when it was bailed out by multilateral and bilateral creditors to avoid a sovereign debt default. During the following years, while the authorities strived to reduce the country’s heavy debt burden, the economy was hit hard by the Covid-19 pandemic due to the border closure with China, its top export market (accounting for more than 80% of Mongolian goods exports). However, since 2021, the country has gradually seen its macroeconomic performances improve and now seems to have turned the corner. Real GDP growth is back to sustained high rates, recording a 6% average across 2022-24, a rate which is also forecast for the next three years. The economy remains highly reliant on the mineral commodity sector (coal, copper, gold and iron ore) as the main growth driver, although this is also a major weakness as it means that Mongolia is dependent on price fluctuations – this risk is mitigated by high prices for gold, huge market potential for copper in the green transition and rising demand for critical minerals from neighbouring China. Moreover, the large mining production expansion – after the launch of the huge Oyu Tolgoi mine in 2023, one of the world’s largest copper and gold mines – will be a valuable buffer in making Mongolia more resilient to future commodity demand and price fluctuations. The government also wants to boost economic diversification, notably by developing the country’s high tourism potential and untapping huge renewable potential (such as hydropower and solar) to reduce external energy dependency. These current and future mining and energy projects will boost exports and GDP growth in the MLT, thereby keeping the current account deficit at more acceptable levels. The deficit is much lower than its pre-Covid level, having halved from 16% to an expected 8% of GDP between 2019 and 2024, although a slow, gradual widening is forecast in the future. That said, FDI is expected to remain high and therefore finance the current account deficit in the MLT. Foreign exchange reserves are therefore likely to remain around an adequate level of three months of import cover.
A sharply squeezed public debt alleviates the heavy external debt burden
Stronger GDP and exports growth, combined with contained new borrowing, have contributed to reducing the heavy external debt ratios, resulting in a reduction in the external debt-to-GDP ratio from 237% in 2016 to 169% in 2023 since Mongolia’s sovereign debt crisis. A gradual but limited increase is however expected from 2026. It is worth noting that most debt is private, and an important decline in external debt comes from the decrease in public debt. Meanwhile, fiscal consolidation has enabled a remarkable improvement in public finances as public debt has dropped from 77.8% of GDP in 2020 to an estimated level of less than 40% in 2024. The fiscal balance has been in surplus since 2021 (a small deficit is forecast in the MLT), with government revenue surging to more than 35% of GDP so that the public debt-to-revenue ratio now amounts to just 112% (compared to over 300% at the time of Mongolia’s debt crisis). Looking ahead, public debt sustainability is projected to weaken a fraction, but without endangering the successful achievements of recent years. Therefore, the concrete progress towards a more sustainable external public debt and an upbeat outlook for Mongolia’s mineral sector led to an upgrade in the MLT political risk category to 6/7 last December.
Global trade protectionism and deteriorating monetary conditions remain downside risks
While external debt service reached more than half of current account receipts between 2017 and 2023, it is expected to sit at a much lower level comparatively in the coming years, although future external debt repayments will be monitored closely since they are projected to be equal to the level of foreign exchange reserves. In this context, Mongolia should benefit from easing US interest rates and a largely stable tugrik close to its levels of two years ago – albeit partly resulting from the central bank interventions.
Nevertheless, improved market conditions and confidence in the country could be exposed to a global trade war led by Trump’s import tariff hikes which could harm the Chinese economy, fuel inflation pressures and compel a pause in the Fed’s easing rate cycle. A stronger US dollar is also a concern, given the ever-challenging debt service. These are important downside risks to watch this year and beyond in the light of Mongolia’s external debt, which is still high. Although inflation has eased away from double-digit figures since 2023 amid monetary tightening, it still rose to 9.6% in January 2025. Inflation is likely to persist at relatively high levels, a chronic feature for the deadlocked economy.  
Political stability and geostrategic position
Mongolia’s currently favourable outlook is supported by heightened political stability. Already in control of the presidency, the victory of the ruling Mongolian People’s Party in the June 2024 elections strengthened prospects of cautious policy continuity and a preserved democratic system. Nonetheless, in spite of finalised negotiations with Rio Tinto regarding the Oyu Tolgoi mine, the authorities have yet to show long-term commitment to strengthening institutions, which have been volatile in the past, in order to maintain appeal for foreign investors in the LT. Moreover, the government will continue to face protests in the absence of progress in tackling structural problems such as the high cost of living, the lack of socioeconomic benefits from commodity extraction and air pollution.
Externally, Mongolia is expected to continue to reap benefits from its geostrategic and transit location between Russia and China (its dominant trade and investment partner), notably as part of the Belt and Road Initiative. The authorities are also committed to diversifying their trade and economic links with the West as they aim to mitigate the risks associated with economic reliance on two partners. However, looking ahead, a chaotic geopolitical environment could complicate the authorities’ attempts to navigate between Mongolia’s partners.
Analyst: Raphaël Cecchi – r.cecchi@credendo.com

Government to Facilitate Households Residing in Insulated Gers and Passive Houses www.montsame.mn

Measures to reduce air pollution in Ulaanbaatar, the Capital City of Mongolia, will be implemented as a nationwide campaign involving all government administrative bodies and the public. Accordingly, Minister of Environment and Climate Change of Mongolia Odontuya Saldan announced that the Government of Mongolia will support households residing in insulated gers and passive houses.
During the regular session of the Cabinet of Mongolia on March 19, 2025, Minister of Finance of Mongolia Javkhlan Bold was instructed to focus on ensuring that commercial banks, particularly the State Bank of Mongolia, provide concessional loans. 
The Scientific Advisory Board of the National Committee for Air Pollution Reduction of Mongolia received numerous proposals from individuals presenting their work. Among the initiatives presented, the most effective and adequate solutions will be assessed, and citizens will be offered various options and advice on insulating their homes.
The Ministry of Environment and Climate Change of Mongolia has officially notified 173 steam boilers and 2,263 enterprises that collectively burn 200,000 tons of raw coal annually that they must cease using raw coal starting September 1, 2025. To accelerate the plan of allocating 1 percent of corporate income tax revenue to air pollution reduction efforts, Minister Odontuya has scheduled meetings with enterprise leaders to discuss solutions for their employees residing in ger districts.

Government Approves Resolution to Help Thousands of Ulaanbaatar Households Switch to Gas Heating www.montsame.mn

During its regular session on March 19, 2025, the Cabinet of Mongolia approved a resolution to reduce air pollution in Ulaanbaatar City.
Governor of the Capital City of Mongolia Nyambaatar Khishgee noted, “More than 200,000 households in the capital use solid fuel. There are also 804,000 cars on the road. Sources such as power plants are also polluting the air. In this regard, a resolution has been approved to switch 32,000-50,000 households to gas in preparation for the winter of 2025-2026. If households voluntarily refuse solid fuel and switch to gas fuel, they will be provided with gas stoves for heating. Moreover, from September 15, 2025, to May 15, 2026, a subsidy of MNT100,000 will be provided to households that converted to gas. All ministries are responsible for reducing air pollution. Therefore, this resolution stipulates that ministries are responsible for reducing household heat loss in ger districts, each being assigned a certain area. Military organizations will also be involved in reducing the heat loss of households and bringing them into compliance with standards. State-owned companies will support this effort."
Annual gas consumption in Mongolia is 46 thousand tons. It is estimated that by switching 32-50 thousand households to gas, the consumption will increase to 100 thousand tons. The Governor of the Capital City said that a draft agreement on cooperation with gas-importing enterprises is being formulated.

Industrial Output of Mongolia Reaches MNT 5.1 Trillion www.montsame.mn

According to preliminary results for the first two months of 2025, the total production of the industrial sector reached MNT 5.1 trillion, marking an increase of MNT 747.1 billion compared to the same period in 2024. This growth was mainly driven by the mining and extractive sector, which contributed MNT 492.9 billion, and the manufacturing sector, which accounted for MNT 129.5 billion. 
The total production output of the mining and extractive sector reached MNT 3.5 trillion, an increase of MNT 492.9 billion from the same period in 2024. This growth was largely attributed to the extraction of metal ores, which rose by MNT 280.4 billion, and lignite mining, which increased by MNT 204.1 billion. The production volume of iron ore, lignite, zinc concentrate, copper concentrate (in metal content), fluorspar, and fluorspar concentrate increased by 4.1-92.3 percent compared to the same period in 2024. However, the production volume of iron ore concentrate, unrefined gold, processed coal, hard coal, crude oil, and silver concentrate declined by 0.1-13.6 percent. 
In the manufacturing sector, the physical production volume of key products such as bottled water, soft drinks, juice, cashmere knitwear, combed cashmere, compressed coal briquettes, regular pastries, liquid milk, and cigarettes increased by 2.8-87.3 percent. 
The industrial sector’s sales amounted to MNT 7.1 trillion, a decrease of MNT 971.8 billion compared to the same period in 2024. This was due to the decrease of MNT 1.3 trillion in the mining and extractive sector’s sales. 
The total sales of products in the industrial sector amounted to MNT 7.1 trillion, representing a decrease of MNT 971.8 billion compared to the same period in 2024. This decline was mainly due to a MNT 1.3 trillion drop in sales within the mining and extractive sector.
The total sales of the mining and extractive sector fell by MNT 1.3 trillion from the previous year, primarily due to MNT 1.7 trillion decrease in coal sales and MNT 26.8 billion decline in crude oil sales. 
As of the first two months of 2025, export sales amounted to MNT 4.8 trillion, with the mining and extractive sector accounting for MNT 4.7 trillion. The composition of mining exports was as follows: 
Coal- 42.4 percent, 
Metal ores- 52.7 percent, 
Crude oil- 3.4 percent, 
Other mineral extractions- 1.5 percent.

Promoting Sustainable Tourism in Mongolia: Insights from the Multi-stakeholder validation meeting www.unesco.org

Mongolia goes for megaprojects to broaden economy www.newsbase.com

Deep in Mongolia’s Gobi Desert, lines of trucks load up each day with coal and copper before travelling south to the Chinese border. Once over the frontier, factories and smelters turn Mongolia’s raw materials into finished projects.
The mining sector has served Mongolia well for nearly two decades but the country’s leaders are increasingly vocal about the amount of raw material exported to China. Some say it’s high time to keep some of that raw mineral wealth on Mongolian territory for processing.
To that end, officials have drawn up plans to expand Mongolia’s industrial capacity. Factories and infrastructure are in the planning stage to add value to raw materials. Officials say it’s in response to public demand.
“People are much more keen to see results. They also want to see their livelihoods being uplifted significantly,” said Bulgantuya Khurelbaatar, deputy speaker of the Ikh Khural and a member of the ruling Mongolian People’s Party (MPP). “This is only possible if we have significant, big projects. Megaprojects.”
If Prime Minister Oyun-Erdene Luvsannamsrai can get these factories built the result could be dramatic – sheets of copper and rolls of steel pouring across the border, instead of railcars filled with unprocessed minerals. Mongolia could position itself as a key player in global supply chains.
There are hurdles, of course. Questions over funding are somewhat hopeful as the projects will require billions of dollars in foreign investment. There are sustainability issues too. Mongolia is well-known for its natural beauty, wildlife and nomadic culture, all of which could be overwhelmed by rapid infrastructure development.
Despite the hurdles, officials say the projects are the quickest way to reach economic goals – chiefly a government promise to increase per capita GDP to $10,000, up from the current level of $7,580. 
The prime minister has outlined 14 so-called megaprojects, including mineral processing centres, water diversion projects, dams and power plants.
The government has made significant inroads on two of them.
In January, Mongolia signed an agreement with France to develop a uranium mine in the southwest province of Dornogovi (East Gobi). Then in February officials completed a deal with China to develop a cross-border rail line at the Gashuunsukhait-Gants Mod crossing, where most of Mongolia’s coal crosses the border.
Both projects have been years in the making, spanning multiple administrations. Actual construction of the two projects will take years but moving them forward helps Oyun-Erdene build a case for more development.
A 450-megawatt coal-fired power station, planned for the coal-rich Tavan Tolgoi area, could be next to move forward. Mongolia has long sought ways to improve energy independence and wean itself from energy sources in Russia and China.
Oyun-Erdene is also prioritising more railways and cross-border rail links to support the country’s mining sector. Once these are in place, officials want factories capable of processing Mongolia’s mineral wealth. The list of megaprojects includes a steel manufacturing plant, a copper smelter and an oil refinery.
Politics plays a part
The timeline for these projects isn’t set in stone but they are being prioritised in the government’s 2024-2028 action plan.
To move them forward as quickly as possible the MPP formed a coalition government with the Democratic Party after the parliamentary elections last year. The MPP could have ruled by itself but wanted to remove barriers to development.
“When almost half the Parliament becomes an opposition, it's quite difficult to push forward for some of these big, megaprojects,” Bulgantuya said. 
Forming a coalition helped Mongolia to wrap up the uranium deal with France. It could also make it easier for the government to move on projects that usually create friction in rural communities, including the damming of rivers for hydropower.
Projects include diverting water from north-flowing rivers like the Orkhon Gol to Southern Mongolia where it can be used for mining.
“Most of Mongolia’s rivers flow out [of Mongolia]. We are trying to keep a certain amount of those waters within our borders,” Minister of Mining Tuvaan Tsevegdorj said in an interview with bne IntelliNews. “That is the policy.”
Tuuvan says hydro and water diversion will be done in consultation with Russia and will be sustainable. The plan to divert water, for example, only applies to when it reaches flood stage, he said.
The government also says it will protect traditional nomadic culture, even as roads, railways and industrial sites appear on land normally used by herders. Nomads will still have access to millions of acres of unfenced land across the country, said Nomin Chinbat, Mongolia’s Minister of Tourism.
“We want to keep [the nomadic lifestyle] alive just as it has been for the last 2,000 years,” said Chinbat. 
Hefty price tag
The total price tag for these projects will run far into the billions but officials say taxpayer money won’t be risked. Instead, private entities and foreign investors are being courted to pay for the projects.
The uranium mine, for instance, will be built with a $1.5bn investment by Orano of France. The 90-MW Erdeneburen hydropower power plant (HPP) is a $280mn project with full funding by Chinese investors. The planned oil refinery will be paid for with a $1.7bn investment from India.
Mongolia already has experience in courting large foreign investment. Anglo-Australian miner Rio Tinto paid for the massive Oyu Tolgoi copper mine, a $7bn investment. But it hasn’t been an easy marriage with Rio. Ulaanbaatar’s relationship with Rio and other foreign investors has been punctuated with holdups and disputes, and the slowing down or mothballing of projects.
Tuvaan, the mining minister, says rocky relationships with foreign investors are in the past. The current administration is better prepared for large-scale investments, he said. The Orano agreement with France is intended to chart a new path.
“We believe the Orano [uranium] project will bring a message to international investors that the Mongolian government is committed to foreign investment,” Tuvaan said. “We follow laws and regulations. We are committed to agreements, not changing our minds on the way.”
Mixed support
The megaproject plans have met with mixed opinions in Mongolia. Bulgantuya, the deputy parliament speaker, describes “a lot of kickback and lashback” when the project funding is discussed. Change is often met with hesitation, she said.
Recent history shows that the Mongolian public is wary of foreigners looking to exploit their country’s resources. Rio Tinto in particular struggled to gain public trust when Oyu Tolgoi was being built.
Some politicians have also expressed concern, even some within the ruling coalition. They include Jargalan Batbayar, a member of parliament representing the Democratic Party, who prefers a more balanced economy that is less reliant on the mining sector and more focused on cashmere and other agricultural products.
“I think we should stop thinking in terms of value-added supply chains, involving copper [and other minerals],” Jargalan said. “This only serves to lock us into an industrialisation path.”
Jargalan also doubts foreign investment will pay for it all and anticipates increased national debt. Some of the projects are little more than “white elephants” she says, indicating that there will be a high price to pay with little return.
“Quite costly and not economically viable,” Jargalan said. “They would only exponentially increase our foreign debt and exert undue pressure on the tughrik [local currency].”
Government officials appear open to hearing concerns but with three years before the next elections they are unlikely to be in a hurry to change course or slow down the plans to develop.
“We understand that there are varying voices,” said Bulgantuya. “But at the same time, these big projects support foreign and even domestic investment and still need to go ahead.” 
By Michael Kohn

Mongolia to issue tenders for new railway to boost coking coal exports to China www.spglobal.com

Mongolia aims to open tenders by the end of March to start the construction of a second railway, which is expected to nearly double the transport of coking coal to China, the Mongolian government said March 17.
China and Mongolia signed the agreement Feb. 14 to establish a cross-border railway connecting Mongolia's Gashuun Sukhait port with China's Ganqimaodu port, dubbed the Gashuun Sukhait-Ganqimaodu port cross-border railway.
Ganqimaodu is a key port in the China-Mongolia coal trade.
"I am confident that the agreement will be ratified at the beginning of the spring session of the State Great Khural (Parliament), allowing for the timely commencement of construction work," Mongolian Prime Minister Luvsannamsrain Oyun-Erdene said as the session began March 17.
"After the agreement is ratified, contracts between the companies will be signed, and work will officially begin as specified in the agreement," he said, expecting to announce the first tenders by the end of March.
The new railway is anticipated to nearly double Mongolia's port capacity, increasing coal exports from an average of 83 million mt/year to 165 million mt/year, according to data from the Mongolian government. This expansion is expected to boost annual coal sales revenue by $1.5 billion. Government estimates indicate that the railway will take about 2 1/2 years to complete, with construction slated to begin in April 2025.
The Gashuun Sukhait-Ganqimaodu railway will complement the Tavantolgoi-Gashuun Sukhait rail link, which started up in September 2022.
Platts, part of S&P Global Commodity Insights, assessed premium low-vol hard coking coal $3/mt lower from the previous session at $171/mt FOB Australia on March 17. Premium low-vol CFR China was assessed $1/mt lower at $175/mt.