Mongolia’s parliament on August 30 approved key changes to the structure and composition of the Cabinet proposed by Prime Minister Oyun-Erdene Luvsannamrsai. Ten new members were added — all but one from parliament — to the expanded 21-member Cabinet, the largest ever in Mongolia’s history.

The Cabinet reshuffle happened very quickly and was intended to strengthen Oyun-Erdene’s position and give him legislative support to push his liberalization and privatization agenda forward. This change is critical in the lead-up to the 2023 budget vote in November, because Mongolia’s economy has not yet fully recovered from the pandemic downturn.

The boosted Cabinet will also help Oyun-Erdene advance constitutional reforms to reduce presidential power and update election rules. Oyun-Erdene is expected to accelerate the implementation of his New Revival Policy, which aims to stimulate pandemic recovery and address Mongolia’s vulnerabilities as a landlocked country.

Oyun-Erdene noted that expansion of the Cabinet was necessary to meet the goals of the country’s New Revival Policy and 2050 Vision Initiative. The New Revival Policy, introduced in December 2021, aims to add more energy sources, integrate border ports with China, build downstream industrial capacity, start a new city south of Ulaanbaatar, reduce red tape, and eliminate corruption. This aligns with the country’s long-term development plan and Oyun-Erdene’s flagship program, the 2050 Vision Initiative.

The expanded Cabinet comprises 21 members covering 16 ministries (the full line-up is below). Three ministers with no portfolios were added to oversee Ulaanbaatar affairs, physical education and sports, and port revitalization.

Amarbayasgalan Dashzegve, secretary-general of the ruling Mongolian People’s Party (MPP), was appointed Cabinet secretariat chief, replacing veteran politician Nyamdorj Tsend. Amarbayasgalan will be key in executing major reform policies. Amarbayasgalan is in his early 40s and is regarded as one of the rising leaders of the MPP to succeed Oyun-Erdene in the future.

Oyun-Erdene is expected to name a new MPP secretary-general soon, who will be a power broker and key person in the upcoming general elections in 2024.

The new Cabinet includes 13 ministers who concurrently hold positions as members of parliament (MP). This follows the Constitutional Court’s August 15 decision to repeal a constitutional clause limiting the number of lawmakers in the Cabinet to four.

By filling his Cabinet with more parliamentarians, the prime minister is seeking to strengthen his position politically and legislatively. These powerful 13 ministers in the 76-member parliament would be key to advancing controversial reforms and a liberalization agenda. Although the MPP maintains a supermajority, it has powerful internal factions that are not always aligned with the prime minister’s agenda. Surprisingly, the construction, foreign, health, culture, defense, and environment and tourism ministers kept their seats in spite of the fact they are non-MPs.

In other key appointments, Khurelbaatar Chimed was selected as minister of economy and development and Uchral Nyam-Osor as minister of digital development and communications. Both positions were created last year and had remained unfilled since that time. Khurelbaatar is the former finance minister and will now lead revising the investment law and setting up a new Investor Protection Council. Uchral is expected to drive Mongolia’s digital transformation and move more government services online.

Oyun-Erdene named Ganbaatar Jambal to lead the mining sector. Ganbaatar is a pro-business politician known for championing the reduction of government intervention in the economy. Although a mining licensing regime has yet to be finalized, revisions to the mining law are expected later this year. Former Mining Minister Yondon Geleg was tapped to lead the state-owned Erdenet copper mine company.

Pro-business new Energy Minister Choijilsuren Battogtokh will likely attempt to introduce some deregulation measures, particularly in the renewable energy sector, targeting wind and solar producers. Partial electricity tariff liberalization, which was pushed by former minister Tavinbekh, will continue to face stiff public opposition in view of rising inflation. Tavinbekh is now a deputy minister at the energy ministry.

New Cabinet Lineup

Oyun-Erdene Luvsannamsrai, Prime Minister

Amarbayasgalan Dashzegve, Chief of Cabinet Secretariat (newly appointed)

Amarsaikhan Sainbuyan, Deputy Prime Minister

Sukhbaatar Jamiyankhorloo, Minister in charge of Ulaanbaatar City and Traffic Congestion (newly appointed)

Bat-Erdene Badmaanyambuu, Minister for Olympism, Physical Culture and Sports (newly appointed)

Khurelbaatar Chimed, Minister of Economy and Development (newly appointed)

Battsetseg Batmunkh, Minister of Foreign Affairs

Javkhlan Bold, Minister of Finance

Nyambaatar Khishgee, Minister of Justice and Internal Affairs

Bat-Erdene Bat-Ulzii, Minister of Environment and Tourism

Saikhanbayar Gürsed, Minister of Defense

Enkh-Amgalan Luvsantseren, Minister of Education and Science of Mongolia

Byambatsogt Sandag, Minister of Road and Transportation Development (newly appointed)

Nomin Chinbat, Minister of Culture

Ganbaatar Jambal, Minister of Mining and Heavy Industries (newly appointed)

Sarangerel Davaajantsan, Minister for Labor and Social Protection (newly appointed)

Bolorchuluun Khayangaa, Minister of Food, Agriculture and Light Industries (newly appointed)

Uchral Nyam-Osor, Minister of Digital Development and Communication (newly appointed)

Choijilsuren Battogtokh, Minister of Energy (newly appointed)

Enkhbold Sereejav, Minister of Health

Munkhbaatar Begzjav, Minister of Construction and Urban Development

(Vacant), Minister of Border Port Revitalization (newly created)

Mongolia's foreign trade turnover increased by 32 percent year on year to 13.4 billion U.S. dollars in the first eight months of this year, official data showed Wednesday.

According to the Mongolian Customs General Administration (MCGA), the Asian country registered a surplus in foreign trade balance as exports exceeded imports by around 2.2 billion dollars.

Mining products accounted for more than 80 percent of the mineral-rich country's total exports in the January-August period, the MCGA said.

Vladimir Putin and Prime Minister of Mongolia Oyun-Erdene Luvsannamsrain discussed the current state of bilateral relations in trade, the economy, humanitarian and other spheres on the sidelines of the Eastern Economic Forum in Vladivostok.

"Economic ties are developing, and trade is growing. We have major projects, which we are interested in developing, such as the Ulaanbaatar Railway, as well as enterprises extracting mineral resources and metals. Now we are talking about the possible implementation of a major infrastructure project: the supply of Russian gas to China via Mongolia," President Putin said.

"Just an hour ago, the Rosneft CEO reported to me that agreements were reached during his working trip to Mongolia on expanding cooperation in this area. As far as I know, you have coordinated all issues related to the supply of oil and oil products," Putin said.

"We are satisfied with the level and nature of relations that have developed between Russia and Mongolia. A meeting with the President of Mongolia is planned to be held very soon in Uzbekistan, where we expect to also hold a trilateral summit with the President of China," Putin stated.

The President of Mongolia, the Mongolian National Chamber of Commerce and Industry, the International Women’s Federation of Commerce and Industry, and The Asia Foundation organized a national forum on “Enhancing Women’s Participation in Economic Development”. The hybrid event was attended by over 800 participants, including representatives of Mongolia’s government, financial sector, CSOs, private sector, women entrepreneurs, international donor organizations, and embassies to discuss issues and potential pathways to increase women’s participation in Mongolia’s economy. The forum was supported through The Asia Foundation’s Women’s Economic Empowerment Program, and funded by Global Affairs Canada.

Audience at National Forum in Mongolia on Increasing Women’s Participation in the Economy

The high-level forum demonstrated growing interest among policymakers around crucial issues impacting women’s economic empowerment in Mongolia and provided an important opportunity to develop concrete recommendations. During the forum, participants committed to implementing policies to increase women entrepreneurs’ access to finance, including developing a minimum quota for women to ensure equal access to government-facilitated loans and strong support for a new law on increasing women entrepreneurs’ participation in the economy.

At a panel discussion on developing a gender-inclusive financial sector, Tsolmon Gantuya, deputy project manager for The Asia Foundation, highlighted some of The Asia Foundation’s efforts to create a more gender inclusive financial sector with partners including the Mongolian Sustainable Finance Association. Ms. Gantuya noted, “Gender-lens screening is now a mandatory approach for global investors and international financial institutions as a framework of SDG 5. Promoting a gender-inclusive financial sector will not only support women entrepreneurs but also enable many opportunities to attract investment and financing from global financial institutions at affordable rates.”

Speakers on stage at National Forum in Mongolia on Increasing Women’s Participation in the Economy

During a presentation on women’s economic empowerment The Asia Foundation Country Representative in Mongolia, Mark Koenig, remarked, “The Asia Foundation Mongolia has a strong history of working on a range of projects related to gender equality and women’s economic empowerment in close collaboration with government, civil society, and donor organizations. Based on our experience, this multisectoral approach is essential and we are grateful to the President of Mongolia Ukhnaagiin Khurelsukh for gathering such a diverse range of stakeholders at today’s forum to bring attention to the crucial issue of women’s economic empowerment in Mongolia.”

Mongolia country representative, Mark Koenig, speaks at National Forum in Mongolia on Increasing Women’s Participation in the Economy

The Asia Foundation is a nonprofit international development organization committed to improving lives across a dynamic and developing Asia. Informed by six decades of experience and deep local expertise, our work across the region is focused on good governance, women’s empowerment and gender equality, inclusive economic growth, environment, and climate action, and regional and international relations.

On the first day of engagements of his Mongolia visit, Raksha Mantri Shri Rajnath Singh held bilateral talks with his Mongolian counterpart Lt Gen Saikhanbayar Gursed in Ulaanbaatar on September 06, 2022. He also called on the President of Mongolia and Chairman of State Great Khural. The Raksha Mantri also inaugurated a Cyber Security Training Centre, built with assistance from India, and laid the foundation stone of the India-Mongolia Friendship School, to be constructed with Indian assistance.

Bilateral talks

After reaching Mongolia on the night of September 05, 2022 to become the first Indian Defence Minister to visit the country, the hectic day of engagements began for Shri Rajnath Singh with a ceremonial guard of honour at the Ministry of Defence in Ulaanbaatar. It was followed by delegation-level talks between the Raksha Mantri and his Mongolian counterpart. They discussed effective & practical initiatives to further expand bilateral defence engagements and deliberated on regional & global issues of mutual interest.

Both Ministers reaffirmed their commitment to fully implement the Strategic Partnership based on mutual trust & understanding, common interests and shared values of democracy & rule of law. The two Ministers also reiterated their resolve to reinvigorate the India-Mongolia Joint Working Group (JWG), which will meet in India later this year.

Call ons

Shri Rajnath Singh called on the President of Mongolia & Commander-in-Chief of Armed Forces Mr Ukhnaagiin Khurelsukh, wherein they recalled their strong bonhomie and previous interaction in 2018 when together they laid the foundation stone for the ongoing Oil Refinery project being undertaken by assistance from India. He also met the Chairman of State Great Khural of Mongolia Mr G Zandanshatar.

Cyber Security Training Centre

Another highlight of the day was the inauguration of Cyber Security Training Centre, built with assistance from Government of India, at National Defence University in Ulaanbaatar by the Raksha Mantri. The Raksha Mantri was briefed about the facilities at the Centre by the officials. He also interacted with the personnel of the Mongolian Armed Forces being trained at the Centre.

India-Mongolia Friendship School

Shri Rajnath Singh, along with Minister of Education and Science of Mongolia, laid the foundation stone of the India-Mongolia Friendship School, which is being established with the assistance from Government of India.

It may be recalled that India established diplomatic relations with Mongolia in 1955. Mongolia has declared India as a strategic partner and “spiritual neighbour”. In 2015, “strategic partnership” between the two Asian democracies was declared during visit of Prime Minister Shri Narendra Modi. Defence is an important element of bilateral engagements with Mongolia.

Mongolia's Tavan Tolgoi-Gashuunsukhait railway is scheduled to be officially put into operation on September 9 after being delayed from the previous date on July 1, according to local media and sources.

An opening ceremony of the 267-km railway, which started construction in December 2019, will be held on September 9. Tavantolgoi Railway is the client, while Bodi International is the EPC contractor for this project, according to polit.mn.

The railway had launched the first trial run on July 9, according to Sxcoal's earlier report.

Mongolian officials have calculated that 20-50 million tonnes of coal is expected to be transported annually once the rail line is operational, and the cost of transporting coal will drop from $40/t to $8/t.

(Writing by Emma Yang Editing by Harry Huo)

For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

In August, the gold purchase of the Bank of Mongolia (BoM) was 2,915 kg, raising the BoM’s total precious metal purchase of 2022 to 12.6 tons. The figure shows a decrease of 3 percent as compared with the same period of the previous year.

This year, the BoM branches in Darkhan-Uul and Bayankhongor aimags bought 1,274.2 kg and 884.8 kg of precious metals respectively.

The average price of BoM’s purchase of 1 gram of gold was MNT 189,702 last month.