Delegation from Nuclear Energy Agency visits Mongolia www.akipress.com

Nuclear Energy Agency Director General William D. Magwood IV visited Mongolia for a series of meetings with government representatives and to participate in discussions on nuclear energy development in the country, Nuclear Newswire.
Magwood met with Minister of Energy Battogtokh Choijilsuren to discuss the potential deployment of small modular reactors in Mongolia, as well as challenges in the nuclear energy sector related to financing, supply chain disruptions, and workforce development.
He highlighted the NEA's work on these topics and on the analysis of SMR projects around the world, as documented in the NEA SMR Dashboard—a comprehensive assessment report of the progress made by SMR developers worldwide first published in 2023 and updated periodically.
During the visit, which took place on February 20-21, meetings were held with Mongolian officials such as director general of the International Trade and Economic Affairs Department in the Ministry of Foreign Affairs Ulziisaikhan Ganbold, state secretary of the Ministry of Industry and Minerals Javkhlanbaatar Sereeter, and secretary of the Nuclear Energy Commission Manlaijav Gun-Aajav.
The discussions focused on the process of preparing for the adoption of nuclear energy technologies, including through the development of legal frameworks and regulatory requirements, expanding local workforce and education programs, and fostering public trust. Magwood emphasized the importance of international cooperation in each of those areas.
Magwood also visited the National University of Mongolia, where he engaged in discussions with students and staff and gave a lecture on the opportunities and challenges in the nuclear sector. He headlined an event titled Clean Energy Transition and SMR Workshop: Towards a Roadmap for Nuclear Energy in Mongolia, where he provided keynote remarks and moderated a panel on nuclear energy's role in the future energy mix of the country.

China deploys rare earths as weapon in trade war with Trump www.mining.com

China has expanded its use of critical minerals as a trade weapon with curbs on exports of rare earths, threatening to shake-up the global supply of key materials used widely in high-tech manufacturing from electric vehicles to weaponry.
As part of its retaliation to President Donald Trump’s so-called reciprocal tariffs on imported Chinese goods, Beijing said Friday it will tighten controls on exports of seven types of rare earths. The country is by far the world’s biggest supplier of the minerals, which comprise 17 elements in the periodic table.
The move triggered big gains for related stocks on Monday, with China Rare Earth Holdings Ltd. rising as much as 10% in Hong Kong. China Northern Rare Earth Group added as much as 9.2%, and Australia’s Lynas Rare Earths Ltd. as much as 5.1%.
China accounts for almost 70% of the world’s production of rare earths, according to the US Geological Survey. Its grip on a host of niche commodities has long been viewed as a potential geopolitical weapon, given America’s reliance on Chinese supplies.
Beijing had already rolled out similar curbs on other critical minerals, such as gallium, germanium, graphite and antimony, over the past two years amid rising trade tensions.
The latest export controls aren’t a blanket ban, but they mean that any overseas shipments will be subject to greater scrutiny over who is buying, and why. Other metals have seen export volumes crash to zero after controls were rolled out, with exporters needing time to get certified.
“The new controls may further tighten global supply,” analysts from Citic Securities Ltd. said in a note. The policy “safeguards China’s national security interests, and bolsters the strategic value of investing in the rare earth industry chain,” they wrote.
Supply chain
The list of rare earths announced Friday includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. But two of the most common — neodymium and praseodymium — weren’t included. They’re used in powerful magnets that are one of the best-known applications for rare earths.
“Unlike the seven rare earths selected, these are more readily available outside China, which could make any controls less impactful,” said David Abraham, affiliate professor at Boise State University in Idaho. “They may have been excluded to preserve the option of future controls.”
The export restrictions won’t harm the stability of the international supply chain, according to a statement from the China Nonferrous Metals Industry Association on Sunday.
“As long as companies do not engage in activities that harm China’s national sovereignty, security and development interests, the export control measures won’t affect their normal operation and trade,” the industry body said.
On Friday, China’s commerce ministry said establishing the controls on so-called dual-use items that have military applications is in the interests of national security, regional stability and world peace.

Transporters Submit Formal Request to Change Road Load Control Standards of Mongolia www.montsame.mn

Ulaanbaatar Begins Installing Cable Car Pillars www.montsame.mn

Within the Tuul River basin area, six support pillars are currently under installation as part of the Ulaanbaatar Cable Car Project.
This Project is one of Ulaanbaatar's 24 mega projects. The first line of the cable car is now under construction, with six of its 19 support pillars being built in the Tuul River floodplain area ahead of the spring runoff and seasonal flooding.
The second line of the Project will stretch 2.7 kilometers from Shangri-La to the National Garden Park, featuring three stations and 70 to 74 cabins. The cable car project is expected to alleviate peak-hour traffic congestion, mitigate bottlenecks in the Yaarmag and Nisekh areas, and increase the average speed of city traffic by 4 percent.
Each cabin will accommodate up to 10 passengers, with a travel time of approximately 11 minutes. The support pillars will range in height from 7.5 to 42 meters, and the cable cars will operate at a speed of 21 kilometers per hour.

Procedure for Granting Tax Incentives to IT Companies Ready for Submission to the Government www.montsame.mn

Following the proposals from the members of the National Council of Mongolia, aimed at submitting the Law on Supporting the Information Technology Industry and formulating the IT sector's policy and directions, procedures on regulating the operation of the virtual zone, as well as provisions for tax and non-tax incentives for the IT sector have been finalized and ready to be submitted to the Government of Mongolia.
The National Council is chaired by Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai, with Minister of Digital Development and Communications of Mongolia Baatarkhuu Tsend serving as Deputy Chair, and Director of the National Information Technology Park Zolzaya Jargalsaikhan acting as Secretary. The National Council also includes representatives from the private sector and universities. 
These procedures and incentives are expected to boost the growth of Mongolia's information technology sector, driving innovation and advancement of high technology. Accordingly, the Government of Mongolia is pursuing a policy aimed at supporting IT companies through tax and non-tax incentives. 
The National Council has so far developed key documents, including the National Strategy for Developing the Information Technology Industry and Advanced Technologies, the operational procedure for the virtual zone, and procedures for providing tax and non-tax support.

Mongolia to Export Certain Goods Tariff-Free to Eurasian Economic Union Countries www.montsame.mn

Mongolia and the Eurasian Economic Union have held the third round of negotiations on the "Concluding the Interim Free Trade" Agreement and agreed on products to be supplied tariff-free or with reduced tariffs.
A total of 367 types of goods will be exported tariff-free from Mongolia to the countries of the Eurasian Economic Union (Russia, Kazakhstan, Belarus, Armenia, Kyrgyzstan). Specifically, 29 types of meat and meat products, 60 types of leather products, 204 types of wool and cashmere products, and 73 types of other agricultural products will be duty-free. This will allow exporting entities of Mongolia to be exempted from customs duties of USD 16.6 million per year. 
First Deputy Prime Minister and Minister of Economy and Development of Mongolia Gantumur Luvsannyam noted, "The Government can increase meat exports in cooperation with the Eurasian Economic Union and earn USD 500 million.
Our country exports meat to these countries to a certain extent, but we currently do not export sheep and goat meat. These issues can be resolved through negotiations, enabling the export of meat throughout all four seasons of the year. It is also possible to establish cashmere and knitted goods brands and export them to the Eurasian market to earn at least USD 500 million."
The Policy Research Laboratory of the National University of Mongolia studied the economic impact of Mongolia joining the Eurasian Economic Union free trade agreement. An analysis of Mongolia's foreign trade situation showed that 375 types of goods account for a very small share of total exports and may decrease from year to year. The imports from the EAEU countries can be greater than domestic production and exports, according to the study.
N. Otgonsaikhan, Professor of the Department of Marketing and Trade of the National University of Mongolia, noted, "Mongolia exported goods worth USD 110.1 million to the EAEU countries last year and imported goods worth USD 2.9 billion. With the negotiations, exports are predicted to increase by 3.8 percent and imports by 4.7 percent. This shows how much the trade balance deficit will be. Most of the increase in imports is in the industrial sector. This sector, which is aimed at restoring through the implementation of state policies and programs, will be negatively affected by the growth. Therefore, if the agreement is concluded, it is important to make the industrial sector competitive. There is an opportunity to export certain products in the textile and knitting sector. Revenue from it is possibly increased by USD 200-300 thousand. In the agreement with Japan, there was a case in which our carpets did not meet the rules of origin requirements. Based on previous experience and solving the issues, we can increase exports. Within the framework of the negotiations, customs duties on key goods were eliminated. However, if we do not meet the rules of origin and other requirements, preferential tariffs are useless. Therefore, I would like to say to manufacturers, be very well prepared."

Ch.Lodoisambuu: A bill will be submitted to exempt employers from VAT paid on behalf of employees www.gogo.mn

Ch.Lodoisambuu, Member of the Parliament, announced that he is working with B.Tuvshin, the Member of Parliament, to amend the Law on Social Insurance. The proposed changes include:
Stopping the collection of VAT on one-time work payments made under a separate employment contract with an organization.
Exempting employers from VAT paid on behalf of employees. Although contributions are made in the name of employees, they do not affect pensions.
Stopping VAT charges on discounts and incentives provided by employers to employees outside their salaries.
The bill is expected to:
Reduce the financial burden on individuals and businesses, encouraging economic activity.
Allow employers to allocate more funds to salary increases and job creation by lowering VAT obligations.
Prevent VAT related cost increases from being passed on to consumers, helping to stabilize prices.

Mongolia–European Union Joint Committee Holds Its 23rd Meeting www.montsame.mn

The 23rd Meeting of the Mongolia–European Union Joint Committee was held in Ulaanbaatar, the capital city of Mongolia, on April 4, 2025.
At the Meeting, the two parties exchanged updates on the latest political, social, and economic developments and discussed ways to further expand Mongolia–European Union relations and cooperation under the shared long-term development goals. In particular, the two sides discussed strengthening collaboration in renewable energy and green transition, as well as increasing trade turnover by elevating the EU’s Generalized Scheme of Preferences.
The two sides also exchanged views on combining efforts to contribute to addressing climate change, with a shared commitment to effectively implementing the measures outlined in the roadmap for the “Forest Partnership” Memorandum of Understanding. The Meeting also reviewed the outcomes of the latest sessions of the Human Rights Dialogue and the Development Cooperation Working Group held under the Joint Committee. A joint press release was issued following the 23rd Meeting of the Mongolia–EU Joint Committee.
Munkhtushig Lkhanaajav, State Secretary of the Ministry of Foreign Affairs of Mongolia, and Paola Pampaloni, Deputy Managing Director for Asia and the Pacific at the European External Action Service, co-chaired the 23rd Meeting.

TMK turns jets on in Mongolia as it sets new gas production record www.thewest.com.au

TMK Energy has turned on the jets with a new record month of gas production, in which it boosted output by 10 per cent to more than 10,000 cubic metres of gas from its Pilot Well project in southern Mongolia.
The project, which is part of the company’s wider Gurvantes XXXV coal seam gas project, also smashed out a new record daily gas volume during the month.
Management says the first occurrence of gas slugs, which are large high-pressure bubbles of gas forming in its Lucky Fox wells LF-04 and LF-06, imply the pilot well program is heading towards critical desorption pressure.
It believes the reservoir pressure is continuing to decline towards the critical desorption level, providing an overall improvement in the depressurisation of the reservoir. The decline was confirmed last month by a pressure build-up test.
The company plans to conduct a further pressure build-up test on its LF-02 well for a comparison with readings taken about 12 months ago to check the progress made towards reaching critical desorption pressure.
The test should provide definitive readings of the reservoir pressure and point to where it sits relative to the targeted critical desorption pressure.
The project continues to show encouraging signs with many of the pilot production wells delivering record monthly gas rates together with the first evidence of gas slugging from the coal seams, indicating we are progressing towards critical desorption pressure.
TMK Energy’s chief executive officer Dougal Ferguson
One of its key objectives this year is to reduce the reservoir pressure below the critical desorption pressure, which is one reason why the company drilled the three additional production wells. Gas rates are anticipated to increase substantially when the objective is achieved.
Management has begun planning for at least one additional pilot production well in the immediate vicinity of the existing Lucky Fox wells.
An additional well will assist in meeting the company’s licence commitment for further pilot wells this year and boost the production capacity at the complex.
TMK believes it can start to drill the additional well before the end of June, which would help to lift its production volumes and potentially add to gas sales under its gas sales agreement with Jens Energie LLC.
Additional wells help provide the extra pumping capacity needed to quickly reach the critical desorption pressures for the project to deliver an immediate uplift in gas production.
TMK recently implemented advanced Distributed Temperature Sensing (DTS) technology in wells LF-05 and LF-06 to provide it with valuable information on reservoir productivity.
Final DTS analysis confirms most of the water is being produced from the coal seams, not from adjacent aquifers or non-coal bearing zones, providing strong indication of coal seam permeability.
The DTS technology is designed to identify zones of increased gas and water influx or permeability, for increased economic viability.
The company’s new production record was achieved despite one of its better production wells, LF-05, recording significant downtime for a pump clean-out and workover.
LF-05 is the sole well not producing while remedial actions are being taken to bring it back into production.
The company expects to shortly produce commercial rates of gas from the project across 60 square kilometres in the Nariin Sukhait area of Mongolia’s vast countryside.
The company’s contingent resource (2C) of 1214 billion cubic feet (BCF) of natural gas is Mongolia’s biggest. The project currently contains a 5300BCF prospective resource across its total 8400-square-kilometre ground.
Like many nations, Mongolia is keen to transition away from energy produced from burning coal. Coal seam gas is considered ideal as a “clean transition fuel” because it produces about half the carbon emissions produced by coal-generated electricity and burns cleaner than other fossil fuels.
TMK believes its Gurvantes XXXV project can become a regionally significant, reliable source of natural gas for both Mongolia’s domestic market and regional energy infrastructure.
The project’s proximity to northern China’s gas pipelines places TMK in a pre-eminent position.
With TMK’s production numbers ramping higher every month, the company is well-placed to become a leading energy contributor to the region.

Balancing Act Between the Two Koreas: Mongolia’s Handling of North Korean Refugees www.sites.duke.edu

Mongolia has become a popular destination for Democratic People’s Republic of Korea (DPRK) – or North Korean – defectors seeking refuge since the mid-1990s. As a signatory to the UN Human Rights Convention, Mongolia is bound by international law to welcome these refugees regardless of their diplomatic relations with the DPRK. However, amidst the delicate geopolitical landscape and heightened tensions between the two Koreas, Mongolia must act cautiously to maintain diplomatic equilibrium. Taking these refugees and sending them to the Republic of Korea (ROK) – or South Korea – would trigger their diplomatic relationship with the state. Striking a balance between humanitarian obligations and diplomatic considerations remains a delicate challenge for Mongolia.
Mongolia’s relationship with Korea
Since Korea’s partition, Mongolia has maintained longer diplomatic ties with the DPRK than the ROK. When the DPRK was established in 1948, Mongolia became the second nation to recognize the DPRK’s sovereignty after the Soviet Union. Due to their shared socialist goals, both nations gained independence with the assistance of the Soviet Union. Although Mongolia did not directly participate in the Korean War, it provided humanitarian aid helping alleviate the hardships that the DPRK faced during the conflict. Mongolia then maintained a positive engagement with the DPRK until the late 1990s. 
With Mongolia’s transition to democracy, it established diplomatic relations with the ROK. Mongolia sought economic aid from the ROK following the sudden end of Soviet investment. Mongolia implemented a “third neighbour strategy” aimed at reducing the economic dominance of Russia and China, seeking relations with other countries. 
Despite their relatively new relationship, the ROK has become the fourth largest trade partner of Mongolia. The ROK sees Mongolia as having complementary value: the ROK is an energy-importing nation with advanced technologies, and Mongolia has abundant natural resources. Furthermore, notions of K-wave and Korean Wind had a mass cultural and social impact among Mongolians since their market transition.
North Korean refugees in Mongolia
Mongolia possesses the capacity to facilitate upcoming summits between the DPRK and the United States. Its involvement in key events like the Ulaanbaatar Dialogue, the Asia-Europe Meeting in 2016, and the 2014 gathering concerning Japanese abductees underscores its diplomatic experience and potential. However, Mongolia faces a significant challenge in the ongoing conflict between the two Koreas. While Mongolia and the ROK share democratic values and human rights principles, the authoritarian regime in the DPRK presents challenges to sustaining long-lasting diplomatic ties.
One significant factor contributing to this instability is Mongolia’s handling of DPRK refugees. Usually, DPRK defectors in Mongolia are sent to the US or ROK. The ROK has received approximately 31,000 DPRK defectors since the 1950s. Many of these defectors crossed into China before reaching a third country (Mongolia) en route to the ROK. However, these immigrants also include diplomatic officials, so it is challenging to estimate how many of them are refugees. Mongolia’s inconsistent approach to handling DPRK refugees underscores its struggle to balance its commitment to democratic values with its diplomatic agenda involving all nations, including the DPRK.
To gain insight into the significance of these crossings, I discussed with three individuals who have firsthand experience with the DPRK refugee process in Mongolia. Interviewee 1 is a well-known YouTuber and author based in the US who escaped from the DPRK to the US. I asked how Mongolia assisted them in reaching the ROK, and about their experience in Mongolia. They recounted that Mongolian border soldiers would engage in games of psychological manipulation, threatening to repatriate them to China or the DPRK. The soldiers did not adhere to proper protocol as dictated by their laws and regulations. Nevertheless, they were ultimately sent to the ROK.
Interviewee 2, is currently a border customs inspector stationed at the pivotal border crossing between Mongolia and China, located in Zamiin Uud, in Dornogovi province. During our discussion, I asked about their experiences witnessing DPRK refugees crossing Mongolia’s border. They said that typically refugees would illegally cross during the night when inspection points are closed. They highlighted that it was the soldiers’ responsibility to manage these crossings. After inquiring about Interviewee 1’s negative experience with Mongolian soldiers, the inspector did not deny it. They said it was highly likely that soldiers could become bored in the desolate borderlands and may have mistreated the refugees as a result. 
The final subject was a Mongolian border soldier who provided crucial insights. They shared a specific incident from 2006 when they single-handedly assisted three refugees. They noted that diplomatic relations between Mongolia and the DPRK seemed strained during that time. Border soldiers were instructed to escort refugees to official stations, where they underwent questioning before being handed to the ROK embassy. From there, the ROK assumed responsibility for their onward journey from Mongolia. 
Interviewee 1’s escape to Mongolia in 2007 and subsequent transfer to the ROK serves as a notable example of successful refugee resettlement. Regarding the treatment of refugees, while crossing the border, the soldier acknowledged instances of both positive and negative encounters. While Interviewee 1 is known to be an unreliable source in the US due to their political activism and inconsistent stories, both Mongolian officials hinted at the possibility of negative incidents occurring occasionally in the past. Some Mongolians are in denial about such testimonies, asserting that Mongolian soldiers would not point a gun at innocent people. Others argue that it is expected for defectors to face negative treatment in any country if they illegally cross their border.
In conclusion, for a country like Mongolia with little strategic power, remaining neutral in global conflicts and issues is critical in maintaining diplomatic relations. Being one of the few countries that has maintained a friendly relationship with the DPRK, Mongolia has safeguarded its capacity to mitigate potential tensions on the Korean Peninsula. However, as democratisation and expanded trade elevate the ROK’s significance as a partner in economic and cultural domains, Mongolia faces the challenge of harmonising its economic aspirations. Mongolia can enhance its international reputation and create more peace opportunities by maintaining a neutral stance and skillfully balancing relations with both Koreas.
By Effy Bat-Erdene