Fitch Assigns Mongolian Mining's Proposed USD Notes 'B+' Rating www.fitchratings.com

Fitch Ratings - Hong Kong - 24 Mar 2025: Fitch Ratings has assigned coal producer Mongolian Mining Corporation's (MMC) proposed US dollar notes a 'B+' rating with a Recovery Rating of 'RR4'. The proposed notes will be issued by MMC and its wholly owned subsidiary, Energy Resources LLC, and guaranteed by most of its operating subsidiaries. The notes will constitute senior unsecured obligations of MMC as they represent its unsecured and unsubordinated obligations.
Net proceeds from this issuance will be used to refinance its outstanding notes due September 2026 and for general corporate purposes.
MMC's IDR is constrained by its concentration of end customers, small scale and the high country-risk for the mining operations in Mongolia.
Key Rating Drivers
Limited by Scale and Concentration: MMC's small scale, and product and geographical concentration constrain its business profile. MMC's EBITDA is small compared with Fitch-rated coal miners globally. We expect annual EBITDA to be above USD400 million in 2025-2027 due to stable volumes and a lower coking coal selling price. Washed coking coal products contributed to 97% of total revenue in 2024, in line with historical levels.
We believe that MMC's main end-customer base is in northern China, even though the share of the top 10 customers decreased substantially in recent years. MMC's heavy reliance on Chinese customers makes it vulnerable to economic conditions and regulatory changes in China. Although MMC's mine gate cash cost is in the first quartile of the global coking-coal cost curve, its cost advantage is limited to northern China. We believe additional transportation costs beyond the region will put MMC in the higher quartiles of the global coking-coal cost curve.
Country Risk Remains High: MMC's mining assets are all in Mongolia and subject to local regulations. We believe the volatile mining regulations have a meaningful impact on MMC's financials. This was the case during the Covid-19 pandemic when the effective rate for the royalty reference price was raised to over 20%, from 5%-8%, increasing financial pressure on MMC. The reference price has fallen and stabilised after the pandemic and the mining product exchange has established a more transparent reference price from October 2023, but the record of stable regulation is short.
Robust Operations: Border throughput after the pandemic averaged about 900 trucks a day in 2023 and around 970 trucks a day in 2024, above the 600-700 before Covid-19. A new mining commodity trading platform also expanded its customer reach and accounted for 50% of 2024 revenue. As a result, MMC's run-of-mine coal output rose to 16.3 million tonnes (mt) in 2024 from 10mt in 2019. Washed coking coal product sales rose to 7.8mt in 2024 from the historical average of 4.5mt-5mt. The average selling price (ASP) per tonne of washed hard coking coal stayed strong at USD168 in 2024, against USD160 in 2023.
Strong Financial Profile: We expect the EBITDA margin to trend down in 2025-2027 as coking coal prices fall but will remain above 40%, supported by steady volume and a low-cost position. We forecast EBITDA net leverage to remain below 0.4x in 2025-2027.
Acquisitions Drive Diversification and Growth: MMC started diversifying into other metals through its recent acquisitions of 50% of gold and precious metal exploration company Erdene Mongol LLC and 50.5% of copper and other non-ferrous metals exploration company Universal Copper LLC.
However, the coal segment will remain its dominant revenue contributor in the short to medium term. We do not expect aggressive M&A in 2025-2027, as management has indicated a cautious approach to acquisitions. Still, we will evaluate any debt-funded investment larger than Fitch expects as an event-driven risk and assess the effects on MMC's financial flexibility and credit profile.
Peer Analysis
MMC is a single-product coal miner, similar to Indonesia-based miner peers PT Indika Energy Tbk (BB-/Stable) and PT Golden Energy Mines Tbk (GEMS, BB-/Stable). Its operational profile in terms of mine life is over 20 years, against GEMS's around 17 years and Indika's around 16 years. Still, MMC's concentrated customer base and Mongolia's volatile mining regulations compare unfavourably with that of rated peers.
Compared to Indika, MMC is slightly larger in terms of EBITDA due to a high EBITDA margin of above 40%, against Indika's margin in the low teens. MMC's EBITDA net leverage was lower than Indika's in 2023. Compared with GEMS, MMC is smaller in terms of EBITDA, but MMC's EBITDA margin is higher than GEMS' 25%. GEMS also has better leverage, with a net cash position at end-September 2024.

China flexes rare earth dominance with million-tonne discovery www.mining.com

China solidified its global dominance in rare earth elements mining with a new discovery that its experts say is likely to be the largest middle and heavy rare earth deposit in the country.
The discovery was first reported in the Chinese paper Workers’ Daily late January, then confirmed and published by the China Geological Survey (CGS) under the Ministry of Natural Resources.
According to the CGS, the deposit could host as much as 1.15 million tonnes of resources containing key rare earth elements such as praseodymium, neodymium, dysprosium and terbium, which are being sought after globally. Once tapped, it would yield about 470,000 tonnes of these strategic minerals, it estimated.
The discovery is located in the southwestern province of Yunnan, which is known for its rich endowment of minerals and has some of the largest deposits of aluminum, zinc and tin in China.
Breakthrough discovery
Chinese media claim that the new discovery represents another breakthrough in its mineral exploration, as it is the first super-large ion-adsorption type deposit found in the country in over half a century.
Rare earth minerals on this type of deposit are naturally concentrated and absorbed onto clay surfaces, making them relatively easy to extract through environmentally sensitive methods like ion exchange. The last such discovery dates back to 1969 in the eastern Chinese province of Jiangxi.
The new find, according to CGS experts, is predominantly middle and heavy rare earth minerals, which are essential raw materials for electric vehicles, renewable energy and national defense security. Light rare earths used in permanent magnets, on the other hand, are much more abundant in China and mainly distributed in areas such as Inner Mongolia.
“The discovery is highly significant for strengthening China’s advantage in rare earth resources, improving the rare earth industry chain, and further consolidating China’s strategic dominance in medium and heavy rare earth resources,” the CGS posted on its public WeChat account, later reported by the South China Morning Post (SCMP).
This massive rare earth find follows the CGS’s recent establishment of a national geochemical baseline network, which is designed to help generate extensive data and advance mineral exploration techniques.
Rare earth dominance
The discovery reinforces China’s world-leading position in the rare earth mining sector. The Asian powerhouse controls roughly 60% of rare earth production and 85% of processing capacity worldwide. As of 2023, its total mine production was 240,000 tonnes, nearly six times that of the US, the next leading producer and its main rival.
According to the US Geological Survey, China’s catalog of REE deposits currently includes 17 metal oxides contained within 44 million tonnes of resources. These include the world’s largest rare earths mine, Bayan Obo, in Inner Mongolia.
Customs data showed that Chinese rare earth exports rose 6% last year to 55,431 tonnes.

Discussion Held on Livestock Fattening Technology and Meat Export www.montsame.mn

Under the "Atar-4" Sustainable Agriculture Campaign being implemented by the Government of Mongolia, "Technology Week" is taking place in Darkhan-Uul aimag to introduce innovations and advanced technologies in the agricultural and intensive livestock farming sectors.
Within the framework of "Technology Week," discussions were held on introducing livestock fattening technology to increase meat production, developing a value-added chain for meat exports, meat export and livestock health, and protected livestock farming models. These discussions focused on experience-sharing and collaboration opportunities. 
During the discussion, Minister of Food, Agriculture, and Light Industry of Mongolia Enkhbayar Jadamba emphasized the importance of expanding cattle breeding. Minister Enkhbayar noted that this sector plays a critical role in ensuring agricultural diversification, improving food security, creating new export opportunities, and enhancing rural livelihoods. To achieve these goals, the Minister highlighted the need to strengthen the feed industry by promoting high-yield fodder crops, expanding haymaking, silage, and green fodder production, and modernizing veterinary services. Additionally, Minister Enkhbayar stressed the importance of implementing public-private partnerships to improve access to veterinary services, noting that in order to produce competitive products for export markets, attention must be given to processing, cold chain systems, and certification standards.
Moreover, the Ministry of Food, Agriculture, and Light Industry of Mongolia stated that innovation plays a crucial role in modernizing the sector and increasing efficiency. The Ministry emphasized the need to introduce advanced breeding techniques, and genetic improvements and implement smart livestock management and digital platforms, support research on livestock feed efficiency, meat quality, and climate adaptation, and promote policies that encourage youth and new innovators to participate in the industry.

Third Session of the Economic Development Council of Mongolia Convenes www.montsame.mn

The third session of the Economic Development Council under the Prime Minister of Mongolia took place on March 24, 2025.
The Cabinet plans to submit a draft Law on Amendments to the Law on Tax and Social Insurance of Mongolia, based on the proposals of citizens and enterprises, to the State Great Khural (Parliament) of Mongolia. The amendments aim at creating a business-friendly tax environment that is fair and just, fairly supporting enterprises and good taxpayers, creating jobs, and reducing tax spending. With the amendments to the laws, the Government aims at creating a business-friendly and job-creating as well as a fair and just tax environment, supporting honest and good taxpayers, and reducing tax costs.  Therefore, it is important to consider the presentations on reforming the tax and social insurance laws and the opinions of Council members and reflect them in the draft Law on Amendments to the Law on Tax and Social Insurance, emphasized Prime Minister Oyun-Erdene Luvsannamsrai.
The newly established Council is composed of 41 representatives from scientific organizations, universities, professional associations, and management and investors of Mongolia's leading companies.

Debt-to-Income Ratio for Consumer Loans Aligned with International Practices www.montsame.mn

During its 2025 regular session, the Monetary Policy Committee of the Bank of Mongolia made the decision to increase the policy interest rate by two percentage points to 12 percent, taking into account the current state of the economy, banking, and financial markets, the external and internal domestic risk factors. 
The Monetary Policy Committee revised the debt-to-income ratio (DTI) cap for newly issued and restructured consumer loans to 50 percent. For loans secured by pension and welfare benefits, a new regulation requires that borrowers retain an income level at or above the minimum standard of living after making their monthly loan payments. 
The Monetary Policy Committee highlighted that rising prices in state-regulated services and their cost pass-through effects are intensifying inflationary pressures and posing risks of further acceleration. Given these concerns, the Committee opted to tighten monetary policy by increasing the policy rate by two percentage points to stabilize inflation at its target level. The decision also reflects the impact of falling export commodity prices, rising external sector vulnerabilities, and inflationary pressures driven by demand cost factors. Raising the policy rate to 12 percent is expected to curb inflation expectations and stabilize financial markets. 
As of the end of 2024, the total outstanding balance of consumer loans in the banking system had reached MNT 11.4 trillion, reflecting a 35.5 percent increase compared to the same period in 2023. Of this growth, salary-backed loans accounted for 23.7 percentage points, while pension loans contributed 5.3 percentage points. On average, households allocate no less than 48 percent of their monthly income toward basic living expenses. However, many borrowers tend to take out loans at the maximum DTI cap of 55 percent.  
Data revealed that 53.2 percent of pension recipients currently have outstanding pension loans, with an average DTI ratio of 84 percent. Pension loan borrowers often struggle with high repayment burdens and tend to restructure their loans before fully repaying their existing obligations. This pattern indicates financial dependence and growing repayment challenges. In response, the new regulations ensure that pension and welfare loan borrowers retain an income level above the minimum living standard after making loan payments. 
Rising wages have expanded borrowers’ access to credit, leading to excessive consumer loan growth and, consequently, exerting pressure on the balance of payments and exchange rate stability. To mitigate these risks, the Committee emphasized the need to limit the rapid expansion of consumer lending. Setting the DTI cap at 50 percent aligns with international best practices while shifting bank credit toward business loans is expected to support employment and ensure sustainable economic growth.

Aspire Receives Global Tender Submissions for CHPP and Erdenet Rail Terminal Infrastructure www.aspirelimited.com

Aspire Limited (ASX: AKM) is pleased to advise that it has received multiple tender submissions for the design,
procurement, supply, construction management, and commissioning of its planned Coal Handling and
Preparation Plant (CHPP) and coal handling infrastructure at the Erdenet Rail Terminal (ERT). The development
of this infrastructure is a critical milestone in advancing the Ovoot Coking Coal Project, and the receipt of these
tenders marks significant progress.
To ensure a streamlined and competitive international tender process, Aspire partnered with Procurement Co.,
an Australian-based procurement specialist consultancy. Leveraging their expertise in contract management and
industry benchmarking, the Company conducted a global tender process to secure cutting-edge technologies and
cost-efficient construction solutions, facilitating rapid construction and seamless production ramp-up.
Participants were invited to tender based on their proven experience in designing, constructing, and
commissioning world-class coal processing and material handling infrastructure, particularly in extreme cold
climates such as northern Mongolia.
Aspire is now evaluating multiple submissions from companies headquartered in Mongolia, Australia, China, and
South Africa, all of which have extensive on-the-ground experience in Mongolia. This competitive selection
process ensures that global best practices in coal processing and infrastructure development are integrated. The
Company anticipates completing the evaluation and moving to contract negotiation and award within Q2 2025,
with project execution expected to commence shortly thereafter.
The Scope of Works for both the CHPP and ERT coal handling infrastructure included in the Request for Tender
package was aligned with the world-class concepts and designs resulting from the previously completed Front
End Engineering Design (FEED) studies. Concept and trade-off studies were undertaken as part of the FEED
studies to determine the best overall solutions, including in addressing community concerns about containing potential dust and minimising water use.
Construction and commissioning of the CHPP and ERT coal handling infrastructure is strategically important to
Aspire for several key reasons:
• It will facilitate the creation of a value-added product in Mongolia, that is deliverable directly to end-users
and ensure that margins remain within the Company and Mongolia.
• The processing of raw coal into a higher-value product will reduce transportation and logistics costs by
lowering overall shipment volumes. This will also decrease the number of trucks on the road and reduce
the required capacity on the Trans-Mongolian Railway.
• It will enhance the efficiency and cost competitiveness of truck transportation between Ovoot and the
ERT, with the semi-automated truck loading and unloading systems enabling rapid, dust-free loading and
unloading, whilst also ensuring that trucks will not need to depart from the paved road; and
• Rail wagon loading at the ERT will be enhanced with rapid, dust-free processes, improving the efficiency
of railing operations and ensuring timely delivery of washed coking coal to end-user customers.
Aspire remains committed to executing this project efficiently while adhering to world-class standards and best
practices, ensuring that the Ovoot Coking Coal Project continues to progress towards successful operation.
This announcement has been authorised for release by the Board of Aspire Limited.

Mongolia Introduces Its First 3D Virtual School www.montsame.mn

Steppe fire kills over 7,500 head of livestock in Mongolia www.xinhuanet.com

More than 7,500 head of livestock have been killed in a steppe fire in Mongolia, the country's National Emergency Management Agency (NEMA) said on Monday.
Meanwhile, a total of 39 families lost their homes in the steppe fire in eight provinces, the agency said in a statement.
The NEMA warned residents of Ulan Bator and other provinces not to make bonfires or throw cigarette butts on the ground in dry weather.
Mongolia remains one of the world's leading countries in terms of the number of livestock per capita. However, the country's livestock sector is highly dependent on various natural factors, including extreme weather conditions in the winter and dry and windy weather conditions in the spring.
The total number of forest and steppe fires across Mongolia at the end of 2024 reached 137. Most were recorded in the eastern Mongolian provinces of Sukhbaatar, Khentii, and Dornod, according to new data released by the agency.

Mongolia: RSF condemns arbitrary police operation against independent media outlet Noorog www.rsf.org

Reporters Without Borders (RSF) condemns the police’s raid on the newsroom of the independent digital outlet Noorog, overnight questioning of Noorog’s staff and confiscation of their professional equipment. This arbitrary operation was based on the bogus accusation that Noorog had "undermined national unity" and followed the outlet's announcement for their upcoming documentary on the country’s recent elections.
On 17 March 2025, Mongolian police raided the independent media Noorog’s newsroom in Ulaanbaatar, the capital of Mongolia. The police seized computers, hard drives as well as employee’s personal phones. Eight staff members — almost the entire team — were interrogated from 10 p.m. until 6 a.m., when they were released. 
The journalists were initially questioned under the pretext that they had "undermined national unity," an offence punishable by up to twelve years in prison under the Mongolian Criminal Code, yet officials changed the accusations multiple times, wavering from “illegal online gambling activities” to “spreading false information” to “causing the suicide of others.” The charges of national unity and false information were eventually dropped. 
Noorog’s journalists say they were only questioned about their professional activities, including content produced by the outlet. They suspect the case is linked to their recent announcement that they will be releasing a documentary on Mongolia’s elections in June. In the documentary, journalists follow six citizens during the country’s 2024 parliamentary election campaign, exposing the strategies used by political parties to influence voters.
“This search, carried out under an obviously false pretext, is intolerable and a serious attack on source confidentiality and press freedom. We call on the Mongolian authorities to abandon the abusive proceedings brought against Noorog's team, and on the country’s lawmakers to strengthen the right to protect the confidentiality of journalists’ sources within the framework of the press freedom law currently being debated in Parliament.
Cédric Alviani
Director, RSF Asia-Pacific
Founded in 2022, Noorog has built a strong presence on social media, producing video reports and investigative content often critical of the government. In a recent report, the outlet challenged the government’s claims of progress in fighting corruption, providing data to support its findings.
The ongoing deterioration of press freedom
The raid on Noorog is part of a worrying decline in press freedom in Mongolia, which has dropped 36 places in the RSF World Press Freedom Index since 2020. This repressive climate is further illustrated by the prosecution of Bayarmaa Ayurzana, editor-in-chief of the online media outlet Tac.mn, who faces up to eight years in prison for investigating a case of embezzlement of public funds linked to the Deputy Prime Minister. In a hearing held on 21 March, the judges postponed the trial to an unknown date.
The proceedings against journalist Unurtsetseg Naran also raised serious concerns about judicial fairness. Although she was pardoned on 8 March by Mongolian President Ukhnaagiin Khürelsükh, her case — from her sentencing in a closed-door trial to the conditions of her release — has been shrouded in complete secrecy.
In response to this worrying trend and the government’s planned reform of the press freedom law, RSF has submitted recommendations to Mongolian lawmakers on strengthening legal protections for journalists.
Mongolia ranks 109th out of 180 countries and territories in the RSF 2024 World Press Freedom Index. The press freedom situation is considered “difficult,” due to frequent abusive criminal proceedings against journalists under the pretext of defamation, as well as a high concentration of media ownership in the hands of the economic and political elites.

Mongolia to Perform Its 400th Kidney Transplant Surgery www.montsame.mn

Mongolia is set to perform its 400th kidney transplant surgery since its first successful transplant. 
Since its first attempted kidney transplant operation in 1996, Mongolia spent nearly a decade preparing by improving medical equipment, staffing, and laboratory facilities. Since 2006, kidney transplants have been successfully performed. Between 2008 and 2018, two patients underwent kidney transplants each year. In 2019, the number increased to 11, followed by 6 in 2020, 8 in 2021, 4 in 2022, 4 in 2023, and 10 in 2024. The transplants were performed using organs from donors who had been medically determined to have experienced irreversible cessation of brain function. Currently, 318 patients who have undergone kidney transplants in Mongolia and 184 who received transplants abroad regularly visit for medical check-ups and receive free medication.
The First Central Hospital of Mongolia has planned to perform kidney transplants for 60 patients this year. Of approximately 400 kidney transplant recipients, 57 received organs from donors who had been medically determined to have experienced irreversible cessation of brain function. Currently, around 700 patients are awaiting organ donors to undergo surgery.
As of 2024, 262 patients in Mongolia were undergoing dialysis as part of kidney replacement therapy, while 2,988 patients received hemodialysis treatment. Among them, 49 were children aged 0-19, 832 were aged 20-44, 1,481 were aged 45-64, 457 were aged 65-74, and 169 were aged 75 and older.
Regrettably, in 2024, the number of patients reaching the final stage of chronic kidney failure and requiring hemodialysis increased by 607 within a year. Over the same period, 167 patients diagnosed with kidney failure passed away, while 50 patients successfully underwent kidney transplants, eliminating the need for dialysis treatment.
The National Kidney Transplant Team at the First Central Hospital of Mongolia currently accommodates patients within its three beds, allowing for six surgeries per month.