Mongolia welcomed 727,400 foreign tourists in 2024, a record high for the country's tourism sector, local media reported on Saturday, citing the National Statistics Office (NSO).

In addition to the record number of visitors, Mongolia generated 1.5 billion U.S. dollars in revenue from tourism in 2024, setting another all-time high, according to the NSO.

Tourism is regarded as a key sector in Mongolia's efforts to diversify its economy, which has traditionally depended on the export-oriented mining industry.

As part of this strategy, the government has declared 2023-2028 as the "Years to Visit Mongolia," aiming to attract at least 1 million foreign tourists annually.

In 2023, Mongolia hosted over 650,000 foreign visitors and earned 1.2 billion dollars in tourism revenue, both of which were records at the time.

At the meeting of the Standing Committee on Economics of the State Great Khural of Mongolia on January 15, 2025, Minister of Industry and Mineral Resources Tuvaan Tsevegdorj presented a report on informing local people about the issuance of mineral exploration licenses, the benefits of the mining sector, as well as the ongoing efforts to enhance the value of mineral products and the operations of the mining exchange.

Minister Tuvaan Tsevegdorj provided an overview of the operations of the mining exchange. The Law on Mining Exchange came into effect on June 30, 2023. With its implementation, a total of 14.9 million tons of coal and 604.8 thousand tons of iron concentrate were traded through the Mongolian Stock Exchange in 2023, generating a total revenue of USD 2.1 billion and an additional revenue of USD 155.3 million due to price increases. In 2024, a total of 859 transactions took place, trading 36.7 million tons of coal, 2.9 million tons of iron ore and concentrate, 17.6 thousand tons of fluorspar, and 6 thousand tons of copper concentrate, generating a total revenue of MNT 16.26 trillion.

Additionally, Minister Tuvaan informed on the issuance of mineral exploration licenses. According to the 1994 Minerals Law, exploration licenses were initially granted by application, then in 1997-2006, to individuals and legal entities also through application. Since 2006, licenses have been awarded through both competitive bidding and application, and from 2014, through application and competitive bidding. The 2017 Amendment to the Law stipulated that exploration licenses could only be granted through competitive bidding on areas designated by the government. In 2010, the Law on Prohibiting the Issuance of Exploration Licenses was adopted, resulting in no licenses being issued between 2010 and 2014.

Following the enforcement of the revised Law, competitive bidding for exploration licenses was incorporated into the Minerals Law. In accordance with the amendments, the selection procedure was approved, with exploration licenses being issued until April 2024. As of 2024, 74 percent of Mongolia’s territory was off-limits for exploration and exploitation. The Government of Mongolia designated 8.4 million hectares, and in 2023, 8.6 million hectares, totaling 17 million hectares, as available for exploration. As of December 16, 2024, there are 2,726 valid licenses, of which 981 are exploration licenses and 1,632 are exploitation licenses, covering 4.38 percent of the country’s territory. Between 2018 and 2024, 533 exploration licenses were granted through competitive bidding, contributing MNT 177 billion to the State Budget.

The Orano Group has signed an investment agreement for the development and operation of the Zuuvch-Ovoo uranium mine in Mongolia's southeastern Dornogovi province. The signing ceremony took place on January 17th in Ulaanbaatar, in the presence of representatives of the Mongolian government, Laurent Saint-Martin, Minister Delegate for Foreign Trade and French Nationals Abroad, Nicolas Maes, Orano CEO, and Xavier Saint Martin Tillet, Senior Executive Vice President of the Group's Mining Business Unit.

This agreement, ratified by the government after being put before the Mongolian parliament, marks 27 years of presence and partnership in Mongolia.

Under the terms of the agreement, Badrakh Energy, a joint venture between Orano and Mongolia's state-owned MonAtom Group, will be responsible for the industrial operation of the major Zuuvch-Ovoo and Dulaan Uul / Umnut deposits, which have estimated uranium resources of close to 90,000 tonnes.

With a 30-year estimated lifespan, the project represents an initial investment of around $500 million before the deposit comes on stream, and a total of $1.6 billion over the mine's lifetime, creating 1,600 direct and indirect jobs.

Development of the project is planned to take 4 years, after which the Zuuvch-Ovoo mine will go into production, with an estimated nominal capacity of around 2,500 tonnes of uranium per year.

The Franco-Mongolian project will apply international standards and state-of-the-art techniques in terms of safety, security and the environment, setting a benchmark for the development of the uranium industry in Mongolia.

Through this agreement, Orano is making a long-term commitment alongside the stakeholder communities focusing on responsible mining, with a program of development and cooperation that will be to the benefit of local people. The project also includes significant investment in the training of a qualified local workforce.

With uranium demand set to be strong in the coming decades, Mongolia is positioning itself as a strategic player and a significant contributor in the global climate effort.

Nicolas Maes, Chief Executive Officer of Orano, commented: “We are very proud to sign this investment agreement, which lays the foundations for a mutually beneficial relationship for Orano and its Mongolian partners over the long term. Uranium production in Mongolia will contribute both to low-carbon electricity generation and security of supply for our customers”.

Prime Minister of Mongolia, Oyun-Erdene Luvsannamsrai, commented: “This agreement is a significant step forward in boosting inward investment and employment opportunities for the Mongolian people. It demonstrates our achievements in supporting economic growth and delivering on our aims set out it in the ‘New Recovery Policy’ and ‘Vision 2050’. Equally, it highlights our commitment to collaboration with our third neighbours. We look forward to further strengthening our strong relations with France.”

About Orano

As a recognized international leading operator in the field of nuclear materials, Orano delivers solutions to address present and future global energy and health challenges. Its expertise and mastery of cutting-edge technologies enable Orano to offer its customers high value-added products and services throughout the entire fuel cycle. Every day, the Orano group’s 17,500 employees draw on their skills, unwavering dedication to safety and constant quest for innovation, with the commitment to develop know-how in the transformation and control of nuclear materials, for the climate and for a healthy and resource-efficient world, now and tomorrow.

Orano, giving nuclear energy its full value.

Contacts

Press Office

+33 (0)1 34 96 12 15

press@orano.group

Investor relations

Marc Quesnoy

investors@orano.group

Rio Tinto and Glencore have been discussing combining their businesses, according to people familiar with the matter, Bloomberg reported.

The Australian mining giant and the Swiss commodities trader and miner have recently held “early-stage talks” about a deal, according to the newswire adding that “it’s unclear whether the talks are still live.”

Rio Tinto is the world’s second most valuable mining company and shares with its Melbourne-based neighbour BHP the distinction of being valued at more than $100 billion, but only just.

Rio Tinto’s stock was worth $103 billion on Thursday while Glencore, which in 2023 made an unsuccessful bid for Canada’s Teck Resources, is valued at $55 billion in London – placing it sixth.

As with BHP’s failed attempt to acquire Ango American last year a Rio Tinto and Glencore combination is centred around copper, thanks to the bellwether metal’s bright prospects as the central commodity enabling the global energy transition.

Together, Rio and Glencore’s copper production would rival that of BHP. Glencore’s guidance for 2024 is around the 1 million tonne mark while Rio Tinto’s upper target is 720 kilotonnes.

A Rio Tinto-Glencore combination would leapfrog long-running number one BHP, which is worth $125 billion, but mining’s top tier is trading well below their peak reached in the second quarter of 2022.

Another go

There have been many attempts for M&A at the top of the global mining industry, and not the first time Glencore had been at the centre of it.

In 2014, Glencore under former CEO Ivan Glasenberg, barely two years after gobbling up Xstrata for $90 billion to add a vast mining portfolio to its then high-flying trading business, made its first attempt to merge with Rio Tinto. That approach was quickly rebuffed.

The Glencore-Xstrata tie-up, that eventually resembled a hostile takeover more than a merger of equals, itself came about after Anglo American in June 2009 rejected a proposal to merge with Xstrata outright.

Rio Tinto does not have a great record of M&A either. In 2007, the company bought Alcan for $38 billion, paying a 65% premium for the Canadian aluminum maker to beat other suitors. In the following years as the cycle turned, Alcan-related writedowns ballooned to a stomach-churning $25 billion.

Another merger that quickly went nowhere was in 2008 when then BHP Billiton attempted to take over Rio Tinto. Regulators in a number of countries opposed the deal and BHP eventually walked away from the $116 billion deal with the onset of the great financial crisis, which did not spare the commodities world.

Big 5’s troubles

News of a possible merger comes at a difficult time for mining’s traditional big 5 – BHP, Rio Tinto, Glencore, Vale and Anglo American – that trace their roots back many decades if not more than a century.

According to the MINING.COM Top 50 ranking, together the stalwarts shed 25.3% or $119.7 billion of their combined value in 2024 as their bread and butter commodities – copper and iron ore – went into retreat.

The rampant dollar over the final months of 2024 only compounded losses: MINING.COM’s Top 50 considers performance in US$ market capitalisation terms, not share price changes in local currency on domestic exchanges.

In the past these companies would, apart from wobbles as the Chinese supercycle became just a cycle, consistently occupy the top five slots in the ranking, supported by vast asset portfolios covering a range of commodities across many regions.

Now the big diversifieds stocks – the mining industry’s now erstwhile version of the Mag 7 – make up less than 28% of the total index, down from a height of 38% at the end of 2022.

Vale, down 44.9% for the year, a dismal outcome made worse by the 22% fall in the real last year, is the ranking’s worst performer of the year.

Vale topped $100 billion in value briefly in 2022. Now the Rio de Janeiro based giant’s market cap is down to $37.7 billion and the counter has dropped out of the top 10 position pushed out by Indonesian upstart Amman Mineral.

Anglo American is not a top 10 company anymore either but has the distinction of being the only one of the old guard which ended 2024 in positive territory, adding $5.5 billion or 18.1% last year.

How much of that valuation is the lingering effects of BHP’s approach is debatable, but long term investors will still be carrying the shock of January 2016 when Anglo’s market cap fell below $5 billion after it came close to suffocating under a pile of debt.

Glencore trades but does not mine iron ore, iron ore has been the cash cow for the big 5 as China’s massive infrastructure investment sucked upwards of 80% of seaborne cargoes and prices flirted with $200 a tonne.

In 2011, iron ore came with some of the fattest margins mining had ever enjoyed. With two-thirds of pre-tax profits coming from the steelmaking raw material that year BHP recorded a $24 billion windfall, Vale reaped $23 billion, Rio racked up $15 billion and Anglo made $11 billion.

Today the steelmaking ingredient is back to double digits and a looming supply surge coupled with the prolonged construction malaise in China, offer little hope of a return to the go-go days.

Copper potential

After hitting record highs in 2024, copper looked poised to bring back windfall profits to the Big 5, but the rally soon fizzled.

With the copper-heavy Anglo deal dead in the water a pivot to organic growth is under way at BHP with up to $10bn being spent on Escondida alone, the world’s largest copper mine.

Rio Tinto benefits from the fact that BHP has been working its Melbourne neighbour’s 30% stake in Escondida so hard while its Resolution copper project in Arizona languishes in permitting hell.

The long-running battle to expand Oyu Tolgoi in Mongolia also seems to have reached a steady state, but Rio’s diversification bent and penchant for opportunistic investment are intact.

Rio spent $6.7 billion to buy into lithium in 2024 just as its Jadar project in Serbia was thrown a lifeline. Whether the project goes into production is still in dispute, much like the prospects for lithium.

Glencore finally got a piece of Teck Resources last year, but had to settle for the Canadian miner’s met coal business in a deal worth $6.9 billion.

With geopolitics and global trade entering ever more dangerous territory, Glencore may find its trading business beginning to throw off cash. The Swiss company which has for decades been negotiating commodity trading waters few are willing to wade into may also want to avoid the Las Bambas effect.

The prospects of an IPO for Vale’s base metals spin-off seems to be vanishing into the distance and is now scheduled “going into 2027”.

Moreover, the $25 billion to $30 billion promised spending to build up the business seems lavish with copper and nickel’s medium term prospects less than inspiring.

Türkiye and Mongolia have signed multiple bilateral agreements during Mongolian President Ukhnaa Khurelsukh's visit to Ankara, the first such visit by a Mongolian head of state in over two decades.

During a joint media briefing in the Turkish capital, Ankara, Türkiye's President Recep Tayyip Erdogan and his Mongolian counterpart signed eleven comprehensive agreements spanning various sectors.

Among the key agreements was a cooperation protocol between Turkish Radio and Television Corporation (TRT) and Mongolian National Broadcaster (MNB), aimed at enhancing media collaboration and cultural exchange between the two nations.

The bilateral talks yielded significant progress in healthcare and education, with both nations signing agreements to foster cooperation in medical sciences and academic exchanges.

These agreements are expected to facilitate knowledge sharing, joint research initiatives, and student exchange programs between Turkish and Mongolian institutions.

The visit has been hailed as a turning point in Turkish-Mongolian relations, with both nations expressing their commitment to deepening cooperation across multiple sectors.

The establishment of a strategic partnership framework is expected to pave the way for increased bilateral trade, cultural exchange, and diplomatic coordination in regional and international affairs.

Invited by President Recep Tayyip Erdogan, the trip aims to strengthen the historical and cultural bonds between the two nations while exploring new avenues for cooperation in bilateral, regional, and global contexts.

This is Mongolia's first presidential visit to Türkiye in 21 years, intending to strengthen historical and cultural ties between the Turkish and Mongolian peoples for mutual benefit.

Diplomatic relations between Türkiye and Mongolia, established on June 24, 1969, have deepened over the years, particularly after the opening of embassies in Ulaanbaatar and Ankara in 1996 and 1997, respectively.

With more than 100 bilateral agreements signed, the two nations have solidified their legal framework for cooperation in various fields.

Türkiye places significant importance on its historical ties with Mongolia, which is home to the Orkhon Inscriptions (Orhun Yazitlari), the oldest known Turkic monuments.

On January 20, President-elect Donald Trump will start his second term in the White House. As an incoming president, Trump’s policies toward Mongolia in particular, and the greater Asia-Pacific region in general, will likely be dictated by business connections and personal ties. During the Biden administration, Mongolia-U.S. relations have expanded; however, there are more opportunities for American businesses to enter Mongolia’s market.

When U.S. President Joe Biden took office in 2021, Mongolia’s investment landscape presented a mix of opportunities and challenges for foreign businesses. To American investors and businesses, Mongolia was viewed as a profitable destination, but some key barriers persisted. In promoting U.S. businesses in Mongolia, the American Chamber of Commerce in Mongolia (AmCham) has consistently championed Mongolia as an investment destination, highlighting its strategic potential and fostering bilateral trade and economic cooperation.

During the Biden administration, Mongolia and the United States have continued to strengthen business mechanisms between Ulaanbaatar and Washington, but improving the investment climate was a crucial task. In response to the challenging investment climate, AmCham has played a proactive role and has been working closely with policymakers to advocate for reforms that support U.S. business interests.

Since 2014, AmCham has been hosting the U.S. Trade Doorknock Mission to encourage business leaders from Mongolia to engage with a range of high-level policymakers in Washington, D.C. These policy dialogues help support Mongolia-U.S. joint advocacy for a private sector-driven, free market economy to attract investment. Through Doorknock, AmCham has facilitated connections with key financial institutions like the U.S. Development Finance Corporation (DFC) and Export-Import Bank. These efforts unlock direct access to U.S. financing for businesses, women-owned entrepreneurial projects, fintech, financial services, and telecommunications.

Moreover, in 2023, AmCham submitted over 80 detailed comments on proposed amendments to the Investment Law and now leads a sub-taskforce, in collaboration with the Deputy Prime Minister’s Office, to drive comprehensive legal reforms. Other key initiatives include engaging in government consultations to strengthen the FDI legal framework, launching a public foreign direct investment promotion campaign, and organizing discussions such as the 2022 U.S. State Department Investment Climate Statement panel.

As strategic partners, Mongolia and the United States have expanded major projects such as the Millennium Challenge Corporation (MCC) Compact. The MCC’s $462 million pledge is designed to address the critical water supply challenges in Ulaanbaatar, the Mongolian capital. As of September 2024, $305.5 million (87.3 percent of the grant) has been committed to projects. As a joint endeavor, the Mongolian government has pledged up to $111.8 million to support these investments.

Major investments and projects like MCC highlight the U.S. commitment to addressing Mongolia’s pressing social and economic challenges. As AmCham put it, “The MCC Compact not only improves essential infrastructure but also strengthens the broader U.S.-Mongolia partnership.”

On January 14, 2024, the DFC approved a $150 million loan to the Mongolian Mortgage Corporation (MIK). According to the Embassy of Mongolia in Washington, “This investment is designed to support women borrowers and low- to middle-income households, with the primary objective of enhancing housing accessibility in Mongolia.”

Beyond these examples of financial assistance, one of the major win for Mongolia-U.S. ties during the Biden administration was the 2023 Open Skies Agreement, which will allow a direct flights starting in May 2025.

Despite these positive trends, during the Biden administration, there was no substantial increase in U.S. businesses entering Mongolia. Instead, General Electric, a major U.S. corporation, shuttered its office in Ulaanbaatar. American investors have repeatedly pointed to bureaucratic inefficiencies, unpredictable regulatory changes, and lengthy dispute resolution processes as major challenges in entering and operating in the Mongolian market. In addition, Mongolia’s corruption index did not improve in the last two years.

Another major obstacle AmCham has noted is that Mongolia’s investment is somewhat closed to American businesses. A minimum investment of $100,000 is required for foreign investors to establish ventures, unlike Mongolian businesses, which face no such threshold. Additionally, only Mongolian citizens are entitled to land ownership, with foreign investors restricted to renewable use rights.

Furthermore, though business registration has been streamlined in theory, with provisions allowing foreign businesses – including U.S. companies – to complete the process online through the State Registration Office, the implementation leaves something to be desired. Many U.S. businesspeople believe that the process is not only challenged by bureaucratic inefficacies but also still requires massive manual paperwork, reviews, and approvals, which often extend over weeks or months.

Closing a business is even more challenging, often requiring 18 to 24 months to navigate administrative and judicial hurdles. Regulatory inconsistencies at provincial and municipal levels, compounded by a lack of expertise among inspectors, further complicate operations.

While Mongolia’s strategic location and rich natural resources offer tremendous investment and businesses opportunities, there are domestic issues the government can improve. Issues such as regulatory unpredictability, corruption, bureaucracy, and judicial weaknesses remain significant obstacles. By addressing these issues – through improved transparency, streamlined processes, and regulatory consistency – Mongolia’s traditional and emerging sectors can benefit from investment and business opportunities.

To Mongolia, the incoming administration of Donald Trump can be a fresh start. The president, who signed the United States’ strategic partnership with Mongolia in 2019, will play a key role in strengthening investment profiles and expanding business opportunities between the two countries.

As Mongolia strives to diversify its exports and investment profiles, emerging sectors such as fast food franchises, convenience stores, organic products, and cashmere luxury goods can benefit from U.S. business ties. In the United States, Mongolia’s traditional industries like cashmere apparel and agriculture show strong promise; brands such as Gobi and Quince have successfully entered the U.S. market.

Mongolia-U.S. business and investment relations during the Biden administration have seen important developments, but they have also been tempered by the challenges of Mongolia’s investment climate. AmCham has consistently supported initiatives that align with U.S. development priorities in Mongolia. With a new administration coming to the Oval Office, it is crucial to advocate investments in infrastructure, business climate reforms, and sustainable development projects.

BY Bolor Lkhaajav

Bolor Lkhaajav

Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.

Egiimaa Tsolmonbaatar

Egiimaa Tsolmonbaatar is a policy analyst.

Adiya Oyungerel

Adiya Oyungerel currently serves as executive director at the American Chamber of Commerce in Mongolia.

A newly-released poll by the International Republican Institute’s (IRI) Center for Insights in Survey Research (CISR) shows Mongolians have concerns over the economy and negative views on media freedom in the country but highlights strong support for democratic governance.

When asked about the most important problems facing the country today, 61% say the cost of living, high prices, and unemployment. This finding is in line with previous IRI polling in Mongolia, which has consistently shown economy-related issues as the primary challenge and problem facing the country.

“It’s been pretty consistent that the majority of Mongolians are not thrilled with the current state of the economy,” said Adam King, Director for East Asia and the Pacific at IRI. “More will need to be done by government officials to lower the cost of living and create more opportunities for good paying jobs if public sentiment on the economy is going to change.”

When asked to describe the current status of media freedom in Mongolia, a majority of 53% say that it’s “somewhat bad” or “very bad.” Additionally, 56% believe that the media in Mongolia lacks the freedom to independently report on any issue.

The survey also found that 68% of Mongolians believe that democracy is the best form of government.

“Our research shows that people do not believe the media is free in Mongolia,” said King. “More independence will encourage trust in a free press, which is an important institution in any democratic system. Despite the current concern over the media environment, it is reassuring that over two-thirds of Mongolians believe that democracy is the best form of government.”

The Alaska Air National Guard launched a new partnership with Mongolia through the State Partnership Program. The collaboration aims to develop cybersecurity training for the newly formed Mongolian Cybersecurity Command, with the Alaska team playing a pivotal role in designing and exchanging training curricula.

A group of AKANG experts, including members from the 168th Wing Communications Flight and 176th Communications Squadron, recently traveled to Mongolia to meet with the Mongolian cybersecurity team. The goal was to craft a training program tailored to the Mongolian Cyber Command's needs. The training, part of the State Partnership Program, enhances collaboration and interoperability with Mongolia and global allies.

SPP began in 1993 and pairs Guard elements with partner nations worldwide. It builds enduring relationships through mutual training engagements and subject matter expert exchanges.

Chief Master Sgt. Brandy Thanos emphasized that the working group's mission was to identify the Mongolian team's training needs and create a targeted curriculum for future cybersecurity exchanges. The group also fostered positive relations with their Mongolian counterparts, strengthening the partnership. A comprehensive reference library was developed to support future training.

"Through collaboration, the teams were able to identify and prioritize desired training targets based on shared core knowledge topics and work roles," said Thanos. "This information provides a targeted training curriculum from which to develop a focused training plan for future exchanges."

During the exchange, Tech Sgt. James Gilchrest led a session on information assurance manager roles, while Thanos facilitated a roundtable discussion to understand the Mongolian team's training needs.

"The team was able to adapt and develop additional products as needed to advance working group discussions and objectives," said Thanos. "The primary intent for this exchange was to establish an understanding of the cyber command's current structure and needs as a developing cybersecurity organization."

Thanos also introduced the Department of Defense Cyber Workforce Framework, providing a foundational overview of key elements such as work roles, knowledge, skills, abilities and tools. The discussion helped both teams establish common ground and identify priority areas for training.

Common cybersecurity threats and vulnerabilities were discussed, with Staff Sgt. Steven Laszloffy and Gilchrest providing insights.

The cultural exchange component of the trip was equally valuable.

"Both teams experienced esprit de corps while exchanging cultural backgrounds," said Thanos. "Alaska participation and enthusiasm for sharing in local culture and customs furthered positive relations."

"I'm excited to connect and continue the training," said Gilchrest. "It was easy to work with them, and I can see their eagerness."

The exchange represents a significant step in supporting Mongolia's growing cybersecurity capabilities while reaffirming the importance of international collaboration to address cyber threats. The efforts of the Alaska Air National Guard and the Mongolian Cybersecurity Command have paved the way for continued engagement and mutual growth in cybersecurity and the State Partnership Program.

The SPP has been successfully building relations for more than 30 years and now includes 105 partnerships with 115 nations.