The U.S. Government, through the United States Agency for International Development’s (USAID) Business Excellence for Sustainability and Transparency (BEST) program, helped 5,397 small and medium-sized enterprises (SMEs) in Mongolia secure $100.4 million (MNT 329.7 billion) in loans and create over 4,000 new jobs in just five years.

Launched in 2019 with $15 million in USAID funding, the BEST program supported entrepreneurs with training on financial management, marketing, and, crucially, loan applications and documentation.

One of USAID’s key achievements was strengthening both women-led and rural SMEs. Out of the total loans facilitated by USAID, more than half were awarded to women-led businesses, empowering 3,005 female entrepreneurs. The program also provided $500,000 (MNT 1.7 billion) in grants to 176 startups and small businesses in rural provinces. This funding helped businesses purchase new equipment, create new jobs, and boost economic activity in underserved areas. With participants from Ulaanbaatar and 12 rural provinces, BEST also fostered collaboration among businesses that led to the formation of non-governmental organizations which have partnered with local governments to develop and approve regional development strategies, ensuring lasting benefits for SMEs.

“USAID’s BEST program has laid a strong foundation that will empower small businesses to thrive in Mongolia for years to come,” U.S. Ambassador to Mongolia Richard Buangan said. “I’m confident and excited that we will continue working with Mongolia’s private sector to create opportunities and long-term economic prosperity.”

Building on the success of the BEST Program, USAID will launch a second phase in 2025 – an anticipated $10 million (MNT 34 billion) investment over five years to enhance SMEs’ energy efficiency, environmental sustainability, and competitiveness to further support Mongolia’s economic growth and diversification. USAID invites eligible organizations to apply for this opportunity on grants.gov under Opportunity Number 72043825RFA00001. Applications are due by February 12, 2025.

Mongolia exported 74.2 million tons of coal in the first 11 months of this year, the Mongolian Customs General Administration reported on Thursday.

This marks a significant year-on-year increase of nearly 24 percent compared to the same period in 2023, according to official data released by the administration.

Coal remains one of Mongolia's key export commodities, reflecting the country's rich mineral reserves.

Initially, Mongolia set a coal export target of at least 60 million tons for 2024. However, buoyed by strong performance, the target has been revised upward to 75 million tons.

In 2023, Mongolia achieved a record coal export volume of 66.7 million tons, setting a new benchmark for its coal trade.

Building on this momentum, the Asian country plans to export at least 80 million tons of coal next year as outlined in its draft law for the 2025 state budget.

The City Council of the Capital City convened today (December 4, 2024) and approved the 2025 budget proposal. During the session, the council discussed and decided to revise and increase the taxes on vehicles and self-propelled machinery as well as the road usage fees. The updated regulations will come into effect on January 1, 2025.

The revised rates for vehicle tax based on engine capacity, as determined by the City Council, are as follows:

Above 4000 cc: 694 MNT per day, 250,000 MNT per year

2001–3000 cc: 416 MNT per day, 150,000 MNT per year

Up to 2000 cc: 275 MNT per day, 100,000 MNT per year

Under the new tariffs, drivers will pay taxes based on the engine capacity of their vehicles.

Translated by ChatGPT

Anglo-Australian mining group Rio Tinto (RIO.AX), opens new tab, (RIO.L), opens new tab on Wednesday lifted its capital expenditure guidance for 2025 and forecast higher copper production, mostly on an anticipated 50% output surge from its Mongolian assets.

Across operations, it is projecting 3% compound annual growth from 2024 onward. While Rio Tinto's profits primarily stem from iron ore, it is increasing its focus on copper, demand for which is expected to benefit from the energy transition.

The miner aims to reach annual copper production of 1 million metric tons by 2030, evolving into a major player in the clean energy supply chain focusing on high-quality, low-emission raw materials.

"As we ramp up the Oyu Tolgoi underground copper mine (in Mongolia), deliver the Simandou high-grade iron ore project in Guinea, and build out our lithium business through the proposed acquisition of Arcadium, we are underwriting a decade of profitable growth," CEO Jakob Stausholm said.

The company expects overall capital expenditure to rise to $11.0 billion for fiscal 2025 - $1 billion above a previous forecast - from $9.5 billion in 2024.

The Simandou iron ore project in Guinea, set to be the world's largest new iron ore mine, will add around 5% to global seaborne supply when it comes on line at the end of 2025. Rio plans to spend about $6.2 billion on the development, with more than half on port and rail infrastructure.

While the Dow dipped almost two-tenths of a percent, the S&P ticked up slightly, and the NASDAQ added four-tenths of a percent.

Rio in October agreed to buy lithium producer Arcadium (ALTM.N), opens new tab for $6.7 billion, a strategic move set to make it the world's third-largest lithium miner, significantly boosting its presence in the electric vehicle battery supply chain.

Its Rincon starter project in Argentina achieved first lithium production last week, it said, but the huge Jadar project in Serbia, marred by environmental protests, could take at least two years to secure permits to go ahead.

The world's largest iron ore producer said it expects copper production in fiscal 2025 of 780,000-850,000 tons, against 660,000-720,000 tons a year earlier.

It maintained its projected capital expenditure for decarbonisation through 2030 at the lower end of the $5 billion-$6 billion range, having last year cut the budget from a previous estimate of $7.5 billion.

Rio is dual listed in Sydney and London, where its shares were down 12% and 14% respectively this year.

On Wednesday activist investor Palliser Capital demanded Rio Tinto scrap its primary listing in London and unify its corporate structure in Australia, saying about $50 billion in shareholder value has already been lost due to the dual listing.

"So far, we have not got anything that tells us that the structure we have is not the best structure," Stausholm told investors in London.

Reporting by Clara Denina, Roushni Nair; Editing by Eileen Soreng, Rashmi Aich and Jan Harvey

Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai received Prince Turki bin Mohammed Al-Saud, Member of the Council of Ministers and Minister of State of the Kingdom of Saudi Arabia.

At the meeting, Prime Minister Oyun-Erdene noted that the State Minister’s visit to Mongolia last year was an important impetus for increasing relations and cooperation between the two countries and expressed satisfaction that the issues agreed during the visit started to be realized. Prime Minister Oyun-Erdene introduced Mongolia’s “Vision-2050,” the Government’s Action Program for 2024-2028, and mega projects, and the two sides exchanged views on the possibilities for cooperation with Saudi Arabia in implementing these projects and programs, attracting investment, and developing mutually beneficial cooperation.

Prince Turki bin Mohammed emphasized the great potential to expand relations and cooperation between the two countries and confirmed Saudi Arabia's commitment to developing mutually beneficial cooperation in sectors, including renewable energy, mining, and tourism. Moreover, the Prince reaffirmed to provide all-round support to Mongolia for organizing the 17th Conference of the Parties to the United Nations Convention to Combat Desertification.

Two companies have launched new products on the Mongolian Stock Exchange. Specifically, “Shunkhlai” LLC started the primary market trading of “Shunkhlai” bonds, while a bell-ringing ceremony for the IPO of “Tenger Daatgal” LLC was held on November 28, 2024.

The IPO orders for “Tenger Daatgal” will be accepted through the MSE's IPO system until December 4, 4:00 PM.

• Name of the security: “Tenger Daatgal” LLC

• Total number of securities: 60,000,000 shares

• Number of shares to be offered to the public: 12,500,000

• Public offering price: MNT 800

• Total amount of funds to be raised: MNT 10,000,000,000

“Shunkhlai” LLC has issued open bonds with an annual interest rate of 17 percent. Trading orders are being accepted through the IPO system of the Mongolian Stock Exchange until December 9, 2024.

• Bond name: “Shunkhlai” bond

• Total number of bonds: 800,000

• Bond face value: MNT 100,000

• Total value of bonds: MNT 80,000,000,000

• Bond interest/yield rate: 17 percent

• Bond term: 12 months.

Reporters Without Borders (RSF) welcomes the Mongolian government’s draft law on press freedom. While some areas of the proposed legislation need further refinement, it is a positive step forward to ensure the freedom, independence, and plurality of Mongolian journalism is better guaranteed.

In October 2024, Mongolia’s Ministry of Justice introduced plans to reform the country’s Law on Freedom of The Press, originally passed in 1998. According to the government, the reform aims to foster the development of a diverse media landscape full of reliable journalism and tackle the country’s recent decline in press freedom, highlighted by Mongolia’s drop in the RSF World Press Freedom Index by 36 places since 2020. Mongolia currently ranks 109th out of 180 countries and territories in 2024.

“This is a welcome, ambitious piece of legislation that seeks to address critical issues for Mongolian journalists. In RSF’s view, while some improvements could be made, the draft law provides a good basis for upcoming Parliament discussions. By adopting this law, Mongolia would demonstrate its commitment to press freedom and the public’s right to reliable information despite the pressure of being a landlocked nation geographically surrounded by the authoritarian regimes of Russia and China.

Antoine Bernard

RSF’s Director of Advocacy and Assistance

RSF’s five main recommendations to strengthen Mongolia’s proposed press freedom law

Clarify the definition of journalism: Clearly distinguish journalists, who adhere to specific ethical codes as employees of a professional media organisation, from individuals who publish public-interest information without having to comply with the same level of professional ethics and self-regulatory scrutiny.

Guarantee media independence: Ensure that neither the state nor media regulatory authorities can interfere with editorial decisions or exert pressure on journalists and independent media.

Enhance source protection: Extend protections to all newsroom staff with access to any information that would allow for the identification of journalists’ sources. In particular, exceptions to these protections must be strictly limited so as to protect journalists from undue surveillance through spyware.

Promote self-regulation standards: Endorse both nationally and internationally recognised standards that strengthen the transparency and reliability of journalistic reporting, such as the Journalism Trust Initiative (JTI), and create legal and/or economic incentives for Mongolian media service providers to facilitate adherence to such self-assessment and certification programmes.

Increase transparency in media ownership and funding: Require the full disclosure of media ownership, including indirect state ownership, as well as details concerning public funding, particularly state advertising.

The Asian Development Bank (ADB) and XacBank Joint Stock Company (XacBank) have signed a $50 million financing package to enhance financing for climate action and to support micro, small, and medium-sized enterprises (MSME) in Mongolia.

The package includes $40 million from ADB and a $10 million concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA). At least 70% the financing package will be dedicated to climate mitigation and adaptation projects, with the remainder allocated to multisector MSME finance, including lending to women-owned and women-led businesses.

"A strong green finance market is essential to fostering a sustainable economy that supports Mongolia's net zero goals," said ADB Vice-President for Market Solutions Bhargav Dasgupta. "As Asia and the Pacific’s climate bank, ADB is partnering with XacBank to improve the livelihoods of people who run these crucial businesses and to support broad economic growth, while helping Mongolia to build resilience against climate impacts."

Green finance is increasingly important in Mongolia, which faces significant climate vulnerabilities and high greenhouse gas emissions. The local green loan market is still developing, with green loans representing only a small percentage of total bank loans. The Mongolian government aims to expand this market by 2030, highlighting the need for private sector involvement to meet these and other climate targets.

MSMEs are vital to the Mongolian economy, making up over 70% of registered businesses and employing a considerable share of the workforce. Even so, they often struggle to access credit, especially for investments that meet green standards. Expanding their access to climate-friendly and inclusive financing can help enhance the resilience of this key strategic sector and drive sustainable and inclusive growth in Mongolia. ADB will assist XacBank in promoting gender equality including by offering new banking products for women entrepreneurs.

“At XacBank, we are dedicated to advancing sustainable finance and supporting businesses that contribute to Mongolia’s climate resilience,” said XacBank’s Chief Executive Officer Tsevegjav Gumenjav. “This partnership with ADB allows us to offer long-term, affordable financing options that will empower more green businesses and MSMEs to thrive, contributing to a sustainable and inclusive economy for Mongolia.”

Established in 2024, CANPA is a trust fund managed by ADB, supported by a commitment of Can$360 million from the Government of Canada. The fund builds on the success of the two previous funds, namely the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) and its predecessor CFPS. CANPA aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, while also promoting gender equality. This financing package marks the first commitment under CANPA.

Established in 2001, XacBank is one of Mongolia’s leading banks, with a strong commitment to sustainable finance and MSME development. XacBank operates across all 21 provinces, serving over 1 million customers through its 72 branches.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

In November 2024, the Central Bank of Mongolia purchased 1,689.5 kg of precious metals, bringing the total amount to 15.8 tons since the beginning of the year.

This figure represents a 1.6 percent decrease compared to the same period last year.

Since the beginning of the year, the Darkhan-Uul branch of the Central Bank of Mongolia has purchased 753.4 kg of precious metals, whereas the Bayankhongor branch- 1,177.2 kg.

The Central Bank of Mongolia determines the purchase price of precious metals based on global market prices. In November 2024, the average price for purchasing gold was MNT 291,101.68.

According to the Mongolian Customs General Administration, on December 1, 2024, Mongolia exported 18.2 thousand tons of coal.

The total amount of coal exported since the beginning of the year reached 74,250.2 thousand tons of coal, a 23.9 percent increase compared to the same period of the previous year.

Mongolia has set a target to export 78 million tons of coal in 2024 and plans to increase the export of coal to 83 million tons for the next year.