IMF Warns Over Debt, Deficits If Mongolia Spends Mining Windfall www.bloomberg.com

The International Monetary Fund has warned Mongolia risks swelling its deficit and the debt burden by
relying on windfall revenues from a mining boom to finance generous fiscal policies. 
“The envisaged fiscal expansion is likely to lift the deficit and debt paths,” the IMF said in a statement after a
staff visit. “Downside risks to the outlook have intensified, reflecting global and regional instability and domestic
pressures for further tax cuts and spending increases.” Lawmakers are considering a budget for next year that would
hike social spending rather than build buffers in case prices slump for Mongolia’s natural resources. It’s home to the giant
Oyu Tolgoi copper-gold mine, operated by Rio Tinto, which is being expanded to boost sales of the metal underpinning
electrification, the global energy transition and increasing demand from data centers. 
Mongolia’s official data on Friday showed a 79% surge in copper revenues for the first nine months of the year as prices
climb for the red metal. 
Copper has overtaken steel-making coal as Mongolia’s biggest export thanks to higher prices paired with greater
volumes. China buys up nearly all of Mongolia’s natural resources, consuming 93% of its total exports.
Despite the mining boom, the IMF warned of fiscal vulnerabilities if lawmakers chose to use revenues to raise
pensions, public worker wages and social programs. The fund said spending would be financed by a one-time dividend from Oyu
Tolgoi and volatile mining revenues.
“Fiscal policy should focus on rebuilding buffers and reducing vulnerabilities,” it said. “The proposed tax cut
package should be reconsidered, and requests for further reduction in non-mining taxes should be resisted.”
Elsewhere in the economy, spikes in the cost of food and fuel have pushed inflation well above levels targeted by the
central bank in 2026. Fuel is in short supply, at least partly due to Russia’s war with Ukraine, and Mongolia has called on
China and South Korea to assist with more supplies.
Wait times and queues at fuel stations have gotten so bad in the capital city that protesters demonstrated in the streets
earlier this month, blocking trafficking at a main motorway in front of the Government Palace where Mongolia’s parliament
convenes.
The IMF now projects 6.2% economic growth for 2026 on stronger mining activity. Inflation, however is likely to remain
above the central bank’s target for 2027. Mongolia’s central bank held its policy rate at 12.5% in
September, citing uncertainty abroad, as well as higher oil and energy prices.
“If the proposed fiscal expansion were implemented, monetary policy should be tightened further,” the IMF said. 

Mongolia’s Annual Inflation Rate Reaches 12.9% in September www.montsame.mn

Consumer goods and service prices nationwide rose by 12.9% in September this year compared with the same period last year and by 0.6% from the previous month.

According to the National Statistics Office, in September this year, prices increased year-on-year by 13.5% for goods, 11.2% for services, 20.8% for food items, and 10% for non-food items.

The annual inflation rate rose from 9% in September 2025 to 12.9% in September this year. This was driven by price increases in imported goods excluding gasoline and other fuels, which contributed 2 percentage points, and domestic goods excluding meat and solid fuels, which contributed 4.4 percentage points.

Of the 12.9% inflation rate, 5.6 percentage points were attributable to price increases in food, beverages and water; 2.2 percentage points to transport; 1.2 percentage points to education services; and 0.9 percentage points to clothing, textiles, and footwear.

The 0.6% month-on-month increase in consumer goods and service prices in September was mainly driven by a 3.2% rise in transport prices.

In Ulaanbaatar, prices for 418 types of goods and services are surveyed for the consumer price basket. Of the 430 types of goods and services in the overall basket, 238 are imported, accounting for 55.3% of the total.

In September this year, prices in the meat and meat products category rose by 46.9% year-on-year, driven by increases of 48.4% in beef prices and 58.5% in mutton and goat meat prices.

PM Urges Copper Smelter Acceleration www.montsame.mn

Prime Minister Uchral Nyam-Osor inspected the progress of the USD 772 million copper concentrate smelting and processing plant project to be built based on the "Erdenet Mining Corporation" SOE, instructing officials to accelerate construction and finalize contract negotiations within November.

The project is being implemented in the form of an industrial and technological park as part of Mongolia's objective to process copper concentrate domestically rather than exporting it raw, produce value-added products, and diversify its economy.

Upon commissioning, the plant will be capable of processing 560,000 tonnes of copper concentrate annually and producing 124,000 tonnes of cathode copper. The project's feasibility study, detailed environmental impact assessment, and relevant technological documents have been approved. Financing of USD 68 million has been invested in the infrastructure of the industrial and technological park, with the first phase already received and full completion targeted for 2027.

Out of 55 companies from over 20 countries that expressed interest in investing and cooperating, 13 companies from 7 countries submitted proposals. China's NFC was selected as the strategic investor, and negotiations regarding financing, equity, and construction contracts are currently underway.

Prime Minister issued directives in four areas to accelerate project implementation:

Intensifying negotiations with the investor to increase the economic benefits accruing to Mongolia and clarify the investor's duties and responsibilities, followed by finalizing the draft contract for presentation to a cabinet meeting.

Creating conditions to utilize sulfuric acid produced by the plant in domestic industries, primarily supplying it on a priority basis to the Zuuvch-Ovoo project of the Mongolian-French joint venture "Badrakh Energy" LLC and other projects.

Having the cabinet resolve to transfer the operating license for the "Erdenet" industrial and technological park in the territory of Bayan-Undur and Jargalant soums of Orkhon aimag to the "Erdenet Mining Corporation" SOE.

Resolving exploration licenses for commonly distributed minerals and limestone required to neutralize sulfuric acid for the plant's construction.

Furthermore, instructions were given to promptly resolve legal, regulatory, and infrastructure issues related to the operation of the industrial and technological park and to finalize the construction plan.

Commissioning the plant will not only allow for the domestic processing of copper concentrate and increase the added value of export products but will also foster the development of ancillary industries, create jobs, and enhance the competitiveness of the industrial sector.

Mongolia's Exports Surpass USD 16 Billion in First Nine Months www.montsame.mn

Mongolia traded with 161 countries in the first nine months of this year, reaching a total foreign trade turnover of USD 25.9 billion.

According to the National Statistics Office, exports reached USD 16.2 billion, while imports stood at USD 9.7 billion, resulting in a trade surplus of USD 6.5 billion.

Compared to the same period last year, total trade turnover increased by 34.6% or USD 6.7 billion, exports rose by 51.2% or USD 5.5 billion, imports expanded by 13.8% or USD 1.2 billion, and the trade surplus grew threefold, adding USD 4.3 billion.

The USD 5.5 billion surge in exports over the nine-month period was driven primarily by increased exports of copper ore and concentrate (up by USD 3.1 billion), coal (up by USD 2 billion), combed cashmere (up by USD 124.2 million), unwrought and semi-manufactured gold (up by USD 104.2 million), tungsten ore and concentrate (up by USD 61.8 million), and fluorspar ore and concentrate (up by USD 58 million). Conversely, exports of refined copper and copper alloys fell by USD 49.1 million, molybdenum ore and concentrate dropped by USD 29.8 million, sheep and goat meat decreased by USD 24.8 million, and horse meat declined by USD 9.4 million.

On the import side, the USD 1.2 billion year-on-year increase was mainly influenced by higher imports of diesel fuel (up by USD 549 million), auto gasoline (up by USD 83.2 million), heavy machinery such as bulldozers and excavators (up by USD 67.2 million), new tires (up by USD 56.3 million), and iron/steel structures and parts (up by USD 43.7 million). Meanwhile, imports of passenger cars decreased by USD 74.4 million, trucks fell by USD 46.4 million, and smartphones dropped by USD 14.3 million.

In September alone, exports declined by 17.6% or USD 384.6 million compared to the previous month, while imports grew by 12.4% or USD 149.8 million. 

Mineral products, precious stones, jewelry, and textiles accounted for 97.5% of total exports. Mineral products, machinery and mechanical appliances, electrical equipment, vehicles and their parts, and base metals and articles thereof constituted 71.4% of total imports.

During the first nine months, average border prices for key commodities saw mixed trends compared to the same period last year:

Gold: Increased by USD 1,373.9 per ounce

Copper Ore & Concentrate: Increased by USD 1,204.5 per tonne

Coal: Increased by USD 5.1 per tonne

Iron Ore & Concentrate: Decreased by USD 1.6 per tonne

In terms of trade destinations, coal made up 40.4%, and copper ore and concentrate accounted for 46.9% of total exports to China. Unwrought and semi-manufactured gold comprised 99.6% of all goods exported to Switzerland.

Coal exports through the Gashuunsukhait border port accounted for 41.1% of Mongolia's total coal exports, representing a 4.4 percentage point decrease year-on-year. Regarding imports, petroleum products constituted 76.5% of goods imported from Russia, passenger cars made up 76.4% of imports from Japan, and freight trucks accounted for 6% of imports from China. Imports of auto gasoline reached 684,900 tonnes (up 9.6% year-on-year), while diesel fuel imports reached 1.5 million tonnes (up 7.5% year-on-year).

Infrastructure for Mining-Metallurgical-Chemical Complex Reaches 70 Percent Completion www.montsame.mn

Prime Minister Uchral Nyam-Osor inspected the progress of the copper concentrate smelting and processing plant project and the "Mining-Metallurgical-Chemical Complex" industrial and technological park site, based on "Erdenet Mining Corporation" SOE.

"Erdenet Mining Corporation" SOE is implementing the copper concentrate processing plant project within the framework of the "Mining-Metallurgical-Chemical Complex" industrial and technological park, located in Bayan-Undur and Jargalant soums of Orkhon aimag.

Prime Minister highlighted that, in addition to producing value-added pure copper, the copper concentrate smelter is a strategically significant project aimed at manufacturing high-tech end products, accelerating the growth of ancillary small and medium enterprises, introducing advanced technologies, creating jobs, diversifying the economy, and maximizing returns. The Prime Minister instructed officials to step up construction efforts and finalize contract negotiations by November.

A total investment of USD 68 million has been allocated toward the infrastructure of the industrial and technological park. The first phase has already been commissioned, with full completion slated for 2027.

A 1,200-hectare area has been designated under special state needs for establishing the park. The complex will house:

Copper concentrate smelting and processing plant

Ferromolybdenum processing plant for molybdenum concentrate

Copper nanopowder plant

Cable wire factory

In addition, testing is currently underway for the "Oyuut" substation. According to the Media and Public Relations Department of the Government of Mongolia, this substation will not only supply electricity to the industrial and technological park but also ensure reliable power distribution across more than 140 soums.

"With the construction of a 4.4 km railway line from Erdenet Station, it is now possible to unload imported goods directly at the industrial park site, which is currently being connected to Erdenet Mining Corporation by rail. Clean water supply and sewage systems have been resolved, subgrade works for a 12.7 km paved road are underway, and fencing around the park's territory has been completed," stated Batmunkh T., Chief Engineer of "Erdenet Mining Corporation" SOE.

Mongolia Opens 127-Kilometer Railway to Bypass Capital www.montsame.mn

Mongolia officially commissioned a strategically vital 127.1-kilometer railway connecting Bagakhangai, Khushig Valley, and Emeelt on October 11, marking a major step in expanding the country’s rail network and reducing severe traffic congestion in the capital.

The newly completed Class III railway features 177 kilometers of total track length, three sidings, four stations, and 1,279 meters of bridge structures spanning eight locations. Among the infrastructure highlights is a 476-meter bridge crossing the Tuul River, supported by 20 piers and 38 girders, making it the longest bridge in Mongolia. The project also boasts the country’s highest bridge, standing 22 meters tall and spanning 176 meters, as well as 127 reinforced concrete culverts designed for water passage and civil underpasses.

President of Mongolia Khurelsukh Ukhnaa attended the opening ceremony, praising the more than 160 domestic enterprises and 4,000 engineers, technical personnel, and local workers who completed the large-scale engineering project in just over a year using more than 1,500 pieces of heavy machinery.

President Khurelsukh emphasized that the bypass line will play a critical role in Ulaanbaatar’s expansion, supporting new satellite cities and meeting the demands of rapidly growing exports, manufacturing, trade, and logistics while creating jobs and attracting investment. He directed relevant authorities to focus on maintaining operational reliability, increasing transport capacity, adopting flexible tariff policies, lowering logistics costing, and strengthening human resources.

The new line is projected to reroute 20 million metric tonnes of freight around Ulaanbaatar in its first year, eventually scaling up to 25 million metric tons annually. Officials estimate this will remove approximately 1,800 heavy-duty trucks from city streets daily, significantly easing traffic at major rail-road intersections. Previously railway crossing closures delayed city traffic by an average of 144 minutes per day: the new route is expected to reduce those delays by 21 to 120 minutes.

Safety and urban planning benefits are also immediate effective today, 34 categories of hazardous and explosive cargo will no longer pass through central Ulaanbaatar. Plans are underway to construct a multi-purpose freight terminal at the 87.8-kilometer mark and a dedicated hazardous cargo terminal at the 102-kilometer mark. Additionally, 13 freight terminals currently operating within the capital will be relocated in phases, freeing up land for public use.

The railway is also expected to anchor the economic development of the satellite city surrounding Chinggis Khaan International Airport in Khushig Valley, driving progress in trade, manufacturing, free trade zones, and multimodal transport logistics.

Mongolia’s First Organic Livestock Feed Plant Expands Production Tenfold www.montsame.mn

“MiMo” Agro Park, Mongolia’s first organic livestock feed plant, is operating in Baruunburen soum, Selenge aimag.

During a visit to the soum on October 11, Uchral Nyam-Osor, Prime Minister of Mongolia, toured the facility and received a briefing on its production capacity and the economic benefits it aims to deliver to herders.

The “MiMo” Agro Park was established with an investment of MNT 50 billion, of which MNT 5 billion was financed through a concessional agricultural loan. The plant initially had the capacity to produce 5 tonnes of livestock feed per day, but has since increased its production capacity tenfold. This expansion is expected to help boost domestic livestock feed supplies.

In addition to manufacturing feed, the company aims to increase herders’ incomes and support the supply of quality meat by purchasing livestock at premium prices from herders who raise their animals using “MiMo” feed. According to the company, herders could earn a return of MNT 3–5 for every MNT 1 spent on “MiMo” feed. The initiative is intended not only to improve livestock productivity but also to help herders market their products more profitably.

Company officials stated that using “MiMo” feed could reduce livestock losses from non-disease-related causes by up to 90 percent, increase cashmere yields by 60 percent, milk production by 40 percent, and meat output by 200–300 percent.

The feed is also considered beneficial for providing livestock with essential nutrients, improving their growth and productivity, and reducing risks associated with nutritional deficiencies.

Mongolia 'BB-' Long-Term Rating Affirmed; Outlook Stable www.montsame.mn

On October 8, S&P Global Ratings affirmed its ‘BB-’ long-term and ‘B’ short-term sovereign credit ratings on Mongolia. The outlook on the long-term rating is stable.

Several core factors underpinned the decision to maintain Mongolia’s rating:

-Economic momentum is expected to be largely driven by rising copper production from Phase 2 of the Oyu Tolgoi (OT) project and steady coal exports to China. Due to robust export growth, narrow net external debt relative to current account receipts has experienced a share decline, projected to drop from 184% in 2020 to 58% by 2026.

-Mongolia’s economic growth over the next two to three years will likely outpace that of sovereign peers with similar average income levels.

-S&P noted that general government net debt stood at 29% of GDP as of 2025 and is projected to settle around 25% over the medium term, representing a sound level. The government’s debt servicing capacity remains relatively strong due to a stable tax revenue base and low debt-service costs. Notably, government interest payments relative to budget revenue have dropped significantly over the past decade and are expected to remain below 5% over the medium term.

-Fiscal prudence will be maintained by keeping the consolidated balanced budget deficit within 2% of GDP. Long-term efforts to minimize budget revenue volatility caused by commodity price fluctuations continue via accumulations in the fiscal stability fund and the wealth fund. Factoring in these fund accumulations, the consolidated budget balance is projected to record a surplus of 2.0% of GDP in 2026 and 1.6% in 2027.

Within this latest announcement, Mongolia’s sovereign ratings from the three major international credit rating agencies stand as follows:

 -S&P Global Ratings: “BB-, Stable” (Affirmed October 8, 2026)

-Fitch Ratings: “B+, Stable” (Affirmed August 19, 2026)

-Moody’s Investors Service: “B1, Stable” (Affirmed October 5, 2026)

According to the Government of Mongolia, maintaining these ratings amidst an unpredictable external environment underscores continued international confidence in Mongolia’s economic trajectory and policy stability.

Inside the Luxury Resort Mongolia’s Fuel Crisis Never Reached www.intpolicydigest.org

At a luxury resort on Mongolia’s Khyargas Lake, the country’s rich and powerful spent the summer chartering helicopters, cruising aboard Italian yachts, and riding jet skis. Beyond the resort’s secluded shores, ordinary Mongolians were struggling through one of the country’s worst fuel crises in decades.

Khyargas Aurum Resort offered Mongolia’s elite an escape seemingly untouched by the shortages gripping the rest of the country. But the property’s connections extend well beyond luxury tourism. It is tied to the family of Jononbayar Erdenesuren, a central figure in Mongolia’s $1.1 billion Lex Oil fuel-fraud scandal, whose network of companies continues to control a significant share of the country’s fuel imports.

The resort announced its opening on July 9, 2026. Days later, Gankhuu Gendendaram, a musician and former politician, posted a 19-minute video documenting his stay. Comparing the experience to living like an Arab sheikh, he showed his family cruising aboard one of the resort’s Italian-made Pardo yachts, riding dune buggies, and enjoying Italian wine. They returned home aboard a privately chartered helicopter.

Within weeks, Khyargas Aurum had become one of the summer’s most fashionable destinations. Uka, one of Mongolia’s biggest pop stars, was photographed paddleboarding and relaxing aboard one of the resort’s two yachts. Models and social media influencers documented similarly extravagant visits throughout July.

By early August, the contrast between life at the resort and conditions elsewhere in Mongolia had become impossible to ignore.

On August 4, the country’s Emergency Headquarters imposed fuel restrictions in Ulaanbaatar. Motorists could purchase fuel only on designated days, determined by their license plate numbers, while the use of portable petrol containers was prohibited.

Tourism operators, however, received an exemption. On August 7, the Ministry of Industry and Mineral Resources announced that tourism businesses traveling outside Ulaanbaatar could purchase fuel without the ordinary limits by presenting industry identification. The land occupied by Khyargas Aurum is officially registered for use as a tourism camp.

The restrictions appeared to have little effect on the resort’s operations. On August 9, six days into the rationing measures, Kazakh influencer Kanat Aynur posted 21 photographs from Khyargas Aurum. They showed a helicopter parked outside the resort’s terrace, a Pardo yacht being moored, jet skis, and a dune buggy. Meanwhile, helicopter charters operated by Alpha Aurora Aviation continued carrying guests to the property.

The resort’s fleet of helicopters, yachts, jet skis, and recreational vehicles showed no visible signs of being constrained by the shortages affecting ordinary motorists.

The family behind the resort is closely connected to Jononbayar Erdenesuren, a businessman whose name has become associated with the Lex Oil scandal. Even before Khyargas Aurum formally opened, social media users were identifying it as his project. One commenter described it in late July as the famous Jononbayar’s business, while another referred to it as belonging to “thief Jononbayar.”

The family connection was hardly concealed. Within weeks of the resort’s launch, five-star Google reviews had appeared from Jononbayar’s aunt, his reported girlfriend, and 108 Oil, another fuel importer linked to the family’s business network.

GraphDespite the publicity surrounding its opening, it remains unclear whether Khyargas Aurum has ever operated as a conventional resort open to the general public. No nightly rates have been published. Across four of the resort’s social media posts, 20 commenters asked about prices or reservations without receiving any public response.

Nor was July 2026 the property’s true beginning.

As early as 2024, Mongolian media reported that Jononbayar already maintained a tourist camp on Khyargas Lake, traveling there aboard helicopters operated by Alpha Aurora Aviation. Earlier reporting also claimed that he had imported three Italian Pardo yachts in 2020 for use at the property. Khyargas Aurum’s own social media accounts indicate that development of the resort had been underway since 2023.

The property’s origins lead back to 2021, when the land was awarded to Good Future LLC, a company with its own connections to the Lex Oil network.

Good Future was registered in 2017, with Dorjgochoo Erdenetuyaa as its sole shareholder. Before acquiring the resort land, its only recorded business venture was connected to fuel. On April 3, 2019, Good Future became a shareholder in Petroleum Production, a company licensed to import and wholesale petroleum products.

Two days earlier, VS Oil, founded by Erdenetuyaa’s brother-in-law, Dashnyam Chinbat, the husband of Dorjgochoo Erdenetuul, had acquired a stake in Lex Oil.

Mongolian reporting has identified Good Future among 12 companies allegedly controlled by five members of the same family, describing them collectively as part of a counterfeit fuel network. Petroleum Production has also faced scrutiny. In January 2025, Mongolia’s Deputy Speaker of Parliament named the company during a State Palace press conference as an example of an alleged counterfeit fuel operation.

Good Future disposed of its stake in Petroleum Production in January 2021. Five months later, the company applied for possession rights to approximately two acres of lakeside property where Khyargas Aurum would eventually be built.

The circumstances surrounding that land allocation raise questions of their own.

On June 16, 2021, the Uvs provincial land department published a notice offering 12 parcels across four districts, including five sites along the shores of Khyargas Lake. One of those parcels, specifically designated in the 2021 allocation process, would become the resort.

Applications opened at 9 a.m. on June 21 and closed just 30 hours later. During that narrow window, prospective applicants were required to submit bank solvency certificates, evidence of qualified personnel and equipment, and a comprehensive resort development plan meeting national standards.

Nine days later, the provincial governor approved the allocation. The land contract was executed, and the possession right was registered, all on the same day.

At the time, Good Future had no director listed in its company records and no licenses recorded in the public register.

Although the official documents listed an opening auction price of $4,446.93, no auction took place. Instead, Good Future obtained the land through a project-selection process in which officials evaluated development proposals rather than awarding the property to the highest bidder.

The company secured possession rights lasting until 2041, with an annual payment of just $110.

The officials responsible for the allocation subsequently became embroiled in a separate criminal case involving allegedly improper land grants in Uvs province.

U. Bolor-Erdene, the cadastral specialist who registered Good Future’s possession rights, was charged with abuse of office three years later, alongside the provincial governor and the acting head of her department. Prosecutors alleged that land had been allocated outside the approved land-management plan, including to relatives and political associates.

Those charges concern a separate case and do not, by themselves, establish wrongdoing in Good Future’s allocation. Nevertheless, the resort’s unusually compressed application process, favorable terms, and connections to an influential business network warrant closer scrutiny.

The resort that emerged on the shores of Khyargas Lake was not simply an isolated luxury development. Its corporate connections reveal an interconnected family business empire spanning fuel imports, aviation, construction, food, and luxury retail.

Good Future is registered at an apartment in Ulaanbaatar’s Emerald Residence complex. The same address has been used by several other companies owned or formerly controlled by Erdenetuyaa. Among them is Uptown Place, a construction company she acquired five months before Good Future received the Khyargas land.

Good Future’s executive director, Münkhkhuyag Uyanga, also manages Alpha Aviation Fuel, a licensed petroleum importer and wholesaler supplying aviation fuel in Mongolia.

Alpha Aviation Fuel was founded by Jononbayar’s mother, Dorjgochoo Erdenesuren, and his aunt, Dorjgochoo Erdenetuul. Erdenesuren remains its registered ultimate beneficial owner.

The helicopters transporting guests to Khyargas Aurum are operated by Alpha Aurora Aviation, another company with ties to the same network. Established in 2023 by VS Oil, Alpha Aurora has already attracted national attention for its connections to Mongolia’s political elite.

In 2025, one of the company’s helicopters appeared in photographs of an extravagant marriage proposal involving the son of then-Prime Minister L. Oyun-Erdene.

The images became part of a broader controversy over the wealth and lifestyles of Mongolia’s political establishment. Public anger helped fuel three weeks of anti-corruption protests, culminating in Oyun-Erdene’s loss of a parliamentary confidence vote and his resignation on June 3.

Even the Italian food and wine served to guests at Khyargas Aurum can be traced through the family’s network of businesses.

Jocondi, a company registered in another building within the Emerald Residence complex, has been owned and managed since 2018 by Dorjgochoo Erdenetuul, a family member implicated in the Lex Oil affair.

During Mongolian court proceedings, Jocondi’s accountant testified that the company operated the Smeraldo food store at Emerald Residence, along with two luxury fashion outlets.

The Italian brand Redoro is associated with the Smeraldo store and Jocondi. Promotional leaflets featuring the brand, complete with QR codes allowing guests to make purchases, can be seen on tables in photographs taken at Khyargas Aurum.

During his video tour of the property, Gankhuu described the Italian importer as a subsidiary belonging to the resort’s owners.

The connections are revealing. From the land beneath the resort to the helicopters flying guests there, the aviation fuel used to power them, and the imported products offered once visitors arrive, Khyargas Aurum sits at the intersection of businesses controlled by members of the same family.

And despite the exposure of the alleged $1.1 billion Lex Oil fraud, the family’s commercial reach appears to have continued expanding.

GraphOf the 34 licenses Mongolia issued for the importation of various types of fuel during 2025 and 2026, seven went to companies connected to Jononbayar’s network.

That figure underscores the extraordinary contradiction at the heart of Khyargas Aurum.

While ordinary Mongolians were being told when they could purchase fuel and how much they were permitted to buy, the family connected to this luxury retreat remained deeply involved in the business of importing it.

And as motorists elsewhere confronted rationing and shortages, the helicopters continued arriving, the Italian yachts continued cruising, and the jet skis continued carving through the waters of Khyargas Lake.

For the guests of Khyargas Aurum, Mongolia’s fuel crisis might as well have been happening in another country.

World's most expensive Mongolian falcon sells for record SR1.4 million at Saudi auction www.gulfnews.com

 A Mongolian falcon has sold for a record SR1.4 million at an auction in Saudi Arabia, becoming the most expensive bird ever sold at the Mongolian falcon auction held as part of the Saudi International Falcons and Hunting Exhibition 2026.

The record-breaking sale took place on Friday during the fifth evening of the auction, when three young saker falcons fetched a combined SR1.651 million.

Bidding for the most expensive bird began at SR100,000 before climbing to SR1.4 million, setting a new record for the auction.

The evening opened with the sale of a young saker falcon for SR151,000, followed by a second bird that fetched SR100,000.

The third falcon attracted the highest bid of the night, accounting for the vast majority of the evening's sales.

The Saudi International Falcons and Hunting Exhibition has dedicated a section to Mongolian falcons for the second consecutive year.

Among the birds on display is the Mongolian saker falcon, known for its large size, long wingspan and endurance.

Its plumage ranges from lighter shades to dark brown, characteristics that make the species particularly attractive to falconry enthusiasts.

The auction provides visitors with an opportunity to examine Mongolian falcons and bid for them directly, bringing together enthusiasts from different countries and reflecting the international appeal of falconry.

The exhibition, organised by the Saudi Falcons Club, concluded on Saturday at the Riyadh Exhibition and Convention Centre in Malham, north of the Saudi capital.

Held under the theme A Destination for All, the event brought together falconry, hunting, outdoor activities, adventure and a range of visitor experiences.