The operator of one of Mongolia’s largest copper mines said Thursday its exports of copper concentrate to China have dropped by about 70% in the past two weeks due to restrictions at a border crossing.

The restrictions have raised concerns over potential revenue losses and disruptions to Mongolia’s massive mineral sector.

Oyu Tolgoi LLC, which operates Oyu Tolgoi, one of the world’s largest copper mines, said the number of truck convoys transporting copper concentrate across the Chinese border has fallen from the usual 12 to 13 per day to just around four. The restrictions affect vehicles crossing at China’s Ganqimaodu Border Port, which is adjacent to Mongolia’s Gashuunsukhait Border Port.

The export cuts amount to a decline of about $300 million compared to normal operating conditions and could reach $1.2 billion if restrictions continue through the end of the year, local media reported on Wednesday.

Oyu Tolgoi LLC did not confirm the reported losses in a statement to The Associated Press on Thursday.

Mongolia is a major supplier of coal and copper to China, the world’s largest consumer of both commodities.

Mongolian border officials said the slowdown was related to infrastructure and technology upgrades at China’s Ganqimaodu Border Port.

Authorities in China’s Inner Mongolia region did not immediately answer questions from the AP.

In August, Chinese authorities introduced an in-vehicle facial recognition system for truck drivers crossing the border, and installation and maintenance work have affected border processing capacity, according to the Mongolian border authorities.

Mongolia’s government said the Chinese embassy in Ulaanbaatar informed it that the work, originally due to end by late September according to Mongolian news reports, may continue until the end of December.

Mongolian Finance Minister Mendsaikhan Zagdjav said some ministers were instructed during a Cabinet meeting to visit the border crossing and meet with Chinese authorities, according to local news reports.

All transport routes on the Mongolian side remain open and the government was not aware of any political reasons behind the restrictions, said the minister of Road and Transport, Delgersaikhan Borkhuu.

Mongolia’s copper sector has become an increasingly important contributor to national export revenues. During the first nine months of 2026, copper concentrate exports reportedly reached 2 million tons.

The border crossing restrictions have also affected Mongolia’s coal exports through Gashuunsukhait, with the number of vehicles crossing falling to just over 1,000 a day from 1,300 a day, border authorities said.

Mongolia has abundant mineral resources, including coal, copper, gold, uranium and fluorspar, and its economy relies heavily on mining, which accounts for roughly a quarter of its GDP. It is particularly sensitive to disruptions to cross-border trade and fluctuations in commodity prices.

Last year, coal and copper concentrates together accounted for 82.3% of Mongolia’s merchandise exports, while 89.4% of total exports went to China. Mongolia was also China’s leading supplier of imported coking coal, accounting for approximately 51% of Chinese coking coal imports in 2025.

By The Associated Press

Published Date:2026-10-29