Report on Implementation of Mongolia’s 2025 Development Plan Presented www.montsame.mn

At the plenary session of the State Great Khural (Parliament) on March 31, Prime Minister Uchral Nyam-Osor presented a report on the Government’s 2024-2028 action plan and an analytical review of the implementation of Mongolia’s 2025 development plan.

According to the monitoring and evaluation results outlined in the reports, the average performance of 13 key outcome indicators reached 55.5% compared to the 2025 target levels; the average implementation of 67 outcomes under budget governors stood at 64.1%, and the average completion rate of 575 objectives in the operational plan was 66.4%. In addition, the average implementation of 1,213 measures reached 67.9%.

During the session, members of parliament emphasized the need to improve planning accuracy, clearly define target levels, implement recommendations from the National Audit Office, revoke the budget austerity law, reduce reporting requirements from civil servants, and introduce artificial intelligence-based technologies. They also raised questions regarding the plans of several ministries and received responses.

Mongolia and Turkey agree on cooperation in defense sector www.akipress.com

The 11th consultations between the Ministries of Defense of Mongolia and Turkey took place in Ankara from March 23 to March 27, MiddleAsianNews reported.

The sides discussed important aspects of military cooperation, interaction in the defense industry, and regional security issues. The main goal of the negotiations was to deepen relations in the fields of education and technology.

The participants considered the current state of military partnership between the two countries, outlined plans for expanding cooperation, and signed a protocol on further interaction.

The countries agreed on areas of cooperation, including military training, joint exercises, education, cybersecurity, and collaboration among scientists in the fields of science and research.

The meeting was attended by high-profile representatives of the Defense Ministries, including Colonel Gansukh Erkhembayar, head of the strategic policy and planning department of the Ministry of Defense of Mongolia, and Brigadier General Erdoğan Çatal, head of the foreign cooperation department of the General Staff of the Turkish Armed Forces.

In January 2025, the Presidents of Mongolia and Turkey, Ukhnaagiin Khurelsukh and Recep Tayyip Erdoğan, signed a Joint Declaration on Strategic Partnership between the two states.

Mongolia arrive as the team to beat at FIBA 3x3 Asia Cup 2026 www..fiba.basketball

SINGAPORE - At the FIBA 3x3 Asia Cup 2026, Mongolia enter as one of the strongest programs in the competition, with the men seeded first and the women seeded second. After missing the podium last year, both teams return with a clear objective: get back among Asia’s best.

Men: New faces, same ambition
Mongolia’s men come in as the top seed, backed by a track record that includes two titles, two runner-up finishes and a bronze medal in FIBA 3x3 Asia Cup history.

This year’s squad, though, offers a different look.

The roster features a new generation of players making their Asia Cup debut. They bring experience from the FIBA 3x3 Pro Circuit and Youth Nations League. While the familiar names may be absent, the identity remains the same. This team will be physical, cohesive and built for the demands of 3x3 basketball.

Drawn into Pool A alongside Chinese Taipei and the winner of Qualifying Draw A, Mongolia will look to establish rhythm early as they begin their campaign.

Women: Proven core, unfinished business

If the men are evolving, the women arrive with continuity and momentum.

Mongolia bring back the core of the team that finished second at the FIBA 3x3 World Cup 2025, led by Khulan Onolbaatar and rising star Nandinkhusel Nyamjav.

Onolbaatar, who embodies Mongolia's "warrior spirit," continues to set the tone with her leadership and competitiveness, while Nyamjav adds a new dimension as one of the most promising young players in the game.

Despite their global success, Mongolia are still chasing their first FIBA 3x3 Asia Cup title in the women’s competition. They enter Pool B alongside New Zealand and the winner of Qualifying Draw B.

Back on the hunt
Both teams carry the same motivation.

After finishing on the podium in 2024 but falling short in 2025, Mongolia return with a point to prove.

With a blend of emerging talent and established leaders, they once again position themselves as one of the teams to beat in Singapore.

FIBA

Jade Gas secures AU$1.8 million to advance Mongolia’s first commercial gas operation www.petroleumaustralia.com.au

Jade Gas Holdings Ltd. has completed a AU$1.8 million capital raise to deliver the first commercial gas production in Mongolia.

The company issued 60 million new shares at 3 cents per share.

Jade Gas will use the funds for its Red Lake gas field, part of the Tavantolgoi coal bed methane (TTCBM) project. Jade is focusing on executing initiatives at the project to deliver Mongolia’s first commercial gas production operation.

Jade’s strategy is to develop all of its projects so that gas produced may, in the long-term, provide an economically viable and reliable supply option to the power and transport sectors in Mongolia, initially in the South Gobi.

The funds raised will support several near-term value milestones including securing a maiden gas reserve booking, submission for a gas production licence and advancing commercial and strategic initiatives to establish a substantial gas operation.

Meanwhile, the company is pursuing multiple commercialisation options to participate in the heavy vehicle transport and power sectors through both compressed and/or liquified natural gas projects.

Achievement of Jade’s strategy will displace the heavy reliance on imported gas and gas liquid products, especially diesel fuel, and coal fired power.

This will increase the security of energy supply for Mongolia as well as provide significant improvement in air quality and other environmental outcomes.

Getting Detached: How Coal-to-Solar Is Moving Beyond Mongolia’s Gers www.asiafoundation.org

In Ulaanbaatar, where winter temperatures regularly fall below –30°C, heating systems are literally a matter of life and death. For decades, coal-fired stoves have both facilitated and burdened daily life in the city’s ger districts. The ubiquity of the smoke-belching stoves reflects the lack of modern infrastructure or affordable alternatives. Making matters worse, coal stoves contribute 70 to 80 percent of particulates in one of the world’s most severely polluted urban areas in winter. 

Thus, finding safe, affordable alternatives that function in the harsh environment and fit within people’s homes and routines has been a top priority for The Asia Foundation (TAF) in Mongolia. Over the past several years, the Coal-to-Solar initiative implemented by TAF in partnership with URECA LLC and Ger Urguu NGO has been piloting alternatives with transformative impact. 

From Idea to the First pilot 
Coal-to-Solar launched in 2022 with pilot funding from TAF and a simple but ambitious idea: to make clean energy solutions not only technically viable, but accessible and scalable for everyone, including ger district households.  

As explored in In Mongolia, A Quest to Democratize Carbon Credits, the early phase focused on testing whether integrated systems combining solar power, electric heating, and battery storage could replace coal while also generating verifiable carbon reductions. But technology alone was never the solution. From the outset, the initiative recognized that lasting change depends on how well innovation fits into people’s daily lives, their routines, livelihoods, economic realities, and aspirations. 

In the years since, families have jumped at the opportunity to rid themselves of their coal stoves and the backbreaking labor of feeding the beasts. In 2024, with generous funding from the Australian Department of Foreign Affairs and Trade, TAF launched the Women’s Climate Resilience project to expand the initiative through TAF’s Women’s Business Center. 

The early results, captured in How Transitioning from Coal to Renewable Energy Transformed a Mongolian Family’s Life, revealed something critical: the success of renewable energy transitions is not just measured in emissions reduced, but in daily lives improved, especially for women entrepreneurs.  

First Kindergarten to transition to renewables under The Asia Foundation’s “Women’s Climate Resilience” project Arvaikheer, Uvurkhangai province, 2025 
A New Milestone: First Pilot of Coal-to-Solar in a Detached House 
While the initiative expands to transition more gers, there is a bigger challenge: decarbonizing the estimated 134,000 detached houses in the district. Due to their larger size and higher heating demand, these houses typically consume 30 to 50 percent more coal and emit higher emissions and air pollution than gers. Plus, the houses vary widely in construction, insulation, and layout, making it difficult to apply a standardized solution.  

Transitioning detached houses to solar heating requires not just technology but also close collaboration between innovators and households to adapt solutions to fit real conditions in Ulaanbaatar ger-districts.  

On a cold March 2026 morning, that innovation became a reality inside the home of Ms. Davaakhuu and Mr. Namsraidorj. Just days earlier, the family had removed their masonry coal stove that had stood at the center of their home for nearly 30 years. While it had been essential, it came with a tremendous cost of endlessly hauling coal, tending fires, cleaning ash, and living with toxic invisible indoor smoke. 

Now, for the first time since 1998, it was gone. When we visited the household on March 18, the moment marked more than a household upgrade but reflected how innovation, when applied thoughtfully, can reshape daily lives of a family.  

Where Technology Meets Daily Life 
Ms. Davaakhuu, a client of TAF’s Women’s Business Center, and her spouse Mr. Namsraidorj had long accepted coal heating as a necessity. Like many families, they had even considered moving into an apartment to escape the burden and outdoor air pollution during winter peaks. 

That changed when they were selected as the first pilot household to test Coal-to-Solar in a detached house, supported by the British Embassy Ulaanbaatar through the Foreign, Commonwealth & Development Office. Under this pilot, in February 2026, their home was equipped with an integrated system, including a cold-climate heat pump for primary heating, solar photovoltaic panels generating renewable electricity, battery storage for energy reliability, and a smart monitoring system verifying coal reduction in real time.  

Mr.Namsraidorj and Ms.Davaakhuu in front of their detached house and 10kW solar panels 
Developed and implemented by URECA, the system reflects an important shift of innovation being no longer tested in isolation, but it is embedded into everyday life of this family.  

What Change Looks Like in Practice 
The impact was immediate and deeply practical. “We sleep longer now,” the family shared. 

Without the need to wake early to light the stove or tend fire throughout the day, their routine has fundamentally changed. The transition has created space not only for comfort, but for opportunity. Ms. Davaakhuu now dedicates more time to expanding her handmade soap business. Mr. Namsraidorj, a retired welder, is finally able to rest and plan time with family after years of labor-intensive work, including maintaining their greenhouse business in their plot. 

“We were especially fortunate to work with Ms. Davaakhuu and Mr. Namsraidorj’s family,” the URECA team said. “They were an exemplary household, and Mr. Namsraidorj brought rare practical knowledge through his welding work and his experience at CHP-4 [Thermal Power Plant No.4] in Ulaanbaatar. He even helped build some components of the solar system himself. In many ways, he felt like part of our engineering team.”  

The household shared how their home now feels healthier; the air is clearer and the effort once required to maintain warmth has disappeared. This is how change happens. Not only through systems installed, but through lives made easier. 

Building a Path to a Smoke-Free Future 
This pilot is more than a technical milestone. It demonstrates how collaboration between innovators, communities, and development partners can turn possibility into practice. Early results show that renewable energy can supply a substantial share of household electricity demand in winter while reducing heating costs. At the same time, real-time monitoring systems make emissions reductions measurable, opening pathways for carbon financing. 

A small survey conducted in collaboration with Breathe Mongolia NGO in 2025 highlights that average 2.5 micrometer particulate matter level was 3.5 times lower in solar heated households. Findings were similar for 1 and 10 micrometer particulate matter. Converted households met Mongolian air quality standards 98.3 percent of the time compared to 25.4 percent for coal-heated households.  

But perhaps most importantly, the project shows that a smoke-free future in Ulaanbaatar is not a distant vision as it is already being built, one household at a time. 

A view from the household’s bedroom with the heat pump installed, Ulaanbaatar Mongolia 2026 
Coal-to-Solar’s expansion into detached housing is not the end of the journey. The next step is understanding how clean energy transitions can scale across diverse conditions. It is crucial to understand that technology alone does not create change. Change happens when technology is designed, adapted, and deployed with the input and involvement of families. 

Through continued collaboration with partners like URECA, and with the support of initiatives such as the FCDO-funded pilot, the expansion of the DFAT funded Coal-to-Solar project is demonstrating how innovation can move beyond pilots and change more people’s lives. 

Standing Committee Reviews 2025 Torture Prevention Report www.montsame.mn

The Standing Committee on Legal Affairs of the State Great Khural discussed the 2025 report on torture prevention at its meeting on March 31, 2026.

Presenting the report, Tselmen Yadamjav, commissioner in charge of torture prevention at the National Human Rights Commission, said the fourth annual report was prepared based on monitoring, training, advocacy, inter-agency cooperation, official data, and international assessments. The report includes eight chapters and 14 recommendations.

In 2025, monitoring activities covered over 11,000 kilometers, with 65 inspections conducted and 1,709 individuals interviewed or surveyed. A total of 51 recommendations containing 474 provisions were issued to relevant authorities, with an implementation rate of 85 percent.

The report identified persistent issues, including poor sanitary conditions in detention facilities, violations of living standards, prolonged placement in fixed positions, limited access to healthcare, inappropriate conduct and ethical violations by officials, restricted access to complaint mechanisms, and shortcomings in surveillance data storage.

Interviews and surveys also revealed recurring cases of intimidation, verbal abuse, psychological pressure, and unethical treatment by officials toward persons deprived of liberty. Since 2022, 46 recommendations have been submitted to the Court Decision Enforcement Agency, with some cases referred for investigation due to potential criminal elements.

Over the past four years, 229 complaints and reports related to torture and other forms of cruel, inhuman, or degrading treatment have been received. Between 2022 and 2025, a total of 605 training sessions and discussions were held, reaching 96,190 participants. In 2025 alone, 386 training sessions on the right to be free from torture were conducted, involving 55,335 people.

The report noted that although Mongolia criminalized torture in 2015 for all public officials, a lingering perception remains that it applies only to investigators, prosecutors, and judges. It also highlighted insufficient efforts to raise public awareness and prevent violations, with excessive focus placed on post-incident investigation rather than prevention.

Deputy Secretary General of the Parliament Secretariat, Erdenebat Ganbat, stressed the need for better planning and implementation aligned with UN recommendations to achieve tangible results through multi-stakeholder cooperation and by addressing the root causes of torture.

Chairman of the Standing Committee Tsogtbaatar Damdin emphasized that while progress has been made, further efforts are needed to strengthen the national human rights protection system and advance torture prevention at a broader, systemic level.

Mongolia asks Russia not to raise sale price for oil amid instability on global market - Cabinet of Ministers www.interfax.com

The Mongolian government has appealed to the Russian government with a request not to raise oil prices in bilateral trade, despite the volatility of prices on the global oil market provoked by the conflict in the Middle East, the Mongolian Cabinet of Ministers wrote on its website.

"Despite the existing disbalance between supply and demand and the volatility of prices on the oil market caused by the international geopolitical situation, a written request has been sent to Russian Prime Minister Mikhail Mishustin to stabilize the prices of the fuel which is supplied to Mongolia, and not to raise them," the statement reads.

The Mongolian Cabinet of Ministers said that the Russian government had responded, saying that it would resolve the issue of stabilizing fuel prices in the near future.

"The war in the Middle East has led to a sharp growth in fuel and oil prices, to a deficit, a crisis in transport and logistics and disruptions to foreign trade, which has paralysed the world economy. Many countries have reported a state of emergency. In our country, which is 100% dependent on imported fuel, the growth in prices and the supply deficit poses a particularly high risk. The price of fuel is the price of everything: [...] The price of bread, flour, meat, milk and all production resources," Mongolian Prime Minister Nyam-Osoryn Uchral is quoted as saying in the statement.

He said that the accompanying growth prices was feeding inflation even more, thus lowering wages, weakening the tugrik exchange rate and causing an outflow of dollars from the country. Transportation and operating costs in Mongolia have grown by at least 20% in recent times, decreasing companies' profits and household income in general.

Commenting on the initiative to adjust import duties for imported oil, previously spoken of by the Mongolian government, Uchral said that even if the duty of 5% of the price is abolished, this would not be enough to change the "price storm" on the global market.

"We have already seen enough in many sectors to understand that administrative attempts to control prices are effective at the current moment, but the consequences are serious. Lowering or waiving taxes and fees levied on fuel are limited and have little effect on prices. Nobody can predict how prices will grow due to force majeure circumstances on the international market, or what will happen tomorrow. It is essential that we work hard to prevent a fuel shortage. We will maintain an active dialogue and contact with Russia across all areas and work on ensuring supplies are delivered without disruptions," the prime minister said.

As reported, the Mongolian government sees the consequences of the U.S. and Israel's military operation in Iran as a serious threat to its fuel market and financial stability. Mongolia's economy is entirely contingent upon imported petroleum products and will suffer from the global shock on the world market, which will bring about a fuel crisis lasting for up to several months.

Russia is Mongolia's principal supplier of petroleum products, making up 95% of the total imports.

Mongolia names new prime minister in bid to end legislative deadlock www.apnews.com

Mongolia’s parliament has confirmed Uchral Nyam-Osor as the third prime minister in a year in a bid to end a deadlock in the legislature at a time of mounting economic pressures for the landlocked, resource-dependent country.

Uchral called for political unity, saying internal disputes have compounded external challenges.

“As others unite to confront crises, we cannot afford political infighting that weakens our economy,” he told lawmakers.

A total of 107 of the body’s 126 lawmakers voted Monday night, with 88 supporting Uchral — or 82.2% — clearing the way for the 39-year-old leader to take office.

Uchral is a former minister of digital development and communications, where he promoted transparency reforms and digital governance initiatives. Before entering politics, Uchral got public attention as a hip-hop artist under the stage name “Timon.”

He has positioned himself as a reform-minded leader focused on modernizing Mongolia’s regulatory environment, including streamlining the permitting systems inherited from the country’s Soviet-era. Mongolia transitioned to democracy in 1990 after decades of one-party Communist rule.

Uchral was seen as a compromise between factions in the Mongolian People’s Party loyal to the president and others loyal to a former prime minister, Oyun-Erdene Luvsannamsrai.

A boycott by the opposition Democratic Party and the infighting in the ruling party had left the parliament without the required number of members to hold votes in the session that began about two weeks ago.

Outgoing Prime Minister Zandanshatar Gombojav, who had taken office nine months ago, submitted his resignation Friday to resolve the crisis. He was also under pressure because one of his senior ministers faced corruption allegations.

Zandanshatar, who is close to the president, had replaced Oyun-Erdene, who was prime minister for four years before resigning last June after losing a vote of confidence in parliament. All three prime ministers are from the Mongolian People’s Party.

Mongolia excluded from Russian gasoline ban www.gogo.mn

Alexander Novak, Deputy Prime Minister of the Russian Federation, has officially announced a complete ban on the export of gasoline from Russia beginning April 1, 2026.

On March 29, the Ministry of Energy and Mineral Resources said that Mongolia will not be affected by the ban. In September 2024, Mongolia and Russia signed an agreement on cooperation in the petroleum products sector, which exempts Mongolia from the restriction. 

We are focusing on increasing Mongolia’s participation in international logistics networks www.en.mininginsight.mn

The current state of Mongolia’s transport sector, the progress of railway projects, and cross border connectivity were discussed in an interview conducted by Mining Insight’s E. Odjargal with B. Delgersaikhan, Minister of Roads and Transport.

As Chair of the National Committee to Reduce Traffic Congestion in Ulaanbaatar and as Minister of Roads and Transport, you are directly involved in transport infrastructure. What key issues and priorities are you focusing on?

In essence, the work of the Minister of Roads and Transport is about creating domestic and international connectivity, and it also has a diplomatic dimension. In modern political and economic thinking, connectivity has become a central concept. As strategist Parag Khanna has noted, countries that can connect to multiple markets are the ones that develop. Transport infrastructure networks therefore play a critical role in the economy. Mongolia, which is highly dependent on imports, is incurring significant losses due to inefficient domestic freight transport, slow turnover, weak connectivity, and the absence of a well-developed national network. Improving connectivity across all modes of transport is essential, though this must be done with clear priorities and a focus on strategically and economically viable routes. When I assumed the role of Minister, I committed to focusing on the country’s key strategic projects. First, to improve safety for Ulaanbaatar and its residents, we are advancing the Bagakhangai–Khushig Valley railway project to address the rail line running through the capital. Second, we are prioritizing cross-border railway connections by expanding access to foreign markets. This includes new railway routes and border connections to support mineral exports. These efforts aim to reduce transport costs, strengthen export competitiveness, and increase Mongolia’s participation in international logistics networks.

What policies are China and Russia pursuing in terms of transport infrastructure connectivity, and what kind of discussions are being held with Mongolia?

In reality, Mongolia has only two neighboring countries. By making use of the opportunities offered by these large markets, Mongolia is focusing on developing its western and eastern railway corridors and, in the longer term, opening the shortest route connecting Europe and Asia. This is considered essential for the country’s future development. The programme to establish the Economic Corridor, signed in 2014 by the heads of state of Russia, Mongolia, and China, clearly outlines railway routes along the eastern and western vertical axes. At present, Mongolia’s main source of income is mineral resources. Six types of mining products account for 95 percent of the country’s exports, most of which are bulk cargo. It is estimated that 25 to 30 million tonnes of mineral products and raw materials are exported annually via Ulaanbaatar Railway. However, the Zamyn-Uud border crossing has a capacity of only about 12 million tonnes per year, which limits the transport of both domestic mineral products and transit cargo. Ulaanbaatar Railway, a joint venture owned 50:50 by Mongolia and Russia, has traditionally focused on maintaining the northern route. Meanwhile, the southern sections, particularly beyond Sainshand, have gentle gradients that restrict both passenger and freight transport. The Zuunbayn–Sainshand line was not originally designed for full freight use and can carry loads of only two to three tonnes. 

Mongolia has been transitioning to a market economy for more than 30 years. As a result, export-oriented railway lines that connect the country to international markets are critically needed. 

For this reason, the Gashuunsukhait–Gantsmod border railway project is being implemented as a priority.

The Gashuunsukhait–Gantsmod border railway project, which will open Mongolia’s second cross-border railway connection after more than 60 years, has been discussed since 2008, yet construction has only recently begun. When is it expected to be completed?

Discussions on connecting the Gashuunsukhait–Gantsmod railway across the border date back to 2010, and it is said that 55 meetings were held with the Chinese side. After I was appointed Minister of Roads and Transport, I participated in the 56th meeting. It is true that negotiations with the Chinese side were complex, particularly regarding missed opportunities. China also consistently raised the issue of cross-border railway connections. Following the agreement reached, construction of the long-delayed Gashuunsukhait–Gantsmod cross-border railway finally began in June 2025. As Mongolia has waited many years to move this project forward, border and customs-related issues have been carefully addressed. In particular, a dedicated zone for incoming workers has been established, and border protection authorities have been instructed to ensure that the work proceeds without disruption. As a result, construction is progressing according to plan. Of the more than 3,000 bridge pillars required, around 1,100 have been completed to date. The target is to reach 70 percent completion by 2026.

How much bulk cargo is currently being transported on the Tavan Tolgoi–Gashuunsukhait railway?

Under a resolution of the Government of Mongolia, the infrastructure and rolling stock of the Tavan Tolgoi Gashuunsukhait railway are being operated under a lease agreement by Mongolian Railways. In accordance with a long term coal transportation agreement signed between Mongolian Railways and China Energy Coking Coal, transportation began on 24 June 2025. To date, over a seven-month period, a total of 4 million tonnes of coal have been transported.

Will the Tavan Tolgoi–Gashuunsukhait railway be extended westward toward Dalanzadgad?

Yes. Design work is currently underway for a 100-kilometer railway line along the Tsogttsetsii–Dalanzadgad route. First, this will connect the capital of Umnugovi Province to the cross border railway. The line will later form part of the planned Zamiin Uud–Zuunbayan–Dalanzadgad–Shiveekhuren railway corridor. By linking the provincial capital to the Tavan Tolgoi–Zuunbayan railway and providing southbound access as well as a route toward Zamiin-Uud, this project will enable not only the transport of mining products but also the movement of goods for local residents and private businesses.

One of the key elements of the intergovernmental agreement on the Gashuunsukhait–Gantsmod cross border railway is the plan to connect the next phase of border crossings, namely Shiveekhuren–Sekhe and Khangi–Mandal, by rail. When is the Shiveekhuren–Sekhe cross-border railway expected to be connected?

That is correct. The agreement stipulates that once construction at Gantsmod begins, negotiations on cross-border rail connections at other border points will also commence. In line with this, at the opening ceremony of the Gashuunsukhait Gantsmod cross-border railway construction, an agreement was reached with the Chinese side to begin the Shiveekhuren–Sekhe railway connection. Discussions are currently ongoing at the working level, and the agreement is expected to be signed this year. There is a possibility that the Shiveekhuren–Sekhe railway could be connected and become operational ahead of the others. Essentially, the connection requires laying approximately 300 meters of railway to link with the Chinese side. Construction on the Mongolian side of this cross-border railway project was fully completed in 2024 and accepted by the state commission.

Will a railway be built from the Shiveekhuren border crossing to the Nariinsukhait group of deposits, and if so, when?

Yes, it will be built. Once the Shiveekhuren–Sekhe cross-border railway connection is completed, a railway line will be extended to the Nariinsukhait group of deposits. The companies currently engaged in coal mining at those deposits will construct this railway themselves, as they have the right to do so.

More broadly, will Mongolia’s western vertical railway corridor be extended as far as Arts Suuri? The “State Policy on Railway Transport” includes the Arts Suuri Nariinsukhait–Shiveekhuren route.

This has not yet been finalized. At present, there is no clearly identified investor for this railway project. The main unresolved issue remains the question of railway gauge.

What is the current operational status of the Tavan Tolgoi–Zuunbayan railway, which forms part of the east–west horizontal axis connecting the western and eastern vertical corridors, including the Shiveekhuren Dalanzadgad–Tavan Tolgoi–Zuunbayan route? Is freight transportation increasing?

At present, six coal trains per day are operating on this railway, transporting coal to the Khangi border crossing. From this year onward, coal exports from the Umnugovi side, particularly from Tavan Tolgoi, will increase. From the Dornogovi side, transportation of lignite coal for export will also increase significantly.

At what stage is the cross-border railway connection project at the Khangi–Mandal border crossing?

A working group has been established to ensure unified management and coordination of negotiations with the Chinese side and to develop technical solutions for the construction of the Khangi–Mandal cross-border railway. Discussions with the Chinese side are ongoing. It is necessary to include this railway project in China’s 15th Five-Year Plan, to amend the 2004 intergovernmental agreement between Mongolia and China on border crossings and their regimes, and to formally approve the border connection point. Construction work will begin after these steps are completed.

What expansion and modernization works are being carried out at the Khangi border crossing? What export capacity is being achieved? What are the prospects for increasing Mongolia’s mining exports through this crossing, and how strong is demand from the Chinese side?

At the Khangi border crossing, terminals for bulk cargo, hazardous cargo, and fuel are being constructed. All construction work at the border crossing is expected to be completed this year. Demand for coking coal, which is Mongolia’s main export revenue source, is strong among end users in the Baotou industrial region, one of China’s leading steel-producing centers and the world’s second-largest industrial hub. Baotou is the most important, largest, and closest market for Mongolia’s coking coal. This reflects Mongolia’s geopolitical reality.

Erdenes Tavan Tolgoi has announced plans to increase coal exports through the Khangi border crossing. Freight volumes on the Zuunbayan–Khangi railway are expected to grow. Will the capacity of this railway be expanded?

At present, there are orders totaling 10 million tonnes from the Zuunbayan side. Looking ahead, as conditions improve for delivering coal to Chinese end users via a shorter route, freight demand on this railway is expected to increase, and the railway’s capacity will therefore be expanded.

What is the status of the Bichigt–Zuunkhatavch cross border railway project?

The issue of railway gauge at Bichigt has not yet been resolved. Because the gauge issue remains unsettled, investment decisions have also been delayed. There are estimates that more than 400 kilometers of railway would need to be constructed along the eastern vertical corridor to reach the Bichigt border crossing. The feasibility study for the Bichigt–Zuunkhatavch cross-border railway project is currently being prepared by Mongolian Railways. After that, a selection process will be conducted. The project is planned to be implemented as a public–private partnership. Mongolia’s eastern corridor railway would pass through China’s Zuunkhatavch border crossing and continue through Liaoning Province to the Jinzhou seaport. This is expected to help reduce congestion and pressure at Tianjin Port, which currently handles much of Mongolia’s foreign trade cargo. Mongolia also sees potential for cooperation with Russia on the Solovyovsk Ereentsav–Bichigt railway route, although Russia is currently facing limited financial resources. The Ereentsav railway line is operated by the Ulaanbaatar Railway joint venture. Overall, in parallel with the construction of the Bichigt border railway, domestic infrastructure will need to be upgraded and improved. 

What is the current progress of the Bagakhangai Khushig Valley railway project, which branches off from the 1,100-kilometer railway network operated by Ulaanbaatar Railway?

Although a decision was made three years ago to implement the Bogd Khan Railway project, no construction work had begun until it was restarted. Agreements were reached through negotiations with Russian Railways. Construction of this railway officially commenced on 25 April 2025, with plans to put it into operation in 2027. This is a project of strategic importance for national development. Once this branch railway becomes operational, it will be possible to transport 34 types of hazardous cargo, including fuel, chemicals, and explosive materials, along a new route south of Bogd Khan Mountain without passing through the city center, significantly improving safety for residents of the capital. In addition to traffic congestion, hazardous cargo should not pass through the city. At present, 424 trains carrying explosive materials are stopped in Ulaanbaatar. Due to a lack of storage facilities and other constraints, these cargos are not unloaded and remain stationary for extended periods. This issue has been repeatedly raised with relevant authorities, including the Cabinet Secretariat, the State Emergency Commission, and the General Intelligence Agency. Despite budget constraints, work has continued. With the efforts of 62 domestic companies, 82 kilometers of basic infrastructure have been completed, and the upper structure has reached 10 percent completion. Mongolian Railways has been financing part of the project through its own efforts. In general, management at Mongolian Railways and Ulaanbaatar Railway is required to operate with the efficiency of private companies. We must reduce excessive structures and unnecessary burdens in order to operate profitably. Once this branch railway enters operation, it will be capable of transporting 3.5 million tonnes of cargo in the first year, increasing to up to 20 million tonnes annually over time. As a result, between 316 and 1,800 heavy trucks per day will no longer need to operate on the capital’s roads. This is expected to reduce traffic congestion in Ulaanbaatar by 20 to 30 percent and lower noise and air pollution.

What road infrastructure projects are currently being implemented?

For the first time in Mongolia, a heavy-duty, special-purpose road will be constructed through a public–private partnership. This will serve as a model for the country and mark the beginning of a gradual transition toward toll roads in line with international practice. In recent years, vehicles transporting mining products and fuel operated by individuals, businesses, and organizations have frequently exceeded weight limits. Vehicles with an actual weight exceeding 44 tonnes while traveling on public roads are required to use non-public, special-purpose roads. Last year, construction began on the first phase of a 152-kilometer paved road along the Baruun-Urt–Bichigt route, connecting Baruun-Urt, the center of Sukhbaatar Province, with the Bichigt border crossing. The project is planned for implementation between 2025 and 2027 with state budget funding totaling MNT 324 billion, of which MNT 31.6 billion has been allocated in the 2025 state budget. Once the paved Baruun-Urt–Bichigt road is completed, a new Asia–Europe road network passing through Mongolia will be added, and the Bichigt border crossing is expected to develop into a major gateway after Zamiin-Uud. This will create opportunities for trade with Northeast Asian countries via Chinese ports such as Tianjin, Jinzhou, and Dalian, giving the project significant economic importance.

What are the main priorities in the aviation sector for 2026?

This year, the focus is on passing the international audit (USOAP CMA), launching flights to the United States, and increasing the number of international flights transiting through Mongolia’s airspace. Under Mongolia’s 2026 State Budget Law, the amount of air navigation service charges transferred to the state budget will be reduced, with MNT 40 billion allocated for upgrading technical equipment to ensure flight safety. In addition, efforts will be made to upgrade Gurvansaikhan Airport in Umnugovi Province, Murun Airport in Khuvsgul Province, and the airport in Bayan-Ulgii Province to international airport status.

Is the new international airport reaching capacity?

It is true that passenger numbers have increased and the airport is becoming crowded, but this is a positive challenge. In my capacity as Minister of Roads and Transport, I paid an official visit to Japan this month and met with Japan’s Vice Minister for Foreign Affairs as well as the Vice Ministers of Land, Infrastructure, Transport and Tourism. These were decision-making meetings. In line with agreements previously reached at the government level between the two countries, the airport will be expanded using Japan’s loan facility of up to USD 1 billion. The currently operating Chinggis Khaan International Airport was originally designed to serve 1.6 million passengers, with a total area of 37,000 square meters. As of 2025, it is handling 2.4 million passengers. With increases in both international and domestic flights, passenger numbers are expected to continue growing. Demand for international flights is particularly strong. Therefore, the airport will be expanded to a total area of 86,000 square meters, which will add 11 additional boarding and disembarkation gates. The expansion work is scheduled to begin in 2027.

What challenges is Mongolia’s transport sector currently facing?

The development of Mongolia’s railway sector is influenced by many external and internal factors. At a time when global economic and geopolitical conditions are changing by the minute, it is essential for us to act quickly and decisively in developing the railway sector. Within the framework of Mongolia’s foreign policy concept, we strive to cooperate on railway sector development on an equal footing with all countries around the world. In particular, we are working to expand cooperation with our neighboring countries, Russia and China. Cooperation with neighboring countries must be based on aligned interests. From a domestic perspective, however, it is very difficult to secure political decisions for the railway sector. Railways are mega projects that are directly linked to the country’s economy and development, involving decisions at the level of Parliament and the Government, as well as complex investment issues. There are many challenges in this regard. Nevertheless, compared to the past, an important shift has taken place in Mongolia’s mindset. There is now a growing recognition that Mongolia is capable of building railways using its own internal resources and capacities.

Thank you for the interview.

Mining Insight Magazine,  January 2026