Internal party splits force Mongolia’s PM to step down www.intellinews.com

Mongolian Prime Minister Zandanshatar Gombojav resigned late on March 26 following a legislative stalemate that has hobbled parliament. His departure has laid bare factionalism within the ruling party, signalling uncertainty ahead of key elections. 

Zandanshatar, who took office in June last year, replacing Oyun-Erdene Luvsannamsrai, stepped down as parliament remained paralysed by factional disputes and an opposition boycott. He said he was leaving to reduce tensions and protect the national interest.

“I am not seeking to hold my position. Therefore, I am stepping down, prioritising the interests of the country,” Zandanshatar told lawmakers.

The resignation is a sign of rare instability inside the Mongolian People’s Party (MPP), a political juggernaut that has controlled the country of 3.6mn for most of its modern existence. The MPP has struggled to maintain consistent leadership since last year’s departure from the PM’s office of Oyun-Erdene.

The infighting could make investors wary at a time when Mongolia is trying to sustain economic momentum, and it also signals potential trouble for the MPP as the country moves toward its next election cycle.

Parliament voted to accept Zandanshatar’s resignation. He will serve in an acting capacity until a new prime minister is confirmed.

Internal splits within the MPP were recently highlighted when a faction aligned with Oyun-Erdene did not attend sessions, helping to prevent a quorum. The opposition Democratic Party, meanwhile, has boycotted parliament since the spring session opened, deepening the gridlock.

On March 29, state news agency Montsame reported that the MPP had nominated Speaker of Parliament Uchral Nyam-Osor, 39, as the next prime minister. The party later backed his nomination with 99.7% support at a conference. The legislature is expected to confirm him early next week.

Uchral has an MBA degree from the University of Gloucestershire and has served as a member of parliament since 2016, when he was elected as a 29-year-old. He touts a programme called the Four Liberations – a platform to free Mongolia from economic gridlock, legal sprawl, fossil fuel dependence and systemic corruption. 

Unconfirmed reports said Uchral offered Zandanshatar a cabinet post, suggesting at least some policy continuity if the transition proceeds smoothly.

Analysts said the resignation appears to reflect more than a simple personnel change. Amar Adiya, a political commentator and editor of Mongolia Weekly, said the move marks the closing phase of a longer struggle inside the MPP rather than an escalation of tensions. 

“The resignation is not a surprise; the ruling party has been managing unresolved internal tensions since the previous leadership transition and those pressures are now being resolved rather than escalated,” Amar said. 

Amar said the key question is whether Uchral can quickly assemble a cabinet capable of balancing competing factions within the party.

Julian Dierkes, a Mongolia expert at the University of Mannheim, described Zandanshatar as a weak prime minister and said his departure was another sign of “rampant infighting” within the MPP.

“Substantively, a new PM will make little difference; none of the current fight is about policies,” Dierkes said.

Zandanshatar, in his resignation speech, pointed to economic gains during his nine months in office, including higher exports, faster growth and larger foreign currency reserves. He said the government had tightened its own belt rather than burdening the public.

He closed his address by emphasising the importance of institutional stability over individual roles in government. 

“Positions are not eternal, but the Mongolian state is,” he said.

By Michael Kohn

Mongolia Plans to Provide Full Mobile Coverage Across Its Vast Territory by 2028 www.open.kg

The Minister of Digital Development, Innovation, and Communications of Mongolia, Batshugar Enkhbayar, announced on Wednesday plans to expand the mobile network to cover all bags of the country — the smallest administrative units, including the most remote areas with small populations. This was reported by MiddleAsianNews.

Mongolia covers an area of 1,564,116 km², which is three times the size of France, and ranks 18th in the world by land area.

There are 1,650 bags in the country, of which 104 do not have access to mobile communication. At a press conference following a government meeting, Batshugar promised that all these areas would be connected to the mobile network by 2028.

According to the minister, internet connectivity across Mongolia will help address important issues, including the provision of government services in electronic format.

Currently, mobile networks, primarily 4G/LTE, cover approximately 95% of the population, but only 23.8% of habitable land has a stable signal. Large areas of steppe, the Gobi Desert, and remote mountainous regions remain without reliable coverage.

A national satellite is planned to be launched in 2027, which will provide communication in the most inaccessible places where building mobile towers is too expensive or impractical.

Since 2025, a 5G network has already been launched in Mongolia, focusing on Ulaanbaatar and the centers of aimags. Plans aim to cover 70% of the population with 5G by 2027. Major operators such as Unitel, Mobicom, Skytel, G-Mobile, and ONDO are participating in this project.

This initiative is part of a broader program in Mongolia called "Digital Nation," aimed at bridging the digital divide between urban and rural areas, supporting e-learning, telemedicine, smart mining, improving livestock management, and stimulating economic growth.

Among the challenges faced by the initiators are extreme climatic conditions, low population density, which complicates infrastructure development, and the need to implement hybrid solutions, such as a combination of mobile towers and satellites.

MPP Backs Uchral for Prime Minister with 99.7 Percent Vote www.montsame.mn

At the third session of the ruling Mongolian People’s Party (MPP) Conference, Secretary-General Sodbaatar Yangug formally introduced the nomination of Party Chairman Uchral Nyam-Osor as a candidate for Prime Minister.  

During the session, 32 members of the conference raised questions to the nominee on political, social, and economic issues, received responses, and expressed their views.

A secret ballot was then conducted among attending members. As a result, the conference adopted a resolution supporting Uchral’s nomination for Prime Minister with 99.7 percent of the vote.

Of the 597 conference members, 421 were present at today’s session.

Prime Minister Zandanshatar Gombojav Resigns www.montsame.mn

At the plenary session of State Great Khural (Parliament) on March 27, members of Parliament discussed the resignation request of Prime Minister Zandanshatar Gombojav.

During the session, he stated, “I am not seeking to hold my position. Therefore, I am stepping down, prioritizing the interests of the country. This is not merely about handing over a position; it is about calling on politicians to unite for a greater common interest and setting a personal example by doing so.” After responding to questions from members of Parliament, he delivered a report on the work carried out over the past nine months.

In his remarks, he highlighted, “In 2025, for the first time in history, we reduced budget expenditures by MNT 2.2 trillion through an austerity amendment. As a result, coal exports reached 90 million tons, and total exports hit USD 15.8 billion. Cashmere exports increased 4.7 times, and meat exports rose by 25.7 percent. Economic growth improved from 2.6 percent to 6.8 percent, while inflation declined from 8.3 percent to 6.5 percent. The balance of payments shifted from a USD 600 million deficit to a USD 1 billion surplus. Foreign currency reserves reached a historic high of USD 7 billion, increasing by USD 2.1 billion. These are not just numbers; they are the results of sound policy.”

Parliament Speaker Uchral Nyam-Osor wished him success in his future public service. At the end of the session, a vote was held to accept Prime Minister Zandanshatar’s resignation, with 74 percent of members voting in favor.

He will continue to serve in an acting capacity until a new Prime Minister is appointed.

Seema Malhotra: There is significant potential to expand cooperation with British companies investing in Mongolia www.gogo.mn

Seema Malhotra, the UK Minister of State for the Indo-Pacific at the Foreign, Commonwealth and Development Office, has visited to Mongolia from March 23 to 25. On the final day of her visit, we had a brief conversation with her while she was meeting students who had learned English as part of a project aimed at improving the skills of English language teachers.

I understand this is your first visit to Mongolia. How has your visit been so far, and what would you highlight as the most memorable moments?
This is my first visit to Mongolia, and it has been a very special few days. I am here as the Minister for the Indo-Pacific, and I am truly grateful for the incredibly warm welcome.

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UK expertise has contributed to providing advice and supporting Mongolia’s development plans

It has also been an important visit, as I was able to co-chair our annual political dialogue with the Deputy Foreign Minister, Amirtuvshin.D , and to meet with the Prime Minister. We have had valuable discussions about the future of the UK–Mongolia relationship, which is a long-standing and deep partnership going back over 60 years, when the United Kingdom was the first country to recognise Mongolia and establish diplomatic relations.

This also reflects our shared democratic values and the importance of investing in people-to-people ties. The way our governments, parliamentarians, media, and civil society work together to advance these values is essential to building a secure and prosperous future for our nations.

I am incredibly grateful to everyone I have met. It has been a very full but important visit, during which we have recognised the challenges of today’s world and how we can work together to support each other’s progress and build the peace and prosperity we need for tomorrow. Thank you very much.

At the end of the 16th Mongolia–UK Roundtable Meeting, both sides agreed to strengthen cooperation in several areas, including the Ulaanbaatar Metro project. Could you elaborate on this cooperation?
I was very pleased to co-chair the annual political dialogue during my visit and to see the progress we are making. One example is the Ulaanbaatar Metro project—a visionary initiative that will transform lives in the city and serve as a flagship project for Mongolia.

It is encouraging to see how UK expertise has contributed to providing advice and supporting Mongolia’s development plans. There are also opportunities through UK Export Finance to offer unprecedented support for this initiative moving forward. Long-term projects such as this, which reduce congestion, lower pollution, and invest in public transport, deliver significant economic benefits and can be truly transformative. We have seen the impact of such investments in our own country and continue to prioritise them.

I also appreciated our discussions on expanding cooperation in areas such as critical minerals. Mongolia has strong potential and leadership in this field. During my visit, I had the opportunity to visit Oyu Tolgoi and observe the partnerships in place, as well as the emphasis on sustainable development, responsible mining, and contributions to local communities. These are important standards for the future.

There are strong opportunities for UK expertise and university research to contribute, alongside ongoing cooperation in education, including partnerships with UNICEF and the Ministry of Education.

At a time when we are witnessing increasing global conflicts and challenges to the international rules-based order—values that both the UK and Mongolia strongly uphold—the importance of economic security and diversified supply chains is clear. There is significant potential for deeper cooperation between the UK, with its long history and expertise in mining, and Mongolia, particularly in supporting the UK’s critical minerals strategy and strengthening supply chain resilience.

I have seen this potential firsthand, including during the Critical Minerals Conference in Washington, where I also met the Mongolian Foreign Minister, as well as through recent ministerial exchanges between our countries.

I am also excited about our collaboration in emerging technologies and renewable energy, as we invest in a greener future. There are strong opportunities for UK expertise and university research to contribute, alongside ongoing cooperation in education, including partnerships with UNICEF and the Ministry of Education.

Investing in education is particularly important. While today’s leaders shape current discussions, it is through education—especially English language learning—that we nurture the next generation. I was pleased to meet Chevening Scholars during my visit—over 200 since 1993, with another 20 this year.

Through these efforts, we are building future leaders together who will contribute to our economies, societies, and enduring people-to-people ties. I am incredibly proud of this.

What policy or regulatory changes do you believe are necessary to attract more British investment to Mongolia?
There is significant potential to expand cooperation with British companies investing in Mongolia, as well as opportunities for mutual learning and partnership.

When you hear directly from young people, they often say that they have not just learned a language—they have gained access to new opportunities and a broader world.

It is important to maintain a business environment that is trusted by investors—where disputes can be resolved efficiently, contracts and terms are clear and transparent, and decision-making processes are timely.

In a competitive global environment, it is essential to provide confidence to investors. Whether in renewable energy, critical minerals, infrastructure projects like the Ulaanbaatar Metro, or sectors such as technology and education, businesses need assurance that they are operating in a stable, transparent, and well-regulated environment.

This includes strong professional capabilities, a robust legal and regulatory framework, and conditions that support long-term partnerships. These are the key factors that will enable investment to grow and flourish.

The agreement for Phase II of the Breaking Language Barriers project was signed in December 2025. Could you update us on its progress? Are there plans for a Phase III?
It is very important that we continue building on the success we have already achieved. I am incredibly proud of the progress made in English language education through our partnership. More than 147,000 children across Mongolia have benefited from improved access to quality English language education.

This impact is evident not only in cities but also in rural areas. When you hear directly from young people, they often say that they have not just learned a language—they have gained access to new opportunities and a broader world.

I am also grateful to everyone involved in supporting the ongoing development of language teaching, particularly teachers. Nearly 750 teachers have received training, and many have shared how it has strengthened not only their own language skills but also their ability to teach and train others. This helps build long-term capacity and leadership within Mongolia’s education system, while also providing immense satisfaction in supporting young learners.

You mentioned the importance of civil society cooperation. How do you assess its current development, and how do you see it evolving in the future?
I am very proud of the work we are doing together to support civil society. This is crucial because it reflects that the UK–Mongolia relationship is grounded in shared democratic values. It is essential to ensure that civic spaces remain active and continue to thrive in order to sustain strong democracies in both our countries.

I am grateful for the strong partnership we have developed, including our collaboration with local and national government institutions in Mongolia.

During my visit, I was pleased to support the Youth for Change programme and to see its impact. Through this initiative, we are working with over 25 youth civil society organisations, helping young people build confidence, leadership skills, networks, and the ability to drive change in Mongolia.

Investing in civic spaces means investing in leadership and creating opportunities for dialogue between civil society and political leadership at both local and national levels. This empowerment supports the next generation of public and political leaders, while also ensuring that policymaking is informed by real experiences and insights.

I am grateful for the strong partnership we have developed, including our collaboration with local and national government institutions in Mongolia. Most importantly, we are investing in the next generation of leaders and strengthening a partnership that will continue to endure.

Thank you very much for your time.

Wastewater from ger districts to be treated to standards www.gogo.mn

Construction of the “Tuul-1” collector, the main wastewater transmission line connecting Ulaanbaatar to the central sewer system, began last year after being stalled for 20 years. As of today, the project is 25% complete.

Once the “Tuul-1” collector becomes fully operational, wastewater from ger districts will be treated and disposed of in accordance with standards, while open sewage discharge and soil pollution are expected to decrease. In addition, ger districts such as Uliastai, Sharkhad, Amgalan, Dambadarjaa, Dari-Ekh, and Chingeltei will be connected to engineering infrastructure, creating opportunities for further construction and urban development.

L.Altangerel, head of the Urban Engineering Infrastructure Department of the UB service and Chief engineer, said: “The Tuul-1 collector project was first initiated in 2007 by order of the Ministry of Construction. In 2025, the capital city governor and the City Council approved the required funding, and the Water Supply and Sewerage Administration is now implementing the project.”

He noted that this is the largest main wastewater pipeline built in Ulaanbaatar since 1980. The 30-km pipeline, with a diameter of 1,500 mm, will run from Gachuurt to the Central Treatment Plant. “It will eliminate wastewater discharge from ger districts, create conditions for construction, and improve living conditions,” he said.

B.Tamir, a technician at the Water Supply and Sewerage Authority, said construction of the main line has been underway since October, 2025. “This year, we plan to install six kilometers of pipeline. Currently, three teams are working on the project,” he said.

Immigration Information Now Available in All Languages www.montsame.mn

The Immigration Agency of Mongolia has introduced an AI-based chatbot for advisory and information services to deliver state services more efficiently and accessibly.

Starting this March, the chatbot will provide guidance and information in all languages. This allows foreign citizens, businesses, and organizations to quickly and conveniently obtain detailed advice and information related to immigration services in their native language, 24 hours a day, regardless of time or location.

Additionally, calling the information line at 1800-1882 will incur standard phone charges. For advice and information outside of working hours, users can contact via email at visasection@immigration.gov.mn, the website immigration.gov.mn, or the AI chatbot.

Organic, Plant Based British Vitamins Now Available in Mongolia (High-quality vitamins perfectly suited to organizational employee health and social welfare policies) www.mongolianbusinessdatabase.com

British Business Centre, the official distributor of one of the UK's leading LifePlan, is introducing the Healthilife range to Mongolia — premium, 100% bio and plant‑based supplements.

Products:

Healthilife for Beauty — supports healthy, radiant skin, nails and hair

Healthilife for Night — promotes deep, restful sleep

Healthilife for Brain — supports active cognitive function

Healthilife for Immunity — boosts immunity and restores daily vitality

Healthilife for Digestion — supports normal digestive function

Features:

TraceSupple™ standard: formulated from organic, plant‑based ingredients with full ingredient transparency

Free from artificial colours, flavours, preservatives and gluten — suitable for vegetarians and sensitive users

LifePlan: established 1983; manufactured to ISO9000, GMP, MHRA standards; exported to 40+ countries

Packaged in amber glass to protect product integrity and extend shelf life

High-quality vitamins perfectly suited to workplace employee health and social welfare policies!

Where to buy:

Available at British Business Centre (Baruun 4 Zam), Europharma, Songdo, Buman San pharmacies, and British Shop (Organic Market, River Garden).

You can review full details on our Facebook page and place your order there for delivery!

Contact:

British Business Centre (баруун 4 зам)

www.britishbusinesscentre.com

FB page: British Business Centre

management@britishbusinesscentre.com

77552002

Mongolia announces broad tax reforms, cuts corporate tax to 15% www.regfollower.com

Mongolia's government has introduced sweeping tax reforms following year-long consultations with 13,000 stakeholders, promising to cut taxes by MNT 2.7 trillion through progressive corporate rates, expanded SME support, enhanced VAT refunds for citizens, and a modernised compliance system that prioritises guidance over penalties—set to take effect in January 2027. 

Mongolia’s government submitted a comprehensive tax reform package to Parliament on 30 December 2025, following extensive nationwide consultations with over 13,000 citizens and businesses throughout the year.

The proposed amendments to corporate income tax, personal income tax, value-added tax (VAT), and the General Tax Law are scheduled for implementation on 1 January 2027.

After organising 178 meetings and collecting approximately 176,000 comments from stakeholders across the country, officials from the Ministry of Finance and General Tax Administration presented the draft legislation, which aims to reduce the overall tax burden by MNT 2.7 trillion in stages—MNT 2 trillion for citizens and MNT 700 billion for businesses.

Progressive corporate tax rates and expanded support for enterprises

The reform introduces significant changes to the corporate taxation structure. Companies earning between MNT 6 billion and MNT 10 billion will face a reduced tax rate of 15%, down from the current 25%.

Only businesses with income exceeding MNT 10 billion will pay the 25% rate, as the threshold increases from MNT 6 billion.

Small and medium-sized enterprises will benefit from expanded simplified tax regimes. The threshold for the 1% tax rate increases from MNT 1.5 billion to MNT 2.5 billion, while businesses with income up to MNT 400 million can now access the simplified 1% regime.

Additionally, enterprises qualifying for a 90% tax refund will see their eligibility threshold raised to MNT 2.5 billion.

The package addresses longstanding VAT concerns by removing restrictions on deductions for business activities and allowing manufacturers to fully utilise e-receipts for raw material purchases. Businesses can now defer VAT payments at customs for up to two months, and the reporting period extends from one year to two years.

Relief for individual taxpayers and first-time homebuyers

Citizens will receive 100% tax exemption on their monthly income up to MNT 500,000. The VAT refund system offers tiered benefits: 100% refunds on purchases up to MNT 500,000 monthly, 50% for purchases between MNT 500,000 and MNT 1 million and 20% for amounts exceeding MNT 1 million.

First-time homebuyers in regional areas and those purchasing energy-efficient housing will qualify for tax breaks of up to MNT 15 million.

Enhanced tax administration and compliance framework

The reform shifts tax administration toward a more supportive approach, emphasising advice and assistance over penalties. Rather than completely freezing accounts of debtors, the new system allows 20% of future income to remain accessible, changing the withholding rate from 100% to 80% to enable businesses to continue operations while settling tax obligations.

The compliance points system introduces flexible payment terms and grants taxpayers the right to correct reports within two years, focusing on risk warnings rather than immediate fines and allowing self-correction of mistakes before penalties apply.

Untapped Rare Earth Potential Positions Mongolia for Future Development www.resourceworld.com

Mongolia is a geostrategically significant mineral jurisdiction located between two of the world’s most resource rich countries, Russia and China. Positioned on the Central Asian plateau, Mongolia shares geological structures that extend across national borders. In the case of rare earth elements, the presence of the “Bayan Obo” deposit in northern China, widely regarded as the largest known rare earth deposit in the world, suggests that comparable geological systems may also occur within Mongolia. Yet favourable geology alone does not automatically translate into economic outcomes. Structural, technological and institutional constraints have historically limited Mongolia’s ability to convert geological potential into commercially viable development.

Much of what we understand today about rare earth element occurrences in Mongolia originates from Soviet era geological programs that focused primarily on nationwide mapping and regional geological interpretation rather than defining rare earths as a specific economic target. Within this broader scientific work, numerous rare earth related occurrences were recorded and documented across Mongolia. Against this background, the evolution of Mongolia’s rare earth sector can be broadly understood through three successive phases.

State-Funded Geological Mapping and the Recording of REE Occurrences:  Before 1990, geological work in Mongolia was centrally coordinated and state funded, focused on nationwide mapping and the study of stratigraphy, tectonics, and magmatic systems. These surveys identified a number of geologically promising occurrences, including early indications of both light and heavy rare earth elements. The occurrences were documented as part of broader geological investigations, providing an initial scientific foundation for understanding Mongolia’s rare earth potential. However, most findings remained at the occurrence level and were not advanced to economic evaluation or project development.

Democratic Transition, Licensing Reform, and the Rise of Private Exploration:  Following Mongolia’s democratic transition after 1990, market reforms introduced a licensing regime enabling private participation and clearer exploration and exploitation rights as the mining legal framework developed during the 1990s. Companies revisited earlier geological datasets and expanded fieldwork, although most projects remained at preliminary exploration stages. Nevertheless, this period marked a turning point by establishing the legal foundations for modern exploration activity.

Private Exploration Growth and the Challenge of Technological Alignment: Since around 2015, rising global demand has intensified exploration while highlighting that REE development requires alignment between geology and downstream processing, separation, and metallurgical testing. Limited domestic processing capacity makes international validation essential, and regulatory clarity from exploration to mining approval remains a key factor influencing project bankability.

International Estimates and the Real Meaning of Mongolia’s REE Potential: International policy circles and strategic research institutions have long highlighted Mongolia’s rare earth element (REE) endowment as a potentially significant strategic resource. Much of this narrative traces back to a 2009 assessment by the United States Geological Survey (USGS), later cited in UNCTAD reports, which suggested that Mongolia could host approximately 31 million tonnes of rare earth resources. At the time, this estimate represented nearly 16% of globally identified reserves, positioning Mongolia among the more notable rare earth exploration frontiers outside China.

According to Mongolian specialists, however, a consolidation of archived geological materials indicates that currently defined deposits contain approximately 3.1 million tonnes of rare earth oxides (REO). The apparent difference between these figures does not imply a reduction in Mongolia’s geological potential but rather reflects different classification frameworks and reporting methodologies. Importantly, the oxide estimate is largely based on six to seven deposits identified prior to 2015, while many prospective regions remain insufficiently explored and have yet to be evaluated under modern geological, technical, and metallurgical standards.

Strengthening Policy Clarity for Sustainable REE Development: In Mongolia’s current legal environment, the country remains open and broadly positive toward foreign investment in the mining sector. However, the issuance or transfer of new exploration and mining licences for rare earth elements (REEs) is subject to prior consideration by the National Security Council before approval. While this mechanism is intended to safeguard national interests, in practice, the interpretation and application of the process have not been uniform. Licence holders and project developers have conveyed differing explanations to investors, resulting in the absence of a consolidated market understanding

Accordingly, greater clarity regarding the review process, procedural steps, timelines, and evaluation criteria is essential. A more predictable and coherent regulatory framework would enable projects to transition to subsequent stages in a more structured and efficient manner.

Ultimately, future progress will depend not merely on the scale of geological resources but on the integration of exploration results with viable processing technologies, metallurgical validation, market strategy, and appropriately structured investment frameworks supported by experienced professional advisers. When geology, technology, and finance are aligned within a coherent strategic approach, Mongolia’s REE sector has a credible opportunity to advance to the next stage of project development without unnecessary delay.

By Bolormaa Nuurkhuu, B.Sc.